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Home My WebLink AboutAPRIL 12, 2005 MINUTES CITY OF VIRGINIA BEACH A COMMUNITY FOR A LIFETIME CITY COUNCIL MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 HARRY E. D1EZEL Kempsville - District 2 ROBERT M. DYER, Centerville - District I 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 MANAGER - JAMES K. SPORE CITY ATTORNEY - LESUE L. ULLEY CiTY CLERK - RUTH HODGES SMITH, MMC CITY COUNCIL AGENDA 12 APRIL 2005 I. CITY MANAGER'S BRIEFINGS - Conference Room - 1. DEBT and FINANCIAL CAPACITY Patricia Phillips, Director - Finance Catheryn Whitesell, Director - Management Services CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE:(757) 427-4303 FAX (757) 426-5669 E-MAIL: Ctycncl@vbgov.cotn 12:30 P.M. 2. CITYVIEW RIGHT -OF- WAY ALIGNMENT FOR CONSTITUTION DRIVE EXTENSTION Robert Scott, Director - Planning II. BUDGET WORKSHOP - Conference Room - 1. BUDGET OVERVIEW Catheryn Whitesell, Director - Management Services 2. LYNNHAVEN 2007 Charlie Meyer, Chief Operating Officer 3, STORM WATER PROGRAM Dean Block, Director - Public Works 3:00 P.M. III. CITY COUNCIL COMMENTS IV. REVIEW OF AGENDA ITEMS V. INFORMAL SESSION - Conference Room - 5:00PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION VI. FORMAL SESSION - Council Chamber - 6:00PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: Pastor Mark Rueter Foundry United Methodist 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. 2. SPECIAL FORMAL SESSION INFORMAL AND FORMAL SESSIONS March 29, 2005 April 5, 2005 G. MAYOR'S PRESENTATIONS 1. PROCLAMATION IN RECOGNITION April 2005 National Records and Information Management Month 2. PROCLAMATION IN RECOGNITION April 10 - 16,2005 National Library Week 3. Virginia Beach Open Golf Tournament Tim Miller Foundation H. AGENDA FOR FORMAL SESSION I. CONSENT AGENDA J. ORDINANCES/RESOLUTIONS 1. Ordinance to AMEND City Code by ADDING ~~ 7-71, 7-72 and 7-73 re regulating the rental and use of Surreys in the Resort Area 2. Ordinance to ACCEPT and APPROPRIATE $5,316 to the Fire Department from the Virginia Emergency Management Department as reimbursement for "Determined Promise" exercise 3. Ordinance AUTHORIZING reimbursement of legal fees and expenses incurred by a Sheriffs Deputy in his defense of a criminal charge arising out of the performance of his official duties dismissed by the court 4. Resolution re Constitution Drive Extended: a. Alternative "A": ties into Constitution Drive on the north, crosses 1-264, follows Edwin Drive and connects to Independence Boulevard b. Alternative "F": ties into Constitution Drive on the north, intersects with a realigned Bonney Road west of Bendix Road, crosses 1-264, and connects to Independence Boulevard northwest of Edwin Drive 5. Resolution AUTHORIZING the City Manager EXECUTE a Memorandum of Understanding (MOU) with Virginia Aquarium and Marine Science Center Foundation, Inc. and Virginia Wesleyan College re maintenance, operation, and use of a Research Vessel for the Aquarium's stranding operations 6. Resolution AUTHORIZING a first Supplemental Support Agreement between the Virginia Beach Development Authority (VBDA) and the City; and, AUTHORIZING the execution of associated financing documents 7. Resolution APPOINTING JAMIE E.K. TYLER and AIMEE E. KNAPP as Assistant City Attorneys K. PLANNING 1. 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) for JOHN C. AND MARY VOGEL TRUST to subdivide a family parcel at 2388-2400 London Bridge Road(DISTRICT 7 - PRINCESS ANNE) RECOMMENDATION: APPRO V AL 2. Application of ENOCH BAPTIST CHURCH for a Modification of a Conditional Use Permit (approved by City Council on and December 16, 1997, and August 28,2001) to allow a child care center in conjunction with the church. at 5641 Herbert Moore Road (DISTRICT 2 - KEMPSVILLE) RECOMMENDATION: APPROVAL 3. Application of GOOD SAMARITAN EPISCOPAL CHURCH for a Moditication of Condition Number 5 of a Conditional Use Permit (approved by City Council on December 13, 1976, and November 9,2004) re certain level of improvements to the adjacent right-of-way at 848 Baker Road (DISTRICT 2 - KEMPSVILLE) RECOMMENDATION: APPROVAL 4. Application of LAND & BUILDING IV. L.C. for the Modification of Proffer Number 1 re Conditional ChanJ?e of Zoning (approved by City Council on March 28, 2000 Troy A. Titus), re a building strip mall at 5221 Indian River Road (DISTRICT 1 - CENTERVILLE) RECOMMENDATION: APPRO V AL 5. Application of MICHAEL J. & HELEN V. STANDING / FOGGS SEAFOOD CORPORATION re the enlargement of a Nonconforming Use to enlarge the existing free standing restaurant at 415 Atlantic Avenue (DISTRICT 6 - BEACH) RECOMMENDATION: APPROVAL 6. Application of RICK GRAHAM for a Conditional Use Permit re automotive repair garage within an existing building in the Owls Creek Commerce Center at 1228 Jensen Drive (DISTRICT 6 - BEACH) RECOMMEND A TION: APPROV AL 7. Application of JAMES E. MILLER for a Conditional Use Permit for a bulk storage yard at 593 South Birdneck Road (DISTRICT 6 - BEACH) RECOMMENDATION: APPROVAL L. APPOINTMENTS Community Policy and Management Team - CSA At Risk Community Services Board Francis Land House Board of Governors Health Services Advisory Board Human Rights Commission Investment Partnership Advisory Committee Minority Business Council Open Space Subcommittee Parks and Recreation Commission Performing Arts Theatre Advisory Committee Personnel Board The Planning Council Towing Advisory Board M. UNFINISHED BUSINESS N. NEW BUSINESS O. 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) *********** 2005-2006 RESOURCE MANAGEMENT PLAN SCHEDULE I EVENT II TOPIC I LOCATION II DATE Workshop Safe Community and Quality Council April 14, 2005 Organization Conference Room Workshop Quality Education & Lifelong Learning; Council April 19, 2005 Constitutional Officers Conference Room Public Hearing Bayside High April 21, 2005 School 6:00 PM Workshop Economic Vitality, Cultural and Council April 26, 2005 Recreational Opportunities; Family and Conference Room Youth Opportunities Public Hearing Council Chamber April 26, 2005 6:00 P.M. Reconciliation Council May 3, 2005 Workshop Conference Room Adoption of FY City Council Vote on Resource Council Chamber May 10,2005 2005-2006 Management Plan 6:00 P.M. Resource Management Plan Agenda04/12/05blb www.vbgov.com MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 12 April 2005 Mayor Meyera E. Oberndorf called to order the City Manager's Briefing re DEBT and FINANCIAL CAPACITY in the Council Conference Room, City Hall, on Tuesday, April 12, 2005, at 12:30 P.M, Council Members Present: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R, Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James 1. Wood Council Members Absent: Rosemary Wilson [Entered: 12:43 P.M.] Ron A. Villanueva [Entered: 3: 15 P.M., son ill] - 2- CITY MANAGER'S BRIEFING DEBTand FINANCIAL CAPACITY ITEM # 53779 12:30 P.M. Patricia Phillips, Director of Finance, and Catheryn Whitesell, Director - Management Services, presented information relative the City's Financial and Debt Capacity. A Resource Notebook, which is hereby made a part of the record, was distributed to City Council. This booklet encompasses material from the rating agencies, policies and process, Financial and Debt Philosophy Major Themes Conservative: financial and debt management and policies that maintain the City's strongfinancial position and provides significant value to the community. The use of debt can match costs and beneficiaries EjJective communications with the credit rating agencies that maintains, if not enhances, the City's strong credit ratings. Financial and Debt Management Use of Pay-As- You-Go Conservative Financial Policies including Charter Limitation, Fund Balance Policy, Resource Management Administrative Directive, Debt AjJordability Guidelines, etc. Strong Control of Expenditures Debt Capacity Availability Adherence to an Articulated Debt Policy Debt Structure Rapid Repayment Schedule Appropriate Debt Instrument Results in Moderate Debt Levels No Overlapping Debt Appropriate Debt Instrument Tax-Supported: General Obligation Bonds Appropriation - Back Debt $569-MILLION $218-MILLION User-Fee Supported: Enterprise Revenue Bonds $126-MILLION April 12, 2005 - 3 - CITY MANAGER'S BRIEFING DEBTand FINANCIAL CAPACITY ITEM # 53779 (Continued) Credit Rating Fitch Moody's Standard & Poor's General Obligation Bonds AA+ Aa1 AA+ Public Facility Revenue Bonds AA- Aa3 AA Water and Sewer Revenue Bonds AA+ Aa3 AA Stormwater Revenue Bonds AA+ Aa3 Not Rated Mrs. Phillips advised the factors which the Rating Agencies determine as the City's strengths: Economics, DiversifYing Economy; Town Center, Convention Center Financial Management and Operations, Debt Affordability Debt Affordability Ratios: Moderate Debt Substantial Cash Funding of Capital Program Comprehensive Land Use Plan Past Growth Management Development restrictions in South allows targeted Redevelopment Water supply Summary of Debt - June 30, 2004 (In Millions) Amount Source General Obligation Bonds Schools $ 306 Full Faith and Credit General Government $ 263 Full Faith and Credit Certificates of Participation 17 Annual Appropriation Public Facility Revenue Bonds 200 Annual Appropriation (via VBDA) Capital Leases (Equipment) 1 Annual Appropriation Agricultural Reserve Program 22 Full Faith & Credit/Strips Revenue Bonds Water & Sewer 112 Revenues of Enterprise Fund Stormwater 14 Revenues of Enterprise Fund Total Debt $ 935 Less: Revenue/Supported LHQ Net Tax Supported Debt ! 787 April 12, 2005 - 4 - CITY MANAGER'S BRIEFING DEBTand FINANCIAL CAPACITY ITEM # 53779 (Continued) Mrs. Phillips advised the Voters approved additional General Obligation Debt in the following Referenda: 1987 Roadways Schools Streets and Highways Schools Recreation Centers Roads Schools $ 22.9 -MILLION $ 13.3 -MILLION $ 40 -MILLION $ 32.31 -MILLION $ 32.85 -MILLION $ 8 -MILLION (over 10 years) $ 68.375 -MILLION 1980 1985 1986 1989 Summary of Current Debt Affordability Indicators Ratio Description Established Guidelines Annual Debt Service to General No greater than 12.5% Government Expenditures FY 2004 7.9% Overall Net Debt to Estimated Full Value No greater than 3,5% Overall Net Debt Per Capita No greater than $1,500 Overall Net Debt Per Capita to Per No greater than 6.5% Capita Personal Income 2.8% $1,833 5.4% History of Debt Per Capita Original guideline of$1,300 per capita approved in 1992 Revised in 1998 to $1,500 per capita Addition of Major Projects in FY 2002-07 Capital Improvement Program projected debt per capita to peak at over $2,200 in 2008 Key Financial Policies Comprehensive Land Use Plan Comprehensive Capital Improvement Program/Resource Allocations Legal Debt Limit - 10% of Assessed Value of Real Property City Charter Each year, the City may issue General Obligation debt of $10-MILLION plus principal of debt retired in past year. For 2005 = $55,264,509 A fund balance equal to 8% - 12% of General Fund Revenues School Revenue Sharing Policy Economic Development Investment Partnership Policy and Process Identification of Revenues (TIF, special taxes, EDIP, GOF, etc.) Cash funding as a significant source of Capital Improvement Plan support Debt used for projects with significant value to long-term success of the community April 12, 2005 -5- CITY MANA GER 'S BRIEFING DEBT and FINANCIAL CAPACITY ITEM # 53779 (Continued) Comparing cities in Hampton Roads, Virginia Beach has the lowest debt per capita: Population Debt Per Capita Chesapeake Hampton Newport News Norfolk Portsmouth Suffolk Virginia Beach 203,738 146,737 185,200 239,036 100,565 64,415 432,300 $ 2,127 2,026 2,396 2,022 2,157 2,217 1,833 The City's key financial advisory is Chester Johnson of Government Finance Associates. Debt guidelines are not absolute limits. The City must continue to evaluate the guidelines, compare to similar cities and adjust accordingly, An unplanned deterioration in ratios causes concern with the Rating Agencies. A significant decline in ratios, over time, could result in downgrade. Mrs. Phillips referenced a quote from Government Finance Associates correspondence of April 5, 2005: "If the City does not exceed the Median Debt Per Capita figures for Triple A municipalities with populations over 300,000 (presently $2,800 as reported by Standards and Poors), we believe that the Rating Agencies would be hard pressed to use Overall Net Debt Per Capita Load as a primary reason for not including the City among Triple A municipalities, " The Financial Advisor also referenced a new ratio: assessed value per capita. Recommendations - Debt Can handle additional debt not already planed Priorities must be set, to stay within policy guidelines With additional debt, must have additional revenues To maintain and improve rating, continue to use cash as significant capital funding source in addition to debt, Adhere to fund balance policy of 8 - 12%. Update Debt Policies a. Increase Debt per capita to $2,400 This provides only $124-MILLION 50% to Schools b, Decrease Debt Service to General Government Expenditures to 10% Track Assessed Value Per Capita Continue Responsible Management - Priorities Catheryn Whitesell, Director - Management Services, advised financial (or fiscal) capacity measures a government's ability to pay for services provided to its citizens, Capacity is about choices between service expansion, continuation or discontinuation, compensation increases or decreases, capital projects or services, new positions are fewer than revenue increases or decreases. There are four (4) primary sources offinancial capacity: Debt, Fund Balance (Capital Improvement Program projects and one-time purchases), Current Revenues (pay-as-you-go financing, support debt, support current programs) and Expenditures. Mrs, Whitesell displayed a graph entitled Outstanding Amount of Existing Debt, Proposed Capital Improvement Program (CIP) Debt (in Millions of Dollars) With the proposed CIP, the debt will be $903- Million to $982-MILLION For the most part, fund balance usage is shown directly in the Capital Improvement Program to support various projects, The Comprehensive Annual Financial Report (CAFR) shows the fund balance of each fund at the end of the fiscal year. April 12, 2005 - 6- CITY MANA GER'S BRIEFING DEBT and FINANCIAL CAPACITY ITEM # 53779 (Continued) The FY 2006 Capital Improvement Program utilized $4.8-MILLION to fund projects. The Schools will get Reversion Funds in the $15 to $20-MILLION range. The Undesignated Fund Balance at June 30, 2000, is projected to be $5.3-MILLION beyond the minimum policy requirement Current Revenues All current revenues are reflected in the Operating Budget Divided among the various funds to support Council policies (dedications) or legal requirements (E-911 tax) or match other revenues (Sheriff) It can also be transferred to the Capital Improvement Program as Pay- As- You-Go financing It also supports all of the various programs in the operating budget Local Revenues Charges for Services, Fines and Forfeitures; and Permits, Privileges Fees and Regulatory Licenses Revenues derived from the program activities and used to support those programs Cannot set rates to generate a "profit" on these programs Use of money, property and miscellaneous revenues The Comparison of Revenue Growth indicates the only revenue changing is the Real Estate Tax, Sources of Capacity Expenditures Choose not to begin new programs or services Limit growth in the Capital Improvement Program Adopting a rehab and replacement only plan Issue less debt Only include projects with no additional operating expenses Evaluate current services to focus on truly 'core' services Scale back compensation practices April 12, 2005 - 7- CITY MANA GER 'S BRIEFING DEBT and FINANCIAL CAPACITY ITEM # 53779 (Continued) Other Sources: New Resource Decisions Increase Local Revenue Generation Special Service Districts (SSDS) and Business Improvement Districts (BIDS) Tax Credits Tax increment Financing (TIFs) Leveraging Private Resources Capacity Decisions Debt Capacity versus Cash Remaining debt capacity = $ 124-MILLION for the entire 6-year Capital Improvement Program period (FY 2005-06 through FY 2010-11) $39.9-MILLION in cash available in the City Council reserve Some capacity to use fund balance Some capacity to raise taxes Look to restrict expenditures to only "core" services Outstanding Issues Southeastern Parkway Old Beach Improvements School Modernization and Construction Fire Station Replacement and Renewal Backlog ofCIP Facility Maintenance and Replacement Open Space Local Transportation Mrs. Whitesell advised Virginia Beach City Schools requests the School Modernization Program be advanced. At the present time, only two or three schools per year can be modernized per year, The Virginia Beach City Schools has discussed the possibility of a major bond sale of $600-MILLION allowing the modernization to be completed within five to six years, The existing revenue stream derived from the Formula would be utilized to finance this project. Mrs. Phillips and Whitesell have discussed the possibility of making this presentation (Debt and Financial Capacity) to the School Board. April 12, 2005 - 8- CITY MANA GER 'S BRIEFING CITYVIEW RIGHT-OF-WAY ALIGNMENT FOR CONSTITUTION DRIVE EXTENSION 1:55 P.M. ITEM # 53780 Robert Scott, Director of Planning, advised the Town Center has been a very successful undertaking generating large amounts of public and private investment, On February 8, 2005, the City Council granted a change of zoning to City View One for property north of Bonney Road through which the Master Transportation Plan indicates Constitution Drive Extended runs. Mr. Scott displayed a slide of the City View property. The issues concern how circulation and access to the area will be achieved. The Adopted Master Transportation Plan requires a flyover at the end of Constitution Drive, The Virginia Department of Transportation (V DOT), at the City's request, initiated a study to identifY conceptual transportation improvement alternatives for the Pembroke Area. The study identified and evaluated, six (6) alternative alignments east of Independence Boulevard to determine the best alignment for a connection between the existing end of Constitution Drive and South Independence Boulevard as a means of accomplishing the objective of improving the road system in this area of the City, and particularly to provide better access to the Town Center, Two (2) alternative alignments, labeled "A" and "F" were identified as the most preferred: Alternative A ties into Constitution Drive on the north, crosses I-264,follows Edwin Drive and connects to Independence Boulevard Alternative F ties into Constitution Drive on the north, intersects with a realigned Bonney Road west of Bendix Road, crosses 1-264 and connects to Independence Boulevard northwest of Edwin Drive, On February 8,2005, the City Council granted a change of zoning to CityView One for property north of Bonney Road through which the Master Transportation Plan indicated Constitution Drive Extended runs. Both Alternative A and F impact the City View One development site. Proffer Five, approved with the change of zoning, indicates the City has until April 15, 2005, to notifY City View One of its intent to adopt an alignment for Constitution Drive Extended different than the one shown on the development plans submitted with City View's change of zoning application, If the City Council resolves to follow a different alignment, the proffer indicates City View One will modifY their development plan to accommodate the new alignment. Mr, Scott displayed depictions of the East Alternative A and F Effect of Proposed Flyover Remove 15% of traffic from I-264/Independence Boulevard Interchange area Will carry over 20,000 vehicles per day Provide good access to Pembroke Area and Town Center Facilitate movement of traffic throughout the area Improve bicycle and pedestrian connectivity within the Pembroke Area via multi-use paths At the present time, the traffic on Independence Boulevard is approximately 77,000 cars per day, April 12, 2005 -9- CITY MANA GER 'S BRIEFING CITYVIEW RIGHT-OF-WAY ALIGNMENT FOR CONSTITUTION DRIVE EXTENSION ITEM # 53780 (Continued) Conclusion Planning for a flyover today allows future City Councils to plan for future impacts Eliminating the flyover possibility today will remove all flexibility The City staff recommends Alternative A as the preferred general alignment for Constitution Drive Extended. Alternative A provides superior access to the Town Center, greater reduction in delays on Independence Boulevard, and higher potential for multi modal connects, such as improved transit options and bicycle and d pedestrian travel. Alternative A does not displace any residents and has greater potential to connect to 1-264, with an ability to add ramps and extend to the north of Virginia Beach Boulevard Dale Castellow, Traffic Planner - Comprehensive Planning, advised the Michael Baker Study was approximately $210,000; however, this study was financed through VDOT and did not involve City funding. April 12, 2005 - 10- BUDGET WORKSHOP 3:03 P.M. ITEM # 53781 Catheryn Whitesell, Director - Resource Management, advised the Quality Physical Environment area represents approximately 16.07% of the FY 2005-06 Operating Budget, Public Works: 5.74%. The majority of the funding (30%) 1S through the State maintenance of road funds Public Utilities: 4.12%. This department generates revenue to cover 100% of its costs Planning: 0.81 %. Primarily, their Budget encompasses personnel related issues Public Utilities and Stormwater generate approximately 42% of the total revenue in the business area. Storm Water, Water and Sewer and Planning are proposing fee increases. Storm Water is planning an ERU increase of approximately I-112ft a day, which is equivalent to a $55 rate per year. This increase will be utilized for water quality projects. The water and sewer fee increases (approximately $5,06 bimonthly) will be utilized to address aging infrastructure issues and capital construction cost increases. The Planning Department fee increases are predominately related to development issues. These funds will be utilized to renovate the Permits and Inspections office, create a better customer service flow and make improvements to automated services within the office, The fees will be comparable to other fees in Hampton Roads, The Quality Physical Environment area encompasses approximately 42.26% of the FY 2005-06 Capital Improvement Plan for FY 2005-06. Relative roadways, state contributions and Virginia Department of Transportation (VDOT) maintenance funds approximately 45% of the program. Urban Allocation Funds are based on population and are project specific. In addition, the City receives quarterly maintenance funding for State roads within the City. Core Services Development of the Comprehensive Plan Interpretation and enforcement of zoning and environment - related ordinances and environmental programs Review and approval of residential and commercial building and site plans, building, plumbing, electrical and mechanical permitting and inspections Design, construction, expansion and modification of water and sanitary sewer projects Assessing City's water supply needs and administering the Lake Gaston Water Supply project and the Norfolk Water Services contract Monitoring, maintenance and operation of the water and sanitary sewer systems Customer services associated with operation of the water and sanitary sewer systems April 12, 2005 - 11 - BUDGET WORKSHOP ITEM # 53781 (Continued) Core Services (Continued) Planning, design, project management, inspection and maintenance of Roadways, bridges, storm water drainage facilities Traffic control system Coastal projects Building capital projects Maintenance of navigable waterways Provision of residential solid waste and yard debris collection and disposal Centralizing the City's recycling effort Serving as the City contact with Southeastern Public Service Authority (SPSA) Maintenance of the City's rolling stock inventory Maintenance of buildings Enhancements/New Projects Planning Department Improvements supported by fee increases Thirteen (I 3) positions to provide waste collection services for new homes built since 1995 Eight (8) positions in lieu of contractual personnel in Public Works for sign and signal maintenance $ 7, 850,262 for new site for Resort Maintenance Facility (charter bonds and fund balance) $11,282,838 to reconstruct West Neck Roadfrom North Landing Road to Indian River Road (primarily charter bonds) $590,000 for Building Modernizations, Renewals, and Replacements (Fund Balance - Debt Service Fund) $344,037 for Waste Management Work Order system (Operating Budget) Seven (7) positions to manage "First Cities" program, which involves eight (8) Virginia Department of Transportation (VDOT) road projects and is funded by State project construction funds $131,750,019 for "First Cities" projects: Elbow Road Extended - Phase II; Indian River Road - Phase VII, Laskin Road - Phase II, Lesner Bridge Replacement, Princess Anne Road/Kempsville Road Intersection Improvements, Wesleyan Drive, Witch duck Road - Phase I, and Witchduck Road - Phase II April 12, 2005 - 12- BUDGET WORKSHOP ITEM # 53781 (Continued) Commitments Annualization of facility-related costs partially funded in FY 2004-05 Correction Center Juvenile Detention Center New Third Police Precinct Increase in Southeastern Public Service authority contract Public Works portion of Memorial Day Weekend costs Building maintenance and landscapingfor Resort Area and new projects Bayside Area Library First Landing Fire Station 3Ft Street Area project Lynnhaven Watershed Restoration Tom Leahy, Director of Public Utilities, advised concerning water and sewer the Department is not proposing to raise any of the connection fees this year, but he will prepare a report and advise City Council of the rates of the other Cities within the Region. April 12, 2005 - 13- BUDGET WORKSHOP LYNNHA VEN 2007 3:30 P.M. ITEM # 53782 Charles Meyer, Chief Operating Officer, advised the City, re the Water Quality Management Plan (focus primarily on the Lynnhaven River), is working closely with Lynnhaven 2007. In December, Tom Leahy, Director - Public Utilities, presented information relative Sanitary Sewer improvements. Barry Frankenfield, Executive Director, presented information relative the Lynnhaven River 2007, however, this is clearly integrated with all the water quality issues. If a water quality standard is to be established, the existence of the oyster determines a very clean river. East oyster transplanted canfilter fifty (50) gallons of water per day, Approximately 200, 000 citizens live in the Lynnhaven River Watershed (from Atlantic Avenue to