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HomeMy WebLinkAboutJUNE 4, 2002 AGENDAof Vir inia l each CITY COUNCIL MAYOR MEYERA E. OBERNDORE At-Large VICE MAYOR WILLIAM D. SESSOMS, JR., At-Large LINWOOD O. BRANCH, 111, Beach - District 6 MARGARET L. EURE, Centerville - District 1 WILLIAM W. HARRISON, JR., Lynnhaven - District 5 BARBARA M. HENLEY, Princess Anne - District 7 LOUIS R. JONES, Bayside - District 4 REBA S. McCLANAN, Rose Hall - District 3 ROBERT C. MANDIGO, JR., Kempsville - Distt~ct 2 NANCY K. PARKER, At-Large ROSEMARY WILSON, At-Large JAMES K. SPORE, City Manager LESLIE L LILLEE City Attorney RUTH HODGES-SMITH, MMC, City Clerk "COMMUNITY FOR A LIFE~/ME" CITY COUNCIL AGENDA JOHN W. HERZKE CITY ENGINEER RM 345-OPERATIONS BUILDING un stapled\nc CITY HALL BUILDING I 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE: (757) 427-4304 FAX: (757) 426-5669 EMAIL: Ctycncl@city. virginia-beach.va.us June 4, 2002 PRESENTATION OF FIRE TRUCKS In Front of City Hall 1:30 PM I. CITY MANAGER'S BRIEFINGS - Conference Room - 2:00PM Bo Co HRT SERVICE PLAN Robert J. Scott, Director - Planning INFILL DEVELOPMENT Robert J. Scott, Director - Planning THOROUGHGOOD HOUSE LEASE Mark A. Reed, Department of Museums II. REVIEW OF AGENDA ITEMS CITY COUNCIL COMMENTS IV. INFORMAL SESSION - Conference Room - 4:30 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION Vo FORMAL SESSION A. CALL TO ORDER - Mayor Meyera E. Obemdorf - Council Chamber- 6:00 PM B. INVOCATION: Reverend Jay Smith First Baptist Church of Virginia Beach 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 Fo MINUTES. 1. INFORMAL AND FORMAL SESSIONS May 28, 2002 G. AGENDA FOR FORMAL SESSION Ho BID OPENING 1. OPENING OF SEALED BIDS 31st Street Garage Retail Space (Refer to City Council) PUBLIC COMMENT 1. Towing Advisory Board Recommendations 2. Shore Drive Transportation Study and Design Guidelines Jo ORDINANCES Ordinance to APPROPRIATE $949,000 to the FY 2001-02 operating budget of the Comprehensive Services Act (CSA) Special Revenue Fund and APPROPRIATE/TRANSFER $665,000 to the FY 2001-02 operating budget re juvenile probation Ordinance to ACCEPT and APPROPRIATE $43,024 from the State and $28,097 from the Federal Government to the FY 2001-02 operating budget of the Department of Mental Health, Mental Retardation and Substance Abuse Services (MHMRSA) re increased services to clients Ordinance to TRANSFER $200,000 within the FY 2001-02 operating budget of the Department of Mental Health, Mental Retardation and Substance Abuse (MHMRSA) re funding for facility refurbishment Ordinance to TRANSFER $142,000 within the department of Public Works' FY 2001-02 operating budget re replacement of an automated waste collection vehicle APPOINTMENT: 1. Virginia Beach/Jamestown 2007 Anniversary Steering Committee UNFINISHED BUSINESS Lo M. NEW BUSINESS' N. ADJOURNMENT ffyou 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) 05/30/02xst AGENDA\06/04/02 www.vbgov.com In Front of City HalI 1:30 PM PRESENTATION OF FIRE TRUCKS CITY MANAGER'S BRIEFINGS A. HRT SERVICE PLAN Robert J. Scott, Director - Planning B. INF~L DEVELOPMENT Robert J. Scott, Director - Planning C. THOROUGHGOOD HOUSE LEASE Mark A. Reed, Department of Museums - Conference Room - 2:00PM II. REVIEW OF AGENDA ITEMS CITY COUNCIL COMMENTS INFORMAL SESSION - Conference Room - 4:30 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION V. FORMAL SESSION - Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. INVOCATION: Reverend Jay Smith First Baptist Church of Virginia Beach 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 Fo MINUTES 1. INFORMAL AND FORMAL SESSIONS ~May 28, 2002 G. AGENDA FOR FORMAL SESSION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WltEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded here and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 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. II. BID OPENING OPENING OF SEALED BIDS 3 lst. Street Garage Retail Space (Refer to City Council) CITY OF VIRGINIA BEACH AGENDA ITEM TO: FROM' ITEM: The Honorable Mayor and Members of Council James K. Spore, City Manager Ordinance to award a Master Lease, 31st Street Parking Garage Retail Space MEETING DATE: June 4, 2002 Background: A portion of the 31st Street Project will be comprised of approximately 26,000 square feet of shell retail space( the "Retail Space") to be situated in the municipal and Authority parking garages and leased for a term of 25 years. In accordance with Va. Code § 15.2-2100, an invitation for bids for a master lease of the Retail Space was developed and advertised on April 28 and May 5, 2002, requiring interested retail developers to submit bids by June 3, 2002. It is anticipated that the bids will be opened and summarized at the June 4, 2002, regular meeting of the City Council and referred to a City Manager appointed committee for review and recommendation, and that action on the ordinance to award the master lease will be scheduled for the June 25, 2002, regular meeting of the City Council. Considerations: The selection of the retail developer for the Retail Space is an important step in the development process as it is essential for the successful bidder to be involved in the design of the Retail Space. Public Information: The 31st Street Project has been the topic of numerous public presentations, workshops and media coverage. The Invitation for Bids for a master lease of the Retail Space was advertised on April 28 and May 5, 2002 as required by law. Note: An additional public hearing is scheduled for June 11th to invite the public to comment on the leasing of this public property. Recommendations: June 4, 2002 - Open bids and refer to a City Manager appointed Committee for review. Schedule action on the ordinance to award the master lease for June 25, 2002. June 25, 2002 - Select the retail space developer and adopt the ordinance which authorizes the City Manager or his designee to develop and execute a master lease with the bidder (retail space developer) selected by City Council. Attachments: Invitation for Bids Recommended Action' Open bids, refer to City Manager Committee and schedule action on the ordinance until June 25, 2002. Submitting Dep~i'~,ment/Age, j~.ey: Public Works/Office of Beach Management City Manager: C'~"~ INVITATION FOR BIDS FOR MASTER LEASE OF APPROXIMATELY 26,000 SQUARE FEET OF RETAIL SPACE TO BE LOCATED IN THE PROPOSED 31 s~' STREET PARKING GARAGE IN THE CITY OF VIRGINIA BEACH, VIRGINIA TO BE CONSTRUCTED BY THE CITY OF VIRGINIA BEACH AND THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY The City of Virginia Beach ("City") and the Virginia Beach Development Authority ("Authority") are inviting bids for the development, management and leasing of approximately 26,000 square feet of high-quality retail space, compatible with the operation of a full service four-star hotel and adjacent high-quality real estate project located at the Virginia Beach oceanfront( Interested parties should submit eight complete copies of their bid, in writing, to the City Manager, City of Virginia Beach, Atto: 31st Street Lease Bid, City Manager's Office, 2401 Courthouse Drive, Virginia Beach, Virginia, 23456 on or before 5:00 p.m., Monday, June 3, 2002. SPACE DESCRIPTION The space to be developed, managed and leased, pursuant to a Master Lease, is described as approximately 26,000 square feet of shell space (the "Retail Space") on the street level of the proposed municipal parking garage to be constructed by the City of Virginia Beach Development Authority and the City of Virginia Beach (the "Parking Garage") on the block bounded on the north by 31st Street (Laskin Road), on the east by Atlantic Avenue, on the south by 30th Street, and on the west by Pacific Avenue, in Virginia Beach, Virginia, a portion of which property is owned by the City, and a portion of which property is owned by the Authority. The Retail Space copy of the standards for a