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HomeMy WebLinkAboutAPRIL 20, 2004 MINUTES SPEC CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" ITY COUNCIL MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 HARRY E. DIBZEL, Kempsville - District 2 MARGARET L. EURE, CentervilJe - District I REBA S. McCLANAN, Rose Hall - District 3 RICHARD A. MADDOX, Beach. District 6 JIM REEVE, Princess Anne - District 7 PETER W. SCHMlDT, At-Large RON A. VILLANUEVA, AI-Large ROSEMARY WILSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 JAMES K. SPORE, City Manager LESLIE L. LIUEY. City Attorney RUTH HODGES SMITH, MMC, City Clerk CITY HALL BUILDING I 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE: (757) 427-4303 FAX (757) 426-5669 E MAIL:Ctycncl@vbgov.com SPECIAL FORMAL SESSION 20 April 2004 I. BUDGET WORKSHOP - Council Conference Room - A, FY 2004-05 RESOURCE MANAGEMENT PLAN 1. 2, 3, Quality Education and Lifelong Learning Department of Public Libraries Virginia Beach City Public Schools 2:00 PM 2:30 PM 3:00 PM II. CITY MANAGER'S PRESENTATIONS 4:30 PM A. RURAL AREA PRN ATE UTILITIES CONNECTING TO PUBLIC WATER AND SANITARY SEWER SYSTEM Thomas M, Leahy, Water Resource Manager - Public Utilities B, BACKUP POWER FOR SEWER PUMP STATIONS Thomas M, Leahy, Water Resource Manager ~ Public Utilities III. CITY COUNCIL RECESS 5:30 PM IV. SPECIAL FORMAL SESSION - Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf 1. READING OF THE MAYOR'S CALL FOR FORMAL SESSION B. ROLL CALL OF CITY COUNCIL V. PUBLIC HEARINGS A. FY 2004-2005 RESOURCE MANAGEMENT PLAN 1. LODGING TAX RATE 2. REAL ESTATE TAX RATE VI. ADJOURNMENT MAY 4, 2004 COUNCILMANIC ELECTION City Council cancelled their Regular Sessions and encourages all citizens to experience their right to vote in Virginia Beach MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 20 April 2004 Mayor Meyera E. Oberndorf called to order the BUDGET WORKSHOP re FY 2004-2005 RESOURCE MANAGEMENT PLAN in the Council Conference Room, City Hall, on Thursday, April 20, 2004, at 2:12 P.M. Council Members Present: Harry E. Diezel, Margaret L. Eure, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Rosemary Wilson and James L. Wood Council Members Absent: Vice Mayor Louis R. Jones [Entered: 2:30 P.M.] Richard A. Maddox [Entered: 3: 15 P.M.] Ron A. Villanueva [Entered: 2:40 P.M.] - 2- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN 2: 12 P.M. ITEM # 52489 QUALITY EDUCATION AND LIFELONG LEARNING Catheryn Whitesell, Director - Resource Management, advised the FY 2004-2005 Resource Management Plan includes $771.9-MILLIONfor the business area of Quality Education and Lifelong Learning, which is comprised of$720.5-MILLlONfor the Operating Budget and $51.4-MILLlON in the Capital Budget. This business area represents 52%for the total $1.4-BILLION budget. Schools represent the largest portion of the funding with 46% coning from the City government, 45% from the State and 9% from the Federal Government. The City-School Revenue Sharing Formula is providing $323-MILLION in local support to education, or $171-MILLlON more than required under the State's Standards of Quality (SOQ) formula. The Revenue Sharing Policy requires debt service be the first item funded through the Formula and $41- MILLION has been allocated in the proposed budget to cover school related debt service. The School Board allocated $6. 9-MILLION from the Formula revenue to support school construction needs and reduce future debt service costs. The remaining $275-MILLlON is allocated to support the School's operating budget. Fundingfor the libraries, includes the staffing needed to open a new Oceanfront area library. Included in the Capital Improvement Program (CIP) under the Quality Education and Lifelong Learning business area is the continued effort to renovate older libraries, as well as to modernize additional schools. Fundingfor the new south Rosemont Library has been delayed one (1) year to pursue an agreement with Tidewater Community College for a larger library serving both the College and the community. State funding received by the Department of Public Libraries is through the State Aid to Libraries Program. This revenue stream has decreasedfrom $276,000 in FY 2003 to $259,000 in the proposed Budget. Funding is also included in the Capital Improvement Program to address the City Council's commitment to Tidewater Community College as it expands to meet growing demand for services. Funding is included in the proposed CIP to construct a new alternative education facility to replace the current facility located at the corner of Witch duck Road and Virginia Beach Boulevard. Also included is additional classroom