Independence Boulevard and almost to Princess Anne Park), The Lynnhaven River 2007 is working closely with Public Works and Public Utilities, Their objectives have been to identify and reduce the source of contamination and restore lost habitats (oysters, subaquatic vegetation, vegetative buffers). As of January 21, 2005, the Virginia Department of Health, announced, there are 168 acres less open to oyster harvesting. than December 11, 2004. This provided the opportunity to devise a comprehensive watershed management plan. Unlike our wastewater systems, storm water runoff is not treated or filtered before it drains into our rivers, streams, lakes, bays and oceans, Whatflows into the storm drain eventually reaches treasured waterways: oil, gas and antifreeze, pet waste, car wash soap, lawn fertilizers and pesticides, household grease, litter, septic tank leks and even yard clippings. Plan "Seed" the river with millions of water-filtering oysters, This year over 700,000 oysters are going to be placed in the Lynnhaven River through the Chesapeake Bay Foundation, the Lynnhaven River 2007 and the Schools program with Oyster Keepers Promote a greater public awareness of the type and extent of the river's problems Increase the availability for programs and resources to enable homeowners to better protect the river from runoff Foster partnerships that apply public and private resources to the challenge of reducing pollution in the river Invest local, state andfederal government in the effort to restore the Lynnhaven River Lynnhaven River 2007 Andrew Fine Harry Lester Co-Chairs Commonwealth of Virginia u.s. Army Corps of Engineers Chesapeake Bay Foundation Congressional and General Assembly Members Coalition of Local Business and Civic Leaders April 12, 2005 - 14- BUDGET WORKSHOP STORMW ATER PROGRAM 3:50 P.M. ITEM # 53783 E. Dean Block, Director of Public Works, advised the Stormwater program has basically two major elements: water quantity and water quality. In 2000, City Council approved a Storm Water Utility increase of 3 if: in the Stormwater Utility for Storm water quantity improvements. Neighborhood Projects CIP 7-063 Sixty-three (63) original neighborhood projects identified Forty-two (42) added over 4 years to-date Sixty-eight (68) completed projects or those under design/construction Twenty-three (23) funded in 2005/06 - 06/07 Primary system CIP 7-067 Road Ditch Cleaning: Improved Cleaningfrom a 20-year cycle to an 8-year ditch cleaning cycle To-date: 63 miles cleaned 181 miles of Ditch identified in Off Road Inventory Water Quantity - Stand Alone CIP Projects 20 (twenty) projects completed since 2000 5 (five) projects under construction Major investments in quantity Still programmed and needed (CIP and Operations) North Lake Holly South Lake Holly North Beach Drainage Elizabeth River Shores Cape Henry Beach Drainage Aging Infrastructure Approximately 2082 Miles of pipe Currently 500 system cave-in work orders There are 52,060 storm water inlets in the City of Virginia Beach. April 12, 2005 - 15 - BUDGET WORKSHOP STORMW ATER PROGRAM ITEM # 53783 (Continued) Initial Water Quality Efforts (Inspired by Lynnhaven 2007) Projects Completed/Underway Water Quality Facilities Lake Rehabilitation Dredging Water Quality - Aeration/Circulation Street Sweeping Dry Weather Field Screening Lynnhaven Watershed Study Corps: Oyster Restoration Projects Water Quality Regulatory Issues - New Challenges State Involvement in Water quality increasing Environmental Protection Agency (EP A) involvement in Virginia Pollutant Discharge and Elimination System (VPDES) permit VPDES Permit requirements shift to performance measures Department of Conservation and Recreation (DCR) taking over VPDES Program from Department of Environmental Quality (DEQ) Construction Permitting Chesapeake Bay 2000 Total Maximum Daily Load is a numeric limit on the maximum amount a constituent is allowed to discharge per day (e.g. fecal coliform) One (1) for the Lynnhaven River Five (5) more in 2006 for Back Bay Total ofthirty-seven (37) water body segments identified as local impaired waters Water Quality Program Response Create Lake Maintenance Capital Improvement Program Capital Improvement Program for Thalia Creek Restoration (Pembroke) Create Capital Improvement program for Cost Participation w/ State and Federal Add Funding to Storm Water quality Enhancements (7-183) Add Funding to Lynnhaven Watershed Restoration Capital Improvement program (7-153) Continue United States Corps of Army Engineers projects April 12, 2005 -16- BUDGET WORKSHOP STORMW ATER PROGRAM ITEM # 53783 (Continued) Lake Management (CIP 7-152) would entail dredging, dam/spillway areas fifty-one (51), and exploring new technologies. There are four hundred twenty-three (423) lakes in the City of Virginia, fifty-three (53) of these have less than a 2.5-foot water depth. The majority of the dams and spillways were built as a part of the development, which simply dammed up a portion of the Lynnhaven, Six-year new funding would encompass $6,633,041. The Thalia Creek Tributary Restoration (CIP 7-160) entails restoration and creation of a Pembroke Best Management Plan (BMP). A joint permit is required and then public involvement, Between $50,000 and $100,000 has been invested from existing funding and about $800,000 is required for completion. Mr. Block displayed a graphic of this restoration, Water Quality Participation Projects - (CIP 7-159) Scope: participate in Short Term Corps Projects Proposed: Browns Cove Narrows Shoreline Restoration Windsor Woods Stream Bank Restoration $2,420,910 over six (6) years Additional Funding to Storm water Quality Enhancements - (CIP 7-183) Scope: Implement Stormwater Quality measures, explore new technologies Retrofit old city facilities $1,814,377 over six (6 years) Additional Funding to Lynnhaven Watershed Restoration (CIP 7-153) Public Outreach/Education Lake Aeration Stormwater Treatment Devices $900,000 over six (6) years The proposed funding plan entails a Storm water utility increase of 3t over three (3) years. Current FY 2005/06 FY 2006/07 FY 2007/08 6-year Total: 15.1 f/ Day/ERU 16.1 t/ Day/ERU 17.1 t/ Day/ERU 18.1 t/ Day/ERU $13,568,328 Councilman Schmidt encouraged Mr. Block to speak with Mr, Gill of the Department of Environmental Quality State fund which has been expanded to stormwater management to determine if funding is available as this has very low interest, Tom Leahy, Director of Public Utilities, advised their budget increased $5-MILLION this year. $3.75- MILLION is relative increased debt service and increased Pay-As-You Go CIP funding,. The other $1- MILLION is the compensation increase. The Capital Improvement Program is proposed to increase from $15-MILLION to $25-MILLION There is a 300% increase in replacement of aging sewer infrastructure, an increase (approximately $8-MILLION), Permanent generators are being placed in pump stations. Forty-five (45) portable pump generators will be purchased, as well as retrofitting all of the stations to have quick connects for response to the next major Hurricane, April 12, 2005 -17 - CITY COUNCIL COMMENTS AND LIAISON REPOR TS 4:40 P.M. ITEM # 53784 Councilman Maddox referenced: Ordinance to AMEND Chapters 1-2,6-3,6-5,6-10,6-30,6-114, and31-28 of the City Code re the definition of "Resort Season ".(DENIED by City Council on March 8, 2005) Mike Eason, Resort Services Co-ordinator - Convention and Visitors Bureau, clarified some of the concerns of City Council. The existing ordinance states "no ball playing on the beach between Memorial Day and Labor Day". The proposed ordinance defines the Resort Season as the time beginning May 1 and ending September 30, 2005 of each year, The staff is proposing the prohibition of ball playing be addressed only on the boardwalk and in the area from the water's edge to the lifeguard station. This particular area is very congested. The area between the boardwalk behind the lifeguard stands is approximately 250 feet and has more than ample room to play ball. The other area of concern was fishing, primarily surf casting, from the beach extending the prohibition between the hours of 10:00 A.M. and 4:00 P,M. weekdays and 10:00 A.M, and 6:00 P.M weekends. September is a busy time and the interface of hooks, sinkers and children is not a good mixture. The other restrictions re boat and kayak launching, which are allowed on the north end of the Beach, are not encouraged. The existing ordinance states between Memorial Day and Labor Day, the trash cans can only be placed on the streets between 6:00 A.M and 10:00 A.M. The City is proposing to extend this prohibition an additional month in the Fall and Spring. The City is becoming a year 'round destination. BY CONSENSUS, this Ordinance shall be RECONSIDERED and SCHEDULED for the City Council Session of April 26, 2005. ITEM # 53785 Council Members McClanan and Wilson, Liaisons to the Tax Assessment Task Force, referenced discussion of deferral of tax increases. During the meeting, Jerald Banagan, Real Estate Assessor, advised these increases could be deferred. The Task Force wished to place this on their list of recommendations for City Council. At the present time, only approximately twenty (20) residents utilize the Deferral Program. Jerald Banagan advised the Deferral is utilized for increases over five percent (5%) or the local ordinance may make this a larger amount. This is not for individuals who are currently under the Senior Citizen Program or land use acquisition, or have delinquent taxes. This Deferral, based on the City Council's ordinance, could be utilized by all property owners or owner-occupied sole residence. This Deferral may be until a transfer of the property, Councilman Diezel requested the City Attorney provide an analysis of this Deferral relative its interface with State law and the financial consequences. David Sullivan, Chief Information Officer, advised the problem with Deferral programs is the tax deferred becomes a lien on the property. If a mortgage is held on the property, the mortgage company says you are to keep your property free of liens. The reason many citizens do not consider the Deferral program is the mortgage company escrows and pays the taxes anyway to have the property 'free of liens ". The City probably does not have the potential to have a large number of citizens take advantage of this program. The program could benefit those individuals who do not qualifY under the Senior Citizen limits, Mr. Sullivan advised there has been a change to the State Code, effective July First, allowing the City Council to establish the interest rate as long as this rate does not exceed that of the Internal Revenue Service, April 12, 2005 -18 - CITY COUNCILCOMMENTS AND LIAISON REPORTS ITEM # 53785 (Continued) Councilman Maddox believed this more of an opportunity for Seniors. Many have their homes paid. Catheryn Whitesell, Director - Management Services, will provide staff to assist relative financial impacts and to determine the recommendation. ITEM # 53786 Councilman Maddox, Liaison to the Convention Center, referenced the Project Update Meeting held prior to the City Council Session. Councilman Maddox distributed his report. The Convention Center will not be open in early May due to logistical problems. Councilman Reeve referenced the proposed Budget increase of $700,000 for the Convention Center. Councilman Maddox advised as this project has continuedfor two (2) years, the State raised their Sales Tax, subsequent to the bidding of the project, This was a substantial impact on a project of this size. The sales tax increased 1f24 and thus increased the cost of material. Turner Construction is reporting the project will be substantially complete on June First, with a list of specific exemptions, However, the exhibit hall and other required spaces will be completed to allow the high school graduations previously scheduled to be held. Charles Meyer, Chief Operating Officer, advised Turner Construction has a guaranteed price contract, which has a provision contained therein, stating the Contract cannot be increased, but if they were subjected to increases as a result of change of statute, recognition could be requested. As there was a change in sales tax occurring after the contract, but before most of the purchasing under the contract was completed, this resulted in sales tax not anticipated. The City Attorney shall review and advise. ITEM # 53787 Mayor Oberndorf referenced correspondence from John D. Moss, President - Virginia Beach Taxpayers Alliance, relative not receiving an invitation to participate in a Leadership Team re Redevelopment, Said correspondence is hereby made a part of the record. The City Manager advised the Team is open to all citizens who wish to participate. Correspondence has been forwarded to Mr. Moss inviting his participation and stating the date of the first meeting on Wednesday, April 27, 2005, 5:30 P.M. - 7:00 P.M., Building 19. ITEM # 53788 Council Lady McClanan referenced: Resolution REQUESTING that the Commonwealth Transportation Commissioner REFUSE applications of Adams Outdoor Advertising re permits to cut trees and other vegetation in the right-of way of Virginia Beach Boulevard between Rosemont Road and Lynn Shores Drive and to schedule a Public Hearingfor interested citizens to state their views. (ADOPTED: April 5, 2005). The Virginia Department of Transportation (VDOT), in their telephone call to Council Lady McClanan and correspondence to Deputy City Attorney Macali, concurs re the Commonwealth not having jurisdiction concerning cutting the trees, The Commonwealth will notifY Adams Outdoor Advertising re they need to submit the permit application to the City of Virginia. April 12, 2005 -19 - AGENDA RE VIE W SESSION 5:10 P.M. ITEM # 53789 G.1,2, PROCLAMATION IN RECOGNITION April2005 National Records and Information Management Month April 1 0 - 16, 2005 National Library Week These PROCLAMATIONS shall be withdrawn to be presented in a more Informal Setting. ITEM # 53790 J.1, Ordinance to AMEND City Code by adding SS 7-71, 7-72 and 7-73 re regulating the rental and use of Surreys in the Resort Area The City Attorney distributed Revisions to the Ordinance: Ordinance to AMEND City Code by adding S 7-71 re regulating the rental and use of Surreys in the Resort Area, Ordinance approving and adopting a Policy pertaining to the rental of Surreys in the Resort Area, The administrative provisions have been removed from the Ordinance and placed in a Policy. Thus, the City Code will not be as voluminous with administrative provisions. Nothing has changed relative substance. Michael Eason, Resort Services Co-ordinator - Convention and Visitors Bureau, will present information during the Formal Session. A different scenario will be presented concerning the number of surreys and the method of issuing the permits. ITEM # 53791 J.7. ResolutionAPPOINTINGJAMIEE.K. TYLER, AIMEE E. KNAPP and NELL L. FORD as Assistant City Attorneys The City Attorney distributed an AMENDED Resolution adding a third Attorney (Nell Ford). ITEM # 53792 BY CONSENSUS, thefollowingshall compose the CONSENT AGENDA: ORDINANCES/RESOLUTIONS J.2. Ordinance to ACCEPT and APPROPRIATE $5,316 to the Fire Department from the Virginia Emergency Management Department as reimbursement for "Determined Promise" exercise April 12, 2005 - 20- AGENDA RE VIE W SESSION ITEM # 53792 (Continued) J.3. Ordinance AUTHORIZING reimbursement of legal fees and expenses incurred by a Sheriff's Deputy in his defense of a criminal charge arising out of the performance of his official duties dismissed by the court J.5. Resolution A UTHORIZING the City Manager EXECUTE a Memorandum of Understanding (MOU) with Virginia Aquarium and Marine Science Center Foundation, Inc. and Virginia Wesleyan College re maintenance, operation, and use of a Research Vessel for the Aquarium's stranding operations J. 6. Resolution AUTHORIZING afirst Supplemental Support Agreement between the Virginia Beach Development Authority (VBDA) and the City; and, A UTHORIZING the execution of associated financing documents J. 7, ResolutionAPPOINTINGJAMIEE.K. TYLER, AIMEE E. KNAPP and NELL FORD as Assistant City Attorneys Council Lady McClanan will vote NAY on Item J.6. J. 7 will be ADOPTED, AS AMENDED, BY CONSENT. April 12, 2005 - 21 - AGENDA RE VIE W SESSION ITEM # 53793 K4. Application of LAND & BUILDING IV. L.G. for the Modification of Proffer Number 1 re Conditional Change of Zoning (approved by City Council on March 28,2000 Troy A. Titus), re a building strip mall at 5221 Indian River Road (DISTRICT 1- CENTERVILLE) Councilman Dyer expressed concern relative access. Stephen White, Planning, advised currently the access to this site is off Indian River Road and will remain for this use. In addition, at the request of Traffic Engineering, there shall be an access to the back of the site, going through and connecting to the Golden Coral Parking Lot, which will then exit to Kempsville Road. Traffic Engineering believed this a better distribution of traffic. This item will be DEFERRED INDEFINITELY, to devise a traffic solution, ITEM # 53794 BY CONSENSUS, the following shall compose the PLANNING BY CONSENT AGENDA: K1. Variance to 94.4 (b) of the Subdivision Ordinance that requires all newly created lots meet all the requirements of the City Zoning Ordinance (CZO) for JOHN C. AND MARY VOGEL TRUST to subdivide a family parcel at 2388-2400 London Bridge Road(DISTRICT 7 - PRINCESS ANNE) K2, Application of ENOCH BAPTIST CHURCH for a Modification of a Conditional Use Permit (approved by City Council on and December 16, 1997, and August 28, 2001) to allow a child care center in conjunction with the church. at 5641 Herbert Moore Road (DISTRICT 2 - KEMPSVILLE) K3. Application of GOOD SAMARITAN EPISCOPAL CHURCH for a Modification of Condition Number 5 of a Conditional Use Permit (approved by City Council on December 13, 1976, and November 9, 2004) re certain level of improvements to the adjacent right-o.f-way at 848 Baker Road (DISTRICT 2 - KEMPSVILLE) K4. Application of LAND & BUILDING IV. L.G. for the Modification of Proffer Number 1 re Conditional Change of Zoning (approved by City Council on March 28,2000 Troy A. Titus), re a building strip mall at 5221 Indian River Road (DISTRICT 1- CENTERVILLE) K5. Application of MICHAEL J. & HELEN V. STANDING /FOGGS SEAFOOD CORPORATION re the enlargement of a Nonconforming Use to enlarge the existing free standing restaurant at 415 Atlantic Avenue (DISTRICT 6 - BEACH) April 12, 2005 - 22- AGENDA RE VIE W SESSION ITEM # 53794 (Continued) K. 6. Application of RICK GRAHAM for a Conditional Use Permit re automotive repair garage within an existing building in the Owls Creek Commerce Center at 1228 Jensen Drive (DISTRICT 6 - BEACH) K. 7, Application of JAMES E. MILLER for a Conditional Use Permit for a bulk storage yard at 593 South Birdneck Road (DISTRICT 6 - BEACH) Item K.4 will be DEFERRED INDEFINITELY, BY CONSENT. Council Lady McClanan shall vote NAY on Item K.5 (Standing/Foggs Seafood) April 12, 2005 - 23- ITEM # 53795 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: Community Policy and Management Team - CSA At Risk Community Services Board Francis Land House Board of Governors Health Services Advisory Board Human Rights Commission Investment Partnership Advisory Committee - PPEA Minority Business Council Open Space Committee Parks and Recreation Commission Performing Arts Theatre Advisory Committee Personnel Board Shore Drive Advisory Committee The Planning Council Towing Advisory Board Three (3) Assistant City Attorneys LEGAL MATTERS: Consultation with legal counselor briefings by staff members, consultants, or attorneys pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by counsel pursuant to Section 2.2-3711 (A)(7). Jonathan W Walker v. Paul Terhune and Matthew Greenlee Upon motion by Council Lady Wilson, seconded by Councilman Wood, City Council voted to proceed into CLOSED SESSION (5:27 P.M.). April 12, 2005 - 24- ITEM # 53795 (Continued) Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt, RonA. Villanueva, Rosemary Wilson andJames L. Wood Council Members Voting Nay: None Council Members Absent: None (Closed Session: 5:27 P.M. - 5:50 P.M.) (Dinner: 5:50 P.M. - 6:00 P.M.) April 12, 2005 - 25 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL April12, 2005 6:10 P.M. Mayor Meyera E. Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, April 12, 2005, at 6: 1 0 P.M Council Members Present: Harry E. Diezel, Robert M Dyer, 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 INVOCATION: Pastor Mark Rueter Foundry United Methodist 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 andfile 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. April 12, 2005 - 26- Item V-E. CERTIFICATION OF CLOSED SESSION ITEM# 53796 Upon motion by Councilman Dyer, seconded by Councilman Reeve, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt 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, Robert M Dyer, 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 April 12, 2005 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 # 53795, page 23, 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. ~/~ uth Hodges Smith, MMC City Clerk April12,2005 -27- Item V- F.1. MINUTES ITEM #53797 Upon motion by Councilman Schmidt, seconded by Council Lady Wilson, City Council APPROVED the Minutes of the SPECIAL FORMAL SESSION of March 29, 2005. Voting: 7-0 Council Members Voting Aye: Harry M. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Richard A. Maddox, Mayor Meyera E. Oberndorf, Peter W. Schmidt, Council Members Voting Nay: None Council Members Abstaining: Jim Reeve, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Absent: None Councilman Reeve ABSTAINED, as he was out of the country on a working vacation. Councilman Villanueava ABSTAINED, as he was on family vacation. Council Lady Wilson ABSTAINED, as she was in Richmond Councilman Wood ABSTAINED as he was touring on the USS Roosevelt April 12, 2005 - 28- Item V-F.2. MINUTES ITEM #53798 Upon motion by Councilman Schmidt, seconded by Council Lady Wilson, City Council APPROVED the Minutes of the INFORMAL and FORMAL SESSIONS of April 5, 2005. Voting: 10-1 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, 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: Reba S. McClanan Council Members Absent: None April 12, 2005 - 29- Item V-G.1.2. MAYOR'S PRESENTATIONS ITEM #53799 PROCLAMATION IN RECOGNITION April 2005 National Records and Information Management Month April 10 -16,2005 National Library Week These PROCLAMATIONS shall be withdrawn to be presented in a more informal setting. April 12, 2005 - 30- Item V-G.3. MAYOR'S PRESENTATIONS ITEM #53800 Councilman Diezel introduced Troy Clifton, President of the Tim Miller Foundation and Tournament Director - Virginia Beach Open. Mr. Clifton presented the Mayor and each Member of City Council with a Golf Cap. Mr. Clifton encouraged the attendance of the Mayor and Members of City Council, Mr. Clifton advised the Virginia Beach Open is scheduled April 18 through 24, 2005. The First Tee of Hampton Roads is the main beneficiary. Approximately 500 to 600 children are expected to attend the youth clinic on Saturday, April 16, 2005. April 12, 2005 - 31 - Item V-H. ADOPT AGENDA FOR FORMAL SESSION ITEM #53801 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION April 12, 2005 - 32- Item V-J. ORDINANCES/RESOLUTIONS ITEM # 53802 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council APPROVED IN ONE MOTION Items 2, 3, 5, 6 and 7(AS REVISED) of the CONSENT AGENDA. Item J 7 shall be ADOPTED, BY CONSENT, AS REVISED. Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 Council Lady McClanan voted a VERBAL NAY on item J6 (Support Agreement - VBDA) April 12, 2005 - 33- Item V-J.l. ORDINANCES/RESOLUTIONS ITEM # 53803 Michael Eason, Resort Services Co-ordinator - Convention and Visitors Bureau, advised a stakeholders meeting was conducted on March Fourth at the Pavilion, Significant changes have been made to the proposed Ordinance, The Staff met with the Surrey operators on March Twenty-fifth to review these changes. There shall be a limit of seven (7) surreys per location; however, the current number of surreys will be which was in place the date of adoption of the Ordinance will be 'frozen". Currently, there are one hundred eighty-five (185) surreys. Leasing a surrey, without a permit, will incur a Class 3 misdemeanor. It shall be unlawful for any person to store or park any surrey on city property, The permit fee has been reduced to $10.00; however, the majority of surrey owners are not in agreement with this fee. Lieutenant Frank Genova, Second Precinct, is in attendance. The following registered in OPPOSITION: Dorothy Patterson, 1166 Woodcock Lane, Phone: 422-3337, co-owner - D & R Rentals RichardKowalewitch, 1166 WoodcockLane, Phone: 422-3337, co-owner-D&RRentals. Mr. Kowalewitch believed the Police Department could handle any the enforcement. The City Attorney distributed Revisions to the Ordinance: Ordinance to AMEND City Code by adding ~ 7-71 re regulating the rental and use of Surreys in the Resort Area. Ordinance approving and adopting a Policy pertaining to the rental of Surreys in the Resort Area. The administrative provisions have been removed from the Ordinance and placed in a Policy. Thus, the City Code will not be as voluminous with administrative provisions. Nothing has changed relative substance, Upon motion by Councilman Maddox, seconded by Councilman Schmidt, City Council DEFERRED until the City Council Session of May 24, 2005: Ordinance to AMEND City Code by adding ~ ~ 7-71, 7-72 and 7-73 re regulating the rental and use of Surreys in the Resort Area This deferral will enable further review, Copies of the City Attorney's revised ordinances shall also be distributed to the Surrey Operators. April 12, 2005 - 34- Item V-J.l. ORDINANCES/RESOLUTIONS ITEM # 53803 (Continued) Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 April 12, 2005 - 35 - Item V-J.2. ORDINANCES/RESOLUTIONS ITEM # 53804 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED: Ordinance to ACCEPT and APPROPRIATE $5,316 to the Fire Department from the Virginia Emergency Management Department as reimbursement for "Determined Promise" exercise Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 April 12, 2005 1 2 3 4 5 6 7 8 AN ORDINANCE TO ACCEPT AND APPROPRIATE $5,316 TO THE VIRGINIA BEACH FIRE DEPARTMENT FROM THE VIRGINIA DEPARTMENT OF EMERGENCY MANAGEMENT AS REIMBURSEMENT FOR "DETERMINED PROMISE" EXERCISE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 That $5,316 in funds is hereby accepted from the Virginia 11 Department of Emergency Management and appropriated to the Fire 12 Department's FY 2004-05 Operating Budget, for costs associated 13 with the Determined Promise Exercise. 