Loading...
HomeMy WebLinkAboutAPRIL 3, 2001 MINUTES' ' Ch CITY COUNCIL MAYOR MEYERA E OBERNDORE At-Large VICE MAYOR WILLIAM D SESSOMS, JR, At-Large LINWOOD 0 BRANCH, III, Beach -Dtstrtct 6 MARGARET L EURE, Centervdle -Dtstrtct 1 WILLIAM W HARRISON, JR, Lynnhaven -Dtstrtct 5 BARBARA M HENLEY, Prtncess Anne -Dtstrtct 7 LOUIS R JONES, Baystde -Dtstrtct 4 REBA S McCLANAN, Rose Hall -Dtstrtct 3 ROBERT C MANDIGO, JR, Kempsvtlle -Dtstrtct 2 NANCY K PARKER, At-Large ROSEMARY WILSON, At-Large JAMES K SPORE, Ctty Manager LESLIE L LILLEY, Ctty Attorney RUTH HODGES-SMITH, MMC, Cay Clerk "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA CITY HALL BUILDING i 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE (757) 427-4304 FAX (757) 426-5669 EMAIL Ctycncl@ctty vtrgtnta-beach va us April 3,2001 I. CITY COUNCIL WORKSHOP - Conference Room - 10:00 AM A FY 2001-2002 MANAGEMENT RESOURCE PLAN 1. ECONOMIC VITALITY 2. SAFE COMMUNITY 3 POLICY AND DECISION SUPPORT II. CITY MANAGER'S BRIEFING 12:30 PM Ao JUVENILE DETENTION CENTER E. Dean Block, Director, Department of Public Works III. REVIEW OF AGENDA ITEMS IV CITY COUNCIL COMMENTS V. INFORMAL SESSION - Conference Room- 1:30 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION Citizens may register m address City Council for a limited time on any item on the Formal Council Agenda. Speakers may register immediately prior to the meeting or, in advance, by calling the City Clerk's Office at 427-4303 VI. FORMAL SESSION - Council Chamber - 2:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf 13. INVOCATION: Reverend Dwight Christenbury, D.D. First Presbyterian Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL & FORMAL SESSIONS March 27, 2001 G. AGENDA FOR FORMAL SESSION The Consent Agenda wtll be determtned durtng the Agenda Review Session and constdered tn the or&nary course of bustness by Ctty Counctl to be enacted by one motion. H PRESENTATION/PUBLIC HEARING 1 31 st STREET DEVELOPMENT AGREEMENT - Possible Amendments I PUBLIC HEARING 1 TAX EXEMPTION Sulhvan House, Inc J. RESOLUTIONS o Resolution re legislation to designate SULLIVAN HOUSE, INC. as TAX EXEMPT re all state and local real estate and personal property. (DISTRICT 7 - PRINCESS ANNE) . Resolution to authorize the Mayor to execute the Fourth Amended Charter Agreement of the Southeastern V~rg~nla Job Training Administratxon (SVJTA) re Workforce Investment Act (WIA), lnclud~ng the execution of a Memorandum of Understanding between the chief local elected officials of the partxclpatlng jurisdictions. K. APPOINTMENTS BEACHES AND WATERWAYS COMMISSION COMMUNITY SERVICES BOARD (CSB) FRANCIS LAND HOUSE BOARD OF GOVERNORS L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT SCHEDULE: RESOURCE MANAGEMENT PROCESS --- REVISED Topic Location Date/Time Quality Education for Lifetime Learning Workshop Conference Room April l0th Proposed FY 2001-02 Resource Management Plan Public Hearing April 12th Prtncess Anne High School 6:00 PM Quality Physical Environment/Operational Support Workshop Conference Room April 17th 2:00 PM Cultural & Recreational Opportunities/Family Youth Opportunlt~es Workshop Conference Room April 24th Proposed FY 2001-02 Resource Management Plan Pubhc Heanng April 24th Counctl Chamber 6:00 PM Reconclhatlon Workshop Conference Room May 1st Resource Management Plan - Adoption Spectal Meettng May 15th Counctl Chamber 4:00 PM If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 427-4303 Hearing impaired, call: TDD only 427-4305 (TDD - Telephonic Device for the Deaf) 03/30/01BAP AGENDA\04\03\01 www.vlrglnia-beach.va.us MINUTES VIRGINIA BEACH CITY COUNCIL V~rg~n~a Beach, V~rg~nia Aprtl 3, 2001 The Ctty Manager called to order the CITY COUNCIL WORKSHOP re FY2001-2002 MANAGEMENT RESOURCE PLAN tn the Counctl Conference Room, Ctty Hall Budding, on Tuesday, Aprtl 3, 2001, at 10 10 A M Counctl Members Present Ltnwood O Branch, III, Margaret L Eure, Barbara M Henley, Reba S McClanan, Robert C Man&go, Jr, Nancy K Parker and Rosemary Wtlson Counctl Members Absent Mayor Meyera E Oberndorf Vtce Mayor Wtlham D Sessoms, Jr Wtlham W Harrtson, Jr [Mayor offictattng at the opentng of the new Commtssary at NAS Oceana Entered 10 50A M] [Bank Meettng, Entered 1 30 P M] [Entered 12 O0 NOON] Louts R Jones [Entered 10 35 A M] -2- C I T Y COUNCIL WORKSHOP FY 2001-2002 RESOURCE MANAGEMENT PLAN 10:10 A.M. ITEM # 47976 Catheryn Whttesall, Dtrector of Management Servtces, advtsed the Economic Vitality sectton of the FY 2001-2002 Resource Management Plan tncludes the departments of Agrtculture, Conventton and Vtsttor Development, Economic Development and Houstng and Netghborhood Preservatton Sports Marketing has been the htghhght of this year's Budget There are two staff postttons funded through the Tourtsm Adverttstngprogram Four naaonal champtonshtp events have generated $4 5-MILLION m &rect spen&ng The Rock and Roll ~ Marathon tn September 2001 ts expected to generate approxtmately $6-MILLION tn d~rect spendmg Other htghhghts of this year's efforts tnclude addtttonal staffing for workforce development, the Convention Center replacement, Pavilion Theater replacement, continued funding for ARP, tax increment financing of the Town Center project, the Lynnhaven Mall project, the Advanced Technology Center, and the Sandbridge Beach replenishmentprogram Thts sand replemshmentprogram ts funded through the Capttal Improvement Program (CIP) and wtll place 3 5-MILLION cubtc yards of sand and wtden the beach an average of 3OO feet for the whole length of the Resort Area The total cost of provt&ng the sand ts $1 O-MILLION, the majortty provided by the Federal government ECONOMIC VITALITY Convention & Visitor Development $15,071,991 Economic Development $ 1,643,611 Housing and Neighborhood Preservation $14, 767,849 Agriculture $ 1,089,227 Capital Projects $ 2,171,388 Reserve for Contingencies $15,3 61, 510 Debt Service $11,035,807 TOTAL $ 61,141,383 A "report card" was requested concermng the Tax Increment Financing (TIF) projects (Lynnhaven Mall, Sandbrtdge and Town Center) Catheryn advtsed a status would be provtded The amount of Reserve for Conttngenctes ts related to the reserve for future debt servtce for the Convention Center and Theater replacementprojects As the tax rate wdl be tnstttuted July 1, a reserve wall be budt to fund the debt servtce when tt begtns to "ktck tn"fully tn 2004 Thts ts a crtttcal element of the overall financtng structure of those projects as tt allows tnterest to be generated and keeps the tax rate as low as posstble Relattve the Conventton Center replacement date of 2007, there ts concern and the Ctty wall attempt to accelerate this date Relattve the hotel adjacent to the Pavtlton, C Oral Lambert, Chtef Operattng Officer, advtsed the property comprtstng 20 acres, whtch was owned by the Gtbsons was dedtcated to the Ctty to butMa conventton center In exchange for thts dedtcatton, the Ctty Manager negottated the extenston of utthty hnes The city developed the stte There were some other roadways whtch were proposed to be constructed, t e from 19th Street to Vtrgtnta Beach Boulevard However, the owner of the property never requested this road be budt and he dtd not de&cate the right-of-way There was an arrangement wtth the property owner that a hotel would be budt There was an agreement the water and sewer hne fees would be watved for thatproject The hotel was ortgtnally concetved as a 34-story hotel, however, the Navy objected The extsttng tower of the hotel was the first of two proposed towers The second was never constructed James Rtcketts, Dtrector of Conventton and Vtsttor Development, advtsed part of the ortgtnal concept was to purchase aptece of oceanfront land and utthze same as a Cabana hub for the guests of the hotels Mr Rtcketts advtsed a series of meetings wall be arranged wtth May Ftfteenth targeted for some type of agreement tn prtnctpal outhmng the partnershtp concerntng the Conventton Center Relattve Contractual Services tn the amount of $8, 931,742 on page 2-19, a hst of all the contracts and the fundtng wtll be provtded The cost of Reservations Plus wtll also be provtded Concermngparade permtts, data shall be provtded relattve the cost of dtfferent events Aprd 3, 2001 -3- C I T Y COUNCIL WORKSHOP FY2001-2002 RESOURCE MANAGEMENT PLAN ITEM # 4 79 76 (Continued) Louts Culhpher, Director of Agrtculture, advtsed last year, the cost to operate Farmers' Market was approxtmately $160,000 Prtor to the fire, the Ctty had narrowed the operattonal gap to approximately $30,000 The goal ts to have a zero defictt Mr Culhpher wtll calculate the charge per square foot to obtatn this zero defictt thru rental revenue Andy Friedman, Dtrector of Conventton and 17tsttor Development, advtsed relattve the enforcement of illegal repairs tn the neighborhoods, a meettng ts betng held April Ntnth with the Commtsstoner of the Revenue and the Zomng Admtntstrator to determine a comprehenstve method to address the sttuatton Section 8 Houstng coor&nates and facthtates the vartous Section 8 rental substdy programs, tncludtng Faintly Self-Suffictency, Portabthty, project based and spectal allocattons for the handtcapped/dtsabled and the chromcally mentally tll The admtntstrattve costs of the dtvtston are supported by federal funds earned through the admtntstratton of the vartous federal houstng programs and through General Fund contrtbuttons In FY2001-02, the department esttmates that tt wtll asstst up to 1,33 7households to matntatn thetr financtal stabthty through Section 8 rental asststance Thts ts an increase of over 400%from the FY 1999-00 level The majortty of the ctttzens on the rental substdy programs do not have a ttme hmtt However, under the new preferences, certain tndtvtduals wtll have a ttme hmtt under a new self-suffictency program These tndtvtduals are not permanently dtsabled, nor wtll they be permanently quahfied as "low tncome" The Green Lakes Apartment complex ts swttchtngfrom substdtzed to Section. 