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HomeMy WebLinkAboutMAY 12, 2009CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAM D. SESSOMSJR., At -Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 GLENN R DAVIS, Rose Hall - District 3 WILLIAMR. DeSTEPH, At -Large HARRYE DIEZEL, Kempsville - District 2 ROBERT M. DYER, Centerville - District I BARBARA M. HENLEY, Princess Anne - District 7 JOHN E. UHRIN, Beach -District 6 RONA. VILLANUEVA, At -Large ROSEMARY WILSON, At -Large JAMES L. WOOD, Lynnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER -JAMES K SPORE CITYATTORNEY-MARKD. STILES CITYASSESSOR -JERALD BANAGAN CITY AUDITOR - LYNDON S. REMIAS CITY CLERK - RUTH HODGES FRASER, MMC I. CITY COUNCIL BRIEFING CITY COUNCIL AGENDA A. NOISE ORDINANCE Mark Stiles, City Attorney CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW 12 MAY 2009 - Conference Room - V. INFORMAL SESSION - Conference Room - A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION C17YHALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE: (757) 385-4303 FAX (757) 385-5669 E- MAIL: ctycncl@vbgov.com 3:00 PM 4:00 PM FORMAL SESSION AGENDA - Council Chamber - 6:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. INVOCATION: Associate Pastor Larry Russell Freewill Baptist 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 G. AGENDA FOR FORMAL SESSION H. PRESENTATION HAMPTON ROADS ROTARY CLUB Robert Herd, Chair — 4 Way Test Committee I. PUBLIC HEARINGS 1. FY 2009-2010 RESOURCE MANAGEMENT PLAN FY 2009-2010 Operating and Capital Budgets April 28, 2009 2. LEASE OF CITY OWNED PROPERTY a. 457 Rudder Road b. 461 Rudder Road C. 1409 Old Virginia Beach Road d. Foxwood Drive/S. Independence Blvd. — Timberlake Community Association, Inc. e. 205 Laskin Road — Jody's Popcorn J. CONSENT AGENDA K. ORDINANCES/RESOLUTIONS Ordinances re City Code: a. REPEAL § 33-17 and ADD a new Article H with § 23-63 through 23-73 to Chapter 23 re: Noise b. AMEND § 2-468 re: right -to -audit clauses in Contracts. 2. Ordinance to AUTHORIZE the City Manager to execute a Forbearance Agreement with Southeastern Public Service Authority (SPSA) re: payments owed the City in compliance with the 1984 Agreement for disposal of ash residue. 3. Resolution to PROVIDE for the issuance and sale of General Obligation Public Improvement Bonds, Series 2009, in the maximum amount of $80,000,000 re: financing various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects 4. Ordinances/Resolutions re: FY 2009-10 RESOURCE MANAGEMENT PLAN a. FY 2009-10 Operating Budget: 1. APPROPRIATE for the Fiscal Year, beginning July 1, 2009 and ending June 30, 2010, the sum of $1,763,292,679 for Operations and $617,334,358 in Interfund Transfers regulating the payment of money out of the City Treasury, as amended 2. ESTABLISH the tax levy on real estate for FY 2010 3. ESTABLISH the tax levy on personal property and machinery and tools for the Calendar Year 2010 4. AUTHORIZE the City Manager to submit an Annual Funding Plan to the U.S. Department of Housing and Urban Development (HUD) 5. TRANSFER $8,800,000 from the School Reserve Special Revenue Fund to the FY 2008-09 General Fund Operating Budget 6. DECLARE $9,000,000 within the Sandbridge Tax Increment Financing District (TIF) as surplus funds in the FY 2008-09 Operating Budget 7. SUSPEND the Transition Area Special Revenue Fund 8. AUTHORIZE future budgets through an Annual rather than Biennial process 9. ELIMINATE § 2-186.1 of the City Code re: preparation of the budget b. FY 2009-10 Capital Budget: 1. AUTHORIZE FY-2010/FY-2014 Capital Improvement Program (CIP); and, APPROPRIATE $236,429,109 for the FY 2010 Capital Budget, subject to funds being provided from various sources set forth therein 2. AUTHORIZE the issuance of General Obligation Public Improvement Bonds in the maximum amount of $62,900,000 for various public facilities and general improvements 3. AUTHORIZE issuance of Water and Sewer System Revenue Bonds in the maximum amount of $17,000,000 5. Ordinance to TRANSFER $150,000 from the FY 2008-09 General Fund Reserve for Contingencies to the Norfolk Southern right-of-way survey re: environmental impact studies and additional survey costs. 6. Ordinance to AUTHORIZE the Virginia Beach Development Authority to award $400,000 to the Art Institute of Virginia Beach LLC and Armada/Hoffler Development Company re: development of The Art Institute of Virginia Beach at Town Center. 7. Ordinance to AUTHORIZE maximum amounts for the sale and rental of Workforce Housing Units. 8. Ordinance to AUTHORIZE a pilot program to establish a pedal cab service in and around the Resort Area from May 23, 2009, through October 1, 2009. 9. Ordinances to AUTHORIZE the City Manager to execute LEASES of City property: a. PIN MINISTRY re: affordable housing for two (2) PIN program residences at 457 and 461 Rudder Road. b. VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION (VBCDC) re: affordable rental housing at 1409 Old Virginia Beach Road. C. TIMBERLAKE COMMUNITY ASSOCIATION, INC. re: storage of major recreational equipment at Foxwood Drive and South Independence Boulevard. d. JODY'S INC. re: outdoor seating area at 205 Laskin Road. L. PLANNING Application of ROBERT BURKE for the Expansion of a Nonconforming Structure at 5504 Ocean Front Avenue re: additions of a second and third floor and to the existing detached garage (deferred by City Council on April 28, 2009). DISTRICT 5 — LYNNHAVEN RECOMMENDATION APPROVAL 2. Application of BEVERLY ARMSTRONG for the Expansion of a Nonconforming Structure at 7300 73`d Street to ADD a second floor addition (deferred by City Council on March 10, 2009). DISTRICT 5 — LYNNHAVEN RECOMMENDATION APPROVAL 3. Application of REFORMED BAPTIST CHURCH OF VIRGINIA BEACH for a Conditional Use Permit re a church at portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear property line (deferred by City Council on April 28, 2009). DISTRICT 7 - PRINCESS ANNE. RECOMMENDATION APPROVAL 4. Application of Christian House of Prayer Virginia, Inc., for a Conditional Use Permit re: religious services in an existing building at 333 Edwin Drive. DISTRICT 3 - ROSE HALL RECOMMENDATION: APPROVAL 4. Application of Ground Zero Church fora Conditional Use Permit to conduct religious services at 485 South Lynnhaven Road. DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 5. Application of Faith Temple Church for a Conditional Use Permit re: church within an existing retail center at 152-B South Plaza Trail. DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 6. Application of Harvey Orr for a Conditional Use Permit re: home occupation (designing and constructing custom made furniture) at 1545 Harbor View Cove. DISTRICT 1— CENTERVILLE RECOMMENDATION APPROVAL 7. Application of Richmond 20MHZ, LLC., dba NTELOS for a Conditional Use permit re: communications tower at 3429 Clubhouse Road. Dh5TRICT 3 — ROSE HALL RECOMMENDATION APPROVAL Application of Euclid Properties, LLC fora Change of Zoning District from R-51)Residential Duplex to Conditional B-2 Community Business District re: constructing an addition to an existing office building at 4756 Euclid Road. DISTRICT 2 - KEMPSVILLE RECOMMENDATION APPROVAL 9. Ordinance to AMEND §201 of the City Zoning Ordinance (CZO) re: setbacks for front porches and handicapped ramps RECOMMENDATION APPROVAL 10. Ordinance to AMEND § 111 and §225.1 of the City Zoning Ordinance (CZO) re: definition and requirements pertaining to the use of Bed and Breakfast Inns RECOMMENDATION APPROVAL 11. Application of Church Point Manor, LLC., for a Modification of Condition Nos. 1 and 2 re: number of individuals in dining area and number of lodging rooms (approved by City Council on January 12, 1993 and March 12, 1996) at 4001 Church Point Road DISTRICT 4 - BAYSIDE RECOMMENDATION APPROVAL L. APPOINTMENTS CHESAPEAKE BAY ALCOHOL SAFETY PROGRAM HUMAN RIGHTS COMMISSION MINORITY BUSINESS COUNCIL M. UNFINISHED BUSINESS N. NEW BUSINESS O. ADJOURNMENT PUBLIC COMMENTS Non -Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 05/12/2009.atb CITY COUNCIL BRIEFING - Conference Room - 3:00 PM A. NOISE ORDINANCE Mark Stiles, City Attorney CITY COUNCIL LIAISON REPORTS CITY COUNCIL COMMENTS . CITY COUNCIL AGENDA REVIEW INFORMAL SESSION - Conference Room - 4:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION FORMAL SESSION AGENDA - Council Chamber - 6:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. INVOCATION: Associate Pastor Larry Russell Freewill Baptist 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 April 28, 2009 G. AGENDA FOR FORMAL SESSION 1 U Z - g Cp ouR Nit\O" Atronlittlott CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded here and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia Law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia Law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. H. PRESENTATION HAMPTON ROADS ROTARY CLUB Robert Herd, Chair — 4 Way Test Committee I. PUBLIC HEARINGS 1. FY 2009-2010 RESOURCE MANAGEMENT PLAN FY 2009-2010 Operating and Capital Budgets 2. LEASE OF CITY OWNED PROPERTY a. 457 Rudder Road b. 461 Rudder Road C. 1409 Old Virginia Beach Road d. Foxwood Drive/S. Independence Blvd. — Timberlake Community Association, Inc. e. 205 Laskin Road — Jody's Popcorn PUBLIC HEARING LEASE OF CITY PROPERTY The Virginia Beach Cita Courci` will hold a PUBLIC HEARING on the proposed 'easing of City -awned property on Tuesday May 12, 2009 at 6:00 p.m. !n we Council Chamber of the City Hall Euiidirg 18uikirg #1;- at the Virginia Beach Municipal Center, Virginia Beach, Virg;n a. The purpose of this Hearing; vi!! be to obtain, public cor�inient an the City's: proposal to the `oliclvir,o ,)rcpPr=es: 1; Apprcxim,jte!y 1,288 So F' of Space located at 457 Fc-idder Fc7tl 2) Apprcx,:—.- te'y 1,176 Sq Ft of Space located at •161 Rudder Road 3) Approximately 1,092 Sq Ft of Space ! ,cated at 14C9 Old Virginia Beach Road. If you are physically disabled or visually impaired and need assistance at this meeting, pease call the CITY CLERK'S OFFICE at 385-4303 • Hearing impaired, call 711 the Virginia Relay. Any questions corcernrng this rnatter should be directed to the Department of Maragement Services - Faci ities Management O;fice, euildirg 18, Rcom 228, at the `virginia Beach Municipal Center ,7571385 5,659. Ruth Hodges Smith, NIMC City Clerk Beacon May :: , ^ ,,09 2011,30160 PUBLIC HEARING LEASE OF CITY PROPERTY The Virginia Beach City Ceur.eii will held a PUBLIC HEARING the pMlrosed leas rg of City-ovxed ;Irf perty, or `.r:sday, -'ay 12 200? at 6:00 p.m. in u e Cr .n gal C^an :e° c` , e City Hail F,,a,lcmg (Building #1; at the Virginia Beath ','urx,nai Center, Virginia Beach, Virginia. The purpose of J,Js Hec.ring 4:1 be tc o:)tair p:ablic cammc^t cr. Vie City's i.roposal to lease the fol,'owing property: Approximately 24,858.83 sq. ft. of "and locE ted at Fc;:',�i od Drive adjacent to S. 'ndeperdence Blvd., nd used by Timberlake Community Associa}icn, Inc, for the storage of major recreational ecuipmert for its :.i>,sociat,on members. 'f you are physically disabled or visually impaired and ,eed assistance at this .-.eetir g, please call 're CITY XERK'S OFFICE at 385-4303; Hearing impaired, call TDD only 385 4305 (TDD Telephoie Ce ice fof ?he Deaf). kny questicrs concerning this matter st c.,ld be directed to he Department of Managemert 3ervlces - Facilities rlanagernent Office, Rcom 228, Bu Icing 18, at the Virginia 5_�,ch ivlun,cipal Center (757) 385 5659. ryuth H+:flees Smith, P,WC ty C'erh _ _.a:car FJa; 2, 2009 C0216:Gc,� PUBLIC HEARING LEASE OF CITY PROPERTY The V-rgnia Beach City Council will hold a PUBLIC HEARING on the proposed licensing of City -owned property on Tuescay. May 12, 2009, at 6:00 p.,r.:n the Council Cha,rber of the City Hall E.1;id;ng Z1 I'd ng #1} at tyre Virg<nfa Beacn V,jr)cipal Certer, Vir-t:nia Beach, V rgir a. The purpose of th;s Hearing will be tc cbtair public co,nment or the Cit,,'s prcoosal tc grant a ffcer.se `or the L:se of the fc':'cwirg: %pproxin—ately 48 square feet o' irea Iecatr-d o.its de, under the roof "ne, and next to the space leaned and cperated by Jody's inc. (t.'a Jody's Pcpcc, at 205 L, -skin Road, Virginia 3each, V;rg;nia 23451 If VOL; are physically disabled or visually Impaired and nee --d as-,:!:ta.nce at this meetirg, , iease call Lip CITY CLERK'S OFFICE at 385-4303; Hearing �:npaxed, , iV TDD ai f` 85 4305 'TDD-elephcne Device for the Deaf). Am ccocem rg t!,is Patter "!'culd I3e 4Irt-rtcd to li,w Resort Maragement Office, 2101 Parks Ave ,!ie, Vi, 1,inia Coach, Virgits a 23451 ,'S7; 385 0639. Putr riccges Proser, MMC City 'ierk EBF s:crn '.',a, 2009 20113 X0 J. CONSENT AGENDA K. ORDINANCES/RESOLUTIONS Ordinances re City Code: a. REPEAL § 33-17 and ADD a new Article H with § 23-63 through 23-73 to Chapter 23 re: Noise b. AMEND § 2-468 re: right -to -audit clauses in Contracts. 2. Ordinance to AUTHORIZE the City Manager to execute a Forbearance Agreement with Southeastern Public Service Authority (SPSA) re: payments owed the City in compliance with the 1984 Agreement for disposal of ash residue. 3. Resolution to PROVIDE for the issuance and sale of General Obligation Public Improvement Bonds, Series 2009, in the maximum amount of $80,000,000 re: fmancing various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects 4. Ordinances/Resolutions re: FY 2009-10 RESOURCE MANAGEMENT PLAN a. FY 2009-10 Operating Budget: APPROPRIATE for the Fiscal Year, beginning July 1, 2009 and ending June 30, 2010, the sum of $1,763,292,679 for Operations and $617,334,358 in Interfund Transfers regulating the payment of money out of the City Treasury, as amended 2. ESTABLISH the tax levy on real estate for FY 2010 3. ESTABLISH the tax levy on personal property and machinery and tools for the Calendar Year 2010 4. AUTHORIZE the City Manager to submit an Annual Funding Plan to the U.S. Department of Housing and Urban Development (HUD) 5. TRANSFER $8,800,000 from the School Reserve Special Revenue Fund to the FY 2008-09 General Fund Operating Budget 6. DECLARE $9,000,000 within the Sandbridge Tax Increment Financing District (TIF) as surplus funds in the FY 2008-09 Operating Budget 7. SUSPEND the Transition Area Special Revenue Fund 8. AUTHORIZE future budgets through an Annual rather than Biennial process 9. ELIMINATE § 2-186.1 of the City Code re: preparation of the budget b. FY 2009-10 Capital Budget: AUTHORIZE FY-2010/FY-2014 Capital Improvement Program (CIP); and, APPROPRIATE $236,429,109 for the FY 2010 Capital Budget, subject to funds being provided from various sources set forth therein 2. AUTHORIZE the issuance of General Obligation Public Improvement Bonds in the maximum amount of $62,900,000 for various public facilities and general improvements 3. AUTHORIZE issuance of Water and Sewer System Revenue Bonds in the maximum amount of $17,000,000 5. Ordinance to TRANSFER $150,000 from the FY 2008-09 General Fund Reserve for Contingencies to the Norfolk Southern right-of-way survey re: environmental impact studies and additional survey costs. 6. Ordinance to AUTHORIZE the Virginia Beach Development Authority to award $400,000 to the Art Institute of Virginia Beach LLC and Armada/Hoffler Development Company re: development of The Art Institute of Virginia Beach at Town Center. 7. Ordinance to AUTHORIZE maximum amounts for the sale and rental of Workforce Housing Units. 8. Ordinance to AUTHORIZE a pilot program to establish a pedal cab service in and around the Resort Area from May 23, 2009, through October 1, 2009. 9. Ordinances to AUTHORIZE the City Manager to execute LEASES of City property: a. PIN MINISTRY re: affordable housing for two (2) PIN program residences at 457 and 461 Rudder Road. b. VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION (VBCDC) re: affordable rental housing at 1409 Old Virginia Beach Road. C. TIMBERLAKE COMMUNITY ASSOCIATION, INC. re: storage of major recreational equipment at Foxwood Drive and South Independence Boulevard. d. JODY'S INC. re: outdoor seating area at 205 Laskin Road. r�SDNv`'�1c J °°isH 4{ T� CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Repeal City Code Section 33-17 and Add a New Article II, Consisting of Sections 23-63 through 23-73, to Chapter 23 of the City Code Pertaining to Noise MEETING DATE: May 12, 2009 ■ Background: The Supreme Court of Virginia recently held that the City's noise ordinance is unconstitutional because its prohibition of "unreasonably loud, disturbing and unnecessary noise" is too vague to provide citizens notice of when their conduct would violate the ordinance. The language rejected by the Supreme Court is referred to as a "reasonable person" standard and, until now, has been commonly employed by localities throughout Virginia. ■ Considerations: The attached ordinance relies not on a reasonable person standard but rather on sound levels and per se (delineated) violations. This ordinance is based on a similar ordinance from the City of Charlottesville and includes provisions from a model ordinance drafted by the International Municipal Lawyers Association. The ordinance sets different permissible noise levels based on time, location, and circumstances. The ordinance also classifies a first violation as a Class 3 misdemeanor, which is punishable by a fine of up to $500, and classifies a subsequent violation within one year of a prior conviction as a Class 2 misdemeanor, which is punishable by up to six months in jail and a fine of up to $1000. The City Attorney's Office may propose amendments to these Code sections in the future, based on the Police Department's experience in enforcing these new provisions, but this ordinance is being submitted at this time to ensure that the City has reasonable regulations in place before the beginning of the Resort Season. ■ Public Information: Information will be disseminated through the regular Council agenda notification process. ■ Attachments: Ordinance Recommended Action: Approval Submitting Department/Agency: Policeo� City Manager: 1 AN ORDINANCE TO REPEAL CITY CODE SECTION 33-17 2 AND ADD A NEW ARTICLE II, CONSISTING OF SECTIONS 3 23-63 THROUGH 23-73, TO CHAPTER 23 OF THE CITY 4 CODE, PERTAINING TO NOISE 5 6 SECTION REPEALED: § 33-17 7 8 SECTIONS ADDED: §§ 23-63 to 23-73 9 10 WHEREAS, excessive sound vibration and inadequately controlled noise are 11 serious hazards to the public health, safety and welfare, and a source of annoyance to 12 the populace; and 13 WHEREAS, the residents of and visitors to the City of Virginia Beach are entitled 14 to an environment free from excessive sound vibration and inadequately controlled 15 noise that may endanger their health or welfare, or degrade their quality of life, comfort, 16 repose or peace; and 17 WHEREAS, it is the policy of the City of Virginia Beach to protect the health, 18 safety and welfare of its residents and visitors and to promote an environment free from 19 sound and noise disruptive of peace and good order; and 20 WHEREAS, it is the policy of the City of Virginia Beach to prevent excessive 21 noise that may endanger the health or welfare, or degrade the quality of life, comfort, 22 repose or peace of residents and visitors; 23 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 24 OF VIRGINIA BEACH, VIRGINIA: 25 26 That Section 33-17 of the City Code is hereby repealed, and a new Article II is 27 added to Chapter 23 ("Offenses"), pertaining to noise restrictions, which shall read as 28 follows: 29 30 Chapter 23. OFFENSES MISCELLANEOUS 31 32 ARTICLE I. MISCELLANEOUS OFFENSES 33 34 .... 35 36 ARTICLE II. NOISE 37 38 Sec. 23-63. Declaration of findings and policy. 39 40 City council hereby finds and declares that excessive sound is a serious hazard 41 to the public health,.welfare peace and safety and the quality of life; that a substantial 42 body of science and technology exists by which excessive sound may be substantially 43 abated; that the people have a right to and should be ensured an environment free from 44 excessive sound that may jeopardize the public health, welfare, peace and safety or 45 degrade the quality of life; and that it is the policy of the city to prevent such excessive 46 sound. 47 48 Sec. 23-64. Definitions. 49 50 The following words terms and phrases, when used in this article, shall have the 51 meanings ascribed to them in this section, except where the context clearly indicates a 52 different meaning: 53 54 A -weighted sound level means the sound pressure level in decibels as 55 measured on a sound level meter using the A -weighting network. The level so read is 56 designated dB(A) or dBA. 57 58 Background noise level shall mean the aggregate of all sound sources impacting 59 at the place where a specific sound generation is measured or evaluated, excluding the 60 specific sound generation itself. 61 62 Decibel (dB) means a unit for measuring the volume of a sound, equal to twenty 63 (20) times the logarithm to the base ten (10) of the ratio of the pressure of the sound 64 measured to the reference pressure, which is twenty (20) micropascals (twenty (20) 65 micronewtons per square meter). 66 67 Emergency means any occurrence or set of circumstances involving actual or 68 imminent physical injury or illness or property damage that requires immediate action. 69 70 Emergency work means any work performed for the purpose of preventing or 71 alleviating the physical injury or illness or property damage threatened or caused by an 72 emergency. 73 74 Gross vehicle weight rating (GVWR) means the value specified by the 75 manufacturer as the recommended maximum loaded weight of a single motor vehicle. 76 In cases where trailers and tractors are separable, the gross combination weight rating 77 (GCWR), which is the value specified by the manufacturer as the recommended 78 maximum loaded weight of the combination vehicle, shall be used. 79 80 Instrument, machine or device means and refers to any musical instrument, 81 radio, phonograph, compact disc player, cassette tape player, amplifier or any other 82 machine or device for producing, reproducing or amplification of sound. 83 84 Motor carrier vehicle engaged in interstate commerce means any vehicle for 85 which regulations apply pursuant to section 18 of the Federal Noise Control Act of 1972 86 (P. L. 92-574), as amended, pertaining to motor carriers' engaged in interstate 87 commerce. 88 89 Motorcycle means any motor vehicle designed to travel on not more than three 90 (3) wheels in contact with the ground and any four-wheeled vehicle weighing less than 91 five hundred (500) pounds and equipped with an engine of less than six (6) horsepower, 92 excepting farm tractors. 93 94 Motor vehicle means any self-propelled device or device designed for self- 95 propulsion, upon or by which any person or property is or may be drawn or transported 96 upon a street or highway, except devices moved by human power or used exclusively 97 upon stationary wheels or tracks. 98 99 Noise means any sound which annoys or disturbs humans or which causes or 100 tends to cause an adverse psychological or physiological effect on humans. 101 102 Public area means any real property owned by the government, including, but not 103 limited to, public rights-of-way, sidewalks, parks, and buildings. 104 105 Residential dwelling means any building or other structure in which one or more 106 persons resides on a permanent or temporary basis including but not limited to, 107 houses, apartments condominiums, hotels, and motels. 108 109 Restaurant means any building or structure where in the normal course of 110 business food or drink is available for eating on the premises, in consideration for 111 payment. For purposes of this chapter, the term restaurant includes, but is not limited 112 to, bars, lounges, taverns, coffee shops and cafes. 113 114 Sound means an oscillation in pressure particle displacement, particle velocity or 115 other physical parameter, in a medium with internal forces that causes compression and 116 rarefaction of that medium The description of sound may include any characteristic of 117 such sound, including duration intensity and frequency. 118 119 Sound generation means any conduct activity or operation, whether human, 120 mechanical, electronic or other, and whether continuous intermittent or sporadic, and 121 whether stationary or ambulatory in nature which produces or results in an audible 122 sound. 123 124 Sound level means the weighted sound pressure level obtained by the use of a 125 sound level meter and the A-frequency weighting network as specified in American 126 National Standards Institute specifications for sound level meters. 127 128 Sound level meter means an instrument which includes a microphone, amplifier, 129 RMS detector, integrator or time averager, output meter and weighting networks used to 130 measure sound pressure levels. 131 132 133 134 Sec. 23-65. Administration and enforcement. 135 136 The police department shall be responsible for enforcement of the noise control 137 program established by this article and may be assisted by other city departments as 138 required. 139 140 Sec. 23-66. Violations. 141 142 (a) Any person who violates any provision of this article shall be deemed to be 143 guilty of a Class 3 misdemeanor for a first offense. Any person who violates a provision 144 of this article within one (1) year after a previous conviction under this article shall be 145 guilty of a Class 2 misdemeanor. 146 147 (b) The person operating or controlling a noise source shall be guilty of any 148 violation caused by that source. If that cannot be determined, any owner, tenant, 149 resident or manager physically present on the property where the violation is occurring 150 is rebuttably presumed to be operating or controlling the noise source. 151 152 (c) In addition to and not in lieu of the penalties prescribed in this section, the 153 city may apply to the circuit court for an injunction against the continuing violation of any 154 of the provisions of this article and may seek any other remedy or relief authorized by 155 law. 156 157 Sec. 23-67. Exceptions. 158 159 No provisions of this article shall apply to (1) the emission of sound for the 160 purpose of alerting persons to the existence of an emergency; (2) the emission of sound 161 in the performance of emergency work; (3) activities sponsored by the City; (4) activities 162 authorized by a permit issued by the City; or (5) activities for which the regulation of 163 noise has been preempted by federal law. 164 165 Sec. 23-68. Use of sound level meters. 166 167 The decibel level of any noise regulated by this article shall be measured by a 168 sound level meter. In order to implement and enforce this article effectively, the chief of 169 police shall promulgate standards and procedures for using and testing sound level 170 meters used in the enforcement of this article. 171 172 Sec. 23-69. Maximum sound levels and residential dwellings. 173 174 (a) Nighttime. No person shall permit, operate or cause any source of sound to 175 create a sound level that can be heard in another person's residential dwelling during 176 the hours between 10:00 p.m. and 7:00 a.m. in excess of 55 dBA when measured 177 inside the residence at least four (4) feet from the wall nearest the source, with doors to 178 the receiving area closed and windows in the normal position for the season. 179 180 (b) Daytime No person shall permit operate or cause any source of sound to 181 create a sound level in another person's residential dwelling during the hours between 182 7:00 a.m. and 10.00 p.m. in excess of 65 dBA when measured inside the residence at 183 least four (4) feet from the wall nearest the source with doors to the receiving area 184 closed and windows in the normal position for the season. 185 186 c Measurements in multifamily dwellings or mixed use structures. In a 187 structure used as a multifamily dwelling or a mixed use structure the police department 188 may take measurements to determine sound levels from common areas within or 189 outside the structure or from other dwelling units within the structure when requested to 190 do so by the residential occupant in possession and control thereof. Such 191 measurement shall be taken at a point at least four (4) feet from the wall, ceiling or floor 192 nearest the noise source with doors to the receiving area closed and windows in the 193 normal position for the season. 194 195 (d) Exemptions The following activities or sources of noise shall be exempt 196 from the daytime prohibition set forth in subsection (b) of this section: 197 198 (1) Band performances or practices athletic contests or practices and other 199 school -sponsored activities on the grounds of public or private schools, colleges, or 200 universities. 201 202 (2) Athletic contests and other officially sanctioned activities in city parks or 203 facilities. 204 205 3 Activities related to the construction repair, maintenance remodeling or 206 demolition, grading or other improvement of real property_ 207 208 4 Gardening lawn care tree maintenance or removal and other landscaping 209 activities. 210 211 (5) Agricultural activities. 212 213 (6) Church bells carillons or calls to worship by other sound -producing devices. 214 215 7 Religious or political gatherings to the extent that those activities are 216 protected by the First Amendment to the United States Constitution. 217 218 8 Public transportation refuse collection and sanitation services. 219 220 Sec. 23-70. Motor vehicle maximum sound levels; amplified sound from vehicles. 221 222 (a) No person shall operate or cause to be operated a public or private motor 223 vehicle or motorcycle on a public right-of-way at any time in such a manner that the 224 sound level emitted by the motor vehicle or motorcycle when measured at a distance of 225 fifty (50) feet or more exceeds the level set forth in the following table: 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 TABLE INSET: (b) This section shall not apply to any motor carrier vehicle engaged in interstate commerce. c) Notwithstanding anv other provisions of this section or article, it shall be unlawful for any person to play or operate or permit the playing use or operation of, any radio tape player, compact disc player, loud speaker or other electronic device used for the amplification of sound which is located within a motor vehicle being- operated eingoperated or parked on public or private property within the city, including any public or private street or alley, in such a manner as to be audible to the human ear at a distance of one hundred (100) or more feet from the vehicle in which it is located. 241 The provisions of this subsection shall not apply to motor vehicles driven in a 242 duly authorized parade nor to motor vehicle alarms or other security devices, nor to the 243 emission of sound for the purpose of alerting persons to the existence of an emergency 244 or the emission of sound in the performance of emergency work. 245 246 Sec. 23-71. Specific prohibitions. 247 248 The following acts are declared to be violations of this article. This enumeration 249 shall not be construed to limit in any way, the general prohibitions contained in Section 250 23-69: 251 (a) Vehicle horns signaling devices and similar devices. Sounding any horn, 252 signaling device or similar device on any automobile, motorcycle or other vehicle on 253 any right-of-way or in any public space continuously or intermittently for more than ten 254 (10) consecutive seconds, except when the sounding of any such device is intended as 255 a danger warnin 256 (b) Non -emergency signaling devices. Sounding or permitting the sounding 257 of anv amplified signal continuously or intermittently from any bell, chime, siren, whistle 258 or similar device intended primarily for non -emergency purposes from any one location 259 for more than ten (10) consecutive seconds in any hourly period: provided, however, Sound level in dBA Vehicle Class Speed limit 35 Speed limit over MPH or less 35 MPH All motor vehicles of GVWR or GCWR of 86 90 6.000 lbs. or more Any motorcycle 82 86 Any other motor vehicle or any combination of 76 82 vehicles towed by any motor vehicle (b) This section shall not apply to any motor carrier vehicle engaged in interstate commerce. c) Notwithstanding anv other provisions of this section or article, it shall be unlawful for any person to play or operate or permit the playing use or operation of, any radio tape player, compact disc player, loud speaker or other electronic device used for the amplification of sound which is located within a motor vehicle being- operated eingoperated or parked on public or private property within the city, including any public or private street or alley, in such a manner as to be audible to the human ear at a distance of one hundred (100) or more feet from the vehicle in which it is located. 241 The provisions of this subsection shall not apply to motor vehicles driven in a 242 duly authorized parade nor to motor vehicle alarms or other security devices, nor to the 243 emission of sound for the purpose of alerting persons to the existence of an emergency 244 or the emission of sound in the performance of emergency work. 245 246 Sec. 23-71. Specific prohibitions. 247 248 The following acts are declared to be violations of this article. This enumeration 249 shall not be construed to limit in any way, the general prohibitions contained in Section 250 23-69: 251 (a) Vehicle horns signaling devices and similar devices. Sounding any horn, 252 signaling device or similar device on any automobile, motorcycle or other vehicle on 253 any right-of-way or in any public space continuously or intermittently for more than ten 254 (10) consecutive seconds, except when the sounding of any such device is intended as 255 a danger warnin 256 (b) Non -emergency signaling devices. Sounding or permitting the sounding 257 of anv amplified signal continuously or intermittently from any bell, chime, siren, whistle 258 or similar device intended primarily for non -emergency purposes from any one location 259 for more than ten (10) consecutive seconds in any hourly period: provided, however, 260 that this subsection shall not apply to the sounding of such devices by religious uses or 261 by public bodies or agencies for testing traffic control or other public purposes 262 (c) E=mergency signaling devices, security, burglar and fire alarms etc 263 Sounding or permitting the continuous or intermittent sounding outdoors of any 264 emergency signaling device, or any security, burglar or fire alarm siren whistle or 265 similar device., including without limitation any motor vehicle security alarm siren 266 whistle, or similar device, for a period in excess of ten (10) minutes in any residential 267 area and fifteen (15) minutes in any other area except in response to a burglary,, 268 attempted burglary, fire, or other emergency_ 269 (d) Audio and audio-visual devices, musical instruments etc The playing of 270 any television boombox stereo phonograph radio tape player, compact disc player, 271 MP3 player, video player, musical instrument drum or any other device that produces 272 reproduces or amplifies sound, including any such device in a motor vehicle where the 273 sound is plainly audible to any person other than the players(s) or operators) of the 274 device and those who are voluntarily listening to the sound and is plainly audible and 275 discernable at a distance of fifty (50) feet or more from the source of the sound,• 276 provided, howE;ver that the provisions of this subsection shall not apply to any outdoor 277 performance, parade, gathering dance concertshow, sporting event or other event 278 sponsored by the city or for which the city has granted a permit 279 280 (e) Noise -sensitive areas. The making of any unreasonably loud and raucous 281 noise within two hundred (200) feet of any school place of worship court hospital 282 nursing home, or assisted -living facility while the same is being used as such that 283 interferes with the workings of the institution. 284 (f) Construction equipment. The operation of any bulldozer, crane backhoe 285 front loader, pile driver, jackhammer, pneumatic drill or other construction equipment 286 between the hours of 9:00 p.m. and 7:00 a.m. except when operated in the course of 287 emergency work or as authorized by the City Manager. 288 289 Sec. 23-72. Sound levels: restaurants. 290 291 No person shall permit, operate or cause any source of sound to create a sound 292 level emanatinq from a restaurant during the hours between 11.00 p.m. and 7.00 a.m. 293 (1) in excess of seventy-five (75) dB(A) when measured from any public area including 294 but not limited to adjacent streets or sidewalks: or (2) that is plainly audible and 295 discernable at a distance of fifty (50) feet from any of the restaurant's external walls 296 when measured from any property other than the property on which the restaurant is 297 located. 298 299 302 Sec. 23-73. Severability. 303 304 A determination of invalidity or unconstitutionality by a court of competent 305 jurisdiction of any clause, sentence, paragraph, section or part of this article shall not 306 affect the validity of the remaining parts thereto. 307 308 Chapter 33. STREETS AND SIDEWALKS 309 310 ... 311 312 SeG.33-17� Portions asgueerze 313 314 (a) That portion of any street within three hURdFed (300) feet ef —aRY GhUFGh 315 " 316 317 , 318 Zone ad1janent to a hospital at any time 319 (h�rte GhuFGhes and hospitals to whish this sention applies may Loop upon 320 . 321 SUGh signs shall be I y the diFeGteF Gf publiG Y.Wks. 322 323 COMMENT 324 The provisions of this section have been incorporated into the new Section 23-71(e), above. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2009. APPROVED AS TO CONT APPROVED AS TO LEGALSUFFICIENCY: Polic epartment j City Attorney's O ce CA11122 R-7 May 6, 2009 9 ay`N'n BE,�c i; CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Amend Section 2-468 of the City Code Pertaining to Right -to - Audit Clauses in City Contracts MEETING DATE: May 12, 2009 ■ Background: In 2007, the City abolished the Department of Audit Services and created the Office of the City Auditor. At this time, the City Code was amended to add provisions pertaining to the Office of the City Auditor. One of the added code sections provided for "right -to -audit" provisions to be included in City contracts. A "right -to -audit" provision in a City contract ensures access to pertinent records and requires record retention from the other party to a contract. With this access, the City Auditor is able to inspect records and ensure that City funds are directed and used in a manner that is consistent with the provisions of the contract and applicable law. ■ Considerations: This amendment specifies the types of contracts where a "right -to -audit" clause is required. The clause is most applicable to contracts that anticipate an ongoing relationship between the City and the contractor and those agreements where the source of funding provides restrictions upon the implementation of the funding. The amendment also provides that a "right -to -audit" provision shall be included in City contracts where the relevant facts and circumstances support the inclusion of such provision. ■ Public Information: Public information will be provided through the normal Council Agenda process. ■ Recommendations: It is recommended that Council amend Section 2-468 of the City Code pertaining to right -to -audit clauses in City contracts. ■ Attachments: Ordinance Recommended Action: Approval Submitting Department/Agency: Office of the City Auditor City ManageFz k , i'X 1 AN ORDINANCE TO AMEND SECTION 2 2-468 OF THE CITY CODE PERTAINING TO 3 RIGHT -TO -AUDIT CLAUSES IN CITY 4 CONTRACTS 5 6 SECTIONS AMENDED: § 2-468 7 8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 11 That Section 2-468 of the Code of the City of Virginia Beach, Virginia, is hereby 12 amended and reordained to read as follows: 13 14 Sec. 2-468. Access to employees, records and property. 15 16 .... 17 18 (b) Ongoing service, construction, architecture and enqineerinq and franchise AP 19 contracts with outside contractors shall contain a "right -to -audit" clause afid-provideing 20 the city auditor access to the contractor's records relating to or pertaining to the contract 21 as well as records relating to or pertaininq to property and equipment purchased in 22 whole or in part: with governmental funds in the performance of the contract. Right -to - 23 audit clauses shall be included in other city contracts where the facts and circumstances 24 support the need for the provision. 25 26 .... 27 28 COMMENT 29 30 "Right -to -audit" clauses provide the City, through the City Auditor, with the ability to 31 ensure compliance and accountability. This amendment specifies the types of contracts where a 32 "right -to -audit" clause is required. The provision will also be required in those situations where 33 the funding for the contract requires the City to have access to the contractor's records. Last, the 34 amendment states that the provision may be included in other City contracts depending on the 35 relevant facts and circumstances. Adopted by the Council of the City of Virginia Beach, Virginia, on this day of , 2009. APPROVED AS TO CONTENT APPROVED AS TO LEGAL SUFFICIENCY: City Auditor CA11089 / R-1 / March 31, 2009 City Attorney's ffice 4U s CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Approve a Forbearance Agreement Between the City and the Southeastern Public Service Authority (SPSA) MEETING DATE: May 12, 2009 ■ Background: On April 14, 2009, City Council approved participation in a "Financial Assistance Plan" for the Southeastern Public Service Authority (SPSA). This multi -faceted plan involves raising the municipal tipping fee from $104/ton to $170/ton, the refinancing of some of SPSA's outstanding debt with a guarantee from five of the member localities, a guarantee of a line of credit by two localities, and a deferral of reimbursement amounts owed to the City of Virginia Beach under a 1984 contract between SPSA and the City. The City's deferral of the receipt of these payments will be subject to the terms of a written Forbearance Agreement. ■ Considerations: The City Manager and the Director of the Finance Department have been working with the City Attorney to negotiate with SPSA representatives the terms of an appropriate Forbearance Agreement. A summary of the terms of that agreement is attached. ■ Public Information: Public information will be provided through the normal City Council agenda process. ■ Attachments: Ordinance, Summary of Terms Recommended Action: Approval Submitting Department: Finance FP City Manager. S � , 1 2 3 4 5 6 7 8 9 10 11 12 AN ORDINANCE TO APPROVE A FORBEARANCE AGREEMENT BETWEEN THE CITY AND THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY (SPSA) BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City Council hereby authorizes the City Manager to execute a Forbearance Agreement with the Southeastern Public Service Authority of Virginia in accordance with the Summary of Terms attached hereto and such other terms and conditions deerned necessary and sufficient by the City Manager and in a form deemed satisfactory by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia on the day of 2009. APPROVED AS TO CONTENT: CAI 1130 R-2 May 5, 2009 APPROVED AS TO LEGAL SUFFICIENCY: fvL", b. -:;� City Attorney's Office SUMMARY OF TERMS PARTIES: City of Virginia Beach and SPSA PURPOSE: The City Agrees to forbear SPSA's payment of amounts owed to the City under the parties' 1984 Agreement for Disposal of Ash and Process Residue TERMS • Maximum amount to be deferred is $26.6 million. • Forbearance period is through June 30, 2010. • Repayment begins October 2010 and will be complete before December 31, 2015. • Interest charged beginning July 1, 2010 at a rate that equals 2% more than average of interest rates on two-year Treasury Notes between July 1, 2005 and July 1, 2010. • Amount defined will be reflected in a Junior Subordinated Note and secured by pledge of SPSA's net revenues. • Right to repayment is on parity with right of other localities to recover amounts paid pursuant to their guarantees and subordinate to net revenue pledge securing SPSA bond debt (including VRA bond issuance). • Contains a rate covenant whereby SPSA agrees to fix, charge and collect sufficient fees to pay all debt, including the Junior Subordinate Note. "o QC 2 m y �qm W O c m m Q � Z Q 5 E- LL O E 0 } N v >a 0 nN C a d N y O 0 0 0 O 00 O m O M O O a � M cND � o (ci O O N O J N N v 0 0 0 N N N N N N (D (D L D CD (D p N Oln 00 O d'CM N' CON O CD ' 0 0 0 0 0 0 U', n� N IIII U' o a Lf) U C C G m EN EN o M N o Nn ° r N O O O 0 0 0 O O 0 0 O O O N O J N N t- 0 0 0 N N N N N N O O O N N N N 0 0°�O N N I N � D CD (D p N Oln UD ID( -0 O d'CM N' CON O D 00 D O O ' 0 0 0 0 0 0 0000 O O O O O O O oO J N N O N N N N N N N N N N N N O N N N D c o o O 0000000 0 o O o o 0 0 0 000050 O D 000 O O o O O o O O O O O O 0 0 0 0 0 0 0 0 0 o 0 0 0 0 C o 0 0 0 0 g 0 c O D 000 o 0 o 0,60 in 000 Iic O0 Lo O GO UD Oo 00 1) Nco0 3 0D t - CD O ODOUR I - o00 ONO C!UD In OUDOOa Cn0 at: O - O UC7 N0 OOo -M� 0)OA 0 0 N�M��N� M�N�U� to (OivNN M 'O 'O C 0-0 'C y C 'O y L D .0 C L C L C C O C o C c o c ca coomomm mmmm mo ED M m m m m� m EIX Ix acid E � aci acid aci y -.6 Q > a EaEE* 06EEca Ev E Wo ? an d . . i. > o o o> o a a o 2 km Z a m a CL 2: 0. E Z aaZ CL o m E `o E aE E a— E-- E3 aE E a E-- E E g g aE o= E o y �— = 8—a mmmm d m 2— aaaa c �— B 2a.a >> C rnm >>>>=a u. n.n.aa >>>> as as >m >> aaa r 000000000 OOCD00 8 C7C7C dd, 0b00 (9(7-5(70 0 MO A C A O M 0 t`OD o - NM 0 0 0 0 ° 0 et Un Co co 0000 NNM V UC) 0 0 0 0 0 1) O 0 0 0 N 0 0 0 0 0 0 0 0 N N N N 7 y C O C L C C p m0 m m m y c m c c c 4) > > > C d m m m m m E E E 2 V O O O 0.0. C m E _ E N _ _ J U Uca aE U L a a' a' a' Q m O O O 3 > d c� _ Lo Q m m N V N N N N N U C C G m EN EN Government Finance Associates, Inc. 6. There; is also a side benefit to issuers of tax-exempt bonds from the use of BABs in the market place by larger issuers. As a result of the decline in volume caused by the amount of taxable BABs that have been sold, among other factors, tax- exempt interest rates have improved, providing reasonably low debt service charges for traditional sellers of tax-exempt bonds. For example, we expect that the City could sell its envisioned twenty-year bond issue today at a true interest cost no greater than 3.80%. We can not promise that this will be the rate on June 3rd when the bond issue is sold, but the current interest rate environment is particularly attractive. 7. Virginia Beach has the advantage of being able to watch the developing BAB market to determine if changes in the call structure, the maturity structure, and related factors could, over time, make BABs more accommodative for City purposes. As shown above, there are a series of factors that underlie our conclusion that, at present, we would not recommend the City employ BAB bonds for the 2009 sale. We also think that the currently positive interest rate environment for tax-exempt bonds argues quite persuasively for the continuing use of the tax-exempt market for Virginia Beach. M Government Finance Associates, Inc. 2. Most of the BAB debt has been sold with term bonds, either in the form of a bullet maturity or with maturities starting very near the final maturity. While there have been some maturities in the shorter end of the maturity range, such as 2014, they have generally been bullet maturities. Taxable buyers are generally interested only in large principal amounts in one maturity to assist in marketability. The issuance of long-dated term bonds would adversely affect the City's debt repayment structure, which has been a key factor in achieving and maintaining a triple-A rating classification. 3. As implied by (1) and (2) above, the bond issues that have employed BABs have been very large — the State of California ($6.85 billion), NY Metropolitan Transit Authority ($750 million), and the New Jersey Turnpike Authority ($1.375 billion). The University of Virginia did sell a bond issue, utilizing BABs, in the amount of $250 million, but the maturity was in 2039. 4. Another critical factor impacting Virginia Beach is the fact that BAB debt can not, under most circumstances, be refunded for interest savings to the issuer. It is not a function of the BAB program; rather, the taxable market does not provide for calling bonds at par in ten years, unlike the flexibility that is allowed in the tax-exempt market. The conventional call in the taxable market consists of a "make -whole" provision — this characteristic eliminates present value savings for the issuer; in the taxable bond market, where the "make -whole" provision exists, the investor receives all of the present value savings if a call occurs. The City has routinely taken advantage of refinancing opportunities over the years to reduce its debt service charges. We have prepared an exhibit that illustrates how often Virginia Beach has recently employed refinancings for this purpose. It appears to us that the elimination of any ability to achieve refinancing savings as interest rates change over time is not a program that would, based on history, be attractive to the City. The maximum interest rate advantage in utilizing BABs with the 35% interest rate was computed by the University of Virginia at 71 basis points (determined based on a taxable rate for a 2039 maturity with the subsidy, compared with a presumed tax-exempt rate). Other issuers of BABs have experienced lower, some much lower, interest rate advantage — some even at a negative value. Based on the transactions that have come to market, we do not envision a cost advantage to Virginia Beach with its traditional amortization schedule; moreover, even if the City decided to alter its repayment structure to do a bullet maturity, we do not think Virginia Beach would receive a major advantage from BAB debt since the amount of any term maturity would not be equivalent in size to any BAB debt issues that were especially helped by the BAB structure. 0J, Government Finance Associates, Inc. 590 Madison Avenue, 21" Floor New York, New York 10022 212-521-4090 May 1, 2009 TO: PATRICIA A. PHILLIPS; RICHARD N. DUNFORD FROM: J. CHESTER JOHNSON SUBJECT: USE OF BUILD AMERICA BONDS Build America Bonds (`BABs") were included in the economic stimulus program (American Recovery and Reinvestment Act of 2009) recently enacted by the Federal Government. They can be used by entities that otherwise are authorized to sell tax- exempt debt; however, BABs are sold as taxable instruments with an interest rate subsidy paid directly by the Federal Government to the issuer or with a Federal tax credit that can be used by the investor. Virtually all of the BAB debt sold so far has consisted of the program providing for an interest rate subsidy being paid directly by the Federal Government to the issuer of the BABs. There are numerous administrative and procedural characteristics to BAB issuance, but the most important are: (i) the taxable nature of the obligation, (ii) the 35% interest rate subsidy, and (iii) the fact that the debt can only be used for new capital projects (not for any refundings). It should be noted that BABs are consistent with U. S. Treasury Department debt and tax policy that has been articulated strongly in both Democratic and Republican Administrations. For many years, Treasury has viewed negatively the use of tax - exemption, since, from its perspective, there is a greater loss of revenue through tax - exemption than there would be supporting taxable issuance with a direct appropriation subsidy at a level around 30-35%. Treasury's proposal has taken the form of a taxable bond option, such as the direct subsidy to the issuer, and a tax credit program, which is part of the BAB authorization, but which has also been used in the last few years in a program employed by some school districts, known as "QZAB" debt. The recently authorized program has already had its effect on reducing tax-exempt issuance — Bloomberg has, over the last few days, indicated that tax-exempt debt sales for the 2009 calendar year is already down by 29% from last year. This decline in tax-exempt issuance can be explained, in large part, by the recent significant issuance of taxable BAB debt. The more immediate question is: Should Virginia Beach use BABs for its current bond issue? Our view is that, at present, the City is better served by selling its debt on a tax- exempt basis. The reasons are as follows: 1. Most of the advantage of BABs is on the longest part of the yield curve. The vast majority of the BAB debt has been issued with maturities extending beyond 2030, even to 2040. The final maturity for the City's proposed issue is inside 2030. r CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: A Resolution providing for the Issuance and Sale of General Obligation Public Improvement Bonds, Series 2009, in the maximum amount of $80,000,000. MEETING DATE: May 12, 2009 ■ Background: Based on a review of capital project expenditures and future CIP needs, the Department of Finance has begun preparations for a general obligation new money bond sale in the amount up to $80 million. The Bond sale is composed of portions of 2006, 2007 & 2008 Charter Bond Authorizations previously approved by Council on May 9, 2006, on May 15, 2007 and on May 13, 2008 respectively. The bond proceeds from the proposed sale will reimburse previous expenditures for those authorized projects. Based on current market conditions, the City's Financial Advisor, Government Finance Associates ("GFA"), have recommended that this sale take place on June 3, 2009. In addition, GFA has prepared the attached letter on the use of Build America Bonds. Based on the reasons outlined in the letter, it is GFA's opinion and recommendation that the City continue to use the traditional tax-exempt bond market for this sale. A draft of the Preliminary Official Statement indicating the preliminary sale amount of $72 million is also enclosed. On the sale date if market conditions are favorable the City may increase the principal amount by 10%, thus the authorization of up to $80 million. ■ Considerations: The new money sale represents the City's annual general obligation bond sale. The City's Bond Counsel, Troutman Sanders, has prepared the enclosed resolution authorizing the issuance and sale of the bonds. The bonds will be sold by competitive bid with the actions of the City Manager being conclusive provided, however, that the bonds shall have a true interest cost not to exceed 5.5 percent. The proposed bond structure for the new money takes into consideration the proposed FY10 debt service budget. As an accommodation to bidders, the City will employ an electronic bidding system in accordance with the Official Notice of Sale. After today's Council action no further vote of the City Council will be necessary. The final terms of each sale will be provided to City Council shortly following the sale. ■ Public Information: Public information will be handled through the normal Council agenda process. The original Charter authorizations were a part of the public information process for the City's Resources Management Plan (Budget/CIP). In addition, a Notice of Sale will be placed in The Bond Buyer, a daily newspaper for the tax-exempt bond market. ■ Alternatives: There are no practical alternative funding sources at this time. This request follows previously approved CIPs. ■ Recommendations: The enclosed resolution providing for the bond sale in the maximum amount of $80 million is recommended for City Council approval. ■ Attachments: Resolution authorizing the bond sale Letter from Chester Johnson of GFA, dated May 1, 2009. Draft of -the Preliminary Official Statement, dated May 1, 2009 with: Draft of the Continuing Disclosure Agreement — (Appendix C) Draft of the Official Notice of Sale — (Appendix E) Recommended Action: Approval of Resolution Submitting Department/Agency: Finance (;QKLLfjQ_) City Manager--. �-�-� � 1S`( PROJECT LISTING REIMBURSEMENT ALLOCATION City of Virginia Beach 2009 General Obligation Bond Sale - $72 Million Summary of 2006 - 2008 Charter Bond Allocation Economic Vitality 883,580 ECONOMIC & TOURISM 2,377,909 9069 19th Street Corridor Improvement $ 2,084,743 SAFE COMMUNITY 1,206,647 BUILDINGS 3038 Various Buildings Rehab and Renewal 1,027,518 3054 Animal Control & Canine Units Replacements 56,136 3244 Fire / Rescue Station, Ches Beach 1,353,270 QUALITY PHYSICAL ENVIRONMENT ROADWAYS 2018 Major Intersection Improvements 521,684 2025 Witchduck Rd - PH II 171,925 2048 PA RD Kempsville Rd Intersection 15,481,784 2072 First Colonial Rd/VB RD Intersection Improvements 3,406,927 2073 Buckner Blvd. Extended 199,235 2083 Diamond Springs Rd Bridge Replacement 1,371,188 2107 Seaboard Rd 493,056 2118 Shore Dr Improvements - PH IV 336,242 2149 Birdneck Rd - PH II 457,919 2152 Elbow Rd Extended - PH II 883,580 2157 Lynnhaven Pkwy - PH IX 2,377,909 2208 Constitution Dr Extended 889,736 2256 Indian Rover Rd - PH VII 1,206,647 CULTURAL & RECREATIONAL OPPORTUNITIES BUILDINGS 3322 Virginia Acquarium Original Exhibit Gallery Renovation 1,845,762 3366 Various Bdgs HVAC Rehab & Renew PH 11 1,294,903 3367 Various Bdgs Rehab & Renew PH II 922,442 3368 Various Site Acquistitons 3,417,883 PARKS & RECREATION 4075 Pedestrian System Improvements - PH I 175,009 $ 39,975,498 QUALITY EDUCATION & LIFELONG LEARNING SCHOOLS 1001 Renov & Replace - Energy Management $ 598,488 1019 Great. Neck Middle School Replacement 1,733,692 1031 Academy Facilities Improvements 56,587 1062 ADA School Modifications 77,018 1075 Diamond Springs Elementary 3,096,021 1078 School Bus Facility Renovation/Expansion 2,325,847 1196 Instructional Technology 100,000 1227 Windsor Woods Elem. School Modernization 412,813 1232 Tennis Court Renovations 75,339 1234 Virginia Beach Middle School Replacement 18,543,037 1235 Windsor Oaks Elem School Replacement 5,005,660 $ 32,024,502 $ 72,000,000 RESOLUTION OF THE CITY OF VIRGINIA BEACH, VIRGINIA, PROVIDING FOR THE ISSUANCE AND SALE OF A SERIES OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2009, HERETOFORE AUTHORIZED, IN THE MAXIMUM AMOUNT OF $80,000,000, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF The issuance of $63,800,000 of bonds of the City was authorized by an ordinance adopted by the City Council on May 9, 2006, which amount was subsequently reduced to $59,800,000 by ordinance adopted on May 15, 2007, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects, $52,397,407 of which bonds have been issued and sold. The issuance of $63,800,000 of bonds of the City was authorized by an ordinance adopted by the City Council on May 15, 2007, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects, $6,350,705 of which bonds have been issued and sold. The issuance of $68,700,000 of bonds of the City of Virginia Beach, Virginia (the "City") was authorized by an ordinance adopted by the City Council of the City of Virginia Beach, Virginia (the "City Council") on May 13, 2008, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects, none of which bonds have been issued and sold. It has been recommended to the City Council by representatives of Government Finance Associates, Inc. (the "Financial Advisor") that the City issue and sell a series of general obligation public improvement bonds in the maximum principal amount of $80,000,000. The City Council has determined it is in the City's best interest to issue and sell $7,402,593 of the bonds authorized on May 9, 2006; $57,449,295 of the bonds authorized on May 15, 2007; and up to $15,148,112 of the bonds authorized on May 13, 2008. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. Issuance of Bonds. There shall be issued, pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the City Charter (Chapter 147 of the Acts of the General Assembly of 1962, as amended) and the Public Finance Act of 1991 (Chapter 26, Title 15.2, Code of Virginia of 1950, as amended), general obligation public improvement bonds of the City in the maximum principal amount of $80,000,000 (the "Bonds"). The proceeds of the Bonds will be used to provide funds to finance, in part, the costs of various public, school, road and highway, coastal, economic and tourism, building and parks and recreation improvements, as more fully described in the ordinances authorizing the Bonds adopted on May 9, 2006, May 15, 2007 and May 13, 2008 (collectively, the "Project"), and the costs incurred in connection with issuing the Bonds. 2. Bond Details. The Bonds shall be designated "General Obligation Public Improvement Bonds, Series 2009," or such other designation as may be determined by the City Manager, shall be in registered form, shall be dated such date as may be determined by the City Manager, shall be in denominations of $5,000 and integral multiples thereof and shall be numbered R-1 upward. Subject to Section 8, the issuance and sale of the Bonds are authorized on terms as shall be satisfactory to the City Manager; provided, that the Bonds (a) shall have a "true" or "Canadian" interest cost not to exceed 5.5% (taking into account any original issue discount or premium), (b) shall be sold to the purchaser thereof at a price not less than 99.0% of the principal amount thereof, (c) shall be subject to optional redemption beginning no later than and continuing after June 1, 20119 at an optional redemption price of no more than 102% of the principal amount to be redeemed plus accrued interest to the optional redemption date, and (d) shall mature annually in installments through serial maturities or mandatory sinking fund payments beginning no later than June 1, 2010, and ending no later than June 1, 2029. Principal of the Bonds shall be payable annually on dates determined by the City Manager. Each Bond shall bear interest at such rate as shall be determined at the time of sale, calculated on the basis of a 360 -day year of twelve 30 -day months, and payable semiannually on dates determined by the City Manager. Principal shall be payable to the registered owners upon surrender of Bonds as they become due at the office of the Registrar (as hereinafter defined). Interest 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 Registrar on a date prior to each interest payment date that shall be determined by the City Manager (the "Record Date"). Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. Initially, one Bond certificate for each maturity of the Bonds shall be issued to and registered in the name of The Depository Trust Company, New York, New York ("DTC"), or its nominee. The City has heretofore entered into a Blanket Issuer Letter of Representations relating to a book -entry system to be maintained by DTC with respect to the Bonds. "Securities Depository" shall mean DTC or any other securities depository for the Bonds appointed pursuant to this Section 2. In the event that (a) the Securities Depository determines not to continue to act as the securities depository for the Bonds by giving notice to the Registrar, and the City discharges its responsibilities hereunder, or (b) the City, in its sole discretion, determines (i) that beneficial owners of Bonds shall be able to obtain certificated Bonds or (ii) to select a new Securities Depository, then the City's Director of Finance shall, at the direction of the City, attempt to locate another qualified securities depository to serve as Securities Depository and authenticate and deliver certificated Bonds to the new Securities Depository or its nominee, or authenticate and deliver certificated Bonds to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Section 5; provided, that such form shall provide for interest on the Bonds to be payable (A) from the date of the Bonds if they are authenticated prior to the first interest payment date, or (B) from the interest payment date that is or immediately precedes the date on which the Bonds are authenticated (unless payment of -2- interest thereon is in default, in which case interest on such Bonds shall be payable from the date to which interest has been paid). In delivering certificated Bonds, the City's Director of Finance shall be entitled to rely 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 Bonds will then be registrable, transferable and exchangeable as set forth in Section 7. So long as there is a Securities Depository for the Bonds, (1) it or its nominee shall be the registered owner of the Bonds, (2) notwithstanding anything to the contrary in this Resolution, determinations of persons entitled to payment of principal, premium, if any, 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, (3) the Registrar and the City 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, (4) references in this Resolution to registered owners of the Bonds shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Bonds, and (5) in the event of any inconsistency between the provisions of this Resolution and the provisions of the above -referenced Blanket Issuer Letter of Representations, such provisions of the Blanket Issuer Letter of Representations, except to the extent set forth in this paragraph and the next preceding paragraph, shall control. 3. Redemption Provisions. (a) Optional Redemption. The Bonds shall be subject to redemption prior to maturity at the option of the City Manager, in whole or in part, at any time on and after dates, if any, determined by the City Manager, with the first such optional redemption date beginning no later than June 1, 2019 as set forth in Section 2 at a redemption price equal to the principal amount to be redeemed, together with any interest accrued to the date fixed for redemption, plus a redemption premium not to exceed 2% of the principal amount to be redeemed, such redemption premium to be determined by the City Manager. (b) Mandatory Sinking Fund Redemption. Any term bonds may be subject to mandatory sinking fund redemption upon terms determined by the City Manager. If so determined by the City Manager, the Bonds may provide that the City may take a credit against the mandatory sinking fund redemption obligation of any maturity of term Bonds in the amount of Bonds of the same maturity that have been optionally redeemed or surrendered for cancellation and have not been applied previously as such a credit. If the City wishes to take such a credit, on or before the 70th day next preceding any such mandatory sinking fund redemption date, the City's Director of Finance may instruct the Registrar to apply a credit against the City's mandatory sinking fund redemption obligation for any Bonds of the applicable maturity that have been optionally redeemed or surrendered for cancellation by the City and have not been previously applied as a credit against any mandatory sinking fund redemption obligation for that maturity of the Bonds. Each Bond so previously optionally redeemed or surrendered shall be credited at 100% of the principal amount thereof against the principal amount of such maturity of the Bonds required to be redeemed on such mandatory sinking fund redemption date or dates for such maturity as may be selected by the Director of Finance. -3- (c) Selection of Bonds for Redemption. If less than all of the Bonds are called for optional redemption, the maturities of the Bonds to be redeemed shall be selected by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less than all of a particular maturity of the Bonds are called for redemption, the Bonds within such maturity to be redeemed shall be selected by the Securities Depository pursuant to its rules and procedures or, if the book -entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds; that is obtained by dividing the principal amount of such Bond by $5,000. (d) Redemption Notices. The City shall cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by facsimile transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner of the Bonds. The City shall not be responsible for mailing notice of redemption to anyone other than DTC or another qualified Securities Depository or its nominee unless no qualified Securities Depository is the registered owner of the Bonds. If no qualified Securities Depository is the registered owner of the Bonds, notice of redemption shall be mailed to the registered owners of the Bonds. If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed portion thereof will be issued to the registered owner upon the surrender thereof. 4. Execution and Authentication. The Bonds shall be signed by the manual or facsimile signature of the Mayor or Vice -Mayor, shall be countersigned by the manual or facsimile signature of the City Clerk or Deputy Clerk, and the City's seal shall be affixed thereto or a facsimile thereof printed thereon; provided, that if both of such signatures are facsimiles, no Bond shall be valid until it has been authenticated by the manual signature of the City Treasurer, as Registrar, or an authorized officer or employee of any bank or trust company serving as successor Registrar and the date of authentication noted thereon. 5. Bond Form. The Bonds shall be in substantially the form attached to this Resolution as Exhibit A, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officers signing the Bonds, whose approval shall be evidenced conclusively by the execution and delivery of the Bonds. 6. Pledge of Full Faith and Credit. The full faith and credit of the City are irrevocably pledged for the payment of the principal of, premium, if any, and interest on the Bonds. Unless other funds are lawfully available and appropriated for timely payment of the Bonds, the City Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay when due the principal of, premium, if any, and interest on the Bonds. 7. Registration, Transfer and Owners of Bonds. The City Treasurer is appointed paying agent and registrar for the Bonds (the "Registrar"). The City may appoint a qualified bank or trust company as successor paying agent and registrar of the Bonds. The Registrar shall maintain registration books for the registration and registration of transfers of the 0 Bonds. Upon presentation and surrender of any Bonds at the office of the Registrar, or at its designated corporate trust office if the Registrar is a bank or trust company, together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall execute, and the Registrar shall authenticate, if required by Section 4, and shall deliver in exchange, a new Bond or Bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate and registered in the name as requested by the then registered owner thereof or its duly authorized attorney or legal representative. Any such transfer or exchange shall be at the expense of the City, except that the Registrar may charge the person requesting such transfer or exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person or entity exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person or entity shown as owner on the registration books as of the Record Date. 8. Sale of Bonds. The City Council approves the following terms of the sale of the Bonds. The Bonds shall be sold by competitive bid in a principal amount to be determined by the City Manager, in collaboration with the Financial Advisor, and subject to the limitations set forth in Sections 1 and 2, 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 Section 2. 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 selling the Bonds shall be conclusive, and no further action with respect to the sale and issuance of the Bonds shall be necessary on the part of the City Council. 9. Notice of Sale; Bid Form. The City Manager, in collaboration with the Financial Advisor, is authorized and directed to take all proper steps to advertise the Bonds for sale substantially in accordance with the forms of the Official Notice of Sale and the Official Bid Form, which forms are attached as an Appendix to the draft of the Preliminary Official Statement described in Section 10 below, and which forms are approved; provided, that the City Manager, in collaboration with the Financial Advisor, may make such changes in the Official Notice of Sale and the Official Bid Form not inconsistent with this Resolution as he may consider to be in the best interest of the City. 10. Official Statement. A draft of a Preliminary Official Statement describing the Bonds, a copy of which has been provided or made available to each member of the City Council, is approved as the form of the Preliminary Official Statement by which the Bonds will be offered for sale, with such completions, omissions, insertions and changes not inconsistent with this Resolution as the City Manager, in collaboration with the Financial Advisor, may consider appropriate. After the Bonds have been sold, the City Manager, in collaboration with the Financial Advisor, shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it as a final Official Statement for the Bond, execution thereof by the City Manager to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. The City shall arrange for the delivery to the purchaser of the Bonds of a reasonable -5- number of copies of the final Official Statement by the earlier of seven business days after the Bonds have been sold or the date of issuance thereof, for delivery to each potential investor requesting a copy of the Official Statement and for delivery to each person to whom such purchaser initially sells Bonds. 11. Official Statement Deemed Final. The City Manager is authorized, on behalf of the City, to deem the Preliminary Official Statement and the Official Statement in final form for the Bonds, each to be final as of its date within the meaning of Rule 15c2-12 ("Rule 15c2-12") of the Securities and Exchange Commission (the "SEC"), except for the omission in the Preliminary Official Statement of certain pricing and other information permitted to be omitted pursuant to Rule 15c2-12. The distribution of the Preliminary Official Statement and the Official Statement in final form shall be conclusive evidence that each has been deemed final as of its date by the City, except for the omission in the Preliminary Official Statement of such pricing and other information permitted to be omitted pursuant to Rule 15c2-12. 12. Pr,enaration and Delivery of Bonds. After bids have been received and the Bonds have been awarded to the winning bidder, the officers of the City are authorized and directed to take all proper steps to have the Bonds prepared and executed in accordance with their terms and to deliver the Bonds to the purchaser thereof upon payment therefor. 13. Arbitrage Covenants. The City covenants that it shall not take or omit to take any action the taking or omission of which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued pursuant thereto (the "Code"), or otherwise cause interest on the Bonds to be includable in the gross income of the registered owners thereof under existing laws. Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Bonds, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest on the Bonds from being includable in the ,gross income of the registered owners thereof under existing law. The City shall pay any such required rebate from its legally available funds. 14. Non -Arbitrage Certificate and Elections. Such officers of the City as may be requested are authorized and directed to execute an appropriate certificate setting forth the reasonably expected use and investment of the proceeds of the Bonds in order to show that such reasonably expected use and investment will not violate the provisions of Section 148 of the Code, and any elections such officers deem desirable regarding rebate of earnings to the United States, for purposes of complying with Section 148 of the Code. Such certificate and elections shall be in such form as may be requested by bond counsel for the City. 15. Limitation on Private Use. The City covenants that it shall not permit the proceeds of the Bonds or the facilities financed or refinanced with the proceeds of the Bonds to be used in any manner that would result in (a) 5% or more of such proceeds or of the facilities financed or refinanced with such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, (b) 5% or more of such proceeds or the facilities being financed with such proceeds being used with respect to any output facility (other than a facility for the furnishing of water), within the meaning of Section 0 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any person other than a governmental unit, as provided in Section 141(c) of the Code; provided, that if the City receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Bonds from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law, the City need not comply with such covenants. 