four-star hotel are attached as Exhibit A. Page 1 of 16 will be situated on the northern and eastern faces of the street level of the Parking Garage and will provide store fronts for the entire 3 l~t Street block, the majority of the Atlantic Avenue block, and the eastern portion of the 30th Street block, generally as shown on the attached concept plan entitled "Proposed Par~'ng Facility, 31st Street Development," dated April 9, 2002, attached hereto as Exhibit B. It is anticipated that the Retail Space will be provided with roughed-in mechanical, HVAC, plumbing and electrical systems, together with sub-flooring and duct trunk lines, customary for new-construction retail shell space in the Hampton Roads, Virginia, market. The street front exterior of the Retail Space will be provided in an unfinished but secure state. Final exterior treatments will be installed by the successful respondent or its subtenants. It is anticipated that the shell Retail Space will be delivered in this form on or about September 1, 2004. It is anticipated that approximately 80 metered parking spaces will be available within the street level of the Parking Garage for use by retail patrons. All other parking for the Retail Space patrons and the Retail Space employees will be available within the Parking Garage at the same rate as the general public. Retail Space tenants will share one delivery space. It is anticipated that the Parking Garage will be completed and open for use on or about December 31, 2004, subject to delays for weather, acts of God, shortage of materials and other matters beyond the control of the City and the Authority. The Retail Space and the Parking Garage will be located across Atlantic Avenue from a proposed four-star 300 room hotel with conference facilities and an adjacent public park/open space. It is anticipated that the Parking Garage and the hotel will be joined by a pedestrian bridge/walkway which will bridge Atlantic Avenue. The Authority, the City and Thirty-First Street, L.C. (the "Developer") are parties to a Page 2 of 16 Development Agreement dated as of August 5, 1999 (the "Original Development Agreement"), relating to the development of the proposed parking facility, the four-star 300 room hotel and the - public park. Pursuant to the Original Development Agreement, the Developer is to lease from the Authority the real property on which the hotel and public park are to be constructed. A copy of the Original Development Agreement is on file and available for inspection during normal business house in the Office of the City Clerk. The Developer has proposed modifications to the Original Development Agreement which are currently being considered by the City and the Authority (the "Amended Development Agreement"). A copy of the Amended Development Agreement and the other documents which implement these proposed modifications to the Original Development Agreement are on file and available for inspection during normal business house in the Office of the City Clerk and are also available online on the City's website at www.vbgov.com. Respondents are advised that, pursuant to the Original Development Agreement, the Developer is entitled to an annual credit of $260,000 each year for 25 years to be applied against rent to be paid to the Authority for the land on which the hotel and public park are to be constructed so long as the Developer submits a bid in response to this Invitation of at least $15.00 per square foot for the Retail Space. No preference or assurance has been or shall be given to the Developer or any other potential respondent that the Developer or any particular respondent will be the selected respondent. Respondents are further advised that pursuant to the terms of the Amended Development Agreement currently being considered by the City and the Authority, the Developer is entitled to $260,000 each year for 25 years (payable in cash or by credit applied against any amount to be Page 3 of 16 paid by the Developer to the Authority or a combination thereof) so long as the City receives a bid in response to this Invitation of at least $15.00 per square foot for the Retail Space. No preference or assurance has been or shall be given to the Developer or any other potential respondent that the Developer or any particular respondent will be the selected respondent. The Authority and City Council are expected to vote as to whether to approve the Amended Development Agreement on or before May 14, 2002. If approved by both City Council and the Authority board, the terms of the Amended Development Agreement will control. If the terms of the Amended Development Agreement are not approved by the City Council and the Authority board, the terms of the Original Development Agreement will control. Each respondent should have retail development, leasing and management experience, should be financially capable of master leasing the Retail Space and should be capable of subleasing the Retail Space to a healthy mix of retail tenants to complement the hotel, the park and the remainder of the oceanfront project. CONTENT OF BID PROPOSALS Each bid proposal must contain, at a minimum, the following written information with documentation suitable for evaluation: Completed Bid Form Each respondent shall complete the Bid Form, attached hereto as Exhibit C, setting forth the information requested-for the respondent's offer, including the respondent's proposed rent offer based on a dollar per square foot basis. Completion of the Bid Form signifies acceptance of the terms outlined in the General Terms of Master Lease set forth in Exhibit D, and the Basic Use Restrictions set forth in Exhibit E. Page 4 of 16 Lease-Up Plan Each respondent shall provide a proposed lease-up plan for the Retail Space with ' proposed retail uses and square footage allocation. The lease-up plan should provide a healthy mix of retail tenants to complement the hotel, the park and the remainder of the oceanfront project. Operation and Management Each respondent shall provide a plan for the operation and management of the Retail Space. The plan should include, at a minimum, the respondent's relationship to the operation and management of the Retail Space, the intended form and term of the subleases, and maintenance of the Retail Space in a manner compatible with a four-star hotel and the remainder of the oceanfront project. Qualifications Each respondent shall submit a statement of qualifications which includes, at a minimum, specific examples of previous development work of high quality and current developments (retail and otherwise) under the respondent's management. The statement of qualifications should include: a listing of the principals of the respondent's proposed leasing and management team and their resumes; the resumes of other key individuals proposed to be involved in the development, leasing and management; a statement of the financial capacity of the respondent and its principals to meet the obligations under the Master Lease; a description of any prior bankruptcy, insolvency, reorganization or comparable proceedings; any other factors that may raise issues of character; and the prior experience of the respondent and its principals as an owner and operator of commercial real estate properties. Page 5 of 16 OTHER INFORMATION Bond. The successful respondent shall be required to execute a bond, with good and sufficient security, in a sum determined by the City, pursuant to § 15.2-2104 of the Code of Virginia (1950), as amended. Pa_wnent for Advertisement. The successful respondent shall be required to reimburse the City for the cost of the advertisement inviting bids and proposing to make the grant of the lease pursuant to § 15.2-2101 of the Code of Virginia (1950), as amended. DEVELOPER SELECTION Criteria The basic selection criteria shall include: A. The lease rate offer. B. The degree to which the proposal meets the goals of obtaining a high-quality, four-star