space at several of the existing high schools to address overcrowding issues at the high school level. The School's budget is based on the Governor's proposed budget. Schools were provided $16.3-MILLlON in additional State revenue. Federal funds increased by $3-MILLlON from the current year's budget with the majority of that increase related to Federal grant funding. The remaining revenuefor Schools is provided through the Revenue Sharing Formula and through fees charged for various programs. Council Goals Great schools Expanded school technology Year-round schools Academy programs SOL performance Project X-CD School modernization New and replacement schools Improved customer service, service delivery and City services Replace Oceanfront Library Cost Reduction Initiatives April 20, 2004 - 3 - BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN 2: 12 P.M. ITEM # 52489 (Continued) QUALITY EDUCA TION AND LIFELONG LEARNING Marcy Sims, Director - Libraries, advised the Central Library has two (2) group study rooms. The prototype library, Princess Anne, has also has two (2) group study rooms. The School system's method of teaching has gone more into groups i.e. teams of students compiling reports. The Tidewater Literacy Council also utilizes these rooms for one-on-one tutoring either adults learning to read English or English as a second language. In conjunction with the Department of Human Resources and Management Services, a prototype staffing design was conducted. This prototype staffing was designed to keep the libraries open seven (7) days a week. This prototype staffing was instituted in the Princess Anne Library. Unfortunately, with these lean economic times, this same staffing plan for even six (6) days a week cannot be utilized at the Oceanfront library. Security guards are in all libraries. The cost to keep Kempsville and Princess Anne libraries open on Sunday is approximately $155,000. The cost to fully staff the Oceanfront Library for only six (6) days per week would be approximately $157,000. The libraries are busy every hour of every day. The Kempsville Library was opened in 1989-1990 and has had Sunday hoursfor approximately fourteen (14) years. The Princess Anne Library was opened in October 5, 2003, with Sunday hours. Internet access is the high growth business area. Therefore, a customer's internet access has been limited to one-half hour. Relative revenue generators, Mrs. Sims advised libraries are in the process of receiving bids for a coffee shop in the lobby of the Central Library. The computer system has a button where the library visitor could purchase a certain book from Amazon and the library would receive proceeds. The Friends of the Library operates a used book shop and, since its inception over, $100,000 has been received in proceeds. The Friends allocated $ 75,000 worth of grants to the libraries. If a book does not sell (donations as well as discarded library materials), these books are shipped to "Amazon ", an on-line book sale corporation. Proceeds are received from these sales. April 20, 2004 - 4- ITEM # 52490 Mayor Meyera E. Oberndorf called to order the BUDGET WORKSHOP re FY 2004-2005 RESOURCE MANAGEMENT PLAN, re Virginia Beach City Schools in the Council Conference Room, City Hall, on Thursday, April 20, 2004, at 2:35 P.M. Council Members Present: Harry E. Diezel, Margaret L. Eure, Reba S. McClanan, Mayor Meyera E. OberndOlf, Jim Reeve, Peter W Schmidt, Rosemary Wilson and James L. Wood Council Members Absent: Vice Mayor Louis R. Jones [Entered: 2:30 P.M.] Richard A. Maddox [Entered: 3: 15 PM.] Ron A. Villanueva [Entered: 2:40 P.M.] School Board Members Present: Chairman Daniel D. Edwards and Jane S. Brooks School Board Members Absent: A. James DeBellis Emma L. Davis Dan R. Lowe Vice Chairman Neil L. Rose Sandra Smith-Jones Michael W Stewart Arthur T Tate Carolyn D. Weems, Dr. Lois S. Williams [Entered: 3:40 P.M.] [Entered: 3:00 P.M.] April 20, 2004 - 5- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN 2: 35 P.M. ITEM # 52490 QUALITY EDUCATION AND LIFELONG LEARNING Schools Chairman Daniel B. Edwards, presented the Virginia Beach Schools' FY 2004-2005 Operating Budget, as well as their Capital Improvement Program (CIP). A substantial portion of the School Budget is derivedfrom the State. The Budget proposal still utilizes the Governor's budget, although Schools is prepared to make significant adjustments until adoption of the General Assembly's budget. The School's Operating Budget is unique to the extent to which the caDital reQuirements have been proposed to be sUDDorted from the oDeratinr! funds. The School's Operating Budget is based on the Revenue Sharing Formula. In