14 BE IT FURTHER ORDAINED: That estimated revenue from the 15 state is hereby increased by $5,316 in the 2004-2005 Operating 16 Budget. 17 Requires an affirmative vote by a majority of members of 18 the Ci ty Council. 19 20 Adopted by the Council of the City of Virginia Beach, 21 Virginia on the 12th day of April , 2005. CA9585 GGjOrdresjPrposedjDetermined R-1 March 30, 2005 promise.doc APPROVED AS TO CONTENT: , 2fis~ AP~~ ;i/7v;;JENCY' City Attorney's Office Page 1 of 1 Donna Brehm - Re: Reimbursement for DP04 Exercise Overages From: To: Date: Subject: CC: Gregory Cade Hampton, Hart, 2/10/2005 1:58 PM Re: Reimbursement for DP04 Exercise Overages Brehm, Donna; Marchbank, Mark I will have Mark get the information to you. Thanks >>> "Hart, Hamptonll <Hampton.Hart@vdem.virginia.gov> 02/10/05 01:22PM >>> Chief Cade, As a result of your participation in last year's Determined Promise Exercise, your jurisdiction incurred costs in excess of the ODP Grant funds passed to you to support your activities. The opportunity has now presented itself for the Commonwealth to reimburse you for the $5,316.00 that you identified in your exercise expense report. If you would like to receive the reimbursement for those expenses, please provide the receipts to me NL T 15 February 2005. Sorry for the late notiCe but this is a time sensitive request. If you are not interested in receiving the reimbursement, please indicate so by the aforementioned date. If you have any questions, please do not hesitate to contact me. Sincerely, H3 Hampton H. Hart, Jr. Commonwealth Exercise Training Officer Preparedness, Training and Exercises Division Virginia Department of Emergency Management 10501 Trade Court Richmond, Virginia 23236 . (804) 897 -6500, Ext 6593 (804) 897-6556 (Fax) PLEASE NOTE MY NEW ADDRESS: <mrlilto:Hrlmntnn H::Jrt(@,rn",m vin:dRis. ~ Hampton.Hart@vdem.virginia.gov ad majorem Dei gloriam file://C:\Documents %20and %20Settings\dbrehm\Local %20Settings\T emp\GW} 00004.HTM 2/1 0/2005 [Qffiiiij3l~bi!E OD~_ ~~ERC~~~E~c~&i~~5?E~~cH:dOc:==-= ::_ ===: : : .~~=-=-..::--=---===--' paaEL1 " /) ,/7 I' GRANT NAMEIYEAR: I ODP .1 EXERCISES I EIN# I 0722061 I AGENCYILOCALITY: City of Virginia Beach TELEPHONE #: 757-427-4228 CONTACT PERSON: Mark Marchbank TELEPHONE #: Denlltv Coordinator Emerszencv Manae:ement 757-427.8466 ADDRESS: 2408 Courthouse Drive VirJrlnia Beach. VA 23456 EMAIL ADDRESS: mmarchba@vbgov.com GRANT/AWARD EXERCISE DEVELOPMENT COST APPROVED AMOUNT GRANT INVOICE , BALANCE DATE COST/ J # TOTAL YES NO GRANT AWARD CATEG. UNIT UNITS COST $9,000 Field Exercise Planning $30.00 30 $900.00 $8100 9/15/04 - - Staff Support $30.00 720 $720.00 $7380 9/15/04 - - Logistics and Setup $30.00 8 $240.00 $7140 9/15/04 - - Planning & Development $30.00 32 $960.00 $6180 9/15104 - - Exercise Play $30.00 362 $10,860 -$4080 9115104 - Refreshments 1 $636.00 -$4716 9/15/04 - - - - - - - -'- I APPROVED EXCEPTIONS (MUST BE APPROVED BY VDEM): I OJPGRANTMGNT.REV.I.09I14/2004 - 36- Item V-J.3. ORDINANCES/RESOLUTIONS ITEM # 53805 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED: OrdinanceA UTHORIZING reimbursement of legal fees and expenses incurred by a Sheriff's Deputy in his defense of a criminal charge arising out of the performance of his official duties dismissed by the court Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 April 12, 2005 AN ORDINANCE AUTHORIZING THE REIMBURSEMENT OF A SHERIFF'S DEPUTY FOR LEGAL FEES AND EXPENSES INCURRED BY HIM IN HIS DEFENSE OF A CRIMINAL CHARGE THAT WAS DISMISSED BY THE COURT WHEREAS, a Virginia Beach sheriff's deputy was charged with assault and battery for actions arising out of the performance of his official duties; WHEREAS, at a trial held in the Virginia Beach General District Court on December 16, 2004, the charge against the officer was dismissed; WHEREAS, in the defense of said charge, the officer incurred legal fees and expenses in the amount of $1,500, and has requested the City to reimburse him for such fees and expenses; WHEREAS, Section 15.2-1171 of the Code of Virginia provides that " (i) f any law-enforcement officer shall be investigated, arrested or indicted or otherwise prosecuted on any criminal charge arising out of any act committed in the discharge of his official duties, and no charges are brought, the charge is subsequently dismissed or upon trial he is found not guilty, the governing body of the jurisdiction wherein he is appointed may reimburse such officer for reasonable legal fees and expenses incurred by him in defense of such investigation or charge"; WHEREAS, the City Attorney's Office has reviewed the circumstances of this case, assessed the itemized bill submitted by the officer's legal counsel, and determined that the legal fees and expenses incurred by the officer are reasonable. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the Sheriff is hereby authorized to expend funds in the amount of $1,500 from the FY 2004-05 Operating Budget of the Sheriff's Office for the purpose of reimbursing a sheriff's deputy for legal fees and expenses incurred by him in his defense of a criminal charge brought against him arising out of the performance of his official duties. Adopted by the Council of the City of Virginia Beach, Virginia, on the 12th day of April , 2005. CA-9581 HjGGjordresjsheriff.legalfees.ord.doc R-1 March 24, 2005 ~~~ APPROVED AS TO LEGAL SUFFICIENCY: ~-~~ City orne' fice APPROVED AS TO CONTENT: 2 -37- Item V-J. 4. ORDINANCES/RESOLUTIONS ITEM # 53806 Attorney R. E. Bourdon, Phone: 499-8971, represented the City View Development Team, and stated the team is not in favor of either alignment, but continuing the alignment in the current Master Street and Transportation Plan and the current Capital Improvement Program. The road through City View has been designed at 100 feet width, If Alignment A were chosen, Attorney Bourdon requested this be 100 feet maximum. Robert Miller, IIL President - Visions, 5077 Ralph Boulevard, Phone: 490-9264, endorsed Alternative F with further study oftheflyover at 1-264, Cecil V. Cutchins, 829 Greentree Arch, President of Olympia Development Corporation and developer of the Convergence Center, spoke in support of Alternative F Attorney Les Watson, One Columbus Center, Phone: 497-6633, represented the developers of the Convergence Center, supported completion of Constitution Drive extension. Tom Rucker, 1253 East Bay Shore Drive, Pone: 417-8152, President of Central Business District Association, supportedflyover at 1-264 and completion of Constitution Drive extension, critical to build the transportation infrastructure to serve the Central Business District. William Bailey, 4841 Rosecrofl Street, represented the Virginia Beach Professional Firefighters Association and his family located in Kempsville. The Association is opposed to any diversion of traffic down Edwin Drive. Upon motion by Councilman Wood, seconded by Councilman Dyer, City Council REMOVED from the Agenda: Resolution re Constitution Drive Extended: a. Alternative "A": ties into Constitution Drive on the north, crosses 1-264, follows Edwin Drive and connects to Independence Boulevard b, Alternative "F": ties into Constitution Drive on the north, intersects with a realigned Bonney Road west of Bendix Road, crosses 1-264, and connects to Independence Boulevard northwest of Edwin Drive Staff to take Comprehensive look at all options re Constitution Drive and suggested flyovers. April 12, 2005 - 38- Item V-J.4. ORDINANCES/RESOLUTIONS ITEM # 53806 (Continued) Voting: 11-0 Council Members Voting Aye: Harry E. Diezel, Robert M, Dyer, 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 April 12, 2005 - 39- Item V-J. 5. ORDINANCES/RESOLUTIONS ITEM # 53807 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED: Resolution A UTHORIZING the City Manager EXECUTE a Memorandum of Understanding (MOU) with Virginia Aquarium and Marine Science Center Foundation, Inc. and Virginia Wesleyan College re maintenance, operation, and use of a Research Vessel for the Aquarium's stranding operations Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, 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 April 12, 2005 1 2 3 4 5 6 7 8 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE VIRGINIA AQUARIUM AND MARINE SCIENCE CENTER FOUNDATION, INC. AND VIRGINIA WESLEYAN COLLEGE REGARDING THE MAINTENANCE, OPERATION AND USE OF A 42-FOOT RESEARCH VESSEL 9 WHEREAS, the Virginia Aquarium and Marine Science Center 10 Foundation, Inc. (~Foundation") has or will shortly contract for 11 the purchase of a 42-foot vessel (~Vessel") which will be used 12 to support the stranding, collection and research operations of 13 the Virginia Aquarium and Marine Science Center (the 14 ~Aquarium"); and 15 WHEREAS, Virginia Wesleyan College (the ~College") has 16 begun, or will shortly begin, to offer courses of instruction in 17 marine science, oceanography and related subjects and wishes to 18 use the Vessel, on a part time basis, to facilitate and enhance 19 the level of instruction it is able to offer its students, and 20 the College has offered to contribute to the cost of acquiring 21 and operating the Vessel, in return for the right to use it on a 22 part time basis, as a part of its course of instruction; and 23 WHEREAS, the Foundation is willing to permit the College to 24 use the Vessel, on a part time basis, subject to the conditions 25 set forth in the Memorandum of Understanding; and 26 WHEREAS, the City will allow the Vessel to be docked at 27 public property located at the Aquarium; 28 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY 29 OF VIRGINIA BEACH, VIRGINIA: 30 The City Manager is hereby authorized and directed to 31 execute said Memorandum of Understanding on behalf of the City 32 of Virginia Beach. A sununary of the material terms for the 33 agreement is attached hereto and a true copy of the agreement is 34 on file with the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia on the 12th day of April , 2005. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: ~~.c~ (;j~' Museums and Cultural Arts CA-9588 H:\PA\GG\ORDRES\VAMSF-Wesleyan vessel.res.doc R-1 March 31, 2005 2 Memorandum of Understanding between City of Virginia Beach ("City"), Virginia Aquarium and Marine Science Center Foundation, Inc. ("Foundation") and Virginia Wesleyan College ("College") SUMMARY OF TERMS Purpose: Outlines the terms for docking, operating and maintaining a 42-foot boat (the "Vessel") at the Aquarium. The Vessel shall be used solely for educational, research, environmental, or marine animal rescue purposes, or for purposes related directly to the mission of the Aquarium or the College. Premises: Docks located on Owls Creek at the Aquarium. Term: This MOU may not be terminated, except for a violation of its terms, for one year following the date the Vessel is delivered to the Foundation at the Aquarium's docks in the City. Thereafter, any party may terminate the MOU for any reason upon giving sixty days prior written notice, to the other parties, of its intent to do so. Responsibilities of the City: · The City and the Foundation shall have sole authority to authorize use of the Vessel. · Select the crew for the Vessel. · In the event the Vessel is used for the sole benefit of the City, the City shall pay 100% of the operating costs. If the Vessel is used for the joint benefit, each party shall pay 50% of the operating costs. Responsibilities of the Foundation: · The Foundation will retain sole title and ownership of the Vessel. If the event of cancellation or termination of this MOU for any cause, the Foundation shall be under no obligation to reimburse the College for any portion of the funds the College has contributed to acquiring and equipping the Vessel. · The Foundation and the City shall have sole authority to authorize use of the Vessel. · Will pay 50% of the cost of insurance of the Vessel. · In the event the Vessel is used for the sole benefit of the Foundation, the Foundation shall pay 100% of the operating costs. If the Vessel is used for the joint benefit, each party shall pay 50% of the operating costs. Responsibilities of the College: . The College will pay the Foundation 50% of the Foundation's actual cost of acquiring the Vessel and of transporting it to the docks of the Aquarium. . The College will pay 50% of the cost of insurance of the Vessel. . Will pay 100% of the cost of any equipment added to the Vessel at its request and which is not included in the specifications. · The College will pay 50% of the cost of maintaining the Vessel, including all required maintenance, transportation and repair costs. · Will pay 50% of any costs incurred in docking the Vessel which will be permanently docked either on City property located at the docks of the Aquarium, or at the nearest convenient marina. . In the event the Vessel is used for the sole benefit of the College, the College shall pay 100% of the operating costs. If the Vessel is used for the joint benefit, each party shall pay 50% of the operating costs. · Will indemnify and hold harmless the Foundation and the City against any loss, damage, injury or death, and any expense, arising from or related in any way to the docking of the Vessel at the Aquarium. 2 MEMORANDUM OF UNDERSTANDING /'-........ G " ~ Between the City of Virginia Beach, the Virginia Aquarium & Marine Science Center Foundation, Ine. and Virginia Wesleyan College This Memorandwn of Understanding (the "MOU") made and entered into as of this _ of , 2005, by and between the city of Virginia Beach, a municipal corporation of the Commonwealth of Virginia (the "City"), the VIRGINIA AQUARIUM & MARINE SCIENCE CENTER FOUNDATION, INC., a Virginia non-stock corporation with its principal office at 717 General Booth Boulevard, Suite 1, in the City of Virginia Beach, Virginia (the "Foundation''), and VIRGINIA WESLEYAN COLLEGE, a private institution of higher education located at 1584 Wesleyan Drive in the City of Norfolk, Virginia (the "College"). RECITALS A. The Foundation has or will shortly contract for the purchase of a 42-foot vessel (the "Vesser') to be used to support the collection and research operations of the Virginia Aquariwn & Marine Science Center (the "Aquariwn"). The Vessel will be constructed and equipped in accordance with a proposal dated November 11, 2004, prepared by the Glass Boat Works, Inc., of Exmore, Virginia, a copy of which is attached to this MOU, marked "Exhibit A" and incorporated herein by reference. The estimated cost of the Vessel, including a 10% contingency, is $300,000. B. The College has begun, or will shortly begin, to offer courses of instruction in marine science, oceanography and related subjects and wishes to use the Vessel, on a part time basis, to facilitate and enhance the level of instruction it is able to offer its students. To that end, the College has offered to contribute funds to the cost of acquiring and operating the Vessel, in return for the right to use it on a part time basis, as a part of its course of instruction. C. The Foundation is willing to permit the College to use the Vessel, on a part time basis, subject to the conditions set forth in this MOU. D. The City will allow the Vessel to be docked at public property located at the Aquariwn. AGREEMENT 1. The College will pay to the Foundation, 50% of the Foundation's actual cost of acquiring the Vessel and of transporting it to the docks of the Aquariwn on Owls Creek in the City of Virginia Beach. The Foundation will, however, retain sole title and ownership of the Vessel, and in the event of cancellation or termination of this MOU for any cause, shall be under no obligation to reimburse the College for any portion of the funds the College has contributed to acquiring and equipping the Vessel, except as hereafter specifically provided. 2. The College will pay 100% of the cost of any equipment which is added to the Vessel at its request and which is not included in the specifications contained in Exhibit A attached. 1-639941.3 3. The College will pay 50% of the cost of maintaining the Vessel, including all required maintenance, transportation, and repair costs. 4. The College will pay 50% of the cost of insuring the Vessel with the coverages deemed necessary by the Foundation and the City, and the College will be named as an insured in every policy providing such coverages. 5. The Foundation will secure and maintain in full force and effect at all times during the term of this MOD all policies required herein. All policies of insurance required herein shall be written by insurance companies licensed to conduct the business of insurance in the Commonwealth of Virginia, and shall be acceptable to the City and the College, and shall carry the provision that the insurance will not be canceled or materially modified without thirty (30) days prior written notice to the City, the Foundation, and the College. In the event that the Vessel is destroyed or damaged beyond economical repair by an accident or casualty which is covered by such insurance and the decision is made by the Foundation not to repair or replace the Vessel, the College shall be entitled to share in the proceeds of such insurance in the same proportion as the fair market value of the College's interest in the Vessel bears to the total fair market value of the Vessel at the time of the loss or destruction. 6. The College will pay 50% of any cost incurred in docking the Vessel which will be permanently docked either on City property located at the docks of the Aquarium, or at the nearest convenient marina. 7. The Foundation and the City, acting through the Director of the Aquarium or her designee, shall have sole authority to authorize use of the Vesse!. The Vessel shall be used solely for educational, research, environmental, or marine animal rescue purposes, or for purposes related directly to the mission of the Aquarium or of the College. At no time shall the Vessel be used for purposes that are primarily social or recreational in nature, or which are intended primarily to raise funds. Any third party that is permitted to use the Vessel shall execute a user permit and pay an appropriate fee sufficient to cover all costs associated with its use of the Vesse!. 8. In the event the Vessel is used solely for the benefit of the College or solely for the benefit of the City, the party for whose sole benefit the Vessel is used shall pay 100% of the operating costs. In the event the Vessel is used for the joint benefit of the College and the City, each party shall pay 50% of the operating costs. In the event that the Vessel is used partly for the benefit of a third party and partly for the benefit of either or both the College and/or the City, the operating costs shall be divided equally among those parties for whose benefit the Vessel was used. 9. The City, acting through the Director of the Aquarium or her designee, will select the crew for the Vesse!. 10. The responsibility of the parties to this agreement, as between the City and the Foundation, on the one hand, and the College, on the other, for loss, damage, injury or death arising out of the docking, mooring, use or possession of the Vessel shall be determined as follows: 1-639941.3 2 (a) The College shall be solely responsible for, and shall indemnify and hold wholly harmless the City, the Foundation, and their respective agents, employees, licensees, volunteers, servants, members, trustees, and officers from and against all loss, cost, damage and expense, including reasonable attorney fees and litigation costs, arising from death, personal injury, or loss of or damage to property, which occurs during the docking, mooring, or use of the Vessel by the College, or by its teachers, instructors, employees, students, or licensees, or by any other person, including any member of the crew, who is on or about the Vessel in connection with its use by or on behalf of the College, whether or not negligence or fault on the part of the Foundation or the City may have caused or contributed to such loss, damage, injury or death. (b) As between the Foundation and the College, the Foundation shall be solely responsible for, and shall indemnify and hold wholly harmless the College, and its agents, employees, teachers, instructors, students, and licensees, from and against all loss, cost, damage and expense, including reasonable attorney fees and litigation costs, arising from death, personal injury, or loss of or damage to property, which occurs during the docking, mooring, or use of the Vessel by the Foundation, or by its agents, employees, volunteers, licensees, trustees, or officers, or by any other person, including the crew, who is on or about the Vessel in connection with its use by or on behalf of the Foundation, whether or not negligence or fault on the part of the College may have caused or contributed to such loss, damage, injury or death. As between the City and the College, the City shall be solely responsible for and, (i) to the extent permitted by law without waiving its sovereign immunity and (ii) additionally, to the extent the loss, damage, injury or death is not covered by insurance secured by the Foundation under paragraphs 4 and 5 of this MOU, the City shall indemnify and hold wholly harmless the College, and its agents, employees, teachers, instructors, students, and licensees for all loss, cost, damage and expense arising from death, personal injury, or loss of or damage to property, which occurs during the docking, mooring, or use of the Vessel by the City or by its agents, employees, volunteers, licensees, trustees, or officers, or by any other person, including the crew, who is on or about the Vessel in connection with its use by or on behalf of the City. (c) Notwithstanding any other provision of this paragraph 10, the College, on the one hand, and the City and the Foundation, on the other, shall be jointly responsible for, and shall equally share (as between the College on the one hand, and the Foundation and the City, on the other) the responsibility for all loss, cost, expense, and liability, arising from death, personal injury, or loss of or damage to property, including the Vessel and the property of the parties hereto, which arises or occurs from any cause while the Vessel is being used jointly by the College and the Foundation, or by the College and the City. 11. The Vessel will be available for use by the College (i) on reasonable advance notice to the City, and (ii) whenever it is not needed by the Aquarium. The Foundation and the Staff of the Aquarium shall make every reasonable effort, in good faith, to accommodate requests by the College to use the Vessel, and shall deny any such request only when scheduling conflicts cannot be satisfactorily resolved. In the event that the staff of the Aquarium and the staff of the College are unable to agree on a request by the College to use the Vessel, the Director of the Aquarium shall decide the matter and her decision shall be final. Notwithstanding any provision in this MOD to the contrary, the City, acting through the Director of the Aquarium or her designee, 1-639941.3 3 reserves the right, in its sole discretion, to cancel or postpone the College's scheduled use of the Vesse!. 12. This MOU may not be terminated, except for a violation of its terms, for one year following the date the Vessel is delivered to the Foundation at the Aquarium's docks in the City. Thereafter, any party may terminate the MOD for any reason upon giving sixty days prior written notice to the other parties of its intent to do so; provided, that if this MOD is terminated by the Foundation or by the City for any cause other than a breach of the terms of this MOD by the College, the Foundation shall pay to the College a sum equal to the fair market value of the College's fInancial interest in the Vessel at the time of termination. In the event oftermination of this MOD for any cause, any equipment added to the Vessel at the request of the College, and that can be removed without damage to the Vessel, may be removed by the College, at its sole expense, within a reasonable time, upon reasonable advance notice to the Foundation and the City. Any equipment added or installed upon the Vessel at the request of the College that cannot be removed without damage to the Vessel, shall become the sole property of the Foundation upon termination of this MOD. Termination of this MOD shall have no effect on the liabilities of any party accruing prior to the date of termination. 13. Any notice required by this MOD to be given to the Foundation shall be given to the President, the Virginia Aquarium & Marine Science Center Foundation, Inc. 717 General Booth Boulevard, Suite 1, Virginia Beach, Virginia, 23451 with a copy to the Director, the Virginia Aquarium & Marine Science Center at the same address. Notices to the City shall be sent to the City Manager, Building 1, Municipal Center, Virginia Beach, Virginia, 23456. Any notice required by this MOD to be given to the College shall be given to Dr. Elizabeth Malcolm, Assistance Professor of Ocean and Atmospheric Sciences, Virginia Wesleyan College, 1584 Wesleyan Drive, Norfolk., Virginia, 23502 or to her successor. As evidence of their agreement to the terms and conditions set forth herein, the parties affix their authorized signatures hereto: 1-639941.3 4 THE CITY OF VIRGINIA BEACH BY: City Manager/Authorized Designee THE VIRGINIA AQUARIUM & MARINE SCIENCE CENTER FOUNDATION, INC. BY: ITS: VIRGINIA WESLEYAN COLLEGE By: ITS: Approved as to Content: Museums & Cultural Arts 1-639941.3 Approved as to Legal Sufficiency: City Attorney's Office Approved as to Legal Sufficiency: Counsel for the Foundation 5 NEWS RELEASE 717 General Booth Blvd. Virginia Beach, VA 23451 o VIRGINIA AQUARIUM FOR MORE INFORMATION: Joan Barns Virginia Aquarium 1757.437.62151 jmbams@VirginiaAquarium.com April 4, 2005 Virginia Aquarium & Marine Science Center and Virginia Wesleyan College Announce Partnership with New Research Vessel (Virginia Beach, VA) -In recognition of the American Zoo & Aquarium Association (AZA) 'Wonders of Water" national awareness campaign, the Virginia Aquarium & Marine Science Center and Virginia Wesleyan College rvwC) announced at a special ceremony held at the Aquarium April 1 a unique partnership. This collaboration will further research and conservation of Virginia's waters and the marine animals that make it their home. Officials from both organizations unveiled a rendering of a 42-ft research and education vessel that will be used by the VWC Department of Ocean and Atmospheric Science faculty and students as well as the Virginia Aquarium Stranding Team. The vessel will enhance Aquarium operations and activities, including collections, stranding response, research, release of rehabilitated animals and educational programming. At least seven VWC classes will use the research vessel for field trips including oceanography, marine biology, ecology, environmental chemistry, and environmental geology. 