16. Investment Authorization. The City Council hereby authorizes the Director of Finance to direct the City Treasurer to utilize either or both of the State Non -Arbitrage Program of the Commonwealth of Virginia ("SNAP") and the Virginia Arbitrage & Investment Management Program ("AIM") in connection with the investment of the proceeds of the Bonds, if the City Manager and the Director of Finance determine that the utilization of either SNAP or AIM is in the best interest of the City. The City Council acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the City in connection with SNAP, except as otherwise provided in the SNAP Contract. 17. Continuing Disclosure Agreement. The Mayor, the City Manager and such officer or officers of the City as either may designate are hereby authorized and directed to execute and deliver a continuing disclosure agreement setting forth the reports and notices to be filed by the City and containing such covenants as may be necessary to assist the purchaser of the Bonds in complying with the provisions of Rule 15c2-12. Such continuing disclosure agreement shall be substantially in the form attached as an Appendix to the draft of the Preliminary Official Statement described in Section 10 above, which form is approved with such completions, omissions, insertions and changes that are not inconsistent with this Resolution. 18. Other Actions. All other actions of officers of the City and of the City Council in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bonds are hereby ratified, approved and confirmed. The officers of the City are authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection with the issuance, sale and delivery of the Bonds. 19. Repeal of Conflicting Resolutions. All resolutions or parts of resolutions in conflict herewith are repealed. 20. Effective Date. This Resolution shall take effect immediately. Exhibit A — Form of Bond -7- Exhibit A — Form of Bond 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 this 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 No. R-_ $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH General Obligation Public Improvement Bond Series 2009 INTEREST RATE MATURITY DATE DATED DATE CUSIP June _, 20_ _,2009 927734 _ REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach, Virginia (the "City"), for value received, promises to pay, upon surrender hereof to the registered owner hereof, or registered assigns or legal representative, the Principal Amount stated above on the Maturity Date stated above, subject to prior redemption as hereinafter provided, and promises to pay interest hereon from the Dated Date stated above on each and , beginning , 2009, at the annual Interest Rate stated above, calculated on the basis of a 360 -day year of twelve 30 -day months. Principal, premium, if any, and interest are payable in lawful money of the United States of America by the City Treasurer, who has been appointed Registrar (the "Registrar"). The City may appoint a qualified bank as successor paying agent and registrar for the bonds. Notwithstanding any other provision hereof, this bond is subject to a book -entry system maintained by The Depository Trust Company ("DTC"), and the payment of principal, premium, if any, and interest, the providing of notices and other matters shall be made as described in the City's Blanket Issuer Letter of Representations to DTC. This bond is one of an issue of $ General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), of like date and tenor, except as to number, denomination, rate of interest, privilege of redemption and maturity, and is issued pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the City Charter and the Public Finance Act of 1991. The Bonds have been authorized by ordinances adopted by the City Council of the City of Virginia Beach (the "City Council") on May 9, 2006, May 15, 2007 and May 13, 2008, and are being issued pursuant to a resolution adopted by the City Council on May 12, 2009 (the "Bond Resolution"), to finance various public, school, road and highway, coastal, economic and tourism, building and parks and recreation improvements and to pay costs of issuance of the Bonds. The Bonds maturing on or before June 1, 2019, are not subject to optional redemption prior to maturity. The Bonds maturing on or after June 1, 2020, are subject to redemption prior to maturity at the option of the City on or after June 1, 2019, in whole or in part at any time (in any multiple of $5,000), upon payment of the following redemption prices (expressed as a percentage of principal amount of the Bonds to be redeemed) plus interest accrued and unpaid to the date fixed for redemption: Period During Which Redeemed Redemption (Both Dates Inclusive) Price The Bonds maturing on , 20_, are required to be redeemed in part before maturity by the City on in the years and amounts set forth below, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, plus interest accrued and unpaid to the date fixed for redemption: Year Amount Year Amount The Bond Resolution provides for a credit against the mandatory sinking fund redemption of the Bonds maturing on , 20 in the amount of Bonds of the same maturity that have been optionally redeemed or surrendered for cancellation and have not been applied previously as such a credit. If less than all of the Bonds are called for optional redemption, the maturities of the Bonds to be redeemed shall be selected by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less than all the Bonds of a particular maturity are called for redemption, the Bonds within such maturity 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 Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds that is obtained by dividing the principal amount of such Bond by $5,000. The City shall cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by facsimile transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to A-2 DTC or its nominee as the registered owner hereof. If a portion of this bond is called for redemption, a new Bond in the principal amount of the unredeemed portion hereof will be issued to the registered owner upon surrender hereof. The full faith and credit of the City are irrevocably pledged for the payment of principal of, premium, if any, and interest on this bond. Unless other funds are lawfully available and appropriated for timely payment of this bond, the City Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all taxable property within the City sufficient to pay when due the principal of, premium, if any, and interest on this bond. The Registrar shall treat the registered owner of this bond as the person or entity exclusively entitled to payment of principal of and interest on this bond and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person or entity shown as the owner on the registration books on the first day of the month preceding each interest payment date. In the event a date for the payment of principal, redemption price, or interest on this bond is not a business day, then payment of principal, redemption price, and interest on, this bond shall be made on the next succeeding day which is a business day, and if made on such next succeeding business day, no additional interest shall accrue for the period after such payment or redemption date. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed, and the issue of Bonds of which this bond is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by the Constitution and statutes of the Commonwealth of Virginia. WIN IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to be signed by its Mayor, to be countersigned by its Clerk, its seal to be affixed hereto, and this bond to be dated the Dated Date stated above. COUNTERSIGNED: (SEAL) Clerk, City of Virginia Beach, Virginia Mayor, City of Virginia Beach, Virginia A-4 ASSIGNMENT FOR VALUE RECEIVED the undersigned sell(s), assign(s) and transfer(s) unto: (Please print or type name and address, including postal 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 of the registered owner as it appears on the front of this bond in every particular, without alteration or enlargement or any change whatsoever. A-5 Requires an affirmative vote by a majority of the members of the City Council. Adopted by the City Council of the City of Virginia Beach, Virginia, this 12th day of May, 2009. APPROVED AS TO CONTENT: - A j,- �(2 Lhj�, Finance Department APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Ofrice CERTIFICATE The undersigned Clerk of the City Council of the City of Virginia Beach, Virginia (the "City Council'), certifies that: 1. A meeting of the City Council was held on May 12, 2009, at the time and place established and :noticed by the City Council, at which the members of the City Council were present or absent as noted below. The foregoing Resolution was adopted by a majority of the members of the City Council, by a roll call vote, the ayes and nays being recorded in the minutes of the meeting as shown below: PRESENT/ABSENT: William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Mayor Glenn R. Davis Bill R. DeSteph Harry E. Diezel Robert M. Dyer Barbara M. Henley John E. Uhrin Ronald A. Villanueva Rosemary Wilson James L. Wood / VOTE: 2. The foregoing Resolution is a true and correct copy of such Resolution as adopted on May 12, 2009. The foregoing Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this day of May, 2009. Clerk, City Council of the City of Virginia Beach, Virginia (SEAL) 18286600 205182.000130 DRAFT 5/1/09 PRELIMINARY OFFICIAL STATEMENT DATED MAY , 2009 NEW ISSUE Ratings: BOOK -ENTRY ONLY (See "Ratings" in Section Two) In the opinion of Bond Counsel, under current law and subject to conditions described in "Tax Exemption" in Section Two, interest on the Bonds (1) will be excludable from gross income for federal income tax purposes, (2) will not be an item of tax preference, nor will it be included in computing adjusted current earnings, for purposes of the federal alternative minimum income tax, and (3) will be exempt from income taxation by the Commonwealth of Virginia. Holders may be subject to other federal tax consequences as described in "Tax Exemption' in Section Two. CITY OF VIRGINIA BEACH, VIRGINIA $72,000,000` GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2009 Dated: Date of Issuance Due: June 1, as shown on the inside cover This Official Statement has been prepared by the City of Virginia Beach, Virginia (the "City"), to provide information on the $72,000,000 General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), the security therefor, the City, the projects being financed with the proceeds of the Bonds and other relevant information. Selected information is presented on this cover page for the convenience of the reader. To make an informed decision regarding the Bonds, a prospective investor should read this Official Statement in its entirety. Security The Bonds will be general obligations of the City for the payment of which its full faith and credit will be irrevocably pledged. The City Council is authorized and required, unless other funds are lawfully available and appropriated for timely payment of the Bonds, to levy and collect on all locally taxable property in the City an annual ad valorem tax over and above all taxes authorized or limited by law and without limitation as to rate or amount sufficient to pay when due the principal of, premium, if any, and interest on the Bonds as the same respectively become due and payable. Redemption The Bonds are subject to optional redemption as summarized on the inside cover and in "Redemption" in Section Two. Purpose The proceeds of the Bonds will be used to provide funding for various public improvements. Interest Rates/Yields See inside cover. Interest Payment Dates June I and December 1, commencing December 1, 2009. Denominations $5,000 or integral multiples thereof. Sale Date and Time 11:30 a.m. Eastern Time, Wednesday, June 3, 2009. Closing/Delivery Date On or about Tuesday, June 16, 2009. Registration Full book -entry only; The Depository Trust Company, New York, New York. Bond Counsel Troutman Sanders LLP, Richmond, Virginia. Financial Advisor Government Finance Associates, Inc., New York, New York Official Statement Dated June _, 2009 Preliminary, subject to adjustment; see "Sale at Competitive Bidding" herein. $72,000,000* CITY OF VIRGINIA BEACH, VIRGINIA GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS SERIES 2009 Serial Bonds June 1 Principal* Interest Maturity Amount Rate 2010 $3,600,000 2011 3,600,000 2012 3,600,000 2013 3,600,000 2014 3,600,000 2015 3,600,000 2016 3,600,000 2017 3,600,000 2018 3,600,000 2019 3,600,000 2020 3,600,000 2021 3,600,000 2022 3,600,000 2023 3,600,000 2024 3,600,000 2025 3,600,000 2026 3,600,000 2027 3,600,000 2028 3,600,000 2029 3,600,000 Price/ CUSIP Yield Number Summary of Optional Redemption Provisions 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 927734 The Bonds maturing on and after June 1, 2020 are subject to redemption at the option of the City, in whole or in part, on any date on or after June 1, 2019 at the redemption price of 100% of the principal amount of the Bonds to be redeemed, plus interest accrued to the redemption date. See "Redemption' in Section Two. * Preliminary, subject to adjustment; see "Sale at Competitive Bidding" herein. CITY OF VIRGINIA BEACH THE CITY COUNCIL* William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Mayor Glenn R. Davis Bill R. DeSteph Harry E. Diezel Robert M. Dyer Barbara M. Henley John E. Uhrin Ronald A. Villanueva Rosemary Wilson James L. Wood CERTAIN CITY OFFICIALS James K. Spore, City Manager Mark D. Stiles, City Attorney Ruth Fraser, City Clerk Patricia A. Phillips, Director of Finance John T. Atkinson, City Treasurer BOND COUNSEL Troutman Sanders LLP Troutman Sanders Building 1001 Haxall Point Richmond, Virginia 23219 FINANCIAL ADVISOR Government Finance Associates, Inc. 590 Madison Avenue, 21 st Floor New York, New York 10022 *See "Elected Officials" in Section Three. ll The Bonds will be exempt from registration under the Securities Act of 1933, as amended. As obligations of apolitical subdivision of the Commonwealth of Virginia, the Bonds will also be exempt from registration under the securities laws of Virginia. No dealer, broker, salesman, or other person has been authorized by the City to give any information to or make any representations with respect to the City, or the Bonds issued thereby, other than those contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. All quotations from and summaries and explanations of provisions of law and documents herein do not purport to be complete, and reference is made to such laws and documents for full and complete statements of their provisions. Any statements made in this Official Statement involving estimates or matters of opinion, whether or not expressly so stated, are intended merely as estimates or matters of opinion, and not as representations of fact. The information and expression of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implications that there has been no change in the affairs of the City since the respective dates as of which information is given herein. 01F.1 61 WO[MI-WhImi SECTION ONE: INTRODUCTION...................................................................................................................1 TheCity....................................................................................................................................................... 1 TheBonds.................................................................................................................................................... 1 Securityfor the Bonds.................................................................................................................................. 2 Useof Proceeds ............................................................................................................................................ 2 Redemption.................................................................................................................................................. 2 TaxExemption ............................................................................................................................................. 2 BondCounsel............................................................................................................................................... 2 FinancialAdvisor......................................................................................................................................... 2 Auditors....................................................................................................................................................... 2 Ratings......................................................................................................................................................... 3 Investment Policies and Practices.................................................................................................................. 3 OfficialStatement......................................................................................................................................... 3 ContinuingDisclosure.................................................................................................................................. 3 AdditionalInformation................................................................................................................................. 3 SECTIONTWO: THE BONDS..........................................................................................................................4 General Description of the Bonds.................................................................................................................. 4 Redemption.................................................................................................................................................. 4 Book -Entry System....................................................................................................................................... 5 Authorization and Purpose of the Bonds........................................................................................................ 5 Security for and Sources of Payment for the Bonds....................................................................................... 5 Estimated Sources and Uses of Funds............................................................................................................ 7 Litigation...................................................................................................................................................... 7 LegalMatters............................................................................................................................................... 7 TaxExemption............................................................................................................................................. 7 Opinionof Bond Counsel.............................................................................................................................. 7 Ratings......................................................................................................................................................... 9 Saleat Competitive Bidding.......................................................................................................................... 9 Certificates of City Officials....................................................................................................................... 10 Legality of the Bonds for Investment........................................................................................................... 10 ContinuingDisclosure................................................................................................................................ 10 iv SECTION THREE: CERTAIN INFORMATION CONCERNING THE CITY OF VIRGINIA BEACH, VIRGINIA..........................................................................................................................................................12 Introduction................................................................................................................................................ 12 CertainElected Officials............................................................................................................................. 12 SchoolBoard.............................................................................................................................................. 13 ElectedOfficials......................................................................................................................................... 13 Certain City Council Appointees and Administrative Staff Members........................................................... 14 AppointedOfficials.................................................................................................................................... 15 Governmental Services and Facilities.......................................................................................................... 15 General Overview of Governmental Organization and Selected Functions ................................................... 18 Functional Departments.............................................................................................................................. 18 Economic and Demographic Factors........................................................................................................... 23 Businessand Industry ................................................................................................................................. 30 RetailSales................................................................................................................................................. 34 Tourismand Conventions........................................................................................................................... 34 Military...................................................................................................................................................... 35 MedicalFacilities....................................................................................................................................... 38 Agribusiness............................................................................................................................................... 38 Education................................................................................................................................................... 38 SECTION FOUR: CITY INDEBTEDNESS AND CAPITAL PLAN...............................................................41 Limitations on Incurrence of Debt............................................................................................................... 41 DebtManagement Policies.......................................................................................................................... 41 OutstandingDebt........................................................................................................................................ 43 GeneralObligation Debt............................................................................................................................. 44 Authorized but Unissued Bonds.................................................................................................................. 46 Water and Sewer System Debt.................................................................................................................... 46 Storm Water Utility System Debt................................................................................................................ 47 Assets Acquired and Financed Under Capital Leases and Other Debt........................................................... 47 Other Appropriation -Based Debt through the Virginia Beach Development Authority ("VBDA") ................ 47 Agricultural Reserve Program..................................................................................................................... 48 OverlappingDebt....................................................................................................................................... 49 Short -Term Borrowing................................................................................................................................ 49 PaymentRecord......................................................................................................................................... 49 Tax Increment Financing............................................................................................................................ 49 Impact of Future Economic Development on City Debt............................................................................... 50 ComprehensivePlan ................................................................................................................................... 51 Capital Improvement Program.................................................................................................................... 52 Prior Year CIPs - Actual Capital Project Expenditures................................................................................. 55 SECTION FIVE: FINANCIAL INFORMATION............................................................................................56 Basis of Accounting and Accounting Structure............................................................................................ 56 City of Virginia Beach Development Authority ........................................................................................... 56 Hampton Roads Transportation District Commission.................................................................................. 57 CityFinancial Statements............................................................................................................................ 57 Investment Policies and Practices................................................................................................................ 58 Certificateof Achievement......................................................................................................................... 58 BudgetaryProcess...................................................................................................................................... 59 Proposed Budget -Fiscal Year 2010.............................................................................................................. 60 General Government Revenues................................................................................................................... 63 GeneralFund.............................................................................................................................................. 63 OperatingData........................................................................................................................................... 64 GeneralFund Operations............................................................................................................................ 68 Interim Financial Statements for Fiscal Year 2009....................................................................................... 71 TheWater and Sewer System...................................................................................................................... 72 TypicalWater and Sewer Bills.................................................................................................................... 74 Operating Results -Water and Sewer System................................................................................................ 74 WaterService Contracts.............................................................................................................................. 77 \9/ Water and Sewer Capital Improvement Program......................................................................................... 77 Insurance.................................................................................................................................................... 78 Commitments and Contingencies................................................................................................................ 78 Retirement and Pension Plans..................................................................................................................... 79 Employee Relations and Collective Bargaining........................................................................................... 80 Southeastern Public Service Authority........................................................................................................ 80 SECTION SIX: MISCELLANEOUS ................................................................................................................82 Delivery..................................................................................................................................................... 82 OfficialStatement....................................................................................................................................... 82 Appendix A — Audited Financial Statements for the Fiscal Year Ended June 30, 2008 Appendix B — Form of Bond Counsel Opinion Appendix C — Form of Continuing Disclosure Agreement Appendix D — Information Regarding The Depository Trust Company and its Book -Entry System Appendix E — Notice of Sale and Bid Form V1 CITY OF VIRGINIA BEACH, VIRGINIA $72,000,000* GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2009 SECTION ONE: INTRODUCTION The purpose of this Official Statement, including the cover page and Appendices, is to furnish information in connection with the sale by the City of Virginia Beach, Virginia (the "City" or "Virginia Beach"), of its $72,000,000 General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), dated the date of their delivery, to be issued in accordance with a resolution adopted by the City Council of the City of Virginia Beach (the "City Council") on May 12, 2009 (the "Resolution"). This information speaks as of its date and is not intended to indicate fixture or continuing trends in the financial or economic position of the City. The following material is qualified in its entirety by the detailed information and financial statements appearing elsewhere in this Official Statement, reference to which is hereby made for all purposes. The City The issuer of the Bonds is the City of Virginia Beach, which is located in the southeastern portion of the Commonwealth of Virginia (the "Commonwealth"). Virginia Beach is the most populous city in the Commonwealth, with a population of 425,257 according to the 2000 U.S. Census and an estimated population in 2008 of 431,451 according to the Weldon Cooper Center of the University of Virginia. Additional information concerning the City can be found in Sections Two, Three, Four and Five. The audited financial statements for the City for the Fiscal Year ended June 30, 2008, are set forth in Appendix A hereto. The Bonds The Bonds consist of $72,000,000* General Obligation Public Improvement Bonds, Series 2009, dated the date of their delivery, maturing annually on June 1 from 2010 through 2029. The Bonds will be held by The Depository Trust Company ("DTC"), or its nominee, as securities depository with respect to the Bonds. Interest on the Bonds will be payable on each June 1 and December 1, commencing December 1, 2009, until maturity. As long as the Bonds are held by DTC or its nominee, interest will be paid to Cede & Co., as nominee of DTC, in same day funds on each interest payment date. The Bonds are subject to optional redemption prior to maturity at the option of the City upon the terms provided in the Resolution and described herein. For further information regarding the Bonds, the book -entry system for the registration and transfer of the Bonds and the optional redemption provisions of the Bonds, see Section Two. * Preliminary, subject to adjustment; see "Sale at Competitive Bidding" herein. Security for the Bonds The Bonds will be general obligations of the City to which the full faith and credit of the City will be pledged for payment. For further information regarding the security for the Bonds, see "Security and Sources of Payment for the Bonds" in Section Two. Use of Proceeds, Proceeds of the Bonds will be used for the purpose of providing funds for various public improvements and paying a portion of the costs of issuance of the Bonds. See "Authorization and Purpose of the :Bonds" in Section Two for a more complete description of the authorization and purpose of the Bonds. Redemption The Bonds maturing on and after June 1, 2020 will be subject to redemption beginning June 1, 2019, in whole or in part at any time, at the option of the City upon payment of 100% of the principal amount thereof to be redeemed plus interest accrued to the redemption date. See "Redemption" in Section Two for a more complete description of the redemption provisions of the Bonds. Tax Exemption Under current law, interest on the Bonds will be exempt or excludable from income taxation by the Commonwealth of Virginia and the United States of America. See "Tax Exemption" in Section Two for a more complete description of the significant elements of the federal and state income tax status of interest on the Bonds. Bond Counsel Troutman Sanders LLP, Richmond, Virginia, serves as Bond Counsel to the City in connection with the issuance of the Bonds. The opinion of Bond Counsel will be dated and given on, and will speak only as of, the date of issuance and delivery of the Bonds. The proposed form of Bond Counsel's opinion is attached as Appendix B. The scope of engagement of Bond Counsel does not extend to passing upon or assuming responsibility for the accuracy or adequacy of any statements made in this Official Statement other than matters expressly set forth in the opinion of Bond Counsel. Bond Counsel makes no representation that it has independently verified the same. Financial Advisor Government Finance Associates, Inc. serves as an independent financial advisor to the City in connection with the issuance of the Bonds. The financial advisor's fee for services rendered with respect to the sale of the Bonds is not contingent upon the issuance and delivery of the Bonds. Auditors The City's financial statements for the Fiscal Year ended June 30, 2008 are attached as Appendix A to this Official Statement and have been audited by the independent public accounting firm of Cherry, Bekaert & Holland, L.L.P. These financial statements, together with the related Notes to Financial Statements, are intended to provide a broad overview of the financial position and operating results of the 2 City's governmental activities, business -type activities and major funds. Such financial statements have been included in reliance upon the report of Cherry, Bekaert & Holland, L.L.P., who will not be reviewing any matters in connection with the issuance of the Bonds. Ratings The City has applied for ratings from Fitch Ratings, One State Street Plaza, New York, New York 10004, Moody's Investors Service, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, and Standard & Poor's Public Finance Ratings, 55 Water Street, New York, New York 10041, as shown on the front cover. See "Ratings" in Section Two for a more complete description of the ratings. Investment Policies and Practices The City, as a political subdivision of the Commonwealth, is limited to investments permitted by Section 2.2-4500 et seq. of the Code of Virginia of 1950, as amended. In addition, various bond resolutions further restrict the types of allowable investments. The City's investment practices are generally described in footnote 7 of the City's financial statements, attached as Appendix A. More detail on the City's investment practices is provided in Section Five. Official Statement This Official Statement has been approved and authorized by the City for use in connection with the sale of the Bonds. Its purpose is to supply information to prospective buyers of the Bonds. Financial and other information contained in this Official Statement has been prepared by the City from its records, except where other sources are noted. The information is not intended to indicate future or continuing trends in the financial or economic position of the City. Continuing Disclosure The City has agreed to execute a Continuing Disclosure Agreement at closing to assist the successful bidder in complying with the provisions of Rule 15c2-12 (the "Rule 15c2-12"), promulgated by the Securities and Exchange Commission (the "SEC") and as in effect on the date hereof, by providing annual financial information and material event notices required by Rule 15c2-12. See "Continuing Disclosure" in Section Two and see the proposed form of the Continuing Disclosure Agreement attached as Appendix C. Additional Information Any questions concerning the contents of this Official Statement should be directed to the following: Department of Finance, Municipal Center, Virginia Beach, Virginia, 23456 (757) 385-4681; or the City's financial advisor, Government Finance Associates, Inc. (212) 521-4090. SECTION TWO: THE BONDS General Description of the Bonds The Bonds will be issued in the aggregate principal amount of $72,000,000% will be dated the date of their issuance and delivery, and will mature on June 1 from 2010 through 2029, as shown on the inside cover page. The Bonds will be registered as to principal and interest in the name of Cede & Co., as nominee for DTC, or otherwise as hereinafter described. Beneficial ownership interests in -the Bonds will be available only in book -entry form. Beneficial Owners (as hereinafter defined) will not receive physical bond certificates representing their interests in the Bonds purchased. So long as DTC or its nominee is the registered owner of the Bonds, references in this Oficial Statement to the owners of the Bonds shall mean DTC or its nominee and shall not mean the Beneficial Owners. The Resolution contains provisions applicable to periods when DTC or its nominee is not the registered owner. As long as the Bonds are held by DTC or its nominee, interest will be paid to Cede & Co., as nominee of DTC, in same day funds on each interest payment date. Interest on the Bonds will be payable on December 1, 2009, and on each June 1 and December 1 thereafter until maturity by check or draft mailed to the registered owners at their addresses as they appear on the registration books on the May 15 and November 15 immediately preceding each interest payment date. If such interest payment date is not a business day, such payment will be made on the next succeeding business day with the same effect as if made on the interest payment date, and no additional interest will accrue. The registration books are kept by the City Treasurer, who has been appointed paying agent and registrar (the "Registrar"). Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. Redemption Optional Redemption. The Bonds maturing on or before June 1, 2019, are not subject to redemption prior to maturity. The Bonds maturing on or after June 1, 2020, are subject to redemption beginning June 1, 2019, in whole or in part (in any multiple of $5,000) at any time, at the option of the City, upon payment of 100% of the principal amount of the Bonds to be redeemed plus interest accrued and unpaid to the date fixed for redemption. Selection of Bonds for Redemption. If less than all of the Bonds are called for optional redemption, the maturities of the Bonds to be redeemed shall be selected by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less than all of the Bonds of a particular maturity are called for redemption, DTC or any successor securities depository will select the Bonds to be redeemed pursuant to its rules and procedures or, if the book -entry system is discontinued, the Bonds to be redeemed will be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, each portion of the $5,000 principal amount is counted as one Bond for such purpose. If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed portion shall be issued to the registered owner upon the surrender thereof. Notice of Redemption. The City will cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by facsimile transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner thereof. The City shall not be responsible for mailing notice of redemption to anyone other than DTC or another qualified securities depository or its nominee unless no qualified securities * Preliminary, subject to adjustment; see "Sale at Competitive Bidding" herein. 4 depository is the registered owner of the Bonds. If no qualified securities depository is the registered owner of the Bonds, notice of redemption shall be mailed to the registered owners of the Bonds. Book -Entry System A description of DTC, of procedures and record keeping on beneficial ownership interests in the Bonds, payment of interest and other payments on the Bonds to DTC Participants (as hereinafter defined) or to Beneficial Owners, confirmation and transfer of beneficial ownership interests in the Bonds and other transactions by and between DTC, DTC Participants and Beneficial Owners is attached as Appendix D and is based on information furnished by DTC. Authorization and Purpose of the Bonds The Bonds were authorized by ordinances adopted by the City Council on May 9, 2006, May 15, 2007 and May 13, 2008, and by the Resolution adopted on May 12, 2009. The Bonds will be issued pursuant to the Resolution and the Constitution and statutes of the Commonwealth, including the Charter of the City of Virginia Beach (Chapter 147, Acts of Assembly of 1962, as amended) and the Public Finance Act of 1991 (Chapter 26, Title 15.2, Code of Virginia of 1950, as amended) (the "Act"). Of the aggregate principal amount of the Bonds, $7,402,593 represents a portion of $63,800,000 of bonds that were authorized by an ordinance adopted by the City Council on May 9, 2006, and subsequently reduced to $59,800,000 by an ordinance adopted by the City Council on May 15, 2007 without being submitted to the qualified voters of the City (the "2006 Charter Bonds"), to provide funds, together with other funds that may be available, for the various public improvements, including schools, roadways, economic and tourism and building projects. After this sale, the City will have no authorized but unissued balance of 2006 Charter Bonds. Of the aggregate principal amount of the Bonds, $57,449,295 represents a portion of $63,800,000 of bonds that were authorized by an ordinance adopted by the City Council on May 15, 2007, without being submitted to the qualified voters of the City (the "2007 Charter Bonds"), to provide funds, together with other funds that may be available, for the various public improvements, including schools, roadways, coastal, economic and tourism, building and parks and recreation projects. After this sale, the City will have no authorized but unissued balance of 2007 Charter Bonds. Of the aggregate principal amount of the Bonds, $7,148,112' represents a portion of $68,700,000 of bonds that were authorized by an ordinance adopted by the City Council on May 13, 2008, without being submitted to the qualified voters of the City (the "2008 Charter Bonds"), to provide funds, together with other funds that may be available, for the various public improvements, including schools, roadways, economic and tourism and building projects. After this sale, the City will have an authorized but unissued balance of $61,551,888 remaining from the 2008 Charter Bonds. Proceeds of the Bonds will be used for the purpose of providing funds for various public improvements and paying a portion of the costs of issuance related to the Bonds. Security for and Sources of Payment for the Bonds Pledge of Full Faith and Credit. The Bonds will be general obligations of the City, and the full faith and credit of the City are irrevocably pledged to payment of principal of and interest on the Bonds. The Resolution provides that the City Council will, in each year while any of the Bonds are outstanding, Subject to change based upon the final principal amount of the Bonds; see "Sale at Competitive Bidding" herein. 5 levy and collect an ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to the rate or amount, upon all property in the City subject to local taxation, sufficient to pay the principal of and interest on the Bonds as the same shall come due, unless other funds are lawfully available and appropriated for timely payment of the Bonds. Bondholders' Remedies in the Event of Default. Section 15.2-2659 of the Virginia Code provides that upon affidavit filed with the Governor of Virginia by or on behalf of any owner of a general obligation bond, or by any paying agent therefor, in default as to payment of principal or interest, the Governor shall :immediately conduct a summary investigation. If it is established to the Governor's satisfaction that payment of the bond or interest thereon is in default, the Governor shall order the State Comptroller to withhold all funds appropriated and payable by the Commonwealth to the political subdivision so in default and apply the amount so withheld to payment of the defaulted principal and interest. Section 15.2-2659 also provides for notice to the registered owners of such bonds of the default and the availability of withheld funds. The State Comptroller advises that to date no order to withhold funds pursuant to Section 15.1-227.61 or Section 15.1-225, the predecessor provisions of 15.2-2659, has ever been issued. Although Section 15.2-2659 has not been approved by a Virginia Court, the Attorney General of Virginia has ruled that appropriated funds may be withheld by the Commonwealth pursuant to its predecessor section. In the Fiscal Year ending June 30, 2008, the Commonwealth provided $139,419,352 to the City, not including its discretely presented component units, of which $88,965,684 was deposited in the City's General Fund. Neither the Bonds nor the proceedings with respect thereto specifically provide any remedies to Bondholders if the City.defaults in the payment of principal of or interest thereon, nor do they contain any provision for the appointment of a trustee to enforce the interest of the Bondholders upon the occurrence of such a default. Upon any default in the payment of principal or interest, a Bondholder could, among other things, seek to obtain from an appropriate court a writ of mandamus requiring the City Council to levy and collect taxes as described above. The mandamus remedy, however, may be impracticable and difficult to enforce. Furthermore, the right to enforce payment of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and similar laws and equitable principles, which may limit the specific enforcement of certain remedies. Chapter 9 of the United States Bankruptcy Code (the "Bankruptcy Code") permits a municipality such as the City, if insolvent or otherwise unable to pay its debts as they become due, to file a voluntary petition for the adjustment of debts provided that such municipality is "specifically authorized, in its capacity as a municipality or by name, to be a debtor...." Bankruptcy Code, Section 109(c)(2). Current Virginia statutes do not expressly authorize the City or municipalities generally to file for bankruptcy under Chapter 9. Chapter 9 does not authorize the filing of involuntary petitions against municipalities such as the City. Bankruptcy proceedings by the City could have adverse effects on Bondholders including (a) delay in the enforcement of their remedies, (b) subordination of their claims to claims of those supplying goods and services to the City after the initiation of bankruptcy proceedings and to the administrative expenses of bankruptcy proceedings, and (c) imposition without their consent of a reorganization plan reducing or delaying payment of the Bonds. The Bankruptcy Code contains provisions intended to ensure that, in any reorganization plan not accepted by at least a majority of a class of creditors such as the holders of general obligation bonds, such creditors will have the benefit of their original claims or the "indubitable equivalent." The effect of these and other provisions of the Bankruptcy Code cannot be predicted and may be significantly affected by judicial interpretations. 31 Estimated Sources and Uses of Funds The proceeds of the Bonds, exclusive of other available funds of the City, are to be used as follows: Sources of Funds: Par Amount of Bonds $ Net Original Issue Premium Total Sources of Funds $ Uses of Funds: Project Costs $ Underwriter's Compensation Total Uses of Funds $ Litigation Concernine the Bonds. According to the City Attorney, there is no litigation of any kind now pending or, to the best of his information, knowledge and belief, threatened against the City to restrain or enjoin the issuance or delivery of the Bonds or in any manner questioning the proceedings and authority under which the Bonds are issued or affecting the ability of the City to levy or collect ad valorem taxes without limitation as to rate or amount for the payment of the principal of or interest on the Bonds. General Fund. The City is a named defendant in various litigation matters filed by parties concerning alleged personal injuries, property damage and other causes of action which are being vigorously defended by the City. In the opinion of the City Attorney, none of the pending litigation, if decided adversely to the City, would materially affect the City's financial position. Legal Matters Certain legal matters relating to the authorization and validity of the Bonds will be subject to the approving opinion of Troutman Sanders LLP, Richmond, Virginia, as Bond Counsel, which will be fiunished at the expense of the City upon delivery of the Bonds, in substantially the form set forth as Appendix B. Bond Counsel's opinion will be limited to matters relating to authorization and validity of the Bonds and to the tax-exempt status of interest thereon as described below in the section `Tax Exemption." Bond Counsel has not been engaged to investigate the financial resources of the City or its ability to provide for payment of the Bonds. Bond Counsel's opinion will make no statement as to such matters or as to the accuracy or completeness of this Official Statement or any other information that may have been relied on by anyone in making the decision to purchase Bonds. Tax Exemption _Opinion of Bond Counsel The scope of engagement of Bond Counsel does not extend to passing upon or assuming responsibility for the accuracy or adequacy of any statements made in this Official Statement other than matters expressly set forth in Bond Counsel's opinion, and Bond Counsel makes no representation that it has independently verified the same. The opinion of Bond Counsel will be dated and given on, and will speak only as of, the date of issuance and delivery of the Bonds. 7 In the opinion of Bond Counsel, under current law, interest on the Bonds, including OID, as described in "Original Issue Discount" below, (a) will not be included in gross income for federal income tax purposes, (b) will not be an item of tax preference, nor will it be included in computing adjusted current earnings, for purposes of the federal alternative minimum income tax and (c) will be exempt from income taxation by the Commonwealth. No other opinion is expressed by Bond Counsel regarding the tax consequences of the ownership of or the receipt or accrual of interest on the Bonds. Bond Counsel's opinion will be given in reliance upon certifications by representatives of the City as to certain facts relevant to both the opinion and the requirements of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations thereunder, and is subject to the condition that there is compliance subsequent to the issuance of the Bonds with all requirements of the Code that must be satisfied in order for interest thereon to remain excludable from gross income for federal income tax purposes. The City has covenanted to comply with the current provisions of the Code regarding, among other matters, the use, expenditure and investment of the proceeds of the Bonds and the timely payment to the United Staters of any arbitrage rebate amounts with respect to the Bonds. Failure by the City to comply with such covenants, among other things, could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to their date of issue. Original Issue Premium. Bonds purchased, whether upon issuance or otherwise, for an amount (excluding any amount attributable to accrued interest) in excess of their principal amount will be treated for federal income tax purposes as having amortizable bond premium. A holder's basis in such a Bond must be reduced. by the amount of premium which accrues while such Bond is held by the holder. No deduction for such amount will be allowed, but it generally will offset interest on the Bonds while so held. Prospective purchasers of such Bonds should consult their own tax advisors as to the calculation, accrual and treatment of amortizable bond premium and the state and local tax consequences of holding such Bonds. Oriainal Issue Discount. The initial public offering prices of the Bonds maturing in the years (the "OID Bonds") will be less than their stated principal amounts. In the opinion of Bond Counsel, under current law, the difference between the stated principal amount and the initial offering price of each maturity of OID Bonds to the public (excluding bond houses and brokers) at which a substantial amount of such maturity of such Bonds is sold will constitute original issue discount ("OID"). The offering prices set forth on the inside cover of this Official Statement for the OID Bonds are expected to be the initial offering prices to the public at which a substantial amount of each maturity OID Bonds are sold. Under the Code, for purposes of determining a holder's adjusted basis in an OID Bond, OID treated as having accrued while the holder holds the Bond will be added to the holder's basis. OID will accrue on a constant yield -to -maturity method. The adjusted basis will be used to determine taxable gain or loss upon the sale or other disposition (including redemption or payment at maturity) of an OID Bond. Prospective purchasers of OID Bonds should consult their own tax advisors as to the calculation of accrued OID and the state and local tax consequences of owning or disposing of such Bonds. Other Tax Matters. In addition to the matters addressed above, prospective purchasers of the Bonds should be aware that the ownership of tax-exempt obligations may result in collateral federal income tax consequences to certain taxpayers, including without limitation financial institutions, property and casualty insurance companies, S corporations, foreign corporations subject to the branch profits tax, recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of the Bonds should consult their tax advisors as to the applicability and impact of such consequences. Prospective purchasers of the Bonds also should consult their own tax advisors as to the status of interest on the Bonds under the tax laws of any state other than Virginia. From time to time, there are legislative proposals in the Congress of the United States and in the states that, if enacted, could alter or amend the federal and state tax matters referred to above or adversely affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether if enacted it would apply to bonds issued prior to enactment. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the value or marketability of the Bonds would be impacted thereby. Ratings Fitch Ratings, One State Street Plaza, New York, New York 10004, Moody's Investors Service, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, and Standard & Poor's Public Finance Ratings, 55 Water Street, New York, New York 10041, have given the Bonds the ratings of ",1146 "" and "" respectively. The City requested that the Bonds be rated and furnished certain information to Fitch, Moody's and Standard & Poor's, including certain information that may not be included in this Official Statement. Reference should be made to the individual rating agency for a fuller description of the meaning of the rating assigned by such rating agency. These ratings are not a recommendation to buy, sell or hold the Bonds. The ratings are subject to review and change or withdrawal at any time if, in the judgment of the respective rating agency, circumstances so warrant. There is no assurance that any such ratings will continue for any period of time or that they will not be revised or withdrawn. A downward revision or withdrawal of a rating may have an adverse effect on the market price of the Bonds. Sale at Competitive Bidding The Bonds will be offered for sale at competitive bidding at 11:30 a.m., Eastern Time, on June 3, 2009. A copy of the Official Notice of Sale and a copy of the Official Bid Form are attached to this Preliminary Official Statement as Appendix F. As set forth in the Official Notice of Sale, after the Bonds have been awarded to the winning bidder, the principal amount of the Bonds may be increased or decreased at the City's election by an amount not to exceed 10% of the principal amount of the Bonds set forth on the cover page of this Preliminary Official Statement. Any such adjustment in the principal amount of the Bonds will be communicated to the winning bidder following the award, but not later than 5:00 p.m. on the date of award. After the Bonds have been awarded to the winning bidder, the City will issue an Official Statement in final form to be dated June 3, 2009. The City will deem the Official Statement final as of its date, and the Official Statement in final form will include, among other things, the identity of the winning bidder, the final principal amount as adjusted, the expected selling compensation to the winning bidder and other information on the interest rates and offering prices or yields, all as provided by the winning bidder. 0 Certificates of City Officials Concurrently with the delivery of the Bonds, the City will furnish to the successful bidder (a) a certificate dated the date of delivery of the Bonds, signed by the appropriate City officials and stating that no litigation of any kind is then pending or, to the best of their information, knowledge and belief, threatened against the City to restrain or enjoin the issuance or delivery of the Bonds or the levy or collection of ad valorem taxes, over and above all other taxes authorized or limited by law and without limitation as to rate or amount on all locally taxable property within the City sufficient to pay when due the principal of or interest on the Bonds, or in any manner questioning the proceedings and authority under which the Bonds are issued, and (b) a certificate dated the date of delivery of the Bonds, stating that the descriptions and statements in this Official Statement (except in Appendix D, in the section above entitled "Tax Exemption," in the section above entitled "Litigation," and in the information as to prices/yields and CUSIP numbers on the inside cover page), on the date of this Official Statement and on the date of delivery of the Bonds, were and are true and correct in all material respects, did not and do not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such descriptions and statements, in light of the circumstances under which they were made, not misleading, and that no material adverse change has occurred in the financial condition of the City between the date of this Official Statement and the date of delivery of the Bonds other than as contemplated in this Official Statement. Such certificate will also state, however, that such City officials did not independently verify the information indicated in this Official Statement as having been obtained or derived from sources other than the City and its officers, but that they have no reason to believe that such information is not accurate. The City Attorney also will fixrnish to the successful bidder concurrently with the delivery of the Bonds a certificate dated the date of delivery of the Bonds, stating that the statements in the section above entitled "Litigation" on the date of this Official Statement and on the date of delivery of the Bonds were and are true and correct in all material respects and did not and do not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such statements, in light of the circumstances under which they were made, not misleading. Legality of the Bonds for Investment The Act provides that bonds issued by the City under the Act are obligations in which public officers and bodies of the Commonwealth, counties, cities and towns and municipal subdivisions of the Commonwealth, insurance companies and associations, savings banks, savings institutions, savings and loan associations, trust companies, beneficial and benevolent associations, administrators, guardians, executors, trustees and other fiduciaries in the Commonwealth may properly and legally invest funds under their control. Continuing Disclosure To assist the winning bidder in complying with the provisions of Rule 15c2-12, the City has agreed to execute a continuing disclosure agreement to provide certain annual financial information and material event notices required by Rule 15c2-12 (collectively, "Continuing Disclosure"). A form of that agreement is attached as Appendix C. As set forth in Appendix C, such undertaking requires the City to provide only limited information at specified times and does not require it to disclose all information that may affect the value of the Bonds. The City may choose to make additional information available from time to time, but has no obligation to do so. The City has never failed to comply in all material respects 10 with any previous undertakings with regard to Rule 15c2-12 to provide certain annual financial information and material event notices. The City is required to file its annual Continuing Disclosure with or for the benefit of each nationally recognized municipal securities information repository ("NRMSIR") and with any state information depository ("SID") created in Virginia. No SID has been created for Virginia. The City is required to file any material event notice with (1) each NRMSIR or the Municipal Securities Rulemaking ("MSRB") Board and (2) any Virginia SID. As described more fully in Appendix C, any Bondholder may take steps to enforce the obligation of the City to provide Continuing Disclosure, but any failure by the City under its obligation will not result in an event of default under the Bonds. Investors and other interested parties may contact any NRMSIR for additional information concerning its services. The City makes no representation as to the scope of the services provided to the secondary market by any NRMSIR or as to the costs for the provision of such services by any NRMSIR. As indicated in Appendix C, the City is permitted to make filings solely through the Texas Municipal Advisory Council (the "MAC") as provided at www.disclosureusa.org unless the SEC withdraws the interpretive advice in its letter to the MAC dated September 7, 2004. New Central Filing Repository. On December 8, 2008, the SEC approved an amendment to Rule 15c2-12 designating the MSRB as the sole central repository for Continuing Disclosure by state and local government debt issuers. Under a separate MSRB rule change, the MSRB designated its Electronic Municipal Market Access ("EMMA") system as the system to be used for Continuing Disclosures filings. The SEC and MSRB rule changes take effect on July 1, 2009, after which date the City will file all Continuing Disclosure using the EMMA system. Bondholders will be able to access Continuing Disclosure filings with the MSRB at www.emma.msrb.org. 11 SECTION THREE: CERTAIN INFORMATION CONCERNING THE CITY OF VIRGINIA BEACH, VIRGINIA Introduction The present City of Virginia Beach, Virginia was formed on January 1, 1963, by the merger of Princess Anne County and the former smaller City of Virginia Beach. This merger created one of the largest cities in the Commonwealth of Virginia with an area of 310 square miles and 38 miles of shore- line on the Atlantic Ocean and the Chesapeake Bay. The City covers the entire eastern border of Virginia south of the Delmarva Peninsula and includes all of the area from the Chesapeake Bay to the North Carolina border. The City has the largest population of any city in Virginia with a population of 425,257 according to the 2000 U.S. Census and an estimated population in 2008 of 431,451 according to the Weldon Cooper Center of the University of Virginia. As a city on the eastern seaboard, Virginia Beach has always been known as a resort community. The strength of the City's economy, however, lies in its diversification. Construction/real estate, light industry, "high-tech" services, wholesale and retail sales, agriculture, four major military biases, and resort and convention trade are the major aspects of the economy. The City encourages and supports this diversification. Virginia Beach is an independent, full-service city with sole local governmental taxing power within its boundaries. It derives its governing authority from its City Charter granted by the General Assembly of the Commonwealth of Virginia. The governing body of the City is the City Council, which formulates policies for the administration of the City. The current City Charter provides for a Council - Manager form of government. There is no overlapping debt or taxing powers with other political subdivisions. The water and sewage systems are operated on a self-supporting basis. The Executive Offices are located at the Municipal Center, Virginia Beach, Virginia 23456 (757) 3854242. The telephone number for the Finance Department is (757) 385-4681. Certain Elected Officials The City operates under the Council -Manager form of government as established by its City Charter. There is an 11 -member City Council vested with local legislative powers. Each member of the City Council is elected on an "at large" basis; however, seven seats must be filled by individuals who reside in the seven residence districts of the City. The City Charter was amended in 1995 to provide that the City's seven boroughs would be replaced by these approximately equally populated residence districts. There its no district residency requirement for the remaining four seats. The Mayor is elected by the voters and occupies one of these four seats. The City Council elects a Vice -Mayor from among its members. All members of the City Council are elected for four-year terms. The City Manager is the administrative head of the municipal government and carries out the policies of the City Council. The City Manager is appointed by the City Council and serves at the pleasure of the City Council. The City Council also appoints members to certain boards, commissions, and authorities as it deems necessary to the operation of the City. 12 School Board The School Board is made up of 11 members. Seven seats must be filled on the School Board by individuals who reside in the seven respective residence districts of the City but each of the eleven elected School Board members are elected by the voters of the City at large. The School Board members serve four-year terms. The School Board exercises all of the powers conferred and performs all of the duties imposed upon them by general law. Elected Officials William D. Sessoms, Jr., Mayor Since 2005, President of TowneBank, Virginia Beach. Elected to City Council in 1988, serving as Vice Mayor from 1992 to 2002. Re-elected to City Council as Mayor in 2008. Graduate of First Colonial High School and Virginia Commonwealth University. Louis R. Jones, Vice Mayor Owner and operator of Hollomon-Brown Funeral Homes, Inc. Elected to City Council in 1982 and served as Mayor from 1982 to 1984. Re-elected to City Council in 1990, 1994, 1998, 2002 and 2006. Served as Vice Mayor November, 2002 to 2004, 2004-2006, 2006-2008 and now serving 2009-2010. Bachelor of Science degree in Business Administration from The College of William and Mary, Norfolk Division (now Old Dominion University). Bill R. DeSteph, Councilman President and Chief Executive Officer of DeSteph Enterprises. Retired U.S. Naval Officer. Elected to City Council in 2006. Bachelor of Science degree from the University of Maryland. Harry E. Diezel, Councilman Former Fire Chief of Virginia Beach, retiring in 1997 after 23 years of service. Appointed to City Council December 17, 2002, and elected to a four-year term in 2004 and 2008. Attended Randolph - Macon College and American University. Associate of Arts and Sciences degree from Tidewater Community College. Glenn R. Davis, Councilman President of Comverge, Inc. Elected to the City Council in 2008. Attended George Mason University and is a Sorensen Fellow in the University of Virginia Political Leaders Program and was accepted into the MIT Entrepreneurial Program, Class 2010. Robert M. Dyer, Councilman Administrative Dean and Associate Professor, School of Government, at Regent University. Elected to City Council in 2004 and re-elected in 2008. Bachelor of Science degree in Physical Therapy from Saint Louis University, Master of Public Administration degree from Fairleigh Dickinson University and a Ph.D. in Organizational Leadership from Regent University. 13 Barbara M. Henle, Councilwoman Partner, Henley Farms, LP. Elected to the City Council 1978-1990, during which time she served as Vice Mayor from 1982 to 1984. Re-elected to the City Council 1994-2002 and 2006. Bachelor of Science degree in Elementary Education from Old Dominion University and a Masters in Urban Studies from Old Dominion University. John E. Uhrin, Councilman Since 1991, Director of Operations for Burlage Management, currently overseeing the operation of six hotels. Elected to City Council in 2006. He attained his Bachelor's Degree in Business Administration with a concentration in Marketing and Finance from Old Dominion University. Ronald A. Villanueva, Councilman Executive Vice President and Partner of SEK Solutions LLC. Elected to City Council in 2002 and re-elected in 2006. Bachelor of Arts degree in Political Science with a Minor in Professional and Technical Writing from Old Dominion University. Rosemary Wilson, Councilwoman Realtor with Prudential Towne Realty and former Virginia Beach school teacher as well as School Board member. Elected to City Council in 2000 and re-elected in 2004 and 2008. Bachelor of Science degree in Education from Old Dominion University. James L. Wood, Councilman Vice President of J D & W, Inc., a commercial general contracting firm. Elected to City Council in 2002 and re-elected in 2006. Bachelor of Science degree "with special attainments in commerce" from Washington and Lee University. Certain City Council Appointees and Administrative Staff Members The City Manager is responsible for planning, organizing, directing, and coordinating all activities of the City. The City Manager is also responsible for appointing and discharging all City employees and officers, though responsibilities may be delegated to subordinates. A major responsibility of the City Manager is the preparation of the annual City Operating Budget and Capital Improvement Program. The City Attorney has management, charge, and control of all legal business of the City. The City Attorney is chief legal advisor to the City Council, the City Manager, and all City departments and agencies. It is the duty of the City Attorney to advise the City Council concerning the legality of actions by the City and to represent the City in all matters affecting its interest. It is the responsibility of the Real Estate Assessor's Office annually to appraise all real property in the City. In addition, this office administers the Land Use Assessment Program for qualifying farm and forest lands and processes the Tax Relief for the Elderly and Disabled Program for qualifying senior citizens and disabled persons. The City Clerk's Office is responsible for recording and maintaining all legislative documents and actions of the City Council; preparing and monitoring the legislative budgets; and compiling annual 14 financial disclosures for City Council and members of City Boards and Commissions. The City Clerk's Office also serves as liaison for all Sister City activities. Appointed Officials James K. Spore, City Manager City Manager since November 25, 1991. Previously served as City Manager of Garland, Texas (1985 to 1991), and Burnsville, Minnesota (1981 to 1985). Also served as the Director of Community Development for the City of Lakewood, Colorado (1976 to 1981), and the City of Elgin, Illinois (1970 to 1976). Master of Public Administration degree, University of Colorado, Boulder; and Bachelor and Master of Urban Planning degrees, University of Illinois, Urbana. Mark D. Stiles, City Attorney Appointed City Attorney effective March 1, 2009. Served in City Attorney's Office since 1999 in roles including Deputy City Attorney for Litigation, Senior Litigation Attorney and Associate City Attorney. Employed as associate with the law firm of Willcox & Savage, P.C. from 1989 until 1999. Bachelor of Arts degree from West Virginia University (1986) and Juris Doctor degree from Washington & Lee University (1989). Ruth Fraser, City Clerk City Clerk since January 1, 1979. Master Municipal Clerk, Bachelor of Arts degree in Administration from Potomac State College of West Virginia University. David L. Hansen, Deputy City Manager Deputy City Manager since April 3, 2006. Previously Chief Financial Officer and Resource Manager for the U.S. Army's Training and Doctrine Command at Fort Monroe. Held positions as CEO, commanding officer and district engineer of the Army Corps of Engineers Norfolk district. Director of Public Works for Fort Eustis and Fort Story. Senior trainer at the Army's National Training Center. Battalion commander in the Vt Cavalry Division and executive officer to the Director of the Army budget at the Pentagon. Bachelor of Science degree in Business Administration and Accounting from the University of Central Florida. Master in Business Administration and Contracting from the Florida Institute of Technology. Master of Science degree in Strategic Studies and Logistics from the Industrial College of the Armed Forces. Patricia A. Phillips, Director of Finance Director of Finance since April 16, 1992. Previously served as Director of the Office of Research and Strategic Analysis from 1975 to 1992. Also served as a public accountant for Coopers and Lybrand from 1970 through 1975. Bachelor of Science degree in Business Administration, Magna Cum Laude, Old Dominion University. Master in Business Administration degree, Old Dominion University. Certified Public Accountant since 1972. Governmental Services and Facilities The City provides general governmental services for its citizens including police and fire protection, emergency medical services, collection and disposal of refuse, water and sewer services, parks and recreation, libraries/culture, and maintenance of streets and highways. Other services provided by the 15 City, which services are partially funded by the Commonwealth, include public education in grades kindergarten through twelfth, and certain technical and special education, mental health assistance, health and social services, agricultural services, and judicial activities. The City's main municipal complex includes eight general administrative buildings, a school administration building, a public safety building, a city jail and a judicial complex. In close proximity are a City garage complex, a highway maintenance facility, a public utilities operational maintenance facility, a waste management facility and a farmer's produce market. There are four police precincts, one Law Enforcement Training Academy, 19 fire stations, one firelemergency medical services training center, one central library together with eight area libraries and two satellite library facilities, 204 c%veloped city parks, and 89 public educational facilities located throughout the City. Some of the other major facilities provided by the City include a convention center, the Virginia Aquarium and Marine Science Center, six recreational centers, a tennis complex, five municipal golf courses, a 6,000 seat multipurpose sports stadium and an amphitheater, which books approximately 40 entertainment events per year. The City provides a comprehensive range of public services characteristic of its position as the most populous city in the Commonwealth. 