the past, schools has requested more than the formula provided. There are shortfalls in which schools will have to continue to reply upon year-end funds. Sensitive to the pressures re tax rates for property taxes, as the City and Schools both utilize this revenue stream, a significantly larger portion of the School budget is based on property taxes than is the remaining City's budget. The School's official enrollment in 1996 referred to as "Average Daily Membership" (ADM) was 75,898. The enrollment actually increased the next three (3) years and has decreased slightly in the past four (4) years. The net difference is about seven hundred (700) students or less than 1% of the School's enrollment. With this l%flexibility over the past eight (8) years, the Schools have successfully implemented Standards of Learning (SOL) accountability and testing and realigned the curriculum and teaching methods to have the schools accredited. Competitive compensation has been maintained for teachers and staff. The State actually provided no funds for raises in three (3) of the pastfour (4) years. In thefourthyear, there is a 2.25% mid year raise which is the equivalent of a 1.2% raise. An additional 440 special education students has been absorbed into the enrollment. The special needs of these students must be met as it is the law. The Virginia Beach Schools is complying with the most recent major unfunded Federal Mandate referred to as "No Child Left Behind" Because of this mandate, forty-six (46) new data entry positions are necessary to cover the fifty-five (55) elementary schools and have been added at a cost of$I.I-MILLION. From the Capital Improvement Program, a Middle School renovation has been eliminated and the pace of renovations has been slowed well beyond the forty-year cycle sought to maintain. The only new items are two (2) required high school additions. The other priorities remain the Alternative Education Center, related support building moves, a new bus garage and a new elementary school in the Bayside area to eliminate serious overcrowding at Betty F. Williams and Newtown Road Elementary Schools. Virginia Beach Schools are seeking to borrow an additional $92-MILLION over the next six (6) years. Iflottery proceeds are included, reliable streams of revenue are available to support same. Dr. Timothy R. Jenney, Superintendent, Virginia Beach Schools, advised the Virginia Beach School System has given the citizens their most favorable return on City Council's investments. School System of Excellence Full accreditation of95% of our schools Marked improvement on Stanford 9 tests Increased enrollment in academies Successfulyea~roundschoo~ Improved Advanced Placement scores Greater possibility of achieving industry certification through varied course offerings Increased number of National Merit Scholar semifinalists National leader in Instructional Technology April 20, 2004 - 6- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) Strategies Improve compensation to attract quality personnel Provide resources and accountability measures to ensure meeting of goals Improve all infrastructure systems Dr. Jenney advised the proposed spending plan includes a set-aside of $35.4-MILLION to improve compensationlbenejits package. The proposed Operating Budget will raise the bottom of the teacher's salary scale to $33,730 and the top to $59,396. Included in these funds are $I7.6-MILLION for a 5% compensation increase, $3.3-MILLION for increase in employer contribution to health insurance. $14.5- MILLION for rising Virginia Retirement System (VRS) rates. Dr. Jenney displayed a map detailing Elementary School membership from September 2002 to September 2003. Division-wide, the decline was three hundred thirty-four (334) students. Nine (9) attendance areas have actually increased in enrollment. Twenty-seven (27) attendance areas are relatively stable, gaining or losing no more than twenty-five (25) students. The balance depicts a net decline of twenty-five (25) and above. Twenty-three (23) schools have been renovated, rebuilt, or newly constructed since 1997. Now is not the time to slow down. Old buildings cannot accommodate the needs for first-rate programs. Alternative education needs a more coordinated, proactive funding approach. Inadequate facilities result in needy students going without services. Alternate education facilities are located throughout the City in the oldest facilities, and in some cases, temporary or "make shift" quarters. Inadequate facilities force Schools in a stance of suspending some students who then go without services during the school year. The implication of students with unaddressed educational