8, whtch means they are transtttomng to market rate apartments Harper's Square, comprtstng approxtmately 400, was one of the first untts whtch converted Thts was not a Section 8proJect, but was HUD substdtzed The majority of theprojects do not recetve any federal substdy Only 150 of the original 400 restdents rec. etve any substdy at all The rematnder are paytng market rate or have moved elsewhere These converstons result tn rehabthtatton and turn tnto market rate untts An annual phystcal tnspectton ts conducted A Database Administrator posttton for FY2001-02 has been added to matntatn the current data base that was related to track the phystcal and soctal condtttons Mr Frtedman advtsed two addtttonal FTE 's (Account Clerk H and Housing Specialist I) wtll be funded through the tncrease tn admtntstrattve fees to help manage the addtttonal workload Alternattvely Non-Categortcal Atd from the Commumty Development Block Grant decreased mtmmally for FY 2001-02 However, another FTE posttton (System Analyst I) wtll be funded exclusively with Federal revenue to asstst the Department wtth tts data base of netghborhood condtttons Houstng Spectahsts handle an average of 250 or more cases and are responstble for ensurmg the program parttctpants meet the requtrements of the program, recerttfy and report all tncome annually Mr Frtedman explatned the program growth of approxtmately 1,000 tn three years, (wtth the exception of approxtmately 200 tndtvtduals), has been comprtsed of residents already receiving some type of substdy The 150 to 200 tndtvtduals affected have moved to thts ctty Donald Maxwell, Dtrector of Economic Development, advtsed the Economic Development Investment Program (EDIP) funds requtre a mmtmum of $35, 000 compensatton, which relates to $28,000 base salary Mr Maxwell wtll provtde tnformatton relattve the average take home pay of ctttzens of Vtrgtnta Beach Although $35,000 compensation ts encouraged through the EDIP funds It has averaged $442,500for the last five years Catheryn advtsed the tnflattonary tndex for EDIP ts tted to the ctgarette tax and as thts fundtng rtses or falls then they recetve the benefit of thts tax Relattve endeavors concermng transplanttng businesses from the west coast to the east coast wtth rehable utthttes, Mr Maxwell advised the Ctty ts worktng through the State and the Regton to address thts tssue Mr Maxwell also advtsed ctttes, such as Long lsland, New York, have electrtcal rates four ttmes as htgh as Vtrgtnta Power Economtc Development for the ctty conttnues to be a key Ctty Counctl goal The Ctty Council has estabhshed a prtortty wtth the Department of Economtc Development to focus on tdenttfytng, recrutttng and locattng new nattonal and tnternattonal bustnesses and tndustrtes, retatntng and expandtng extsttng Vtrgtnta Beach bustnesses and asststtng them tn tdenttfytng new foretgn and domestic markets, and, coordtnattng vartous publtc/prtvate partnershtps and provtdmg proJect management for cltywlde tntttattves To asstst tn thts effort, a new Workforce Development Coordinator posttton has been funded The posttton's duttes mclude developtng workforce needed to attract and retatn targeted bustnesses, working wtth local bustnesses to help them create business tramtng alhances, worktng wtth pubhc schools, tnstttuttons of higher learntng, technical schools and other learning tnstttuttons to provtde the necessary educatton classes, coordtnattng wtth the Vtrgtnta Department of Economtc Development I/Vorkforce Servtces program to support the needs of compantes tn the targeted sectors, worktng wtth mthtary organtzattons to retatn tn the area those personnel leavtng the mthtary who have knowledge, sktlls and abthttes that support the targeted industries, coordtnattng wtth regtonal workgroups to accomphsh mutually destred outcomes for the ctty and the regton, hnktng workforce development efforts wtth welfare reform tntttattves of the Department of Soctal Servtces, managtng/scheduhng blocks of space tn the Advanced Technology Center Catheryn advtsed approxtmately $258,000, must be dertved from the TGIF to supplement the parktng garage costs Relattve Sectton 1-55, Per Capita Retail Sales, whtch deptcts Vtrgtnta Beach as betng behtnd both Chesapeake and Norfolk, tnformatton shall be provtded relattve the sales tn Lynnhaven Mall Aprtl 3, 2001 -4- C I T Y COUNCIL WORKSHOP FY 2001-2002 RESOURCE MANAGEMENT PLAN ITEM # 4 79 76 (Continued) Mr Maxwell advised the cost of membershtp tn the Hampton Roads Economic Development Alliance, ts $1.00 per capita, whtch averages approxtmately $435,000 It was requested a threshold be estabhshed A Workshop shall be scheduled wtth the Chairman of the Development Authortty and Prestdent of the Hampton Roads Economtc Development Alhance toparttctpate tn dtscusston of economtc development and the goals Catheryn advtsed on Page 9-25 (Regional and Support), the Regional Allocations are hsted tn the amount orS1,187, 634 Catheryn will provide a copy of the Hampton Roads Partnershtp financtal auchts to Ctty Councd HRT and SPSA are not tncluded on thts hst A comprehenstve hst of the Ctty's contrtbuttons to orgamzattons wtll be provtded Safe Commumty represents 11 51% of the total Resource Management Plan SAFE COMMUNITY Commonwealth's Attorney $ 4, 704,490 Community Corrections $ 516,046 Courts and Court Supplies $ 5,822,910 Emergency Medical Sevices $ 2,820,523 Fire $ 27,817,179 Police $ 62,455,346 Sheriff and Corrections $ 19,828,256 Capital Projects $ 1 O, 154,510 Reserve for Contingencies $ 2,128,840 Debt Service $ 8 78, 6 73 TOTAL $137,12~, 773 Highlights Ftre Apparatus Replacement 2 Pumpers, 1 Tanker and 1 Ladder/Tanker Ad&ttonal Ftre Ftghters EMS Quahty Control Coor&nator Pohce Support Staff Commumcattons System Upgrade Opening General Booth Fire Station Law Enforcement Trammg Academy Fire Trammg Center Renovatton Correcttons Center Addtttons The Ftre Tratmng Center ts funded predomtnately through the Ftre Programs fund There ts a $57 7- MILLION addttton to the current Correctton Center and ts funded predomtnately through a combtnatton of Charter Bonds and 599 Funds Currently the constructton ts expected to end tn 2004, will house 512 tnmates and requtre 150 to 200 addtttonal staff Relattve fundtngfrom the State, Catheryn advtsed there ts $7-MILLION tn 599funds currently tn the Operattng Budget The Pohce Department's budget ts $62- MILLION Only tn the Capttal Improvement Program (CIP) can these funds be spectfied as to utthzatton 599 funds are not required to be used for any parttcular purpose Chtef A M Jacocks, Pohce, advtsed resources are allocated based upon the call for servtce tn the dtfferent secttons of the Cay There are officers wtthtn all the pubhc htgh schools and middle schools Those postttons were funded ortgtnally by Federal Grants There are 1 8pohce officers avadableper 1,000 residents The typtcal department tn a Ctty our size ts 2 4 or 2 5 officers per 1,000 Norfolk ts currently at 3 3 officers per 1,000 Currently the Ctty ts 4 7 officers under strength which, due to resignations, will be 49 by the end of the month Twenty-five (25) officers are currently tn the Academy Obvtously, they are not on the street respondtng to calls Even wtth these factors, the response ttme has only increased less than a mtnute over the years Aprtl 3, 2001 -5- C I T Y COUNCIL WORKSHOP FY 2001-2002 RESOURCE M/INA GEMENT PLAN ITEM # 4 79 76 (Continued) Stattsttcs shall beprovtded for the last ten years, relattve the number and ttme of pohce officers tn complytng wtth responses Durtng the Summer months, five (5) officers from each of the other Prectncts are moved to the Second Prectnct for Summer operattons When school ts &smtssed, the School Resource Officers wtll etther go to their own Prectnct or the Second Prectnct to replace an officer currently there Therefore, there ts a net loss of 5 to 6 officers from the other threeprectncts Officers are also taken from Spectal Operattons, whtch tmpacts some of the abthty to handle traffic enforcement cttywtde at the same level during the rest of the year Chtef Jacocks advtsed there has been dtfficulty tn recrutttng quahfied apphcants whtch ts not untque to Vtrgtnta Beach, but ts an tssue common to Pohce Chiefs around the natron In prevtous years, the Ctty would review approximately 1200 apphcants, however, now the pool encompasses' 500 There ts also an tssue of retention of pohce officers Smce FY 1991-1992, the City has lost 37 officers who have restgned to go to other crtmtnaljusttce employment outstde of Vtrgtnta Beach 80 officers also restgned, who dtd not provtde thetr new employment These officers averaged approxtmately 4 to 4 ~ ),ears of servtce There ts a 22-week Academy and then a 13-week field tratntng sesston before the officer ts actually performmg the job Sixteen (16)police officers have resigned since May 2000, four of whom went to Federal Law Enforcement Agenctes, two went to State Agencies outstde of Vtrgtnta, three lefi for Pohce Departments outstde of Hampton Roads, five lefi to pursue tnterest other than law enforcement and two dtd not advise a reason These are all voluntary restgnattons The Ctty Manager, Human Resources and the Pohce Department are worktng on tssues to retain personnel Relattve the Mounted Patrol facthty site, Chtef Jacocks advtsed several sttes are betng constdered and a pohcy report wtll be presented to City Counctl The Mounted Patrol facthty moved from Pleasant Ridge the end of March and they are on a month-to-month lease at the new facthty $570,000 ts contatned wtthtn the CIP for the Mounted Patrol facthty, which encompasses a substanttal portton of the cost Community Pohctng locattons haveproven advantageous These are located at Level Green, Baker Road, 24tn Street and Pactfic, Independence, Lynnhaven and Hilltop tn the Regency Shopptng Center Other posstble sttes are bemg tnvesttgated tn the Shore Drtve-Great Neck area Those spaces have been donated by the parttcular bustnesses The Budget was comptled prtor to the 599 reductton of funds, two CIP projects, the Law Enforcement Training Center ($200,000 in 599funds) and the Correction Center addttton (contains majority of 599 funds), may be affected The current maxtmum strength offorce ts 777 sworn members wtth additional ctvthan members The next Academy will commence tn August Susan B Walston, Chtef of Staff, advtsed compression ts a personnel issue This was last addressed tn 1997 Data checks were run on the salary ranges Ftscal Year 1994 was the start of the Market Salary Survey and the ctted increases tn the followtng exemphfied postttons Police Officer Recruit Police Officer Master Police Officer 45% 42% 52% At the same ttme, the Consumer Prtce Index tncreased 22% whtle the employment cost tndex shows tn the government category, whtch tncludes pubhc safety, has tncreased 30% and tn the prtvate tndustry 32°.4 To find a solutton to compresston, the Ctty ts mvesttgatmg theproposal of Chesapeake, whtch tndtcated a figure of $2 9-MILLION to address the dtfferenttal that occurs wtth longer term employees and newer recrutts (compresston) Across the Ctty organtzatton the turnover rate averages 5% to 8% The Pohce Department falls wtthtn thts Emergency Communtcattons has htstortcally expertenced a htgh turnover rate There are overlaps tn the salary ranges There ts the potenttal for someone new to catch up wtth the longer term employees tn salary Chtef Gregory Cade, Ftre Department, advtsed the addtttonal thtrty (30)fire positrons would not be avatlable until June 2002 Twenty-five (25) addtttonal fire fighters would be for the General Booth Ftre Statton as the facthty would not be completed unttl June 42% of the fire fighters are 40 years of age wtth 20 or more years of servtce The crtterta for rettrement ts at least age 50 wtth a mtntmum of 25 years of servtce tn the State system The top end of the rettrement system ts 35 years Over the next five years, the Ftre Department stands to lose approxtmately 110 tndtvtduals, tf all opt to rettre The majority of these are senior officers This would encompass all five (5) of the Dtstrtct Chtefs, all but three (3) of the seventeen (17) Battahon Chtefs, and twenty-etght (28) of the stxty-seven (67) Captams The turnover rate has averaged approxtmately 1% The fire fighters very rarely leave There are only fifty (50) pard Ftre Departments tn the Commonwealth of l"trgtnta Therefore, there ts not as much competttton as wtth the Pohce Department Relattve the Sandbridge Fire Station, a shght contractual tssue has artsen Informatton shall be provtded Chtef Cade wtll be tn touch wtth the communtty relattve the destgn Space shall be provtded for the Summerttme use of the pohce officers (approxtmately 150 square feeO Aprtl 3, 2001 I -6- C I T Y COUNCIL WORKSHOP FY 2001-2002 RESOURCE MANAGEMENT PLAN ITEM # 4 79 76 (Continued) Shertff Paul Lantetgne advtsed the State Compensation Board provtdes the Department wtth a number of Bailiffs based on the number of Judges (does not tnclude Ctvtl CourO Thts ts a 1 to 1 ratio The problem extsts that tf addtttonal Bailiffs are not provtded problems occur when these take qualtfied leave, are stck or tratntng occurs Another problem occurs when the Judge tncarcerates an tndtvtdual and the batltff must come out of the courtroom and escort them to jarl An addtttonal fifieen (15) Bailiffs are requested as Ctty postttons Many of the other localtttes do fund Ctty postttons tn the Court Commonwealth's