16 City of Virginia Beach — Organizational Chart School Board ,School Ome atina UDiA Instruction Administration, Attendance and Health Pupil Transportation Operations and Maintenance City Auditor Deputy City Manager Human Resources Human Services Parks and Recreation Public Libraries Public Health Office of Volunteer Resources Media and Communication Group Organization Development Office Citizens City Council Deputy City Manager Communications and Information Technology Finance Management Services Public Works Public Utilities 17 Constitutional Officers City Treasurer Commissioner of the Revenue Clerk of the Circuit Court ... Sheriff Commonwealth Attorney State Aaencies ••••••• Courts • • • • • General Registrar Magistrate Juvenile Probation City Manager Deputy City Manager Agriculture Convention and Visitor Bureau Economic Development Planning & Community Development Museums Housing & Neighborhood Preservation Office of Cultural Affairs Police Fire Emergency Medical Services Emergency Communications & Citizen Services General Overview of Governmental Organization and Selected Functions Over the last sixteen years, the City government structure has evolved to respond to the challenges of increased demand for quality service, infrastructure needs, potential reductions in state and federal funding and a slowdown in population and revenue growth. In 1991, a Management Leadership Team ("MLT") was established to assist the City Manager with identifying and resolving organizational issues. The MLT continues to evolve to meet the changing needs of the community and the organization. The MLT includes the City Manager and three Deputy City Managers. The MLT oversees the integration and alignment of the organization toward City Council's vision and annual goals. In 1995, the City created Strategic Issue Teams to focus on City Council's vision and direction. Six business areas were identified: Economic Vitality, Safe Community, Quality Physical Environment, Quality Education for Lifelong Learning, Cultural and Recreational Opportunities and Family and Youth Opportunities. A. seventh area was identified by City Council in 2002 and named Quality Organization. These Strategic Issue Teams focus on the government organization as a quality -driven service provider delivering cost-effective services. As a result of the planning by the Strategic Issue Teams, "Community for a Lifetime: A Strategy to Achieve City Council's Vision for the Future" was published in August 1998 and outlined the organization's long-range goals. In October 2002, City Staff developed a "3 -Year Plan" entitled "From Vision to Reality." This plan brings together the strategic direction and City Council's annual priorities. In 2008 a new strategic plan was published, incorporating Council's annual goals and three year staff strategic initiatives. In April 1999, the City was recognized for its efforts by receiving the Medallion Award from the 1998 U.S. Senate Productivity and Quality Award in the public sector category for the Commonwealth. In 2000, the City was rated one of the five best -managed cities in the nation in a Syracuse University/Governing Magazine research study. The Reason Public Policy Institute ranked the City the eighth most efficiently run largest city in the nation (2001). In 2003, USA Weekend named the City the best place to live, In 2004, the National Policy Research Council ranked the City fourth for the quality of local government:, 13th for public safety, 16th for business climate and 20th for health and welfare in its "America's Best Cities and States" report. In 2006, Money Magazine ranked the City as "Among the ten best big cities in America". In 2008, Forbes Magazine named Virginia Beach as the 6`b best City to "Ride out the Recession". The Small Business Administration Office of Advocacy, named the Virginia Beach MSA as the #1 place in the U.S. for high impact funis for jobs and growth. Fortune Small Business ranked Virginia Beach 14'h out of the top 100 cites in the U.S. to live and launch a business. Functional Departments The Department of Agriculture provides educational and resource services in agriculture, home economics, money management, 4-11, and community resource development. The department has three major divisions. The Virginia Beach Cooperative Extension Office offers educational programs and technical information on agriculture, horticulture, and money management. The Agriculture Reserve Program (ARP) is a land preservation program. The goal of the ARP is to promote and enhance agriculture as an important local industry that is part of a diverse local economy by purchasing development rights over a resource base of farmland. The Farmer's Market provides a venue for the sale of goods and products of local farmers and craftsmen and for the provision of rural heritage activities. The Department of Audit Services. On December 11, 2007, City Council adopted an ordinance to recognize the Department of Audit Services as a Council -appointed Office. The purpose of this 18 reorganization is to create more independence in the overseeing of the audit of financial information. The Council -appointed auditor will have all the duties of the former position and will report under a new organizational structure. Among the auditor's duties will be to conduct financial and performance audits of City departments, offices, boards, activities, agencies, programs and systems. Those audits will focus on efficiencies and the adequacy of internal controls, and all audits will be conducted in accordance with Government Auditing Standards. The City Auditor also will operate a fraud, waste and abuse hotline and will oversee and coordinate investigations of suspected fraudulent activity. A Council -appointed Audit Committee consisting of Council members, a citizen Certified Public Accountant, and two other citizen members with a background in finance, accounting, and/or auditing will review the Auditor's audit schedule and audit reports, which will then be forwarded to City Council and be made available for public inspection. City Council has solicited applications for the position of City Auditor, and the transition to a City Council -appointed Auditor will occur upon the selection of the new appointee, which will likely occur within the next several months. The function of the Department of Communications and Information Technology is the processing and electronic storage of information used in the daily business of the City. The department collects, organizes and disseminates information to all City departments, City agencies, and the public school system. It also provides consulting services in related areas to municipal users to assist them in formulating goals, objectives and long-range plans. The department manages school and City video production services and facilities and provides information to the community on municipal government and the public school system through the City's Municipal Cable Access Television Station, Channels 46,47 and 48. The department's services center around ten main operational areas — applications support, system support, operations support, telecommunications, multimedia services, emergency communications, geo-spatial information services, information security and privacy, City/school printing and mail, and business center. The Convention and Visitors Bureau coordinates the advertising and promotion of tourist activities and is responsible for bringing meetings, conferences, and conventions of large groups to Virginia Beach. The department operates a Visitor Information Center and the new award winning Virginia Beach Convention Center. Approximately 2.7 million tourists and conventioneers visited Virginia Beach in calendar year 2007, spending an estimated $890 million and generating over $78.4 million in tax revenues. The Office of Cultural Affairs was created to reflect the importance of the role of arts and culture in making a well-rounded and vital community for a lifetime. The creation of this office demonstrates the rising significance of our cultural facilities in the City's structure. The role of the Office of Cultural Affairs consists of the following: develop the vision and direction for cultural arts in Virginia Beach, direct the Virginia Beach Arts and Humanities Commission, coordinate the City's Public Art Program, provide contract Management for the Sandler Center for the Performing Arts; administrative leadership to Sandler Center for the Performing Arts 501( c ) 3 Foundation, Sandler Center's Endowment fundraising campaign and Virginia Beach Performing Arts Center Advisory Committee. The Economic Development Department promotes and encourages the economic growth and diversity of the City. The department works with the City of Virginia Beach Development Authority to attract business and industry to the City and to develop sites for new or expanding businesses in the City's Business/Industrial Parks. Recent accolades include: Forbes Magazine, October 2008, named Virginia Beach as the 6t' best City to "Ride out the Recession." The Small Business Administration Office of Advocacy named the Virginia Beach MSA as the #1 place in the U.S. for high impact firms for jobs and growth. Fortune Small Business, 2008, ranked Virginia Beach 14`s out of the top 100 cites in the U.S. to live and launch a business. 19 The Department of Emergency Communications and Citizen Services is comprised of VB9-1-1 and V133-1-1. The VB9-1-1 Center is a centralized public -safety communications answering point (PSAP) for citizens to access public safety services. VB9-1-1 also provides communications services for Police, Fire, Emergency Medical Services (EMS) and other departments Citywide. In 2008, VB9-1-1 dispatched 498,654 public safety calls for service. VB3-1-1 Citizen Services Center provides non- emergency call taking functions such as City information inquiries, public utilities and public works after hours calls, and animal control inquiries and calls for service. In FY08, VB3-1-1 processed 227,197 citizen inquiries, including on-line assistance. The Department of Emergency Medical Services coordinates the pre -hospital emergency care provided by the 10 volunteer Rescue Squads and three substations. In Fiscal Year 2008, it answered 38,137 calls for medical assistance. This care includes rapid, safe response to the scene, proper treatment of the victim and prompt transfer to a hospital. The department also provides all rescue squad training and coordinates the use of specialized resources including EMS Special Operations, police, fire, hospital personnel, dispatchers and the Nightingale Air Ambulance to deal with medical emergencies in the City. Approximately 826 volunteers along with 38 career EMS providers were active with the rescue squads in Fiscal Year 2008. The Department of Finance oversees the financial affairs of the City and ensures the financial integrity of City operations. Departmental services include: payment of all City bills; maintenance of accounting records; payment of all City employees and administration of employee benefits; provision of insurance and operation of the self-insurance program; maintenance of the City's fixed assets inventory; procurement of all equipment, materials and services for all city agencies; and coordination and administration of the City's long-term debt program. The City's Fire Department, which is responsible for both fire prevention and fire suppression, handled over 28,000 fire and rescue incidents in Fiscal Year 2008. The City's firefighters respond to fire, medical and other emergency events from the City's 19 fire and rescue stations. In addition, volunteer personnel with proper training from the City's fire training center provide manpower contributions to a variety of department customer service areas. There are 491 volunteers active with our Citizen Emergency Response Team (CERT) and 55 volunteers who serve as firefighters, support technicians and administrative personnel. The Office of the General Registrar, pursuant to provisions in the Code of Virginia, is responsible for providing an accessible and fair means by which City residents can register and vote in general and special elections and primaries. The number of registered voters was approximately 288,924 as of January 1, 2009. The Department of Housing and Neighborhood Preservation provides a variety of housing and neighborhood improvement services, including enforcement of the building maintenance code and property maintenance codes, provision of financial assistance to home owners for housing rehabilitation, provision of financial assistance to eligible renters, and provision of information and recreational services for youth and adults in identified neighborhoods. The Department of Human Resources is responsible for developing and managing the City's human resource programs to ensure quality, efficiency and diversity. The department provides services in applicant counseling, recruitment, testing, equal employment opportunity monitoring, volunteer referrals, policy interpretations, benefits, grievance procedures, disciplinary action, career counseling, professional development, compensation, employee safety, occupational health services, and provides staff support to the Human Rights Commission. 911 The Department of Human Services was created by merging the Department of Mental Health/Mental Retardation/Substance Abuse Services, the Department of Social Services, Pendleton Child Service Center, and the Juvenile Detention Center. The department continues to carry out the missions of the former departments including: providing MH/MR/SA services to children, adults, and the elderly, in order to improve quality of live and ensure community safety. Additionally, the department provides a range of child welfare services including child protective services, foster care, and employment services. The department is responsible for providing secure detention services for children before the juvenile and domestic relations court, and the department provides prevention orientation services to young children identified by the school system as being in need of early intervention services. The department is also responsible for Community Corrections/Pretrial Services which provides probation services and pretrial monitoring for adults who have been charged or convicted of misdemeanors or non- violent felonies. The Juvenile Probation Office provides support services to the Juvenile and Domestic Relations District Court. The office provides probation supervision, intake services, and parole services for juveniles. It provides court support by processing petitions and preparing social background investigations. The Department of Management Services develops and oversees the City Biennial Operating Budget and Six -Year Capital Improvement Program. The department provides assistance and direction to other City departments for any budget amendments for issues that arise during the year. The department also provides multi-year forecasting of revenues and expenditures, coordinates grant review, monitors performance measurement data, evaluates City programs and services, and assists departments in management issues, as assigned. The Media and Communications Group develops mutual understanding and support between the city government, the community and diverse publics by communicating information, managing municipal public relations, and encouraging citizen involvement. MCG provides communications counsel and support to all city departments, the mayor, and the City Council. The department also provides publicity, promotional services and public participation planning to help the organization achieve its goals for an informed and engaged citizenry. The Department of Museums operates the Virginia Aquarium and Marine Science Center, the Francis Land House, the Adam Thoroughgood House and the Lynnhaven House. The department coordinates projects and initiatives for the preservation of the City's historic resources and administers the Virginia Beach Historical Register. The Virginia Aquarium and Marine Science Center first opened in 1986 and was expanded to three times its original size in 1996. In Fiscal Year 2008, the 120,000 square foot facility had attendance of 577,356 visitors. The Aquarium takes visitors on a journey of water through Virginia's marine environment by way of interactive exhibits and 800,000 gallons of aquariums that feature sharks, river otters, harbor seals and sea turtles. The Aquarium also offers a larger than life experience in its 3D IMAX® Theater. A $14.7 million renovation project is currently underway at the Aquarium. Aquarium operations generated $6,113,928 in Fiscal Year 2008. The purpose of the Francis Land House is to collect, preserve and present historically accurate material reflecting life in eighteenth century Princess Anne County. The House is open year-round for tours and educational programming. In Fiscal Year 2008, 8,237 people visited the Francis Land House. The Adam Thoroughgood House provides year-round tours and programs related to Adam Thoroughgood, a founding father of Virginia Beach, and early life in colonial Virginia. Approximately 7,675 visitors attended tours and programs at the Thoroughgood house in Fiscal Year 2008. Through public tours and programs, the Lynnhaven House presents life on a rural farm in 18`h -century Princess Anne County. During tours, visitors learn about the Thelaball family who lived in the house during the 1700's. The department began operating Lynnhaven House on May 24`h of 2006, and hosted 3,587 visitors in Fiscal Year 2008. The department also provides 21 oversight for three other City owned properties, which are operated by private non-profit organizations: the Old Coast Guard Station, the Ferry Plantation House and the DeWitt Cottage, which houses the Atlantic Wildfowl Heritage Museum. The Organization Development Office supports the continued development of our Quality Organization and continuous learning. The Office increases organizational capacity by supporting the organization, departments, and individual teams in strategic planning, leadership development, and assessing organizational culture to build more effective working relationships. The Office analyzes organizational structure, assists in the implementation of re -organizations, and develops processes and tools to increase efficiency and effectiveness in the organization. The Department of Parks and Recreation's mission is to deliver parks, recreation programs and public spaces that reflect the priorities of our community; support tiered levels of service that recognize the diverse needs of the community; and focus on sustainability of core programs, services and facilities through efficient business practices. In Fiscal Year 2008, the Parks and Recreation Special Revenue Fund, which include parks, outdoor programs, recreation center operations and out-of-school programs, generated $12.26 million in fees and charges. The Golf Course Special Revenue Fund generated approximately $2.67 million in revenue in Fiscal Year 2008. The Planning, Design and Development Division and the Programming and Operations Division plans, acquires, constructs and maintains recreation centers, parks, playgrounds, public beach and waterway accesses and open spaces. There are 204 developed City parks, 182 of these are classified as neighborhood parks, 13 are classified as community parks, 5 are classified as metro parks, 2 are classified as signature parks, and 2 are classified as linear parks. The Programming and Operations Division is responsible for the following areas: providing recreation and leisure services to adults, senior citizens and youths; providing all disabled citizens the opportunity to receive the benefits of recreation and leisure in the least restrictive environment; operating all parks and park facilities; operating six recreation centers located throughout the City; and operating Before School and After School programs. The Golf Course Division oversees the management of five municipally -owned golf courses, three of which are operated by the division. The Department of Planning and Community Development provides policy and operational planning support in the areas of transportation, land use, zoning, and environmental protection and management. The department is responsible for maintaining a long-range Comprehensive Plan, which provides guidance for the physical development of the City. The department reviews subdivision plans, site plans, and land management plans and prepares the monthly Planning Commission Agenda. Its Development Services Division provides customer -oriented management of plan review, utility, right-of- way, moving and hauling permit issuance and surety administration. The Environmental Management Division coordinates many of the City's environmental programs and serves as a point of contact for information and liaison with the community on environmental issues. The department, through its Permits and Inspections Division, ensures compliance with City and/or state building code standards by the inspection of all construction in the City; and through its Zoning Enforcement Office ensures compliance with City zoning regulations. The department also supplies staff support to the Chesapeake Bay Board, the Wetlands Board, the Historic Review Board, Hampton Roads Transit, the Board of Zoning Appeals, and the Bayfront Advisory Committee. The Police Department is composed of four major units: Administration, Support, Operations and Investigative Divisions. The department operates through four precincts located throughout the City. Virginia Beach's crime rate for 2008 was 31.8 crimes per 1,000 residents, down from 32.3 in 2007. The violent crime rare in 2008 was 2.4 crimes per 1,000 residents. According to the FBI's Crime in the United States 2007, the City's violent crime rate is the lowest among cities with populations of 350,000 or more. The City continues to be rated as one of the safest communities of its size in the country. 22 The Department of Public Health is responsible for promoting the best possible state of health for all Virginia Beach citizens. The department assumes primary responsibilities for providing protective, curative, and environmental health services when not otherwise provided by the private sector. The department offers services and clinics in the areas of pediatrics, dentistry, family planning, immunizations, home nursing, maternity, chest x-rays, venereal disease, health education, and environmental health. The Department of Public Libraries manages eight area libraries and a 95,000 square foot Central Library. It operates a bookmobile, provides library services (support) for homebound and disabled citizens and serves as a subregional library for the blind and visually handicapped. A municipal reference library and a public law library complete its service capacity. The department is concluding work on a $26 million capital investment program. The Great Neck Area Library was renovated and reopened in May 2003. The Princess Anne and Oceanfront Area Libraries were opened in October 2003 and October 2004, respectively. The Windsor Woods Area Library reopened in January 2006 following extensive interior renovations, and a new Bayside Area Library opened in November 2005. Renovation of the Central Library was completed in 2005. Interior renovations for the Kempsville Area Library are currently in progress anticipated to be completed in the fall of 2009. The department is working with Tidewater Community College Virginia Beach Campus to plan a joint use library on the TCC- Virginia Beach campus, (a "Lifelong Learning Center,") a 120,000 square foot facility that would serve the faculty and students of TCC and the entire community and be jointly operated by the College and the department. The Joint Use Library project is funded with approximately $42.3M from the State and approximately $11M from the City of Virginia Beach. The total current square footage of the library system is approximately 206,405. The Department of Public Utilities provides water and sanitary sewer services to City residents. As of June 30, 2008, the department had installed and continues to maintain more than 3,086 miles of water and sanitary sewer lines as well as operating and maintaining 403 sanitary sewer pumping stations, nine water pumping stations (including Lake Gaston), .12 water storage facilities with 27.75 million gallons of water capacity, and 7,996 fire hydrants. The department coordinates the engineering and administration of the development of raw water supplies for the City and oversees the City's water conservation programs. The Department of Public Works oversees the design and construction of new City structures and transportation systems, maintains a large portion of the City's infrastructure (e.g., roadways, bridges, storm water systems, beaches, traffic control devices, City -owned buildings and City -owned motorized equipment), and provides for collection, recycling and disposal of solid waste. The administration of the storm water management utility is also included as a responsibility of the department. The Office of Volunteer Resources coordinates the use of over 19,000 volunteers throughout City Departments. Economic and Demographic Factors Population. Based on the April 2000 census conducted by the U.S. Census Bureau, the population of the City of Virginia Beach was 425,257. This census confirmed Virginia Beach as the most populous city in the Commonwealth and the 34th largest city in the United States. The following table presents population figures for selected years. 23 Source: Weldon Cooper Center, University of Virginia, and the U.S. Census Bureau (2008) FIVE MOST POPULOUS CITIES IN VIRGINIA Citv 2000 Population 2008 Population Virginia Beach 425,257 431,451 Norfolk 234,403 235,092 Chesapeake 199,184 216,622 F:ichmond 197,790 195,463 Newport News 180,150 180,978 Source: U.S. Census Bureau (2000) and Weldon Cooper Center, University of Virginia (2008) Income. Presented below are tables on median household income, distribution of household income, per capita income, total personal income and median household effective buying income. Median household income is defined as total income divided by total households. Per capita income is total personal income divided by the area's residential population. Total personal income is a measurement of the area's total income from all sources. Effective buying income is a measurement of disposable income or after-tax income. MEDIAN HOUSEHOLD INCOME 2007 Virginia Beach Median Household Income $62,477 Source: Census Bureau's 2008 American Community Survey 24 Commonwealth of Virginia $58,378 United States $50,007 POPULATION AND RATE OF CHANGE VIRGINIA BEACH AND THE UNITED STATES SELECTED YEARS Year Virginia Beach Rate of Chance United States Rate of Change 1960 85,200 N/A 179,323,175 N/A 1970 172,106 102.00% 203,302,031 13.37% 1980 262,199 52.35 226,542,199 11.43 1990 393,089 49.92 248,709,873 9.79 2000 425,257 8.18 281,424,602 13.15 2008 431,451 1.46 304,059,724 8.04 Source: Weldon Cooper Center, University of Virginia, and the U.S. Census Bureau (2008) FIVE MOST POPULOUS CITIES IN VIRGINIA Citv 2000 Population 2008 Population Virginia Beach 425,257 431,451 Norfolk 234,403 235,092 Chesapeake 199,184 216,622 F:ichmond 197,790 195,463 Newport News 180,150 180,978 Source: U.S. Census Bureau (2000) and Weldon Cooper Center, University of Virginia (2008) Income. Presented below are tables on median household income, distribution of household income, per capita income, total personal income and median household effective buying income. Median household income is defined as total income divided by total households. Per capita income is total personal income divided by the area's residential population. Total personal income is a measurement of the area's total income from all sources. Effective buying income is a measurement of disposable income or after-tax income. MEDIAN HOUSEHOLD INCOME 2007 Virginia Beach Median Household Income $62,477 Source: Census Bureau's 2008 American Community Survey 24 Commonwealth of Virginia $58,378 United States $50,007 DISTRIBUTION OF HOUSEHOLD INCOME 2008 Source: Claritas 2008 PER CAPITA INCOME Virginia Beach USA $100,000+ 22.01% 18.56% $75,000 - $99,999 15.48% 12.03% $50,000 - $74,999 24.00% 19.55% $25,000 - $49,999 26.03% 26.43% Under $24,999 11.97% 23.43% Source: Claritas 2008 PER CAPITA INCOME Commonwealth of Virginia 9,922 20,527 31,087 41,727 United States 10,030 19,572 29,845 38,615 Source: U.S. Department of Commerce, Bureau of Economic Analysis. Most recent information available as of April 2009. As set forth in the table above, the City's per capita income has surpassed the Commonwealth of Virginia's per capita income [for five consecutive years, which had previously not occurred since 1992]. The City's 2007 per capita income ranks 14th among 105 Virginia localities for which the Bureau of Economic Analysis computes income. Virginia Beach's per capita income figure is 10.9% higher than the United States figure and has steadily climbed higher than the U.S. since 2000. TOTAL PERSONAL INCOME (In Millions) 1980 1990 2000 2007 Virginia Beach $ 2,865 $ 8,214 $ 12,842 $18,627 Commonwealth of Virginia 54,457 127,129 220,845 321,245 Virginia Beach as a percent of state 5.3% 6.5% 5.8% 7.6% Source: U.S. Department of Commerce, Bureau of Economic Analysis. Most recent information available as of April 2009. 25 1980 1990 2000 2007 Virginia Beach $10,397 $20,896 $30,117 $42,821 Norfolk 8,820 15,048 26,848 33,371 Chesapeake 9,016 17,464 26,849 37,025 Newport News 9,185 16,850 21,913 30,423 Commonwealth of Virginia 9,922 20,527 31,087 41,727 United States 10,030 19,572 29,845 38,615 Source: U.S. Department of Commerce, Bureau of Economic Analysis. Most recent information available as of April 2009. As set forth in the table above, the City's per capita income has surpassed the Commonwealth of Virginia's per capita income [for five consecutive years, which had previously not occurred since 1992]. The City's 2007 per capita income ranks 14th among 105 Virginia localities for which the Bureau of Economic Analysis computes income. Virginia Beach's per capita income figure is 10.9% higher than the United States figure and has steadily climbed higher than the U.S. since 2000. TOTAL PERSONAL INCOME (In Millions) 1980 1990 2000 2007 Virginia Beach $ 2,865 $ 8,214 $ 12,842 $18,627 Commonwealth of Virginia 54,457 127,129 220,845 321,245 Virginia Beach as a percent of state 5.3% 6.5% 5.8% 7.6% Source: U.S. Department of Commerce, Bureau of Economic Analysis. Most recent information available as of April 2009. 25 The following tables show median household effective buying income for the City, the Hampton Roads Metropolitan Statistical Area ("MSA"), the Commonwealth and the United States for the last ten calendar years, followed by comparative tables showing Virginia Beach as a percentage of the various regions. Source: Sales & Marketing Management (1998 - 2004) and Demographics USA (2005-2007). W MEDL&N HOUSEHOLD EFFECTIVE BUYING INCOME Hampton Commonwealth December 31 Virginia Beach Roads MSA of Virginia United States 1998 $40,509 $33,509 $37,740 $35,377 1999 41,994 34,942 39,709 37,233 2000 43,911 36,248 41,810 39,129 2001 43,311 36,207 41,095 38,365 2002 42,163 37,935 41,169 38,035 2003 42,838 38,496 41,979 38,201 2004 43,736 39,702 42,991 39,324 2005 45,410 41,618 44,680 40,529 2006 47,317 41,706 46,028 41,255 2007 49,559 44,804 47,678 41,792 Virginia Beach Hampton Roads MSA Commonwealth December 31; As a Percent of U.S. As a Percent of U.S. As a Percent of U.S. 1998 114.51% 94.72% 106.68% 1999 112.79 93.85 106.65 2000 112.22 92.64 106.85 2001 112.89 94.38 107.12 2002 110.85 99.74 108.24 2003 112.14 100.77 109.89 2004 111.22 100.96 109.33 2005 112.04 102.67 110.24 2006 114.69 101.09 111.57 2007 118.58 107.21 114.08 Virginia Beach Virginia Beach December 31 as a Percent of MSA as a Percent of Commonwealth 1998 120.89% 107.34% 1999 120.18 105.75 2000 121.14 105.03 2001 119.62 105.39 2002 111.15 102.41 2003 111.28 102.05 2004 110.16 101.73 2005 109.11 101.63 2006 113.45 102.80 2007 110.61 103.95 Source: Sales & Marketing Management (1998 - 2004) and Demographics USA (2005-2007). W Housing and Construction. The information in the following tables is presented to illustrate various housing characteristics for the City. As of January 1, 2009, the total estimated number of dwelling units in the City was 168,113, excluding military housing. Single-family units represented 57.3 percent of this total. Selected data regarding the distribution of all dwelling units is as follows: DWELLING UNITS BY TYPE Note: Does not include Military Combined Units. Source: City Real Estate Assessor. In the 2008 calendar year, the City issued 30,119 permits valued at $506 million. The following table presents a further breakdown on certain building permits by type. NUMBER OF CERTAIN BUILDING PERMITS ISSUED AND VALUE Calendar Year Residential (Z) Commercial Industrial Other Total Value 1999 1,305 1,100 % of 2008 16,737 2007 Units 2008 Units Units by Tyne Single Family 95,977 96,400 57.3 Multi -family Complex 29,339 29,294 17.4 Townhouse 19,640 19,630 11.7 Low Rise Condominium 16,844 18,417 11.0 Duplex 1,557 1,545 0.9 High Rise Condo/Co-op 2,319 2,827 1_7 Total1 5 6 168_113 100° Note: Does not include Military Combined Units. Source: City Real Estate Assessor. In the 2008 calendar year, the City issued 30,119 permits valued at $506 million. The following table presents a further breakdown on certain building permits by type. NUMBER OF CERTAIN BUILDING PERMITS ISSUED AND VALUE Calendar Year Residential (Z) Commercial Industrial Other Total Value 1999 1,305 1,100 32 16,737 $455,353,722 2000 1,753 1,024 9 14,948 530,576,046 2001 2,218 1,096 7 14,858 667,406,046 2002 2,522 982 2 16,277 699,990,772 2003 2,215 920 - 3 18,679 543,934,601 2004 2,543 1,267 10 19,328 635,848,544 2005 1,903 1,001 4 20,708 705,262,350 2006 1,382 1,414 3 20,007 817,683,741 2007 989 1,495 6 16,218 671,839,566 2008 789 1,101 1 14,152 432,118,047 Represents building and mechanical permits only. Does not include electrical, plumbing, gas and other types of permits. (2) One residential building permit does not necessarily equal one residential unit; in many instances one permit is for multiple residential units. Source: City Department of Planning and Community Development, Division of Permits and Inspections. The following table presents annual new construction as reported by the City Assessor. The total value of new construction in the City for 2008 was $653,804,224, which represents a 10.8% decrease over 2007. 27 NEW CONSTRUCTION: NUMBER OF UNITS AND ESTIMATED VALUE (') Source: Office of Real Estate Assessor — Annual Report M Residential Construction Commercial Construction (Z) Calendar Number of Residential Total Estimated Number of Estimated Total Estimated Year Units Addition Value Permits Value Value 1999 2,099 2,250 $258,072,199 175 $ 65,364,859 $323,437,058 2000 2,155 2,505 296,029,009 169 87,046,925 -- 383,075,934 2001 1,882 2,204 92,303,983 187 298,642,448 390,946,431 2002 2,341 2,326 397,786,699 154 136,360,828 534,147,527 2003 2,456 2,614 396,157,100 186 92,494,544 488,651,644 2004 1,732 3,020 371,913,666 164 128,395,480 500,309,146 2005 1,905 2,625 452,700,606 149 176,806,665 629,561,271 2006 1,905 3,016 537,922,864 256 151,479,530 689,402,394 2007 1,430 2,640 539,420,291 177 193,469,906 732,890,197 2008 1,647 1,834 433,016,855 210 220,787,369 653,804,224 (') Building/structures only (excludes land) (2) Represents general commercial, hotel, industrial and office, including additions. Source: Office of Real Estate Assessor — Annual Report M Employment. Employers in the City, excluding military, provided jobs for 177,027 persons through the third quarter of calendar year 2008. The following table presents the number of establishments, employment, and quarterly gross wages for the third quarter of calendar year 2008. CITY OF VIRGINIA BEACH 31 1,918 NUMBER OF ESTABLISHMENTS, EMPLOYMENT 639 Local Government AND QUARTERLY GROSS WAGES 19,054 201,699,312 QUARTER ENDED SEPTEMBER 30, 2008 Federal Government 53 (NON-MILITARY) 62,176,946 894 - 134 Average 279,816,378 818 Weekly 11_542 Wages Number of Average Emp. Quarterly Per Industry Group Establishments For Ouarter, Gross Waees Employee Private Services 5,852 83,410 $ 628,364,665 $ 578 Wholesale and Retail Trade 2,002 29,791 207,828,232 537 Construction 1,485 11,921 120,274,087 776 Financial, Insurance and Real Estate 1,429 13,619 156,586,791 884 Manufacturing 236 5,910 55,415,823 721 Transportation, Communications and Utilities 227 2,006 18,218,815 699 Information 157 3,995 42,942,396 827 Agriculture, Forestry, Fishing and Mining 20 52 310,266 459 Total Private (1) 11,408 150,704 $1,229,941,075 $ 628 Public State Government 31 1,918 15,940,120 639 Local Government 50 19,054 201,699,312 814 Federal Government 53 5,351 62,176,946 894 Total Public 134 26,323 279,816,378 818 TOTAL 11_542 $1,502,752,453 65 ('� Immaterial amounts have been suppressed in certain industry sub -categories, which are included in the total amounts. Source: Virginia Employment Commission, Economic Information Services Division, ES -202 Report. Based upon most current and available information. 