hotel compatible, operation, leasing and management of the Retail Space. C. The qualifications and experience of the respondent in the development, management and leasing of high-quality retail space. Process All proposals must be submitted to the City Manager, Attn: 3 1st Street Lease Bid at the City Manager's Office, 2401 Courthouse Drive, Virginia Beach, Virginia on or before 5:00 p.m., Monday, June 3, 2002. Any proposals received after 5:00 p.m., Monday, June 3, 2002, shall not Page 6 of 16 be received by the City Manager, but may be offered to the Mayor of the City of Virginia Beach at the regular meeting of City Council, which will be held in Council Chambers, City Hall Building, Municipal Center, Virginia Beach, Virginia, on Tuesday, June 4, 2002. Submissions will be reviewed by a selection committee appointed by the City Manager. It is intended that the selection committee recommend one proposal to the Virginia Beach Development Authority and the Virginia Beach City Council, with a planned date of notification to the selected respondent of on or about June 25, 2002. The City of Virginia Beach and the Virginia Beach Development Authority each reserve the right to reject any and all proposals, to proceed with a specific respondent or respondents, or to take any action that either the City of Virginia Beach or the Virginia Beach Development Authority determines to be in the best interest of the City of Virginia Beach. Without limiting the foregoing, the City of Virginia Beach and the Virginia Beach Development Authority expressly reserve the right to reject any bid which is not in conformity with the Basic Use Restrictions as set forth in Exhibit E, or which is otherwise found by the City of Virginia Beach and/or the Virginia Beach Development Authority not to be compatible with "The 31st Street Project". The City of Virginia Beach and the Virginia Beach Development Authority further reserve the right to abandon the project after the award of the bid to the selected respondent as follows: (i) in the event the development and/or execution of a Master Lease cannot be successfully accomplished; (ii) in the event the City and/or the Authority elects for any reason whatsoever not to construct the Parking Garage and/or the Retail Space; or (iii) if the nature of the oceanfront project changes. Page 7 of 16 Attachments: Exhibit A - Four-Star Hotel Standards - Exhibit B - Concept Plan of Parking Garage Exhibit C - Bid Form Exhibit D - General Terms of Master Lease Exhibit E - Basic Use Restrictions Page 8 of 16 EXHIBIT A FOUR-STAR HOTEL STANDARDS A four-star hotel is outstanding - worth a special trip. Not only does it have every service normally associated with its genre, but it also has a unique style and personality and is both unusually elegant and luxurious, with an unusual design and a creative, well-integrated decor. A variety of accommodations are usually available; all are large, with spacious, comfortable seating areas. Furniture and appointments are of the best quality, complementing the overall theme. Lobbies are also spacious and equally well appointed. A fine restaurant is on the premises, and room service is a gracious experience, often with service around the clock. The entire operation is characterized by attention to detail and efficiency. Service is exceptional, and there is a feeling that guest comfort and convenience are the prevailing concern of the staff, which is large enough to ensure personalized service for each guest and outstanding in every respect: courteous, professional and knowledgeable. Characteristics of a Four-Star Hotel Immaculate housekeeping and superior maintenance Well-kept, carefully landscaped grounds Distinctive architecture Luxuriously appointed lobby and public spaces, accented by art work, fresh flowers and/or plants Fine furnishings and superior carpet in lobby and public spaces Organized area for check-in and checkout; swift, efficient service Secure, appropriate, uncluttered luggage handling area Large, very well-lighted guest rooms Well-integrated guest room decor, enhanced by art work; upgraded fabrics in draperies, spread, and upholstery Upgraded furnishings and upgraded carpet in guest rooms, in very good condition Upgraded bed linens; large, fresh pillows; extra blankets and pillows; firm mattresses in excellent condition Color television in armoire or on an attractive, decorative stand; remote control; radio; clock Table and chairs in guest rooms Central air-conditioning and heating, thermostat in guest room Very attractive, spotless, and very well-lighted baths, with medicine cabinet and/or vanity Page 9 of 16 Fine soaps and amenities in baths, plus large or thick towels, exhaust fan, hair dryer, heat lamp, scale and shave/make-up mirror Two phones in guest rooms; one phone by the bed and another on the desk; some guest rooms with phone in bath Closed closets, with ample hangers; full-length mirror Suites and luxury level accommodations available Non-smoking guest rooms available Management is highly professional, generating staff commitment to guest satisfaction Staff is courteous, helpful, articulate knowledgeable, and well-groomed Uniformed bellmen and doormen Excellent dining facilities, including at least one fine restaurant Excellent room service, with extended hours, superior service, and a varied menu Wake-up calls available Business services and meeting rooms Swimming pool and health club on premises or available nearby Most of the following available: barber and beauty shops, clothing and sundries shops, complimentary newspaper, complimentary shoeshine, concierge, health club or privileges at a health club nearby, pool side food and beverage service and recreation facilities on premises Page 10 of 16 [] [] Fq 0 0 0 I PE;TA~ I~TAII. E IT "B" PROPOSED PARKING FACH.ITY 31st STREET DE~LOP~,NT Page 11 of 16 EXHIBIT C INVITATION FOR BIDS FOR MASTER LEASE OF APPROXIMATELY 26,000 SQUARE FEET OF RETAIL SPACE TO BE LOCATED IN THE PROPOSED 31sT STREET PARKING GARAGE IN THE CITY OF VIRGINIA BEACH, VIRGINIA TO BE CONSTRUCTED BY THE CITY OF VIRGINIA BEACH AND THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY BID FORM 1. Respondent Information: Name: Address: Lease Rate Offer $ per square foot per annum 3. Attachments: By: Date: Page 12 of 16 EXHIBIT D GENERAL TERMS OF MASTER LEASE It is anticipated that the successful respondent will enter into a Master Lease with the City and the Authority for the leasing of the Retail Space. The successful respondent shall then be responsible for the development, management and subleasing of the Retail Space to a healthy mix of retail tenants which complements the hotel, the park and the remainder of the oceanfront development. The Master Lease shall generally include the following terms and shall otherwise be a commercially reasonable master retail lease having terms and provisions common in the Hampton Roads' first-class retail market: Rental. In its bid, the respondent should make a proposal for base rent based on a dollar/gross square foot basis. Term. 25 years. Security Deposit. Will be required. The respondent should make a proposal setting forth its offered security deposit in its bid. Triple Net Lease. In addition to any rent payable under the Master Lease, the Master Lease tenant shall be responsible for its pro-rata share of all costs associated with the retail space, including (a) common area maintenance (sidewalks, interior of Parking Garage designated for use by Retail Space patrons) and utility charges for such areas, (b) real estate and other taxes, and (c) hazard and other insurance. The Master Lease tenant shall be responsible for all trash collection at its cost. Use of Retail Space. The Master Lease tenant and its successors, assigns and subtenants shall use the Retail Space for the operation of retail businesses as allowed by applicable law and for no other purpose. In addition, the use of the Retail Space shall