'What better classroom could you have than the Chesapeake Bay?" said VWC Assistant Professor Ocean and Atmospheric Science Elizabeth Malcom, Ph.D. "Students will be collecting marine organisms, sediment and water samples themselves with research quality equipment giving them invaluable hands-on experience. We also plan to use the vessel to expand research opportunities available to students who work independently with a faculty mentor. And we hope to begin new scientific collaborations between the college and the Aquarium. By joining these research efforts, our students can help to solve real problems, contributing to our knowledge of the ocean environment. " PaQe 2. Aauarium & VWC Research Vessel Aquarium Director of Research and Conservation Mark Swingle said, 'We are excited about our partnership with VWC and it resulting in a research vessel that will allow us to collect animals and explore parts of Virginia waters that we never could before. More importantly, this vessel represents our continued dedication and commitment to studying the precious marine life that lives off our coast and how human impact effects everyone." The Chesapeake Classic Boat will be custom made by Glass Boat Works Inc. of Exmore, VA. Its cost of nearly $300,000 will be equally shared by the Virginia Aquarium Foundation and VWC. Special features to support the needs of the research vessel include: . Expansive deck space, rear controls and dive support for aquatic animal collecting. . Tower, observation deck and full electronics will assist with marine mammal research. . Galley, v-berth and chart table will allow for short-term live aboard operations in coastal waters within a 500-mile range. During the announcement ceremony, Virginia Beach Mayor The Honorable Meyera E. Oberndorf unveiled a bright orange life ring that will be used on the vessel. In a symbolic gesture the mayor, along with Virginia Aquarium Executive Director Lynn Clements, Virginia Aquarium Foundation President Donald H. Patterson, Jr., VWC College President Billy Greer, Ph.D., Mr. Swingle, Dr. Malcom and invited guests, signed the life ring. The research vessel should take six months to build. The Virginia Aquarium is an accredited member of the AZA. The AZA 'Wonders of Water" campaign encourages families to learn about and conserve water. The program aims to help people understand that from the air we breathe to the food we eat, people and animals all depend on the ocean for survival. In its 2004 final report, the U.S. Commission on Ocean Policy commended public aquariums for their important role in education the public about ocean issues. April is officially designated as Zoo and Aquarium Month. Chartered in 1961 and affiliated with the United Methodist Church, Virginia Wesleyan College is a small, private four-year liberal arts institution whose 300-acre campus borders Norfolk and Virginia Beach. ### - 40- Item V-J. 6. ORDINANCES/RESOLUTIONS ITEM # 53808 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED: Resolution A UTHORIZING a first Supplemental Support Agreement between the Virginia Beach Development Authority (VBDA) and the City; and, AUTHORIZING the execution of associated financing documents Voting: 10-1 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, 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: Reba S. McClanan Council Members Absent: None April 12, 2005 RESOLUTION APPROVING A PLAN OF FINANCING WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, APPROVING CERTAIN DOCUMENTS PREPARED IN CONNECTION WITH SUCH FINANCING AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE SAME WHEREAS, the City of Virginia Beach, Virginia (the "City"), desires to undertake, in connection with the City of Virginia Beach Development Authority (the "Authority"), the financing of various public facilities from time to time, including, the replacement of the Pavilion Theater and the Convention Center, the construction of a parking facility for the Virginia Marine Science Museum, Open Space Site acquisition, construction of an Emergency Communications Operations Center, the construction of the Thirty-First Street parking garage, acquisition of the Ninth Street parking garage, the construction of the Town Center Block 10 and 12 garages, acquisition of a Revenue Assessment and Collection System and a City/School Human Resource Payroll System and the replacement of certain Communications Infrastructure and Fire Apparatus Equipment (collectively, the "2005A Capital Projects"); and WHEREAS, on June 24, 1993, there were issued $36,700,000 Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement (the "1993 Refunding Certificates"), the proceeds of which were used to refund (a) the 1987 Certificates of Participation in a Real Property Lease in the outstanding principal amount of $1,900,000 and (b) the 1990 Certificates of Participation in a Real Property Lease in the outstanding principal amount of $30,390,000; WHEREAS, it appears that the City can effect considerable savings by undertaking a refunding of a portion of the 1993 Refunding Certificates maturing on September 1 in the years 2005, 2006, 2007 and 2010 in the outstanding principal amount of $9,600,000 (the "Refunded Certificates" and, such refunding, together with the 2005A Capital Projects, the "2005A Project"): WHEREAS, the Authority, pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"), under which it is created, is authorized to acquire, improve, maintain, equip, own, lease and dispose of "Authority facilities," as defined in the Act, to finance or refinance such facilities, to issue its revenue bonds, notes and other obligations from time to time for such purposes and to pledge all or any part of its assets, whether then owned or thereafter acquired, as security for the payment of the principal of and interest on any such obligations; and WHEREAS, in furtherance of the purposes of the Act, the City requests the Authority to undertake the 2005A Project for the benefit of the City and to issue its Public Facility Revenue Bonds, Series 2005A, in the maximum aggregate principal amount not to exceed $110,000,000 (the "Bonds") to finance costs incurred or to be incurred in connection with the 2005A Project and the costs of issuing the Bonds; and WHEREAS, there have been presented to this meeting drafts of the following documents (the "Documents"), proposed in connection with the undertaking of the 2005A Project and the issuance and sale ofthe Bonds: (a) Second Supplemental Agreement of Trust draft dated April 4, 2005 (the "Second Supplemental Agreement"), supplementing the Agreement of Trust dated as of September 1, 2003, as previously supplemented, including the form the Bonds (collectively, the "Trust Agreement"), each between the Authority and Wachovia Bank, National Association, as trustee (the "Trustee"), pursuant to which the Bonds are to be issued and which is to be acknowledged and consented to by the City; (b) First Supplemental Support Agreement draft dated April 4, 2005, supplementing and amending the Support Agreement dated as of September 1, 2003 (the "Support Agreement"), each between the Authority and the City pursuant to which the City will make annual payments to the Authority in amounts sufficient to pay the principal of and interest on the Bonds; (c) Preliminary Official Statement draft dated Apri14, 2005, of the Authority relating to the public offering of the Bonds (the "Preliminary Official Statement"); and (d) Continuing Disclosure Agreement draft April 4, 2005, pursuant to which the City agrees to undertake certain continuing disclosure obligations with respect to the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The following plan for financing the 2005A Project is hereby approved. The Authority will issue the Bonds in a maximum aggregate principal amount not to exceed $110,000,000. The Authority will use the proceeds of the Bonds to finance the costs of the 2005A Project and the costs of refunding the Refunded Certificates and issuing the Bonds. Pursuant to the Support Agreement, the City will make Annual Payments and Additional Payments (as each is defined in the Support Agreement) to the Authority in amounts sufficient to amortize the Bonds and to pay the fees or expenses of the Authority and the Trustee. The obligation of the Authority to pay principal of and premium, if any, and interest on the Bonds will be limited to annual payments and additional payments received from the City. The Bonds will be secured by an assignment of the Annual Payments and certain Additional Payments due under the Support Agreement, all for the benefit of the holders of the Bonds. The obligation of the City to make Annual Payments and Additional Payments will be subject to the City Council making annual appropriations in amounts sufficient for such purposes. The plan of financing for the 2005A Project shall contain such additional requirements and provisions as may be approved by the City. 2. The City Council, while recognizing that it is not empowered to make any binding commitment to make appropriations beyond the current fiscal year, hereby states its intent to make annual appropriations in future fiscal years in amounts sufficient to make all payments due 2 under the Support Agreement and hereby recommends that future City Councils do likewise during the term of the Support Agreement. 3. The City Manager is hereby authorized and directed to execute the Documents (except for the Preliminary Official Statement), which shall be in substantially the forms submitted to this meeting, which are hereby approved, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the City Manager, his execution to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. 4. (a) In making completions to the Support Agreement, the City Manager, in collaboration with Government Finance Associates, Inc. and Government Finance Group, the City's financial advisors (the "Financial Advisors"), shall provide for Annual Payments in amounts equivalent to the payments on the Bonds, which shall be sold to the purchaser thereof on terms as shall be satisfactory to the City Manager; provided that the Annual Payments shall be equivalent to the Bonds maturing in installments ending not later than in 2025; having a true or "Canadian" interest cost not exceeding 6.5% (taking into account any original issue discount); and being sold to the purchaser thereof at a price not less than 99% of the aggregate principal amount thereof (without taking into account any original issue discount or premium). (b) The Bonds shall be sold by competitive bid in the principal amount determined by the City Manager, in collaboration with the Financial Advisors, and the City Manager shall receive bids for the Bonds and award the Bonds to the bidder providing the lowest "true" or "Canadian" interest cost, subject to the limitations set forth in the paragraph above. Following the sale of the Bonds, the City Manager shall file a certificate with the City Clerk setting forth the final terms of the Bonds. The actions of the City Manager in approving the terms of the Bonds shall be conclusive, and no further action shall be necessary on the part of the City Council. 5. The Preliminary Official Statement in the form presented to this meeting is approved with respect to the information contained therein pertaining to the City. The purchaser of the Bonds is authorized to distribute to prospective purchasers of the Bonds the Preliminary Official Statement in form deemed to be "near final," within the meaning of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the City Manager. Such distribution shall constitute conclusive evidence that the City has deemed the Preliminary Official Statement to be final as of its date within the meaning of the Rule, with respect to the information therein pertaining to the City. The City Manager is authorized and directed to approve such completions, omissions, insertions and other changes to the Preliminary Official Statement that are necessary to reflect the terms of the sale of the Bonds, determined as set forth in paragraph 4, and the details thereof and that are appropriate to complete it as an official statement in final form (the "Official Statement") and distribution thereof by the purchaser ofthe Bonds shall constitute conclusive evidence that the City has deemed the Official Statement final as of its date within the meaning of the Rule. 6. The City covenants that it shall not take or omit to take any action the taking or omission of which shall cause the Bonds to be "arbitrage bonds" within the meaning of Section 3 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations thereunder, or otherwise cause interest on the Bonds to be includable in the gross income for Federal income tax purposes of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision oflaw that may require the City at any time to rebate to the United States of America any part of the earnings derived from the investment of the gross proceeds of the Bonds. The City shall pay from its legally available general funds any amount required to be rebated to the United States of America pursuant to the Code. 7. The City Manager is authorized and directed to determine which of the Refunded Certificates, if any, shall be refunded. The Refunded Certificates to be refunded, if any, are specifically and irrevocably called for redemption on September 1, 2005. The Second Supplemental Agreement shall provide for notice of redemption to be given in accordance with the trust agreement and the resolutions providing for the issuance of the Refunded Certificates to the registered owners of the Refunded Certificates. 8. In the event the City Manager determines that it is in the City's best interest that all or a portion of the Refunded Certificates should be refunded, the City Manager and the Director of Finance, or either of them, are authorized and directed to execute an escrow deposit agreement (the "Escrow Agreement") between the City and The Bank of New York, as successor trustee for the Refunded Certificates (the "Escrow Agent"). The Escrow Agreement shall be in the form approved by the City Manager, in collaboration with the City Attorney and the City's bond counsel, and shall provide for the deposit and investment of a portion of the proceeds of the Bonds for the defeasance of the Refunded Certificates. The execution of the Escrow Agreement by the City Manager or the Director of Finance shall constitute conclusive evidence of such official's approval of the Escrow Agreement. The Escrow Agreement shall provide for the irrevocable deposit of a portion of the proceeds of the Bonds (the "Refunding Portion") in an escrow fund which shall be sufficient, when invested in noncallable, direct obligations of the United States Government (the "Government Obligations"), to provide for payment of principal of and interest on the Refunded Certificates; provided, however, that such Bond proceeds shall be invested in such manner that none of the Bonds will be "arbitrage bonds" within the meaning of Section 148 of the Code. The Escrow Agent is authorized and directed to execute an initial subscription form for the purchase of the Government Obligations and such other contracts and agreements necessary to provide for the defeasance of the Refunded Certificates as are approved by the City Manager or the Director of Finance, in collaboration with the City Attorney and the City's bond counsel. 9. Any authorization herein to execute a document shall include authorization to deliver it to the other parties thereto and to record such document where appropriate. 10. All other acts of the City Manager, the Director of Finance and other officers of the City that are in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bonds, the refunding of the Refunded Certificates and the undertaking of the 2005A Project are hereby approved and ratified. 11. This Resolution shall take effect immediately. ADOPTED: April 12, 2005 4 THE PROJECTS Generally. The Projects to be financed in whole or in part with the proceeds of the Series 2005A Bonds have been authorized by City Council either through the City's six-year Capital Improvement Program ("CIP") or through tax-increment financing programs. The CIP is revised annually and approved by City Council in conjunction with its adoption of the City's annual operating budget. For a more detailed discussion of the CIP, see the subsection "Capital Improvement Program" in Appendix A. The Projects approved in the CIP include the Convention Center Replacement, the Virginia Marine Science Museum parking project, the Pavilion Theater Replacement Project, the Open Space Site Acquisition program and the Thirty- First Street Parking Garage. The Ninth Street Parking Garage was approved as part of the current CIP on February 8, 2005. The Projects authorized under tax-increment financing programs are the Town Center Garage Block 10 and the Town Center Garage Block 12. At the times these projects were included in either the CIP or in a tax-increment financing program, City Council also addressed the need to ensure that adequate revenues would be available to the City to undertake these significant projects. With respect to the Convention Center Replacement, the Virginia Marine Science Museum parking project, the Pavilion Theater Replacement Project and the Open Space Site Acquisition program that were initially approved in the Fiscal Year 2001-02 CIP, City Council increased certain taxes that are projected to be sufficient to pay for such projects. The tax increases of 2.5% on the hotel tax (total tax of 8%, effective November 1,2001); 1 % on the restaurant tax (total tax of5.5%, effective July 1, 2001); and 5 cents on a pack of cigarettes (effective July 1, 2001). As of June 30, 2004, these increased taxes have generated an aggregate of $25,168,425 in additional revenue to support the costs of these projects. With respect to the two Town Center Parking Garage projects and the other public infrastructure facilities to be undertaken by the Authority and the City in the Town Center of Virginia Beach, the City created the Central Business District - South tax increment financing district. The tax increment revenues and other available revenues derived from this TIF district are anticipated to be sufficient to pay the costs of the public parking garages and the other public infrastructure facilities without resorting to a special service district tax that also could be levied in a Town Center special service district. As of June 30, 2004, $3,267,462 in tax increment revenues have been generated since this TIF district was created. The remaining projects (Ninth Street Parking Garage, Thirty-First Street Parking Garage, Emergency Communications Operation Center, Revenue Assessment and Collection System, City Human Resource Payroll System, Communications Infrastructure Replacement and Fire Apparatus Equipment), representing less than twenty-four percent of the currently projected total public facility revenue bond program fundings, will receive General Fund support from existing revenue sources. Description of the Projects. The aggregate cost of the Projects currently is estimated to be approximately $448.5 million. The City currently plans to finance approximately $362.9 million of these costs through the Authority's issuance of its public facility revenue bonds in several series. The Series 2003A Bonds were the first series issued under this plan, and the Series 2005A Bonds are the second series to be so issued. The remaining costs of Projects (approximately $85.6 million) will come from other funding sources, including state and federal funding, sale of property, general obligation bonds, General Fund appropriations and various fund balances, pay-as-you-go funding and private contributions. Prospective purchasers of the Series 2005A Bonds should note that the CIP is a six-year program and the funding sources and amounts are subject to modification over time at the discretion of City Council. The following sets forth brief descriptions of the Projects to be financed in whole or in part with the proceeds of the Series 2005A Bonds: Convention Center Replacement - This project provides for the replacement and relocation of the existing pavilion convention center on the same site. It will provide for approximately 150,000 square feet of exhibit hall, 25,000 square feet of meeting rooms and 32,000 square feet of ballroom space. Total estimated cost of this project is approximately $206,100,000. Thirty-First Street Parking Garage - This project is for the construction of an approximate 1,000 space parking garage, 26,000 square feet of retail space, a pedestrian bridge from the garage to a proposed hotel to be developed on the oceanfront and a public park adjacent to the hotel. Total estimated cost ofthis project is $31,508,684. Town Center Garage Block 10 - This project is for the construction of an approximate 840 space parking garage located in the Town Center district of the City. Total estimated cost of this project is $13,500,000. For a further discussion of the Town Center Project, see "Tax Increment Financing" and "Other Long-Term Obligations" in the section "City Indebtedness and Capital Plan" in Appendix A. Town Center Garage Block 12 - This project is for the construction of an approximate 305 space parking garage located in the Town Center district of the City. Total estimated cost of this project is $8,300,000. For a further discussion of the Town Center Project, see "Tax Increment Financing" and "Other Long-Term Obligations" in the section "City Indebtedness and Capital Plan" in Appendix A. Open Space Site Acquisition - This project provides for the acquisition of land for preservation and/or recreational purposes. Total estimated cost of this project is $51,840,000. Ninth Street Parking Garage - This project is for the acquisition of the condominium ownership of an existing parking garage in the City's oceanfront area. The 212,91O-square foot garage has 853 parking spaces on 4 levels. The City is purchasing 664 spaces on levels 2 through 4. These spaces had previously been leased by the City. The purchase is expected to result in lower annual costs. Total estimated cost of this project is $9,750,000. Virginia Marine Science Museum Parking - This project will provide a 500 space parking lot across the road from the museum and will address the safe crossing of pedestrians from the parking area to the museum. Total estimated cost ofthis project is $3,000,000. Emergency Communications Operation Center - This project is for the design and construction of the new Emergency Communications Center and Emergency Operation Center, to be located in the Municipal Center, on the north side of the intersection of Princess Anne Road 2 and James Madison Boulevard, across the street from the Public Safety Building. Total estimated cost ofthis project is $10,456,000. Revenue Assessment and Collection System - This project provides for a comprehensive, fully integrated tax system to replace the computer systems currently used to support tax revenue assessment and collection. This is a joint project of the Commissioner of Revenue, City Treasurer and Real Estate Assessor. Total estimated cost of this project is $11,095,900. Pavilion Theater Replacement - This project replaces the current 1,000 seat Pavilion Theater with a new theater at the Town Center and includes parking. Total estimated cost of this project is approximately $50,000,000. City Human Resource Payroll System - This project replaces the City's ten year old payroll system with a new information system utilizing current network infrastructure. Total estimated cost ofthis project is $10,283,106. Communications Infrastructure Replacement - This project will replace various components of the public safety communications infrastructure related to equipment associated with receiving, dispatching, transponding and answering public safety calls. Total estimated cost of this project is $24,850,000. Fire Apparatus Equipment - This project funds replacement of heavy equipment fire apparatus that costs over $50,000 and have a useful life of over ten years. Total estimated cost of this project is $17,870,000. 3 SECOND SUPPLEMENTAL AGREEMENT OF TRUST between CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY and W ACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee Dated as of , 2005 T ABLE OF CONTENTS Parties.......................................................................................................................... .................... 1 Recitals...................................................................................................................... .......................1 Granting Clause......................................................................................................................... ......1 ARTICLE I SECOND SUPPLEMENTAL AGREEMENT Section 1.101. Authorization of Second Supplemental Agreement. ...............................................2 Section 1.102. Definitions................................................................................................................2 Section 1.103. Rules of Construction. ...................... ........ ...... .................. ................... ....................3 ARTICLE II AUTHORIZATION, DETAILS AND FORM OF SERIES 2005A BONDS Section 1.201. Authorization of Series 2005A Bonds and Series 2005A Projects..........................3 Section 1.202. Details of Series 2005A Bonds. ...............................................................................4 Section 1.203. Form of Series 2005A Bonds...................................................................................5 Section 1.204. Securities Depository Provisions. .................................................................. ..........5 Section 1.205. Delivery of Series 2005A Bonds. ............................................................................6 ARTICLE III REDEMPTION OF SERIES 2005A BONDS Section 1.301. Redemption Date and Price. ......................................................... .................. .........6 Section 1.302. Selection of Series 2005A Bonds for Redemption. .................................................6 Section 1.303. Notice of Redemption. ........................................ .............. ..... ................ ..................6 ARTICLE IV APPLICATION OF PROCEEDS OF SERIES 2005A BONDS Section 1.401. Application of Proceeds of Series 2005A Bonds.....................................................6 ARTICLE V ESTABLISHMENT OF ACCOUNT Section 1.501. Series 2005A Project Account. ................................................................................ 