29 The following table is a breakdown of employment by sector in the City. EMPLOYMENT BY SECTOR AS A PERCENTAGE OF TOTAL QUARTER ENDED SEPTEMBER 30, 2008 Services 47.12% Wholesale and Retail Trade 16.83 Government 14.87 Financial, Insurance and Real Estate 7.69 Construction 6.73 Manufacturing 3.34 Information 2.26 Transportation, Communications 1.13 Agriculture, Forestry, Fishing and Mining 0.03 Total 100.00% (') Excludes active duty military personnel stationed at bases located in the City. Source: Virginia Employment Commission, Economic Information Services Division. As illustrated in the table below, the unemployment rate for the City has, for the most part, been consistently lower than the rates for the Hampton Roads MSA, the Commonwealth and the United States. ANNUAL AVERAGE UNEMPLOYMENT RATES 2002 2003 2004 2005 2006 2007 2008 2009(2) Virginia Beach 3.7% 3.8% 3.6% 3.4% 2.9% 2.7% 3.7% 6.0% Hampton Roads :MSA 4.2 4.3 4.2 4.0 3.3 3.2 4.2 7.2 Commonwealth 4.2 4.1 3.7 3.5 3.0 3.0 4.0 7.0 United States 5.8 6.0 5.5 5.5 4.6 4.6 5.8 8.9 (1) MSA includes the Virginia Cities of Chesapeake, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach and Williamsburg, and the Virginia Counties of Gloucester, Isle of Wight, James City, Mathews and York. Also includes Currituck County, North Carolina. (2) Reported for the month of February 2009 (preliminary). Source: U.S. Department of Labor, Bureau of Labor Statistics, and Virginia Employment Commission. Business and Industry The City has five major concentrations of office, industrial and commercial property - Airport Industrial Park, (3reenwich/Witchduck Corridor, Central Business District/Pembroke area, Oceana West Corporate Park/Lynnhaven Corridor, and Corporate Landing Business Park. Airport Industrial Park. The park encompasses 250 acres with four million square feet of light industrial and office space. National and international manufacturing, warehousing and distribution operations are located here. 30 Greenwich/Witchduck Corridor. The Greenwich/Witchduck corridor currently contains 1.3 million square feet of low and mid -rise suburban office space in business parks, including Interstate Corporate Center, Corporate Woods and Commerce Park that house corporate headquarters and business operations of many types. The Corridor currently contains 1.9 million square feet of light industrial space and facilities housing regional warehousing and distribution operations. Central Business District/Pembroke Area. The CBD encompasses 500 acres and 2.1 million square feet of low and high-rise office space in business parks including Town Center, Pembroke Office Park, Corporate Center and Convergence Center. The Town Center of Virginia Beach is a new urban "Main Street" style development located within the core of the City's Central Business District. The project spans 25 acres and, when completed, will include 850,000 square feet of Class A office space, 750,000 square feet of upscale retail, fine dining, a business class hotel, a luxury hotel with high-rise condominiums, a performing arts center, a central park, and apartments. The entire area is serviced by free structured parking. The corporate citizens in the area include numerous financial, information processing, law and professional service firms. Phases I and 11, as described below, are complete. Phase I included the construction of a 21 -story, 254,000 square -foot Class "A" office tower, two- story and five -story self-contained office/retail buildings, totaling approximately 93,000 square feet, a 176 -room, business -class Hilton Garden Inn Hotel, a two story Towne Bank, and a 1,284 -space parking garage. Phase II included the construction of four additional blocks of property containing 341 residential luxury apartments in the Cosmopolitan building, 232,500 square feet of retail and office space, and two parking garages with a total of 1,430 parking spaces. The Phase III Development Agreement between the Virginia Beach Development Authority and the Town Center Associates, LLC was approved in September 2005, and a modification to the agreement was approved in June 2006. Phase III includes a 37 -story, 236 -room Westin Hotel and 119 luxury condominiums which opened in December 2007, 36,500 square feet of retail space, a structured parking garage with 735 public parking spaces and 212 private parking spaces, the 84,000 square -foot, 1,200 seat Sandler Center for the Performing Arts which opened in November 2007 and a 5 -story 90,000 sq. ft. building consisting of Class A office and retail space. The Westin Virginia Beach Town Center Hotel and Residences is the tallest building in the Commonwealth at 500 feet to the tip of its architectural spire. The Phase IV Development Agreement between the Virginia Beach Development Authority and the Town Center Associates, LLC was approved in January 2009. Phase IV includes a 162 room Westin Aloft hotel and 195 apartments, conference center of 27,000 square feet, and 27,000 square feet of ground floor retail. In addition, Phase IV will contain a 20 story office tower with 332,134 square feet, and 32,632 of retail, and a 601 space -5 level garage. Spinoff projects due to the success of the Town Center include Pembroke Mall expansion and redevelopment, a major site development to the west of the Town Center, the Citiview mixed project on Bonney Road, and Convergence Center III. Oceana West Corporate ParklLynnhaven Corridor. The park encompasses 1,100 acres and currently contains 1.76 million square feet of low and mid -rise suburban office space and 5.5 million square feet of light industrial space. 195 acres are presently available for development. Corporate citizens in Oceana West and adjacent business parks, including Reflections, Sabre, Lynnhaven Industrial 31 Area, Oceana East and Taylor Farms Industrial Park, comprise a wide variety of domestic and foreign firms, including corporate headquarters and manufacturing, warehousing and distribution operations. Corporate Landing Business Park. The park encompasses over 325 acres and is owned and operated by the City of Virginia Beach Development Authority. 125 acres are presently available for headquarters, professional services, research and development, office buildings, retail and two conference centers. Corporate citizens include world headquarters, regional offices, and high-tech manufacturing. This master -planned, multi -faceted park contains 38 acres of lakes, jogging trails, green space and recreational opportunities. Throughout Virginia Beach there are many additional smaller nodes of office and commercial activity including Little Neck, Oceanfront, Birdneck/Laskin Road, First Colonial and Kempsville. 32 CITY OF VIRGINIA BEACH MAJOR PRIVATE EMPLOYERS AS OF DECEMBER 31, 2008 Number of Firm Type of Business Emnloyees Sentara Medical Medical Services 4646 Lynnhaven Mall Retail Trade 2600 SAIC/AMSEC Defense Contractor 2500 ST EIL, Inc. Power Driven Hand Tools and Chainsaws 2016 GEICO Direct -Insurance 2000 NEXCOM (Navy Exchange Service Command) Corporate Headquarters for Navy Exchange 2000 Michael Baker Jr. Technical and Research 1700 VT Milcom Engineering and Management Consultants 1653 Verizon Communications Telecommunications Services 1500 Amerigroup HMO Provider for Medicaid 1400 Hall Auto Group Automobile Dealer 1300 MANCON Defense Contractor 1100 Farm Fresh Corporate Office Corporate Offices for Farm Fresh 1000 Christian Broadcasting Network, Inc. (CBN) Motion Picture, video and television products 941 Checkered Flag Motor Car Company Automobile Dealer 709 Hampton Roads Sanitation District Wastewater treatment, sewage and related services 700 HSBC Business Consulting and Financial Recovery Services 575 The Virginia Pilot Production Plant Print Media 539 United Parcel Service Small Parcel Shipper 430 Atlantic Dominion Distributors Wholesale distribution of tobacco products 504 Century Concrete Highway Street and Bridge Construction 500 Cox Communication Telecommunications 500 ECPI Colleges, Inc. Computer and Electrics Training 500 NCO Financial Systems Collections and Financial Services 500 ALLTEL Communications Communications Service/Support 480 Securitas Security Services USA Inc. Armed and unarmed security services 457 LifeNet Health Blood, Tissue, Organ Bank, Health Services 450 National Leisure Group Travel Services 450 Regent University Company University (Private) Graduate and MBA program 450 The Breeden Company, Inc. Real Estate Developer and Management 420 Avis/budgct Company Rent A Car Systems Customer Service 419 Resource Bank Commercial Banking 416 Applied Marine Technology Professional Services for Homeland Security 400 PER/Gold Key Resorts Resort Hotel Management 400 Source: Department of Economic Development. 33 Retail Sales The table; presented below is a summary of the City's taxable retail sales; it does not include sales which are exempt from tax. Specifically exempt from the sales tax under Sections 58.1-600 et seq. of the Virginia Retail Sales and Use Tax Act are sales of alcoholic beverages in government stores, sales of certain motor vehicles, trailers and semitrailers, mobile homes, and travel trailers, and sales of certain motor vehicle fuels. Also, the figures do not include the significant amount of non-taxable sales on military bases in the City. As shown in the table, taxable retail sales have increased by an average of approximately 45% over the last eleven years. TAXABLE RETAIL SALES Calendar Year Taxable Retail Sales 1998 $3,343,769,258 1999 3,446,988,609 2000 3,655,862,619 2001 3,683,752,990 2002 3,903,205,018 2003 4,090,073,466 2004 4,437,864,910 2005 4,183,908,609 2006 4,726,601,202 2007 4,937,885,412 2008 4,850,290,420 Source: Virginia Department of Taxation. In 2006 the Virginia Department of Taxation changed its methodology for calculating taxable retail sales. Years prior to 2006 were not adjusted. Tourism and Conventions In calendar year 2007, tourism results continued to reflect a strong industry performance. Over 2.7 million visitors arrived in the City in 2007, resulting in an increase in spending of 3.9% over 2006. Visitor expenditures generated $78.4 million in direct City revenue. Hotel occupancy remained steady in 2007 at 63.3%. 7Fhe Convention Marketing and Sports Marketing Divisions continued to exceed booking goals, with fiscal year 2007 bookings totaling 172 future bookings extending through 2013. These bookings represent a total of over 218,000 room nights with an economic impact of approximately $144 million in direct spending. Over 60% of this business will use space at the new Convention Center for some or all of their meeting needs. The tourism industry created over 11,000 jobs in the City to serve the many visitors during the peak and shoulder season; customer loyalty remains high with repeat visitation of approximately 80%, with the Canadian markets representing 8% of overall visitation. In calendar year 2008 [TO BE PROVIDED] The City completed the construction of its new Virginia Beach Convention Center in January 2007. The $206 million 516,000 square foot facility includes the following: 150,000 square foot Exhibition Hall, 31,000 square foot ballroom, 29,000 square feet of meeting space and 2,230 parking spaces. This is three times the size of the former convention center. The new Convention Center is 34 located on the same site as the City's former facility and creates a focal point for future development in the resort. During the past two fiscal years, the new Virginia Beach Convention Center has hosted 814 events, welcomed over 1.1 million people and generated nearly 292,000 room nights city-wide, far exceeding projections. This award winning facility is also the first Virginia Green certified convention center in the Commonwealth of Virginia, reporting a cost savings of more than $204,000 between February 2008 and January 2009 through conservation and energy efficiency. Despite the slowing economy, hotel construction continues in Virginia Beach. Two new hotels will open in 2009 along Atlantic Avenue and The Westin Hotel, the tallest structure in the Commonwealth, recently opened at Town Center. In addition, a new hotel is planned for Phase IV of the Town Center. Virginia Beach has over 12,000 hotel rooms with 8,200 rooms located in the Resort Area. There are several key tourism related projects in various stages of discussion and review. These include a major headquarters hotel near the new Convention Center, an Entertainment District along the 19`b Street Corridor, the 31' Street Gateway Project with significant retail development, and the Rudee Loop Development at the southeastern end of the Oceanfront. Tourism and convention activity generate tax revenue for the City, particularly in the form of a hotel room and meal tax and a restaurant tax, as illustrated in the table below. As shown in the table, since Fiscal Year 2002, hotel room and meal tax and restaurant tax receipts have increased by an average of approximately 7.88% per year. HOTEL ROOM AND MEAL TAX AND RESTAURANT TAX RECEIPTS FISCAL YEARS 1998 THROUGH 2008 Fiscal Year Total Tax Receipts 1998 $32,475,690 1999 33,740,422 2000 35,712,011 2001 37,114,658 2002 45,631,284(') 2003 52,046,894 2004 57,248,370 2005 60,741,520 2006 66,007,760 2007 69,359,924 2008 71,692,725 (1) The meal tax was increased from four and one-half to five and one-half percent, effective July 1, 2001, and the hotel room tax was increased from five and one-half percent to eight percent, effective November 1, 2001. Source: City Director of Finance. Military The military bases in Virginia Beach have an annual payroll of $2.10 billion for over 32,000 armed services and civilian workers. Oceana Naval Air Station and Oceana Naval Air Station Dam Neck Annex. Oceana Naval Air Station ("NAS Oceana") is the United States Navy's East Coast "Master Jet Base." NAS Oceana is home to some 308 aircraft with 18 squadrons of F/A-18 Hornets and Super Hornets fighter/attack aircraft and one DC -9 Skytrain II squadron. NAS Oceana is the largest employer in Virginia Beach with $1.3 M billion economic impact which has 8,548 active duty personnel and 2,206 civilian employees and a gross payroll estimate of over $761 million. NAS Oceana Dam Neck Annex's primary mission is to provide training in the operation and employment of combat direction and control systems. Dam Neck Annex provides the highest quality, most up-to-date training in aviation maintenance, administration and management, survival, evasion, resistance and escape training and conventional weapons training. Dam Neck Annex has an estimated annual payroll of $416 million for 4,088 active duty personnel and 1,490 civilians. The combined Oceana Air Station and Dam Neck Annex is the largest employer in the City with a combined estimated payroll of over $1.18 billion for over 16,332 military and civilian employees. The contracts, goods and services generated by the combined bases are estimated to be $400 million, making Oceana an economic engine of over $1.5 billion. The federal Base Realignment and Closure ("BRAC") Commission was formed pursuant to Public Law 101-510 to conduct an independent review of the recommendations and analysis of the Secretary of Defense and provide the President of the United States with its recommendations on the timely closure and realignment of military installations in the United States. Although the 2005 decision of the BRAC Commission recommending realignment of NAS Oceana by relocating the Master Jet Base to Cecil Field in Jacksonville, Florida is moot, the City of Virginia Beach remains committed to the Air Installations Compatible Use Zones (AICUZ) program it implemented in an effort to keep Virginia Beach as the home of the Navy's East Coast Master Jet Base. That program includes the following elements: • Land Use Component o The Accident Potential Zone 1 (APZ-1)/Clear Zone Ordinance, prohibiting all new development in APZ-1 and the Clear Zone that is deemed incompatible with military operations arising out of NAS Oceana. The Ordinance prevented an estimated 909 new dwelling units and 417 new incompatible business units from being constructed in APZ-1 and Clear Zones. o The AICUZ Overlay Ordinance, which establishes a policy limiting discretionary development (i.e., development requiring specific approval of the City Council through a rezoning or conditional use permit) in Ocean's AICUZ. While the original Ordinance applied only in Noise Zones of greater than 70 dB DNL (day -night weighted average sound level), the Ordinance was amended on January 8, 2007 to include Noise Zones of fi5-70 dB DNL as well. o Restrictions limiting residential density in the Interfacility Traffic Area (ITA), the land generally underlying the flight path between NAS Oceana and NALF Fentress and an area of special concern to the Navy, to one dwelling unit per 20 acres of developable property. o A Memorandum of Understanding between the City and NAS Oceana that formally establishes, for the first time, a process and set of principles by which the Navy and City jointly review discretionary development applications at an early stage early in order to determine and report to the Planning Commission and City Council whether the applications meet the requirements of the City's AICUZ Overlay Ordinance. • Acquisiti.on Component o The APZ-1/Clear Zone Use and Acquisition Plan, pursuant to which the City purchases property from willing sellers in the APZ-1 and Clear Zones in cases in which owners have lost development rights under the APZ-1/Clear Zone Ordinance. While primarily 36 used to acquire residential properties, the Plan also allows the City to purchase commercial property deemed incompatible with military operations arising out of NAS Oceana or to acquire property of owners whose business plans were frustrated by the APZ-1/Clear Zone Ordinance. To date, the City has acquired or has agreements to acquire approximately $35.4 million of property in APZ-1 and Clear Zones, comprising a reduction of 294 dwelling units and 21 commercial uses from those areas. o Purchase of property on which the right to develop an incompatible use has vested under Virginia law. o The Interfacility Traffic Area Property Acquisition Plan, under which the City purchases property in the ITA from willing sellers. The City has acquired approximately 255 acres of property in the ITA and expended approximately $9.2 million in furtherance of the ITA Acquisition program. Roll -Back Component o Implemented the Oceana Land Use Conformity Program to identify and facilitate the development of compatible uses in APZ-1. Under this program the City gives zoning, tax and other financial incentives and grants to business owners who relocate into the affected zones. These incentives include the waiver or reduction of business license and real estate taxes and certain development -related fees. They also include funds to pay for the cost of moving operations. The program also provides similar incentives for businesses and other organizations with incompatible uses within APZ-1 to relocate to areas outside of APZ-1. • Virginia Beach officials plan to continue implementation of these programs until the City has purchased all incompatible use property in APZ-1 and the Clear Zone. The Commonwealth's Role Using grant money, the Commonwealth matches funds appropriated by the City to support implementation of the acquisition component of the City's program. The City uses these funds to purchase property or, in some cases, development rights in the APZ-1 and Clear Zones to limit incompatible development in these areas (e.g., residential development). The City can potentially resell this property to new owners who plan to develop the property for compatible uses, such as agricultural or light industrial uses. In such cases, the City would return any State funds used for the original purchase. To date, the State has reimbursed the City $17,452,598.16 for expenses associated with acquisition of properties or development rights Little Creek Naval Amphibious Base. The Little Creek Naval Amphibious Base, the largest base of its kind in the world, is the Navy's east coast major operating base for the expeditionary forces of the U.S. Atlantic Fleet. Little Creek's mission is to contribute to maximum military readiness by providing the best installation customer service possible to 132 resident commands. Little Creek has 10,204 active duty personnel and 4,275 civilian employees with an annual payroll of $821 million. Fort Story Army Base. Fort Story is an Army base established as a coast artillery post in 1917. Fort Story is now a sub -installation of Fort Eustis located in Newport News, Virginia. Fort Story is home to the 11th Transportation Battalion and provides an invaluable joint training venue utilized by Navy and Marines. Fort Story has 1,200 active duty military employees and 400 civilian employees and an annual payroll of $100.2 million. Source: Public Affairs Officers at each Military Base. 37 Medical Facilities Medical facilities in the City have expanded over the last few years. One of the premier hospitals in the region, Sentara Virginia Beach General, underwent major renovations to improve services to its patients. The 274 -bed acute-care facility features trauma services 24/7, a heart center, stroke center, cancer center, and many other health care services. Sentara Bayside Hospital is a 158 -bed acute care facility with a state-of-the-art critical care unit. Sentara plans a third acute-care hospital in the new health care campus in southern Virginia Beach. This new center presently has 24/7 emergency care and a cancer center along with medical office buildings. Bon Secours Health Systems, Inc. opened a health center in the City in the summer of 2007. Bon Secours' vision includes an 80,000 square foot ambulatory care building and a healthcare center anchored by a 90 -bed hospital. In addition, there are 19 emergency centers for medical assistance throughout the City. Approximately 1,500 doctors utilize the medical facilities in the City and 500 dentists practice in the City. Agribusiness In 2008, the economic impact of the agricultural community was $139.2 million, based on product valued at $43.5 million. Both total value of agricultural products and economic impact increased by 36% over 2007. There are approximately 172 farms in the City with approximately 29,000 acres of land under cultivation. For 2008 higher crop prices had a positive impact on farm income and overall livestock sales showed a significant increase. Education Available: within the City is a wide variety of educational facilities and programs, including public elementary, junior and senior high schools, private and parochial schools, and eight higher educational facilities. In terms of public enrollment, the City's public school system is the largest city school system in the Commonwealth. PUBLIC EDUCATION FACILITIES/PROGRAMS June 30, 2008 56 Elementary Schools 13 Middle Schools 11 Senior High Schools 1 Technical and Career Education Center 1 Center for Effective Learning 1 Virginia Beach Central Academy 1 Old Donation Center for the Gifted and Talented 1 Adult Learning Center 1 Open Campus High School 1 Kemps Landing Magnet School 1 International Baccalaureate Magnet Center 1 Ocean Lakes High School Math/Science Center (2) 1 Advanced Technology Center 1 Juvenile Detention Center (1) Located in Princess Anne High School. (2) Located in Ocean Lakes High School. Source: Business Serrices Office, Virginia Beach Public Schools. 38 Public Schools. The City's public school March 31 average daily membership totaled 70,473 for the 2007-2008 school year, a slight decrease of 1.37 percent over the previous year. Summarized below are the March 31 average daily membership and annual percentage change for the school year 1998-1999 to school year 2007-2008. PUBLIC SCHOOLS STUDENT POPULATION SCHOOL YEARS 1998-1999 TO 2007-2008 School Year Number of Students Percent Change 1998-99 76,949 .19 1999-00 76,773 (23) 2000-01 76,065 (.92) 2001-02 75,518 (.72) 2002-03 75,436 (.11) 2003-04 75,151 (.38) 2004-05 74,091 (1.41) 2005-06 72,953 (1.54) 2006-07 71,452 (2.06) 2007-08 70,473 (1.37) Source: Business Services Office, Virginia Beach Public Schools. Private and Parochial Schools. There are 24 private and parochial schools in the City. Approximately 6,300 students are enrolled in these schools. Hieher Education. Virginia Beach's higher educational resources include the Virginia Beach Higher Education Center (a partnership of Old Dominion and Norfolk State Universities), Virginia Wesleyan College, Tidewater Community College, and Regent University. Virginia Beach is home to branch campuses of George Washington University, the University of Virginia, Virginia Polytechnic Institute and State University and St. Leo's College. In addition, with the 2010 opening of The Art Institutes, Town Center will be the location for four colleges offering Adult education. Tidewater Community College ("TCC'), with total enrollment of more than 58,000, is a division of the Virginia Community College System. The Virginia Beach campus has an enrollment of approximately 25,800. This two-year college offers general, occupational -technical, and university parallel -college transfer education, representing the largest post -secondary institution in the region. TCC is a resource for business and industry to gain technical employees, as well as expertise for training and retraining programs for current employees. TCC has plans for expansion to include several new academic buildings, including a new science center. Virginia Wesleyan College is a four-year liberal arts private college located on the Virginia Beach/Norfolk boundary line. It has an enrollment of approximately 1,400 students. Regent University has an enrollment of approximately 4,563 with graduate schools of Business Administration, Education, Law, Public Policy, Divinity, Psychology and Counseling, the College of Communications and The Center for Leadership Studies. The Virginia Beach Higher Education Center is a joint venture among the City, Old Dominion University and Norfolk State University. The City donated 36 acres of land for an 84,000 square foot 39 undergraduate center. The center opened in the fall of 1999 and has an enrollment of approximately 4,200 students. The Advanced Technology Center is a joint venture between Tidewater Community College, the Virginia Beach Public Schools and the City to provide technical training for high school and college students pursuing positions in fields such as telecommunications, information technology, engineering technology, modeling and simulation, marine engineering and design, computer aided drafting and design, and marketing. In addition, the Center provides space for existing and new businesses to enhance the skills of their employees. The Center has a state-of-the-art theater for conferences, meetings and training sessions. The $23 million center is the first of its kind in the Commonwealth and "received state funding of $10 million with the City providing the remaining funds. 40 SECTION FOUR: CITY INDEBTEDNESS AND CAPITAL PLAN Limitations on Incurrence of Debt Pursuant to the Constitution of Virginia (the "Constitution") and the Public Finance Act of 1991, Chapter 26, Title 15.2, Code of Virginia of 1950, as amended, a city in Virginia is authorized to issue bonds and notes secured by a pledge of its full faith and credit and unlimited taxing power. The Constitution and the Public Finance Act of 1991 also limit the indebtedness which may be incurred by cities to 10 percent of the assessed valuation of real estate subject to local taxation. There is no requirement in the Constitution or the Code of Virginia that the issuance of general obligation bonds of the City be subject to approval of the qualified voters of the City at referendum. As of June 30, 2008, the total assessed value of real property in the City was $55,794,296,244 which translates into a general obligation debt limit of $5,579,429,624. The City's net obligations subject to debt limitations as of June 30, 2008, totaled $635,045,232 and represented 11.38% of this limit. The City Charter further limits the City's power to create debt. It provides that no bonds or notes (other than refunding bonds, revenue anticipation notes, revenue bonds, and other obligations excluded from the City's debt limit under Section 10(a) of Article VII of the Constitution) shall be issued until their issuance has been authorized.by a majority of the qualified voters of the City voting in an election on the question. The City Charter further provides, however, that the City Council may authorize bonds or notes without an election in any calendar year in such amounts as shall not increase the total indebtedness of the City, as determined in the manner set forth in Section 10(a) of Article VII of the Constitution, by more than $10,000,000 above the amount of such indebtedness at the beginning of such calendar year. For purposes of computing the annual limitation on the amount of bonds or other obligations that may be issued without an election, authorized and unissued bonds or other obligations which could have been issued without an election on December 31 in the year they were authorized may be issued in a subsequent year without affecting the annual limitation for such subsequent year. In addition, refunding bonds shall not be included for purposes of determining the amount of bonds or other obligations that may be issued without an election in any calendar year. Contractual obligations of the City other than bonds and notes are not included with the annual limitations described herein. Debt Management Policies The City has developed a series of Debt Management Policies to provide a functional tool for debt management and capital planning. The policies reiterate the City's commitment to principles such as rapid principal retirement, maintaining sufficient working capital to avoid the use of short-term borrowing for operating purposes, and the use of self-supporting or revenue -supported debt where appropriate. The policies also establish the following "target" levels for these key debt ratios: Overall Net Debt To Estimated Full Market Value. This ratio indicates the relationship between the City's debt and the taxable value of property in the City. It is an important indicator of the City's ability to repay its tax -supported debt, since property taxes are a major revenue source. A small ratio indicates that the City will be better able to withstand economic downturns. It is the City's policy that the computed value of this ratio should not exceed 3.5 percent of estimated full market value. 41 Overall Net Debt Per Capita. This ratio indicates the per capita debt burden and is a general indication of the City's debt burden. A smaller ratio indicates a lighter burden. It is the City's policy that the computed value of this ratio should not exceed $2,400 per capita. Debt Per Capita To Per Capita Personal Income. This ratio is a measure of the capacity of citizens to finance tax -supported debt. A low ratio means that taxes required to repay debt represent a smaller portion of the average citizen's income. It is the City's policy that debt per capita should not exceed 6.5 percent of per capita income. Annual Debt Service To General Government Expenditures. This ratio measures the City's ability to repay debt without hampering other City services. A small ratio indicates a lesser burden on the City's operating budget. This computation presently has a guideline of 10 percent. In addition, the City staff monitors the Assessed Value Per Capita. This ratio reflects the strength of the City's tax base and the City's ability to finance tax -supported debt. The table below entitled Key Debt Ratios includes this debt -load indicator. The City's debt load targets are evaluated periodically and are appropriately adjusted over time, taking into account the City's prospective debt issuances and the expectations and comparative standards of both the nationally recognized rating agencies and the financial community. While the City's general obligation debt load may exceed the City's debt load targets from time to time, the City anticipates that its actual debt load ratios generally will fall within the City's debt load targets over time. (1) Includes debt as described in the table on page 43. Does not include debt charged to the Water and Sewer or Storm Water Enterprise Funds or Agriculture Reserve Program. (3) Population estimates are by the Weldon -Cooper Center for Public Service. (3) Real property is assessed at 100 percent of fair market value. (4) Per capita income figures from U.S. Department of Commerce/Bureau of Economic Analysis for years subsequent to 2007 are not available. (5) Estimated, based on Fiscal year 2009 Budget. (6) Includes the City's $72,000,000 General Obligation Public Improvement Bonds, Series 2009, expected to be issued June 16, 2009, the principal amount of which is subject to adjustment, see "Sale at Competitive Bidding" herein. Source: City Financial Statements. 42 KEY DEBT RATIOS Fiscal Year Ended June 30 June 1 2004 2005 2006 2007 2008 2009 Overall Net Debt $787,242,654 $821,103,331 $839,670,584 $952,514,042 $976,139,505 $981,348,202 Net Debt Per Capita (Z) $1,814 $1,894 $1,944 $2,213 $2,262 $2,269 Ratio to Estimated - Full Value (3) 2.8% 2.6% 2.2% 2.1% 1.7% 1.7% Ratio of Per Capita Debt to Per Capita Income (4) 5.0% 5.0% 4.7% 5.2% N/A N/A Ratio of Annual Debt Service to General Government Expenditures 7.9% 8.0% 8.0% 7.5% 7.5% 7.7%(5) Assessed Value Per Capita $65,109 $73,607 $89,405 $107,599 $129,318 $132,909 (1) Includes debt as described in the table on page 43. Does not include debt charged to the Water and Sewer or Storm Water Enterprise Funds or Agriculture Reserve Program. (3) Population estimates are by the Weldon -Cooper Center for Public Service. (3) Real property is assessed at 100 percent of fair market value. (4) Per capita income figures from U.S. Department of Commerce/Bureau of Economic Analysis for years subsequent to 2007 are not available. (5) Estimated, based on Fiscal year 2009 Budget. (6) Includes the City's $72,000,000 General Obligation Public Improvement Bonds, Series 2009, expected to be issued June 16, 2009, the principal amount of which is subject to adjustment, see "Sale at Competitive Bidding" herein. Source: City Financial Statements. 42 Outstanding Debt Information on the City's indebtedness is presented in the following tables. Included is information on overall net debt, selected debt service schedules on General Obligation bonds and Overall Net Debt, rapidity of principal retirement, and information on other types of debt. OVERALL NET DEBT As of June 1, 2009 General Obligation Bonds (1)................................................................... $559,320,739 Public Facility Revenue Bonds (2) ................................................ 341,865,000 Water and Sewer Revenue Bonds(3)........................................................ 122,495,780 Storm Water Revenue Bonds(4)................................................... 7,910,000 Capital Leases/COP's(5)................................................................... 4,557,500 Agriculture Reserve Program Installment Purchase Agreements (6)............ 29,745,394 Virginia Beach Development Authority (7) ...................................... 5.505,000 Plus: 2009 General Obligation Public Improvement Bonds to be issued June 16, 2009 (8) Less: Water and Sewer Revenue Bonds(3)............................................ General Obligation Bonds for Stormwater Purposes (9) ............... Storm Water Revenue Bonds(4)........................................ Agriculture Reserve Program Installment Purchase Agreements(6).......................................................... Overall Net Debt $122,495,780 1,900,037 7,910,000 $1,071,399,413 72,000,000 29,745,394 162,051,211 (1) Includes $1,900,037 in general obligation debt for storm water purposes. (2) Includes 2002A & B Public Facility Revenue Bonds, 2003A Public Facility Revenue Bonds, 2005A & B Public Facility Revenue Bonds, and 2007A & B Public Facility Revenue Bonds issued through the Virginia Beach Development Authority as limited obligations of the Authority, payable solely from payments made by the City. These obligations are described in the section "Other Appropriation -Based Debt through the VBDA" herein. (3) Water and sewer revenue bonds are not secured by a pledge of the City's full faith and credit and unlimited taxing power. These bonds are secured solely by the net revenues of the water and sewer system. (4) Storm water revenue bonds are not secured by a pledge of the City's full faith and credit and unlimited taxing power. These bonds are secured solely by the net revenues of the storm water utility system. (5) A full description of the Capital Leases and Certificates of Participation can be found in the subsection "Assets Acquired and Financed Under Capital Leases and Other Debt" herein. Payments on Certificates of Participation are subject to annual appropriation by City Council. (6) Represents installment purchase agreements which are general obligations of the City. Interest and principal payments are paid from a dedicated portion of real estate taxes. Principal payments will be made from maturing zero coupon Treasury securities purchased from the dedicated portion of real estate taxes. These obligations are described in the section "Agricultural Reserve Program" herein. (7) Represents other long-term obligations of the City for lease revenue bonds issued by the Virginia Beach Development Authority for the City's Social Services building. These obligations are described in the section "Other Appropriation Based- Debt through the VBDA" herein. (8) The principal amount of the Bonds is subject to adjustment, see "Sale at Competitive Bidding" herein. (9) General obligation bonds issued for storm water purposes; debt service on these bonds is paid from revenues of the storm water system, even though such bonds are secured solely by the full faith and credit of the City and subject to the constitutional debt limit. Source: City Department of Finance. 43 O O O hN n l� d' ^ Qd' . Vl M ,O N d' d' N O O O� T d' l� T � [� O� [� (�l d' d• d W ar N l �Q� M d� �f 00 V F ao 00 t` d N .+ O O n O, 00 t- N 0+ (71v .-� d' O 5 pvav�t�c rnv^moo nod oov�om r .-, l � l� O t+1 ,n .-. er of N o0 ... 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N T 7 N h m O� W a 7 O� vi O^ VIt rt ooM.-.T�nNT�oen rvf Ta�o^NmM T b y N N O-+�N My h.