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Home My WebLink AboutFEBRUARY 3, 2004 MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 HARRY E. DIEZEL Kempsville - District 2 MARGARET L. EURE, Centerville - District 1 REBA S. McCLANAN, Rose Hall - District 3 RICHARD A. MADDOX, Beach - District 6 JIM REEVE, Princess Anne - District 7 PETER W SCHMIDT, At-Large RON A. VILLANUEVA, At-Large ROSEMARY WILSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 CITY COUNCIL CITY COUNCIL AGENDA CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE:(757) 427-4303 FAX(757) 426-5669 E-MAIL: Ctycncl@vbgov.com CITY MANAGER - JAMES K. SPORE CITY ATTORNEY - LESLIE L. LILLEY CiTY CLERK - RUTH HODGES SMITH, MMC 3 February 2004 I. INFORMAL SESSION - Conference Room - 1:00PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION II. CITY COUNCIL BRIEFING A. ANNUAL MILITARY APPRECIATIONWEEKEND-JULY 4TH Council Members: Rosemary Wilson and Richard Maddox ill. CITY MANAGER'S BRIEFINGS A. VIRGINIA MARINE SCIENCE MUSEUM (VMSM) Exhibit Renovation Don Patterson, President, VMSM Foundation, Inc. Peter Sollogub, Principal Architect B. FIVE-YEAR FORECAST - (Status Update) Catheryn Whitesell, Director, Department of Management Services C. TAX RELIEF PROPOSED FOR THE ELDERLY Catheryn Whitesell, Director, Department of Management Services D. AICUZ INTERIM GUIDELINES Robert Scott, Director, Department of Planning E. ECONOMIC DEVELOPMENT INCENTNES PROGRAM (EDIP) Don Maxwell, Director, Department of Economic Development Robert Scott, Director, Department of Planning N. REVIEW OF AGENDA ITEMS V. COUNCIL LIAISON REPORTS VI. CITY COUNCIL COMMENTS VII. FORMAL SESSION 6:00 P.M. A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. INVOCATION: Reverend Ken Wood Pastor, Holy Spirit Catholic 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. SPECIAL SESSION 2. INFORMAL AND FORMAL SESSIONS January 20,2004 January 27,2004 G. AGENDA FOR FORMAL SESSION H. CONSENT AGENDA I. ORDINANCES/RESOLUTION 1. Ordinance to ACCEPT a gift of DVD production equipment and services from Nightingale Regional Air Ambulance for use by the Fire Department to enhance training capabilities. 2. Ordinance re City Council Policy and Procedures for review and consideration oflocal property tax exemption by designation and requirements for retention by tax exempt entities. 3. Resolution to REDEFINE the mission of the Shore Drive Advisory Committee (SDAC). J. APPOINTMENTS BOARD OF BUILDING CODE APPEALS - PlumbinglMechanical COMMUNITY POLICY and MANAGEMENT TEAM - CSAAT-RISK YOUTH COMMUNITY SERVICES BOARD - CSB FRANCIS LAND HOUSE BOARD OF GOVERNORS HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE - HREDA HUMAN RIGHTS COMMISSION MINORITY BUSINESS COUNCIL OPEN SPACE COMMITTEE PARKS and RECREA nON COMMISSION PUBLIC LIDRARY BOARD SENIOR SERVICES OF SOUTHEASTERN VIRGINIA - SEV AMP TIDEWATER REGIONAL GROUP HOME COMMISSION TOWING ADVISORY BOARD VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION -VBCDC WETLANDS BOARD K. UNFINISHED BUSINESS L. NEW BUSINESS M. ADJOURNMENT ** * * * * * * * * 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) *********** Agenda 02/03/04st www.vbgov.com MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 3 February 2004 Mayor Meyera E. Oberndorf called to order the INFORMAL SESSION of the Virginia Beach City Council in the City Council Conference Room, City Hall, on Tuesday, February 3,2004, at 1:05 P.M Council Members Present: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Rosemary Wilson and James L. Wood Council Members Absent: Ron A. Villanueva [Entered: 1 :05 P.M.] -2- ITEM # 52171 Mayor Meyera E. Oberndorf entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.1-344(A), Code of Virginia, as amended, for the following purpose: PERSONNEL MA TTERS: Discussion, consideration or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees pursuant to Section 2.2-3711 (A) (1). To Wit: Appointments: Boards and Commissions: Board of Building Code Appeals Community Policy and Management Team Community Services Board Francis Land House Board of Governors Hampton Roads Economic Development Alliance Human Rights Commission Minority Business Council Open Space Committee Parks and Recreation Commission Public Library Board Senior Citizens of Southeastern Virginia Tidewater Regional Group Home Commission Towing Advisory Board Virginia Beach Community Development Corporation Wetlands Board Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council voted to proceed into CLOSED SESSION. Voting: 10-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Ron A. Villanueva (1:00 P.M.-1:35 P.M.) February 3, 2004 - 3 - CERTIFICATION OF CLOSED SESSION ITEM # 52172 Upon motion by Councilman Schmidt, seconded by Vice Mayor Jones, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. 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, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 RESOLUTION 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 # 52172, page 3, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3711 (A) 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. ~.~ A.. th Hodges ith, MMCA City Clerk ~ February 3, 2004 -4- CITY COUNCIL BRIEFING ANNUAL MILITARY APPRECIATION WEEKEND - JULY 4TH 1 :36 P.M. ITEM # 52173 Council Members Wilson and Maddox referenced the proposed First Annual Military Appreciation Weekend, "A Salute to our Service Men/Women and their families", who have served in action in Afghanistan/Iraqi". Council Lady Wilson introduced the representatives: Ira M. Agricola Senior Vice President Hampton Roads Chamber of Commerce Maryellen Baldwin Executive Director Navy League Hampton Roads Jeff Hill President USO Hampton Roads Bill Douthat President Whisper Entertainment Consultants, Inc. Ira M Agricola, Senior Vice President - Hampton Roads Chamber of Commerce, advised the usa, Navy League and Chamber are proud to support this event recognizing military service members and their families. This event will enhance the image of Virginia Beach as a family vacation destination, Mr. Agricola is committed to working on this project with the City to see it through to fruition. As Virginia Beach is one of the most patriotic cities in the Region and the United States, the Military Appreciation Weekend will be successful. Jeffrey M Hill, President and Chief Executive Officer, usa of Hampton Roads, advised the Virginia Beach Military Appreciation Weekend would be a great opportunity to partner with the City of Virginia Beach to bring a fun-filled weekend of music and military games for the Military in the Hampton Roads area. Two (2) of the Senior Vice Presidents of usa of Hampton Roads were very impressed with this concept, All branches of the Military are involved. The Coast Guard, also representative of Homeland Defense, is a very important representative. Bids have