7 (i) ARTICLE VI SECURITY FOR SERIES 2005A BONDS Section 1.601. Security for Series 2005A Bonds............... .............................................................. 7 ARTICLE VII MISCELLANEOUS Section 1.701. Limitations on Use of Proceeds. ....... .......................................................................7 Section 1.702. Limitation of Rights. ................................. ...................... ................... ......................8 Section 1.703. Severability. .............................................................................................................8 Section 1.704. Successors and Assigns............................................................................................8 Section 1.705. Applicable Law. ....................................................................................................... 8 Section 1.706. Counterparts.............................................................................................................8 Signatures...................................................................................................................... ................. ..8 Exhibit A - Form of Series 2003 Bond ....................................................................................... A-I (ii) 1---- This SECOND SUPPLEMENTAL AGREEMENT OF TRUST dated as of , 2005, by and between the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Authority"), and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, having a corporate trust office in Richmond, Virginia, as trustee (in such capacity, together with any successor in such capacity, herein called the "Trustee"), provides: WHEREAS, the Authority is a political subdivision of the Commonwealth of Virginia duly created by Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"); and WHEREAS, the Authority and the Trustee have entered into an Agreement of Trust dated as of September 1, 2003 (the "Master Agreement of Trust"), as supplemented by a First Supplemental Agreement of Trust dated as of September 1, 2003, pursuant to which the Authority has agreed to issue from time to time public facility revenue bonds or notes and use the proceeds thereof to finance costs incurred in connection with certain Projects (as hereinafter defined) for the benefit of the City of Virginia Beach, Virginia (the "City"); and WHEREAS, pursuant to a Trust Agreement dated as of October 1, 1987, as supplemented, between the City of Virginia Beach, Virginia, First Union Commercial Corporation and The Bank of New York, as successor trustee, there were issued on June 24, 1993, $36,700,000 Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement (the "1993 Refunding Certificates"), the proceeds of which were used to refund (a) the 1987 Certificates of Participation in a Real Property Lease in the outstanding principal amount of $1 ,900,000 and (b) the 1990 Certificates of Participation in a Real Property Lease in the outstanding principal amount of $30,390,000; WHEREAS, it appears that the City can effect considerable savings by undertaking a refunding of a portion of the 1993 Refunding Certificates maturing on September 1 in the years 2005,2006,2007 and 2010 in the outstanding principal amount of $9,600,000; WHEREAS, within the limitations of and in compliance with the Master Agreement of Trust, the City has requested the Authority to issue a series of public facility revenue bonds to finance the costs of the Series 2005A Projects (as hereinafter defined); and WHEREAS, the Authority has agreed to issue the Series 2005A Bonds (as hereinafter defined) in the aggregate principal amount of $ , secured by a pledge of the revenues and receipts derived from a Support Agreement dated as of September 1, 2003, as supplemented and amended by a First Supplemental Support Agreement dated as of , 2005 (the "Support Agreement"), between the Authority and the City, and the City has agreed, subject to the annual appropriation by the Council of the City, to make annual payments that will be sufficient to pay the principal of and premium, if any, and interest on such public facility revenue bonds as the same shall become due; and WHEREAS, the Authority has taken all necessary action to make the Series 2005A Bonds, when authenticated by the Trustee and issued by the Authority, valid and binding limited 1-- obligations of the Authority and to constitute this Second Supplemental Agreement a valid and binding agreement authorizing and providing for the details of the Series 2005A Bonds; NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows: ARTICLE I SECOND SUPPLEMENTAL AGREEMENT Section 2.101. Authorization of Second Supplemental Agreement. This Second Supplemental Agreement is authorized and executed by the Authority and delivered to the Trustee pursuant to and in accordance with Articles III and X of the Master Agreement of Trust. All terms, covenants, conditions and agreements of the Master Agreement of Trust shall apply with full force and effect to the Series 2005A Bonds and to the holders thereof, except as otherwise provided in this Second Supplemental Agreement. Section 2.102. Definitions. Except as otherwise defined in this Second Supplemental Agreement, words defined in the Master Agreement of Trust are used in this Second Supplemental Agreement with the meanings assigned to them in the Master Agreement of Trust. In addition, the following words shall have the following meanings unless a different meaning clearly appears from the context: "Escrow Agreement" shall mean the Escrow Deposit Agreement dated 2005, between the City and The Bank of New York. "Letter of Representations" shall mean the Blanket Letter of Representations dated July 11, 1997, from the Authority to the Securities Depository and any amendments thereto or successor agreements between the Authority and any successor Securities Depository with respect to the Series 2005A Bonds. Notwithstanding any provision of the Master Agreement of Trust, including Article X regarding amendments, the Trustee may enter into any such amendment or successor agreement without the consent of Bondholders. "Project" or "Projects" shall have the meaning set forth in the Support Agreement. "Refunded Certificates" shall mean the $36,700,000 Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement maturing on September 1 in the years 2005, 2006, 2007 and 2010, issued pursuant to a Trust Agreement dated as of October 1, 1987, as supplemented, between the City of Virginia Beach, Virginia, First Union Commercial Corporation and The Bank of New York, as successor trustee. "Second Supplemental Agreement" shall mean this Second Supplemental Agreement of Trust between the Authority and the Trustee, which supplements and amends the Master Agreement of Trust. 2 "Securities Depository" shall mean The Depository Trust Company, a corporation organized and existing under the laws of the State of New York, and any other securities depository for the Series 2005A Bonds appointed pursuant to Section 1.204, and their successors. "Series 2005A Bonds" shall mean the Authority's $ Public Facility Revenue Bonds, Series 2005A, authorized to be issued pursuant to this Second Supplemental Agreement. "Series 2005A Projects" shall mean have the meaning set forth in the Support Agreement. "Series 2005A Project Account" shall mean the Series 2005A Project Account established in Section 2.501 of this Second Supplemental Agreement. Section 2.103. Rules of Construction. The following rules shall apply to the construction of this Second Supplemental Agreement unless the context otherwise requires: (a) Words importing the singular number shall include the plural number and vice versa. (b) Words importing the redemption or calling for redemption of Series 2005A Bonds shall not be deemed to refer to or connote the payment of Series 2005A Bonds at their stated maturity. (c) Unless otherwise indicated, all references herein to particular Articles or Sections are references to Articles or Sections of this Second Supplemental Agreement. (d) The headings herein and Table of Contents to this Second Supplemental Agreement herein are solely for convenience of reference and shall not constitute a part of this Second Supplemental Agreement nor shall they affect its meaning, construction or effect. (e) All references herein to payment of Series 2005A Bonds are references to payment of principal of and premium, if any, and interest on the Series 2005A Bonds. ARTICLE II AUTHORIZATION, DETAILS AND FORM OF SERIES 2005A BONDS Section 2.201. Authorization of Series 2005A Bonds and Series 2005A Projects. There are hereby authorized to be issued the Series 2005A Bonds in an aggregate principal amount of $ to (a) finance the Cost of the Series 2005A Projects (b) refund the Refunded Certificates and (c) finance costs incident to refunding the Refunded Certificates and issuing the Series 2005A Bonds, in accordance with Article IV hereof. 3 Section 2.202. Details of Series 2005A Bonds. (a) The Series 2005A Bonds shall be designated "Public Facility Revenue Bonds, Series 2005A," shall be dated , 2005, shall be issuable only as fully registered bonds in denominations of $5,000 and integral multiples thereof and shall be numbered R-1 upward. The Series 2005A Bonds shall bear interest at rates, payable semiannually on each and , beginning , 2005, and shall mature in installments on in years and amounts, as follows: Year Amount Rate Year Amount Rate (b) Each Series 2005A Bond shall bear interest (a) from its date, if such Series 2005A Bond is authenticated prior to the first interest payment date, or (b) otherwise from the interest payment date that is, or immediately precedes, the date on which such Series 2005A Bond is authenticated; provided, however, that if at the time of authentication of any Series 2005A Bond payment of interest is in default, such Series 2005A Bond shall bear interest from the date to which interest has been paid. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months. (c) Principal of the Series 2005A Bonds shall be payable to the registered holder(s) upon the surrender of Series 2005A Bonds at the corporate trust office of the Trustee in Richmond, Virginia. Interest on the Series 2005A Bonds shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Trustee on the [15th] day of the month preceding each interest payment date; provided, however, if the Series 2005A Bonds are registered in the name of a Securities Depository or its nominee as registered holder or at the option of a registered holder(s) of at least $1,000,000 of Series 2005A Bonds, payment shall be made by wire transfer pursuant to the wire instructions received by the Trustee from such registered holder(s). If the nominal date for making any payment on the Series 2005A Bonds is not a Business Day, the payment may be made on the next Business Day with the same effect as if made on the nominal date, and no additional interest shall accrue between the nominal date and the actual payment date. Principal and interest shall be payable in lawful money of the United States of America. 4 Section 2.203. Form of Series 2005A Bonds. The Series 2005A Bonds shall be in substantially the form set forth in Exhibit A, with such appropriate variations, omissions and insertions as are permitted or required by the Master Agreement of Trust and this Second Supplemental Agreement. Section 2.204. Securities Depository Provisions. Initially, one certificate for each maturity of the Series 2005A Bonds will be issued and registered to the Securities Depository, or its nominee. The Authority shall enter into a Letter of Representations relating to a book-entry system to be maintained by the Securities Depository with respect to the Series 2005A Bonds. In the event that (a) the Securities Depository determines not to continue to act as a securities depository for the Series 2005A Bonds by giving notice to the Trustee and the Authority discharging its responsibilities hereunder or (b) the Authority, at the direction of the City, determines (1) that beneficial owners of Series 2005A Bonds shall be able to obtain certificated Series 2005A Bonds or (2) to select a new Securities Depository, then the Trustee shall, at the direction of the Authority, attempt to locate another qualified securities depository to serve as Securities Depository or authenticate and deliver certificated Series 2005A Bonds to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Exhibit A; provided, however, that such form shall provide for interest on the Series 2005A Bonds to be payable (i) from , 2005, if it is authenticated prior to , 2005, or (ii) otherwise from the or that is, or immediately precedes, the date on which it is authenticated (unless payment of interest thereon is in default, in which case interest on such Series 2005A Bonds shall be payable from the date to which interest has been paid). In delivering certificated Series 2005A Bonds, the Trustee shall be entitled to rely conclusively on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository participants acting on behalf of beneficial owners. Such certificated Series 2005A Bonds will be registrable, transferable and exchangeable as set forth in Sections 204 and 205 ofthe Master Agreement of Trust. So long as there is a Securities Depository for the Series 2005A Bonds (A) it or its nominee shall be the registered holder(s) of the Series 2005A Bonds, (B) notwithstanding anything to the contrary in this Second Supplemental Agreement, determinations of persons entitled to payment of principal and interest, transfers of ownership and exchanges and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (C) the Authority and the Trustee shall not be responsible or liable for maintaining, supervising or reviewing the records maintained by the Securities Depository, its participants or persons acting through such participants, (D) references in this Second Supplemental Agreement to registered holder(s) of the Series 2005A Bonds shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Series 2005A Bonds and (E) in the event of any inconsistency between the provisions of this Second Supplemental Agreement, other than those set forth in this paragraph and the preceding paragraph, and the provisions of the Letter of Representations such provisions ofthe Letter of Representations shall control. 5 Section 2.205. Delivery of Series 2005A Bonds. The Trustee shall authenticate and deliver the Series 2005A Bonds when there have been filed with or delivered to it all items required by Section 303 ofthe Master Agreement of Trust. ARTICLE III REDEMPTION OF SERIES 2005A BONDS Section 2.301. Redemption Date and Price. The Series 2005A Bonds may not be called for redemption by the Authority except as follows: (a) The Series 2005A Bonds maturing on or after , _, may be redeemed by the Authority, at the direction of the City, on or after , _, in whole or in part at any time (in increments of $5,000), at a redemption price of[100%] of the principal amount, or portion thereof, of Series 2005A Bonds to be redeemed plus interest accrued to the redemption date. Section 2.302. Selection of Series 2005A Bonds for Redemption. If less than all of the Series 2005A Bonds are called for redemption, the Series 2005A Bonds to be redeemed shall be selected by the Securities Depository or any successor securities depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Trustee by lot in such manner as the Trustee in its discretion may determine. The portion of any Series 2005A Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof. In selecting Series 2005A Bonds for redemption, each Series 2005A Bond shall be considered as representing that number of Series 2005A Bonds which is obtained by dividing the principal amount of such Series 2005A Bond by $5,000. If a portion of a Series 2005A Bond shall be called for redemption, a new Series 2005A Bond in principal amount equal to the unredeemed portion thereof shall be issued to the registered owner upon the surrender thereof. Section 2.303. Notice of Redemption. Notice of redemption of Series 2005A Bonds shall be given in the manner set forth in Section 402 of the Master Agreement of Trust. ARTICLE IV APPLICATION OF PROCEEDS OF SERIES 2005A BONDS Section 2.401. Application of Proceeds of Series 2005A Bonds. The proceeds of the Series 2005A Bonds ($ and applied as follows: ) shall be paid to the Trustee 6 (a) $ , representing accrued interest on the Series 2005A Bonds, shall be deposited in the Interest Account in the Bond Fund; (b) $ shall be transferred to The Bank of New York and applied as set forth in the Escrow Agreement to refund the Refunded Certificates; and (c) $ shall be transferred to the City for deposit in the Series 2005A Project Account in the Project Fund. ARTICLE V ESTABLISHMENT OF ACCOUNT Section 2.501. Series 2005A Project Account. There shall be established within the Project Fund a special account entitled "Series 2005A Project Account." The portion of the proceeds of the Series 2005A Bonds specified in Section 1.401(b) shall be deposited by the City in the Series 2005A Project Account. Money in the Series 2005A Project Account shall be used in accordance with the provisions of Section 503 ofthe Master Agreement of Trust. ARTICLE VI SECURITY FOR SERIES 2005A BONDS Section 2.601. Security for Series 2005A Bonds. The Series 2005A Bonds shall be equally and ratably secured under the Master Agreement of Trust with the Authority's $165,000,000 Public Facility Revenue Bonds, Series 2003A, and any other series issued pursuant to Article III of the Master Agreement of Trust, without preference, priority or distinction of any Bonds over any other Bonds, except as provided in the Master Agreement of Trust. ARTICLE VII MISCELLANEOUS Section 2.701. Limitations on Use of Proceeds. The Authority intends that interest on the Series 2005A Bonds shall be excluded from gross income for Federal income tax purposes. The Authority covenants with the holders of the Series 2005A Bonds not to take any action that would adversely affect, and to take all action within its power necessary to maintain, the exclusion of interest on all Series 2005A Bonds from gross income for Federal income taxation purposes. 7 Section 2.702. Limitation of Rights. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Second Supplemental Agreement or the Series 2005A Bonds is intended or shall be construed to give to any person other than the parties hereto and the holders of Series 2005A Bonds any legal or equitable right, remedy or claim under or in respect to this Second Supplemental Agreement or any covenants, conditions and agreements herein contained since this Second Supplemental Agreement and all of the covenants, conditions and agreements hereof are intended to be and are for the sole and exclusive benefit of the parties hereto and the holders of Bonds as herein provided. Section 2.703. Severability. If any provision of this Second Supplemental Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof and this Second Supplemental Agreement shall be construed and enforced as if such illegal provision had not been contained herein. Section 2.704. Successors and Assigns. This Second Supplemental Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. Section 2.705. Applicable Law. This Second Supplemental Agreement shall be governed by the applicable laws of the Commonwealth of Virginia. Section 2.706. Counterparts. This Second Supplemental Agreement may be executed in several counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. 8 IN WITNESS WHEREOF, the Authority and the Trustee have caused this Second Supplemental Agreement to be executed in their respective corporate names as of the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: Chairman W ACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee By Title Acknowledged and Consented To: CITY OF VIRGINIA BEACH, VIRGINIA, By: Title: 9 EXHIBIT A Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. REGISTERED REGISTERED R-l $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Public Facility Revenue Bond, Series 2005A INTEREST RATE MATURITY DATE DATED DATE CUSIP _% '- , 2005 92774G REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia (the "Authority"), for value received, hereby promises to pay upon surrender hereof at the principal corporate trust office of Wachovia Bank, National Association, Richmond, Virginia as trustee, or its successor in trust (the "Trustee"), under the Agreement of Trust (as hereinafter defined) solely from the source and as hereinafter provided, to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely from such source, interest hereon on each and , beginning ,2005, at the annual rate stated above, calculated on the basis of a 360-day year of twelve 30-day months. Interest is payable (a) from , 2005, if this bond is authenticated prior to , 2005, or (b) otherwise from the or that is, or immediately precedes, the date on which this bond is authenticated (unless payment of interest hereon is in default, in which case this bond shall bear interest from the date to which interest has been paid). Interest is payable by check or draft mailed to the registered owner hereof at its address as it appears on the [15th] day of the month preceding each interest payment date on registration books kept by the Trustee; provided, however, that at the option of a registered owner of at least $1,000,000 of Bonds (as hereinafter defined), payment will be made by wire transfer pursuant to A-I the most recent wire instructions received by the Trustee from such registered owner. If the nominal date for making any payment on this bond a Business Day (as hereinafter defined), the payment may be made on the next Business Day with the same effect as if made on the nominal date, and no additional interest shall accrue between the nominal date and the actual payment date. Principal and interest are payable in lawful money of the United States of America. "Business Day" shall mean a day on which banking business is transacted, but not including a Saturday, Sunday or legal holiday, or any day on which banking institutions are authorized by law to close in the city in the Commonwealth of Virginia in which the Trustee has its principal corporate trust office. Notwithstanding any other provision hereof, this bond is subject to book-entry form maintained by The Depository Trust Company ("DTC"), and the payment of principal and interest, the providing of notices and other matters shall be made as described in the Authority's Letter of Representations to DTC. This bond is one of an issue of $ Public Facility Revenue Bonds, Series 2005A (the "Bonds"), authorized and issued pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended. The Bonds are issued under and secured by an Agreement of Trust dated as of September 1, 2003, between the Authority and the Trustee, as supplemented by a First Supplemental Agreement of Trust dated as of September 1, 2003, and a Second Supplemental Agreement of Trust dated as of ,2005 (collectively, the "Agreement of Trust"). The Agreement of Trust assigns to the Trustee, as security for the Bonds, (a) the revenues and receipts derived from a Support Agreement dated as of September 1, 2003, as supplemented and amended by a First Supplemental Support Agreement dated as of , 2005 (collectively, the "Support Agreement"), each between the Authority and the City of Virginia Beach, Virginia (the "City"), and (b) the Authority's rights under the Support Agreement (except for the Authority's rights under the Support Agreement to the payment of certain fees and expenses and the rights to notices). Reference is hereby made to the Agreement of Trust for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the Authority and the Trustee, the rights of the holders of the Bonds and the terms upon which the Bonds are issued and secured. Additional bonds secured by a pledge of revenues and receipts derived from the City under the Support Agreement on a parity with the Bonds and the Authority's $165,000,000 Public Facility Revenue Bonds, Series 2003A, may be issued under the terms and conditions set forth in the Agreement of Trust. Terms not otherwise defined herein shall have the meaning assigned such terms in the Agreement of Trust. The Bonds are issued to (a) finance the acquisition, construction and equipping of various capital improvements for the City, (b) refund the $36,700,000 Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement maturing on September 1 in the years 2005, 2006, 2007 and 2010 (the "Refunded Certificates"), issued pursuant to a Trust Agreement dated as of October 1, 1987, as supplemented, between the City of Virginia Beach, Virginia, First Union Commercial Corporation and The Bank of New York, as successor trustee, and (c) pay costs incurred in refunding the Refunded Certificates and issuing the Bonds. Under the Support Agreement, the City has agreed to make payments that A-2 will be sufficient to pay the principal of and interest on the Bonds as the same shall become due in accordance with their terms and the provisions and the terms of the Agreement of Trust. The obligation of the City to make payments under the Support Agreement constitutes a current expense of the City, subject to annual appropriation by the Council of the City. The obligation of the City to make payments under the Support Agreement does not constitute a debt of the City within the meaning of any constitutional or statutory limitation nor a liability of or a lien or charge upon funds or property of the City beyond any fiscal year for which the City has appropriated moneys to make such payments. THE BONDS AND THE INTEREST THEREON ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAY ABLE SOLELY FROM REVENUES AND RECEIPTS DERNED FROM THE CITY RECEIVED BY THE AUTHORITY UNDER THE SUPPORT AGREEMENT, AND FROM CERTAIN FUNDS, AND THE INVESTMENT INCOME THEREON, HELD UNDER THE AGREEMENT OF TRUST, WHICH REVENUES, RECEIPTS AND FUNDS HAVE BEEN PLEDGED AND ASSIGNED TO SECURE PAYMENT THEREOF. THE BONDS AND INTEREST THEREON SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY. NEITHER THE COMMONWEALTH OF VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES AND RECEIPTS PLEDGED AND ASSIGNED THEREFOR, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OF VIRGINIA, OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO. THE AUTHORITY HAS NO TAXING POWER. No covenant, condition or agreement contained herein shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority in his individual capacity, and neither the Chairman of the