be subject to the Basic Use Restrictions set forth on Exhibit E. The Master Lease tenant shall ensure through the subleases that its subtenants each (a) operate in the Retail Space on a year round basis; (b) staff their stores with a sufficient number of employees; (c) make available to the public a sufficient stock of merchandise to accommodate any business that may be transacted; (d) maintain displays of merchandise in any display windows pursuant to a standard established by the Master Lease Pagel3of 16 tenant; (e) keep the display windows and signs well lit, (f) secure, maintain and comply with all required licenses and permits, (g) not conduct any auction, distress, fire or bardcmptcy sale or any fictitious going out of business sale, (h) maintain its subleased premises in a clean, ordinary and sanitary condition, and (i) promptly pay all utility bills and connection fees. Maintenance and Repair Obligations. The City/Authority shall be responsible for repairing and/or replacing the structural elements of the Retail Space (i.e., exterior, roof, exterior walls, sidewalks, repairs necessitated by structural failure). The Master Lease tenant shall be responsible for all other maintenance and repair obligations (i.e., windows, doors, interior painting, floor covering, room finish, fixtures, plumbing, HVAC, electric). Insurance. Subject to the City/Authority's right to self insure, the City/Authority shall continuously maintain the following insurance with respect to the Retail Space: (a) hazard insurance to the extent of the full replacement cost of the Parking Garage (including the Retail Space) and Co) liability insurance with minimum limits of $5,000,000 per occurrence arising out of ownership, maintenance or use of the Parking Garage (including the Retail Space). The Master Lease tenant shall continuously maintain the following insurance with respect to the Retail Space: (a) liability insurance with minimum limits of $5,000,000 per occurrence arising out of the use of the Retail Space, Co) to the extent required by law, workers' compensation insurance, and (c) business interruption and/or rental loss insurance for at least a twelve month period. Casualty. If the Retail Space is damaged by fire or other casualty, the City/Authority (provided that the City/Authority receives and appropriates adequate insurance proceeds and subject to lawful appropriation by the City/Authority of funds required in addition to insurance proceeds to cover all costs and expenses) shall promptly cause such damage to be repaired or replaced, so long as the Master Lease is reasonably expected to be in effect for at least five years from the date of damage. Condemnation. If the entirety of the Retail Space (or all means of access thereto) is taken or condemned pursuant to the power of eminent domain, or by purchase under threat thereof, the Master Lease shall terminate as of the date of taking. The Master Lease tenant shall have no claim against the City/Authority as a consequence of any taking under eminent domain power or Page 14 of 16 any right to assert in any eminent domain proceeding a claim to any portion of the award or the purchase price for the value oft he unexpired term of the Master Lease. In the event of a temporary taking pursuant to the power of eminent domain that renders any part of the Retail Space unusable, the Master Lease shall not terminate, the Term shall be extended by the period of the temporary taking, and the rental payment shall abate pro-rata based upon the portion of the Retail Space rendered unusable during the period of the temporary taking. Assignment and Subletting. City/Authority shall have the full and complete right at all times to assign, pledge, encumber and/or otherwise convey any and all of its interest in the Master Lease or the Retail Space. The Master Lease shall not be assigned by the Master Lease tenant in whole or in part. The Master Lease tenant shall have the right and obligation to sublease the Retail Space, in part~ with the prior written consent and approval of the City/Authority, not to be unreasonably withheld, conditioned or delayed, to a healthy mix of retail tenants to complement the hotel, the park and the remainder of the oceanfront project but shall remain responsible for the payment of rent and for all other obligations and liabilities under the Master Lease. Alterations. The Master Lease tenant shall not alter or improve, nor cause any alterations and improvements to be made to, the Retail Space other than tenant fit-out and exterior treatments requested by the subtenants under any subleases entered into between the Master Lease tenant and its subtenants, as approved by the City/Authority. Signs; Exterior Decorations. The Master Lease tenant, and all subtenants, shall not place or maintain any sign without first obtaining the City/Authority's prior written approval thereof and all licenses, permits and approvals required by applicable governmental authorities. Subordination. The Master Lease shall be subordinate to all mortgages, deeds of trust or other security instruments placed upon the Retail Space and the Parking Garage. Pagel5of 16 EXHIBIT E BASIC USE RESTRICTIONS All businesses to be operated in the Retail Space must be compatible in nature with, and complimentary to, the construction and operation of the intended four-star approximately 300 unit hotel to be built on the tract of land across Atlantic Avenue from the Parking Garage, and any restaurants or nightclubs within the hotel. The businesses located within the Retail Space must not be directly competitive with any restaurant or nightclub operated within the hotel. The businesses must be high-quality retail compatible with a 300-room four-star hotel. The following uses and activities shall be prohibited in the Retail SPace: (a) any use which emits or results in an obnoxious odor, noise or sound which would constitute a public or private nuisance (other than reasonable emanations of cooking odors from any restaurants otherwise permitted in the Retail Space); (b) any use that is physically damaging to other portions of the Retail Space or Parking Garage or that creates dangerous hazards; (c) any laundromats; (d) any establishment selling or exhibiting pornographic material; (e) any flea-market or pawn shop; (f) any pool or billiard hall, other than incidental use of pool or billiard tables for secondary entertainment purposes provided solely to customers; (g) any video, pinball and/or amusement arcade, or similar entertainment facility; (h) any motion picture theaters; (i) any business establishment with a drive-through window; (j) any tattoo or bodypiercing or body jewelry parlors or establishments; (k) any "head shops" or businesses selling items perceived as illegal substance trivia; (I) any businesses selling exclusively tourists souvenir items and/or soft drinks, beverages, snacks or candy for off-premises consumption; and (m) any horror or fright houses. and Scttings~rbloomLLocal Settings\TcmpLrfpbid.agr4.wpd Page 16 of 16 PUBLIC COMMENT 1. Towing Advisory Board Recommendations 2. Shore Drive Transportation Study and Design Guidelines J. ORDINANCES "' ~ Ordinance to APPROPRIATE $949,000 to the FY 2001-02 operating budget of the Comprehensive Services Act (CSA) Special Revenue Fund and APPROPRIATE/TRANSFER $665,000 to the FY 2001-02 operating budget re juvenile probation Ordinance to ACCEPT and APPROPRIATE $43,024 from the State and $28,097 from the Federal Government to the FY 2001-02 operating budget of the Department of Mental Health, Mental Retardation and Substance Abuse Services re increased services to clients Ordinance to TRANSFER $200,000 within the FY 2001-02 operating budget of the Department of Mental Health, Mental Retardation and Substance Abuse (MHMRSA) re funding for facility refurbishment Ordinance to TRANSFER $142,000 within the department of Public Works' FY 2001-02 operating budget re replacement of an automated waste collection vehicle CITY OF VIRGINIA BEA CH AGENDA ITEM' TO: FROM: ITEM: The Honorable Mayor and Members of Council James K. Spore, City Manager Appropriation and Transfer of Funds as Corrective Actions for Deficit in Comprehensive Services Act Fund and Juvenile Probation Program MEETING DATE: June 4, 2002 Background: Comprehensive Services Act The City is continuing to experience fiscal shortfalls in the Comprehensive Services Act ("CSA") Fund, which the state created in 1993 to consolidate several funding streams to better provide services to emotionally troubled youth. There are four factors creating this continual deficit: 1. A rising demand for expensive residential placements of Court Services cases, which has been difficult to predict. These cases often involve severe criminal, sexual, and family behavioral problems; in these types of cases therapeutic residential care is often ordered by the Juvenile Court. Such care is quite expensive (typical annual cost of $104,000). 