been issued to secure the services of ALABAMA for the Friday, July 2,2004, night entertainment event. The services of Daryl Hall, John Oates and Michael McDonald have been requested for the Sunday, July Fourth, entertainment. Anita Baker, Rhythm and Blues singer, will be sought as the primary Headliner for Saturday, July 2, 2004. Rear Admiral S. A. Turcotte, Us. Navy, Commander- Navy Region Mid-Atlantic, has advised of his support to assist co-ordinating military static displays, demonstrations and publicity for the weekend events through the military media outlets. In the event of rain, the Navy Morale, Welfare and Recreation staffhave offered a spectrum of choices, Oceana and Little Creek are located in Virginia Beach. There is a possibility for the utilization of Hangers, the 55,000 square-foot Rockwell Hall or a 2, OOO-seat theatre at Little Creek. The Military might assume the duties of the Friendship Patrol during the weekend. The representatives will be requesting additional Military Police and Shore Patrol. February 3, 2004 - 5 - CITY COUNCIL BRIEFING ANNUAL MILITARY APPRECIATION WEEKEND - JULY 4TH ITEM # 52173 (Continued) Maryellen Baldwin, Executive Director, Navy League Hampton Roads, advised they have approximately $160,000 pledged as sponsorships Bill Douthat, President, Whisper Entertainment Consultants, advised various groups representative of the younger generation which the Navy League and USO are attempting to secure through the assistance of the Point Radio Station and Modern Rock Station 1834. Police Chief A.M Jacocks is a Commander in the Naval Reserve and a military advocate; however, from his civilian standpoint, last July Fourth, the City was in total "gridlock" at the Resort. Traffic was backed up at one point on 1-264 to Rosemont Road. Thefireworks this year will be at Mount Trashmore, but police resources must be pulledfrom the Oceanfront to stafJthe Fireworks event. Chief Jacocks expressed concern from a public safety standpoint. Chief Jacocks would hope to have additional assistance from the Military Police and Shore Patrol relative traffic control and the organization of crowds at the shuttle parking sites. However, the Military Police powers of enforcement are essentially limited to the Military personnel's behavior at the Resort. Police assistance from the State and neighboring cities would be difficult, due to lack of personnel and resources. Chief Jacocks advised last July Fourth, $282,000 was expended in overtime, with 2,881 hours of Compensation Time accrued by those who did not choose overtime pay. The day of the Fireworks, thirty three (33) detectives were pulled away from their investigations to supplement the stafJ on the street. Based on the projections for this event, July 4, 2004, one hundred forty-four (144) detectives would be transferred from their investigations to the Resort for the three days of the event. A grand total of overtime expenditures with fringes would be approximately $450,655 plus over 3,000 hours of compensation time. If these compensation time hours are shifted to overtime pay, then the overtime expended is approximately $65,000 more. Chief Jacocks advised he had not attended any meetings of the representatives involved in the Military Appreciation Weekend. Councilman Maddox advised the parking and Shuttle service charge would be $10.00 per day/per car. Chief Jacocks said the shuttle site would be located at Camp Pendleton which has a capacity of three thousand (3,000) cars. Ifit rains, Camp Pendleton can only handle two hundred (200) cars, The City Manager advised $200,000 would be derived from the Tourism Advertising Fund, and there would be an advance from the General Fund Reserve, to be reimbursed by sponsorships, The total expenses would be approximately $832,700. Councilman Maddox believes the concept should be contingent upon the hotel industry providing 4500 discounted room nights. James B. Ricketts, Director - Convention and Visitors Development, advised relative Satellite Parking, transporting would involve approximately 2- Y2 hours. There are also two major events being held during the Fourth of July weekend, the Pentecostal Conference of North American Indians, and the Indoor Field Hockey Tournament. These events would entail over 7,000 room nights throughout the City, February 3,2004 - 6- CITY COUNCIL BRIEFING ANNUAL MILITARY APPRECIATION WEEKEND - JULY 4TH ITEM # 52173 (Continued) Councilman Villanueva suggested the event be scheduled for another date. Council Members Schmidt and Wood suggested a shoulder season weekend between Labor Day and Neptune Festival, which would provide the planners additional time. Council Lady Eure noted this celebration of the Military would not be feasible every Fourth of July, therefore, a weekend should be chosen as Military Appreciation Weekend. Mr. Ricketts suggested September as a possible date for the event. Vice Mayor Jones believes inclement weather often occurs in September and suggested between the Fourth of July andfirst weekend in September (i.e, July 31,2004, August 1 and 2,2004) Mr. Ricketts will review the tourism and even late Spring schedule. All the alternatives will be reviewed. The Military Appreciation Weekend - July 4th Event shall be scheduled for further discussion and direction during the City Council Session of February 10,2004. February 3, 2004 - 7 - CITY MANA GER 'S BRIEFING VIRGINIA MARINE SCIENCE MUSEUM (VMSM) Exhibit Renovation 3:29 P.M. ITEM # 52174 Don Patterson, President - Virginia Marine Science Museum (VMSM) Foundation, Inc., advised the Virginia Marine Science Museum is a "gem" and that "gem" cannot be neglected. The Museum, with an average of 600, 000 annual attendance, is an incredible spoke in the hub of Virginia Beach. The Museum is also a family friendly aquarium and marine center. This organization represents an extraordinary educational vehicle: conservation, research and rescue, The Museum has 1,000 volunteers which equates to approximately $1-MILLION annually. The Foundation authorized $150,000 to engage Don and Janet Craig, fund raisers for the Chrysler Museum, to provide an internal review and feasibility study and also secured the services of Peter Sollogub, Principal Architect, ChermayefJ, Sollogub and Poole. The three components of the renovation entailed: Pedestrian Overpass: Traversing General Booth Boulevard, a symbol and designed at no charge by Peter Sollogub. Renaissance: Renovation of the existing building and exhibits, creating a new excitement Animal Care Annex: Associated with stranding Peter Sollogub, Principal Architect, ChermayefJ, Sollogub and Poole, advised this institution is in need of repair with the majority of exhibits being in excess of 20 years old. The first phase of the Virginia Marine Science Museum was constructed in 1985 and opened in 1986. Mr. Sollogub referenced