needs and behavioral problems remaining at home during school hours is significant to the community at large. Middle school children are enrolled in the Center for Effective Learning, a fifty-six (56) year old building which has not known the benefit of renovation. Some students attend classes underneath an old stadium. Virginia Beach Central Academy operates in a 44-year old former department store. Open campus is a commendable program that provides an intense accelerated schedule. This schedule affords another opportunity to students who may have previously dropped out of school, or who need additional courses for employment, admission to higher education or enlistment in the military. Unfortunately, the program operates largely out of portables on the premises of Green Run High School. The Princess Anne Center for pregnant teens operates out of four (4) portables on the grounds of Princess Anne High Schoo/. If these programs were housed under one roof, delivery of services could be improved considerably and $1.2- MILLION could be saved annually in operational costs. School Plant Services are working on the outdated campus of the Center for Effective Learning and Central Academy. The Bus garage is a 44-year old facility that is willfully inadequate to address the needs of the second largest public school transportation system. The bays can only accommodate 64-passenger buses while many in this industry utilize 84-passenger buses. Facing such situations, the School Board made a conscious decision to submit a proposed six-year $601- MILLION Capital Improvement Program (CIP). Schools will commit to moving $5.5-MILLION annually from the Operating Budget to the Capital Improvement Budget. April 20, 2004 - 7 - BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) Tony L. Arnold, Director of Facilities, Planning and Construction, advised six (6) high schools are being reviewed to determine which two (2) require additions: Green Run, Salem, Cox, Tallwood, Ocean Lakes and Landstown. Victoria Lewis, Chief Financial Officer - Virginia Beach City Schools, referenced the comparison of the FY 2003-04 and FY 2004-05 Operating Budget (based on the Governor's Budget) FY 2003/04 FY 2004-05 Increase in dollars State (Governor's Budget) City Increase in percent State (Governor's budget) City $ 534,343,721 $ 571,788,731 $ 37,445,010 $ 16,400,000 $ 20,600,000 7.01% 5.84% 8.08% September 30 Enrollment FY 2003-04 FY 2004-05 Projected Reduction Average reduction per school Average reduction per grade level K- 8 (6 grade levels) 6- 8 (3 grade levels) 9-12 (4 grade levels) 75,424 74.938 486 5.71 .95 students 1.90 students 1.43 students State Funding - $279.4-M/LLION Sales Tax - $57.2-M/LLION Allocated based on number of school-age children living in Virginia Beach Funded by $.01 of State Sales Tax Subject to fluctuations in the economy Part of the Basic Aid Formula 6.5% increase over FY 200-04 BUDGET Other State funds - $222.1-M/LLION Standards of Quality Programs (SOQ) Per pupil amounts Regular/gifted/special/vocational education Incentive Programs Requires a match based on composite index Usually shown as a grant Categorical No match required ESL, Foster Care, Homebound April 20, 2004 - 8- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) The Revenue Sharing Formula was adopted by City Council in February 1997, the only change from the initial policy was to permit the Schools to share in actual over-budget in the same percentage shared in budgeted revenues. The City provides an estimate of those amounts in the Fall and in January, a revised estimate is presented. The allocation for this year is $323.5-MILLION:. Recommended allocation Debt Service Pay As you Go CIP Operating Budget $ 4I.3-MILLlON (Mandatory allocation) $ 6.9-MILLlON $ 275.3-MILLION Expenditures Required Costs Salary and benefits overhangs Changes in mandates rates - i.e. VRS retirement Changes in Federal/State grant matches Student programs Enrollment projections New schools Mandates Compensation enhancements Baseline capital replacements Position Additions Net New Positions 175.30 Instructional Instructional Support - school based Elementary security Bus Drivers School Plant - Preventative Maintenance Various clerical support 69.90 50.90 18.00 13.00 6.00 17.50 Tony Arnold presented highlights of the 2004-05 Capital Improvement Program, adopted by the School Board on March 16, 2004. Since 1997, the School Division has constructed or modernized twenty-three (23) facilities. April 20, 2004 - 9- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) New Schools Christopher Farms Elementary School 1997 Corporate Landing Middle School 1997 New Castle Elementary School 