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Home My WebLink AboutMARCH 11, 2008 MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR MEYERA E. OBERNDORF. At-Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 WILLIAM R. DeSTEPH, At-Large HARRY E. DlEZEL, Kempsville - District 2 ROBERT M. DYER" Centerville - District I BARBARA M. HENLEY, Princess Anne - District 7 REBA S. McCLANAN, Rose Hall - District 3 JOHN E. UHRIN, Beach - District 6 RON A. VILLANUEVA, At-Large ROSEMARY WILSON, At-Large JAMt."'S L. WOOD, Lynnhaven -District 5 CITY COUNCIL AGENDA CITY MANAGER - JAMES K. SPORE CITY ATTORNEY - LESLIE L. LILLEY CITY CLERK - RUTH HODGES FRASER, MMC 11 MARCH 2008 I. CITY MANAGER'S BRIEFING - Conference Room - 3:00 PM A. HEALTH CARE PROGRAM PLAN Susie Walston, Co-Chair, Benefits Executive Committee II. CITY COUNCIL COMMENTS III. REVIEW OF AGENDA IV. INFORMAL SESSION - Conference Room - A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION I ! CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE:(757) 385-4303 FAX (757) 385-5669 E-MAIL: Ctycncl@vbgov.com 4:30 PM I II V. FORMAL SESSION - Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: Reverend Randy Orwig Pastor, Tidewater United Methodist Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL and FORMAL SESSIONS March 4, 2007 G. AGENDA FOR FORMAL SESSION H. CONSENT AGENDA I. ORDINANCE/RESOLUTION 1. Ordinance to AUTHORIZE the City Manager to enter into a Lease Agreement with Ranco Road Associates, L.c., to relocate the Emergency Medical Services (EMS) administration office. 2. Resolution to AUTHORIZE a non-binding term sheet re PHASE IV of the TOWN CENTER project: requesting approval of the City of Virginia Beach Development Authority; and, AUTHORIZING the development of supplemental project documents. I II J. PLANNING 1. Application of RUNNYMEDE CORPORATION for the closing. vacating and discontinuinfZ of a portion of Cleveland Street between Witchduck and Newtown Roads to incorporate the area into their adjacent development site. DISTRICT 2 - KEMPSVILLE RECOMMENDA nON DENIAL 2. Variance to S5b of the Site Plan Ordinance that requires all newly created lots meet the requirement of the Floodplain Regulations for JASON and AMY PRZYMUZALA at 601 Cypress Avenue re a second story addition to their existing residence. DISTRICT 6 - BEACH RECOMMENDA nON APPROVAL 3. Applications for Conditional Use Permits: a. KATHERINE M. GRIER, re a church in a Shopping Center at 1628 Independence Boulevard, Suite 1504. DISTRICT 4 - BA YSIDE RECOMMENDA nON APPROVAL b. BOB SIMEONE re one (1) bulk storage cargo trailer at 2633 Production Road. DISTRICT 6 - BEACH RECOMMENDATION APPROV AL 4. Application of PRECISION MEASUREMENTS, INC, for a ChanfZe ofZoninfZ District Classification from AG-2 Agricultural District to 0-1 Office District re development of a office building with associated parking and landscaping at 3021 Holland Road. DISTRICT 7 -PRINCESS ANNE RECOMMENDA nON APPROVAL I II K. APPOINTMENTS BIKEWAYS and TRAILS ADVISORY COMMISSION COMMUNITY SERVICES BOARD HUMAN RIGHTS COMMISSION MINORITY BUSINESS COUNCIL L. UNFINISHED BUSINESS 1. CITY COUNCIL SESSIONS SCHEDULE FOR 2008: a. b. July 1 July 8 November 4 November 11 November 18 November 25 December 2 December 9 December 16 December 23 December 30 c. d. e. f. g. h. 1. J. k. M. NEW BUSINESS N. ADJOURNMENT Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Cancel all sessions - Election Day Cancel all sessions - City Holiday Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Cancel all sessions Cancel all sessions Cancel all sessions PROPOSED RESOURCE MANAGEMENT PLAN WORKSHOPS April 8 (Workshop) April 15 (Workshop) April 17 (Public Hearing) April 22 (Workshop) April 22 (Public Hearing) April 29 (Workshop) May 6 (Reconciliation Workshop) May 13 (Adoption) Council Conference Room Council Conference Room Green Run High School - 6 p.m. Council Conference Room Council Chamber - 6 p.m. Council Conference Room Council Conference Room Council Chamber - 6 p.m. I II CITY COUNCIL ONE-DAY RETREAT MAY 12, 2008 8:30 a.m. - 5:30 p.m. ECONOMIC DEVELOPMENT CONFERENCE ROOM TOWN CENTER CITY COUNCIL TWO-DAY RETREAT AUGUST 22-23, 2008 ECONOMIC DEVELOPMENT CONFERENCE ROOM TOWN CENTER ********* If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 *********** Agenda 3/11/2008AFB www.vbgov.com I II - 1 - MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 11,2008 Mayor Meyera E. Oberndorf called to order the CITY COUNCIL BRIEFING re the HEALTH CARE PROGRAM PLAN in the City Council Conference Room, City Hall, on Tuesday March 11, 2008, at 3:00 P.M Council Members Present: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. OberndorJ, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James 1. Wood Council Members Absent: None March 11, 2008 I II - 2 - CITY COUNCIL BRIEFING HEALTH CARE PROGRAM PLAN 3:00 P.M. ITEM # 57390 Susie Walston, Chief of Staff, advised direction and input has been provided by Virginia Beach City Council, the School Board, City Manager, Superintendent of Schools, Employee Benefits Review Task Force, Mercer Human Resources Consulting, City Employee Health Care Committee, Virginia Beach City Public Schools, Employee Health Care Committee and the Benefits Executive Committee. Benefits Executive Committee . Farrell Hanzaker, Chief Financial Ofjicer - VBCPS Susie Walston, Chief of Staff-City of Virginia Beach Dave Hansen, Chief of Finance and Technology - City of Virginia Beach John Mirra, Assistant Superintendent of Human Resources - VBPCS Fagan Stackhouse, Director of Human Resources - City of Virginia Beach Patti Phillips, Director of Finance - City of Virginia Beach Sammy Cohen, Director of Business Services - VBCPS Catheryn Whitesell, Director of Management Services - City of Virginia Beach . . . . . . . Linda Matkins is an ExOfjicio of the Benefits Executive Committee, Benefits Co-Coordinator - City and Schools Goals Continue to: .:. Offer affordahle, quality health care as part of a competitive total compensation package .:. Control costs · Manage health care trend · Reduce GASB 45 liahility .:. Maintain a healthy workforce .:. Achieve hest prices for goods and services .:. Focus on health risks that are significant cost drivers .:. Promote a culture of change and accountahility: Managers, Employees, Partners .:. Promote health awareness/education Prior Plan Changes 2006 .:. Implemented coinsurance on pharmacy .:. Increased copay on high cost diagnostic imaging 2007 .:. Implemented coinsurance on emergency room visits .:. Increased retiree premiums (Schools) .:. Created Health Reimhursement Arrangement 2008 .:. Set City/Schools employer contrihution at $5,400 .:. Reduced preventive care copay to $0 .:. Lowered dependent age to 23 (City) and 24 (Schools) .:. Increased retiree premiums with less than 25 years of service to pay full cost (City and Schools) March 11, 2008 I II - 3 - CITY COUNCIL BRIEFING HEALTH CARE PROGRAM PLAN ITEM # 57390 (Continued) Future Plan Opportunities .:. Plan Design · Promote cost awareness in plan selection and choice of provider services · Provide health savings accounts · Review dependent and retiree eligibility .:. Contributions · Evaluate employer contribution funding · Evaluate employee/retiree premium structure .:. Medical Management · Provide incentives for healthy behaviors · Manage health risks and medical cost drivers .:. GASB Funding · Develop formal funding policy · Continue to reduce liability .:. City/Schools Contribution - $5,400 .:. Rate Setting · by June 2008 · Begin to adjust employee rates to reflect true costs (remove implicit subsidy) .:. Increase health education and awareness .:. Plan Changes: Linda Matkins, Benefits Coordinator - City and Schools, madmade plan changes in prior years have seen positive trends; however, health care will continue to rise. In order to impact claims and GASB liability, a 3-Year Strategy has been developed. 