�+�m�O N ef• brm0` N N N N N N N N N N CJ $ O^A A4,A Zh w!n ^NM?h`O roo jy N N N N N N N N N N N N N N N N N N N N F tn Authorized but Unissued Bonds After issuance of the Bonds, the City will have authorized but unissued $61,551,888 of general obligation bonds and $90,536,106 of revenue bonds, as shown below: Source: City Department of Finance. RAPIDITY OF PRINCIPAL RETIREMENT ALL GENERAL OBLIGATION BONDS (1)(2) June 1, 2009 Percentage of Maturing .Amount Total Debt Within Maturing Outstanding RAPIDITY OF PRINCIPAL RETIREMENT OVERALL NET DEBT (2) June 1, 2009 Percentage of Maturing Amount Total Debt Within Maturing Outstanding 5 years $260,465,614 41.3% 5 years $353,423,076 36.01% 10 years 444,723,416 70.4% 10 years 640,765,878 65.29% 15 years 571,037,861 90.5% 15 years 890,520,323 90.74% 20 years 631,320,739 100.0% 20 years 981,348,202 100.00% (1) Includes general obligation bonds additionally secured by storm water utility revenues which are serviced annually from those revenues. Does not include capital leases, Certificates of Participation, or other appropriation -based indebtedness. (2) Includes the City's $72,000,000 General Obligation Public Improvement Bonds, Series 2009, expected to be issued June 16, 2009, the principal amount of which is subject to adjustment, see "Sale at Competitive Bidding" herein. Water and Sewer System Debt Pursuant to Article VII, Sec. 10(a)(3) of the Constitution of Virginia, the City has issued water and sewer revenue bonds which are secured solely by the net revenues of the water and sewer system. As of June 1, 2009, $122,495,780 of these bonds were outstanding. * Subject to change! based upon the final principal amount of the Bonds; see "Sale at Competitive Bidding" herein. Authorization PuEpose Amount Security Year Manner Public Improvement $ 61,551,888 General Obligation 2008 Council Water and Sewer 13,344,201 Revenue 2005 Council Water and Sewer 18,950,465 Revenue 2006 Council Water and Sewer 18,793,000 Revenue 2007 Council Water and Sewer 13,000,000 Revenue 2008 Council Storm Water Utility 5,028,440 Revenue 1998 Council Stone Water Utility 5,300,000 Revenue 1999 Council Storm Water Utility 3,900,000 Revenue 2000 Council Storm Water Utility 200,000 Revenue 2001 Council Storm Water Utility 580,000 Revenue 2003 Council Storm Water Utility 510,000 Revenue 2004 Council Storm Water Utility 2,420,000 Revenue 2005 Council Storm Water Utility 2,510,000 Revenue 2006 Council Storm Water Utility 6,000,000 Revenue 2008 Council Source: City Department of Finance. RAPIDITY OF PRINCIPAL RETIREMENT ALL GENERAL OBLIGATION BONDS (1)(2) June 1, 2009 Percentage of Maturing .Amount Total Debt Within Maturing Outstanding RAPIDITY OF PRINCIPAL RETIREMENT OVERALL NET DEBT (2) June 1, 2009 Percentage of Maturing Amount Total Debt Within Maturing Outstanding 5 years $260,465,614 41.3% 5 years $353,423,076 36.01% 10 years 444,723,416 70.4% 10 years 640,765,878 65.29% 15 years 571,037,861 90.5% 15 years 890,520,323 90.74% 20 years 631,320,739 100.0% 20 years 981,348,202 100.00% (1) Includes general obligation bonds additionally secured by storm water utility revenues which are serviced annually from those revenues. Does not include capital leases, Certificates of Participation, or other appropriation -based indebtedness. (2) Includes the City's $72,000,000 General Obligation Public Improvement Bonds, Series 2009, expected to be issued June 16, 2009, the principal amount of which is subject to adjustment, see "Sale at Competitive Bidding" herein. Water and Sewer System Debt Pursuant to Article VII, Sec. 10(a)(3) of the Constitution of Virginia, the City has issued water and sewer revenue bonds which are secured solely by the net revenues of the water and sewer system. As of June 1, 2009, $122,495,780 of these bonds were outstanding. * Subject to change! based upon the final principal amount of the Bonds; see "Sale at Competitive Bidding" herein. Storm Water Utility System Debt The City has issued two types of securities to finance capital improvements to its storm water utility system: (1) Prior to 1995, the City issued general obligation public improvement bonds that were not secured by a pledge of the net revenues of the storm water utility system. As of June 1, 2009, $1,900,037 of these bonds were outstanding. (2) Pursuant to Article VII, Sec. 10(a)(3) of the Constitution of Virginia, the City has issued storm water utility revenue bonds which are secured solely by the net revenues of the storm water utility system. As of June 1, 2009, $7,910,000 of these bonds were outstanding. It is the City's policy to service all debt issued for storm water purposes by revenues from the storm water utility system. Assets Acquired and Financed Under Capital Leases and Other Debt The City had no Capital Leases as of June 1, 2009. As of June 1, 2009, the City had outstanding $2,645,000 Refunding Certificates of Participation, Series of 1993. The City has issued Certificates of Participation to finance and refinance the acquisition of real property to expand the City's Municipal Center Complex and to construct a Judicial Center Complex. In addition, the City entered into an installment purchase agreement with Williams Farm LLLP on January 14, 2004, for the acquisition of the Williams Farm property as part of the City's open space program. The purchase price was $5 million with a down payment of $750,000 at the time of settlement. The remaining balance, $4,250,000, is payable in equal semi-annual installments of $212,500 on each June 1 and December 1, beginning June 1, 2004, and ending December 1, 2013. The outstanding principal balance as of June 1, 2009, is $1,912,500. These obligations contain subject -to -appropriation clauses and therefore are not considered debt for purposes of calculating debt subject to the constitutional debt limit. The scheduled payments on these lease obligations as of June 1, 2009 are as follows: Note: These amounts include principal and interest. Source: City Department of Finance. Other Appropriation -Based Debt through the Virginia Beach Development Authority ("VBDA") On several occasions the Virginia Beach City Council has requested that the VBDA finance various public facilities in the City pursuant to Chapter 643 of the Virginia Acts of Assembly. To meet the City's Financing Plans, the Authority has issued Leased Revenue Bonds in 1998 and then a series of Public Facility Revenue Bonds starting in 2002. The City's obligation to make payments under the 47 Certificates of FY Capital Lease Participation Williams Farm Total 2010 - $2,716,415 $515,312 $3,231,727 2011 - - 494,062 494,062 2012 - - 472,812 472,812 2013 - - 451,562 451,562 2014 - - 217,812 217,812 Note: These amounts include principal and interest. Source: City Department of Finance. Other Appropriation -Based Debt through the Virginia Beach Development Authority ("VBDA") On several occasions the Virginia Beach City Council has requested that the VBDA finance various public facilities in the City pursuant to Chapter 643 of the Virginia Acts of Assembly. To meet the City's Financing Plans, the Authority has issued Leased Revenue Bonds in 1998 and then a series of Public Facility Revenue Bonds starting in 2002. The City's obligation to make payments under the 47 VBDA bonds is subject to the annual appropriation of funds for such purpose by the City Council, and is not general obligation debt of the City. The following paragraphs describe these bond issues. On February 24, 1998, the City of Virginia Beach Development Authority issued $9,800,000 Lease Revenue Bonds payable solely from certain rental payments made by the City under an operating lease. The maximum annual rent payment under the lease is $862,212. The Lease Revenue Bonds financed the costs of acquiring and constructing a Social Services Building to be used by the City to house its Social Services Department. Principal outstanding on this agreement as of June 1, 2009, is $5,505,000. On June 14, 2002, the City of Virginia Beach Development Authority issued its $20,815,000 Public Facility Revenue Bonds, Series 2002A, and its $3,040,000 Taxable Public Facility Revenue Bonds, Series 2002B, to finance the acquisition of a public parking facility and land for a public plaza in the Town Center development. These bonds are limited obligations of the Authority, payable solely from certain payments made by the City pursuant to a Support Agreement between the Authority and the City. Principal outstanding on these bonds as of June 1, 2009, is $23,175,000. On September 24, 2003, on May 18, 2005, and on June 26, 2007, the Authority issued public facility revenue bonds for various capital improvements in the City. These improvements included the Convention Center Replacement, the Virginia Aquarium and Marine Science Museum parking, the Pavilion Theater Replacement, Open Space Site Acquisition programs, 31st Street Parking Garage and two parking garages at the Town Center, among other projects. The aggregate cost of the projects is estimated to be approximately $438.5 million with the City currently financing approximately $368.4 million of these costs through the Authority's issuance of these public facility revenue bonds. The security for these; bonds is a Support Agreement between the City and the Authority in which the City will make certain payments to the Authority that will be sufficient to pay debt service on these bonds. Principal outstanding on these bonds as of June 1, 2009, is $318,690,000. The following table summarizes the debt issued by the VBDA, the payment on which by the City is subject to annual appropriation by the City Council: Bond Issue 2007A Public Facility Revenue 2007B Taxable Public Facility Revenue 2005B Taxable Public Facility Revenue 2005A Public Facility Revenue 2003A Public Facility Revenue 2002A Public Facility Revenue 2002B Public Facility Revenue 1998 Lease Revenue Agricultural Reserve Program Total $347.370.000 On May 9, 1995, City Council adopted an ordinance establishing the Agricultural Reserve Program ("ARP"). The primary purpose of the ordinance is to promote and encourage the preservation of farmland in the rural southern portion of the City. Through ARP, the City acquires development rights in designated areas within the southern portion of the City through the purchase of agricultural land 48 Amount Outstanding Purpose June 1, 2009 Convention Center, Open Space, Garages, etc $92,415,000 Convention Center, Open Space, Garages, etc 3,925,000 Garages and Town Center 7,855,000 Convention Center, Open Space, Garages, etc 76,725,000 Convention Center, Theatre,'etc. 137,770,000 Town Center Garage -Phase I 20,815,000 Town Center Garage -Phase 1 2,360,000 Social Services Building 5,505,000 Total $347.370.000 On May 9, 1995, City Council adopted an ordinance establishing the Agricultural Reserve Program ("ARP"). The primary purpose of the ordinance is to promote and encourage the preservation of farmland in the rural southern portion of the City. Through ARP, the City acquires development rights in designated areas within the southern portion of the City through the purchase of agricultural land 48 preservation easements. Landowners who meet certain eligibility criteria may sell an easement to the City while holding fee simple title to the land and continuing to farm. The City acquires these development rights by executing installment purchase agreements with the landowners. These agreements provide for the payment of the principal balance of the agreement in a single installment due approximately twenty-five years after execution of the agreement. Interest on the unpaid principal balance is payable semi-annually. On May 9, 1995, the City Council originally dedicated a one and one-half cent increase in the real estate tax to finance the program; on May 11, 2004, the City Council reduced this amount to one cent; and on May 9, 2006, the City Council further reduced this amount to 9/10ths of one cent. These obligations constitute indebtedness within the meaning of Article VII, Section 10 of the Virginia Constitution and will be general obligations of the City, pledging the full faith and credit and unlimited taxing power of the City. By policy, interest and principal payments will be paid from a dedicated portion of real estate taxes. Principal payments will be made from maturing zero coupon Treasury securities purchased from the dedicated portion of real estate taxes. As of June 1, 2009, 69 installment purchase agreements totaling 7,635 acres at a total purchase price of $29,745,394 have been executed. City Council has approved 3 additional applications totaling approximately 145 acres with a total approved purchase price of $1,032,125. These are expected to close in the next few months. Four additional applications totaling 251 acres are being processed by the City, valued at approximately $2,626,441. Overlapping Debt The City is autonomous from any county, town, or other political subdivision. Currently, there are no overlapping jurisdictions with debt outstanding for which City residents are liable. Short -Term Borrowing The City does not borrow on a short-term basis for working capital purposes. The City's policy is to maintain the General Fund balance at a level that provides sufficient cash flow for working capital purposes. Payment Record The City has never defaulted in the payment of either principal of or interest on any indebtedness. Tax Increment Financing The City is one of the first localities in the Commonwealth to use Tax Increment Financing ("TIF") districts as a means of supporting certain capital projects, usually involving one or more private or public partners. Tax Increment Financing is authorized under Sections 58.1-3245 through 58.1-3245.5 of the Code of Virginia, originally enacted in 1988. The City has established three TIF districts to fund its share of three investment partnerships: the Lynnhaven Mall Expansion, the Sandbridge Beach Restoration Program and the Town Center of Virginia Beach. The City's funding commitment to each of the projects will be paid through incremental tax revenues generated by each project in the related TIF district. The City is presently collecting and applying the incremental revenue in accordance with the project development agreements. The City has not incurred debt for any of the TIF projects through the issuance of Tax Increment Financing Bonds. 49 Lynnhaven Mall Expansion: The area of the City around Lynnhaven Mall was established as a TIF district by ordinance approved by City Council on June 9, 1998. The expansion of one of the largest shopping malls in Virginia accommodates several upscale stores, a new entertainment complex and a themed restaurant. The City is committing $11.5 million in future real estate taxes for a parking facility and related improvements to leverage an approximate $100 million in additional private investment. The expansion increased the net leasable area by 200,000 square feet, to 1.33 million. The City benefits from increased retail, :restaurant, admission and business license and property taxes. As of June 30, 2008, $12,610,720 in incremental real estate taxes have been collected in the Lynnhaven Mall TIF Special Revenue Fund. Under the agreement with the developer, the City will provide certain TIF revenues to the developer, if available, to pay for the public infrastructure. The City did not issue any debt for this project. Sandbridge Beach Restoration Program: The Sandbridge area of the City was established as a TIF district by ordinance approved by City Council on December 1, 1998. An important real estate and aesthetic asset to the City, this area has long battled sand erosion. The City continues to pursue a multi - front strategy of funding sand replenishment, including seeking federal funds, using local funds, and establishing a Special Service District. The use of TIF is another method to ensure stability to this area and to ensure that the primary beneficiaries of the program fund the bulk of the improvements. As of June 30, 2008, $38,735,043 in incremental real estate taxes have been collected for sand replenishment, of which $26.8 million was declared excess and returned to the General Fund over the last three years. No debt has been issued or is planned to be issued for this program. The Town Center of Virginia Beach: The southern part of the Pembroke area of the City was established as a TIF district by ordinance approved by City Council on November 23, 1999. The district is called Central Business District -South. When fully developed, the 33 -acre core area will feature "Class -A" high-rise office space, upscale retail space, hotels, restaurants and upscale residential apartments and condominiums, all within a "village green" park setting. The Town Center is supported by free public parking in several enclosed parking garages set within the center. The City has committed approximately $16 million to provide the public infrastructure and over $68 million to pay for the parking garages and other public components. In addition, the City has funded $35 million of the $46.7 million Performing Arts Center. The City's investment leverages over $300 million of private sector investment. The City benefits from increased personal, retail sales, admissions, restaurant, utility and business property and license taxes. The Virginia Beach Development Authority ("VBDA") issued on June 14, 2002 its $23,855,000 Revenue bonds (taxable and tax-exempt) to acquire a public parking garage in Town Center. On September 9, 2003, the VBDA issued $165,000,000 Public Facility Revenue Bonds, with a portion of the proceeds being used for the construction of two parking garages in Town Center. On May 1, 2005, VBDA issued $103,900,000 of Public Facility Revenue Bonds to fund various City projects and VBDA initiatives. On June 30, 2007, the VBDA issued an additional $100,865,000 of Public Facility Revenue Bonds (taxable and tax-exempt) to fund various City projects and VBDA initiatives. It is expected that real estate tax revenues generated in the Town Center TIF District, along with certain other tax revenues, will be sufficient to pay the debt service on these VBDA bond issues. If such revenues are insufficient, the City may impose an increased real estate tax in the special tax district at Town Center to recover any shortfall. The tax increment revenues and special taxes are not pledged to the payment of the VBDA bonds. As of June 30, 2008, $15,332,695 in TIF revenues have been collected in the Town Center Special Revenue Fund. See the section entitled "Other Appropriation -Based Debt through the VBDA" for further discussion on these VBDA bonds. Impact of Future Economic Development on City Debt The City, over a number of years, has been developing a strategy for the development and redevelopment of certain areas in the City that will be a critical element of the City's future economic 50 vitality. Targeted areas include the further development of the oceanfront to complement the recently completed convention center, including, for example, a convention center headquarters hotel and entertainment venues. Other targeted development involves public investment in transportation initiatives in the City that will also likely require additional debt. The use of public-private partnerships is a critical piece in this potential development. The public portion of these yet unnamed projects could involve additional debt not yet identified in the City's Capital Improvement Program. Comprehensive Plan The City's most recent Comprehensive Plan was adopted on December 2, 2003. Ahong some of the key planning policies embodied in this Plan are urban and rural growth management strategies, including the Green Line concept, economic development opportunities, transportation and other public facility improvements, care of the environment, housing, historic resource management, neighborhood preservation and community aesthetics. By adopting these key provisions of the Comprehensive Plan, the City has committed itself to advancing sound planning policies that ensure a fair and workable balance between the supply of public service delivery systems and the demand placed on those systems by existing and future land uses. The comprehensive planning policies of the City are designed to achieve enhanced and manageable land development and redevelopment within defined Strategic Growth Areas ("SGA") (north of the Green Line and the Princess Anne area, formerly called the Transition Area). The development of urban infrastructure is focused on serving future growth creating higher quality land uses, thereby expanding the City's taxable revenue base without compromising the level of service provided by the public infrastructure. Another complementary strategy provided by the Green Line and other related comprehensive planning policies is to check sprawling development. By preventing future sprawl through the designation of SGAs for appropriate urban development, the City avoids net negative fiscal impacts for related capital and operating expenses that are too often linked to such development patterns. The land use planning guidance provided by the Comprehensive Plan along with the strong public demand to live and work in Virginia Beach can continue the value of growth in Virginia Beach into the foreseeable future. In addition to adequate capacity for growth in the northern section of the City, the City's land use policies provide reasonable levels of rurally compatible growth in the southern part of the City. Special amendments to the Comprehensive Plan, adopted in 2005, reinforce the City's support for the military as an integral part of the community. In addition, the Rural Preservation element of the Comprehensive Plan and the Agricultural Reserve Program, adopted by City Council in 1995, are major tools to promote the preservation of farmland and the rural way of life. The Comprehensive Plan is a dynamic instrument and City Council periodically reviews, enhances and amends the Plan when appropriate. A number of specific area planning documents have been adopted by City Council and added to the Comprehensive Plan by reference. These include the Resort Area Plan, Northampton Strategic Growth Area Plan, Shore Drive Corridor, the Laskin Road Corridor, the Princess Anne Corridor and a refinement of the planning policies affecting the Transition Area. Since 1971, the City Council has periodically revised and adopted the City's Master Transportation Plan, as needed, to address, in a comprehensive fashion, the need for an efficient, cost- effective and multimodal transportation system. This policy document, which is a component of the Comprehensive Plan, describes the characteristics and establishes transportation planning policies for Virginia Beach. The Plan also provides planning guidance for bikeways, scenic easements, and other similar features related to the City's major roadway system. Decisions affecting the implementation of land use and transportation policies are based, in large measure, upon the guidance provided in the City's Comprehensive Plan and Master Transportation Plan. 51 Capital Improvement Program The City's six-year Capital Improvement Program ("CIP") provides for improvements to the City's public facilities, along with the means of financing these improvements. The first year of the program constitutes the capital budget for the current fiscal year; the remaining years serve as a planning guide. The CIP time table coincides with that of the Operating Budget, and both are presented to City Council in early Spring. The approved CIP is the result of a process that balances the need for public facilities against the fiscal capability for the City to provide for these needs. It is the City's policy to fund individual capital projects of less than $250,000 through General Fund appropriations (pay-as-you-go financing). Proposed Capital Improvement Program Fiscal Years 2009 through 2014 Second Year Amendments On March 24, 2009, the City Manager presented to City Council the proposed Capital Improvement Program for the second year update for Fiscal Years 2009 through 2014. The primary focus of the program continues to be maintaining, updating, renovating and replacing aging infrastructure with 54% of total funding for these purposes. The second year update of the program, Fiscal Year 2010, totals $216,129,109, which is a decrease of 12% compared with the amended Fiscal Year 2009 Capital Budget of $245,419,272. The following tables provide the sources of funding for the six-year program and the project allocations: Sources of Funding Biennium 52 Amended Capital Budget Total Appropriations Year 1 Year 2 Years Tyne of Financing Resources to Date FY 2009 FY 2010 3 thru 6 Pay -As -You -Go $ 707,583,936 $ 276,029,223 $ 70,398,799 $ 54,884,677 $ 306,271,237 General Fund Undesignated Fund Balance 145,376,233 68,638,454 14,259,232 23,912,998 38,565,549 Other Fund Balance/Retained Earnings 209,294,405 130,777,047 25,864,065 31,950,629 20,702,664 State 238,464,413 166,530,305 25,125,608 7,625,000 39,183,500 Federal 33,171,637 10,337,637 12,194,000 10,640,000 - Bonds/Lease Purchases 873,420,850 366,473,731 93,489,005 83,902,805 329,555,309 Other 30,077,773 21,524,210 4,088,563 3,213,000 1,252,000 Total Financing — All Sources $ 2,237,389,247 $ 1,040,310,607 $ 245,419,272 $ 216,129,109 $ 735,530,259 52 Proiect Class Schools Roadways Buildings Parks and Recreations Utilities Coastal Economic and Tourism Development Communications and Information Technology Total Capital Improvement Program Summary of Project Allocations 111,809,995 41,092,929 24,802,977 5,254,598 40,659,491 $ 2,237,389,247 $1,040,310,607 $ 245,419,272 $ 216,129,109 $ 735,530,259 Declining State revenues will take a particular toll on the Schools and Roadway Capital Improvement Programs (CIP). The State has reduced School construction funding and retained lottery funding instead of providing it to the localities, which reduced the School CIP by $40.9 million over the remaining five years of the amended FY 2008-09 through FY 20013-14 CII'. As such, the Schools CIP includes no State lottery or construction funds and no pay-as-you-go financing over the first three years. To mitigate some of the reduction in funding, the School system has used $14 million of fund balance in FY 2009-10. The projects most significantly impacted by these funding decreases are the replacement of Kellam High School and Princess Anne Middle School, and the John B. Dey Elementary School Modernization project. It is possible that these projects could receive a portion of the unallocated Federal stimulus funds received by the School System. Because of budgetary reductions at the State level, Virginia Department of Transportation (VDOT) funding for the Urban Construction Initiative program has been eliminated for the period FY 2009-10 through FY 2013-14. This results in a loss of ,the remaining $13 million in funding directly appropriated by the City for roadway projects and the loss of $37.5 million in legacy funding provided by VDOT. The City is applying for Federal stimulus (the American Recover and Reinvestment Act of 2009) funding to offset the total elimination of State roadway construction funding, and the City has been notified of $10.6 million to be used for the Witchduck I expansion project (capital project #2-931). As a result, construction schedules for Witchduck Road — Phase II and Nimmo Parkway — Phase V-A will be delayed at least three years, delaying the City's ability to relieve traffic congestion in these areas of the City. Other projects delayed beyond FY 2014 include Elbow Road — Phase II, Laskin Road — Phase II, and Indian River Road — Phase VII. Funding was transferred from these projects to ensure that higher City Council priority projects could continue to be funded and remain on schedule, such as Princess Anne Road — Phase IV expansion/congestion relief project and Princess Anne Road/Kempsville Road/Witchduck Road Intersection expansion/congestion relief project. Examples of additional funding provided to projects in the CIP include: (1) $4 million for roadway maintenance in terms of repaving and reconstruction; (2) $15.9 million over the first three years of the CIP period for Laskin Road Gateway — Phase IA to further economic development and improve transportation in the City's resort area, and $10.6 million from Federal stimulus for Witchduck Road - Phase I; (4) $260,000 for a walkway in the resort area connecting the boardwalk to a marina across a waterway (Rudee Inlet) to improve pedestrian safety, (3) $150,000 for the Aquarium/Owls Creek Master Plan to address long-term economic development in that area of the City; (4) $417, 573 for renewal and replacement program for the Sportsplex and US Field Hockey facilities; and (5) $200,000 to initiate a historic acquisition revolving fund. 53 Biennium Amended Capital Budget Estimated Appropriations Year 1 Year 2 Years Total Cost to Date FY 2009 FY 2009-10 3 thru 6 $ 577,004,033 $ 273,261,953 $ 68,338,916 $ 52,369,308 $ 167,033,856 558,872,084 260,621,664 52,928,655 56,303,747 189,018,018 155,958,098 77,512,065 19,530,489 16,778,606 42,136,938 87,519,516 26,552,892 10,447,053 10,325,175 40,194,396 426,319,712 195,088,126 39,349,131 46,526,159 145,356,296 134,026,425 87,207,415 8,563,402 7,690,938 30,564,670 201,879,384 78,973,563 21,459,649 20,880,578 80,566,594 111,809,995 41,092,929 24,802,977 5,254,598 40,659,491 $ 2,237,389,247 $1,040,310,607 $ 245,419,272 $ 216,129,109 $ 735,530,259 Declining State revenues will take a particular toll on the Schools and Roadway Capital Improvement Programs (CIP). The State has reduced School construction funding and retained lottery funding instead of providing it to the localities, which reduced the School CIP by $40.9 million over the remaining five years of the amended FY 2008-09 through FY 20013-14 CII'. As such, the Schools CIP includes no State lottery or construction funds and no pay-as-you-go financing over the first three years. To mitigate some of the reduction in funding, the School system has used $14 million of fund balance in FY 2009-10. The projects most significantly impacted by these funding decreases are the replacement of Kellam High School and Princess Anne Middle School, and the John B. Dey Elementary School Modernization project. It is possible that these projects could receive a portion of the unallocated Federal stimulus funds received by the School System. Because of budgetary reductions at the State level, Virginia Department of Transportation (VDOT) funding for the Urban Construction Initiative program has been eliminated for the period FY 2009-10 through FY 2013-14. This results in a loss of ,the remaining $13 million in funding directly appropriated by the City for roadway projects and the loss of $37.5 million in legacy funding provided by VDOT. The City is applying for Federal stimulus (the American Recover and Reinvestment Act of 2009) funding to offset the total elimination of State roadway construction funding, and the City has been notified of $10.6 million to be used for the Witchduck I expansion project (capital project #2-931). As a result, construction schedules for Witchduck Road — Phase II and Nimmo Parkway — Phase V-A will be delayed at least three years, delaying the City's ability to relieve traffic congestion in these areas of the City. Other projects delayed beyond FY 2014 include Elbow Road — Phase II, Laskin Road — Phase II, and Indian River Road — Phase VII. Funding was transferred from these projects to ensure that higher City Council priority projects could continue to be funded and remain on schedule, such as Princess Anne Road — Phase IV expansion/congestion relief project and Princess Anne Road/Kempsville Road/Witchduck Road Intersection expansion/congestion relief project. Examples of additional funding provided to projects in the CIP include: (1) $4 million for roadway maintenance in terms of repaving and reconstruction; (2) $15.9 million over the first three years of the CIP period for Laskin Road Gateway — Phase IA to further economic development and improve transportation in the City's resort area, and $10.6 million from Federal stimulus for Witchduck Road - Phase I; (4) $260,000 for a walkway in the resort area connecting the boardwalk to a marina across a waterway (Rudee Inlet) to improve pedestrian safety, (3) $150,000 for the Aquarium/Owls Creek Master Plan to address long-term economic development in that area of the City; (4) $417, 573 for renewal and replacement program for the Sportsplex and US Field Hockey facilities; and (5) $200,000 to initiate a historic acquisition revolving fund. 53 Funding for Water & Sewer and Storm Water Utility projects is increasing. There are several factors driving this increase, including an unfunded State and Federal mandate regarding sanitary sewer rehabilitation and critical infrastructure enhancements to the City's Storm Water Management System. The water and sewer rehabilitation projects are being addressed through water and sewer rate increases, as shown on the table below and through use of water and sewer revenue bonds authorized in the maximum amount of $13 rrdllion for FY 2009 and $17 million proposed for FY 2010. The stonn water program is designed to meet the standards of the Clean Water Act and improve the quality of the City's lakes and waterways. To fund these needs, City Council approved Storm Water Utility fee increases of two cents per year for the next three years to provide additional funding to address the Storm Water Infrastructure Rehabilitation and Water Quality Enhancements projects, as well as pay debt service on bonds issued for the Rosemont Forest Drainage Improvements. The fee will be as shown below: Storm Water Utility Equivalent Residential Unit Rate Increase FY FY FY FY Rate/Charge 2008 2009 2010 2011 ERU fee rate per day 18.1 -cents 20.1 -cents 22.1 -cents 24.1 -cents This equates to an annual increase of $7.30 per year for three years and is expected to generate $25.8 million over the six-year CIP period. In addition, the Fiscal Year 2009 CIP authorizes storm water revenue bonds in the maximum amount of $6 million to improve and expand the storm water system. Concurrently, the City continues to pursue projects that will stimulate and grow the economy. City staff is evaluating several economic development projects, including the Dome site development and Convention Center Headquarters hotel that are being considered. Also, City Council adopted a new Economic Development project entitled the Strategic Growth Area Program that will receive a total of $18 million over the six-year Capital Improvement Program period, or $3.5 million annually. Funding is derived from an increase in the Cigarette tax and current revenues. This program will begin to move forward on the strategic growth areas identified in the City's adopted Comprehensive Plan to help grow the local economy, focus on revitalizing and enhancing the resort area, and positively impact the surrounding neighborhoods in strategic growth areas. 54 Water and Sanitary Sewer Rate Increases FY FY FY FY FY FY Rate/Charge 2006 2007 2008 2009 2010 2011 Water service availability charge $3.75 $4.10 $4.10 $4.10 $4.10 $4.10 per meter (charge; for 5/8" meter shown) Water usage rate per 1,000 gallons $3.65 $3.70 $3.80 $3.95 $4.10 $4.10 (last reduced July 1999 & remained $3.55 until FY 2005-2006) Sanitary sewer monthly charge (for $15.92 $16.88 $17.72 $18.61 $19.54 $19.54 a single family residence shown) Source: City Department of Public Utilities The stonn water program is designed to meet the standards of the Clean Water Act and improve the quality of the City's lakes and waterways. To fund these needs, City Council approved Storm Water Utility fee increases of two cents per year for the next three years to provide additional funding to address the Storm Water Infrastructure Rehabilitation and Water Quality Enhancements projects, as well as pay debt service on bonds issued for the Rosemont Forest Drainage Improvements. The fee will be as shown below: Storm Water Utility Equivalent Residential Unit Rate Increase FY FY FY FY Rate/Charge 2008 2009 2010 2011 ERU fee rate per day 18.1 -cents 20.1 -cents 22.1 -cents 24.1 -cents This equates to an annual increase of $7.30 per year for three years and is expected to generate $25.8 million over the six-year CIP period. In addition, the Fiscal Year 2009 CIP authorizes storm water revenue bonds in the maximum amount of $6 million to improve and expand the storm water system. Concurrently, the City continues to pursue projects that will stimulate and grow the economy. City staff is evaluating several economic development projects, including the Dome site development and Convention Center Headquarters hotel that are being considered. Also, City Council adopted a new Economic Development project entitled the Strategic Growth Area Program that will receive a total of $18 million over the six-year Capital Improvement Program period, or $3.5 million annually. Funding is derived from an increase in the Cigarette tax and current revenues. This program will begin to move forward on the strategic growth areas identified in the City's adopted Comprehensive Plan to help grow the local economy, focus on revitalizing and enhancing the resort area, and positively impact the surrounding neighborhoods in strategic growth areas. 54 Prior Year CIPs - Actual Capital Project Expenditures The following table presents a summary of actual capital project expenditures by category for Fiscal Years 2007 and 2008. The expenditures for each year represent numerous funding sources (bonds, general appropriations, fund balances, retained earnings, state and federal sources, etc.) and unspent funds from various prior year capital budgets. ACTUAL CAPITAL PROJECT EXPENDITURES Cate2ory FY 2006-07 FY 2007-08 General Governmental $185,284,480 $187,964,869 Schools 74,751,244 72,843,291 Public Utilities 17,835,285 22,946,569 Storm Water Utilities 5.588.068 6.838.827 TOTAL $283,452,027 290.593.556 Source: City Department of Finance. 