2. The State's underfunding for these types of cases (non-mandated), evident from six consecutive years of level state appropriations; 3. A lack of alternative services available on the continuum of care, and 4. Increases in local foster care cases in the past two years, which often require local funding from the local dedicated reserve. As a result, the City's CSA Special Revenue Fund is projected to have a shortfall of $1.45 million for FY 2001-02. As permitted by the Operating Budget, funds totaling $500,000 have already been transferred from the Reserve for Contingencies, CSA and Juvenile Probation (a dedicated reserve to address these funding issues), to pay incurred expenses through April, 2002. Juvenile Probation The City is also continuing to experience fiscal shortfalls in the Court Service Unit (Juvenile Probation), which funds services different from the CSA. These are court-ordered services for juveniles under supervision of the Court Service Unit that are awaiting trial and for some juveniles found guilty of criminal or non-criminal status offenses (e.g. truancy, curfew violation). These services include secure, non-secure outreach detention and group home services for juveniles awaiting trial and group home services after they are found guilty and sentenced by the Court. The Court controls usage of these services, and may order a child placed into any of these programs with the cost of the service being borne by the locality. There is a constant struggle to strike a balance between budgetary constraints and the Court's primary goal of maintaining a safe community. Rate increases for these services have occurred and are anticipated to continue. Predicting the amount of usage has been difficult forthe Court Service Unit. Secure detention is funded completely by the locality, whereas non-secure detention, outreach detention, and post-dispositional (after sentencing) programs are funded partly through the Virginia Juvenile Community Crime Control Act and a local maintenance of effort match. In past fiscal years, once local match funds and grant funds are exhausted, the City has provided funding in excess of the required local match to continue services to juveniles. For example, in FY 2000-01, the City spent $1,363,557, or $701,052 in excess of the local match requirement (see Attachment 1). Over the past six years, usage of non-secure and outreach detention and post-dispositional (after sentencing) services have steadily increased (see Attachment 1). For FY 2001-02, overall usage has increased compared with FY 2000-01. Admissions grew 9.6%; days increased 4.1%; cos.ts for commission services increased over 28%. As a result, Juvenile Probation is requesting $665,000 in additional appropriations to cover the increased cost of non-secure and outreach detention and post-dispositional services for juveniles under the supervision of the Court. Considerations: In an attempt to mitigate a portion of the CSA shortfall, staff have continued to pursue the following actions: · Court-ordered residential placement being issued after the completion of the evaluation process. · City staff engaging delegates and staff from other localities in a dialogue to raise their awareness of the severity of increasing funding for non-mandated cases. Staff periodically meeting with service providers to encourage the development of a supply of alternatives to expensive residential care. The City's leverage is essentially non existent, and the profit motive for residential care greatly 'exceeds that of lower levels of care. Due to a mid-year change in the eligibility guidelines, classifying therapeutic foster care cases under the Title IV-E program. This permits the City to supplant federal for local monies, with a savings of $347,000. Classifying non-mandated mental health cases as mandated School cases. Estimated annualized savings is $54,000. Council approving a new position in FY 2002 to begin a non-custodial foster care intake process. This, in effect, shifts the 100% local match requirement for these cases to 36%, which results in a projected savings of approximately $502,674 once all caseload requirements are completed and funds approved (which could take up to eighteen months from the start-up phase of this process). The hiring process for this position has taken longer than anticipated; however, an applicant was selected in March for this program and it is anticipated that the City will save $206,000 in the current fiscal year. Therefore, based on future reclassificatiOns of eleven of fourteen juvenile residential placements, substantial savings are projected to be realized in Fiscal Year 2003 and beyond. Alternatives: Development of a waiting list for CSA services for non-mandated children after expenditures reach the protected level (maximum funding level set by the State, which is $1,073,425). On March 26, a letter was sentfmm the City Manager's Office to the Chief Judge of the Juvenile and Domestic Relations Court which stated that, in light of the current economy, newly referred children will be placed on a waiting list for funding. However, this does not address the current CSA shortfall. Recommendations: Adopt proposed ordinance. Ordinance appropriates $949,000 to address the CSA shortfall ($500,000 from fund balance in the CSA Special Revenue Fund, which deletes the fund balance, and $449,000 from fund balance in the General Fund). The ordinance also makes $665,000 available to address the Juvenile Probation shortfall; $151,000 of fund balance would be appropriated from the General Fund, $435,000 would be transferred from the Reserve for Contingencies, CSA and Juvenile Probation, and $79,000 would be transferred from the General Fund, Regular Reserve for Contingencies. Attachments: Ordinance Juvenile Probation Chart, Attachment 1 CSA Expenditure History Chart, Attachment 2 Policy Report IRecommended Ac_tion: Adoption of Ordinance Submitting Depart~ent/Agency.~Cpm~unity/Policy Management Team City Manager: ~~-~ /~' ~ F:\Data~.TY~Ordin\N ONCOD E\saf y2002arf-2.wpd 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 AN ORDINANCE TO APPROPRIATE $949,000 TO THE FY 2001-02 'OPERATING BUDGET OF THE COMPREHENSIVE SERVICES ACT SPECIAL REVENUE FUND, AND TO APPROPRIATE AND TRANSFER $665,000 TO THE FY 2001-02 OPERATING BUDGET FOR JUVENILE PROBATION WHEREAS, uncontrollable trends have created a deficit in the Comprehensive Services Act Special Revenue fund, which provides services for emotionally troubled youth; and WHEREAS, over the past six years, usage of non-secure and outreach detention and post-dispositional services have steadily 'increased and have created a deficit in the Juvenile Probation budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. To address the CSA shortfall, $949,000 is hereby appropriated to the FY 2001-02 Operating Budget of the Comprehensive Services Act Special Revenue Fund, with $500,000 of this amount being appropriated from fund balance in the Comprehensive Services Act Special Revenue Fund and $449,000 being appropriated from fund balance in the General Fund, with estimated revenue increased accordingly. 