ChermayefJ, Sollogub and Poole are currently involved in the third major expansion of the National Aquarium in Baltimore. The $16-MILLION, 6,000 square foot Australian Habitat will open in Spring 2005. The waterfall housed in the Aquarium will be the highest waterfall in the State of Maryland. ChermayefJ, Sollogub and Poole designed the Tennessee Aquarium in 1992, and they are now involved in their third expansion. The expansion will involve a Gulf Tank equating to approximately 4,000 square feet. Thirty-five Million years ago a meteor, traveling 76,000 miles per hour hit Hampton Roads, which changed the earth forever. This will be introduced as an initial experience for the Museum. There will be a tour following the "Journey of Water". The Upland River gallery will be enhanced with moving water and waterfalls. The next exhibit will be the Fall Zone. The Fall Zone divides the State commencing in Fredericksburg and moving north to south. Species such as the Sturgeon can be introduced in a living habitat. There will be a corridor depicting the Chesapeake Bay Bridge Tunnel. The Chesapeake Bay Tide Pool, with a minor amount of resources, can be changed and become much more natural, allowing the staff to operate programs in the future. The Chesapeake Bay Aquarium is 60,000 gallons and will be enhanced with sound and graphic. The Ray Touch Tank is alive with screams of noise and excitement from kids of all ages and will be included as part of the Exhibit tour. The "Forces of Change" Exhibit will be the next event. Dante, Virginia, 300-MILLION years ago was a tropical rain forest. This environment exists today in Malaysia. Utilizing aquarium tanks, this swamp will be depicted with fantastic creatures installed overhead as the Binturong, in the foliage. Saltville, Virginia, 400-MILLION years ago, was a scorching desert on the edge of a sea, similar to te Mediterranean Sea/Sahara Desert, which exists today. Creatures such as the Mongose will be introduced. February 3,2004 -8- CITY MANA GER 'S BRIEFING VIRGINIA MARINE SCIENCE MUSEUM (VMSM) Exhibit Renovation ITEM # 52174 (Continued) Culpeper, Virginia, 400-MILLION years ago, was completely under the ocean. The ocean was comprised of rifting plates as those of the Red Sea. The World's most extraordinary fish exist in this area. The second largest aquarium will be a part of this exhibit and house fish as the Regal Angelfish. Mount Rogers, Virginia, 500-MILLION years ago was volcanic. Komodo Island is similar. The Komodo Dragon is one of the key creatures on this island. The exhibit will be elevated and at eye level. Don Patterson advised the City funding would be $8.2 to $8.5-MILLION $5.8-MILLION (as a starter) would be required from the Virginia Marine Science Museum Foundation; however, the Foundation is committed to exceeding this amount. Hopefully, the Foundation can raise $15-MILLION to build an endowment. Mr. Patterson stated the first phases should be the Pedestrian Overpass, Renaissance and Animal Care Annex. Lynn Clements, Director - Virginia Marine Science Museum (VMSM), advised $300,000 is being requested in the FY 2004-2005 Operating Budget, to begin the infrastructure needs for the renovation and then $2. 7-MILLION will be requested in FY 2005-2006. The annex would be delayed because of complexities. The Pedestrian Overpass would encompass a cost of approximately $2-MILLION The Annex is estimated at a cost of $3.2-MILLION The sources from which the City's funding will be derived and additional operational costs shall be provided. Ms. Clements advised the Museum is a special revenue account and will provide funds to cover operating costs, Mr. Patterson advised 83% of the Museum's existing operating costs are now covered by their own receipts. The City Manager recommended the Museum's renovations be considered in March and April with the FY 2004-2005 Resource Management Plan. February 3,2004 -9- C IT Y MANA G E R 'S B R IE FIN G AICUZ INTERIM GUIDELINES 4:38 P.M. ITEM # 52175 Robert J. Scott, Director of Planning, advised the City Council (on December 9, 2003), ADOPTED a Resolution establishing the Task Force on Land Use in Air Installations Compatible Use Zones (AICUZ) One of the duties of the Task Force was to develop interim policies governing applications for land development which the Navy felt would be incompatible withjlight operations. This Task Force met at 9:00 A.M this morning, February 3, 2004, and has recommended to City Council Interim Guidelines governing applications for development in Air Installations Compatible Use Zones (AICUZ), Mr. Scott distributed a list of applications deferred by City Council and the Planning Commission, as well as those submitted to the Planning Commission but voluntarily on-hold. The proposed Interim Guidelines and a map depicting the location of the proposed applications was also distributed. Two of the applications are scheduled for the City Council Session of February 10, 2004: Application of HOME ASSOCIATES OF VIRGINIA, INC.for a Change ofZoninf! District Classification from AG-2 Agricultural District to Conditional R-7.5 Residential District at 960, 964 and 966 Old Dam Neck Road. (DISTRICT 7 - PRINCESS ANNE) Applications ofF. DONALD REID at 3592 Indian River Road. (DISTRICT 7 - PRINCESS ANNE) a. Variance to ~ 4.4(b) of the Subdivision Ordinance that requires all newly created lots meet all the requirements of the City Zoning Ordinance (CZO) and to allow aforty-five (45) foot lot subdivision with open space and walking trails in the Transition Area b. Change of Zoning District Classification from A G-1 and A G-2 Agricultural Districts to Conditional R-20 Residential District c. Conditional Use Permit re Open Space Mr. Scott referenced certain sections of the Interim Guidelines. Guidelines (a) Infill development on tracts or parcels of less than ten (10) acres, where all of the following conditions are present should be considered by the Planning Commission and City Council in the normal course and should be decided on the merits of the application: (1) the existing zoning is unreasonable; (2) the requested action would give rise to development substantially similar to that on surrounding properties; and (3) the requested use is the least intensive necessary to achieve consistency with the surrounding properties. February 3, 2004 -10 - C IT Y MANA G E R 'S B R IE FIN G AICUZ INTERIM GUIDELINES ITEM # 52175 (Continued) (b) Development proposals of property (wholly or partially) located in AICUZ areas and not meeting the criteria set forth in subsection (3) (a) above should be considered by the Planning Commission and City Council in the normal course and should be decided on the merits of the application where all of the following conditions are present: (1) the property is not located, wholly or partially, within an Accident Potential Zone; (2) the development