3-Year Strategy 2009 Recommendations Deductible on all plans (HMO plan - $100 Individual/$200 Family) Align City retiree rates to that of School retirees Elminate $0 premium on HMO for employees ($10 mo) No referral required on HMO Savings (Reduction to Cost) $1.2 $0.5 $2.0 $0.0 $3.7 $1.9 $4.4 $0.0 $0.0 $6.3 $0.2 $0.5 $0.0 $0.0 $0.7 3-Year Strategy 2010 Recommendations .:. City / Schools Contribution - $5,400 .:. Create High Deductible Health Plan (HDHP) with Health Savings Account (HSA) .:. Enhance disease management and lifestyle management programs .:. Increase generic drug usage .:. Eliminate double employeelfamiiy tiers March 11, 2008 I II - 4 - CITY COUNCIL BRIEFING HEALTH CARE PROGRAM PLAN ITEM # 57390 (Continued) 3-Year Strategy 2010 and 2011 Considerations .:. Implement co-insurance .:. Increase service years for access to retiree plans .:. Restrict plan choice(s) for new hires .:. Restrict plan eligibility and choice(s) for future retirees .:. Adjust all retiree plans and tiers to reflect costs .:. Provide incentive for completion of Health Risk Assessment .:. Impose disincentive for health risk behaviors Ken Jeffries, Senior Consultant - Mercer Human Resources Consulting, advised a re-evaluation of the GASB 45 Liability was accomplished at the end of 2008. The prior evaluation was accomplished in 2006 with claims data through March of 2006. GASB 45 Liability .:. New Valuation -lower liability · "Funded" $157-MILLION (down from $200.6-MILLION) "Funded" Annual Required Contribution (ARC) $19.5-MILLION (down from 28. 7-MILLION) .:. Funds have been reservedfor ARC on June 30,2008 · $8.9-MILLION (City $5-MILLION / Schools $3.9-MILLION) .:. Confirmfunding policy by June 2008 .:. Determine funding vehicle/trust fund by June 2008 · Options: VACO/VML pooled trust or separate City/Schools trust · Requires establishment of Finance Board *ARC represents the amount; the City would have to fund to be considered a "fully funded plan". Audits .:. City and School Auditors developing 2007 Claims Audit process .:. Provide amnesty period to be followed by Dependent Eligibility audit The cost of this audit is labor intensive and entails approximately $125,000 to $150,000 however; the return on investment could be ten times this amount. Susie Walston advised Optima is a third party Administrator, under the self funded plan. There was a competitive process from a number of vendors and Optima was selected for the current contract period, as providing the best provider discounts, least administrative cost and the better refunder. RFP Fully Insured .:. Optima's estimate to convert self insured to fully insured · Additional $7-MILLION - 7% increase · Negative impact on GASB liability .:. Cost to conduct RFP - $40,000 to $50,000 .:. Mercer's review of Optima's estimate confirms that afully insured health plan will result in increased cost to Virginia Beach (and consequently an increase to our GASB liability) .:. Recommend against conducting an RFP March II, 2008 - 5 - CITY COUNCIL BRIEFING HEALTH CARE PROGRAM PLAN ITEM # 57390 (Continued) Health Care Self Insurance Fund .:. Fund Balance · S17-MILLION at calendar year end - adjustedfor Incurred But Not Reported (IBNR) claims and pharmacy rebates · Flat trend in 2007 created fund balance - prior six years were within -2% to 3% of original projections 2001 ($3,000,000) 2001 $0 2002 ($2,000,000) 2002 $0 2003 ($1,000,000) 2003 $0 2004 $0 2004 $0 2005 ($3,000,000) 2005 $0 2006 $3,000,000 2006 $3,000,000 2007 $14,000,000 2007 $14,000,000 Total $8,000,000 Total $17,000,000 .:. Establish Reserve · Maintain reserve equal to one month's claims (S8-MILLION based upon 2007 claims costs) .:. Fund Management · Establish methodology for monitoring fund quarterly · Annual considerations: - Use for GASB funding - Use to reduce increases to projected City/Schools contributions - Use to reduce increases to projected employee increases - Consider using to establish Health Savings Accounts Farrell Hanzaker, Chief Financial Officer - Virginia Beach City Public Schools, advised the Health Savings Account is a significant departure from whatever has been done. This concept is continuing to grow and is a significantly different plan. It is portable as employees, if they should leave the City or Schools, they may take these funds with them for future medical expenses. Conclusion .:. Incremental changes over time to temper financial impact on City/Schools and employees .:. Increase education and awareness .:. Request City Council and School Board support Vice Mayor Jones requested information re impact of different levels of deductibles and comparisons re how different increases in the deductibles will affect the rates. Susi advised the Committee wished to review co-insurance opposed to co-pays, which is a cost sharing based on percent of coverage. March 11, 2008 I III - 6 - CITY COUNCIL BRIEFING HEALTH CARE PROGRAM PLAN ITEM # 57390 (Continued) Councilman Dyer suggested one of the quarterly Town Meetings be scheduled for attendance by employees and their comments re the Health Care Program Plan. Councilman DeSteph referenced the recommendation for a claims audit. Councilman DeSteph was interested in a company involved in medial claims only. Ms. Walston advised the Internal Auditor, when this recommendation cameforwardfrom the Employee Benefits Review Task Force, had researched and advised this claims audit is prior to payment. Research has been done and the perimeters are being put forth to look for a claims audit for the actual expense for 2007. The City Manager advised an RFP is being developed which would be sent to companies similar to what Councilman DeSteph mentioned. These would be specializedfirms. Susie Walston advised the annual City/School contribution in the amount of $5400 per employee is the amount to be retained within the City's Operating Budget for the new fiscal year. Councilman DeSteph believes the budget needs to be presented to City Council, with the impact re the health coverage, prior to approval of the Health Care Program Plan. Susie Walston advised the initial cost of the higher deductible could be provided. These are not the exact plans recommended for 2009. The rates and plan are not established until June. A time line on the RFP process for the claims audit can be provided. Additional cost savings, if different levels of deductible, will be provided. Council Lady Wilson advised the comments of the Virginia Beach City School Board will also be important. Councilman Villanueva requested the Staff make a concerted effort to make sure all employees are invited to the Public Hearing - Proposed Resource Management Plan on April 17, 2008. Councilman Villanueva requested copies of the Consultant's report. The Consultant's Report and reason for recommendations not to submit a Request for Proposal (RFP) re converting self insured to fully insured shall be provided to City Council. BY CONSENSUS, the staffre the Health Care Program Plan shall move cautiously and continue with the process and to encompass suggestions of City Council. March 11, 2008 I III - 7 - CITY COUNCIL COMMENTS 4:22 P.M. ITEM # 57391 Mayor Oberndorf advised the Virginia Beach Excellence in Agriculture Award Committee has selected the G. Winston Henley Family as "2007 Virginia Beach Excellence in Agriculture Award" recipients. The event is Thursday, March 27, 2008, Wyndham Virginia Beach Oceanfront, 5700 Atlantic Avenue), at 6:00P.M ITEM # 57392 Councilman Villanueva advised he and the Vice Mayor recently conducted a meeting re the new Western Bayside Recreation Center. There has been a tremendous amount of community comment. In the next several weeks, a report will be provided by City staff. As the population matures, rather