Authority nor any officer thereof executing this Bond shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. The Bonds may not be called for redemption by the Authority except as provided herein and in the Agreement of Trust. Optional Redemption. The Bonds maturing on or before , _, will not be subject to optional redemption before their respective maturity dates. The Bonds maturing on or after , _, may be redeemed prior to their respective maturities on or after , _, at the option of the Authority, at the direction of the City, in whole or in part at any time at a redemption price of [100%] of the principal amount, or portion thereof, of Bonds to be redeemed plus interest accrued to the redemption date. If less than all the Bonds are called for redemption, they shall be redeemed from maturities in such order as determined by the Authority. If less than all of the Bonds of any A-3 maturity are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Trustee by lot in such manner as the Trustee in its discretion may determine. The portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof. In selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. If any of the Bonds or portions thereof are called for redemption, the Trustee shall send notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, by facsimile, registered or certified mail or overnight express delivery, to the registered owner of the Bonds. Such notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, with the Trustee no later that the redemption date or (2) the Authority retains the right to rescind such notice on or prior to the scheduled redemption date, and such notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded. Provided funds for their redemption are on deposit at the place of payment on the redemption date, all Bonds or portions thereof so called for redemption shall cease to bear interest on such date, shall no longer be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the provisions of the Agreement of Trust. If a portion of this Bond shall be called for redemption, a new Bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or its nominee upon surrender hereof, or if the book-entry system is discontinued, to the registered owners of the Bonds. The registered owner of this Bond shall have no right to enforce the provisions of the Agreement of Trust or to institute action to enforce the covenants therein or to take any action with respect to any Event of Default under the Agreement of Trust or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Agreement of Trust. Modifications or alterations of the Agreement of Trust or the Support Agreement, or of any supplement thereto, may be made only to the extent and in the circumstances permitted by the Agreement of Trust. The Bonds are issuable as registered bonds in the denomination of $5,000 and integral multiples thereof. Upon surrender for transfer or exchange of this Bond at the corporate trust office of the Trustee in Richmond, Virginia, together with an assignment duly executed by the registered owner or its duly authorized attorney or legal representative in such form as shall be satisfactory to the Trustee, the Authority shall execute, and the Trustee shall authenticate and deliver in exchange, a new Bond or Bonds in the manner and subject to the limitations and conditions provided in the Agreement of Trust, having an equal aggregate principal amount, in authorized denominations, of the same series, form and maturity, bearing interest at the same rate and registered in the name or names as requested by the then registered owner hereof or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the Authority, except that the Trustee may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Trustee shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner, except that A-4 interest payments shall be made to the person shown as holder on the [fifteenth] day of the month preceding each interest payment date. All acts, conditions and things required to happen, exist or be performed precedent to and in the issuance of this Bond have happened, exist and have been performed. This Bond shall not become obligatory for any purpose or be entitled to any security or benefit under the Agreement of Trust or be valid until the Trustee shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. IN WITNESS WHEREOF, the City of Virginia Beach Development Authority has caused this Bond to be signed by its Chairman, its seal to be imprinted hereon and attested by its Secretary, and this Bond to be dated ,2005. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY (SEAL) By Chairman Attest: Secretary A-5 --I CERTIFICATE OF AUTHENTICATION Date Authenticated: This Bond is one of the Series 2005A Bonds described in the within mentioned Agreement of Trust. W ACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee By Authorized Officer A-6 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto (please print or typewrite name and address, including zip code, of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within Bond and all rights thereunder, hereby irrevocably constituting and appointing , Attorney, to transfer said Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed NOTICE: Signature(s) must be guaranteed by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, Securities Broker/Dealer, Credit Union, or Savings Association who is a member of a medallion program approved by The Securities Transfer Association, Inc. (Signature of Registered Owner NOTICE: The signature above must correspond with the name ofthe registered owner as it appears on the front of this bond in every particular, without alteration or enlargement or any change whatsoever. A-7 FIRST SUPPLEMENTAL SUPPORT AGREEMENT between CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY and CITY OF VIRGINIA BEACH, VIRGINIA Dated as of , 2005 NOTE: THIS FIRST SUPPLEMENTAL SUPPORT AGREEMENT HAS BEEN ASSIGNED TO, AND IS SUBJECT TO A SECURITY INTEREST IN FAVOR OF, W ACHOVIA BANK, NATIONAL ASSOCIATION, AS TRUSTEE UNDER AN AGREEMENT OF TRUST DATED AS OF SEPTEMBER 1, 2003, AS SUPPLEMENTED BY A FIRST SUPPLEMENTAL AGREEMENT OF TRUST DATED AS OF SEPTEMBER 1, 2003, AND A SECOND SUPPLEMENTAL AGREEMENT OF TRUST DATED AS OF ,2005, WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, AS AMENDED OR SUPPLEMENTED FROM TIME TO TIME. INFORMATION CONCERNING SUCH SECURITY INTEREST MAY BE OBTAINED FROM THE TRUSTEE AT RICHMOND, VIRGINIA. TABLE OF CONTENTS Page Parties.................................................................................................................................. .............1 Recitals............................. ............................................. .. ............................................................ .. ...1 Granting Clauses.......................................................................................................................... ....1 ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION Section 1.1 Definitions....................................................................................................................2 Section 1.2 Rules of Construction. .................................................................................................3 ARTICLE II REPRESENTATIONS Section 2.1 Representations by Authority. ................. ....... ........... .................. ................................3 Section 2.2 Representations by City. ..............................................................................................4 ARTICLE III AGREEMENT TO ISSUE BONDS Section 3.1 Agreement to Issue Series 2005A Bonds.....................................................................5 ARTICLE IV PAYMENT OBLIGATIONS; MASTER SUPPORT AGREEMENT AMENDMENTS Section 4.1 Amounts Payable. .............................. ................................. ............. ............................5 ARTICLE V PREPAYMENT AND REDEMPTION Section 5.1 Prepayment and Redemption. ......................................................................... .............5 ARTICLE VI SERIES 2005A ARBITRAGE REBATE FUND Section 6.1 Series 2005A Arbitrage Rebate Fund. .........................................................................6 Section 6.2 Rebate Requirement.....................................................................................................6 Section 6.3 Calculation and Report of Rebate Amount. .................................................................6 Section 6.4 Payment of Rebate Amount. ........................................................................................6 Section 6.5 Reports by Trustee. .............................. .................................. .......... ....... .....................7 (i) I Section 6.6 Disposition of Balance in Series 2005A Arbitrage Rebate Fund. ...............................7 ARTICLE VII MISCELLANEOUS Section 7.1 Severability..................................................................................................................8 Section 7.2 Successors and Assigns................................................................................................8 Section 7.3 Counterparts................................................................................................................. 8 Section 7.4 Governing Law. .................. ................... .... .... .... ......... .............................. ...................8 Signatures............................................................................................................................. ............9 Receipt.................................................................................................................................. .........10 Exhibit A - Schedule of Pa)'lllents ................................................. .......................... ................... A-I (ii) THIS FIRST SUPPLEMENTAL SUPPORT AGREEMENT dated as of ,2005, by and between the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Authority"), and the CITY OF VIRGINIA BEACH, VIRGINIA, a political subdivision of the Commonwealth of Virginia (the "City"), provides: WIIN~SS~IH: WHEREAS, the Authority is a political subdivision of the Commonwealth of Virginia duly created by Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"); and WHEREAS, the Act authorities the Authority to acquire, improve, maintain, equip, own, lease and dispose of "Authority facilities," as defined in the Act, to finance or refinance and lease facilities for use by, among others, a city, to issue its revenue bonds, notes and other obligations from time to time for such purposes and to pledge all or any part of its assets, whether then owned or thereafter acquired, as security for the payment of the principal of and interest on any such obligations; and; and WHEREAS, the City desires to undertake a program of financing or refinancing the acquisition, construction and equipping of various public facilities that the City determines to undertake from time to time; and WHEREAS, in furtherance of the purposes of the Act, the City has requested the Authority to undertake one or more series of Projects (as defined in the Support Agreement, as hereinafter defined), and the Authority has determined to issue from time to time pursuant to the terms of an Agreement of Trust dated as of September 1, 2003 (the "Master Agreement of Trust"), between the Authority and Wachovia Bank, National Association, Richmond, Virginia, as trustee (the "Trustee"), as supplemented by a First Supplemental Agreement of Trust dated as of September 1, 2003, and a Second Supplemental Agreement of Trust dated as of 2005, between the Authority and the Trustee (collectively, the "Agreement of Trust"), its public facility revenue bonds and to loan the proceeds thereof to the City to finance or refinance costs incurred in connection with such Projects and costs of issuing such bonds; and WHEREAS, in furtherance of the purposes of the Act, the Authority and the City have entered into a Support Agreement dated as of September 1, 2003 (the "Master Support Agreement"), pursuant to which the Authority has agreed to loan from time to time such proceeds to the City, and the City has agreed to repay such loans, subject to appropriation by the City Council from time to time of sufficient moneys for such purpose; and WHEREAS, within the limitations and in compliance with the Agreement of Trust, the City has requested the Authority to issue a series of Bonds in the aggregate principal amount of $ (the "Series 2005A Bonds") and to loan such proceeds to the City to finance or refinance the costs of the Series 2005A Projects (as hereinafter defined) pursuant to the terms of this First Supplemental Support Agreement; and WHEREAS, all acts, conditions and things required by law to happen, exist and be performed precedent to and in connection with the execution of and entering into this First Supplemental Support Agreement have happened, exist and have been performed in regular and due time and in form and manner as required by law, and the parties hereto are now duly empowered to execute and enter into this First Supplemental Support Agreement; NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, the parties hereto covenant and agree as follows: ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION Section 1.1 Definitions. Unless otherwise defined in this First Supplemental Support Agreement, all words used herein shall have the meanings assigned to such terms in the Agreement of Trust or the Master Support Agreement. The following words as used in this First Supplemental Support Agreement shall have the following meanings unless a different meaning clearly appears from the context: "Agreement of Trust" shall mean the Agreement of Trust dated as of September 1, 2003, as previously supplemented, and as supplemented by the Second Supplemental Agreement of Trust. "Basic Agreements" shall mean the Agreement of Trust and the Support Agreement. "Support Agreement" shall mean the Master Support Agreement as supplemented by this First Supplemental Support Agreement. "First Supplemental Support Agreement" shall mean this Supplemental Support Agreement dated as of , 2005, between the Authority and the City, which supplements the Master Support Agreement. "Master Support Agreement" shall mean the Support Agreement dated as of September 1, 2003, between the Authority and the City. "Second Supplemental Agreement of Trust" shall mean the Second Supplemental Agreement of Trust dated as of , 2005, between the Authority and the Trustee, which supplements the Agreement of Trust. "Series 2005A Arbitrage Rebate Fund" shall mean the fund established in Section 6.1. "Series 2005A Bonds" shall mean the Authority's $ Public Facility Revenue Bonds, Series 2005A, authorized to be issued pursuant to the Second Supplemental Agreement of Trust. "Series 2005A Projects" shall mean the financing or refinancing of the acquisition, construction and equipping of all or a portion of the projects as set forth on Exhibit B. 2 Section 1.2 Rules of Construction. The following rules shall apply to the construction of this First Supplemental Support Agreement unless the context otherwise requires: (a) Words importing the singular number shall include the plural number and vice versa. (b) Words importing the redemption or calling for redemption of Bonds shall not be deemed to refer to or connote the payment of Bonds at their stated maturity. (c) Unless otherwise indicated, all references herein to particular Articles or Sections are references to Articles or Sections of this First Supplemental Support Agreement. (d) The headings herein and Table of Contents to this First Supplemental Support Agreement herein are solely for convenience of reference and shall not constitute a part of this First Supplemental Support Agreement nor shall they affect its meaning, construction or effect. (e) All references herein to payment of Bonds are references to payment of principal of and premium, if any, and interest on the Bonds. ARTICLE II REPRESENTATIONS Section 2.1 Representations by Authority. The Authority makes the following representations: (a) The Authority is a political subdivision of the Commonwealth of Virginia duly created under the Act; (b) Pursuant to the Act, the Authority has full power and authority to enter into the Basic Agreements and to perform the transactions contemplated thereby and to carry out its obligations thereunder and by proper action has duly authorized, executed and delivered the Basic Agreements. (c) The execution, delivery and compliance by the Authority with the terms and conditions ofthe Basic Agreements will not conflict with or constitute or result in a default under or violation of, (1) any existing law, rule or regulation applicable to the Authority, or (2) any trust agreement, mortgage, deed of trust, lien, lease, contract, note, order, judgment, decree or other agreement, instrument or other restriction of any kind to which the Authority or any of its assets is subj ect; (d) No further approval, consent or withholding of objection on the part of any regulatory body or any official, Federal, state or local, is required in connection with the execution or delivery of or compliance by the Authority with the terms and conditions of the 3 Basic Agreements, except that no representation is made as to the applicability of any Federal or state securities laws; and (e) There is no litigation at law or in equity or any proceeding before any governmental agency involving the Authority pending or, to the knowledge of the Authority, threatened with respect to (1) the creation and existence of the Authority, (2) its authority to execute and deliver the Basic Agreements, (3) the validity or enforceability of the Basic Agreements, or the Authority's performance of its obligations thereunder, (4) the title of any officer of the Authority executing the Basic Agreements, or (5) the ability of the Authority to issue and sell its bonds. Section 2.2 Representations by City. The City makes the following representations: (a) The City is a political subdivision ofthe Commonwealth of Virginia; (b) The City has full power and authority to enter into the Basic Agreements to which it is a party and to perform the transactions contemplated thereby and to carry out its obligations thereunder and by proper action has duly authorized, executed and delivered the Basic Agreements; (c) The City is not in default in the payment of the principal of or interest on any of its indebtedness for borrowed money and is not in default under any instrument under or subject to which any indebtedness for borrowed money has been incurred, and no event has occurred and is continuing that with the lapse of time or the giving of notice, or both, would constitute or result in an event of default thereunder; (d) The City is not in default under or in violation of, and the execution, delivery and compliance by the City with the terms and conditions of the Basic Agreements to which it is a party will not conflict with or constitute or result in a default under or violation of, (1) any existing law, rule or regulation applicable to the City or (2) any trust agreement, mortgage, deed of trust, lien, lease, contract, note, order, judgment, decree or other agreement, instrument or restriction of any kind to which the City or any of its assets is subject, and no event has occurred and is continuing that with the lapse of time or the giving of notice, or both, would constitute or result in such a default or violation; (e) No further approval, consent or withholding of objection on the part of any regulatory body or any official, Federal, state or local, is required in connection with the execution or delivery of or compliance by the City with the terms and conditions of the Basic Agreements to which it is a party; and (f) There is no litigation at law or in equity or any proceeding before any governmental agency involving the City pending or, to the knowledge of the City, threatened with respect to (1) the authority of the City to execute and deliver the Basic Agreements to which it is a party, (2) the validity or enforceability of the Basic Agreements or the City's performance of its obligations thereunder, (3) the title of any officer of the City executing the Basic Agreements, or (4) the ability of the City to undertake the Series 2005A Projects. 4 ARTICLE III AGREEMENT TO ISSUE BONDS Section 3.1 Agreement to Issue Series 2005A Bonds. The Authority shall contemporaneously with the execution and delivery hereof proceed with the issuance and sale of the Series 2005A Bonds bearing interest, maturing and having the other terms and provisions set forth in the Agreement of Trust. ARTICLE IV PAYMENT OBLIGATIONS; MASTER SUPPORT AGREEMENT AMENDMENTS Section 4.1 Amounts Payable. (a) The Master Support Agreement is hereby amended to replace in its entirety the Exhibit A attached thereto with the new Exhibit A attached hereto. Pursuant to Article IV of the Master Support Agreement and subject specifically to the limitation of Section 4.4 thereof, the City shall pay to the Authority or its assignee the Annual Payments specified in Exhibit A attached hereto on or before the due dates set forth in such exhibit. The Annual Payments shall be payable without notice or demand at the designated corporate trust office of the Trustee. (b) The definition of "Additional Payment(s)" in the Master Support Agreement is hereby amended to read as follows: "Additional Payment(s)" shall mean such payment or payments made by the City pursuant to Section 4.1 (b) and (c) and payments made by the City from time to time as necessary to pay rebate due under the Code with respect to any Series of Bonds. ARTICLE V PREPAYMENT AND REDEMPTION Section 5.1 Prepayment and Redemption. The City shall have the option to prepay any Annual Payment at the times and in the amounts as necessary to exercise its option to cause the Series 2005A Bonds to be redeemed as set forth in such Series 2005A Bonds. Such prepayments of Annual Payments shall be made at the times and in the amounts as necessary to accomplish the optional redemption of the Series 2005A Bonds as set forth in the Series 2005A Bonds. The Series 2005A Bonds shall be prepaid or redeemed in the manner and at the times set forth in the Series 2005A Bonds. Upon the exercise of such option, the City shall also pay as Additional Payments, the amounts necessary to pay the premium, if any, due on such Series 2005A Bonds on the date or dates of their redemption. 5 The City shall give the Trustee notice of any redemption of such Series 2005A Bonds at least 15 days prior to the latest date that notice of redemption may be given pursuant to Section 402 of the Master Agreement of Trust, such notice to the Trustee to specify the redemption date, the principal amount of Series 2005A Bonds to be redeemed, the premium, if any, and the section of the Agreement of Trust pursuant to which such redemption is to be made. ARTICLE VI SERIES 2005A ARBITRAGE REBATE FUND Section 6.1 Series 2005A Arbitrage Rebate Fund. There is hereby established the City of Virginia Beach, Virginia, Series 2005A Public Facility Revenue Bond Arbitrage Rebate Fund (the "Series 2005A Arbitrage Rebate Fund") to be held by or on behalf of the City. Subject to the limitation in Section 4.4 of the Master Support Agreement, the City shall deposit moneys in the Series 2005A Arbitrage Rebate Fund from time to time for payment of the rebate obligations under the Code (the "Rebate Amount"). The City may establish separate accounts in the Series 2005A Arbitrage Rebate Fund for such payments. Section 6.2 Rebate Requirement. Except with respect to earnings on funds and accounts qualifying for exceptions to the rebate requirement of Section 148 of the Code, the City shall pay, but solely from amounts in the Series 2005A Arbitrage Rebate Fund, the Rebate Amount to the United States of America, as and when due, in accordance with Section 148(f) of the Code, as provided in this Article, and shall retain records of all such determinations until six years after payment of the Series 2005A Bonds. Section 6.3 Calculation and Report of Rebate Amount. (a) The City selects as the end of the bond year with respect to the Series 2005A Bonds pursuant to Treasury Regulation Section 1.148-1. (b) Within 30 days after the initial installment computation date which is the last day of the fifth bond year, unless such date is changed by the City prior to the date that any amount with respect to the Series 2005A Bonds is paid or required to be paid to the United States of America as required by Section 148 ofthe Code, and at least once every five years thereafter, the City shall cause the Rebate Amount to be computed and shall deliver a copy of such computation (the "Rebate Amount Certificate") to the Authority and the Trustee. Prior to any payment of the Rebate Amount to the United States of America as required by Section 148 of the Code, a Rebate Amount Certificate setting forth such Rebate Amount shall be prepared or approved by (1) a person with experience in matters of governmental accounting for Federal income tax purposes or (2) a bona fide arbitrage rebate calculation reporting service. Section 6.4 Payment of Rebate Amount. Not later than 60 days after the initial installment computation date, the City shall pay solely from amounts in the Series 2005A Arbitrage Rebate Fund to the United States of America 6 at least 90% of the Rebate Amount as set forth in the Rebate Amount Certificate prepared with respect to such installment computation date. At least once on or before 60 days after the installment computation date that is the fifth anniversary of the initial installment computation date and on or before 60 days after every fifth anniversary date thereafter until final payment of the Series 2005A Bonds, the City shall pay to the United States of America not less than the amount, if any, by which 90% of the Rebate Amount set forth in the most recent Rebate Amount Certificate exceeds the aggregate of all such payments theretofore made to the United States of America pursuant to this Section. On or before 60 days after final payment of the Series 2005A Bonds, the City shall pay to the United States of America the amount, if any, by which 100% of the Rebate Amount set forth in the Rebate Amount Certificate with respect to the date of final payment of the Series 2005A Bonds exceeds the aggregate of all payments theretofore made pursuant to this Section. All such payments shall be made solely from amounts in the Series 2005A Arbitrage Rebate Fund. Notwithstanding any provision of the Support Agreement to the contrary, no such payment shall be made if the City receives and delivers to the Trustee and the Authority an opinion of Bond Counsel to the effect that (a) such payment is not required under the Code in order to prevent the Series 2005A Bonds from becoming "arbitrage bonds" within the meaning of Section 148 of the Code or (b) such payment should be calculated and paid on some alternative basis under the Code, and the City complies with such alternative basis. The Authority covenants that, if so requested by the City, it shall execute any form required to be signed by an issuer of tax-exempt bonds in connection with the payment of any Rebate Amount (including Internal Revenue Service Form 8038-T) based on information supplied to the Authority by the City. The City shall supply all information required to be stated on such form and shall prepare such form. Except for the execution and delivery of such form upon timely presentation by the City, the Authority shall have no responsibility for such form or the information stated thereon. Section 6.5 Reports by Trustee. The Trustee shall provide the City within 10 days after each and within 10 days after the final payment of the Series 2005A Bonds with such reports and information with respect to earnings of amounts held under the Agreement of Trust as may be requested by the City in order to comply with the provisions of this Article. Section 6.6 Disposition of Balance in Series 2005A Arbitrage Rebate Fund. After each payment required in Section 6.4 is made and any additional amount necessary to pay the full rebate obligation is retained, the remaining amount in the Series 2005A Arbitrage Rebate Fund shall be retained by the City and used for any lawful purpose. 