proposal represents the lowest reasonable density or intensity for the property, given its location and surrounding land uses; (3) the property is not located, wholly or partially, within a noise zone greater than 70 dB Ldn (except where the uses proposed are deemed compatible with their location in such noise zone pursuant to Section 221.1 of the City Zoning Ordinance); and (4) all appropriate noise attenuation measures specified by Section 221.1 of the City Zoning Ordinance are provided. (c) All other applications should be deferred by the Planning Commission or City Council, as the case may be, pending completion of the Joint Land Use Study. Application (a) These guidelines govern the procedural aspects of discretionary development applications (i,e, applications for rezonings, conditional zonings and conditional use permits requiring hearing by the City Council and Planning Commission) pertaining to property located wholly or partially within anAir Installations Compatible Use Zone (AICUZ), except for those applications which have been filed with the Department of Planning as of February 3, 2004. (b) These guidelines do not apply to the review of subdivision plats, site plans or other forms of review of proposed developments not requiring the approval of the City Council nor to applications for discretionary approvals on property entirely outside of an AICUZ area. February 3, 2004 - 11 - C IT Y MANA G E R 'S B R IE FIN G FIVE-YEAR FORECAST (Status Update) 4:55 P.M. ITEM # 52177 Catheryn Whitesell, Director of Management Services, referenced the Five Year Forecast presented to City Council and the Virginia Beach School Board on November 18, 2003. Ms, Whitesell summarized the changes in the City's Five Year Forecast. Caveats to Today's Update Two months to go in the process - a lot will change The General Assembly will not complete their work until March 13th School Board budget is being presented tonight, February 3, 2004 BUDGET AND CIP WILL BE BALANCED! Changes Since November Revenue Adjustments $.5-5 MILLION in Real Estate Tax Revenue $1. 7-MILLION for Detention Center $2.0-MILLION less in 599 Funding $1.1-MILLION in State and Federal Revenue related to human service programs $1.0-MILLION in fees and other local revenue Expenditure Adjustments: $6.0-MILLION for mandated VRS increase $2.0-MILLION less for continuation of Life Insurance "Holiday" $2.6-MILLION in increased cost of current services Updated Five Year Forecast Projected General Fund to Maintain Current Services FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 November - $10.3 million - $4.0 million - $2.4 million - $5.0 million - $8.3 million February - $ 9.6 million - $3.4 million - $3.6 million - $1,7 million - $1.0 million February 3,2004 -12 - C IT Y MANA G E R 'S B R IE FIN G FIVE-YEAR FORECAST (Status Update) ITEM # 52177 Total Revenues are now projected to grow by 5,8% and 5.1 % over the forecast period (was 4% and 4.6%), with the majority of the growth still in the Revenue Sharing Formula The City/School Revenue Sharing Formula would now provide Schools with $28- MILLION in new funds (was $19.3-MILLION) Federal revenues will grow by 4% and State revenues will grow by 4.6% (was 4% and 4.3% respectively) Policy Choices (not included in Figures) Elimination of Sandbridge TIF and lowering of the Special Service District Tax from 12 ~ to 9~ (TIF revenue equals $4. 6-MILLION in FY 2005) Emergency Response System recommendations (FY 2005 cost $3-MILLION to be covered by new revenue) Replacement of Police Firing Range (estimated FY 2005 cost $2-MILLION and roughly $l-MILLION each year thereafter) Real Estate Tax Relieffor the Elderly (estimated FY 2005 cost $1. 75-MILLION and increases to $4.5 by FY 2009) Old Beach Plan Norfolk and Southern Right-of Way Bus Rapid Transit Ms. Whitesell advised there will be a lot of changes to both the revenues and expenditures between now and the presentation of the Resource Management Plan on March 30, 2004. Both the Capital Improvement Program and the Operating Budget will be balanced. This year will be about priorities and choices. February 3,2004 - 13- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL February 3, 2004 6:00 P.M. Mayor Meyera E. Oberndorfcalled to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, February 3, 2004, at 6:00 PM, Council Members Present: Harry E. Diezel, Margaret 1. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A, Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A, Villanueva, Rosemary Wilson and James 1. Wood Council Members Absent: None INVOCATION: Reverend Ken Wood Pastor, Holy Spirit Catholic Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accountingfirm of Goodman and Company and is directly and indirectly involved in many of Goodman and Company's transactions, However, due to the size of Goodman and Company and the volume of transactions it handles in any given year, Goodman and Company has an interest in numerous matters in which her husband is not personally involved and ofwhich she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifYing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council, Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter of January 27,2004, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a real estate agent affiliated with Prudential Decker Realty. Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifYing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes ths disclosure. Council Lady Wilson's letter of January 27,2004, is hereby made a part of the record. February 3,2004 - 14- Item V- F.1. MINUTES ITEM # 52178 Upon motion by Councilman Reeve, seconded by Councilman Wood, City Council APPROVED the Minutes of the SPECIAL SESSION of January 20, 2004, INFORMAL and FORMAL SESSIONS of January 27, 2004. Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 - 15 - Item V-G. ADOPT A GENDA FOR FORMAL SESSION ITEM # 52179 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION February 3, 2004 - 16- Item V-G. 1. MAYOR'S INTRODUCTION ITEM # 52180 Mayor Oberndorf introduced the Naval Air Station Ocean Torch Club (affiliated with the Boys and Girls Clubs) J. J. Moore and Cathy Mead Leaders Hector Reyes J. T. Newville Kharlton Belmar Steven Budaszewski Lamar Whitehurst Katie Soles Tiffany Daniels Rebecca Crumb Bree Torres Hayley Chapman Andrew Gordon February 3, 2004 - 17- Item V-G.2. MAYOR'S INTRODUCTION ITEM # 52181 Mayor Oberndorf introduced the Boy Scout in attendance to earn his Citizenship in the Community Merit Badge: BOY SCOUT TROOP 443 Sponsored by The Church of Latter Day Saints Scout Master Lyle Spain February 3, 2004 I - 18- Item V-G.3. MAYOR'S INTRODUCTION ITEM # 52182 Mayor Oberndorf introduced: Leadership Development Skills Class Bayside High School Advisor Christopher Felton Bayside High School will be celebrating its Fortieth Anniversary. February 3, 2004 I 1 2 3 4 5 6 7 AN ORDINANCE TO ACCEPT A GIFT OF DVD PRODUCTION EQUIPMENT AND SERVICES FROM NIGHTINGALE REGIONAL AIR AMBULANCE WHEREAS, Nightingale Regional Air Ambulance has agreed to 8 donate DVD production equipment and services to the City of 9 Virginia Beach. 