Attorney Harvey Bryant advtsed the Consumer Affairs Office, conststtng ora Dtrector and three tnvesttgators, ts 100% Ctty funded Thts ts a very busy untt However, a clerk and tnvesttgator were added thts last year Consumer Affairs ts currently able to handle 75% of the tnqutrtes Approximately 2, 000 tnqutrtes per year are recetved from the ctttzens as well as tnchvtduals from outstde Vtrgtnta Beach Aprtl 3, 2001 _ CITY M/INA GER 'S BRIEFING JUVENILE DETENTION CENTER 1:05 P.M. ITEM # 47977 E Dean Block Director - Department of Pubhc Works, presented tnformatton relattve the current status of the Virginia Beach Juvenile Detention Center (CPI 3-024) As recently as 45 mtnutes ago, the City Manager and he were on the telephone wtth Delegate McDonnell and the Deputy Chtef of the Department of Pubhc Safety recetvtng addtttonal assurances on this matter On July 6, 1999, Ctty Counctl authortzed the Planmng Study for the expanded 90-bed facility to be submttted for approval to the Department of Juvenile Justice (D J J) wtth the sttpulatton that the state retmburse at least 50% of the cost as a conchtton for the project to proceed The Plannmg Study was approved January 21, 2000, by the Department of Juventle Justtce and the Ctty was authortzed to move ahead to the 35% constructton documents submittal Between August and January 2001, DJJ underwent a reorgantzatton process and the process for "approval by the Governor" requtred tn the revised state code was developed Also durtng thts time, Ddd went through an updattng of tts "Gutdehnes for Mtntmum Standards tn Destgn and Constructton of duventle Facthttes" These acttons by the State delayed review of the 35%plans the Ctty had submttted On January 10, 2001, the State Board met and approprtattons were approved for Vtrgtnta Beach Thts tncreased to $6,034,514. O0 finclu&ngfurntshtngs and equtpmen0 whtch ts $486,970.50 less than 50% of the cost shown in the 35 % plans. Because of this, theproject has been placed on "hold", penchng revtew of the Ctty Counctlfor gmdance Delegate Robert "Bob " McDonnell has been advtsed of the sttuatton There has been follow up wtth DdJ and the Secretary of Pubhc Safety Coptes of related correspondence ts hereby made a part of the record The Ctty Manager and staff beheve they can proceed wtth Optton 2 of the current status report The project to proceed to the 100% constructton documents approval from Department of duventle Justice and then stop unttl fundtng tssues are resolved The constructton drawtngs should entatl approxtmately 3 to 3 ~ months and then be submttted to the State for final approval Once approved by the State, the Ctty would then go to btd, whtch could be as early as August or September of thts year The staffbeheves the Capttal Improvement Program figures are accurate BY CONSENSUS, the staff shall proceed wtth the second optton Aprtl 3, 2001 -8- ITEM # 47978 Mayor Meyera E Oberndorf called to order the INFORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL tn the Ctty Councd Conference Room, Ctty Hall Buddmg, on Tuesday, Aprd 3, 2001, at ] 19 PM Councd Members Present Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, dr, Mayor Meyera E Oberndorf, Nancy K Parker and Rosemary Wtlson Councd Members Absent Vtce Mayor Wdham D Sessoms, Jr Aprd 3, 2001 -9- ITEM # 47979 Mayor Oberndorf entertatned a motton to permtt Ctty Counctl to conduct tts CLOSED SESSION, pursuant to Sectton 2 1-344(A), Code of Vtrgmta, as amended, for the followtng purpose PERSONNEL MAI7'ERS Dtscusston, constderatton or tntervtews of prospecttve can&dates for employment, asstgnment, appotntment, promotton, performance, demotion, salartes, &sctphntng, or restgnatton of spectfic pubhc officers, appotntees, or employees pursuant to Section 2 1-344 (A) (1) To Wtt Boards and Commtsstons Beaches and Waterways Commtsston Communtty Services Board Francis Land House Board of Governors PUBLICLY-HELD PROPERTY Dtscusston or constderatton of the' acqutsttton of real property for a pubhc purpose, or of the &sposttton of pubhcly-held real property, where &scusston tn an open meettng would adversely affect the bargatntng posttton or negottattng strategy of the' pubhc body pursuant to Sectton 2 1-344(A)(3) To- Wtt Agrtculture Reserve Program - two parcels -Prtncess Anne Dtstrtct LEGAL MA TTERS Consultatton wtth legal counsel or brtefings by staff members, consultants, or attorneys pertatntng to actual or probable httgatton, or other spectfic legal matters requtrtng the provtston of legal advtce by counsel pursuant to Sectton 2 1-344(A)(7) Upon motton by Counctlman Branch, seconded by Counctl Lady Parker, Ctty Council voted to proceed tnto CLOSED SESSION. Vottng 10-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Vtce Mayor Wtlham D Sessoms, Jr (Time of Closed Session: 1:19 P.M. to 1:45 P.M.) Aprtl 3, 2001 - lO- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL April 3, 2001 2:00 P.M. Mayor Meyera E Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL tn the Counctl Chamber, Ctty Hall Budding, on Tuesday, Aprd 3, 2001, at 2 O0 P M Councd Members Present Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Rosemary Wdson and Vice Mayor Wdham D Sessoms, Jr Councd Members Absent None INVOCATION Reverend Dwtght Chrtstenbury, D D Ftrst Presbyterian Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vtce Mayor Sessoms, betng a Corporate Officer of Wachovta Bank, DISCLOSED there were no matters on the agenda tn whtch he has a "personal tnterest", as defined tn the Act, etther tndtvtdually or tn hts capactty as an officer of Wachovta Bank The Vtce Mayor regularly makes thts Dtsclosure as he may not know of the Bank's tnterest tn any apphcatton that may come before Ctty Councd Vtce Mayor Sessoms' letter of January 2, 2001, ts hereby made a part of the record Aprd 3, 2001 Item VI-E -11- CER TIFICA TION OF CLOSED SESSION ITEM # 4 7980 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only pubhc bustness matters lawfully exempted from Open Meettng requirements by Vtrgtnta law were discussed tn Closed Session to which thts certtficatton resolutton apphes, AND, Only such pubhc bustness matters as were tdenttfied tn the motton convemng the Closed Sesston were heard, dtscussed or constdered by Vtrgtnta Beach Ctty Counctl Vottng 11-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrison, Jr. Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Rosemary Wtlson and Vtce Mayor Wtlham D Sessoms, Jr Council Members Vottng Nay None Counctl Members Absent None Aprtl 3, 2001 CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM # 47979, page 9, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.1-344. of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. R~h Hodges Smith, MMC City Clerk April 3, 2001 - 12- Item V-F. 1. MINUTES ITEM it 4 7981 Upon motion by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl APPROVED the Mtnutes of the INFORMAL AND FORMAL SESSIONS of March 27, 2001. Vottng 11-0 Counctl Members l/'ottng Aye Ltnwood 0 Branch, IIL Margaret L Eure, Wtlham }Y Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker and Rosemary Wtlson and Vice Mayor Wtlham D Sessoms, Jr Counctl Members Voting Nay None Counctl Members Absent None Aprtl 3, 2001 - 13- Item VI-G ADOPT AGENDA FOR FORMAL SESSION ITEM # 4 7~82 B Y CONSENSUS, Ctty Counctl ADOPTED: AGENDA FOR THE FORMAL SESSION Aprd 3, 2001 - 14- Item V-G. 2. PROCLAMATION ITEM # 4 7983 Mayor Oberndorf PROCLAIMED: April 3, ~00~ A Day of Celebration of the Life of Congressman Norman A. Sisisky Congressman &stsky passed away on March 29, 2001, at the age of 73 Congressman &stsky served ten years as a Delegate tn the Vtrgtnta General Assembly and ntneteen years tn the Untted States Congress He also served hts country through the Navy tn World War II Congressman Ststsky took greatprtde tn hts work to keep the natron's defense strong, and parttcularly tn hts concern for the condtttons factng young enhsted personnel and thetr famthes tn terms of houstng, medtcal care and the myrtad of other tssues factng enhsted personnel Aprtl 3, 2001 roc(amatz'on Whereas: Whereas: Horman Sisis~ was a proud citizen of Virginia and the ~)mtedStates; and In sem,4ce to his state andcountry, Congressman Sis~ served ten years in the Vzrgima 9-louse of Delegates and nineteen years in the ~)mtedStates Congress; and Congressman Sisis~ also servedhis country through service in the ~I'a~j in WorldWar II; and Congressman S~s~sl~ tookgreat pride in h~s work to keep the nation's defense strong, andparticulady in his regard for the conditions facing young enl~stedpersonnelandthetrfamd~es in terms of housmg, medical care, and the myriad of other issues faczng enl~stedpersonne6 and Congressman Sisisl~ u, as also a firm defender of the military presence in 21ampton Bgads, as demonstrated by his work to secure appropriatwns to build the new Portsmouth Haval MedwalCenter, anddefend~ng Army tnstallatwns at q~t. Lee, qt. P~ckett, and the other md~tary installations ~n Hampton Pxgads; and Whereas: Congressman Sisisl~y was also a successful bu, nnessman from a wor~ng class famdy, who never forgot h~s roots tn the wor~ng class; and Whereas: Norman Stsis~ passedaway on March 29, 2001, at the age of 73: How, Therefore, I, Meyera B. Obemdo~, Mayor of the Oty of V, rgmta Beach, V~rgmm, do hereby Proclaim: April3, 2001 A ®ay of Celebration of the Life of Congressman Horman A. Sisis In Vtrgmm Beach, and of everything he did tn semnce to the Ot~zens of th~s country. In Witness Whereof, I have hereunto set my handandcaused the OfficmlSeal of the City of V, rg,nm Beach, V, rgmm, to be aff~ed thu Th,rd day of Apn6 Two Thousand One. Meyera B. Obemdorf Mayor Item V-H. 1. - 15- PRESENTATION ITEM # 4 7984 31st STREET DEVELOPMENT AGREEMENT- Possible Amendments The Ctty Manager advtsed the 31~' Street ProJect ts trulypart ora larger vtston for the oceanfront There are eight (8) spectfic objecttves whtch are hsted tn the Resort Area Advtsory Plan, the Resort Area Concept Plan and the Comprehenstve Plan Increase the quality of the aesthetics at the Oceanfront Need for convention center quality hotel rooms (4 star) Need for higher quality retail Sense of identity with open spaces Emphasis on quality of spaces Redevelopment of existing retail areas Convenient alternative transportation modes Increasing private investment, tax base generating revenue to help support other city services The ortgtnal project was approved tn 1997 and reaffirmed several ttmes The Ctty Manager advtsed the project would provtde the largest park on the Oceanfront In addttton, there are the extstmg parks at 17th and 24tn Streets, wtth an opportuntty at Rudee Loop to tncrease and construct a fourth major pubhc park on the Oceanfront Over 800 parking spaces would be reahzed wtth the 31st Street project These would be conventently located on the west stde of Atlanttc, not on the east side, tn an attracttve parktng structure The project would pay for the pubhc parkmg spaces Three hundred (300)four-star quahty hotel rooms would be provtded. The project would provide expanded and tmproved pubhc restrooms as well as addtttonal excepttonal entertatnment Quahty retatl and restaurant spaces would be provtded both tn the hotel and across the street as an tntegral part of the parktng structure ttself The project would sttmulate the upgrachng of the 30th and 31st Street Corrtdors and greatly comphment the Ctty's abthty to successfully redevelop the Rudee Loop area by allowmg the acqmrmg ora key ptece of property Property would be returned to the tax rolls The property would be sold to the developer wtth an easement retatned for the park Surplus revenues would be generated for other servtces E Dean Block, Dtrector of Pubhc Works