2. To address the Juvenile Probation shortfall, $151,000 is hereby appropriated from fund balance in the General Fund to the FY 2001-02 Operating Budget for Juvenile Probation, with estimated revenue increased accordingly. 3. To further address the Juvenile Probation shortfall, $514,000 is hereby transferred to the FY 2001-02 Operating Budget for Juvenile Probation, with $435,000 being transferred from the CSA and Juvenile Probation Reserve for Contingencies, and $79,000 being transferred from the General Fund Regular Reserve for Contingencies. 34 35 36 37 38 Adopted by the Council of the City of Virginia Beach, Virginia on the day of , 2002. Require~ an affirmative vote by a majority of the members of City Council. CA-8489 Ordin/Noncode/csafy2002ord.wpd R6 May 28, 2002 APPROVED AS TO CONTENT APPROVED AS TO LEGAL SUFFICIENCY Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 1 .I Policy Report Comprehensive Services Act/Juvenile Probation The purpose of this report is to inform City Council of the funding shortfalls for FY 2001-02 of approximately $1,450,000 in the Comprehensive Services Act Fund and $665,000 in the Juvenile Probation Program and to provide an update and history of the CSA and Juvenile Probation Programs. These overages are due to the continuing increased cost of CSA non-mandated cases and non-secure and outreach detention and post-dispositional services for juveniles under the supervision of the Court. Brief Background of CSA: Establishment: The Comprehensive Services Act of 1993 consolidated several different categorical funding streams from the School Board, Department of Juvenile Probation, and the Department of Social Services into a single pool of funding. Services: CSA pool funds are used to provide: (1) mandated services for foster care (residential care, foster care prevention, and for foster care education); and (2) non-mandated services to Court Services and Mental Health (residential and non-residential services for pre/post dispositional cases, residential group homes services, and intensive in-home counseling services). One goal of establishing the CSA was to cap/reduce state costs. It is important to note that prior to the establishment of the CSA, the mandated funding streams were: (a) managed by the state-- that is, the funds were not appropriated to the locality; rather, the locality accessed the state pool; and (b) these funds were sum sufficient appropriations within the state budget, which meant that demand for services generated a supply of funds from the state. After the creation of the CSA, funding for mandated services changed from fully, sum sufficient to a reduced form in which the City has a Shared responsibility for cost overages. Administration: The CSA pool of funds is, by state law, managed by the Community Policy and Management Team (CPMT), which is comprised of the local agency directors for the following agencies: the Department of Social Services; Department of Public Health; Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 2 1 Community Services Board (MH/MR/SA); Department of Juvenile Probation; and the Department of Education. Also included on the team are two members appointed by the City Manager, a parent representative, and a private provider of youth and/or family services. To properly budget and manage these funds, the City established the CSA Special'Revenue Fund. Fundinq: In terms of funding CSA services, the State has historically provided approximately 64% of the cost while Virginia Beach has been responsible for approximately 36%. Cost overages in mandated services are eligible for a supplemental state reimbursement at the aforementioned match rates. Overages in non-mandated services, however, are not eligible for additional reimbursement. The state establishes a protected level of funding ($1,073,425) for these services, expenditures above which are the sole responsibility of the locality. Localities with surplus mandated funds can apply (transfer) these funds to non-mandated. Once a locality applies mandated funding to non-mandated programs, it cannot seek a supplemental reimbursement for overages in mandated funding. Brief Background of Juvenile Probation: Establishment: The Department of Juvenile Probation (also known as the Court Service Unit) is an agency of the state's Department of Juvenile Justice. Services: Specifically, pre-dispositional (before sentencing) services involve provision of secure detention by the City of Chesapeake's 100-bed Tidewater Detention Home, non-secure detention/shelter care at Tidewater Regional Group Home Commission (TRGHC)'s Crisis Intervention Home and Salem House, and outreach detention through TRGHC's Challenge Outreach and Electronic Home Monitoring Programs. Post-dispositional (after sentencing) services are provided by TRGHC through residential and non-residential services. FundinR: State funding is received through the Virginia Juvenile Community Crime Control Act (VJCCCA) to purchase pre-dispositional (before sentencing) non-secure and outreach detention and post-dispositional (after sentencing) services for juveniles under the supervision of the Court. These services are purchased from TRGHC. Under the VJCCCA, the Group Home receives the grant ($2,471,013 annually from FY 1998-99 through FY 2001-02)4 for the aforementioned services. VJCCCA funds may not be used for secure detention services. As part of the program, Virginia Beach is required to provide an annual local Maintenance of Effort of $662,505. The City's portion of expenditures is appropriated in the General Fund. ~VJCCCA funds will be reduced by 51%, or $1.26 million in FY 2002-03, further compounding the issue of insufficient resources to meet current needs. Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 3 I In a six-year period, from FY 1995-96 through FY 2001-02, the usage and cost for pre-and post-dispositional services rose significantly from 45,500 days with total city cost of $1.12 million, .to 76,800 days with total city cost of $3.82 million and VJCCCA funding of $2.47 million. 'Historically, actual expenditures for services exceed original appropriations and Juvenile Probation must approach City Council for supplemental appropriations. Trends/Driving Forces: This section highlights a significant trend in terms of demand for services as well as sheds light on changes in funding relationship (among the State, Federal, and City) and the subsequent impact on the City. Trend: The significant trend concerning the CSA budget is the rising number of expensive, non-mandated court cases. The Court Services' cases involve the triad of criminal, sexual, and family behavioral problems; the typical prescription for these types of cases is therapeutic residential care, which is quite expensive, with monthly costs ranging from $3,200 to $11,700. The average monthly cost is approximately $8,700, which ~nnualized is $104,400 per case. Court Services Residential Cases 30 ~ 25 I 20 -[ 10 5 o 95-96 96-97 97-98 98-99 99-00 00-01 '01-02 It should be noted that the Juvenile Court has very few appropriate alternatives to residential care for many of these cases. Many available alternatives of service, referred to as step-downs, such as in home counseling, out-patient services, and Group Homes are not suitable for the serious nature of many of these offenses, or do not provide a requisite level of therapeutic care. Possible appropriate alternatives such as secure facilities with a lower level of care are still not available in the market place in this area, primarily due to a lack of profitability. Fundinq: Two notable issues - A funding reduction in mandated services, and the continual under funding of non-mandated services. Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 4 J First, the General Assembly drastically reduced, in lieu of Medicaid funds, its CSA appropriation to localities. Because Medicaid savings were anticipated to benefit large Iocalitie. s in an asymmetric fashion, these same localities such as Virginia Beach received a greater'proportional reduction in appropriations. At the inception of each of the last two fiscal years, the clear consensus among City staff was that the state's initial allocation was inadequate (without the Medicaid funds) and, thus, the City would have to seek a supplemental appropriation for certain overages in mandated services. The City is not the only locality with this dilemma. Last year, approximately 96% of all localities had to request a supplemental appropriation? A similar percentage of localities is expected this year as well. It should be noted, though, that if the Medicaid reimbursement was never proposed, the City would have been responsible for the same level of funding. The other funding concern is regarding the state's habitual under funding in non-mandated services. The state sets a protected level of expenditures for Court Services and Mental Health cases. The graph below illustrates the history of CSA historical appropriations, set by the state, and expenditures incurred by the City for non-mandated services. CSA Fund Appropriations & Expenditures 3,000 2,500 -~ 1,500 I-- _c 1,000 - 500 o / /- / 95 96 97 98 99 '00 '01 '02 Appropriations Expenditures Sost overages in the non-mandated caseloads account for $880,000 of the $1,450,000 deficit. The City received a $4 million supplement for overages in mandated services. 4 Lawrence Spencer o Revised CSA Juv Prob Policy Report May 28.wpd Page 5 I Major Factors Affecting Funding: CSA There are four major driving forces affecting CSA: (1) A rising demand for residential placement of Court Services cases, which have been difficult to predict; (2) The State's under funding for these types of cases (non-mandated), which is evident by six consecutive years of level state appropriations; (3) The Juvenile Court has established a legal precedent of compelling residential placements regardless of whether the City has available funding; although residential care may be the most appropriate level of care for these specific cases, the continuation of this precedent could hinder any future flexibility for cases in which creative solutions may be possible; and (4) There are often no intermediate alternatives (step downs) available on the continuum of care. Juvenile Probation Similar forces affect Juvenile Probation: (1) an unpredictable demand for detention services, (2) Inadequate funding by the State's VJCCCA grant, (3) Juvenile and Domestic Relations Court continues to compel detention placement regardless of whether the City has available funding, and (4) rising and uncontrollable costs of services without corresponding increases in funding. The costs for services are dictated by the service providers and the City has very little discretion in controlling the cost. Service providers face little competition and are free to set rates at their discretion. Continual Staff Actions: * Any court-ordered residential placement is issued after the completion of the evaluation process. The Chair of the CPMT has issued a letter to the Chief Judge, Juvenile and DomestiC Relations Court outlining the fiscal situation under which the City is operating and has encouraged a judicious use of court compelled residential placements via a waiting list. Staff continually meeting with its legislative delegation regarding the City's financial concerns. Sfaff have periodically met with service providers to encourage the development of a supply of market place alternatives to expensive residential care. The City's Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 6 I leverage is really non existent, and the profit motive for residential care greatly exceeds that of lower levels of care. Classification of nonmandated Mental Health cases as mandated School cases. Estimated annual savings - $54,000. Due to a mid-year change in the eligibility guidelines, localities are now permitted to classify therapeutic foster care cases under the Title IV-E program. This permits the City to supplant federal for local monies with a savings of $347,000. New Position, Court Services Unit - Council approved a new position in FY 2002 to begin a Non-Custodial Foster Care Intake process. This, in effect, will shift the 100% local match requirements for these cases to 36% or a projected .annual savings of approximately $520,674 once all caseload requirements are completed and funds approved. Anticipated savings for FY 2001 -02 total $206,000. .Recommendations: Based on the preceding discussion, the City has few options regarding cost overages in the CSA Special Revenue Fund and the Juvenile Probation Program. These deficits are due to rising caseloads and increased demand for expensive residential treatments, the lack of alternative care options, and insufficient state funding. (1) Continue service delivery and transfer appropriations from other City resources to cover the FY 2002 deficits for the CSA and Juvenile Probation Programs as outlined in the June 4, 2002 agenda request and ordinance. 2) Encourage utilization of a waiting list for services for nonmandated children once expenditures reach the protected level (maximum funding level set by the State of $1,073,425. (3) Continue efforts to encourage the state to adequately fund CSA and Juvenile Probation programs and discontinue the practice of transferring costs to the localities. (4) Maximize savings potential in future years through the reclassification of appropriate non-custodial foster care cases from non-mandated to mandated. An ordinance recommending this action is scheduled for City Council approval for June 4, 2002. Lawrence Spencer - Revised CSA Juv Prob Policy Report May 28.wpd Page 7 I Robert R. Matthias Chair, Community Policy and Management Team James K. Spore City Manager Daniel M. Stone Director, Department of Social Services Bruce E. Bright Director, Virginia Beach Court Services Unit CITY OF VIRGINIA BEACH AGENDA ITEM TO: FROM: ITEM: The Honorable Mayor and Members of Council James K. Spore, City Manager Appropriation of Revenue for the MH/MR/SA Department MEETING DATE: June 4, 2002 Background' Over the course of the current fiscal year, the City's MH/MPJSA Department has received additional one-time State and on-going federal funds that have not yet been appropriated. The one-time State funds involve no ongoing expenses, and there are no FTE's associated with either funding source. Considerations: This additional funding is not included in the Department's FY 2001-02 Operating budget and thus has not been appropriated. No additional City funds are required. Public Information: Initiatives being funded with the additional revenue have been discussed at meetings open to the public, and have been approved by the Community Services Board. Public information will be provided through the normal City Council agenda process. Alternatives: These additional funds will allow the Department to meet pressing service needs. Without this funding the services would need to be provided through current appropriations, which are already designated for other services. Recommendations: It is recommended that City Council approve the following: Appropriation of $26,524 in one-time State and federal revenue to fund Substance Abuse/HIV Prevention Projects. Appropriation of $16,500 in one-time State revenue to fund technology enhancements for financial and data reporting and for video teleconferencing to support discharge planning activities with the State. Appropriation of $28,097 in Federal PATH Grant Funds to provide support services for the homeless. Attachments: Ordinance Recommended Action: Adoption of ordinance ~~~,..