10 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 11 OF VIRGINIA BEACH, VIRGINIA: 12 That a gift from Nightingale Regional Air Ambulance of DVD 13 production equipment and services valued at approximately 14 $1,800.00 is hereby accepted, and this equipment will be made 15 available to the Fire Department for use in producing training 16 materials. 17 18 Adopted by the Council of the City of Virginia Beach, 19 Virginia on the 3rd day ofFebruar~ 2004 CA-9100 Ordin/Noncode/acceptgift.doc R2 January 22, 2004 Approved as to Content Approved as to Legal Sufficiency - 20- Item V-L2. ORDINANCES/RESOLUTION ITEM # 52184 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED: Ordinance re City Council Policy and Procedures for review and consideration of local property tax exemption by designation and requirements for retention by tax exempt entities. Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E, Oberndorf, Jim Reeve, Peter W Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 1 AN ORDINANCE TO ADOPT A POLICY AND PROCEDURES 2 FOR THE REVIEW AND CONSIDERATION OF 3 APPLICATIONS FOR EXEMPTION FROM LOCAL PROPERTY 4 TAXES AND A REQUIREMENT FOR RE-APPLICATION BY 5 TAX-EXEMPT ENTITIES 6 7 8 WHEREAS, the Constitution of Virginia and the Code of 9 Virginia provide that certain nonprofit organizations may apply to 10 the local governing body for exemption from local property taxes; 11 WHEREAS, the consideration of such applications is 12 important to the City Council, since any exemption from property 13 taxes will directly affect City revenues; 14 WHEREAS, guidelines have been developed that establish 15 criteria for such applications, along with a process to consider 16 such applications; and 17 WHEREAS, the City Council wishes to provide for 18 continuing oversight of these exemptions, and to require entities 19 exempt from property taxation by designation to re-file 20 applications every three (3) years with the local assessing 21 officers. 22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE 23 CITY OF VIRGINIA BEACH: 24 1 . That City Council hereby adopts the attached policy 25 regarding applications for tax exemption by designation. 26 2 . That any entity owning real and personal property 27 that is exempt from taxation by designation shall file triennially 28 an application, in the manner provided for by City Council policy, 29 as a requirement for retention of the exempt status of the 30 property. Every entity exempted prior to January 1, 2004, shall 31 file an application for retention of its exemption no later than 32 November 1, 2006, and triennially thereafter. Every entity 33 exempted after January 1, 2004, shall file its application for 34 retention of its exemption within three (3) years of the effective 35 date of its exemption from taxation, and triennially thereafter. 36 Adopted by the Council of the City of Virginia Beach, 37 Virginia on the 3rd day of February , 2004. CA-8643 ORDIN\NONCODE\Local Tax Procedure ord.wpd R4 January 16, 2004 APPROVED AS TO LEGAL SUFFICIENCY: ~[~4? 2 City Council P ollcy Title: City Council Policy Regarding Applications for Tax Exemption by Designation Index Number: Date of Adoption: 02/03/04 Page 1 of 3 Date of Revision: 1.0 Purpose and Need Purpose: To establish criteria for approval of resolutions by the City Council supporting legislation to exempt, by designation, local nonprofit organizations from real and personal property tax. Need: City Council has requested guidance as to criteria for considering exemptions as well as a procedure for reviewing requests for exemptions from local property taxes. Legislative Background: The Virginia Constitution provides that, after January 1,2003, local governments may, by designation, exempt the real and personal property of nonprofit organizations from local property taxes if used exclusively for religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes. However, as provided in Virginia Code ~ 58.1-3651, the local governing body must adopt an ordinance to exempt the property. 2.0 Policv The City Council is not required to designate any organization as being exempt from taxation, and every designation of an organization is conditioned upon compliance with the terms of this policy and any ordinance granting the exemption. If an organization does not comply with these requirements, the City Council may revoke the tax exemption after providing notice and a hearing to the organization,. Any revocation of an exemption shall be effective at the beginning of the tax year during which the revocation occurs. City Council shall be provided detailed information by the applicant or a representative of the applicant necessary to determine the benefits to the public that will result from granting the tax exemption. In considering applications, the City Council shall employ the following guidelines: 1 . The organization (or an affiliated organization) must currently own property in Virginia Beach. 2. The organization's property taxes must represent a significant burden, at least either $250 or more annually or 5 % or more of its expenditures for last fiscal year (whichever is greater). 3. Exempt personal or real property cannot be used by any member of the organization or other persons except for the purposes designated by the City Council. 4. The organization must be exempt from federal income tax pursuant to IRC ~ 501 (c), and upon obtaining exemption, must annually submit (by July 1 of each year) its IRS Forms 990 and 990EZ to the Commissioner of the Revenue. If not required to file 990 or 990EZ returns, then the organization must annually certify its continuing tax exempt status, Loss of 501 (c) status must immediately be reported to the Commissioner of the Revenue and the City Attorney, and is grounds for revocation of tax exempt status. Title: City Council Policy Regarding Applications for Tax Exemption by Designation Index Number: Date of Adoption: 02/04/04 I Date of Revision: Page 2 of 3 5. Pursuant to Virginia Code ~ 58.1-3605, each entity exempted from local property taxes shall, every three years, file an exemption application with the Commissioner of the Revenue as a requirement for retention of the exempt status of the property. The application form shall be approved as to form by the City Attorney. The Community Organization Grant Committee shall review the applications and make recommendations to the City Council about any organizations that it believes should no longer be exempt. 6. No requests for retroactive grants of tax exemption shall be considered or granted. 