7 ARTICLE VII MISCELLANEOUS Section 7.1 Severability. If any provision of this First Supplemental Support Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof. Section 7.2 Successors and Assigns. This First Supplemental Support Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. Section 7.3 Counterparts. This First Supplemental Support Agreement may be executed in any number of counterparts, each of which shall be an original, all of which together shall constitute but one and the same instrument. Section 7.4 Governing Law. This First Supplemental Support Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. 8 IN WITNESS WHEREOF, the parties have caused this First Supplemental Support Agreement to be duly executed by their duly authorized representatives as of the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: Chairman CITY OF VIRGINIA BEACH, VIRGINIA By: City Manager Seen and agreed to: WACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee By Title 9 RECEIPT Receipt of the foregoing original counterpart of the First Supplemental Support Agreement dated as of , 2005, between the City of Virginia Beach Development Authority and the City of Virginia Beach, Virginia, is hereby acknowledged. W ACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee By Title 10 EXHIBIT A SCHEDULE OF PAYMENTS SERIES 2003A BONDS SERIES 2005A BONDS Due Total Due Total Date Principal Interest Pavment Date Principal Interest Pavment 5/20/04 $ 5,975,278.13 $5,975,278.13 11/20/04 $ 3,865,000 3,983,518.75 7,848,518.75 5/20/05 3,925,543,75 3,925,543.75 11120/05 4,595,000 3,925,543.75 8,520,543.75 5/20/06 3,833,643.75 3,833,643.75 11/20/06 5,945,000 3,833,643.75 9,778,643.75 5/20/07 3,714,743.75 3,714,743.75 11120/07 6,255,000 3,714,743,75 9,969,743.75 5/20/08 3,620,918,75 3,620,918.75 11/20/08 6,570,000 3,620,918,75 10,190,918.75 5/20/09 3,456,668,75 3,456,668.75 11/20/09 6,225,000 3,456,668.75 9,681,668,75 5/20/10 3,301,043.75 3,301,043,75 11/20/10 6,540,000 3,301,043.75 9,841,043,75 5/20/11 3,137,543.75 3,137,543,75 11120/11 6,880,000 3,137,543,75 10,017,543.75 5/20/12 2,965,543,75 2,965,543.75 11/20/12 7,235,000 2,965,543.75 10,200,543,75 5/20113 2,775,625,00 2,775,625.00 11120/13 7,600,000 2,775,625,00 10,375,625.00 5/20/14 2,576,125.00 2,576,125,00 II /20114 8,010,000 2,576,125,00 10,586,125.00 5/20/15 2,365,862,50 2,365,862,50 11/20/15 8,470,000 2,365,862,50 10,835,862.50 5/20/16 2,154,112,50 2,154,112,50 11/20/16 8,950,000 2,154,112,50 11,104,112.50 5/20/17 1,930,362.50 1,930,362.50 11/20117 9,450,000 1,930,362.50 11,380,362,50 5/20/18 1,694,112.50 ] ,694,112.50 11/20118 9,965,000 1,694,112,50 11,659,112.50 5/20/19 1,444,987.50 1,444,987.50 11/20/19 10,505,000 1,444,987.50 11,949,987.50 5/20/20 1,182,362,50 1,182,362.50 11/20/20 11,080,000 1,182,362,50 12,262,362.50 5/20/21 905,362,50 905,362.50 11/20/21 11,665,000 905,362,50 12,570,362.50 5/20/22 613,737.50 613,737,50 II /20/22 12,285,000 613,737,50 12,898,737,50 5/20/23 306,612.50 306,612,50 11/20/23 12.910.000 306.612,50 13.216.612.50 TOTAL $165,000,000 $101,768,621.88 $266,768,621.88 A-I EXHIBIT B DESCRIPTION OF SERIES 2005A PROJECTS The following sets forth brief descriptions of the Projects to be financed in whole or in part and the certificates to be refunded with the proceeds of the Series 2005A Bonds: Convention Center Replacement - This project provides for the replacement and relocation of the existing pavilion convention center on the same site. It will provide for approximately 150,000 square feet of exhibit hall, 25,000 square feet of meeting rooms and 32,000 square feet of ballroom space. The cost of this project is approximately $206,100,000. Thirty-First Street Parking Garage - This project is for the construction of an approximate 1,000 space parking garage, 26,000 square feet of retail space, a pedestrian bridge from the garage to a proposed hotel to be developed on the oceanfront and a public park adjacent to the hotel. The cost of this project is approximately $31,508,684. Town Center Garage Block 10 - This project is for the construction of an approximate 840 space parking garage located in the Town Center district of the City. The cost of this project is approximately $13,500,000. Town Center Garage Block 12 - This project is for the construction of an approximate 305 space parking garage located in the Town Center district of the City. The cost of this project is approximately $8,300,000. Open Space Site Acquisition - This project provides for the acquisition of land for preservation and/or recreational purposes. Acquisition may include areas to remain in a natural state, land to be improved as parks and active recreation facilities, land to preserve flood plains and/or act as storm water management facilities and land to use for right-of-way to improve as trails. The cost of this project is approximately $51,840,000. Ninth Street Parking Garage - This project is for the acquisition of an existing parking garage in the City's oceanfront area. The 212,91 a-square foot garage has 853 parking spaces on four levels. The City is purchasing 664 spaces on levels two through four. The cost of this project is approximately $9,750,000. Virginia Marine Science Museum Parking - This project will provide a 500 space parking lot across the road from the museum and will address the safe crossing of pedestrians from the parking area to the museum. The cost of this project is approximately $3,000,000. Emergency Communications Operation Center - This project is for the design and construction of a new Emergency Communications Center and Emergency Operation Center, to be located in the Municipal Center, on the north side of the intersection of Princess Anne Road and James Madison Boulevard, across the street from the Public Safety Building. The cost of this project is approximately $10,456,000 B-1 I Revenue Assessment and Collection System - This project provides for a comprehensive, fully integrated tax system to replace the computer systems currently used to support tax revenue assessment and collection. The cost of this project is approximately $11,095,900. Pavilion Theater Replacement - This project replaces the current 1,000 seat Pavilion Theater with a new theater at the Town Center and includes parking. The cost of this project is approximately $50,000,000. City/School Human Resource Payroll System - This project replaces the City's ten year old payroll system with a new infonnation system utilizing current network infrastructure. The cost of this project is approximately $10,283,106. Communications Infrastructure Replacement - This project will replace various components of the public safety communications infrastructure related to equipment associated with receiving, dispatching, transponding and answering public safety calls. The cost of this project is approximately $24,850,000. Fire Apparatus Equipment - This project funds replacement of heavy equipment fire apparatus that costs over $50,000 and have a useful life of over ten years. The cost of this project is approximately $17,870,000. Refunding - The $36,700,000 Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement maturing on September 1 in the years 2005, 2006, 2007 and 2010 (the "Refunded Certificates"), issued on June 24, 2004, will be refunded on September 1, 2005. The Refunded Certificates were issued pursuant to a Trust Agreement dated as of October 1, 1987, as supplemented and amended, between the City of Virginia Beach, Virginia, First Union Commercial Corporation and The Bank of New York, as successor trustee. B-2 22764.000266 RICHMOND 1406542vl CERTIFICATE OF CITY MANAGER AS TO TERMS OF BONDS The undersigned City Manager of the City of Virginia Beach, Virginia (the "City"), in connection with the $94,900,000 Public Facility Revenue Bonds, Series 2005A (the "Series 2005A Bonds"), and the $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B (the "Series 2005B Bonds"), issued by the City of Virginia Beach Development Authority (the "Authority") for the benefit of the City, certifies as follows: 1. Pursuant to Section 4 of a resolution approving a plan of financing with the Authority adopted by the City Council on April 12, 2005 (the "City Resolution"), a resolution adopted by the Authority on April 21, 2005 (the "Authority Resolution"), and in collaboration with Government Finance Associates, Inc. and ARD Government Finance Group, the City's financial advisors (the "Financial Advisors"), he has determined the principal amount of the Series 2005A Bonds to be $94,900,000 and the principal amount of the Series 2005B Bonds to be $9,000,000, which such principal amounts are within the limitations of Section 1 of the City Resolution and Section 1 of the Authority Resolution. 2. In collaboration with the Financial Advisors, he has determined that the Series 2005A Bonds bear interest at a true interest cost of 4.0266525%, taking into account any original issue discount, and the price to be paid by Lehman Brothers to be 106.0179553% of the principal amount thereof, without taking into account any original issue discount or premium, which cost and price are within the limitations of Section 4 of the City Resolution and Section 2 of the Authority Resolution. 3. In collaboration with the Financial Advisors, he has determined that the Series 2005B Bonds bear interest at a true interest cost of 4.9640563%, taking into account any original issue discount, and the price to be paid by Legg Mason Wood Walker, Inc. to be 100.0113159% of the principal amount thereof, without taking into account any original issue discount or premium, which cost and price are within the limitations of Section 4 of the City Resolution and Section 2 of the Authority Resolution. 4. In collaboration with the Financial Advisors, he has determined the maturity schedules and redemption provisions of the Series 2005A Bonds and the Series 2005B Bonds to be as set forth in Exhibit A attached hereto, which such maturity schedules, principal amounts, interest rates and redemption provisions to be within the limitations of Section 4 of the City Resolution and Section 2 of the Authority Resolution. 5. In collaboration with the Financial Advisors, he has determined that the Refunding Certificates of Participation Evidencing Direct and Proportionate Interest of Owners Thereof in Payments to be Made by the City of Virginia Beach, Virginia, under a Real Property Lease Agreement to be refunded shall be the certificates maturing on September 1 in the years 2005,2006,2007 and 2010 in the outstanding principal amount of $9,600,000. 6. He has determined the terms of the Series 2005A Bonds and the Series 2005B Bonds, as set forth in paragraphs 1 through 5 above, to be in the best interests of the City and the Authority. 7. He has deemed the Preliminary Official Statement dated May 12, 2005, and the Official Statement dated May 18, 2005, to be final within the meaning of Rule 15c2-12 (the "Rule") of the Securities and Exchange Commission, except for the omission in the Preliminary Official Statement of certain pricing and other information permitted to be omitted pursuant to the Rule. 8. Pursuant to Section 4(b) of the City Resolution and the sale procedures set forth in the Authority's Official Notice of Sale for the Series 2005B Bonds, bids for the Series 2005A Bonds were received at the office of the City Manager, Virginia Beach, Virginia, until 11 :00 a.m., local time, on May 18,2005, as indicated below: (a) Bid of Lehman Brothers, offering to pay $106,756,936.60 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-1 attached hereto. (b) Bid of Banc of America Securities LLC, offering to pay $108,168,109.23 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-2 attached hereto. (c) Bid of Merrill Lynch & Co., offering to pay $106,569,245.90 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-3 attached hereto. (d) Bid of Morgan Stanley & Co. Inc., offering to pay $107,032,413.57 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-4 attached hereto. (e) Bid of Morgan Keegan & Company, Inc., offering to pay $106,822,206.04 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-5 attached hereto. (f) Bid of Goldman, Sachs & Co., offering to pay $108,349,639.55 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-6 attached hereto. (g) Bid of UBS Financial Services Inc., offering to pay $105,954,411.25 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-7 attached hereto. (h) Bid of Citigroup Global Markets Inc., offering to pay $107,371,788.95 plus accrued interest for the Series 2005A Bonds and bearing interest at the rates set forth in Exhibit B-8 attached hereto. The undersigned, in collaboration with the Financial Advisors, determined that the bid of Lehman Brothers, a copy of which is attached hereto as Exhibit B-1, offered to purchase the Series 2005A Bonds at the lowest cost to the City, determined in accordance with the terms of the Official Notice of Sale for the Series 2005A Bonds, and awarded the Series 2005A Bonds to Lehman Brothers. 2 After the award of the Series 2005A Bonds, the principal installments were revised pursuant to the provisions of the Official Notice of Sale, resulting in the maturity schedule referenced in Exhibit A and resulting in a revised purchase price by Lehman Brothers of $100,611,039.55. 9. Pursuant to Section 4(b) of the City Resolution and the sale procedures set forth in the Authority's Official Notice of Sale for the Series 2005B Bonds, bids for the Series 2005B Bonds were received at the office of the City Manager, Virginia Beach, Virginia, until noon, local time, on May 18, 2005, as indicated below: (a) Bid of Legg Mason Wood Walker, Inc., offering to pay $9,000,009.53 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C-1 attached hereto. (b) Bid of Morgan Keegan & Company, Inc., offering to pay $9,000,000.00 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C-2 attached hereto. (c) Bid of First Albany Capital Inc., offering to pay $9,000,000.00 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C-3 attached hereto. (d) Bid of Davenport & Company LLC, offering to pay $9,000,769.55 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C-4 attached hereto. (e) Bid of Raymond James & Associates, Inc., offering to pay $9,002,954.55 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C-5 attached hereto. (f) Bid of BB&T Capital Markets, offering to pay $9,001,853.60 plus accrued interest for the Series 2005B Bonds and bearing interest at the rates set forth in Exhibit C- 6 attached hereto. The undersigned, in collaboration with the Financial Advisors, determined that the bid of Legg Mason Wood Walker, Inc., a copy of which is attached hereto as Exhibit C-1, offered to purchase the Series 2005B Bonds at the lowest cost to the City, determined in accordance with the terms of the Official Notice of Sale for the Series 2005B Bonds, and awarded the Series 2005B Bonds to Legg Mason Wood Walker, Inc. After the award of the Series 2005A Bonds, the principal installments were revised pursuant to the provisions of the Official Notice of Sale, resulting in the maturity schedule referenced in Exhibit A and resulting in a revised purchase price by Legg Mason Wood Walker, Inc. of $9,001,018.43. 3 Dated June 7,2005. 4 RECEIPT OF CITY CLERK The undersigned City Clerk of the City of Virginia Beach, Virginia (the "City"), certifies in connection with the $94,900,000 Public Facility Revenue Bonds, Series 2005A, and the $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B, issued by the City of Virginia Beach Development Authority for the benefit of the City, that she has received from the City Manager an executed copy of the certificate dated June 7, 2005, as to the terms and award of such bonds for filing in the records of the City Council. Dated June 7, 2005. ~u ity of Virginia Beach, Virginia 5 RECEIPT OF SECRETARY OF THE AUTHORITY The undersigned Secretary of the City of Virginia Beach Development Authority (the "Authority") certifies in connection with the Authority's $94,900,000 Public Facility Revenue Bonds, Series 2005A, and the $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B, he has received from the City Manager of the City of Virginia Beach, Virginia, an executed copy of the certificate dated June 7, 2005, as to the terms and award of such bonds for filing in the records of the Authority. Dated June 7, 2005. ~4 + iI- Secretary, City of Virgini Authority 6 CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY $94,900,000 Public Facility Revenue Bonds, Series 2005A Maturity Principal Interest (May 1) Amount Rate 2006 $4,805,000 4.000% 2007 4,990,000 5.000 2008 5,220,000 4.750 2009 3,160,000 5.000 2010 3,325,000 5.000 2011 6,170,000 5.000 2012 3,620,000 5.000 2013 3,805,000 5.000 2014 3,990,000 5.000 2015 4,195,000 5.000 2016 4,400,000 5.000 2017 4,615,000 5.000 2018 4,855,000 5.000 2019 5,100,000 5.000 2020 5,355,000 4.000 2021 4,945,000 5.000 2022 5,200,000 5.000 2023 5,460,000 5.000 2024 5,730,000 4.125 2025 5,960,000 4.250 $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B Maturity Principal Interest (May 1) Amount Rate 2006 $ 225,000 4.75% 2007 295,000 4.75 2008 305,000 4.75 2009 320,000 4.75 2010 335,000 4.75 2011 350,000 4.75 2012 370,000 4.75 2013 380,000 4.75 2014 400,000 5.00 2015 425,000 5.00 2016 450,000 5.00 2020 2,005,000 5.00 2025 3,140,000 5.00 A-I Exhibit A Optional Redemption The Series 2005A Bonds and the Series 2005B Bonds that mature on or before May 1, 2015, are not subject to optional redemption prior to maturity. The Series 2005A Bonds and the Series 2005B Bonds that mature on or after May 1,2016, may be redeemed by the Authority, at the direction of the City, prior to their stated dates of maturity, at any time on or after May 1, 2015, in whole or in part in integral multiples of $5,000, at the redemption price of 100% of the principal amount of the such bonds to be redeemed plus interest accrued to the redemption date. Mandatorv Redemption The Series 2005B Bonds maturing on May 1, 2020, are required to be redeemed prior to maturity in part upon payment of 100% of the principal amount thereof plus interest accrued to the redemption date on May 1 in years and amounts, as follows: Year Amount 2017 2018 2019 2020 (Final maturity) $465,000 490,000 510,000 540,000 The Series 2005B Bonds maturing on May 1, 2025, are required to be redeemed prior to maturity in part upon payment of 100% of the principal amount thereof plus interest accrued to the redemption date on May 1 in years and amounts, as follows: Year Amount 2021 2022 2023 2024 2025 (Final maturity) $570,000 595,000 625,000 655,000 695,000 A-2 PARITY Bid Form Page 1 of 2 I: Upcoming Calendar )[ Overview ][ Result ][mE~~~i-] Exhibit B-1 Lehman Brothers - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A =:G~IIR 'Jr~:.' .~:f ~.=a _ F.' For the aggregate principal amount of $100,730,000.00, we will pay you $106,756,936.60, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 4.0000 05/01/2007 5,480M 5.0000 05/01/2008 5,640M 4.7500 05/01/2009 3,420M 5.0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 4.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 4.1250 05/01/2025 6,365M 4.2500 Total Interest Cost: $52,196,793.75 Premium: $6,026,936.60 Net Interest Cost: $46,169,857.15 TIC: 4.032939 Time Last Bid Received On:05/18/2005 10:59:08 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Lehman Brothers, New York, NY Contact: Peter Coleman Title: Managing Director Telephone:212-528-1061 Fax: 646-758-2068 https://www.newissuehome.i-deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 2002 i-Deal LLC, An rights reserJed, Tradema'ks https://www .newissuehome.i -deal.comlParity /asp/main.asp ?frame=content&page=parity Bidform&custom... 05/18/2005 PARITY Bid Form Page I of 2 [ Upcoming Calendar ] [ Overview ][ Result JIE~~~,ml Exhibit B-2 Banc of America Securities LLC - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A .';l?I!lllll'Jr"~... .:w~ .... ;~1:r ~. _ Eo:- For the aggregate principal amount of $100,730,000.00, we will pay you $108,168,109.23, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 3.5000 05/01/2007 5,480M 5.0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 5.0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5,0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 5.0000 05/01/2025 6,365M 4.3750 Total Interest Cost: $54,222,850.00 Premium: $7,438,109.23 Net Interest Cost: $46,784,740.77 TIC: 4.037296 Time Last Bid Received On:05/18/2005 10:59:54 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Banc of America Securities LLC, New York, NY Contact: Bill Laverty Title: Telephone:212-933-2847 Fax: https://www .newissuehome.i -deal.com/Pari ty / asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: @ 1981-2002 :Ooal resefvods Trademarks https://www.newissuehome.i-deal.com/Parity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Exhibit B-3 Upcoming Calendar ][ Overview H Result rE~~~11 Merrill Lynch & Co. - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A ..G~II.II. IJrV:'. ;~~ ~.:a .. F:. For the aggregate principal amount of $100,730,000.00, we will pay you $106,569,245.90, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 5.0000 05/01/2007 5,480M 5,0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 5,0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 4.0000 05/01/2017 4,855M 4.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 4.2500 05/01/2024 6,065M 5.0000 05/01/2025 6,365M 4.3750 Total Interest Cost: $52,432,450.00 Premium: $5,839,245.90 Net Interest Cost: $46,593,204.10 TIC: 4.067207 Time Last Bid Received On:05/18/2005 10:59:53 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Merrill Lynch & Co., New York, NY Contact: David Andersen Title: Managing Director Telephone:212-449-5081 Fax: 212-449-3733 https://www .newissuehome.i -deal.com/Parity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: (r;) 19812002 ,.Ooal LLC, Ad r(~~){;r\/cd, T:'aoernarks https://www .newissuehome.i -deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 1 of 2 Upcoming Calendar ][ Overvie I Result j[E~~~i] E;xnibit B--4 Morgan Stanley & Co Inc. - New York, NY.s Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A .=~~~IR'JTY:" For the aggregate principal amount of $100,730,000.00, we will pay you $107,032,413.57, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 3.2500 05/01/2007 5,480M 4.0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 5.0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5,0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 4.2500 05/01 /2025 6,365M 4.2500 Total Interest Cost: $53,076,525.00 Premium: $6,302,413.57 Net Interest Cost: $46,77 4,111.43 TIC: 4.072786 Time Last Bid Received On:05/18/2005 10:59:32 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof, Bidder: Morgan Stanley & Co Inc., New York, NY Contact: Glen Balanoff Title: Telephone:212-762-8183 Fax: 212-762-8226 https://www .newissuehome.i -deal.comlParity / asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: ~) 1981-2002 ~..DC'ai LLC~ rights rcsorvedl Trademarks https://www .newissuehome.i -deal.com/Parity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 1 of 2 t Upcoming Calendar H Overview ][ Result JrE~C~lj Exhibit B-5 Morgan Keegan & Company, Inc. - Memphis, TN's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A .=~~~IR'Jrl?:'. For the aggregate principal amount of $100,730,000.00, we will pay you $106,822,206.04, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 4.0000 05/01/2007 5,480M 5.0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 4.0000 05/01/2010 3,555M 3.5000 05/01/2011 6,420M 3.5000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 5.0000 05/01 /2025 6,365M 4.2500 Total Interest Cost: $53,109,175.00 Premium: $6,092,206.04 Net Interest Cost: $47,016,968.96 TIC: 4.081788 Time Last Bid Received On:05/18/2005 10:59:16 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Morgan Keegan & Company, Inc., Memphis, TN Contact: Jonathan Nordstrom Title: 1 st vp Telephone:901-529-3720 Fax: 901-579-4465 https://www.newissuehome.i-deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 1981.-2002 ,.Deal L.LC, AI riqhts reserved, Trademarhs https:llwww.newissuehome.i-deal.comlParity/ asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Exhibit B-6 I Upcoming Calendar )[ Overview [Result IrmE~~~i] Goldman, Sachs & Co. - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A ..G~. ""Jrv:.