1999 Landstown High School 2001 Advanced Technology Center 2002 Elementary School 2005 (Located behind Three Oaks subdivision) Where Have We Been? Replacements Modernizations Linkhorn Park Elementary School (1998) Creeds Elementary School (2000) WT Cooke Elementary School (1999) Shelton Park Elementary School (2001) Seatack Elementary School (2000) Thalia Elementary School (2001) Bayside Elementary School (2000) Luxford Elementary School (2001) Kemps Meadows Elementary School (2002 Kempsville Elementary School (2003) Woodstock Elementary School (2002) Malibu Elementary School (2003) Hermitage Elementary School (2004) Pembroke Elementary School (2004) Arrowhead Elementary School (2004) Lynnhaven Elementary School (2004) Trantwood Elementary School (2004 What is Included in the Proposed City Manager's 2004/2005 CIP? Continue modernizations Alternative Education Facility - Phase I (School Plant/Supply Facility) Virginia Beach Middle/Kemps Landing Magnet replacement facility Elementary School 2005 Elementary School 2007 Two high school additions Great Neck Middle School replacement Miscellaneous renovation/replacement projects April 20, 2004 - 10- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) What is NOT included in the proposed City Manager's 2004-2005 Capital Improvement Program? More aggressive modernization schedule Bus Garagefacility ($11.6-MILLION) Alternative Educationfacility - Phase II (U5-MILLION) Mrs. Lewis advised the Revenue haring Formula is used to allocate funds between the City and the Schools was adopted in February 1997. This also affects City Operations; howeverJor the City, it is not the sole source offunding. The School System must use these funds for all of their needs: Debt Service, Capital Improvement Program and the Operating Budget. School Capital Improvement Program Funding Lottery proceeds (state) Construction grants (state) Revenue Sharing Formula - Pay As You Go Funding (PAYGO) Operating Budget reversion Cannot be spent on recurring expenses Revenue Sharing Formula actual over budget Cannot be spent on recurring expenses Capital Improvement Program City School Difference $ 509,312,259 $ 601,084,238 $ 91,77/,979 Overall Net Debt per Capita Inflationary re-evaluation value' $/,775 City indicator value for FY 04/05' $2,051 "The explanation for exceeding this threshold is the issuance of debt associated with the Major Projects and Open Space Initiatives. " "This level of debt can be supported without negatively impacting the City's bond rating. " ". .population growth has unexpectedly slowed.. Since the initial policy decision was made to issue this debt. " "...if debt associated with the Convention Center Theater and Open Space program are excluded, the City is within their policy thresholds. " "..Net Debt to Income Per Capita should not exceed 6.5%, and is comfortably below this threshold for each year. "" 'Page 39 - Executive Summary - FY 2004/08 Resource Management Plan. "Page 50 - Executive Summary - FY 2004/05 Resource Management Plan April 20, 2004 -11- BUDGET WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN ITEM # 52490 (Continued) QUALITY EDUCATION AND LIFELONG LEARNING Schools (Continued) School Capual Improvement Program Capital Improvement Program reflects the priorities of the Board Allocates $5.5-MILLlON per year for PA YGO Effect of additional Debt Service Additional $92-MlLLION in Debt to be paid from the Revenue Sharing funding streams Balance of funds allocated to Operating Budget April 20, 2004 -12 - ITEM # 52491 Mayor Meyera E. Oberndorf called to order the CITY MANAGER'S PRESENTATIONS re Rural Area Private Utilities Connecting to Public Water and Sanitary Sewer System and Backup Power for Sewer Pump Stations in the Council Conference Room, City Hall, on Thursday, April 20, 2004, at 4: 15 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, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Absent: None April 20, 2004 -13 - CITY MANA GER 'S PRESENTA TION RURAL AREA PRIVATE UTILITIES CONNECTING TO PUBLIC WATER AND SANITARY SEWER SYSTEM 4:15P.M. ITEM # 52491 (Continued) Thomas M Leahy, Water Resource Manager - Public Utilities, advised Clarence Warnstaff - Director - Public Utilities and Gary Jones - Manager of the Engineering Division, were in audience. From time to time, the Department of Public Utilities has been asked to approve the installation of privately-owned utility lines in the public right-oI-way for the purpose of connecting a property to the public water or sanitary sewer system. Though this practice is discouraged, it is generally allowed north of the Green Line or in the Princess Anne/Transition area if there are no practical means to