7. The City Council will only consider applications from organizations in compliance with all City ordinances and regulations (including but not limited to building, property maintenance and zoning codes) and all local tax obligations. 8. With real property, exemptions shall only apply to properties listed on the organization's application and referenced in the ordinance adopted by the City Council. 9. Exemptions, as well as any departure from these guidelines, shall require approval by three-fourths (3/4) of the members of the City Council. 3.0 Procedure to Accomplish Policy 1 . Organizations applying for exemption must request a written determination from the Commissioner of the Revenue and the Real Estate Assessor as to whether the organization is or may be tax-exempt by classification, pursuant to Article 2 (~58.1-3606 et seq) or Article 3 (~58.1-3609 et seq.) of Title 58.1 of the Virginia Code. If the organization is not exempt, but meets the criteria of organizations that can be exempted by designation (see Virginia Code ~ 58. 1-3651), the organization will receive an application form from the Commissioner of the Revenue. The application form shall request all information required by Virginia Code ~ 58.1-3651 and be approved as to form by the City Attorney. 2. Applications for exemption shall be considered once annually. Each year, new applications for exemption must be submitted to the City Attorney by November 1. The City Attorney will review the application for completeness, and the tax information in the completed application will be reviewed for accuracy by the Commissioner of the Revenue. By December 1, the applications will be given to the Community Organization Grant ("COG") committee for its review. By February 15th, the COG committee shall make its recommendations in writing to the City Council as to whether each application should be approved or denied. 3. After review by the COG committee, the applications will be advertised for a public hearing and consideration by the City Council. Each applicant shall pay the costs of such advertisement. By May 1, the City Council will then conduct a public hearing and consider the criteria set forth in Virginia Code ~ 58.1- 3651 and the recommendations of the COG committee. Any exemptions granted shall be effective as of the next July 1 5t. 4.0 Responsibility and Authority Responsibility for the final determination of the public benefits resulting from tax exemption shall rest exclusively with the City Council. Responsibility for initial contact with taxpayers, supplying applications and verifying tax information on submitted applications shall be with the Commissioner of the Revenue. Responsibility for reviewing applications for completeness and preparing required ordinances, advertising public hearings and placing items on the City Council's agenda for a vote on proposed exemptions shall rest with the City Attorney. Title: City Council Policy Regarding Applications for Tax Exemption by Designation Index Number: Date of Adoption: 02/04/04 Date of Revision: Page 3 of 3 5.0 Definitions BENEFIT TO THE PUBLIC - Any benefit or advantage expected to be realized by the public, whether tangible or intangible, which may accompany the tax exemption. LOCAL PROPERTY TAXES - Ad valorem taxes levied by the City of Virginia Beach on real estate or tangible personal property. 6.0 Specific ReQuirements In addition to the procedures and responsibilities set forth in paragraphs 3.0 and 4.0, respectively, documentation forwarded to the City Council shall include submission of an application form in form and substance substantially as presented in the attached Exhibit A, as well as any additional information that the applicant wishes to present to the City Council. Approved as to Content: I, ~/, ~ Date 1- 2/ -ttJ 'I Date Approved as to Legal Sufficiency: ~cx~ City' tto ey .. L ~ ~:/&;I Reviewed by: lJ'{J1z, 4 Item Number 4~~ 9'~~~ I Date F :\Users\lSpencer\ Wp\ W ork\taxexemptpolicydesign. wpd - 21 - Item V-L3. ORDINANCES/RESOLUTION ITEM # 52185 Upon motion by Vice Mayor Jones, seconded by Councilman Wood, City Council ADOPTED: Resolution to REDEFINE the mission of the Shore Drive Advisory Committee (SDAC) Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. OberndorJ, Jim Reeve, Peter W Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 1 Requested by Councilmember James L. Wood 2 3 4 5 6 A RESOLUTION REDEFINING THE MISSION OF THE SHORE DRIVE ADVISORY COMMITTEE 7 WHEREAS, in February of 1998, pursuant to Resolution No. 8 98-2578, the City Council established the Shore Drive Advisory 9 Committee (the "Committee"); and 10 WHEREAS, the purpose of the Committee has been to serve 11 in an advisory capacity to City Council with respect to 12 development and improvement to the Shore Drive Corridor, 13 specifically: 14 (1) to familiarize itself with the Urban Land 15 Institute's Bayfront Study and the various ussies associated 16 with development of the Corridor; 17 (2 ) to develop an aesthetics and urban design plan for 18 the Corridor using the Bayfront Study as a foundation for such 19 plan; 20 (3) to identify a series of recommended projects and 21 actions to implement the aforesaid aesthetics and urban design 22 plan, and to prioritize such projects and plans; 23 (4) to facilitate the establishment of public-private 24 partnerships to achieve the goals and recommendations of the 25 Urban Land Institute's Bayfront Study and the Committee; 26 (5) to investigate alternative funding sources for 27 projects within the Corridor; 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 (6) to enage in public information efforts regarding the Committee's work and efforts; and (7) to monitor the progress of those projects and plans which are implemented; and WHEREAS, the Committee has accomplished many of the duties and responsibilities initially assigned to it by the City Council; WHEREAS, the role of the Committee has evolved such that it has become a forum for informal review of, and information concerning, public and private development and improvement projects being undertaken in the Shore Drive Corridor; and WHEREAS, it is appropriate that the specific duties and responsibilities previously assigned to the Committee by the City Council be redefined to reflect its evolving role and function for the Shore Drive community. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That, in addition to all of the Committee's ongoing specific duties and responsibilities assigned to the Committee pursuant to resolution No. 98-2578, the mission of the Committee shall also include serving as a liaison between the Shore Drive community and the City Council. In fulfilling this mission, the Committee shall be charged with the following additional duties and responsibilities: 2 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 1. To continue to identify, refine and reprioritize a series of recommended public projects and actions to the City Council for implementing the ULI Bayfront Study recommendations, the adopted Shore Drive Corridor Plan, Shore Drive Transportation Plan, Design Guidelines and Landscaping Guidelines, and addressing issues associated with development of the Corridor; 2. To aggressively pursue and facilitate the establishment of public-private partnerships to achieve the goals and recommendations of the ULI Study and adopted plans and guidelines; 3. To engage in public information efforts to improve communication between the Shore Drive community, the development community, and the City government and to serve as a forum for discussion of information brought forth by both the public and private sectors on matters related to the Shore Drive community; and 4. To monitor and report to the City Council the progress of implemented public projects and plans within the Shore Drive Corridor, and provide recommendations for remedial actions as deemed necessary. 3 76 Adopted by the Council of the City of Virginia Beach, 77 Virginia, on the Third CA-8833 wmm\ordres\sdacres.doc R-3 January 28, 2004 APPROVED AS TO CONTENT: ~ \ .~1.1)~ Plannin~epartment day of February, 2004. APPROVED AS TO LEGAL SUFFICIENCY: wb /~ IU City Attar ey's Offlce 4 Item V-K.1. - 22- ITEM # 52186 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: BOARD OF BUILDING CODE APPEALS -Plumbing/Mechanical MINORITY BUSINESS COUNCIL OPEN SPACE COMMITTEE PARKS AND RECREATION COMMISSION PUBLIC LIBRARY BOARD TIDEWATER REGIONAL GROUP HOME COMMISSION February 3,2004 - 23- Item V-K.2. APPOINTMENTS ITEM # 52187 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: Michael E. Sawyer 2 Year Term 01/1/04 -12/31/05 COMMUNITY POLICY and MANAGEMENT TEAM - CSA AT-RISK YOUTH Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A, Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3, 2004 - 24- Item V-K.3. APPOINTMENTS ITEM # 52189 Upon NOMINATION by Vice Mayor Jones, City Council selected: Madelyn H Reass (to be appointed on 2/10/04) M. J Nero (to be appointed on 2/10/04) COMMUNITY SERVICES BOARD - CSB [In accordance with Virginia State Code, Section 37.1-195, Information on the above proposed appointees is available in the Office of the City Clerk] Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Ron A, Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3, 2004 - 25 - Item V-K.4. APPOINTMENTS ITEM # 52190 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: Glenda Knowles 3 Years 01/1/04 -12/31/06 FRANCIS LAND HOUSE BOARD OF GOVERNORS Voting: 11-0 Council Members Voting Aye: Harry E, Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A, Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 - 26- Item V-K.5. APPOINTMENTS ITEM # 52191 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: Eric A. Hauser Robert G. Jones Donald L. Maxwell Meyera E, Oberndorf 1 Year 01/1/04 -12/31/04 HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE - HREDA Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R, Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 - 27- Item V-K.6. APPOINTMENTS ITEM # 52192 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Sylvia N. Strickland 3 Years 2/3/04 -1/31/07 REAPPOINTED: Audrey Mills Gene A. Woolard 3 Years 2/3/04 -1/31/07 HUMAN RIGHTS COMMISSION Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R, Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 - 28- Item V-K. 7. APPOINTMENTS ITEM # 52193 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Cornell Fuller Kevin B. Rack Unexpired term to 12/31/05 SENIOR SERVICES OF SOUTHEASTERN VIRGINIA - SEVAMP Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R, Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3,2004 - 29- Item V-K.B. APPOINTMENTS ITEM # 52194 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Barbara Yates Unexpired plus 3 Years to 05/31/09 TOWING ADVISORY BOARD Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A, Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3, 2004 - 30- Item V-K.9. APPOINTMENTS ITEM # 52195 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Jeffrey L. Marks 4 Years 01/1/04 -12/31/07 VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION -VBCDC Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3, 2004 - 31 - Item V-K.10. APPOINTMENTS ITEM # 52196 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: J. Bryan Plumlee Unexpired to 09/30/06 WETLANDS BOARD Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A, Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Ron A. Villanueva,. Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 3, 2004 - 32- C IT Y MANA G E R 'S B R IE FIN G TAX RELIEF PROPOSED FOR THE ELDERLY 6:23 P.M. ITEM # 52197 Catheryn Whitesell, Director, Department of Management Services, reviewed the recommendations submitted by the Senior Citizen's Tax Relief Task Force. Ms. Whitesell advised the Virginia Beach Current Tax Relief Program: Annually adjusted according to the CPI used by the Social Security Administration Offers Three Program Options FY 2004 FY 2005 Exception Freeze Deferral $ 27,600 $ 40,600 $ 52,000 $ 28,200 $ 41,500 $ 52,000 Annual cost of program: $3.9-MILLION The Deferral Program has reached the state cap of $52,000. All tax programs are deferred until the applicant's proper~v is sold. There are sixteen (16) citizens who utilize the Deferral Program. Mayor Oberndorf advised the Seniors preferred not to utilize the Deferral Option, as their children inheriting the property would have to pay the deferred taxes. Other City's Program: Chesapeake - exemption only Norfolk - exemption only Hampton - exemption only Newport News - exemption only $35,000 $34,450 $25,000 $31,150 Average of Region $28,886 The Senior Citizen's Tax Relief Task Force recommended two (2) major adjustments to the current City program: Seek legislation to allow for tax relief freeze to all residents over 65 yeas of age regardless of income Move the current program's income threshold to the State limit of $52,000 February 3, 2004 - 33- CITY MANA GER 'S BRIEFING TAX RELIEF PROPOSED FOR THE ELDERLY ITEM # 52197 (Continued) Census Data 101,308 homeowners 17.1 % are elderly homeowners 10,089 elderly homeowners have incomes less than $52,000 and represent 58.3% of elderly homeowners 82.9% are non elderly homeowners 31,000 non-elderly homeowners have incomes less than $52,000 and represent 37% of all non elderly homeowners Tax Burden: Virginia Beach: $2,516 compared to $2,611 in Chesapeake and $3,015 in Norfolk Tax Relief already available for State and Local taxes Homeowners with $25,000 income - Elderly would pay Non-elderly would pay $ 906 $ 3,397 Homeowners with $50,000 income- Elderly would pay Non-elderly would pay $ 2,516 $ 4,723 Ms. Whitesell outlined the Options: Additional funding needed to Maintain current program Move to regional average Move to highest in region Move to state cap over 5 years Move to state cap immediately $0.60-MILLION $0.70-MILLION $2. 