than the Olympic pools, pools are reshaping themselves to a circular vortex. In the future, this Recreation Center could be utilized as a template for retrofitting existing Recreation Centers. ITEM # 57393 Councilman Villanueva invited Council Members, to the BizNet Expo 2008, Philippine Cultural Center, 1:00 P.M. to 5:00 P.M., on Saturday, March 15, 2008. The Center is located at 4857 Baxter Road, Virginia Beach. This is an event connecting businesses and the community together. ITEM # 57394 Council Members DeSteph and Wood, Liaisons to the Virginia Aquarium and Marine Science Center, advised all is moving forward and initial issues have been resolved. Construction is within time constraints and budget is in line. ITEM # 57396 Councilman DeSteph advised next Wednesday evening, (March 19,2008, 6:30, P.M), the City Dredging Project Public Hearing will be conducted at side Middle School, Mayor Oberndorf advised Governor Kaine is also planning to come to Virginia Wesleyan College this same evening (March 19, 2008). ITEM # 57397 Councilman Villanueva referenced the horrendous fire at Bill's Flea Market, yesterday March 10, 2008, and congratulated the City Manager and Fire Department for their response. Mayor Oberndorf extended appreciation to the Emergency Medical Services Representatives who stayed at the scene. A very special lady - Member of the EMS, Mrs. James L. Wood, wife of our Council Member stayed throughout the fire. ITEM # 57398 Mayor Oberndorf referenced the informal Historical Meeting re residents of North Virginia Beach. One of the residents made the recommendation for a Museum to commemorate the history of the Oceanfront i.e. surfing. One of the residents advised the Old Post Office Building (at a cost of$5-MILLION) had been a possible choice. Council Lady Henley advised this was not a position of the Historical Society, just expressed by individuals present. March 11, 2008 I I - 8 - AGENDA RE VIE W SESSION 4:35 P.M. ITEM # 57399 11. Ordinance to AUTHORIZE the City Manager to enter into a Lease Agreement with Ranco Road Associates, L.C, to relocate the Emergency Medical Services (EMS) administration building The City Manager advised since the Agenda was printed, staff has spent the last few days working with Councilman Wood and negotiating the lease with Ranco Road Association. The Staff suggests INDEFINITE DEFERRAL as Councilman Wood has made suggestions re improving the process. This item is an attempt to house the EMS in better facilities at a cost effective method This lease is proposed to be three (3) years. Changing the status of EMS is not involved in this lease decision. Councilman Wood believes this item should be placed within the Budget process in order to receive competitive Requests For Proposals. ITEM # 57400 12. Resolution to AUTHORIZE a non-binding term sheet re PHASE IV of the TOWN CENTER project: requesting approval of the City of Virginia Beach Development Authority; and, A UTHORIZING the development of supplemental project documents The City Staff will make a presentation during the Formal Session. The City Manager advised this Term Sheet has been discussed three (3) times in previous Closed Sessions; however, an item that has not been discussed, because of the success of the Westin Tower and the Studio 56 Building, those buildings are now being occupied by individual homeowners. Should there be any shortfalls in the TIF District revenues, THIS will need to be refined so the residential property owners are not impacted Therefore, this would be developed as part of the Development Agreement coming forward within the next few months. Staff wishes to put in place an additional enhancement whereby the developer would be responsible for making up any shortfall. ITEM # 57401 BY CONSENSUS, the following items shall BE DEFERRED INDEFINITELY, BY CONSENT- L ORDINANCE/RESOLUTION 1. Ordinance to AUTHORIZE the City Manager to enter into a Lease Agreement with Ranco Road Associates, L.C., to relocate the Emergency Medical Services (EMS) administration office. Item I shall be DEFERRED INDEFINITELY, BY CONSENT March 11, 2008 - 9 - AGE N DA REV IE W S E S S ION ITEM # 57402 3.b. Applicationfor Conditional Use Permit: BOB SIMEONE re one (1) bulk storage cargo trailer at 2633 Production Road DISTRICT 6 - BEACH This item will be discussed during the Formal Session. ITEM # 57403 BY CONSENSUS, the following items shall compose the PLANNING BY CONSENT AGENDA: L. PLANNING 1. Application of RUNNYMEDE CORPORATION for the closing, vacating and discontinuing of a portion of Cleveland Street between Witchduck and Newtown Roads to incorporate the area into their adjacent development site. DISTRICT 2 - KEMPSVILLE 2. Variance to 95b of the Site Plan Ordinance that requires all newly created lots meet the requirement of the Floodplain Regulations for JASON and AMY PRZYMUZALA at 601 Cypress Avenue re a second story addition to their existing residence. DISTRICT 6 - BEACH 3. Application for Conditional Use Permit: a. KATHERINE M. GRIER, re a church in a Shopping Center at 1628 Independence Boulevard, Suite 1504. DISTRICT 4 - BAYSIDE 4. Application of PRECISION MEASUREMENTS, INC,for a Change of Zoning District Classificationfrom AG-2 Agricultural District to 0-1 Office District re development of a office building with associated parking and landscaping at 3021 Holland Road. DISTRICT 7 -PRINCESS ANNE Item II, Runnymede Corporation, will be DEFERRED INDEFINITELY, BY CONSENT. March 11, 2008 III I I - 10- AGE N DA REV IE W S E S S ION ITEM # 57404 BY CONCENSUS, CITY COUNCIL, RESCHEDULED CITY COUNCIL SESSIONS CHANGES FOR 2008, TO THE CITY COUNCIL SESSION OF MARCH 25, 2008: a. July 1 Briefing, Informal, Formal and Planning. b. July 8 Briefing, Informal, Formal and Planning c. August 5 Briefing Only - 3-5 PM - "National Nite Out" d. August 19 Briefing, Informal, Formal and Planning e. August 22 - 23 City Council 2-day Retreat f November 4 Cancel all Sessions - Election Day g. November 11 Cancel all Sessions - City Holiday h. November 18 Briefing, Informal, Formal and Planning 1. November 25 Briefing, Informal, Formal and Planning j. December 2 Briefing, Informal, Formal and Planning k. December 9 Briefing, Informal, Formal and Planning I. December 16 Cancel all Sessions m. December 23 Cancel all Sessions n. December 30 Cancel all Sessions March 11, 2008 - 11 - ITEM # 57405 Mayor Meyera E. Oberndorf entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.1-3711 (A), Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS: Discussion, consideration of, 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)(l) Council Appointments: Boards, Commissions, Committees, Authorities and Agencies Performance of Council Appointees PUBLICLY-HELD PROPERTY' Discussion or consideration of the, acquisition, or of the disposition of publicly-held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711 (A)(3). Acquisition/Disposition of City Property: Rose Hall District Upon motion by Councilman Uhrin, seconded by Council Lady Wilson, City Council voted to proceed into CLOSED SESSION at 5:00 P.M. Voting: 11-0 Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None (Break: 5:04 P.M. - 5:12 P.M.) (Closed Session: 5:12 P.M. - 5:35 P.M.) (Dinner: 5:35 P.M. - 5:50 P.M.) March II, 2008 I II - 12 - FORMALSESSION VIRGINIA BEACH CITY COUNCIL March 11, 2008 6:00 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, March 11, 2008, at 6:00 P.M Council Members Present: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James 1. Wood Council Members Absent: None INVOCATION: Reverend Randy Orwig Tidewater United Church of Christ PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vice Mayor Jones DISCLOSED, for many years, he served on the Board of Directors of Resource Bank. Three (3) years ago, Fulton Financial Corporation ("Fulton Financial '') purchased Resource Bank. On March 31, 2007, Vice Mayor Jones retired from the Board of Directors. Although, he is no longer a Board Member, he owns stock in Fulton Financial, and that stock ownership causes him to have a "personal interest" in Fulton Financial. However, due to the size of Fulton Financial and the volume of transactions it handles in any given year, Fulton Financial, or any of the banks that are owned by Fulton Financial, may have an interest in numerous matters in which Vice Mayor Jones has no personal knowledge. In order to ensure his compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is his practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which he might have an actual or potential conflict. If, during his review, he identifies any matters, Vice Mayor Jones will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April] 0, 2007, is hereby made a part of the record Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accounting firm 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 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 this disclosure. Council Lady Wilson's letter of January 27, 2004, is hereby made a part of the record. March 11, 2008 - 13 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL (Continued) 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 this disclosure. Council Lady Wilson's letter of January 27, 2004, is hereby made a part of the record. March 11, 2008 I II - 14 - Item V-E. CERTIFICATION OF CLOSED SESSION ITEM # 57406 Upon motion by Councilman Dyer, seconded by Council Lady Wilson, 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: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 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 # 57405, Page 11, and in accordance with the provisions of The Virginia Freedom of Information Act, and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NO"ff, THEREFORE, BE IT RESOL VED: 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. rJl~~~ City Clerk March 11, 2008 I I - 15 - Item V-F.] ITEM # 57407 Upon motion by Council Lady Wilson, seconded by Councilman Dyer, City Council APPROVED the Minutes ojthe INFORMAL and FORMAL SESSIONS of March 4, 2008. Voting: 10-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James 1. Wood Council Members Voting Nay: None Council Members Abstaining: William R. "Bill" DeSteph Council Members Absent: None Councilman DeSteph ABSTAINED as he was out of the Country on Family Vacation, and not in attendance during the City Council Session oj March 4, 2008, March 11, 2008 Item V-G.2. ADOPT AGENDA FOR FORMAL SESSION BY CONSENSUS, City Council ADOPTED: - 16- ITEM # 57408 AGENDA FOR THE FORMAL SESSION March 11, 2008 I 'I - 17 - Item V-I. ORDINANCE/RESOLUTION ITEM # 57409 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED IN ONE MOTION Ordinance I (DEFERRED INDEFINITELY) of the CONSENT AGENDA. Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March II, 2008 I II - 18 - Item V-L1. ORDINANCES/RESOLUTIONS ITEM # 57410 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED INDEFINITELY: Ordinance to AUTHORIZE the City Manager to enter into a Lease Agreement with Ranco Road Associates, I.e., to relocate the Emergency Medical Services (EMS) administration office Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James I. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 I 'II - 19 - Item V-L2. ORDINANCES/RESOLVTIONS ITEM # 57411 Phase IV - TOWN CENTER - Block 2 (Beacon Building) Mark Wawner, Project Manager - Town Center, displayed a photograph depicting the site of the new tower (21-story office), Phase IV - Town Center Block 2 (Beacon Building) Town Center Development Recap . Phase I - February 2000 . Office Tower (Block 4) . Towne Bank (Block 5) . Hilton Garden Inn (Block 5 - 176 rooms) . Phase II -June 2003 . 342-unit Cosmopolitan Apartments (Block 10) . Dick's Sporting Goods (Block 12) . 2-story retail/entertainment (Block 8 - Bravo!, Comedy Club, Ruth's Chris Steak House) . Restaurants (Block 3 - Cheesecake Factory, Keegan's) . Phase III - September 2005 . 37-story Westin Hotellcondominium tower (Block 7) . 236-room full service hotel (Floors 5 - 15) . 119 condos (Floors 16 - 36) + penthouselcommon area . 56 condominiums, 14,000 sq. ft. groundfloor retail (Block 6) . Office Building, 97,040 sq. ft. (Block 5 - FY-J 0) March 11, 2008 - 20- Item V-L2. ORDINANCES/RESOLUTIONS ITEM # 574Il (Continued) Virginia Beach Development Authority Support - Tax Increment Financing (TIP) Funded . Phase I . Parking Garage (Block 4) . 1,284 spaces . Plaza Land (Block 8) . Phase II . Parking Garage (Block 10) . 851 spaces . Parking Garage (Block 12) . 574 spaces (269 are for theatre - CIP funded) . Phase III . Parking Garage (Block 7) . 735 public spaces (additional 212for condos - Developer financed) . Pedestrian Bridge (connects garages in Block 12 to Block 7) . Meeting Room/Conference Facility (Block 7) Scope of Improvements Phase IV BLOCK TWO · Single Block, Multi-facility, Mixed-use Development · 21 Stories - 364,000 sq. ft. · Main Lobby, Retail (First Floor) - 34,000 sq. ft. · Parking Garage, 650 Spaces (8 levels) Office Space - 330,000 sq. ft. Developer Obligations Phase IV . Purchase land requiredfor development and construction of Phase IV Tower from Authority (at Authority's cost of acquisition) . Construct all improvements on Block 2 . Estimated Private Investment $72 - $82 million VBDA Obligations Phase IV . Purchase 650-Space Parking Garage . Developer to construct . Estimated cost: $22-28 million . Price determined same manner as Block 10 (Cosmopolitan) and Block 12 (Dick's) garages . Number of STJaces x Per space price (from construction bids) . Price will be known before execution of Phase IV Development Agreement. . To be paid from TIF revenues . Pay for Infrastructure Improvements on Block 2 . Estimated Cost: $650,000 - $850,000 . Lease 1 floor in new 21-story Main Office Tower . Leased Area: - 25,000 square feet . VBDA 's rent . - $30.50 to $31.00/SF or $762,500-$775,000 per year . Lowest rent in tower, other than anchor tenant March 11, 2008 I !I - 21 - Item V-I.2. ORDINANCES/RESOLUTIONS ITEM # 57411 (Continued) ADDITIONAL TERMS Phase IV . Modify Option Land Agreement to permit purchase of Block 2 (Beacon) before Block 12 Commercial Unit . Developer may lease from VBDA up to 10% of parking spaces under long-term lease (so long as approved by bond counsel) . Garage acquisition and operation will mirror existing garages at Town Center . Phase IV is contingent on completion of Beacon land exchange Notes: Summary of Phase IV Costs (MILLIONS) . Public Investment . Block 2 garage - $22.0 - $28.0 . Block 2 Infrastructure - $0.650 - $0.850 TOTAL PUBLIC - $22.65 - $28.85 . Private Investment . Block 2 Tower - $72.0 - $82.0 TOTAL PRIVATE - $72.0 - $82.0 Pro 'ed Element Summary of Public and Private Investments Phases 1, II, III and IV (MILLIONS) March 2008 ... ...... ...... ... PIUI.\e /J ' Total PUBLIC INVESTMENT'" 522.7- 528.9 5IfJ6.3- S 1/2.5 PRIVATE INVESTMENT 572 - 582 5484 - 5494 TOTAL INVESTMENT lIb1it": Private Ratio 594. 7 - 51 f(). 9 I to 3.fJ 5590.3 - S6fJ6.5 * Source: Commissioner of the Revenue **Inc/udes meal, admission, and hotel taxes; excludes utility taxes, which are difficult to quantify. Anticipated number of jobs in the Block 2 Tower = 1,500 -1,600 Councilman Dyer reiterated his concern re growing debt service. Councilman DeSteph referenced Section 3B of the Summary of Terms (Lease 1 floor in new 21-story Main Office Tower (25,000 square feet, $762,500 - $775,000) and inquired re the time line obligation of this lease. Mr. Wawner advised this is a 10-year lease. Construction time of 2 years is expected on this building with construction commencing at the end of 2008.. City Council is authorizing preparation of project documents. The Development Agreement will be SCHEDULED for a City Council Session later this year and contain the final costs. The cost to build is approximately $5-MILLION per floor. 