serve the property with the public system, and if the on-site systems are not providing an acceptable alternative (a hardship exists). In December 2003, City Council adopted a new Comprehensive Plan that contains additional guidance with respect to urban/suburban infrastructure in the vicinity of the Green Line and Princess Anne/Transition Area boundaries. However, this Comprehensive Plan is not as absolute in its guidance as the 1997 Comprehensive Plan. Mr. Leahy referenced page 33. "Residents of the City, whether urban or rural, deserve reasonable response to basic health, safety and welfare concerns due to existing or longstanding conditions, and the Green Line is not intended to prevent investment to remedy such concerns. " Recently, Public Utilities was approached by approximately three (3) property owners to extend private utility lines to connect to the public system from properties that are in the rural area across the Green Line and into the Transition Area. Two of these owners have commercial properties on Sandbridge Road, approximately ~ mile west of the Oceanfront and one of the owners has a residential lot on the other side of Indian River Road. Public Utilities concluded it is appropriate to reevaluate its policy and therefore met with representatives of the Planning Department, Development Services Center and the City Attorney: Robert J. Scott - Director - Planning, Tom Pauls - Comprehensive Planner Tom Leahy - Water Resource Manager, Public Utilities Gary Jones - Manager, Engineering Division Charles Hassen - Director, Development Services Department William Macali - Deputy City Attorney Public Utilities concluded it was appropriate to reevaluate its policy. Proposed Policy for Private Utilities in Rural Area Connecting to Public System Public Utilities will not extend public facilities into the Rural Area Public Utilities will permit private utilities in the Rural Area to connect to the public system when: Existing development only On-site system is failing No practical alternatives Capacity sized for existing use only No public funding Very stringent encroachment agreement April 20, 2004 - 14 - CITY MANA GER 'S PRESENTA TION RURAL AREA PRlV ATE UTILITIES CONNECTING TO PUBLIC WATER AND SANITARY SEWER SYSTEM ITEM # 52491 (Continued) By Consensus, this item relative revised Policy of Rural Area Private Utilities Connecting to Public Water and Sanitary Sewer System, shall be scheduledfor a City Council Public Hearing on May 11, 2004, with a vote by City Council at thefollowing Formal Session of May 27,2004. April 20, 2004 - 15 - CITY MANAGER'S PRESENTATION BACKUP POWER FOR SEWER PUMP STATIONS 4:50 P.M. ITEM # 52492 Thomas M. Leahy, Water Resource Manager - Public Utilities, advised during Hurricane Isabelle, three hundredfifty-eight (358) of three hundred eighty-nine (389) sewer pump stations were out of power for up to five (5) days. Prior experiences were less than two hundred (200) stations out for one to three days. Debris from Isabel was twice the debris from hurricane Bonny. The Public Utilities' forces and available equipment were overwhelmed Sewer Pump Station Reliability Public Utilities has investigated two long-term options and an immediate short-term action Alternative I: Backup power at all 389 pump stations. $40-50- MILLION ($6-MILLION per year) Alternative 2: Backup power at ninety seven (97) Tier 1 Pump Stations. Electrical "quick-connects" at two hundred ninety-two (292) stations. More portable generators (in-house, contract). $I7-21-MILLION ($2. 6-millionlyear) Both alternatives would require at least jive (5) years to fully implement. The debris from Hurricane Bonney was approximately y:'-MILLION cubic yards. The debris from Isabel was slightly less than I-MILLION cubic yards. Tier I Sewer Pump Stations Serve many connections or receive fiow from other pump stations Serve an emergency shelter, critical care facility (hospitals, etc) or other essential facilities Function as a repeater site for the system Could generate Sanitary Sewer overflows that would reach a public water supply Could cause Sanitary Sewer overflows in homes or businesses Alternative 1 is not recommended. Sanitary Sewer overflows (SSO's) occur for many other reasons. The goal should be to minimize the total number and volume of all SSO's, not just those caused by power outages. Alternative 2 is recommended - in concept. Immediate actions are also recommended. April 20, 2004 -]6 - CITY MANAGER'S PRESENTATION BACKUP POWER FOR SEWER PUMP STATIONS ITEM # 52492 (Continued) Immediate Actions Purchase and replace at least twenty (20) portable generators Generators dedicated to service areas with potential for Sanitary