50-MILLION $1. 75-MILLION $4. 50-MILLION Use funding to provide tax relief to all taxpayers Use funding to maintain current services and programs February 3, 2004 - 34- C IT Y MANA G E R 'S B R IE FIN G TAX RELIEF PROPOSED FOR THE ELDERLY ITEM # 52197 (Continued) Ms, Whitesell advised the staff recommendation is to maintain the current program and not support a non- income based program. The staff also recommended to hold any decision until consideration of the proposed Operating Budget and Capital Improvement Program. Jerald Banagan, Real Estate Assessor, advised Westminster Canterbury is a corporation and receives one (I) tax bill. Atlantic Shores is a co-operative and owns a percent interest in the common areas. The Attorney General has advised the residents could not be recipients of this Tax Relief Council Members Maddox, Reeve and Villanueva will be requesting the following Resolution be scheduled for the City Council Session of February 10,2004: Resolution to RECEIVE and A CCEPT the Senior Citizen Real Estate Tax Relief Task Force's report; and, REQUEST appropriate action by the City Manager and support for legislative changes from the General Assembly. February 3,2004 - 35 - C IT Y MANA G E R 'S B R IE FIN G ECONOMIC DEVELOPMENT INCENTIVES PROGRAM (EDIP) ITEM # 52198 6:48 P.M. Mr. Donald Maxwell, Director - Department of Economic Development, advised the Economic Development Investment Program (EDIP) was created in 1989. The EDIP was formally established by City Council with the adoption of an ordinance and the creation of Policy and Procedures in 1994. The Ordinance transferred funds generated by the cigarette tax (now ten cents (104) per pack). The tax generates approximately $2.4- MILLION annually. The Virginia Beach Development Authority (VBDA) closely monitors, judiciously manages, reviews and approves/disapproves applications for Economic Development Investment Program (EDIP) funds. The EDIP is utilized through the VBDA as a deal-closing mechanism. Municipal incentives are needed to contend in today's increasingly competitive economic development environment. The EDIP has enabled City to locate, retain and expand national and international businesses, as well as creating and savingjobs. EDIP is utilized for required matchingfunds on state grants such as Governor's Opportunity Fund. Joint projects include: Amerigroup Corporation, Stihl, Inc., Geico Direct, Avis Rent A Car System, Inc., Lilian Vernon Corporation; and, Coastal Training Technologies December 1989 - June 2003: The Virginia Beach Development Authority (VBDA) approved grants to one hundred five (105) companies totaling $13, 766,078 Average EDIP grant $131,105 Virginia Beach leveraged the Town Center Project with $7-MILLION additional Funds FY 2004 EDIP appropriation $2,485,000 of which $1-MILLION designated for the Town Center FY 2005 EDIP estimated appropriation: $2,485,000 of which $1- MILLION was designated for the Town Center FY 2006 EDIP estimated appropriation: $2,485,000 DIRECT EDIP BENEFITS 1989 - 2003 Total of$20, 766,078 spent since 1989 (figure includes $7-MILLION designatedfor Town Center) Helped locate, retain and expand 105 companies Stimulated $732,508,020 in new capital investment Created and saved 21,645 jobs for our community February 3, 2004 - 36- CITY MANA GER 'S BRIEFING ECONOMIC DEVELOPMENT INCENTIVES PROGRAM (EDIP) ITEM # 52198 (Continued) NEW EDIP POLICY AND PROCEDURE PART A: Policy and Procedure for the provision of EDIP funds to qualifying businesses No major changes from existing policy Purpose and intent still to foster and stimulate economic development Return on new investment and payback time assessment is equal to or less than 2.5 years Every $1.000fEDIP funds yields $25.00 or more in new capital investment Every $1,000 of EDIP funds yields at least one new full-time, high-quality employment opportunity Formalizes and increases previous City Council directive that new or saved jobs must pay an Average Annual Salary of$35, 000 (excluding benefits) Including total compensation package, jobs will now average approximately $45,500 per year (including benefits), an increase from $35,000 per year) Formalizes EDIP application procedure Confirms deal-closing nature of EDIP that without grant award, business is unlikely to locate or remain in City, and has not yet commenced project Robert J. Scott, Director, Department of Planning, explained Part B of the EDIP Policy and Procedure PART B: Adds new proactive and innovative development/redevelopment section tied to the new Comprehensive Plan Policy and Procedure for the provision of EDIP funds to qualifying developers and property owners for the development or redevelopment of properties in strategic growth areas or economic redevelopment areas. February 3,2004 - 37- C IT Y MANA G E R 'S B R IE FIN G ECONOMIC DEVELOPMENT INCENTIVES PROGRAM (EDIP) ITEM # 52198 (Continued) 1. Purpose and intent 2. Economic redevelopment areas and strategic growth areas 3. Qualifying land uses 4, Investment criteria 5. Availability offunds 6. Application for EDIP awards 10. VBDA findings and actions 11. Approval of the award of EDIP funds 12. Alternative uses of Part B funds by the VBDA to purchase property in a Strategic Growth Area (SGA) or Economic Redevelopment Area (ERA) PART C: General provisions applicable to Parts A and B Adds new section to assure that: 1. VBDA maintains separate accounts 2. All EDIP expenditures shall be in accordance with the policy and funds; may be used for appraisals, financial and market studies, and A & E studies on behalf of the City and Virginia Beach Development Authority (VBDA) 3. Formalizes conditions of payment of EDIP funds and required recapture agreements 4. Specific purposes for the use of EDIP funds shall be in accordances with the Code of Virginia 5.6.7.8. Reporting amending, applications and effective date of policy, respectively - No substantive changes from previous policy. City staff recommends City Council adopt the resolution referring to the Virginia Beach Development Authority proposed amendments to the Economic Development Investment Program (EDIP) Policy and Procedure. A Resolution will be SCHEDULED for the City Council Session of February 10,2004. Resolution to REFER to the Virginia Beach Development Authority, for their consideration and recommendations, amendments to the Economic Development Investment Program (EDIP) Policy and Procedure. February 3, 2004 - 38- Item V-M. ADJOURNMENT ITEM # 52199 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7: 15 P.M ~___~:.2~={~________ Beverly 0. Hooks, CMC Chief Deputy City Clerk ~1.~~~-~- City Clerk ~- Meyera E, Oberndorf Mayor City of Virginia Beach Virginia February 3, 2004