and ProJect Manager - 31s' Street, ctted the Review of Public Purpose Goals: Return Authority Property to Tax Rolls Improve Public Parking Comprehensive Plan Implementation Upscale Anchor/1-Iigh Quality Hotel Oceanfront Park/Ocean Vista Catalyst for Corridor Neighborhood Protection Investment Return Aprtl 3, 2001 Item V-H. 1. -16- PRESENTATION ITEM # 4 7984 (Continued) 31s' STREET DEVELOPMENT AGREEMENT- Possible Amendments 31sr STREET PROJECT ProJect Element Oceanfront Land- Financial Parking Deck- Financial Park-Area Not Inclu&ng Greenbelt Parking Deck Restaurant Site & Restrooms Park Maintenance Retail Right of Developer to Extend Time Table Entertainment Purchase of Beach Quarters Inn Contribution to A & E for Coordination Water/Sewer Taps by City ProJect Promotion On- Site Developer Pays Share of N Block Current Agreement Lease - 65 years Unsubor&nated Lease 65 years 26 000 sq fi Developer provides $1 O- MILLION to improve Approx 850 spaces, 380 leased, 26,000 sq fi of retad Dairy Queen, pubhc restrooms, 17parking spaces, E Atlantic developer maintains restrooms Developer responstbdtty City receives $130, O00/year If Developer not selected, he gets $260,000 credit Yes Planmng year, construction completion unknown Developer provides, Developer pays No No No No Yes Enlarged Park~Incentives Purchase @ Fair Market Value Lease - 65 years 36000 sqfi City provides $1 O- MILLION to improve Same Deleted - Added to Park, restrooms built & maintained by the City City & Developer share Same If Developer ts selected If not, Developer can withdraw or return to original agreement No, unless Developer does not get retail bid Constructions start 4/2002 Developer provides, City reimburses first $100, O00/year Yes @ Fair Market Value $300,000 Yes, NTE $300,000 Yes Partial ($200, 000) Park Only City Retains No Lease 77, 000 sq fi Cay to provide $2 O-MILLION to improve Approx 470spaces, 26,000 sq fi of retad Deleted - City builds and maintains restrooms City responstbthty All revenue to City (Est $250, O00/Year) N/A Unknown City Responstbdtty No N/A City Cost N/A No April 3, 2001 Item V-H. 1. -17- PRESENTATION ITEM # 4 7984 (Continued) 31~ STREET DEVELOPMENT AGREEMENT- Possible Amendments FINANCIAL FACTS Factor Ctty Investment Private Investment Means of Ctty Ftnanctng Parktng Deck Park Restrooms Net Tax Revenue New Impact to General Fund Ortgtnal Agreement $17- $18-MILLION $ 3 8- $40-MILLION Revenue Bonds Pard for by ProJect Pard for by ProJect $17 2-MILLION first l O years +$1 O-MILLION tn 10 years Enlarged Park $19-20-MILLION $35-3 7-MILLION Revenue Bonds & Cash Pard for by ProJect Pard for by ProJect $16 5-MILLION first l O years + $6-MILLION tn 10 years Park Only $14-$1 S-MILLION $ 6-$ 9-MILLION Charter Bonds Pard for by General Fund Pard for by General Fund 4-MILLION first 10 years -$9-MILLION IN 10 YEARS Correspondence dated March 29, 2001, from the Ctty Manager to Thtrty-Ftrst Street L C c/o Bruce L Thompson relattve posstble amendment of Development Agreement among Thirty-First Street, L.C.; the City of Virginia Beach Development Authority; and, the City of Virginia Beach was dtstrtbuted and ts hereby made a part of the record This Briefing shall be REBROADCAST three additional times and a fact sheet shall be assimilated for public knowledge. Aprtl 3, 2001 Item VI-H. 1. -18- PUBLIC HEARING ITEM # 4 7985 Mayor Oberndorf DECLARED A PUBLIC HEARING: 31~ STREET DEVELOPMENT AGREEMENT - Possible Amendments The followtng regtstered tn SUPPORT: Alan W Fulmer, 1041 Prtncess Anne Road 23457, Phone 426-6977 Attorney Tom Frantz, 1016 Curlew Drtve 23451, Phone 473-5311, represented the developer The followtng regtstered tn OPPOSITION Charhe Jeckell, 5244 Rolleston Drive 23464, Phone 490-1968 Sandy Ltnkous, Ctttzens Actton Coahtton, Inc, 5225 South Lake Road 23455, Phone 464-1947 Dr Norman Kahn, 1537 Lasktn Road 23451, Phone 428-3091 Barbara Messner, Frtends 0f 31st Street Park, Post Office Box 514 23451 Carohna Ltncoln, Prestdent- Ctttzens Actton Coahtton, 2696 Rehance Drtve, Sutte 180, Phone 321-9971, extended apprectatton to the Ctty Manager for hts contacting the CCO to advtse of the Pubhc Heartng and agreeing to speak at their meeting on Aprd 4, 2001 There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING Relative 31st STREET DEVELOPMENT A GREEMENT- Possible Amendments, a PUBLIC HEARING will again be SCHEDULED for the City Council Session of April 10, 2001. City Council will deliberate and vote on this project, without public comment, at their Special Formal Session on April 17, 2001. Aprtl 3, 2001 - 19- Item VI-I. 1. PUBLIC HEARING ITEM ii 4 7986 Mayor Oberndorf DECLARED A PUBLIC HEARING TAX EXEMPTION Sulhvan House, Inc There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING Thts ttem was MO VED FOR WARD prtor to the 31s' Street Development Agreement Presentatton and Pubhc Heartng Aprtl 3, 2001 - 20- Item VI-J. RESOLUTIONS ITEM # 4 798 7 Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Councd APPROVED IN ONE MOTION, Resoluttons 1 and 2 of the CONSENT AGENDA. Vottng 11-0 Councd Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Rosemary Wdson and Vtce Mayor Wdham D Sessoms, Jr Councd Members Vottng Nay None Councd Members Absent None Aprtl 3, 2001 Item VI-J.I. - 21 - RESOLUTIONS ITEM # 4 7988 Upon motton by Counctl Lady Henley, seconded by Counctlman Harrtson, Ctty Counctl ADOPTED: Resolutton re legtslatton to destgnate SULLIVAN HOUSE, INC. as TAX EXEMPT re all state and local real estate and personal property (DISTRICT 7 - PRINCESS ANNE) Votmg 11-0 (By Consent) Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Rosemary' Wtlson and Vtce Mayor Wtlham D Sessoms, Jr Counctl Members Vottng Nay None Counctl Members Absent None Aprtl 3, 2001 A RESOLUTION SUPPORTING LEGISLATION WHICH WILL DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY SULLIVAN HOUSE, INC., AS BEING EXEMPT FROM LOCAL REAL AND PERSONAL PROPERTY TAXATION WHEREAS, Sullivan House, Inc., has requested the Council of the City of Virginia 7 Beach (the "Council") to adopt a resolution in support of its request that the General Assembly act 8 ~n accordance with Article X, § 6(a)(6) of the Constitution of Virginia to designate the real and 9 personal property of the Sullivan House, Inc., as being exempt from local real and personal property q 0 taxation; 11 WHEREAS, Sullivan House, Inc., currently owns no real property located in the City 12 of Virginia Beach (the "City"), but anticipates receiving real property with an assessed value of $220,150 in tax year 2000-01; if taxable, the taxes on this property in tax year 2000-2001 would be 14 $2685.83; 15 WHEREAS, Sulhvan House, Inc, currently owns no personal property in the City, and thus no personal property taxes have been assessed against or paid by this organization; 17 WHEREAS, pursuant to § 30-19 04(B) of the Code of Vlrglma, the Council has properly advertised and conducted a public hearing prior to the adoption of this resolution, giwng all citizens an opportunity to be heard; 20 WHEREAS, the prowsions of § 30-19.04(B) of the Code of Virginia have been 2 q examined and considered by the Council; and 22 WHEREAS, the Council is of the opinion that Sullivan House, Inc., should be 23 designated as a benevolent orgamzatlon w~thln the context of § 6(a)(6) of Article X of the 2 4 Const~tutlon of Virglma and that real and personal property located in the City owned by Sulhvan 2 5 House, Inc., and used by ~t exclusively for benevolent purposes on a nonprofit basis should be 2 6 exempt from local real and personal property taxation. 27 28 NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 29 That the Council of the City of Virginia Beach, Virginia hereby supports the 30 enactment of legislation designating Sullivan House, Inc, as a benevolent orgamzat~on within the 31 context of § 6(a)(6) of Arhcle X of the Constitution of V~rglma and exempting from local property 32 taxation all real and personal property owned by Sullivan House, Inc., that is located w~th~n the City 33 34 35 and used exclusively for benevolent purposes on a nonprofit bas~s. April Adopted by the Council of the City of Virginia Beach, Virg~ma, on the 3rd day of ,2001. CA7999 F:kDatakATY~Ordin2qONCODE\Sulhvan House taxexem res.wpd February 13, 2001 R-2 APPROVED AS TO LEGAL SUFFICIENCY: C~ty Atto~ey's office McNichols Inc. Development Of Rehrement Commumhes 3333 Peters Creek Road Roanoke, V~rgmta 24019 540/366-0622 540/563-9182 Fax TRANSMITTAL LETTER - via FedEx DATE March 6, 2001 TO: Lawrence S Spencer, Jr, Asmstant City Attoney City of Virgin~a Beach Municipal Center, Building 1 2401 Courthouse Dnve V~rg~n~a Beach, VA 23456-9004 FROM Don Jakob, McN~chols & Associates, Inc. SUBJECT Sulhvan House, Inc. Apphcation for Real Estate Tax Exempbon W~th th~s letter I am forwarding an original and one copy of the Owner Corporabon's Appl~cabon to the C~ty of V~rg~n~a Beach for Exempbon from Real and Personal Property Taxabon The real property for which this exempbon ~s sought ~s presently owned by The Most Reverend Walter F Sulhvan, B~shop of the Catholic D~ocese of Richmond. The current 6.290 acre parcel w~ll be subdivided ~nto two roughly equal parcels for the phased development of Sulhvan House, an ~ndependent I~ving facility for very-low-income semors under the HUD Section 202 Capital Advance program The prehm~nary subd~vimon plat ~s being filed today by the LandMark Demgn Group Secbon 202 funding for Phase I, comprising 67 one-bedroom umts, has already been reserved. A firm commitment applicabon for Phase I ~11 be filed shortly, and an ~n~tial closing on the Capital Advance for Phase I ~s expected to occur ~n June 2001. Title for the Phase I port~on of the parcel w~ll transfer to Sullivan House, Inc, the Owner Corporabon, at ~n~bal closing. The Secbon 202 funding apphcabon for Phase II will be submitted in May 2001, and transfer of the title for that port,on would I~kely occur ~n spnng or summer of 2002 Even though we will have to wa~t for the next General Assembly session for legislative action, we do need to get th~s applicabon on the C~ty Councd Agenda for a public heanng and action prior to submitting the F~rm Commitment application for Phase I to HUD You may reach me at 540-563-4565, extenmon 427, ~f you have any quesbons Thank you for your adwce and asmstance w~th th~s appl~cabon Enclosures Copies John Barrett, Catholic D~ocese of Richmond MaryEIlen Cox, Sulhvan House, Inc. Mat-'-~'O-O1 0~:39P JJ _ . J 24~J 19 FAX MEMORANDUM DATE. March 20, 2001 TO. Lawrence S. Spencer, Jr., Assistant City Attorney C~ty of Virginia Beach; Fax: 757-426-5687 FROM: Don Jakob, McNichols & Associates, Inc. 540-563-4565, ext. 427, Fax 540-563-9182 SUBJECT: Sullivan House, Inc. Application for Real Estate Tax Exemption Estimated Value of Personal Property to be Acquired Thank you for calling to report on your review of the application for Sulhvan House, Inc. that was submitted on March 6, 2001 I understand that this application m~ght be presented for C~ty Council action at its Tuesday, Apnl 3, 2001, meeting You have asked for an estimate of the value of personal property that might be acquired by Sullwan House, Inc. in connection with the operation of Sullivan House at or before initial occupancy ~n the Spring or Summer of 2002 Because Sullivan House has been designed to operate as independent living for seniors, there is no food service or health care component It ~s my understanding that k~tchen appliances for the apartments and furniture in common areas for the exclusive use of residents and their guests would be classified as realty. Office furniture and equipment and maintenance tools and equipment- which are necessary for the operation of the properly