Sewer overflows inside structures Contracts for leasing more generators and pumps during/after a storm Permanent backup at as many Tier] stations as possible (about 30 - 39 already have electrical quick connects) $5-MlLLION from retained earnings, no rate increase necessary The City Manager's staff is not ready to recommend that Alternative 2 is the solution. More studies are necessary. The City Manager advised additional information will be provided City Council in the Fall. The staffis not even ready concerning the "immediate actions" as more engineering work and other studies are needed. Within the next few months, requests for funding shall be scheduled for consideration by City Council. The Workshop ADJOURNED at 5:18 P.M. to RECONVENE the SPECIAL FORMAL SESSION in the City Council Chamber at 6:00 P.M. April 20, 2004 - 17- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL April 20, 2004 6:00 P.M. Mayor Meyera E. Oberndorf called to order the SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL re Public Hearing of the PROPOSED FISCAL YEAR 2004-2005 RESOURCE MANAGEMENT PLAN in the in the Council Chamber, City Hall Building, on Tuesday, April 20, 2004, at 6:00 PM.. Council Members Present: Harry E. Diezel, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Ron A. Villanueva and James L. Wood Council Members Absent: Margaret L. Eure [Left 5:00 P. M] Rosemary Wilson [Left 7:00 P.M.] INVOCATION: Vice Mayor Louis R. Jones PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Mayor Oberndorf requested prayers in memory of Tara Drake - Development Services Center. April 20, 2004 - 18- MAYOR'S CALL TO SPECIAL SESSION: ITEM # 52493 The Mayor read the CALL TO SPECIAL FORMAL SESSION: "THE HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL on Tuesday, April 20, 2004, at 6:00 P.M., in the City Council Chamber, City Hall Building, 2401 Courthouse Drive. The purpose of this SPECIAL FORMAL SESSION: Public Hearing: FY 2004-2005 Resource Management Plan Lodging Tax Rate Real Estate Tax Rate This Special Formal Session and Public Hearing will follow the regularly scheduled City Council Workshop (Conference Room, City Hall). Sincerely, s/Meyera E. Oberndorf Mayor" April 20, 2004 City c:>:1 Virgi:r:da Beach MEYERA E. OBERNDORF MAYOR MUNICIPAl_ CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9000 (757) 427-4581 FAX (7571426-5699 MOBERNDO@VBGOVCOM March iO, 2004 THE HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-2i, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL on Tuesday, April 20, 2004, at 6:00 P.M. in the City Council Chamber, City Hall Building, 240i Courthouse Drive, The purpose of this SPECIAL FORMAL SESSION: Public Hearing: FY 2004-05 Resource Management Plan Lodging Tax Rate Real Estate Tax Rate This Special Formal Session and Public Hearing will follow the regularly scheduled City Council Workshop (Conference Room, City Hall), Sincerely, ~ Meyera E. Oberndorf Mayor cc: Mayor and Members of City Council James K. Spore, City Manager Leslie L. Lilley, City Attorney Ruth Hodges Smith, MMC, City Clerk Charles W. Meyer, Chief Operating Officer Susan Walston, ChiefofStaff Steven Thompson, Chief Financial Officer David Sullivan - Chief information Officer Diane Roche, Assistant to the City Manager .for Communications and Media Relations Gwen Cowart - Director, Communications and Information Technology -19 - Item V. AlB ITEM # 52494 Mayor Oberndorf DECLARED a PUBLIC HEARING: PROPOSED FISCAL YEAR 2004-2005 RESOURCE MANAGEMENT PLAN A. Lodging Tax B. Real Estate Tax Rate The following speakers registered to speak: Herb Maher, 405 High Point Avenue, Phon: 427-8559, requested the Consumer Affairs Office not be eliminated from the Operating Budget. Mr. Maher was in SUPPORT of the Real Estate Tax Rate Robert 0 'Connor, President - Citizens' Action Coalition, Inc., 204 52"" Street, Phone: 428-0902, spoke relative the Real Estate Tax Rate and distributed a petition of 2,632 signatures requesting the Real Estate Tax Rate be lowed to $1.04 per $100 of assessed value. Said petition is hereby made apart of the record. Al Strazzullo, 3120 Sand Pine Road, Phone: 481-0024, spoke relative the Real Estate Rate, and supported a real estate tax rollback Henry Ryto, 408 Jasper Court, Phone; 687-8585, Director - Council of Civic Organizations and the CCO's voting representative with the Resort Advisory Commission, supported a real estate tax roll back. House Bill 30 of the General Assembly Budget from the Regular Session gave Virginia Beach $25.4-MILLION more in FY 2005 than in FY 2004 and a 7.8% increase over the Biennium Budget. William Bailey, 4841 Rosecroft Street, Phone: 495-0637, represented Virginia Beach