- :~~ A.14ni . F:. For the aggregate principal amount of $100,730,000.00, we will pay you $108,349,639.55, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 5.0000 05/01/2007 5,480M 5.0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 5.0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 5.0000 05/01/2025 6,365M 5.0000 Total Interest Cost: $55,098,500.00 Premium: $7,619,639.55 Net Interest Cost: $47,478,860.45 TIC: 4.086837 Time Last Bid Received On:05/18/2005 10:59:41 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Goldman, Sachs & Co., New York, NY Contact: Rhonda Sentochnik Title: VP Telephone:212-902-6582 Fax: 212-902-3065 https://www .newissuehome.i -deal.comlParity / asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 1981 LLC, Ad i"iqhts reserved! Traderrvlrk.s https://www.newissuehome.i-deal.comlParity/asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Upcoming Calendar ]1 Overview Il_R~~~I!.JmE~~~lm] Exhibit B-7 UBS Financial Services Inc. - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A ..G~"R'lrv:'. ;~~ ,.541 _ F:. For the aggregate principal amount of $100,730,000.00, we will pay you $105,954,411.25, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 4.0000 05/01/2007 5,480M 5.0000 05/01 /2008 5,640M 5.0000 05/01/2009 3,420M 3.2500 05/01/2010 3,555M 3.2500 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 3.5000 05/01/2013 3,985M 4.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 4.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 5.0000 05/01/2025 6,365M 4.3750 Total Interest Cost: $52,046,262.50 Premium: $5,224,411.25 Net Interest Cost: $46,821,851.25 TIC: 4.089490 Time Last Bid Received On:05/18/2005 10:59:31 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: UBS Financial Services Inc" New York, NY Contact Michael Azzinaro Title: VP Telephone:212-713-2880 Fax: 212-969-7795 https://www .newissuehome.i-dea1.com/Parity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 1981.2002 i-Deal LLC, /\:1 reserved, Trademarks https://www .newissuehome.i -deal.comlParity / asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Exhibit B-8 Upcoming Calendar [ Overview .11 Resu~~JlmE~~~'l Citigroup Global Markets Inc. - New York, NY's Bid Virginia Beach Dev Auth $100,730,000 Public Facilities Revenue Bonds, Series 2005A ..G~. ." V:.- ;~~ ~.=an, F:. For the aggregate principal amount of $100,730,000,00, we will pay you $107,371,788.95, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 5,335M 5.0000 05/01/2007 5,480M 5.0000 05/01/2008 5,640M 5.0000 05/01/2009 3,420M 5,0000 05/01/2010 3,555M 5.0000 05/01/2011 6,420M 5.0000 05/01/2012 3,800M 5.0000 05/01/2013 3,985M 5.0000 05/01/2014 4,195M 5.0000 05/01/2015 4,400M 5.0000 05/01/2016 4,620M 5.0000 05/01/2017 4,855M 5.0000 05/01/2018 5,100M 5.0000 05/01/2019 5,360M 5.0000 05/01/2020 5,620M 5.0000 05/01/2021 5,240M 5.0000 05/01/2022 5,500M 5.0000 05/01/2023 5,775M 5.0000 05/01/2024 6,065M 5.0000 05/01/2025 6,365M 4.3750 Total Interest Cost: $54,302,875.00 Premium: $6,641,788.95 Net Interest Cost: $47,661,086.05 TIC: 4.136883 Time Last Bid Received On:05/18/2005 10:59:45 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Citigroup Global Markets Inc., New York, NY Contact: Charles Reed Title: VP Telephone:212-723-7093 Fax: 212-723-8951 https://www .newissuehome.i-deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 19812002 ; D0<11 LLC, Ail rights https://www .newissuehome. i -deal.com/Parity /asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Exhibit C-l [ Upcoming Calendar H Overview...][ Result J[E~~~lml Legg Mason Wood Walker, Inc - Minneapolis, MN's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B =-G~. n,lr-.,:.. .~:J ~.l=I.n, _ F.. For the aggregate principal amount of $9,000,000.00, we will pay you $9,000,009.53, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 220M 4.7500 05/01/2007 285M 4.7500 05/01/2008 300M 4.7500 05/01/2009 320M 4.7500 05/01/2010 330M 4.7500 05/01/2011 350M 4.7500 05/01/2012 365M 4.7500 05/01/2013 380M 4.7500 05/01/2014 405M 5.0000 05/01/2015 425M 5.0000 05/01/2016 440M 5.0000 05/01/2017 05/01/2018 05/01/2019 05/01/2020 2,005M 5.0000 05/01/2021 05/01/2022 05/01/2023 05/01/2024 05/01/2025 3,175M 5.0000 Total Interest Cost: $5,456,212.50 Premium: $9.53 Net Interest Cost: $5,456,202.97 TIC: 4.965915 Time Last Bid Received On:05/18/2005 11 :59:53 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Legg Mason Wood Walker, Inc, Minneapolis, MN Contact: Mike McMahon Title: Telephone:612-332-5415 Fax: https://www.newissuehome.i-deal.comlParity/asp/main. asp ?frame=content&page=parity Bidform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 19812G02 ,Deal LLC, Ail rights resorved, T'd,~i(Yi\Clfk, https://www .newissuehome.i -deal.comlParity / asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 l Upcoming Calendar H Overview II Result ][E~~~II Exhibit C-2 Morgan Keegan & Company, Inc. - Memphis, TN's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B .=~~~III'JT'f'. For the aggregate principal amount of $9,000,000.00, we will pay you $9,000,000.00, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 220M 5.2500 05/01/2007 285M 5.2500 05/01/2008 300M 5.2500 05/01/2009 320M 5,2500 05/01/2010 330M 5.2500 05/01/2011 350M 5.2500 05/01/2012 365M 5.2500 05/01/2013 380M 5.2500 05/01/2014 405M 5.2500 05/01/2015 425M 5.2500 05/01/2016 440M 4,6250 05/01/2017 05/01/2018 05/01/2019 05/01/2020 2,005M 4.7500 05/01/2021 05/01/2022 05/01/2023 05/01/2024 05/01/2025 3,175M 5.1250 Total Interest Cost: $5,523,237.50 Discount: $0.00 Net Interest Cost: $5,523,237.50 TIC: 5.033714 Time Last Bid Received On:05/18/2005 11 :57:01 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Morgan Keegan & Company, Inc., Memphis, TN Contact: lisa donnelly Title: vp Telephone:901-579-4518 Fax: 901-579-4465 https://www .newissuehome.i -deal.com/Parity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: (g1981.2002 ,-Deal LLC, Ail rights reserved, Tra:j(ynwks https://www .newissuehome.i -deal.comlParity / asp/main. asp ?frame=content&page=parity Bidform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 [ Upcoming Calencl(.ir [ Overview II Result j[Ex~~i] Exhitib C-3 First Albany Capital Inc. - Glen Allen, VA's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B :.G~.R'lr..,:'. .~:r ~.=- _ F.. For the aggregate principal amount of $9,000,000.00, we will pay you $9,000,000.00, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Matu rity Date Amount $ Coupon % 05/01/2006 220M 5.5000 05/01/2007 285M 5.5000 05/01/2008 300M 5.2500 05/01/2009 320M 5.1250 05/01/2010 330M 5.1250 05/01/2011 350M 5.1250 05/01/2012 365M 5.1250 05/01/2013 380M 5.1250 05/01/2014 405M 5.1250 05/01/2015 425M 5.1250 05/01/2016 440M 4.7000 05/01/2017 465M 4.7500 05/01/2018 485M 4.8000 05/01/2019 05/01/2020 1,055M 4.9000 05/01/2021 05/01/2022 05/01/2023 05/01/2024 05/01/2025 3,175M 5.1250 Total Interest Cost: $5,531,817.50 Discount: $0.00 Net Interest Cost: $5,531,817.50 TIC: 5.038988 Time Last Bid Received On:05/18/2005 11 :59:05 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: First Albany Capital Inc., Glen Allen, VA Contact: Jim Leavitt Title: Telephone:804-934-0061 Fax: https://www .newissuehome.i -deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: ({) 19812002 ,DUdl LLC, lid Trademarks https://www.newissuehome.i-deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 1 of 2 [ Upcoming Calendar ][ Overview II Result IfE~~~i] Exhibit C-4 Davenport & Company LLC - Richmond, VA's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B o.GI IRIlrv:.. :~:r ~~ _ Eo:, For the aggregate principal amount of $9,000,000,00, we will pay you $9,000,769.55, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 220M 4.5000 05/01/2007 285M 4.5000 05/01/2008 300M 4.7500 05/01/2009 320M 4,7500 05/01/2010 330M 4,7500 05/01/2011 350M 4.7500 05/01/2012 365M 4.7500 05/01/2013 380M 5.0000 05/01/2014 405M 5.0000 05/01/2015 425M 5.0000 (25/01 (20112. 05/01/2017 ~~ 9_5/01 /2018 05/01/2019 -~--- 95/01/2020 2,445M 5.1250 05/01 /2021 Q_5/01.L.2022 QQ(01!202~ 05/01/2024 95/01/2025 3,175M 5.2500 Total Interest Cost: $5,645,612.50 Premium: $769.55 Net Interest Cost: $5,644,842.95 TIC: 5.128471 Time Last Bid Received On:05/18/2005 11 :59:29 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Davenport & Company LLC, Richmond, VA Contact: Joe Paucke Title: Vice President Telephone:804-644-4200 Fax: 804-780-2003 https://www .newissuehome.i -deal.com/Parity / asp/main. asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: @ 1981-2002 ;-Deal LLC, ;,\:1 re~':>c(\icd, Trademarks https://www.newissuehome.i-deal.com/Parity/ asp/main. asp ?frame=content&page=parity B idform&custom... 05/1812005 PARITY Bid Form Page 1 of 2 [ Upcoming Calendar ][ Overview Il Result l[mE~cei'] Exhibit C-5 Raymond James & Associates, Inc. - St. Petersburg, FL's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B ..G'IBIJrv:.. ;~:r 4~ n, _ .;. For the aggregate principal amount of $9,000,000.00, we will pay you $9,002,954.55, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 220M 5.0000 05/01/2007 285M 5.0000 05/01/2008 300M 5.0000 05/01/2009 320M 5.0000 05/01/2010 330M 5.0000 05/01/2011 350M 5.0000 05/01/2012 365M 5.0000 05/01/2013 380M 5.0000 05/01/2014 405M 5.0000 05/01/2015 425M 5.0000 05/01/2016 440M 5.0000 05/01/2017 465M 5.1250 05/01/2018 485M 5.1250 05/01/2019 510M 5.1250 05/01/2020 95/01{2021 05/01/2022 05/01/2023 05/01/2024 05/01/2025 3,720M 5.3000 Total Interest Cost: $5,707,776.25 Premium: $2,954.55 Net Interest Cost: $5,704,821.70 TIC: 5.185203 Time Last Bid Received On:05/18/2005 11 :59: 15 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Contact: Title: Telephone: 727 -573-8293 Fax: 727-573-8616 Raymond James & Associates, Inc., S1. Petersburg, FL Alex Marcinkicwcz https://www .newissuehome. i -deal.comJParity / asp/main.asp ?frame=content&page=pari ty B idform&custom... 05/18/2005 " PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: 19812002 i-Deal LLC, AI rights reserved, Tradom;;\rkS https://www .newissuehome.i -deal.comlParity /asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 1 of 2 Upcoming Calendar )[ Overview II Result lrE~cei-] Exhibit C-6 BB& T Capital Markets - Richmond, VA's Bid Virginia Beach Dev Auth $9,000,000 Taxable Public Facilities Revenue Bonds, Series 2005B ..el1 IlR,JFV:.. :~~ ,~54l _ F:. For the aggregate principal amount of $9,000,000.00, we will pay you $9,001,853.60, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount $ Coupon % 05/01/2006 220M 5.5000 05/01/2007 285M 5.5000 05/01 /2008 300M 5.2500 05/01/2009 320M 5.0000 05/01/2010 330M 5.0000 05/01/2011 350M 5.0000 05/01/2012 365M 5.0000 05/01/2013 380M 5,0000 05/01/2014 405M 5.0000 05/01/2015 425M 5.0000 05/01/2016 05/01/2017 05/01/2018 Q!:i/01/2S)19 05/01/2020 2,445M 5.1500 Q5LQJ/2021 Oq/O 1 /2022 Q!;i/O 1/2023 05/01/2024 Q5/01/2025 3,175M 5.3000 Total Interest Cost: $5,713,730.00 Premium: $1,853.60 Net Interest Cost: $5,711,876.40 TIC: 5.194777 Time Last Bid Received On:05/18/2005 11 :59:54 EDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: BB&T Capital Markets, Richmond, VA Contact: Sam Stoakley Title: Telephone:804-780-3291 Fax: https://www.newissuehome.i-deal.comlParity/asp/main. asp ?frame=content&page=parity B idform&custom... 05/18/2005 PARITY Bid Form Page 2 of 2 Issuer Name: City of Virginia Beach Development Authority Company Name: Accepted By: Accepted By: Date: Date: rf) 1981-2002 iuDcal LLC; /d n;;r-,ts roservod, Trademarks https://www .newissuehome.i -deal.com/Parity / asp/main.asp ?frame=content&page=parity B idform&custom... 05/18/2005 - 41 - Item V-J. 7. ORDINANCES/RESOLUTIONS ITEM # 53809 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED, AS REVISED: Resolution APPOINTING JAMIE E.K. TYLER, AIMEE E. KNAPP and NELL FORD as Assistant City Attorneys Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M, Dyer, 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: Reba S. McClanan Council Members Absent: None April 12, 2005 1 A RESOLUTION APPOINTING JAMIE E. K. TYLER, 2 AIMEE E. KNAPP AND NELL L. FORD AS 3 ASSISTANT CITY ATTORNEYS 4 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 5 VIRGINIA: 6 That, pursuant to ~ 2-166 of the Code of the City of Virginia 7 Beach, Jamie E. K. Tyler and Aimee E. Knapp are hereby appointed as 8 Assistant City Attorneys, effective May 1, 2005, and Nell L. Ford 9 is hereby appointed as Assistant City Attorney, effective May 15, 10 2005. 11 Adopted by the Council of the City of Virginia Beach, 12 Virginia, on the 12th day of April , 2005. CA9589 H:\GG\Ordres\Tyler-Knapp.Appointment.Res.doc R-2 April 12 2005 A?iJ~T~/tt:JCIENCY: City Attorney's Office - 42- Item K. PLANNING ITEM # 53810 1. JOHNC.ANDMARYVOGEL TRUST VARIANCE 2. ENOCH BAPTIST CHURCH MODIFICATION TO CONDITIONAL USE PERMIT (Approved: 12/16/97 and 8/28/2001) 3. GOOD SAMARITAN EPISCOPAL CHURCH MODIFICATION OF CONDITION No.5 CONDITIONAL USE PERMIT (Approved: 12/13/1976 and 11/9/2004) 4. LAND & BUILDING IV, L.C. RENTAL CENTER MODIFICATION OF PROFFER NO.1 CONDITIONAL CHANGE OF ZONING (Approved: 3/28/2000 - Troy A. Titus) 5. MICHAEL J. & HELEN V. STANDING/ FOGGS SEAFOOD CORPORATION NONCONFORMING USE 6. RICK GRAHAM CONDITIONAL USE PERMIT 7. JAMES E. MILLER CONDITIONAL USE PERMIT April 12, 2005 - 43- Item K.1. PLANNING ITEM # 53811 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council APPROVED IN ONE MOTION Items 1,2,3,4 (DEFERRED), 5, 6 and 7 of the PLANNING BY CONSENT AGENDA. Item 4 was DEFERRED INDEFINITELY, BY CONSENT. Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 Council Lady McClanan voted a VERBAL NAY on Item K.5. (Standing/Foggs Seafood) April 12, 2005 - 44- Item K.J. PLANNING ITEM # 53812 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council APPROVED a Variance to 94.4 (b) of the Subdivision Ordinance that requires all newly created lots meet all the requirements of the City Zoning Ordinance (CZO) upon application of JOHN C. AND MARY VOGEL TRUST to subdivide a family parcel at 2388-2400 London Bridge Road. Appeal to Decisions of Administrative Officers in regard to certain elements of the Subdivision Ordinance, Subdivision for John C. and Mary Vogel Trust, Property is located at 2388-2400 London Bridge Road (GPIN 24050006930000), DISTRICT 7 - PRINCESS ANNE The following condition shall be required: 1. The subdivision of the sites shall substantially adhere to the submitted plan entitled "Preliminary Subdivision of Lot A-I, Princess Anne Hunt Club, Inc. for John Vogel", updated 06/08/01, prepared by NDI, L.L.c. Basgier and Associates Division, Said plan has been exhibited to the Virginia Beach City Council and is on file in the Virginia Beach Planning Department, Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 April 12, 2005 - 45 - Item K.2. PLANNING ITEM # 53813 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council MODIFIED the application of ENOCH BAPTIST CHURCH's Conditional Use Permit (approved by City Council on and December 16, 1997, and August 28, 2001) to allow a child care center in conjunction with the church ORDINANCE UPON APPLICATION OF ENOCH BAPTIST CHURCH FOR THE MODIFICATION OF A CONDITIONAL USE PERMIT APPROVED BYCITYCOUNCIL ONAUGUST28, 2001 R040531244 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of Enoch Baptist Church for the Modification of a Conditional Use Permit approved by City Council on August 28, 2001. The proposal would allow a child care center in conjunction with the church. Property is located at 5641 Herbert Moore Road (GPIN 14682411340000). DISTRICT 2 KEMPSVILLE The following condition shall be required: 1, All conditions attached to the Conditional Use Permit granted by the City Council on August 28,2001, shall remain in affect. This Ordinance shall be effective in accordance with Section 107 (f) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twelfth of April Two Thousand Five Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M, Dyer, 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 April 12, 2005 - 46- Item K.3. PLANNING ITEM # 53814 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council MODIFIED Condition No.5 upon application of GOOD SAMARITAN EPISCOPAL CHURCH of a Conditional Use Permit (approved by City Council on December 13, 1976, and November 9, 2004) re certain level of improvements to the adjacent right-ofway ORDINANCE UPON APPLICATION OF GOOD SAMARITAN EPISCOPAL CHURCH FOR THE MODIFICATION OF A CONDITIONAL USE PERMIT APPROVED BY CITY COUNCIL ON NOVEMBER 9, 2004. R040531245 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of Good Samaritan Episcopal Church for the Modification of a Conditional Use Permit approved by City Council on November 9, 2004, Property is located at 848 Baker Road (GPIN 14681460320000), DISTRICT 2 - KEMPSVILLE The following conditions shall be required: 1, All conditions attached to the Conditional Use Permit granted by the City Council on December 13, 1976, shall remain in affect and all conditions attached to the Conditional Use Permit granted by the City Council on November 9, 2004, shall remain in affect with the exception of Condition #5, 2. Improvements, if any, shall be installed along Herbert Moore Drive to match the existing geometrics of the right-of way. This Ordinance shall be effective in accordance with Section 107 (f) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twelfth of April Two Thousand Five Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, 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 April 12, 2005 - 47- Item K.4. PLANNING ITEM # 53815 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council DEFERRED INDEFINITELY MODIFICATION of Proffer Number 1 upon application of LAND & BUILDING, L.c. re Conditional Change of Zoning (approved by City Council on March 28, 2000 Troy A. Titus), re a building strip mall: ORDINANCE UPONAPPLICATIONOF LAND & BUILDINGIV. L.c. FOR THEMODIFICATIONOF PROFFERS FORA CONDITIONAL CHANGE OF ZONING APPLICATION APPROVED BY CITY COUNCIL ON MARCH 28, 2000 (TROY A, TITUS). Ordinance upon Application of Land & Building IV. L. C. for the Modification of Proffers for a Conditional Change of Zoning application approved by City Council on March 28, 2000 (Troy A. Titus). Property is located at 5221 Indian River Road (GPIN 14654704140000). The Comprehensive Plan designates this site as being part of the Primary Residential Area, suitable for appropriately located suburban residential and non-residential uses consistent with the policies of the Comprehensive Plan. The purpose of the requested modification is to develop the site for a strip retail center rather than the previously approved office building. DISTRICT 1 - CENTER VILLE Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, 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 April 12, 2005 - 48- Item K.5 PLANNING ITEM # 53816 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED a Resolution upon application of MICHAEL J. and HELEN V. STANDING /FOGGS SEAFOOD CORPORATION re the enlargement of a Nonconforming Use to enlarge the existing free standing restaurant Resolution upon Application of Michael J and Helen V Standing / Foggs Seafood Corporation for the enlargement of a Nonconforming Use on property located at 415 Atlantic Avenue (GPIN 24273219130000). DISTRICT 6 - BEACH The following conditions shall be required: 1. The site shall be developed substantially in accordance with the submitted plans titled "Schematic Site Plan for Waterman's Addition" prepared by Thomas Hamilton Associates, which has been exhibited to the City Council and is on file in the Department of Planning. 2. The building renovations shall substantially adhere to the exhibits titled "Waterman's Addition Interior "and "Waterman's Addition Exterior" prepared by Thomas Hamilton Associates, which has been exhibited to the City Council and is on file in the Department of Planning. 3. The retail area on the site shall not exceed six hundred and sixty (660) square feet as indicated on the plan. 4, One building sign shall be allowed oriented toward the Atlantic Ocean in accordance with the dimensional requirements listed in Section 2120) of the City Zoning Ordinance, Voting: 1 0-1 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, 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: Reba SMcClanan Council Members Absent: None April 12, 2005 1 2 3 4 5 A RESOLUTION AUTHORIZING THE EXPANSION OF A NONCONFORMING USE ON PROPERTY LOCATED AT 415 ATLANTIC AVENUE, IN THE BEACH DISTRICT WHEREAS, Michael J and Helen V. StandingjFoggs Seafood 6 Corp., (hereinafter the "Applicant"), has made application to the 7 City Council for authorization to expand a nonconforming use, a 8 freestanding restaurant, situated on a certain lot or parcel of 9 land having the address of 415 Atlantic Avenue, in the RT-1 10 Resort Tourist District; and 11 WHEREAS, the said use, a freestanding restaurant, is not a 12 permitted use in the RT-1 Resort Tourist District, but is 13 already existing on the parcel and is a nonconforming use; and 14 WHEREAS, pursuant to Section 105 of the City Zoning 15 Ordinance, the expansion of a nonconforming use is unlawful in 16 the absence of a resolution of the City Council authorizing such 17 action upon a finding that the proposed use, as expanded, will 18 be equally appropriate or more appropriate to the zoning 19 district than is the existing use; 20 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY 21 OF VIRGINIA BEACH, VIRGINIA: 22 That the City Council hereby finds that the proposed use, 23 as expanded, will be equally appropriate to the district as is 24 the existing use. 25 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF 26 VIRGINIA BEACH, VIRGINIA: 27 That the proposed expansion of the Applicant's use of the 28 parcel is hereby authorized, upon the following conditions: 29 1 . The site shall be developed substantially in 30 accordance with the submitted plans titled "Schematic Site Plan 31 for Waterman's Addition" prepared by Thomas Hamilton Associates, 32 which has been exhibited to the City Council and is on file in 33 the Department of Planning. 34 2 . The building renovations shall substantially adhere to 35 the exhibits titled "Waterman's Addition Interior" and 36 "Waterman's Addition Exterior" prepared by Thomas Hamilton 37 Associates, which has been exhibited to the City Council and is 38 on file in the Department of Planning. 39 3 . The retail area on the site shall not exceed 660 40 square feet as indicated on the plan. 41 4. One building sign shall be allowed oriented toward the 42 Atlantic Ocean in accordance with the dimensional requirements 43 listed in Section 212(j) of the City Zoning Ordinance. 44 Adopted by the Council of the City of Virginia Beach on the 12th day of April, 2005. CA-9586 OID\Ordres\nonconforming-Foggs.doc R-l March 30, 2005 2 APPROVED AS TO CONTENT: ~ ~~30"()5 Planning~artment APPROVED AS TO LEGAL SUFFICIENCY: /1ji#:!o/!t !L~ 3 - 49- Item K. 6. PLANNING ITEM # 53817 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED an Ordinance upon application of RICK GRAHAMfor a Conditional Use Permit re automotive repair garage: ORDINANCE UPON APPLICATION OF RICK GRAHAM FOR A CONDITIONAL USE PERMIT FOR AN AUTOMOTIVE REPAIR GARAGE 2004. R040531246 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Rick Graham for a Conditional Use Permit for an automotive repair garage on property located at 1228 Jensen Drive (GPIN 24173267690000). DISTRICT 6 - BEACH The following conditions shall be required: 1, The applicant shall obtain all necessary permits, inspections and approvals from the Fire Department and the Permits and Inspections Division of the Planning Department before occupancy of the building. A Certificate of Occupancy or the use shall be obtained from the Permits and Inspections Division of the Planning Department. 2. All auto repair must take place inside the building. 3, No outside storage or display of equipment, parts or materials shall be permitted. 4, No outdoor storage of vehicles in a state of obvious disrepair shall be permitted on this property. Ifvehicles in this condition require storage, then such vehicles shall be stored within the building or within the fenced bulk storage area owned and operated by the applicant across the street on Jensen Drive. 5, All outdoor lighting shall be shielded to direct light and glare onto the premises; said lighting and glare shall be deflected, shaded, andfocused away from adjoiningproperty. Any outdoor lighting fixtures shall not be erected any higher than fourteen (I 4) feet. This Ordinance shall be effective in accordance with Section 107 (j) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twelfth of April Two Thousand Five April 12, 2005 - 50- Item K.6. PLANNING ITEM # 53817 (Continued) Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, 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 April 12, 2005 - 51 - Item K. 7 PLANNING ITEM # 53818 Upon motion by Vice Mayor Jones, seconded by Councilman Maddox, City Council ADOPTED an Ordinance upon application of JAMES E. MILLER for a Conditional Use Permit for a bulk storage yard ORDINANCE UPON APPLICATION OF JAMES E. MILLER FOR A CONDITIONAL USE PERMIT FOR A BULK STORAGE YARD R040531247 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of James E. Miller for a Conditional Use Permit for a bulk storage yard on property located at 593 South BirdneckRoad (GPIN 24164830210000), DISTRICT 6 -BEACH The following conditions shall be required: 1, Where no existing mature landscaping is located along the perimeter of the storage yard adjacent to the neighboring properties, Category VI screening, as specified in the Landscape, Screening, and Buffering Specifications and Standards for the City of Virginia Beach is required. 2. The limits of the bulk storage area shall be confined to the designated locations depicted on the submitted plan entitled Site Layout for James E. Miller dated 01/03/05. 3. A six-foot (6') high wood privacy fence shall be installed along the rear and sides of the bulk storage yard area up to the western side of the Dominion Virginia Power easement, 4. To provide for erosion and sediment control, the area at the entrance to the bulk storage yard to the rear of the existing asphalt parking area shall be graded and compacted with railroad ballast (acceptable to the Development Services Center) shall be installed This Ordinance shall be effective in accordance with Section 107 (j) of the Zoning Ordinance, Adopted by the Council of the City of Virginia Beach, Virginia, on the Twelfth of April Two Thousand Five April 12, 2005 - 52- Item K.7. PLANNING ITEM # 53818 (Continued) Voting: 11-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, 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 April 12, 2005 - 53- Item V-L.1. APPOINTMENTS ITEM # 53819 BY CONSENSUS, City Council RESCHEDULED: COMMUNITY POLICY AND MANAGEMENT TEAM - CSA - AT RISK COMMUNITY SERVICES BOARD FRANCIS LAND HOUSE BOARD OF GOVERNORS HEALTH SERVICES ADVISORY BOARD HUMAN RIGHTS COMMISSION INVESTMENT PARTNERSHIP ADVISORY COMMITTEE MINORITY BUSINESS COUNCIL OPEN SPACE SUBCOMMITTEE PARKS AND RECREATION COMMISSION PERFORMING ARTS THEATRE ADVISORY COMMITTEE PERSONNEL BOARD THE PLANNING COUNCIL TOWING ADVISORY BOARD April 12, 2005 - 54- Item V-D. ADJOURNMENT ITEM # 53820 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:21 P.M. Q~___c2.___~~~(~ Beverly 0. Hooks, CMC Chief Deputy City Clerk ~ City Clerk Meyera E. Oberndorf Mayor City of Virginia Beach Virginia April 12, 2005