and might therefore be considered as business tangible personal property- can be expected to total $10,000 or less in value Under the terms of the Conditional Use Permit, the property ~s required to offer van service, and would likely acquire a used van in the range of $10,000 in value. You may reach me at 540-563-4565, extension 427, if you have any questions. Thank you for your advice and assistance w~th th~s application Copies. John Barrett, Catholic Diocese of R~chmond MaryEIlen Cox, Sullivan House, Inc. P.O1 APPLICATION TO THE CITY OF VIRGINIA BEACH FOR EXEMPTION FROM REAL AND PERSONAL PROPERTY TAXATION Apphcants Please complete th~s form and submit ~t to the C~ty Attorney's Office, AL Section, Mumclpal Center, Virginia Beach, V~rgm~a 23456 In any ~nstance where add~bonal space ~s needed to complete your answer to a particular question, please ubhze a separate sheet of paper and attach ~t to th~s apphcatlon In filhng out th~s form, be sure to describe your orgamzabon and ~ts m~ss~on as completely as possible Formal Name of Corporabon/Organ~zabon Sullivan House, Inc Address cio McN~chols & Associates, Inc 3333 Peters Creek Road, Roanoke, VA 24019 Telephone Number 540-563-4565 Is the Organization chartered or incorporated under the laws of the Commonwealth of V~rgmla? Yes, incorporated, August 2, 2000 For What purpose ~s the group chartered'~ [From Articles of Incorporabonl "The corporation ~s or,qan~zed to operate exclusively for chantable, educabonal, scientific, or literary purposes, w~th~n the meaning of Secbon 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding prows~on of any future Un~ted States Internal Revenue Law), and, consistent therewith, to prowde oblecbve and ~ndependent leadership ~n helping to meet the physical, social and emotional needs of the eldedy and hand~capped persons through the development of servme facdit~es and programs appropnate to their usage, to work w~th pubhc and pnvate nabonal, state, and local aqenc~es, organ~zabons and ~nsbtut~ons ,n extending such services to elderly and hand~capped persons, and to prowde housing facd~bes and services to the elderly and hand~capped elderly specially designed to meet their physical, social and psychological needs, and to promote their health, secunty, happiness and usefulness ~n Ion.qer hymn.q, the charges for such facd~bes and services to be predmated upon the prows~on, maintenance and operabon thereof on a non-profit bas~s" Summanze the organ~zabon's activities and accomphshments dunng the past year Sulhvan House, Inc was formed to serve as the Owner Corporabon for Sulhvan House, an ~ndependent hwng facd~ty for very-low-m ,c,0, me sen~ors and d~sabled sen~ors sponsored by the Cathohc D~ocese of R~chmond under the HUD Section 202 Supportive Hous~nq for the Elderly Program HUD reRulabons require the estabhshment of a separate, non-profit, ta,x-exempt enbty to own and operate each facd~ty financed under the Section 202 Program The Most Reverend Walter F Sulhvan, B~shop of R~chmond, ~s prov~din(~ the s~te for the development, a parcel on General Booth Boulevard that he has owned s~nce 1986 The orgamzabon held its m~t~al meeting ~n Apnl 2000 to support the apphcatlon for rezonmg of the General Booth Boulevard Property, which was filed on Apnl 17"~, and the apphcabon for section 202 fundmq, which was filed on May 18th Sullivan House, Inc held its formal or.qamzabonal meetm.q on June 26th, and was ~ssued ~ts Certificate of Incorporation on August 2"d Board Members, who are local residents, have met w~th c~v~c .qroups, secured letters and commitments of support from local or,qamzations and a.qenc~es, and supported the efforts of the D~ocese at public heann.qs. The D~ocese and Sullivan House, Inc secured approval of the rezomnc~ and cond~bonal use permit on September 12th and received not~flcabon of the HUD Secbon 202 award on September 29th The Section 202 Capital Advance of $4,241,300 for Sulhvan House, which ,~s the first such award for V~r.q~nla Beach s~nce the eady 1980's, will prowde 67 one-bedroom apartments for very-low- ~ncome seniors ~n a safe, supportive and attractive environment Sullivan House, Inc ~s presently working on the Secbon 202 Firm Commitment Apphcabon, which will be submitted to HUD in March 2000. The City Council's approval of this Apphcabon for Exemption from Personal and Real Property Taxation ~s a prerequisite for the F~rm Commitment Apphcabon Describe ~n detad and specify the Iocabon of all real and personal property for which exempbon ~s sought [From Zomng Letters] "Property located on the west side of General Booth Boulevard beginning at a point 470 feet more or less north of London Bndqe Road (GPIN #2414-19-3648)" [From Cerbflcate of T~tle] "All that certain lot, p~ece, or parcel of land lyin.q s~tuate and be~n.q ~n the C~ty of Vir.qima Beach, V~r.qmia, containing 6 290 acres and known, numbered, and desi.qnated as PARCEL A 6.290 Ac as shown on the plat enbtled 'SUBDIVISION OF STRAWBRIDGE, SECTION THREE,' which said plat is duly recorded in the Clerk's Office of the C~rcuit Court of the C~ty of V~r.q~ma Beach, ~n Deed Book 2542, at pa.qe 69" L~st the present tax assessment and taxes due for each parcel of real property for which th~s exemption is sought Parcel Descnpbon GPIN # 2414-19-3648 Assessed Value $ 220,150 00 Improvements $ 0 Total Assessed Value $ 220,150 O0 Taxes $ 2,685 83 For what purpose ~s the real property currently being used? If there are several types of use for a single parcel, ~ndicate such usage by areas of the buddings and floor locations The real property, which ~s presently vacant and undeveloped, is currently owned by Walter F Sullivan, Bishop of the Catholic Diocese of R~chmond A subdivision plat is currently beln.q prepared to dw~de the property into two parcels to facilitate development of Sulhvan House in two phases under the HUD Section 202 Proqram T~tle to the two parcels will be transferred to Sulhvan House, Inc, the apphcant, upon the ~n~t~al clos~nq of the HUD Section 202 Capital Advance for each phase The ~mtial closin~ and transfer of btle for Phase I ~s expected to occur ~n June 2001 The Section 202 fund~n.q for Phase II ~s dependent upon a separate apphcabon to be submitted to HUD ~n May 2001, so the inlbal clos~n.q and transfer of title for Phase II would occur ~n spnn.q or summer of 2002. Does any other ind~wdual, associabon or corporation occupy or use any part of the premises of any property for which the exempbon ~s sought? If so, g~ve all details No bo Is any ~ncome derived from the use of any port~on of the real property by other individuals or groups, whether considered as rent or reimbursement for necessary expenses for serwces ~ncurred? If so, give all details No List the present tax assessment and taxes due for personal property for which the exempbon ~s sought Not applicable. The or.qamzatlon does not presently own any personal property VVith regard to personal property, state the purpose for which the property ~s being used Is ~ncome derived from the use of any such property by ind~viduals, groups or otherwise? If so, give all details Any and all personal property that may be acquired in connecbon with the planned ~ndependent liwng facihty will become assets of the property for its operabon and/or the use of ~ts residents No income w~ll be derived from the use of personal property, per se The fac~hty must be operated on a not-for-profit bas~s under HUD re.qulat~ons Is the orgamzation exempt from taxation pursuant to Section 501(c) of the Internal Revenue code of 1954'~ If so, attach a copy of correspondence from the Internal Revenue Service determimng that the orgamzabon ~s tax exempt. Yes See attachment 10 Has the ABC Board issued a current annual alcohol beverage hcense for the service of alcohol beverages for use on the property from which tax exempbon is here sought'~ No 11 Is any d~rector or officer of the agency pa~d compensation ~n excess of a reasonable allowance for salanes or other compensat~on'~ No d~rector or officer of the Or.qan~zat~on receives any salary or other compensation 12. Does any part of the earnings, exclusive of salanes, of such organization inure to the benefit of any ~ndiv~dual? If so, hst what port~on and to whom for each of the past three years No Also see response to 11 13 What port~on of the service provided by such organ~zabon is generated by funds received from donations, contributions, or local, state, or federal grants? Donabons shall include the providing of personal services or the contnbut~on of any ~n-k~nd or other material services There is no debt service under the HUD Section 202 Capital Advance that wdl be used for the development of Sulhvan House However, the operabn.~ costs of the facd~ty must be pa~d from a combination of tenant rents and a Prolect Rental Assistance Contract (PRAC) w~th HUD Eh~ble, very-low-~ncome tenants wdl pay 30% of adlusted gross ~ncome as rent, and the pRAC wdl make up the remainder of operat~n.q costs under a HUD-approved budget Very-low-~ncome tenants are eldedy persons and households whose ~ncomes do not exceed 50 percent of the area median income adjusted for by famdy size [currently $17,250 for a one-person household] Additional federal funds may be souqht ~n the future, such as HUD Service Coordinator Grant funds In addition, Sullivan House wdl avad ~ts residents of social services that are provided generally to very-low-~ncome elderly persons ~n the area, some of which m~ght be funded ~n whole or ~n part by donations, contnbut~ons, or state, local, or federal grants No donabons have yet been received, other than funds advanced by the Sponsor, the Cathohc D~ocese of R~chmond, for the development costs of the facd~ty, some of which m~.aht be reimbursed under the Section 202 Capital Advance In addition, some or all of the fair market value of the land for Sulhvan House w~ll be donated to the development by B~shop Sulhvan Board Members of Sulhvan House, Inc donate their t~me and services and may contribute or sohc~t donations, services, or ~n-k~nd contributions for the benefit of the fac~hty and ~ts residents Examples would be entertainment, transportation assistance, and common-area fum~sh~n.qs or artworks for the enloyment of residents 14 Does the organization prowde services for the common good of the pubhc? If so, explain ~n detail and ~nclude ~n your explanation of services prowded, the cost of the services to the recipient and the method of determining cost of the services to the recipient, and any other detads you deem pertinent Under HUD re.qulabons, the Owner Corpor~bon must be a sln.qle purpose enbW, estabhshed to develop, own, and operate the hous~n~ facd~ty for very-low-~ncome elderly and disabled funded under the Section 202 Capital Advance Sulhvan House, Inc wdl operate Sulhvan House on a fa~r-houslnq, equal opportunity, and non-denominational bas~s, for the general good and well- being of the very-low-income sen~ors and d~sabled persons who may live there, and the famdles of those persons From t~me to t~me, the orgamzat~on may open the faclhty for pro.qrams, acbwt~es, or functions to serve other, non-resident elderly or d~sabled persons ~n the commumty Individual Board Members of the orqanizabon are local residents who have demonstrated a commitment to the pubhc good Many of them are active on chantable foundations, social service or.aamzations, or other housing boards. 