Coalition of Public Employees, Virginia Beach Professional Firefighters, the Police Benevolent Association, Police Supervisors Association and the Virginia Beach Education Association (17,000 City and School employees) Mr. Bailey read a letter on behalf of the membership and requested the real estate tax rate not be lowered. Mr. Bailey also referenced the Police are very much underpaid. Maury Jackson, 1125 Ditchley Road, Phone: 428-1470, advised the assessment on his small house increased $60,000, ($750 more in taxes due). Mr. Jackson requested the Real Estate Tax Rate be lowered. Daniel Baxter, 2001 Drumheller Court, Phone: 495-7224, represented the Council of Civic Associations, and requested the Real Estate Tax Rate be lowed to $1.10 per $100 of assessed value Reid Greenmun, 2621 Sandpiper Road, Phone: 426-5589, First Vice President, Council of Civic Organizations, resident of Sand bridge, advised his house has doubled in value within three (3) years. Mr. Greenmun requested the Real Estate Tax Rate be lowed to $1.10 per $100 of assessed value. Catheryn Whitesell, Director of Management Services, will confer with Mr. Greenmun and the Council of Civic Organizations, to develop a $36-MILLION list of possible cuts to lower the Real Estate Tax rate. Mr. Greenmun advised the CCO is not requesting the Operating Budget be cut from last year, but requesting the real estate rate of increase be slowed this year. April 20, 2004 - 20- Item V. A/B ITEM # 52494 (Continued) Ken Taylor, represented the Virginia Beach Hotel/Motel Association, advised discussion at the Board of Directors March Meeting re the sunset of the $1.00 per room night contribution to the advertising and marketingfund and the 1/2% hotel tax for events programming. The Board of Directors remains committed to the long standing partnership with the City to develop and improve tourism and provide a strong calendar of events for the citizens and tourists. Virginia Beach Hotel/Motel Association voted unanimously to support the renewal of both of these taxes and extend the sunset to June 30, 2008 Paul Hamaker, 1813 Barkading Court, Phone: 479-3133, urged curtailment of growth, OPPOSED to Real Estate Tax Increase. Mr. Hamaker supported devoting one cent of the Real Estate Tax to the acquisition and maintenance of open space. This open space fund is being depleted Tom Langley, Langley and McDonald Engineering, spoke in SUPPORT of the Proposed Fiscal Year 2004-2005 ResourceManagement Plan and the Real Estate Tax Rate. Mr. Langley also represented several groups of waterfront residents on the Lynnhaven River, requesting the dredging of the Lynnhaven River be accelerated from the 2007-2008 Capital Improvement Program Chris Cutchins, 1000 Wessex Lane, Phone: 523-0438, represented Endependence Center, Incorporated (ECI) and requested City Council's continued support with an increasefrom $42,500 to $70,000 due to an increase of participants. Mrs. Cutchins, with a dual disability of visual and hearing loss, is a participant. Dominic Melito, 4246 Beasley Court, Phone: 729-5672, Vice President-Elect, Virginia Beach Education Association, and represented the Virginia Beach Coalition of Public Employees, spoke in OPPOSITION to reduction of Real Estate Tax rate Teresa Bowling, 1104 Snowbird Lane, Phone: 437-1193, SUPPORTED reduction of the Real Estate Tax Rate and requested the reinstatement of Sunday hours at Princess Anne Library Tom Coghill, 804 Surfside Avenue, Phone: 422-3425, resident of Croat an area, spoke in SUPPORT of the Real Estate Tax rate Debbie Dear-Rutecki, Vice Principal- Alanton, 4325 Delray Drive, Phone: 460-2989, parent of a handicapped child, spoke in OPPOSITION to reducing the Real Estate Tax Rate. When her special needs child graduates, the Community Services Board has advised on July First, there will be no further schools for her to attend. Inadequate State Waiver funds are received Frank Doyle, 5372 Lynnbrook Landing, Phone: 490-0842, spoke in SUPPORT of the Real Estate Tax. His home is his largest investment and he is more than willing to pay the taxes. Mr. Doyle also spoke in SUPPORT of the eighteen (18) Ladder Captain positions of the Fire Department Marylayne Castelluzzo, Speech Pathologist with Virginia Beach City Schools, 5189 Stratford Chase Drive, Phone: 424-4346, spoke in OPPOSITION to the increase in the Real Estate Tax rate There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. April 20, 2004 - 21 - Item VI. ADJOURNMENT ITEM # 52495 Mayor Meyera E. Oberndorf DECLARED the Special Formal City Council Session ADJOURNED at 7:40 P.M. ~~~~!~~-- Chief Deputy City Clerk Meyera E. Oberndorf Mayor City of Virginia Beach Virginia April 20, 2004