50% of the building needs to be pre-leased before construction can commence. March 11, 2008 - 22- Item V-1.2. ORDINANCES/RESOLUTIONS ITEM # 57411 (Continued) Patricia Phillips, Director of Finance, referenced projections which are updated as frequently as possible, based on the latest information of assessed values and project out what cost might be two (2) years from now. Under the assumptions, by structuring the debt and assuming a fairly high interest rate 5.75% General Obligation Bonds were sold today at 4.16% true interest cost. The staff also projected out a general reassessment growth of 3% per year for the Tax Increment Financing District. The debt service is projected to be covered by the tax increment of the real estate taxes, which are generated by the project. The last several years have calculated the annual impact in the core area only of business license, personal property, meal tax, hotel tax and general sales taxes. Bonds are issued from the Virginia Beach Development Authority based on a support agreement from the City of Virginia Beach. The generation of taxes by the project (real estate and Tax Increment Financing) are enough to pay the debt service. If the project were not accomplished, these real estate taxes would not exist. When the bonds are paid off, around $6- to $7-MILLION per year will be generated back to the General Fund When the last bonds are paid, it will be approximately $10- to $l1-MILLION per year. As the debt is starting to taper off, the revenues become very strong. The City Attorney advised the Tax Increment Fund are real estate taxfunds. Upon motion by Councilman Wood, seconded by Vice Mayor Jones, City Council ADOPTED: Resolution to A UTHORIZE a non-binding term sheet re PHASE IV of the TOWN CENTER project: requesting approval of the City of Virginia Beach Development Authority; and, AUTHORIZING the development of supplemental project documents. Voting: 8-3 Council Members Voting Aye: Harry E. Diezel Barbara M Henley, Vice Mayor Louis R. Jones, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: William R. "Bill" DeSteph, Robert M Dyer and Reba S. McClanan Council Members Absent: None March 11, 2008 II I 1 RESOLUTION APPROVING A NON-BINDING 2 TERM SHEET RELATING TO PHASE IV OF 3 THE TOWN CENTER PROJECT, 4 REQUESTING APPROVAL BY THE CITY OF 5 VIRGINIA BEACH DEVLOPMENT 6 AUTHORITY AND AUTHORIZING THE 7 DEVELOPMENT OF SUPPLEMENTAL 8 PROJECT DOCUMENTS 9 10 WHEREAS, on behalf of the City of Virginia Beach (the "City") and the City 11 of Virginia Beach Development Authority (the "Authority"), the City Manager and City 12 staff have engaged in extensive negotiations with representatives of Armada/Hoffler 13 Development Company, L.L.C., and its affiliates, regarding the continued development 14 of a, Central Business District Project known as "The Town Center of Virginia Beach (the 15 "Project"); 16 17 WHEREAS, the Project is a development arrangement between the 18 Authority and Town Center Associates, L.L.C. (the "Developer"), for a mixed-use 19 commercial development utilizing the structure of an economic development park in the 20 B-3A Pembroke Central Business Core District, an area of the City that is zoned to 21 optimize development potential for a mixed-use, pedestrian-oriented, urban activity 22 center with mid -to high-rise structures that contain numerous types of uses, including 23 business, retail, residential, cultural, educational and other public and private uses; 24 25 WHEREAS, construction of Phases I and II of the Project are complete, 26 and Phase III is substantially complete; 27 28 WHEREAS, the Developer has worked with the City Manager and City 29 staff and has proposed a comprehensive development plan for Phase IV of the Project; 30 31 WHEREAS, the Developer has worked with the City Manager and City 32 staff to develop a non-binding Term Sheet dated March 7, 2008 (the "Phase IV Term 33 Sheet"), which outlines (a) a comprehensive development plan for Phase IV of the 34 Project, (b) minor modifications to Phase II of the Project and (c) the proposed 35 responsibilities of the City, the Authority and the Developer with respect to Phase IV of 36 the Project; 37 38 WHEREAS, the finalization of the transactions contemplated by the Phase 39 IV Term Sheet shall all be contingent on the successful completion of the "Beacon 40 Exchange" as set forth in the Phase IV Term Sheet; 41 42 WHEREAS, a summary of the Phase IV Term Sheet is attached to this 43 Resolution as Exhibit A and a complete copy of the Term Sheet was provided to City 44 Council prior to its March 11, 2008 meeting; 45 46 WHEREAS, the obligations of the Authority outlined in the Phase IV Term 47 Sheet will be supported by a support agreement between the City and the Authority (the 48 "Phase IV Support Agreement"), with the traditional public infrastructure costs of the 49 Project to be funded in part through the City's CIP and in part through the Authority's 50 Economic Development Investment Program funds; 51 52 WHEREAS, the Phase IV Support Agreement between the City and the 53 Authority would be structured to be paid, subject to annual appropriation, by the 54 available revenue from the TIF Fund and a special tax district; 55 56 WHEREAS, the City Council finds that Phase IV of the Project will 57 stimulate the City's economy, increase public revenues, enhance public amenities and 58 further the City's development objectives for the Central Business District; and 59 60 WHEREAS, the City Council desires that the Authority approve and 61 execute the Phase IV Term Sheet and pursue the development of supplemental project 62 documents to be negotiated in substantial conformity with the terms outlined in the 63 Phase IV Term Sheet, including but not limited to a development agreement and the 64 Phase IV Support Agreement. 65 66 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY 67 OF VIRGINIA BEACH, VIRGINIA: 68 69 1. The City Council approves the non-binding Phase IV Term Sheet 70 dated March 7, 2008, (the "Phase IV Term Sheet") between the City of Virginia Beach 71 Development Authority (the "Authority" and Town Center Associates, LLC (the 72 "Developer"), a summary of which is attached to this Resolution as Exhibit A, which 73 outlines a comprehensive development plan for Phase IV of the Project and minor 74 modifications to Phase II of the Project. 75 76 2. The City Council requests and recommends that the Authority 77 adopt a Resolution consistent with this Resolution approving the Term Sheet and 78 authorizing its execution. 79 80 3. On behalf of the City of Virginia Beach, the City Manager and the 81 City Attorney are hereby authorized and directed to proceed with the development of 82 supplemental Project documents necessary and appropriate to implement Phase IV of 83 the Project substantially as outlined in the Phase IV Term Sheet. 84 85 4. The City Manager is directed to return the final supplemental 86 Project documents for approval by City Council and the Authority for authorization to 87 execute the Phase IV Support Agreement so that the Authority can then proceed to the 88 next phase of the Project. 89 90 Adopted by the Council of the City of Virginia Beach, Virginia, on the J_1...th 91 day of March ,2008. 2 CA-10555 v: \applications\citylawprod\cycom32\Wpdocs\D005\P003\00050893.DOC 3/6/08 R-1 APPROVED AS TO CONTENT: ~~~ Economic Development A:.