~.,, Submitting DeRa~ment/Agency:jDepartment of MH/MR/SA City Manager: I ",. . ,.," F:\Data~TYXOrdin\NONCODE\Ftinding for MHMRSA. arf.wpd 1 2 3 4 5 6 7 8 9 AN ORDINANCE TO ACCEPT AND APPROPRIATE $43,024 FROM THE STATE AND $28,097 FROM THE FEDERAL GOVERNMENT TO THE FY 2001-02 OPERATING BUDGET OF THE DEPARTMENT OF MENTAL HEALTH, MENTAL RETARDATION AND SUBSTANCE ABUSE SERVICES, TO PROVIDE INCREASED SERVICES TO CLIENTS 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 WHEREAS, the Virginia Beach Department of Mental Health, Mental Retardation, and Substance Abuse has received additional funding from the State and the federal government to provide enhanced mental health services to clients; and WHEREAS, no additional City funding is required to obtain the additional State and federal funding. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. That $43,024 in estimated revenue from the Virginia Department of Mental Health, Mental Retardation, and Substance Abuse Services and $28,097 in estimated revenue from the federal government is hereby accepted and appropriated to the FY 2001-02 Operating Budget of the City's Department of Mental Health, Mental Retardation and Substance Abuse for the purpose of providing increased services to the Department's clients. 2. That estimated revenue from the Commonwealth is hereby increased by $43,024 and estimated revenue from the federal government is increased by $28,097. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2002. CA-8504 Noncode~MHMRSA $43,024 & $28,097.ord May 22, 2002 Ri APPROVED AS TO CONTENT: rvi~es APPROVED AS TO LEGAL SUFFICIENCY: ~'i~[~ Attorne~/s O CITY OF VIRGINIA BEACH AGENDA ITEM TO: FROM: ITEM: The Honorable Mayor and Members of Council James K. Spore, City Manager Transfer of Appropriations Within the MH/MR/SA Department MEETING DATE: June 4, 2002 Background: The MH/MR/SA Department has rented space in Pembroke Office Park for many years. The space is in need of painting, reconfiguration, and carpeting since treatment space and waiting rooms have not been refurbished in more than seven years. Some public areas have not been painted in more than ten years, and carpet has deteriorated to the point that duct tape is being used to hold the carpet together. The estimated cost of this refurbishing is $400,000, of which the landlord will pay $50,000. The remaining $350,000 needed for the project is available within the Department's current FY 2001-02 budget, with $150,000 available in operating accounts, and $200,000 in unused personnel funds that will need to be transferred to proper operating accounts. Considerations: All funding provided by the Department for the maintenance work is from Medicaid fees and does not diminish the amount to be returned to the General Fund as a result of the hiring freeze and the 2% expenditure reduction required during FY 2001-02. The cost estimate for the project has been reviewed by the Public Works Department and has been determined to be reasonable and appropriate. Public Information: The transfer of the funds within the Department's budget has been approved at the May 23, 2002 meeting of the Community Services Board. Public information will be provided through the normal City Council agenda process. Alternatives: If the maintenance is not done, the appearance of the offices will deteriorate further. Recommendations: It is recommended that City Council approve the attached ordinance that transfers $200,000 within the MH/MR/SA Department. This funding will be combined with the $150,000 already available in appropriate accounts to perform the needed work. Attachments' Ordinance Recommended Action: Approval of ordinance Submitting Del3~'tment/Agency: Department of MH/MR/SA City Manager: I / ~×'-~'~ / F:\Data~kTY~Ordin\NONC~ODE\MRMRSA Facility Refurbishing.arf.wpd 1 2 3 5 6 AN ORDINANCE TO TRANSFER $200,000 WITHIN THE FY 2001-02 OPERATING BUDGET OF THE DEPARTMENT OF MENTAL HEALTH, MENTAL RETARDATION AND SUBSTANCE ABUSE TO PROVIDE FUNDING FOR FACILITY REFURBISHMENT 9 10 11 12 13 14 15 16 17 18 19 20 21 WHEREAS, space leased at Pembroke Office Park by the Virginia Beach Department of Mental Health, Mental Retardation, and Substance Abuse, including public areas, has not been refurbished in several years and is in need of painting, carpeting, and reconfiguration; and WHEREAS, of the $350,000 needed for the refurbishment, $150,000 is currently available in the Department's operating accounts, but $200,000 needs to be transferred from the Department's personnel accounts to its operating accounts. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $200,000 is hereby transferred within the FY 2001-02 operating budget of the Department of Mental Health, Mental Retardation, and Substance Abuse for the purpose of refurbishing space leased by the Department at Pembroke Office Park. 22 23 Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2002. CA-8503 Noncode/MHMRSA Facility Refurbishment.ord May 23, 2002 R2 APPROVED AS TO CONTENT: ~4anage~en~ Services APPROVED AS TO LEGAL SUFFICIENCY: City Attorhe~Y' s O~fice CITY OF VIRGINIA BEACH AGENDA ITEM" TO: FROM: ITEM: The Honorable Mayor and Members of Council James K. Spore, City Manager Replacement of Waste Collection Vehicle MEETING DATE: June 4, 2002 Background: On April 16, 2002, an automated waste collection vehicle was destroyed in an accident. The Department of General Services/Automotive Services Division has inspected the vehicle and determined that it is not feasible to attempt to repair it. Currently, waste collection services are being provided by a back-up vehicle which is a 1995 model vehicle that should have already been replaced. Considerations: This vehicle needs to be replaced to meet the citizens' waste collection service demands requested from the Department of Public Works. The estimated cost of the replacement vehicle is $142,000. There are sufficient funds available within the FY 2001-02 operating budget of Public Works' Waste Management Division to transfer for this purpose. Alternatives: Not replacing the vehicle will cause increased operating expenditures on the older model vehicle now being used, increased downtime, and delays in providing service. A second option could be to swap out this vehicle for one that was approved and funded for replacement in the FY 2002-03 operating budget, and delay replacement of an existing vehicle. However, this alternative is not recommended, since it could result in increased operating, maintenance and repair costs for the vehicle that is retained beyond its recommended useful life. Recommendations: Approval of ordinance to transfer $142,000 within the Public Works operating budget to replace the automated refuse collection vehicle. Attachments: Ordinance recommended Action: Approval of attached ordinance Submitting Depart~ff.,nt/Agency: City Manager' /'~- /' ~/~'- .. / · --" F:\Data~TY~Ordin\NONGO~E\W a,~ Oallactlan V~hi¢la.arf 2.wpd 1 2 3 4 5 AN ORDINANCE TO TRANSFER $142,000 WITHIN THE DEPARTMENT OF PUBLIC WORKS' FY 2001-02 OPERATING BUDGET TO FUND A REPLACEMENT AUTOMATED WASTE COLLECTION VEHICLE 6 7 8 9 10 11 12 13 14 15 16 17 18 WHEREAS, an automated waste collection vehicle was involved in an accident on April 16, 2002, and requires replacement to maintain services to residents of the City, and there are sufficient funds available within the FY 2001-02 Operating Budget of the Department of Public Works Waste Management Division to transfer for this purpose. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA, That $142,000 is hereby transferred within the Department of Public Work's FY 2001-02 Operating Budget to purchase a replacement automated waste collection vehicle. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2002. CA-8502 noncode/waste collection vehicle.ord.wpd May 21, 2002 R1 APPROVED AS TO CONTENT: /Manage~'ent] Serv'ic APPROVED AS TO LEGAL SUFFICIENCY: Ko APPOINTMENT: Virginia Beach/Jamestown 2007 Anniversary Steering Committee L. UNFINISHED BUSINESS -' M. NEW BUSINESS .... N. ADJOURNMENT .