15. What part, ~f any, of the actiwt~es of the orgamzabon ~nvolves carrying on propaganda, or otherwise attempting to ~nfluence legislation? None 16. Has the organization ever participated in, contnbuted to, or intervened ~n any political campaign on behalf of any candidate for public office? If the answer ~s yes, please provide any qualifying information you deem necessary. No 17. State the organization's rule, regulabon, pohcy, or practice conceming dlscnm~nat~on on the bas~s of religious conv~ction, race, color, sex or nabonal ong~n Although established under the Sponsorship of the Catholic Diocese of R~chmond, the organization, Sullivan House, Inc., under HUD regulabons, may not have any reh~ious purpose. In addition, the or.qamzabon must enter into a Regulatory A~reement with HUD, which provides, in pertinent part "13 Mortgagor will comply w~th the provisions of any Federal, State, or local law prohibiting discrimination ~n hous~n~ on the grounds of race, color, creed, age, sex, handicap, famdial status or nabonal odd,n, including T~tle VI of the C~vil R~ghts Act of 1964 (42 U S C 2000d-1), the Fair Housing Act (42 U S C. 3601), Section 504 of the Rehabd~tatlon Act of 1973 (29 U S C 794), Age D~scnm~nabon Act of 1975 (42 U S C 6101) and Executive Order 11063 (24 F R. 11727), and all requirements of the Department of Housm_~ and Urban Development (24 CFR) issued pursuant to Title VI, the Fair Housing Act, the Rehabd~tabon ACt, the Age D~scnminabon Act, or Executwe Order 11063" 18 L~st the name, bus~ness address, and business telephone of the president and secretary of the corporabon as well as the managing officer President MaryEIlen Cox, President Sullivan House, Inc 16466 Little R~ver Dnve Beaverdam, VA 23015-9309 804-227-3116; Fax 804-227-3525 Secretary Contact- E~leen Ayvaz~an, Secretary Sulhvan House, Inc 216 Bay Colony Dnve V~rgm~a Beach, VA 23451 757-518-2723, Home' 757-428-5459 Donald J Jakob, Development Consultant McN~chols & Associates, Inc 3333 Peters Creek Road Roanoke, VA 24019 540-563-4565, ext. 427, Fax: 540-563-9182 19 In addition to the above, please provide the following ~nformabon A copy of the organizabon's most recent audited financial statement (~ e, current balance sheet and income and expense statement for the organization's last fiscal penod), as well as a complete copy of any federal tax return filed by the orgamzat~on for the most recent year A copy of the or.qanizabon's most recent IRS form 941 is attached The omamzation is less than one year old and has not yet prepared or filed any audits A financial statement w~ll be prepared as part of the HUD F~rm Commitment application after the orqanization ~s cap~tahzed by the Sponsor, the Cathohc Diocese of Richmond bo A detailed hsbng of the current salades and/or other compensabon of the officers and directors of the organization. In addition, please specify, as to each officer or d~rector so listed, the basis of the listed salary or compensabon 0.e, annually, per meebng, houdy, commission, etc.). No director or officer of the or.qamzabon receives any compensabon List the salaries of each employee posibon classification and hst the number of full-bme and part-bme employees in each class~ficabon The orRan~zabon has no employees and w~ll not have any employees unbl shortly before complebon of construcbon in the Spnn.q of 2002. At full staffing, the property w~ll employ a Manager, at a salary of approximately $30,000 per annum; a Janitor/Maintenance person, at a salary of $10 to $12 per hour; a part-time Service Coordinator, at a salary of $10 to $15 per hour, and a part-bme Secretary/Recept!onist, at a salary of $8 to $10 per hour Specify what percentage of the organization's gross ~ncome was required to pay real and personal property taxes for each of the last three years Not applicable. e! Explain ~n detad why the C~ty Councd of the C~ty of V~rg~ma Beach should recommend to the General Assembly of V~rg~n~a that th~s organ~zabon should be exempt from real and personal property taxabon ~n V~rg~n~a Beach Please I~st ~n your explanabon the services provided by the orgamzabon The orqamzabon's reason for be~nq ~s to serve as the Owner Corporabon for a Section 202 Supportive Hous~nq facility for very-low-~ncome sen~ors and d~sabled sen~ors ~n V~r.qm~a Beach All d~rectors and officers of the orqan~zabon serve w~thout compensabon to prowde development and operabonal overs~.qht for the facd~ty The orqamzabon's sole asset wdl be the Sullivan House independent hwnq facd~ty to be constructed w~th funds prowded under a HUD Secbon 202 Capital Advance Sulhvan House wdl provide safe, attractive, and affordable hous~n.q ~n a supportive environment for 67 eldedy and d~sabled elderly households ~n V,rq~n~a Beach The only sources of ~ncome available to the facd~ty wdl be the rents pa~d by the very-10w- ~ncome residents (whmh are I~m~ted to 30 percent of their adlusted .qross ~ncomes), and the HUD Proiect Assistance Contract (PRAC) (which ~s I~m~ted by the Annual Operabn.q Cost Standards issued by HUD and predicated on calculabons of typmal operabng costs that do not include local real and personal property taxes) HUD's Secbon 202 requlabons mandate that the Owner Corporabon apply for exempbon from local real and personal property taxabon as a prerequisite for obtaln~n.q the Capital Advance and PRAC Sulhvan House will be the first Section 202 facility to be funded by HUD in V~r.qmla Beach ~n 20 years The other Section 202 facil~bes ~n Vlr.q~nla Beach, Russell House, Luther Manor, and Beth Sholom Sands, all have received exemptions from real and personal property taxabon The C~ty of V~r.q~n~a Beach has a .qreat, unmet need for affordable hous~n.q for very-low- income semors as demonstrated by the C~ty's Fwe-Year Consohdated Plan and the Report on Sen~or Hous~nq published by the C~ty of V~r.q~ma Beach Sen~or Hous~n,q Committee ~n 1999 Sulhvan House w~ll be a s~qmficant step toward address~nq that need The development of Sulhvan House would not have been possible w~thout the s~qn~flcant contnbubon of land value by the Sponsor, the Catholic D~ocese of R~chmond The operation of Sulhvan House wdl not be feasible w~thout the C~ty of V~r.q~ma Beach's support of the real and personal property tax exempbon by the General Assembly of V~r.q~n~a 2O Has any member of the organ~zabon contacted any member of the General Assembly about sponsonng leg~slabon that would designate the organ~zabon's property as exempt from taxabon? Not at th~s t~me Th~s form was prepared by MaryEIlen Cox, whose btle w~th the organ~zabon ~s President ORGANIZATION Sullivan House, Inc By: Name MaryEIlen Cox Title President Date February 13, 2001 STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: Eileen K. Ayvazian being duly sworn, deposes and says that she is the Secretary (title) of the Sullivan House, Inc (legal name of ownership organization) named within entitled application; that she has read the foregoing information sheet and knows the contents thereof, and that the same is true to her own knowledge except as to the matters herein stated to be alleged upon information and belief, and as to those matters she believes to be true. (Signature of Officer) -/// J Subscribed and sworn to before me this J~) day of ~ ,2001. Notary Public My Commiss,on Expire~f~ ~.~, ZO ~Y 02/12/01 ~iON 16 49 FAX 8043589159 LAIHOLIC DIOLLSL ~ OOl 811 Cathc'xtral Place lhchmond, Vtrgtma 23220 (804) 359-5661 Date To: FAX FROM. FAX TRANSMISSION COVER SHEET February 12.2001 Mr. Don Jakob - McNmhols & Assocmtes, Inc. 1-540-563-9182 John F. Barrett YOU SHOULD RECEIVE FIVE PAGE(S), INCLUDING THIS COVER SHEET. IF YOU DO NOT RECEIVE ALL THE PAGES, PLEASE CALL 804-35g-5661 Dear Don The office of the General Secretary at the United States Catholic Conference has completed its revmw of the application for Sullivan House to be included ~n the 2001 Official D~rectory to be pubhshed within the next th~dy days They have adwsed the Diocese we may issue the enclosed letters I am enclosing cop~es of letters from Mrs. Anne C. Edwards, chancellor of the diocese, forwarding on to The Official Cathohc Directory our request for Sullivan House to be included in the OCD Also enclosed is a copy of the letter to you from Mrs Edwards indicating the process ~s completed The original of this letter ~s being ma~led to you today by Mrs. Edwards. We are awaiting a FAX conflrmahon the corporation will be included in the next OCD. Also enclosed ~s the latest copy of the IRS group ruling indicating that all institutions listed in lhe OCD are lax exempt under the prows~ons of Section 501(c)(3), IRC of 1986 as amended We will be advising you upon receipt of acknowledgement from the OCD that the corporation will be listed. The publmhing of the 2001 OCD is due within one month and the next IRS group ruling usually reaches us in early June. I am dehghted to have been able to expedde the process and apologize for the unnecessardy long delay s~nce you orgmated the request with our attorneys 02/12/01 )ION 16 49 FA3, 8043589159 CATHOLIC DIOCESE CATHOLIC DIOCESE OF RICItMOND 811 Cathedral Place Richmond, Virgama 232204801 February l2,2001 Jeanne LoGiurato Hanline Managing Editor The Official Catholic Dixectory 121 Chaalon road New Providence, New Sersey 07974 Dear Jeanne: I write to request that a diocesan organiTation be included in the Diocese of Richmond's listing in the next edition of the Official Catholic Directory ("OCD"). Please list it in "Section ~ Homes for the Aged." I realize it may be too late to include in the 2001 Edition, but it can be included in Part II when it is published in the fall. The organization is: Sullivan House, Inc. c/o Mr. Don Jakob 3333 Peter's Creek Road Roanoke, Virginia 24019 I have thoroughly reviewed this orgauization's Application for inclusion in the USCC Group Ruling and listing in the OCD, as well as the supporting documentation. Sullivan House, Inc. is organized and operated exclusively for Section 50 l(c)(3) purposes and meets both the "purposes" and "dissolution" requirements of the Internal Revenue Code I now approve its inclusion in both the USCC Group Ruling and the next edition of the OCD. If there is any additional information you require, please contact me. Would you please fax mc a confirmation letter indicating receipt of this letter and assurance that this organization will appear in the next edition of the OCD? Thank you for your kind assistance. With my very best wishes, I am /~s sincerely, Chancellor c: Most Rev Walter F. Sullivan, Bishop of Richmond Mr. John F. Barrett, Dtrector of Finance 002 Telephone (804) 359-5661 02/12/01 ~IHULIU UIU~L~L CATHOLIC DIOCESE OF RICHMOND 811 Cathedral Place Richmond, Vkgima 232204801 Febmary 12, 2001 ~ uu~ Telephone (8O4) 359-5661 Sullivan House, Inc. c./o Mr. Don Jakob 3333 Peter's Creek Road Roanoke, Virginia 24019 Dear Mr. Jakob: We have reviewed your organization's application for inclusion in the USCC Group Ruling (''Group Ruling") and listing in the Official Catholic Directory ("OCD"). Ba~ed upon the application and supporting documentation, we have approved its inclusion in the Group Ruling and the next edition of thc OCD. Please inform this office of any changes in your organization's name, address or corporate form, and of any material changes in its governance, purposes, activities or sources of support. This letter establishes your organization's exemption from federal income tax under section 501 (e)(3) of the Internal Revenue Code ("Code") in the interim until publication of the next edition of the OCD. Please retain it in your permanent records. Inclusion in thc OCD and USCC Group Ruhng does not automaucally relieve your org_aniz_a_tion of the requirement to file annual IRS Form 990. You should consult with your own tax advisor to determLne whether your organization qualified for one of the mandatory or discretionary exceptions to that requirement Yours sincerely, Anne C. Edwards Chancellor c: The Most Rev. Walter F. Sullivan, Bishop of Richmond Mr. John