$~L SUFFICIENCY: City Attorney 3 EXHIBIT A SUMMARY OF TERMS- PHASE IV TOWN CENTER Phase IV of the Town Center Project will consist of a single-block mixed use development on Block 2 of Town Center (presently the Beacon Building) 1. Scope of Proposed Improvements Single Block, Multi-facility, Mixed-use Development · Main Building: 21 Stories- Parking Garage, 650 Spaces (8 levels) Office Tower (12 levels above garage) Retail, First Floor · Side Building: 4 Stories, attached to main tower similar to Pender & Coward Building in Block 4 2. Developer Obli2ations A. Purchase land required for development and construction of Phase IV Tower from Development Authority (at Authority's cost of acquisition). B. Construct all improvements: . Main Office Tower . First Floor Retail . Parking Garage . Side Building . Streetscapes C. Estimated Private Investment: $72 million 3. Authority Obli2ations A. Pay for Infrastructure Improvements: . Estimated Cost: $650,000-$850,000 . To include streetscapes, utilities, traffic signals B. Lease 1 floor in new 21-story Main Office Tower . Leased Area: ~ 25,000 square feet . VBDA's rent~ $30.50 to $31.00/SF or $762,500-$775,000 per year . Lowest rent in tower, other than anchor tenant C. Purchase Parking Garage: . Estimated Cost: $22-28 million . Exact price to be agreed on before execution of development agreement. 4. Other Terms A. Modification to Option Land Agreement from Phase II B. Phase IV is contingent on completion of Beacon Exchange c: ~ "" E = E "... :- := B ""'- "" ~, " """, .s !i:> ',;;; Q "'" c;:; ~ ~ Q; e .,. ;;;; <I> ~ "'" ..... ~ # G> <.:> ~ {I;: .::::. "'" "" "CI "" ~ c: .... 'r;; 'ft; B v; 'i<j C;. "" ~ is 1;; 0;; <=> ... <ii c:: :;; ... a: a: :::c tr: ClC <::) ...... 0- ;!""" ..~ "N' ..- ,~, i ... ",:, ',': ,,~'h':J, }~:') ~, ~; '-1m, ~ '" ... f'~; i r/t 6, ... ~ ~P, ~ ~~ ~ I '7k i '''',M. ;' .,.,,# .:'!>.',;t;<.; ~ ~#~~ '"' ~ 5: CD J ,i.; ;~; ';c ;: ~Y';:',(' .... , . ': /;.,,~f:/ :J +, $ f" '...< ,/." -::' '.' .. ~,' ~ '<;::>_, 'V< .,.. .) :1' i />W} t , ~ " ~ i ~ ;:: ! ,', ,~ ,',ilS jiL ''\:_....J<~ ;, -' " .., '';''11, .... ~ "0 ''1j ." " - ...-_. .... ,; iiil ~:-r; -!:. <X-..,?-. 0/ ..:" ~ f::; ?!l;, "~.,.,-_.... j'~, ; " , < " ~ ; \ ... ,:~t I , .'.; ;. ",""~I. . " ~ ", , .'d "'....,...., ." '-~:'f ~ ~.." , ' ...~ ".... ;j', ' {;J.., ...~ ,.... .... ! .. /;; .~ ,;;- ~~' ".~' -:i ;' > ~ , ' ,,:,' ~~~ ,- ,~ ,~,. . ,,' .' <<'~ t~.l <', ". M }O' ~ , y; ~. 4" ~ ';';/";,'''''''1 ~ .' n~ , ~;;~ '/" t:"... '~ ' ,'~, ~ ~:'" ! *" "~,.';,~ .- ',-.." ~. <I)'~",\ 'v"~ .. ,: ~, '1 .. ~.1 .'" :t ~ ,- !2 ilS 5: ... ';>. ~ "'" ..,. ~ ;...~ , ,.... I II - 23 - J. PLANNING ITEM # 57412 1. RUNNYMEDE CORPORATION STREET CLOSURE 2. JASON and AMY PRZYMUZALA VARIANCE 3.a. KATHERINE M. GRIER CONDITIONAL USE PERMIT 3.b. BOB SIMEONE CONDITIONAL USE PERMIT 4. PRECISION MEASUREMENTS, INC. CONDITIONAL CHANGE OF ZONING March II, 2008 I II - 24- Item J.l ITEM # 57413 PLANNING Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED in ONE MOTION Items I (DEFERRED INDEFINITELY), 2, 3a/b and 4 of the PLANNING BY CONSENT AGENDA: Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 - 25 - Item J.l ITEM # 57414 PLANNING Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED INDEFINITELY Ordinance upon application of RUNNYMEDE CORPORATION for the closing, vacating and discontinuinJ! of a portion of Cleveland Street between Witchduck and Newtown Roads Ordinance upon application of RUNNYMEDE CORPORATION In the matter of closing, vacating and discontinuing a portion of that certain unimproved street known as "CLEVELAND STREET (60' RIW) (MB. 116, PG. 42)" as shown on that certain plat entitled "EXHIBIT SHOWING A PORTION OF CLEVELAND STREET TO BE CLOSED (MB. 234, PG. 43) VIRGINIA BEACH, VIRGINIA" DISTRICT 2 - KEMPSVILLE. Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 I II - 26- Item J.2. ITEM # 57415 PLANNING Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, APPROVED a Variance to ~5b of the Site Plan Ordinance that requires all newly created lots meet the requirement of the Floodplain Regulations upon application of JASON and AMY PRZYMUZALA at 601 Cypress Avenue re a second story addition to their existing residence: Application of Jason and Amy Przymuzalafor a Variance to Section 5B of the Site Plan Ordinance, Floodplain Regulations on property located at 601 Cypress Avenue (GPIN 2427023772). DISTRICT 6 - BEACH The following condition shall be required: I. The proposed addition shall substantially adhere to the submitted site plan and variance approved by the Board of Zoning Appeals on December 5, 2007. Said site 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: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March II, 2008 II , - 27- Item J.3.a. ITEM # 57416 PLANNING Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, ADOPTED an Ordinance upon application of KATHERINE M. GRIERfor a Conditional Use Permitfor a church: ORDINANCE UPON APPLICATION OF KATHERINE M GRIER FOR A CONDITIONAL USE PERMIT FOR A CHURCH R030834257 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Katherine M Grier for a Conditional Use Permit for a church on property located at 1628 Independence Boulevard, Suite 1504 (GPIN 1479237563). DISTRICT 4 -BAYSIDE. The following conditions shall be required: 1. The number of individuals attending anyone service shall not exceed 100 or the number established by the City's Fire Marshall, with the lower number of the two being the maximum. 2. The applicant shall obtain all necessary permits and inspections from the Planning Department / Permits and Inspections Division and the Fire Department. The applicant shall obtain a Certificate of Occupancy for the change of use from the Building Official. 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 Eleventh of March Two Thousand Eight Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11,2008 - 28- Item J.3.b. ITEM # 57417 PLANNING Bob Simeone, 2700 Shepherds Quarter, Phone: 340-1315, the applicant, has been working with the Planning Commission for the past four (4) months to try to come up with the best way to make the trailer attractive. The side of the warehouse has been fenced and the trailer has been painted the same color as the warehouse. Upon motion by Councilman Uhrin, seconded by Councilman Wood, City Council, DENIED an Ordinance upon application of BOB SIMEONE for a Conditional Use Permit for storage trailers: ORDINANCE UPON APPLICATION OF BOB SIMEONE FOR A CONDITIONAL USE PERMIT FOR STORAGE TRAILERS Ordinance upon application of Bob Simeone for a Conditional Use Permit for storage trailers on property located at 2633 Production Road (GPIN 1496880032). DISTRICT 6 - BEACH Councilman Uhrin will work with the applicant for a better solution. Voting: 7-4 Council Members Voting Aye: Robert M Dyer, Barbara M Henley, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: William R. "Bill" DeSteph, Harry E. Diezel, Vice Mayor Louis R. Jones and Ron A. Villanueva Council Members Absent: None March 11, 2008 - 29- Item J. 4. ITEM # 57418 PLANNING Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, ADOPTED an Ordinance upon application of PRECISION MEASUREMENTS, INC, for a Conditional Change of Zoning District Classification: ORDINANCE UPON APPLICATION OF PRECISION MEASUREMENTS, INC. FOR A CHANGE OF ZONING DISTRICT CLASSIFICATION FROM AG-2 TO CONDITIONAL 0-1 Z03081208 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINA Ordinance upon application of Precision Measurements, Inc. for a Change of Zoning District Classification from AG-2 Agricultural District to Conditional 0-1 Office District on property located at 3021 Holland Road (GP IN 1495232369). DISTRICT 7 - PRINCESS ANNE. Note: The exterior building material of the proposed office building will consist of brick and glass with exterior insulation finish system (EIFS) and metal accents or trim. The following condition shall be required: 1. An agreement encompassing proffers shall be recorded with the Clerk of the Circuit Court and is hereby made a part of the record. 