F. Barrett, Director of Finance 02/12/01 ~ION 1o 50 FAX ~0435~9159 CAIHULIt DIU~LbL ~ uu4 Internal Revenue Service D~t-r~ct Director Da~e:.June 5, 2000 Ms. Deirdre Halloran Associate General Counsel United States Catholic Conference 3211 4'" Street, N.E. Washington, D.C. 20018-1194 Depart/uent of the Treasu~-y P. O. Box 2508 Cino~nx%a~i, OH 45201 Person to Contact: Myrna Huber ~31-07276 Telephone Nunxber: 877-829-5500 FAX Number: 513-263-3756 Dear Ms Halloran: In a ruling dated March 25, 1946, we held that the agencies and instrumentalities and all educational, charitable and religious institutions opera=ed, supervised, or controlled by or in coD_nection with the Roman Catholic Church ~n the United States, its territories or possessions appearing in The Official Catholic Directory 1946, are entitled to exemption from federal income tax under the provisions of section 101(6) of the Internal Revenue Code of 1939, which corresponds to section 501(c) (3) of =he 1986 Code. This ruling has been updated annually to cover the activities added ~o or deleted from the Directory. The Official Catholic Dlrectory for 2000 shows the names and addresses of all agencies and instrumentalities and all educational, charitable, and religious institutions operated by the Roan Catholic Church in the United States, its territories and possessions in existence at the time the Directory was published. It is understood that each of these is a non-profit organization, that no part of the net earnings thereof inLhres to the benefit of any individual, that no substantial part of their activities is for promotion of legislation, and chat none are pti%rate fou/ldations under section $09(a) of the Code. Based on all information submitted, we conclude that the agencies and instrumentalities and educational, charitable, and religious institutions operated, supervised, or controlled by or in corunect~on with the Roman Catholic Church in the United State~, its territories or possessions aDpearlng in The Official Catholic Directory for 2000 are exert from federal income taX under section 501(c) (3) of the Code. Donors may deduct contributions to the agencies, ~nstrumen=al~ties and i~titu=ions referred to above, as provided by section 170 of the Code. Beq%/ests, legacies, devises, transfers or gifts to =hem or for their use are deductible for federal estate and gift tax purposes under ~ectlon~ 1055, 2106, and 2522 of the Code. CAIIiULIC DlOCkSk 005 Ms. Deirdre Halloran Beginning January 1, 1984, unless specifically excepted, you and your subordinates must pay tax under the Federal Insurance Contributions Act (Social Security taxes) for each employee who is pay $100 or more in a calendar year. You and your subordinates are not l~able for the tax under ~he Federal Unemployment Tax Act (FUTA). By May 31, 2001, please send four copies of The Official Catholic Directory for 2001 to the IRS TE/GE in Cincinnati, four copies to the Service Center an Ogden, two copies to the gO Divisions in Balt~nore, Brooklyn, Dallas, Chicago, St. Paul, Atlanta, and Los Angeles, and six copies to the IRS National Headquarters. The conditions concerning the retention of your group exemption as set forth in our previous determine=Ion letter of August 17, 1983, rev~!n in full force and effect. Sincerely, ~Direct;r, Customer Account Services 941 (Rev October2000) (1) Department ol the Treasury Internal Revenue SeCVlCe Enter state code for state in which deposits were made ONLY if different from state ~n address to the right · (see page 2 of instructions) If address Is d~fferent from prior return, check here I~ I Employer's ~uarterly Federal Tax Return · See separate instructions for information on completing this return HI' 54-2004902 Please type or print ****AUTO**5-DIGIT 24019 '7 DEC2000 S28 C SULLIVAN HOUSE INC % COORDINATED SERVICES MANAGEMENT 3333 PETERS CREEK RD NW 489 ROANOKE VA 24019-2719 I,,hhl,,llh,,~,,lll,h.,hll.,I,,,lll,h,,,Ih,,Ihl~h,I OMB No t545-0029 T FF FD FP I T L 1 1 1 1 1 1 1 1 1 1 2 "llLlllllllll-t 6 7 8 8 8 8 8 8 8 8 3 3 3 3 3 3 3 3 4 4 4 5 5 5 9 9 9 9 9 10 10 10 1010 10 10 1010 10 If yOU do not have to file returns in the future check here · E] and enter date final wages paid · If ~,ou are a seasonal employer, see Seasonal'employers on pag'~e I of the Instructions and check ~ere · -7 ,. 1 Number of employees in the pay period that Includes March 12th . · 2 --- O'--- 2 Total wages and tips, plus other compensation ........ 3 3 Total income tax withheld from wages, bps, and sick pay ........ 4 Adjustment of withheld income tax for preceding quarters of calendar year . . . 4 5 Adjusted total of income tax withheld (hne 3 as adjusted by hne 4wsee ~nstructions) 5 6 Taxable social security wages .... 6a --- (2 ~ x 12.4% i 1~4)'= 6b Taxable social security tips. 6c x 12.4% (124) = 6d 7 Taxable Medicare wages and bps 7a ----O~ x 2 9% (029) = 7b 8 Total social security and Medicare taxes (add lines 6b, 6d, and 7b) Check here if wages are not subject to social security and/or Medicare tax ....... · E_~ 8 9 Adjustment of social security and Medicare taxes (see instructions for required explanation) Sick Pay $ :!: Fractions of Cents $ :t: Other $ = 9 10 Adjusted total of social security and Medicare taxes (hne 8 as adjusted by hne 9--see 10 instructions) ....... 11 Total taxes (add hnes 5 and 10) . 11 --- O~-' 12 12 Advance earned Income credit (EIC) payments made to employees .... 13 Net taxes (subtract line 12 from line 11). If $1,000 or more, this must equal line 17, 13 -'- 0~ column {cl) below {or line D of Schedule B {Form ~4111 . . 14 Total deposits for quarter, including overpayment apphed from a pnor quarter. 14 15 Balance due (subtract hne 14 from hne 13) See instructions 15 16 Overpayment. If hne 14 is more than hne 13, enter excess here · $ and check if to be: E~ Apphed to next return OR E} Refunded · All filers: If line 13 is less than $1,000, you need not complete line 17 or Schedule B (Form 941) · Semiweekly schedule depositors: Complete Schedule B (Form 941) and check here. · F'J · Monthly schedule depositors: Complete line 17, columns (a) through (d), and check here. · ~J 17 Monthly Summary of Federal Tax Liability. Do not complete If you were a semiweekly schedule depositor S .-_ _ Under penalties of perlury. I declare that I have exam,ned this return, including accompanyDg schedules and statements, and to the best of my knowledcj lull and behef. ,t Here For Privacy Act and Paperwork Reduction Act Notice, see back of Payment Voucher Cat No i?001Z Form 941 (Rev 10 200l~j /1.'10 ~'~ P L O'./ E ¢ '; Item VI-J.2. - 22 - ORDINANCES/RES OL UTIONS ITEM # 4 7989 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Councd ADOPTED: Resolutton to authortze the Mayor to execute the Fourth Amended Charter Agreement of the Southeastern Vtrgtnta Job Tratntng Admtntstratton (SVJTA) re Workforce Investment Act (WIA), mcludmg the executton of a Memorandum of Understanding between the chteflocal elected offictals of the parttctpattngjurtschcttons Vottng 1 I-O (By ConsenO Councd Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham I,V Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Rosemary Wtlson and Vtce Mayor Wtlham D Sessoms, Jr Counctl Members Voting Nay None Counctl Members Absent None Aprtl 3, 2001 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE FOURTH AMENDED CHARTER AGREEMENT OF THE SOUTHEASTERN VIRGINIA JOB TRAINING ADMINISTRATION WHEREAS, by Charter Agreement dated July 1, 1974 7 ("Charter Agreement"), the Cities of Chesapeake, Franklin, Norfolk, 8 Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of 9 Wight and Southhampton joined together to create the Southeastern 10 Tidewater Area Manpower Authority, for the purpose of administering 11 the Comprehensive Employment and Training Act of 1973; 12 WHEREAS, the Charter Agreement was amended, effective 13 October 1, 1983, to reflect, among other things, that programs 14 previously administered under the Comprehensive Employment and 15 Training Act of 1973 ("CETA") had been undertaken by the Job 16 Training Partnership Act of 1982, the successor legislation to 17 CETA; 18 WHEREAS, the Charter Agreement was amended a second time, 19 effective January 1, 1985, to change the name of the joint venture 20 from the Southeastern Tidewater Area Manpower Authority to the 21 Southeastern Virginia Job Training Administration ("SVJTA"); 22 WHEREAS, in 1998, Congress adopted the Workforce 23 Investment Act (~Act") to replace the Job Training Partnership Act; 24 WHEREAS, the Charter Agreement was amended a third time, 25 effective January 1, 2000, to make it consistent with applicable 26 provisions of the Act; and 27 WHEREAS, the Charter Agreement must be amended a fourth 28 time, effective July 1, 2001, in order to bring it into conformance 29 with recent changes to the Act. 30 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE 31 CITY OF VIRGINIA BEACH, VIRGINIA: 32 1. That the Mayor is hereby authorized to execute, on 33 behalf of the City of Virginia Beach, the "Fourth Amended Charter 34 Agreement of the Southeastern Virginia Job Training 35 Administration," a copy of which is attached hereto as Exhibit A 36 and incorporated by reference. 37 2. That the Mayor is hereby further authorized, on 38 behalf of the City of Virginia Beach, to take any and all actions 39 necessary to continue to carry out the City's duties and 40 responsibilities under the Workforce Investment Act, including the 41 execution of a Memorandum of Understanding between the Chief Local 42 Elected Officials of the participating jurisdictions, a copy of 43 which is attached hereto as Exhibit B and incorporated by 44 reference. Adopted by the Council of the City of Virginia Beach, Virginia, on the 3 day of April , 2001. CA-8073 ORD IN~NONCODE~ SVJTA2. RES 03/27/2001 R2 Approved As To Content: City Manager's Office Approved As To Legal Sufficiency: ice ~ney, s Off EXHIBIT A FOURTH AMENDED CHARTER AGREEMENT OF OPPORTUNITY, INC. OF HAMPTON ROADS, FORMERLY KNOWN AS THE SOUTHEASTERN VIRGINIA JOB TRAINING ADMINISTRATION THIS FOURTH AMENDED CHARTER AGREEMENT is made this first day of July, 2001, by and between the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of Wight and Southampton, pursuant to the authority granted by Section 15.2-1300 of the Code of Virginia, 1950, as amended. Whereas, effective July 1, 1974, the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of Wight and Southampton joined together to create the Southeastern Virginia Job Training Administration (SVJTA), formerly known as the Southeastern Tidewater Area Manpower Authority, as a joint venture; and Whereas, effective October 1, 1983, January 1, 1985, and January 1, 2000, the participating jurisdictions amended the Charter of the Southeastern Virginia Job Training Administration in certain respects; and Whereas, the participating purisdictions desire to amend the Charter of the Southeastern Virginia Job Training Administration a fourth t~me consistent with applicable provlsmons of the Workforce Investment Act (WIA) of 1998, as amended, and to reaffirm it in all other respects. NOW, THEREFORE, it is mutually agreed by the parties hereto as follows: 1. The consortium chartered the 1st day of July, 1974, by the Cities and Counties signatory thereto as the Southeastern Virginia Job Training Administration shall, effective July 1, 2001, be named Opportunity, Inc. of Hampton Roads ("Opportunity, Inc."). 2. Opportunity, Inc. shall exmst in perpetuity, subject to d~ssolution by agreement of the governing bodies of the participating jurisdictions. 