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 Eleventh of March Two Thousand Eight Voting: 11-0 (By Consent) Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 CITY OF VIRGINIA BEACH INTER-OFFICE CORRESPONDENCE In Reply Refer To Our File No. DF-6917 DATE: February 27,2008 FROM: Leslie L. Lilley -.\:.0. B. Kay Wilso~~ DEPT: City Attorney DEPT: City Attorney TO: RE: Conditional Zoning Application; Precision Measurements, Inc. The above-referenced conditional zoning application is scheduled to be heard by the City Council on March 11, 2008. I have reviewed the subject proffer agreement, dated October 29, 2007 and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. BKW/bm Enclosure / cc: Kathl~~assen .I PREPARED BY: I SYn:S. BOURDON. . Am:RN & IIVY. P.c. I II PROFFERED COVENANTS, RESTRICTIONS AND CONDITIONS LOUTRICIA DIANNE GUY, NOAH S. LEITZ and KENNETH E. LEITZ TO (PROFFERED COVENANTS, RESTRICTIONS AND CONDmONS) CITY OF VIRGINIA BEACH THIS AGREEMENT, made this 29th day of October, 2007, by and between LOUTRICIA DIANNE GUY, NOAH S. LEITZ and KENNETH E. LEITZ, Grantors; and THE CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, Grantee. WITNESSETH: WHEREAS, the Grantors are the owners of that certain parcel of property located in the Princess Anne District of the City of Virginia Beach, Virginia, containing approximately 0.88 acres and described in Exhibit "A" attached hereto and incorporated herein by this reference said property hereinafter referred to as the "Property"; and WHEREAS, the Grantors have initiated a conditional amendment to the Zoning Map of the City of Virginia Beach, by petition addressed to the Grantee so as to change the Zoning Classification of the Property from AG-2 Agricultural District to Conditional 0-1 Office District; and WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes through zoning and other land development legislation; and WHEREAS, the Grantors acknowledge that the competing and sometimes incompatible uses conflict and that in order to permit differing uses on and in the area of the Property and at the same time to recognize the effects of change, and the need for various types of uses, certain reasonable conditions governing the use of the Property for the protection of the community that are not generally applicable to land similarly zoned are needed to cope with the situation to which the Grantors' rezoning application gives rise; and GPIN: 1495-23-2369 1 PREPARED BY, I_ SYn:S. QOURDON. . Am:RN & llVY. P.C WHEREAS, the Grantors have voluntarily proffered, in writing, in advance of and prior to the public hearing before the Grantee, as a part of the proposed amendment to the Zoning Map with respect to the Property, the following reasonable conditions related to the physical redevelopment, operation, and use of the Property to be adopted, as a part of said amendment to the Zoning Map relative and applicable to the Property, which has a reasonable relation to the rezoning and the need for which is generated by the rezoning. NOW, THEREFORE, the Grantors, their successors, personal representatives, assigns, grantees, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body and without any element of compulsion or quid pro quo for zoning, rezoning, site plan, building permit, or subdivision approval, hereby make the follo$g declaration of conditions and restrictions which shall restrict and govern the physical development, operation, and use of the Property and hereby covenant and agree that this declaration shall constitute covenants running with the Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantors, their successors, personal representatives, assigns, grantees, and other successors in interest or title: 1. When the Property is developed, it shall be developed as an office building substantially as shown on the exhibit entitled "PRECISION MEASUREMENTS OFFICE COMPLEX, VIRGINIA BEACH, VA.", dated 07/02/07, prepared by Scott Stamm, P.E., which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning (hereinafter referred to as the "Concept Plan"). 2. When the building depicted on the Concept Plan is developed, its exterior appearance shall be substantially similar in architectural features, details and building materials the exhibit entitled "Precision Measurements, Inc 3D renderings", dated 10/15/07, prepared by Ionic Dezign Studios, which have been exhibited to the Virginia Beach City Council and are on file with the Virginia Beach Department of Planning (hereinafter referred to as the "Elevations"). 3. When the Property is developed, the exterior materials utilized on the building depicted on the Elevations shall be brick and glass with EIFS and metal accents or trim. 4. The Grantor shall submit a Landscape Plan for the Property to the Director of Planning for review and approval prior to final Site Plan approval. 2 PREPARED BY: BB sms. ROURDON. m MOO! & lIVY. P.C 5. Further conditions may be required by the Grantee during detailed Site Plan and/ or Subdivision review and administration of applicable City Codes by all cognizant City agencies and departments to meet all applicable City Code requirements. All references hereinabove to the AG-2 and 0-1 Zoning District and to the requirements and regulations applicable thereto refer to the Comprehensive Zoning Ordinance and Subdivision Ordinance of the City of Virginia Beach, Virginia, in force as of the date of approval of this Agreement by City Council, which are by this reference incorporated herein. The above conditions, having been proffered by the Grantors and allowed and accepted by the Grantee as part of the amendment to the Zoning Ordinance, shall continue in full force and effect until a subsequent amendment changes the zoning of the Property and specifically repeals such conditions. Such conditions shall continue despite a subsequent amendment to the Zoning Ordinance even if the subsequent amendment is part of a comprehensive implementation of a new or substantially revised Zoning Ordinance until specifically repealed. The conditions, however, may be repealed, amended, or varied by written instrument recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and executed by the record owner of the Property at the time of recordation of such instrument, provided that said instrument is consented to by the Grantee in writing as evidenced by a certified copy of an ordinance or a resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee which was advertised pursuant to the provisions of Section 15.2-2204 of the Code of Virginia, 1950, as amended. Said ordinance or resolution shall be recorded along with said instrument as conclusive evidence of such consent, and if not so recorded, said instrument shall be void. The Grantors covenant and agree that: (1) The Zoning Administrator of the City of Virginia Beach, Virginia, shall be vested with all necessary authority, on behalf of the governing body of the City of Virginia Beach, Virginia, to administer and enforce the foregoing conditions and restrictions, including the authority (a) to order, in writing, that any noncompliance with such conditions be remedied, and (b) to bring legal action or suit to insure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages, or other appropriate action, suit, or proceeding; 3 PREPARED BY: 3m smS. ROURDON. .. AIImN & UVY. P.C (2) The failure to meet all conditions and restrictions shall constitute cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (3) If aggrieved by any decision of the Zoning Administrator, made pursuant to these provisions, the Grantors shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) The Zoning Map may show by an appropriate symbol on the map the existence of conditions attaching to the zoning of the Property, and the ordinances and the conditions may be made readily available and accessible for public inspection in the office of the Zoning Administrator and in the Planning Department, and they shall be recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and indexed in the names of the Grantors and the Grantee. 