3. Opportunity, Inc. shall have for its purpose the provision of workforce development services in accordance with the provisions of the Workforce Investment Act of 1998, as amended, or any future legislation of similar import and applicability, and shall serve as the grant subrecipient. 4. Opportunity, Inc. shall be governed by a Workforce Development Board duly appointed in accordance with the Workforce Investment Act of 1998, as amended, and by the Chief Local Elected Officials of each particzpating ~ur~sdzct~on. 5. The Workforce Development Board and the Chief Local Elected Officials shall meet at least quarterly. 6. Opportunity, Inc. IS hereby authorIzed and empowered: (a) To adopt policies and procedures for the regulation of its affairs and the conduct of its business; (b) To maintain an office at such place or places as it may designate; (c) To sue and be sued; (d) To accept grants and gifts from the participating jurisdictions, the Commonwealth of Virginia, the Federal government or any other governmental body or political subdivision, and from any private corporation, copartnership, association, individual or other entity; (e) To enter into contracts w~th the Federal government, the Commonwealth of Virginia, any political subdivision, or any agency or instrumentality thereof, or with any private corporation, workforce investment board, copartnership, association, individual or other entity providing for or relating to the furnishing of workforce development or related services; (f) To employ such staff and to retain such legal representation as may be deemed necessary, and to prescribe their powers and duties and fix their compensation, within the approved budget; (g) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers hereunder; provided, however, that contracts or agreements for the borrowing of money for which the express written consent of each participating jurisdiction must be obtained; (h) To do all acts and things necessary or convenient to carry out its purposes, consistent with the provisions of Workforce Investment Act of 1998, as amended, or any future legislation of similar import and applicability. 7. Opportunity, Inc. shall be funded by governmental grants and private contributions as set forth in section 6(d) above and shall conduct a financial and compliance audit annually in accord with all applicable rules and regulatIons. 8. The fiduciary l~ab~lity for funds shall be vested in the participating ]ur~sd~ct~ons on a percentage basis determined by comparing the amount of actual utilization of workforce development services by a participating ]urisdlction to the total utilization of such services by all participating jurisdictions during the fiscal year pertaining to any such liability. The percentage shall be determined by using, as the numerator, the number of participants served during such fiscal year in a particular participating jurisdiction, and, as the denominator, the total participants served during such fiscal year in all participating jurisdictions. 9. Any participating jurisdiction may withdraw from this agreement as of the last day of June in any year, provided ~t gives written notice thereof to the Chief Local Elected Officials prior to the first day of March preceding the date of withdrawal. 10. Upon dissolution of Opportunity, Inc., all of its assets and property shall be disposed of as determined by the Chief Local Elected Officials in accordance with applicable rules and regulations. 11. All real and personal property shall be acquired, and held in the name of Opportunity, Inc. and d~sposed · of by the Chief Local Elected Officials in accordance with applicable rules and regulations, as well as those rules and regulations adopted and promulgated thereby. IN WITNESS WHEREOF, the parties hereunto have set their signatures and seals as of the day and year first written above. ATTEST: CITY OF CHESAPEAKE City Clerk Mayor Date CITY OF FRANKLIN City Clerk Mayor Date COUNTY OF ISLE OF WIGHT City Clerk Chair, Board of Supervisors Date CITY OF NORFOLK City Clerk Mayor Date CITY OF PORTSMOUTH City Clerk Mayor Date COUNTY OF SOUTHAMPTON City Clerk Chair, Board of Supervisors Date CITY OF SUFFOLK City Clerk Mayor Date CITY OF VIRGINIA BEACH City Clerk Mayor Date EXHIBIT B MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding entered into this 1st day of July , 2001, by and between the Chief Local Elected Officials of the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of Isle of Wight and Southampton, party of the first part, hereinafter referred to as the "CLEOs" and the Hampton Roads Workforce Development Board, created pursuant to the terms of the Workforce Investment Act (Public Law 105-220), party of the second part, hereinafter referred to as "HRWDB". WHEREAS, the Workforce Investment Act (WIA) created a partnership between the private sector and local government with the responsibility of providing policy guidance and the exercise of oversight with respect to workforce development, and WHEREAS, it is the desire of the HRWDB, being the body selected in the Workforce Investment Area encompassing the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of Wight and Southampton, to enter into this Memorandum of Understanding with the CLEOs to fulfill the requirements of WIA in the manner specified hereinbelow, with the City of Virginia Beach as the grant recipient, and Opportunity, Inc. of Hampton Roads, a consortium established pursuant to Section 15.2- 1300 of the Code of Virginia, 1950, as amended, hereinafter referred to as "OIHR", as the grant subrecipient, NOW, THEREFORE, it is mutually agreed as follows: Revised 3/13/01 FIRST: A. The parties hereto agree that for purposes of administering programs for which funds are made available under WIA, in the Workforce Investment Area referred to in the preamble herelnabove, the City of Virginia Beach shall serve as the grant recipient and OIHR shall serve as the grant subrecipient. OIHR's budget shall be funded from the grant receipts and other sources. B. For purposes of carrying out its responsibilities under this Memorandum of Understanding, OIHR shall employ a professional staff, to include a President/Chief Executive Officer, who shall be responsible to the CLEOs of the Workforce Investment Area and the HRWDB. The President/Chief Executive Officer, staff and legal representation shall be available to advise and make recommendations to the HRWDB and the CLEOs or their designees on proposed and ongoing programs. The OIHR staff shall cooperate and assist the HRWDB and the CLEOs or their designees in the performance of their respective duties required under the WIA, including attendance at meetings as requested to report on activities, and the provision of a constant and open line of communication. The employment and/or termination of the President/Chief Executive Officer will be a decision by the HRWDB and require the concurrence of the CLEOs. OIHR shall maintain personnel policies and procedures consistent with applicable rules and regulations and approved by the CLEOs. SECOND: Each party designates its Chairman, or another member to be selected by such Chairman, as a chief l~aison to the other, for purposes of discussing mutual concerns. Revised 3/13/01 THIRD: It is acknowledged and agreed that, along with OIHR's acceptance of the responsibility of grant subrecipient, OIHR assumes fiduciary responsibility for all funds it handles and manages. OIHR and the HRWDB agree to procure and maintain insurance in the amounts and types as recommended by the grant recipient. FOURTH: The parties mutually agree that each is bound by the provisions of WIA, that all WIA programs will be operated only in conformance with such Act, and that all WIA funds will be expended only as allowable under WIA, as amended. FIFTH: Those matters requiring the approval of both bodies, specified under Section 117 of WIA, as may be amended from time to time, shall be determined in partnership and with the approval of both bodies. In the event there is not concurrence of the two bodies as to matters requiring agreement, a Committee will be formed consisting of an equal number of representatives of the CLEOs or their designees and the HRWDB. This Committee shall attempt to reach an acceptable accommodation, to be resubmitted to each body for approval. SIXTH: It is agreed that those matters which deal with administration of grant contracts must be dealt with on a daily basis by OIHR staff as the grant subrecipient. Nothing contained herein shall require prior approval of actions or responsibilities contained in such contracts. However, any actions of an exceptional or unusual nature shall be reported to each body at the next regularly scheduled meeting. Such actions may be contravened only with the concurrence of the HRWDB and the CLEOs. Revised3/13/01 SEVENTH: The CLEOs or their designees and the HRWDB will monitor finances and performance of all programs, activities and providers utilizing OIHR staff for such purposes. EIGHTH: The Chairperson of the CLEOs shall be designated as the official spokesperson for OIHR and the HRWDB as to all matters arising under this Memorandum. NINTH: Each shall separately indemnify itself and hold the other harmless from liability for its separate actions. Each is independent, and not the employee, partner or agent of the other, except as may be specified herein. TENTH: This Memorandum shall be effective July 1, 2001. This agreement may be amended or terminated by agreement of both parties. ELEVENTH: It is understood that this Memorandum shall not be entered into and be binding, unless and until it has been approved by the CLEOs and the HRWDB and signed by their respective Chairpersons. No amendment or modification shall be valid unless approved in the same manner. CHIEF LOCAL ELECTED OFFICIALS: Meyera E. Oberndorf, Mayor City of Virginia Beach HAMPTON ROADS WORKFORCE DEVELOPMENT BOARD: Andrew S. Fine, Chairperson Revised 3/13/01 - 23 - Item VI-K. 1. APPOINTMENTS ITEM # 47990 B Y CONSENSUS, City Counctl RESCHEDULED thefollowtng APPOINTMENTS: BEACHES AND WA TER WA YS COMMISSION COMMUNITY SER VICES BOARD (CSB) FRANCIS LAND HOUSE BOARD OF GOVERNORS Aprtl 3, 2001 - 24 - Item VI-M. 1. NEW BUSINESS ITEM # 4 7991 The Mayor announced that, as a result of the Aprtl 2nd CITY COUNCIL RETREAT, Ctty Counctl will schedule 2 evemng meettngs each month Public Hearings shall be scheduled on the First and Fourth Tuesdays Planning Items shall conttnue to be heard on the Second and Fourth Tuesdays The Third Tuesdays wtll conttnue to be a Workshop In addttton, Special Formal Sessions may be scheduled for Council deliberation and action, at whtch ttme pubhc comment wtll not be tnvtted Aprtl 3, 2001 Item VI-M. 2. NE W BUSINESS - 25 - ITEM # 4 7992 Mayor Oberndorf advtsed Chdd Magaztne hsted the ten best ctttes for famtltes Virginia Beach was ranked Second Denver was first Th~s classtficatton was based on the number of Pechatrtctans, the proxtmtty to a chddren's hospttal, tmmuntzatton rates, tnfant mortahty rates, atr quahty, water quahty, school spendtng, puptl-teacher ratto, avatlabthty of parks and green space, nearby recreattonal opportunities, average commute trine, number of sunny days, average cost of a three bedroom home, unemployment rate, future job growth, crtme rate, percentage of chtldren under five and mandated mtntmum chtld care ratios Mayor Oberndorf referenced the Today Show presentatton on Sunday, Aprtl 1, 2001, whtch broadcast one of the greatest enrtchment opportumttes any chtld has tn thts area ts the Virginia Marine Science Museum Aprtl 3, 2001 - 26- Item VI-N. 1. AD JO URNMENT ITEM # 4 7993 BY CONSENSUS, City Councd ADJOURNED at 3:35 P.M. Chtef Deputy Ctty Clerk Ctty Clerk Meyera E Oberndorf Mayor Cay of Vtrgtnta Beach Vtrgtnta Aprd 3, 2001