4 WTINESS the following signature and seal: Grantor: c1. ~~ )y Loutricia Dianne Guy (SEAL) STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this J J 57 day of October, 2007, by Loutricia Dianne Guy, Grantor. She is personally known to me or has produced identification. .' ..';: '~.\';.:" :I:~~!4;~~;:'. ..; , .. ~ ':.:: My Commission Expires: Notary Registration No.: /' . ./;, : , . (! ~ -it ;)95"1&1 ~ Notary Public 11/3%01' f)&f'S1 _I 5 WITNESS the following signature and seal: (SEAL) STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this J/,J/- day of October, 2007, by Noah S. Leitz, Grantor. He is personally known to me or has produced identification. . i~P~~Yt~:~? . :>::.': . My"Cqmmission Expires: .:' ,'" - ~ :,; ~'.N6faty Registration No.: 4'_21 :J- {)J~ Notary Public /ll~'I-~~1 6 WITNESS the following signature and seal: Grantor: rf~ - / Kenne~itz (SEAL) STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this 3 J 8f day of October, 2007, by Kenneth E. Leitz, Grantor. He is personally known to me or has produced identification. ," I. : .' ~ . '~'- j,;"J '. ~./~. ~ . <,.",./'. , ~. ~ ,,'" My Commission Expires: Notary Registration No.: 4J/lj7tl~ Notary Public 11/30/0/ a.. 9S/(,,{ 7 PREPARED BY: I~S. ROURDON. AHBlN & LM. P.C EXHIBIT "A" All of that certain tract, piece or parcel of land, situate, lying and being in the City of Virginia Beach, Virginia (formerly Princess Anne County), more particularly shown and designated upon a certain plat entitled, "Property of Mrs. Edward Hunter-Located near Landstown in Princess Anne County, Virginia, Scale: 1"=100', August 20, 1958, W. B. Gallup-County Surveyor", which said plat is attached to Deed from Jackie Hunter to Alvester Vaughan, dated March 11, 1959, and recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Vrrginia, in Deed Book 673, at Page 558, the said lot, piece or parcel of land herewith conveyed being more particularly shown and described on said plat as "Alvester Vaughan 1.0 Ac. from Mrs. Edward Hunter"; the said parcel of land being more particularly bounded and described as follows: Beginning at a point on the Western side of Holland Swamp Road where the same is intersected by a line dividing the property herewith conveyed from the property of Flossie Cooper, and from said point of beginning running thence South 47 degrees 23' West 10 feet to a pin; thence continuing along the same course 284.5 feet to a point; thence turning and running in a Southeasterly direction, South 44 degrees 15' East 168 feet to a point; thence turning and running in a Northeasterly direction, North 47 degrees 23' East, 284.5 feet to a pin; thence continuing along the said course 10 feet to the Western line of Holland Swamp Road; thence turning and running in a Northerly direction along the Western line of Holland Swamp Road, North 44 degrees 15' West 108 feet to a point, the point of beginning. . SAVE AND EXCEPT that land obtained by the Commonwealth of Virginia by Deed dated May 2, 2007, recorded in the Office of the Clerk of the Circuit Court of the City of Virginia Beach, Virginia, as Instrument #20070719000976190. GPIN: 1495-23-2369 ConditionalRezone/PrecisionMeasurements/Proffer 8 Item V-K.I. APPOINTMENTS - 30 - ITEM #57419 BY CONSENSUS, City Council RESCHEDULED thefollowing APPOINTMENTS: BIKEWAYS AND TRAILS ADVISORY COMMITTEE HUMAN RIGHTS COMMISSION March 11,2008 - 31 - Item V-.K.2. APPOINTMENTS ITEM #57420 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Martin "Marty" Hierholzer Three year term 1/1/08 - 12/31/10 COMMUNITY SERVICES BOARD Voting: 11-0 Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 - 32 - Item V-K3. APPOINTMENTS ITEM #57421 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Aubrey Wilson Unexpired term plus two years to 5/31/10 MINORITY BUSINESS COUNCIL Voting: 11-0 Council Members Voting Aye: William R. "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 11, 2008 Item V-L.i. NEW BUSINESS - 33 - ITEM #57422 II , BY CONCENSUS, CITY COUNCIL, RESCHEDULED CITY COUNCIL SESSIONS CHANGES FOR 2008, TO THE CITY COUNCIL SESSION OF MARCH 25, 2008: a. b. e. f g. h. i. j. k. l. c. d. July 1 July 8 August 5 August 19 August 22 - 23 November 4 November 11 November 18 November 25 December 2 December 9 December 16 December 23 December 30 m. n. Briefing, Informal, Formal and Planning. Briefing, Informal, Formal and Planning Briefing Only - 3-5 PM - "National Nite Out" Briefing, Informal, Formal and Planning City Council 2-day Retreat Cancel all sessions - Election Day Cancel all sessions - City Holiday Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Briefing, Informal, Formal and Planning Cancel all sessions Cancel all sessions Cancel all sessions March 11, 2008 Item V-Me NEW BUSINESS ADD-ON - 34 - ITEM # 57423 BY CONSENSUS, City Clerk shall record the Abstract: Abstract of Vote - Presidential Primary February 12, 2008 I II , March 11, 2008 ABSTRACT OF VOTES cast in the City of Virginia Beach , Virginia, at the February 12, 2008 Republican Presidential Primary Election for: PRESIDENT NAMES OF CANDIDA TES AS SHOWN ON BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Ron Paul ............................................................................... 1,960 John McCain ........... ,... ......... ................................................ 17,416 Fred D. Thompson .............................. .............. ................... 160 12,574 . Mike Huckabee................... ............................ ...................... Rudy Giuliani ..... ....................... ........................................... 136 Mitt Romney ..................... .................................................... 843 Total Number of Overvotes for Office ................................ o We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on February 12, 2008, do hereby certify that the above is a true and correct Abstract of Votes cast at said Republican Presidential Primary. Given under our hands this 15th day of February, 2008. /~ I ~I E~~~~al Seal / /' ~ , Chairman A copy teste: , Secretary /~ -Y I~ ~ Secretary, Electoral Board ABSTRACT OF VOTES cast in the City of Virginia Beach , Virginia, at the February 12, 2008 Democratic Presidential Primary Election for: PRESIDENT NAMES OF CANDIDA TES AS SHOWN ON BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Barack Obama .................,................................................... 34,152 Dennis J. Kucinich ., ............................................................ 65 Bill Richardson ............ ........ ................................ ................ 17,718 54 Hillary Clinton .......................... .... ................ ........................ Joe Biden ............................................. .................... ............ 49 John Edwards ................................ ...................... ................ 272 Total Number of Overvotes for Office ................................ o We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on February 12, 2008, do hereby certify that the above is a true and correct Abstract of Votes cast at said Democratic Presidential Primary. Given under our hands this 15th day of February, 2008. ,.... A copy teste: " ;- (I Electoral Board \ Seal \ / \ / "- /. ~-_/ t Chairman , ice hairman ) --5t . ~.......e"~J~' Secretary d"/~ -J/ . (d ~ .. -) . Secretary, Electoral Board - 35 - Item V-No ADJOURNMENT ITEM # 57425 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:00 P.M. Q~___Q~__~1.._~~ Bevert; 0. Hooks, CMC Chief Deputy City Clerk 1yI ~_!_1~~ L_t.,IJ ~~=r;;b:dorf Mayor City of Virginia Beach Virginia March 11, 2008