55 SECTION FIVE: FINANCIAL INFORMATION Basis of Accounting and Accounting Structure All of the City's and School Board Component Unit Governmental Funds, Expendable Trust Funds, and Agency Funds (assets and liabilities) are reported under the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become susceptible to accrual (i.e., measurable and available). "Measurable" means the amount of the transaction can be determined and "'available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes as available if they are collected within 45 days after year end. Expenditures are recognized in the accounting period in which the corresponding liabilities are incurred, if measurable (except for unmatured interest on general long- term debt which is recognized when due and paid). criteria. The following is a list of the major revenue sources which meet the "susceptible to accrual" General Property Taxes Interest on Deposits and Investments General Sales Tax Revenue from Commonwealth Utility Taxes Revenue from Federal Government Hotel Taxes Amusement Taxes Restaw•ant Taxes All City and School Board Component Unit Proprietary Funds are reported under the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. Unbilled Water and Sewer and Storm Water Enterprise Fund accounts receivable for utility services provided through. June 30 are included in the financial statements. The City operates on a July 1 through June 30 Fiscal Year. City of Virginia Beach Development Authority The Virginia Beach Development Authority initially was established for the purposes of attracting new industries and the expansion of existing industries. Over time, the Authority's powers have been expanded and now include the power to undertake financings for the City. In addition, the Authority is authorized to issue industrial development bonds after approval by the City Council and to purchase land to improve and sell for development. These bonds do not constitute indebtedness of the City but are secured solely by revenues from the organization on whose behalf the bonds were issued. The Authority's Commissioners are appointed by City Council. The City does not have legal title to any of the Authority's assets, nor does it have a right to the Authority's surpluses. However, in accordance with Governmental Accounting Standards Board Statement 14, the Authority has been discretely presented in Appendix A. In February 2003, City Council approved a change to the loan amount and terms governing the City's loan to the Authority. Under this restructuring, the City extinguished the Authority's obligation to pay the existing accrued interest on this loan. The remaining principal, $6.2 million as of February 2003, was restructured into two non-interest bearing notes. Note one in the amount of $4.8 million will be payable from the net proceeds of a sale or ground lease of 31' Street Property. Note two in the amount of $1.4 million will be secured by remaining parcels at Corporate Landing and Oceana West, payable from 20% of net proceeds from land sales. Remaining proceeds will be used to fund infrastructure and 56 strategic land acquisitions. No additional debt may be issued by the Authority without prior approval of the City Council. Hampton Roads Transportation District Commission The City's financial statements include its share of the operating cost of the regional mass transit operations of the Hampton Roads Transportation District Commission. For Fiscal Year 2009, the City's share of budgeted operating costs are $2,879,034. City Financial Statements On July 1, 2001, the City adopted the Governmental Accounting Standards Board ("GASB") Statement No. 34, "Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments." This statement, known as the Reporting Model, provides for the most significant change in financial reporting for state and local governments for over twenty years. The basic financial statements include both government -wide (based upon the City as a whole) and fund financial statements. While the previous model emphasized fund types (the total of all funds of a particular type), in the new reporting model the focus is on either the City as a whole or major individual funds (within the fund financial statements). Both the government -wide and fund financial statements (within the basic financial statements), categorize primary activities as either governmental or business -type. In the government -wide Statement of Net Assets, both the governmental and business -type activities columns are presented on a consolidated basis by column and are reflected on a full accrual, and economic resources basis, which incorporates long-term assets and receivables as well as long-term debt and obligations. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The program revenues must be directly associated with the function (public safety, public works, etc.) or a business -type activity. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. The City does not allocate indirect expenses. funds: Fund financial statements are provided for governmental funds, proprietary funds, and fiduciary Major governmental funds are: The General Fund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. Revenues are derived primarily from property and other local taxes, state and federal distributions, licenses, permits, charges for service, and interest income. A significant part of the General Fund's revenues is used principally to finance the operations of the City of Virginia Beach School Board. The Capital Projects Fund is used to account for the financial resources for the acquisition or construction of major capital facilities within the City. Major proprietary funds are: 57 The Water and Sewer Fund provides water service and sanitary sewer waste collection and transmission services to Virginia Beach citizens and accounts for operations that are financed in a :manner similar to private business enterprises. The Storm Water Fund accounts for the activities of the Storm Water Utility which charges a fee for operational and capital needs for Storm Water management in the City. Additionally, the City reports the following fund types: Special Revenue Funds account for revenue derived from specific sources that are restricted by legal and regulatory provisions to finance specific activities. Internal Service Funds account for the financing of goods and services provided to other departments and agencies of the City or to other governmental units on a cost reimbursement basis. Fiduciary Funds are used to account for assets held by the city in a trustee capacity or as an agent for individuals, private organizations and other governmental units. Investment Policies and Practices The City of Virginia Beach, as a political subdivision of the Commonwealth, is limited to investments permitted by the Code of Virginia of 1950, as amended. In addition, various bond resolutions and a City Council adopted investment policy further restrict the types of allowable investment activities. The City's investment practices are generally described in footnote 7 of the City's financial statements, included in Appendix A hereto. The City Treasurer is responsible for the investment of City funds. The City Treasurer invests the City's funds using internal active management, with external trustees and trust funds taking possession of applicable investments. Within the state permitted guidelines and the adopted investment policy, the City Treasurer limits the City's investments to the State Treasurer's Local Government Investment Pool, collateralized certificates of deposit, repurchase agreements, prime quality commercial paper, and prime quality "fed eligible" bankers' acceptances. The City does not invest in "derivative" securities, utilize reverse repurchase agreements, nor otherwise leverage its investment portfolio. The City matches the maturity of its investments to cash flow needs to assure cash availability as necessary. Certificate of Achievement The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report ("CAFR") for Fiscal Year 2007. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report that substantially conforms to the high standards for financial reporting as promulgated by the GFOA. The City has submitted the application and associated documentation for Fiscal Year 2008. A Certificate of Achievement is valid for one year only. The City has been awarded a Certificate of Achievement (called a Certificate of Conformance prior to 1985) for its Comprehensive Annual Financial Report for 28 of the past 29 years. 58 The City was also awarded the Certificate of Achievement for Distinguished Budget Presentation from the GFOA for its Fiscal Year 2009 budget. The City also received this award for 21 of the last 23 years. Budgetary Process The City Charter requires the City Manager to submit a balanced, proposed operating budget to the City Council at least 90 days before the beginning of each fiscal year which begins July 1. Each department of the City prepares its own budget request for review by the City Manager. The City Council is required to hold a public hearing on the budget at which time all interested persons have the opportunity to comment. If the proposed operating budget is not legally adopted by the City Council by June 1, the operating budget submitted by the City Manager will have full force and effect as if it had been adopted by the City Council. The School budget is prepared by the School Board, transmitted to the City Manager for review, and then submitted to the City Council for consideration as part of the City's general operating budget. Of the General Fund revenues estimated to be generated from the real estate, personal property, general sales, utility, cellular telephone, business license taxes, and cable television franchise fees, 51.3 percent is allocated to the School Board to fund the local share of the School Board's operating budget, local debt service costs and pay-as-you-go capital improvements. The remaining 48.7 percent of such revenues are allocated to the City. If the School Board determines that additional funding is needed, the School Board Chairman makes a formal written request to the City Council, and the School Board holds a public hearing on the issue. The City Manager is authorized to transfer appropriations up to a maximum of $100,000. Transfers in excess of $100,000 require City Council approval. Transfers between $25,000 to $100,000 are reported to City Council on a monthly basis. Additional appropriations must be offset by additional estimated revenues and/or a transfer from the proper undesignated fund balance and require a public hearing if the amount of the additional appropriation exceeds one percent of the total revenue in the approved budget. Unexpended appropriations (except for the Capital Projects and Grants Funds) lapse and are closed to the proper fund balance at the end of each fiscal year. The appropriation for the subsequent fiscal year is increased by the amount necessary to satisfy the outstanding encumbrances at June 30 of each fiscal year. In the instance of schools, if at the end of the fiscal year, the actual revenues generated from the revenues designated for schools exceed the revenues that were estimated, the amount of excess revenues are shared by the City and the School Board in the same proportion that estimated revenues were shared, provided, however, that such excess revenues will only be shared after the necessary resources for the Fund Balance Reserve Policy have been determined and fulfilled. Conversely, if revenues fall below the estimates, the School Board will be expected to reduce expenditures up to 51.3 percent of the anticipated shortfall. The operating budget includes a portion of the funding for the Capital Improvement Program ("CIP"). General appropriations used to finance capital projects are shown both in the operating budget and in the CIP. The Department of Management Services annually prepares a six-year CIP. Because activities of capital projects often go beyond a fiscal year period, the accounting, encumbering, and controlling of the funds are based upon the length of project activities. Similarly, federal and state grants in the Grants and Grants Consolidated Funds are budgeted separately from the operating budget because these revenues do not necessarily coincide with the City's fiscal year. 59 Each capital lease obligation has a subject -to -appropriation clause which generally states that each fiscal year's lease payments are subject to appropriation by City Council. These capital lease appropriations are offset by an equal amount of estimated revenue (other financing sources), and are functionally budgeted in the General Debt Service Fund. Proposed Budget -Fiscal Year 2010 On March 24, 2009, the City Manager presented to City Council the proposed Operating Budget for Fiscal Year 2010, starting July 1, 2009. The proposed budget of $1,731,551,161 is a 1.9% decrease over the FY2009 adjusted budget. The following table summarizes the adjustments for City and Schools to meet anticipated decreases in revenues: As the table below illustrates, when the Federal stimulus funding and unallocated State funding that has not been appropriated by the Schools is added to the School's FY 2009-10 Revised Budget it would actually grow by 1%. At this time the Schools are not sure if this funding will be restricted by use, which means it could be restricted to special programs or the Capital Improvement Program. FY2008-09 FY 2009-10 Adjusted FY2009-10 _ Categories Budget Proposed Budget City Operations $ 731,640,600 $ 727,743,667 City Debt Service 100,027,282 102,225,759 Pay -As -You -Go 56,078,423 54,884,677 _City Total City 887,746,305 884,854,103 School Operation 822,429,375 800,621,168 School Debt Service 41,154,429 44,183,674 City Manager Adjustment - 1,892,216 Pay -As -You -Go 13,936,308 - _Schools Total Schools 877,520,112 846,697,058 Total Operating Budget $1,765,266,417 $1,731,551,161 As the table below illustrates, when the Federal stimulus funding and unallocated State funding that has not been appropriated by the Schools is added to the School's FY 2009-10 Revised Budget it would actually grow by 1%. At this time the Schools are not sure if this funding will be restricted by use, which means it could be restricted to special programs or the Capital Improvement Program. The proposed Operating Budget, was guided by the following strategies: (1) minimize the impact on service delivery and program; (2) maintain the City's strong financial position; (3) protect the future viability of the City's economy; (4) balance the deficit across departments, employees, taxpayers, and revenue dedications; and (5) be mindful of long-term infrastructure needs in the Capital Improvement Program. FY 2008-09 FY 2009-10 Adjusted Proposed Percentage Categories Budget Budget Change Schools Total Budget $877,520,112 $846,697,058 Unallocated State School Funding - 1,225,069 Unallocated Federal School Funding - 48,616,827 Total Schools Capacity $887,520,112 $896,538,954 +1.0% The proposed Operating Budget, was guided by the following strategies: (1) minimize the impact on service delivery and program; (2) maintain the City's strong financial position; (3) protect the future viability of the City's economy; (4) balance the deficit across departments, employees, taxpayers, and revenue dedications; and (5) be mindful of long-term infrastructure needs in the Capital Improvement Program. Highlights of the Fiscal Year 2010 proposed budget are: • Total revenues are projected to decrease by 1.9% from the adjusted FY2008-2009 budget, representing the steepest decline in the City's history. Consumer spending related revenues such as personal property and general sales tax represent some of the more significant decreases. • While the undesignated General Fund Balance will remain within Council's policy of 8-12% of subsequent year's revenues, the City will rely on sources of other fund balances for short-term use to mitigate service reductions. Those fund balances include City/School Health Insurance, Agriculture Reserve Program, School Special Revenues, Major Projects, and Tourism Growth Investment Fund. • The real estate tax rate is proposed to remain at $0.89 per $100 of assessed value. • While no increase in tax rates, there are some fee adjustments in Parks and Recreation and a new library fee of $40 for non-residents. • While some positions are added to the budget for new programs, there is a net reduction in full- time equivalent positions for Schools of 55 and City of 55 for a total of 110 positions. Due to vacancies no employees will be laid off. • Funding for employee salary increases was eliminated. This is the second time in the last eighteen years in which the City was unable to fund salary increases. • City and Schools will continue the health care contributions at $5,400 per employee annually. The budget includes an additional $4 million in City funding and $2.9 million in School funding to meet the requirements of GASB 45. • Once the additional $1.2 million of state funding to Schools is reflected in the budget, it is anticipated that state revenue reductions will total approximately $22.6 million in the revised Fiscal Year 2010 .budget. Of the net reduction, $21.8 million affects Schools. • For Fiscal Year 2010, with the additional State funding ($1.2 million) and Federal Stimulus funding ($48.6 million), School funding will increase by $8.7 million or nearly 1%. • New City programs in the budget include: A new Animal Shelter Manager and Veterinarian program, enhanced cold case squad for Police, expanded programs in Housing and Human Services with 100% revenue coverage and a new Strategic Growth Area office to begin implementing the Strategic Growth Area plans. 61 SUMMARY OF ACTUAL, ADOPTED AND PROPOSED BUDGETS Fiscal Years 2008-2010 APPROPRIATIONS % Change Education $764,443,379 FY 2009 FY 2010 FY 2010 FY 2009 General Government FY 2008 Adjusted Proposed % of To Debt Service Actual Budget Budeet Total FY 2010 REVENUES 89,908,112 111,415,624 114,232,805 6.60% 2.53% General Property Taxes $613,160,793 $641,830,861 $619,262,662 35.76% -3.52% Revenue from Commonwealth 487,128,783 513,633,249 495,153,924 28.60% -3.60% Other Local Taxes 256,535,938 265,045,561 256,380,383 14.81% -3.27% Charges for Services 157,507,373 167,986,391 171,937,329 9.93% 2.35% Revenue from the Federal Govt 100,264,458 106,910,488 113,790,705 6.57% 6.44% Use of Money & Properry 27,453,499 18,770,010 16,581,340 0.96% -11.66% Miscellaneous Revenue 13,838,397 15,017,690 16,561,697 0.96% 10.28% Specific Fund Reserves 22,187,282 17,788,600 25,290,263 1.46% 42.17% Permits, Fees, & Licenses 5,143,300 5,854,200 4,401,926 0.25% -24.81% Fines & Forfeitures 6,128,859 7,950,911 8,526,239 0.49% 7.24% Non -Revenue Receipts 9,201,565 4,478,456 3,664,693 0.21% -18.17% Total Revenues $1,698,550,247 $1,765,266,417 $1,731,551,161 100.00% APPROPRIATIONS Education $764,443,379 $863,583,804 $846,697,058 48.90% -1.96% General Government 235,761,872 248,341,105 248,404,486 14.35% 0.03% Debt Service 118,447,418 100,027,282 102,225,759 5.90% 2.20% Human Services 89,908,112 111,415,624 114,232,805 6.60% 2.53% Public Works 94,273,782 97,016,660 99,035,056 5.72% 2.08% Police 86,695,598 87,605,689 87,549,084 5.06% -0.06% Public Utilities 66,411,552 68,464,336 68,837,653 3.98% 0.55% Fire 42,241,859 43,308,729 43,213,479 2.50% -0.22% Capital Projects 61,851,186 70,014,731 54,884,677 3.17% -21.61% Parks & Recreation 39,715,598 42,983,859 42,497,222 2.45% -1.13% Reserve for Contingencies(') 0 15,630,979 7,069,217 0.41% N/A Libraries 15,963,313 16,873,619 16,904,665 0.98% 0.18% Total Appropriations $1,615,713,669 $1,765,266,417 $1,731,551,161 100.00% For FY2008, Reserve for Contingencies has been allocated during the fiscal year. Source: City Department of Finance. 62 General Government Revenues In Fiscal Year 2008, tax revenues accounted for 55.9 percent of general governmental revenue, State assistance 30.7 percent, federal sources 7.1 percent, and other sources 6.3 percent. The following table shows the City's Fiscal Year 2007-2008 actual revenues by source. General Governmental Revenues Fiscal Year 2007-2008 Revenues by Source(l) FY 2007 FY 2008 Increase (Decrease) from 2007 Source Amount Percent Amount Percent Amount Percent millions of Total millions of Total millions Chance Local Sources: General Property Tax $586.3 38.2% $627.7 39.5% $41.4 7.1% Other Local Taxes 252.5 16.5 260.2 16.4 7.7 3.0 Permits, Privilege Fees, and 5.4 0.4 5.0 0.3 (0.4) (7.0) Regulatory Licenses Fines and Forfeitures 5.7 0.4 6.2 0.4 0.5 7.0 From Use of Money and 23.6 1.5 25.8 1.6 2.2 9.0 Property Charges for Services 53.6 3.5 51.6 3.2 (2.0) (3.0) Miscellaneous 12.3 0.8 10.3 0.6 (2.0) (16.0) From Other Local 0_5 0_0 2_9 0_2 2_4 0_1 Governments Total Local 939.9 61.3 989.7 62.2 49.8 5.0 From Commonwealth 477.0 31.1 488.3 30.7 11.3 2.0 From Federal Government 116.3 7_6 112.2 7_1 4.1 3.0 Total Revenues $1,5 1 $1-590.2 100.0% $57.0 (1) Includes General, Special Revenues and Debt Service Funds Source: City Department of Finance. General Fund In accordance with the general practice of governmental units, the City records its transactions under various funds. The largest, the General Fund, is that from which all general costs of City government are paid and to which taxes and other revenues, not specifically directed by law or administrative action to be deposited in special revenue funds, are recorded. Examples of special revenue funds are the School Operating Fund, the School Grants Fund, and the Grants Consolidated Fund. The General Fund is comprised of revenue derived from ad valorem taxes, other local taxes, licenses, fees, permits, certain revenue from the federal and state governments, interest earned on invested cash balances, and other revenues. General Fund disbursements include the costs of general City government, transfers to the School Operating Fund for local share of school costs, and transfers to the Debt Service Funds to pay principal and interest on the City's general obligation bonds for other than water and sewer purposes. 63 Operating Data Ad valorem property taxes contributed 59.9 percent of the City's General Fund revenues in Fiscal Year 2008. The City levies an ad valorem tax on the assessed value of real and personal property located within the City. Other local taxes contributed 24.7 percent of the City's General Fund revenues in Fiscal Year 2008. These include: (1) a one percent local sales tax (collected by the state and remitted to the City); (2) a tax on consumer utility bills of 20 percent each for gas, electric, water, and telephone on bills up to $15 per month for residential classes and 15 percent on the first $625 per month and 5 percent on the amount between $625 and $2,000 for industrial and commercial classes; (3) a cigarette tax of 50 cents per pack; (4) property transfer recordation taxes; (5) an automobile license fee; (6) various business, professional and occupational taxes; (7) a eight percent hotel room tax; (8) a restaurant meal tax of five and one-half percent; (9) an amusement tax of 10 percent on gross admissions for certain events; and (10) a flat rate of $1.00 added to hotel room charges to fund the Tourism Advertising Program or improvements at Sandbridge. The following table shows the City's principal tax revenues by source for each of the last ten fiscal years. Growth in real property taxes and total tax revenues have averaged 7.7% and 6.8%, respectively, annually over the past ten years. PRINCIPAL TAX REVENUES BY SOURCE FISCAL YEARS 1999 THROUGH 2008 (1) Includes penalty & interest ($10 minimum) on delinquent collections. Source: City Department of Finance. An annual ad valorem tax is levied by the City on the assessed value of real property subject to taxation within the City as of July 1. The City assesses real property at 100 percent of its fair market value (with the exception of public service properties which are assessed by the State Corporation Commission). Real property taxes are due on December 5 and June 5 of the fiscal year in which they are levied. A penalty of ten percent of the tax owed or $10, whichever is greater, along with interest of 9.6 percent for the fust year, is assessed on delinquent taxes. Subsequent year's interest penalty rates are set by the City Council and are currently 8.4 percent. A portion of tangible personal property located within the City is also assessed an annual ad valorem tax. The assessed value of personal property is 100 percent of appraised value. Personal property taxes are due June 5, and delinquent payments are subject to the same penalties as described above for real property. The following table sets forth the assessed value of all taxable property in the City for the last ten fiscal years. Tax-exempt properties owned by federal and state governments, churches, and schools, 64 Real Personal General Restaurant Total Fiscal PropertT Property Sales Utility Meal Other Tax Year Taxes Taxes Tax Tax Tax Taxes Revenue 1999 $249,878,165 $76,016,201 $37,004,115 $30,594,776 $23,157,204 $61,927,958 $478,578,419 2000 263,916,207 90,545,837 38,212,293 32,094,368 24,436,808 64,175,064 513,380,577 2001 276,515,023 90,791,185 39,712,323 34,080,325 25,320,531 68,188,931 534,6089318 2002 293,591,325 96,878,086 40,619,190 41,755,840 31,887,442 73,883,628 578,615,511 2003 319,261,524 97,182,499 41,782,279 43,407,182 34,377,007 79,458,536 615,469,027 2004 347,360,112 106,726,610 46,328,049 45,778,363 38,144,787 92,406,133 676,744,054 2005 382,632,555 114,024,492 49,315,425 47,105,890 41,565,553 98,135,551 732,779,466 2006 397,431,699 129,482,648 51,391,606 47,778,078 45,025,727 105,702,298 776,812,056 2007 462,221,1.98 124,098,407 53,962,203 46,357,954 46,743,465 105,393,161 838,776,388 2008 4999241,014 128,475,060 54,071,427 50,521,820 48,069,618 107,535,059 887,913,998 (1) Includes penalty & interest ($10 minimum) on delinquent collections. Source: City Department of Finance. An annual ad valorem tax is levied by the City on the assessed value of real property subject to taxation within the City as of July 1. The City assesses real property at 100 percent of its fair market value (with the exception of public service properties which are assessed by the State Corporation Commission). Real property taxes are due on December 5 and June 5 of the fiscal year in which they are levied. A penalty of ten percent of the tax owed or $10, whichever is greater, along with interest of 9.6 percent for the fust year, is assessed on delinquent taxes. Subsequent year's interest penalty rates are set by the City Council and are currently 8.4 percent. A portion of tangible personal property located within the City is also assessed an annual ad valorem tax. The assessed value of personal property is 100 percent of appraised value. Personal property taxes are due June 5, and delinquent payments are subject to the same penalties as described above for real property. The following table sets forth the assessed value of all taxable property in the City for the last ten fiscal years. Tax-exempt properties owned by federal and state governments, churches, and schools, 64 among others, aggregating approximately $5,655,234,953 for Fiscal Year 2008, are not included in the table. The assessed value of real property in the City at June 30, 2008, was $59,946,762,727 (includes public service real property). HISTORICAL ASSESSED VALUE FISCAL YEARS 1999 THROUGH 2008 (1) Real property is assessed at 100 percent of fair market value. (2) Includes both real estate and personal property assessment. All public service property is taxed at the real estate tax rate except for vehicles. Note: For FY 2009, the Real Estate Assessor has recorded the FY 2009 Land Book as of July 1, 2008, at $56,673,434,204. This is a projected increase of 2.8% over the actual FY 2008 real property assessed value. In addition, the Assessor has presented to City Council on February 19, 2009, the projected FY2010 Land Book assessment for the City which totals $55,451,817,756, a 2.3% decrease over the FY2008 Land Book. Source: City Department of Finance. The City is required to levy taxes on the assessed value of real and personal property without limit as to the rate or amount to the extent necessary to pay principal of and interest on its general obligation bonds. The following table sets forth the City's tax rates and tax levies on real property for Fiscal Years 1998 through 2008 and the proposed rate for Fiscal Year 2009. 65 Public Real Percentage Personal Percentage Service Percentage Percentage Property Change Property Change Property Change Total Change Fiscal Assessed From Assessed From Assessed From Assessed From Year Value 1 Prior Year Value Prior Year Value 2 Prior Year Value Prior Year 1999 $19,880,386,330 4.26% $2,162,086,075 9.43% $656,859,261 4.13% $22,699,331,666 4.72% 2000 20,997,405,999 5.62% 2,723,557,700 25.97% 677,545,782 3.15% 24,398,509,481 7.49% 2001 22,085,451,417 5.18% 2,847,992,931 4.57% 705,956,994 4.19% 25,639,401,342 5.09% 2002 23,365,285,988 5.79% 3,049,294,683 7.07% 731,786,118 3.66% 27,146,366,789 5.88% 2003 25,949,245,358 11.06% 3,188,056,285 4.55% 753,259,714 2.93% 29,890,561,357 10.11% 2004 27,513,988,726 6.03% 3,478,701,901 9.12% 743,170,991 -1.34% 31,735,861,618 6.17% 2005 31,281,844,464 13.69% 3,606,778,780 3.68% 624,562,746 -15.96% 35,513,185,990 11.90% 2006 38,379,012,758 22.69% 3,710,964,218 2.89% 530,465,288 -15.07% 42,620,442,264 20.01% 2007 46,122,142,394 20.18% 3,787,921,076 2.07% 545,140,581 2.77% 50,455,204,051 18.38% 2008 55,146,390,999 19.57% 4,152,466,483 9.62% 647,905,245 18.85% 59,946,762,727 18.81% (1) Real property is assessed at 100 percent of fair market value. (2) Includes both real estate and personal property assessment. All public service property is taxed at the real estate tax rate except for vehicles. Note: For FY 2009, the Real Estate Assessor has recorded the FY 2009 Land Book as of July 1, 2008, at $56,673,434,204. This is a projected increase of 2.8% over the actual FY 2008 real property assessed value. In addition, the Assessor has presented to City Council on February 19, 2009, the projected FY2010 Land Book assessment for the City which totals $55,451,817,756, a 2.3% decrease over the FY2008 Land Book. Source: City Department of Finance. The City is required to levy taxes on the assessed value of real and personal property without limit as to the rate or amount to the extent necessary to pay principal of and interest on its general obligation bonds. The following table sets forth the City's tax rates and tax levies on real property for Fiscal Years 1998 through 2008 and the proposed rate for Fiscal Year 2009. 65 PROPERTY TAX RATES AND CHANGE IN TAX LEVY FISCAL YEARS 1999 THROUGH 2009 Percentage Tax rate per $100 of assessed value. Source: City Department of Finance. The following table sets forth information concerning the City's real property tax collection rate for each of its ten most recent fiscal years. Tax Rate Real Annual Fiscal on Real Property Change in Year Property (1) Tax Lew —_ Tax Lew 1999 $1.220 $246,389,536 4.07% 2000 1.220 264,436,560 7.32% 2001 1.220 280,963,485 6.25% 2002 1.220 305,058,532 8.58% 2003 1.220 327,953,650 7.51% 2004 1.220 341,740,132 4.20% 2005 1.196 378,178,905 10.66% 2006 1.024 393,544,291 4.06% 2007 0.990 461,816,439 17.35% 2008 0.890 495,310,853 7.25% 2009 0.890 506,779,057 2.26% Tax rate per $100 of assessed value. Source: City Department of Finance. The following table sets forth information concerning the City's real property tax collection rate for each of its ten most recent fiscal years. fl) Includes a 10% penalty ($10 minimum) on delinquent collections. Source: City Department of Finance. .: REAL PROPERTY TAX COLLECTION RATE FISCAL YEARS 1999 THROUGH 2008 Total (Net) Current Total Current Taxes Percentage Delinquent Total Collections Year Receivable Collected Collected Collections Collections (1) Current Lew 1999 $246,389,536 $241,376,374 98.0% $2,174,533 $243,550,907 98.8% 2000 264,436,560 259,883,741 98.3 6,516,069 266,399,810 100.7 2001 280,963,485 275,592,151 98.1 4,857,709 280,449,860 99.8 2002 305,058,432 299,331,985 98.1 6,806,446 306,138,431 100.4 2003 327,953,650 321,069,574 97.9 7,067,764 328,137,338 100.1 2004 341,740,132 341,071,848 99.8 9,568,857 350,640,705 102.6 2005 378,178,905 376,837,511 99.6 10,272,681 387,110,192 102.4 2006 412,206,130 405,093,036 98.3 12,820,511 417,913,547 101.4 2007 461,816,439 457,871,619 99.1 11,979,311 469,850,930 101.7 2008 495,310,853 488,477,348 98.6 9,697,323 498,174,671 100.6 fl) Includes a 10% penalty ($10 minimum) on delinquent collections. Source: City Department of Finance. .: TWENTY-FIVE PRINCIPAL TAXPAYERS FISCAL YEAR ENDED NNE 30, 2008 Source: City Assessor and Commissioner of the Revenue. 67 Real Property Taxpayer Business Assessed Value Armada Hoffler LLC Office/Retail/Vacant Land $ 314,222,700 Virginia Electric & Power Company Utility 307,541,552 Lynnhaven Mall LLC Shopping Mall 307,053,500 E.C.&A.F. Ruffin & B.L. Thompson Real Estate 230,688,553 Ramon W. Breeden, Jr. Apartments/Shopping Center 224,816,538 Pembrooke Square Associates Shopping Mall 209,748,228 Sadler at Ashville Park LLC Condominiums/Vacant Land 164,492,714 Atlantic Shores Cooperative, etc. Real Estate 145,010,140 Christian Broadcasting Network, Inc. Broadcasting 144,069,900 Kemps River Comer Associates Shopping Center 139,081,200 Verizon Virginia, Inc. Utility 136,932,415 F. Wayne McLeskey, Jr. Real Estate 132,816,147 Lake Gem H, LLC Shopping Center/Fast-Food 115,921,000 Westminister-Canterbury of Hampton Roads Real Estate 105,584,600 Thomas J. Jr. & Joan N. Lyons Hotels 105,002,900 Tidewater Oxford Limited Partnership Apartments 101,483,900 Watergate Treehouse Associates LP Apartments 97,078,200 Potter Properties Shopping Center 90,070,041 Higgs, Scott E. & Gale Levine Higgs Apartments/Shopping Center 88,519,400 Michael D. Sifen Real Estate 75,799,382 Windsor Lake Apartments, LLC Apartments/Shopping Center 66,222,300 Occidental Development Ltd. Apartments 62,059,300 Virginia Natural Gas Utility 54,964,230 Mountain Ventures Virginia Beach LLC Shopping Center 50,044,200 CLPF Town Square LP Apartments 48,240,000 Total $3,517.463.040 Note: Includes certain personal property taxed at real property rates as provided in Section 58.512.1 of the Code of Virginia, as amended. Source: City Assessor and Commissioner of the Revenue. 67 General Fund Operations The following table compares City General Fund revenues, expenditures, and changes in Fund Balance for Fiscal Years 2004 through 2008. EXPENDITURES Operating: Legislative 2004 2005 2006 2007 2008 REVENUES: 2,080,615 2,348,873 2,326,096 3,577,193 3,626,970 General Property Tares $447,173,507 $486,618,030 $513,727,723 $569,218,769 $610,096,658 Other Local Taxes 216,264,857 229,207,846 242,379,819 245,092,246 251,747,376 Permits, Privilege Fees and 5,226,392 5,050,051 5,834,259 5,400,602 5,008,807 Regulatory Licenses 11,265,837 10,468,272 11,861,215 13,873,307 13,655,598 Fines and Forfeitures 4,705,366 5,108,116 5,126,218 5,231,164 5,728,762 From Use of Money and Property 3,067,666 5,220,353 11,557,859 15,3929536 15,629,869 Charges for Services 7,053,878 9,528,158 10,744,770 14,557,284 12,037,882 Miscellaneous 4,924,829 5,986,477 6,055,748 7,689,190 6,266,065 From Other Local Governments 118,166 128,291 412,252 482,343 425,580 From Commonwealth 54,448,903 73,421,413 79,398,545 84,662,663 88,965,684 From Federal Government 18,554,945 22,848,309 23,370,611 22,470,454 22,524,598 Total Revenues $761.538.509 1843.117.044 $898.607.804 $970.197.251 $1218431.281 EXPENDITURES Operating: Legislative $ 969,139 $ 1,071,326 $ 1,139,038 $ 1,200,362 $1,184,474 Executive 2,080,615 2,348,873 2,326,096 3,577,193 3,626,970 Law 3,081,811 3,250,441 3,668,542 3,561,072 3,718,122 Finance 15,301,485 16,055,188 16,604,300 16,312,033 16,554,091 Human Resources 5,345,747 6,181,109 7,188,192 7,821,314 13,417,794 Judicial 11,265,837 10,468,272 11,861,215 13,873,307 13,655,598 Health 2,822,446 2,849,083 2,933,999 3,116,338 3,232,255 Human Services 30,366,714 72,032,421 76,353,098 80,665,878 87,468,297 Police 66,657,302 69,990,282 72,883,231 79,195,791 86,681,984 Public Works 58,303,898 73,835,573 76,175,624 79,729,849 80,649,153 Parks and Recreation - 12,050,143 12,221,200 12,901,812 13,613,805 Library 13,635,946 15,952,096 16,694,255 15,554,135 15,728,575 Planning 8,886,510 9,710,292 9,843,203 9,770,085 10,331,341 Agriculture 895,995 919,342 883,104 916,359 761,992 Economic Development 1,798,044 1,840,570 1,900,804 2,530,958 2,145,140 Convention and Visitor 6,222,175 6,898,156 9,086,052 8,532,360 9,440,068 Development General Services 27,362,418 - - - - Boards and Commissions 9,147,880 10,475,249 16,511,003 19,924,128 28,889,764 Fire 32,042,734 34,732,240 36,086,307 39,220,757 41,731,409 Museums 585,320 667,785 837,528 1,609,478 699,504 Management Services 1,412,190 3,059,944 3,363,527 3,493,535 3,676,965 Communications and Information 2,485,999 2,356,182 2,532,903 18,265,979 18,784,903 Technology Emergency Medical Services 3,130,963 5,458,223 6,406,814 6,615,642 6,825,724 Housing and Neighborhood Preservation 1.579,788 1,566,915 1.656,445 1.424.249 1.700.794 Total Expenditures EXCESS OF REVENUES OVER(UNDER) EXPENDITURES Source: City Department of Finance GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30 2004 2005 2006 2007 2008 OTHER FINANCING SOURCES (USES): Proceeds From Capital Leases $ - $ - $ - $ - $ Operating Transfers in 618,407 2,313,193 9,996,873 9,531,367 11,803,592 Operating Transfers out (438,600,1141 (466,270,400) (486,203,907) (546,713,003) (549,154,1451 Total Other Financing Sources (Uses) $(437,981,707) $(463,957,207) (476,207,034) (537,181,636) (537,350,5531 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING $18,175,846 $ 15,390,132 $ 33,244,290 $ 3,203,001 $ 16,562,006 FUND BALANCE—JULY $102,510,444 $ 124,011,450 $139,401,582 $173,136,835 176,503,035 Residual Equity Transfers - - - - - Non-exchange Transactions, GASB 33 - - - - - Expendable Trust Funds, GASB 34 - - - - ADJUSTED FUND BALANCE— $102,510,444 $ 124,011,450 $139,401,582 $173,136,835 $176,503,035 JULY 1 FUND BALANCE—JUNE 30 $120.686.290 $ 139.401.582 1172.645.872 $176.339.836 193 065 041 Note 1: The beginning General Fund balance has been restated as a result of Special Revenue Funds being combined with the General Fund, in fiscal years 2005, 2007 and 2008. Note 2: The entire General Fund balance is not available for appropriation because of outstanding interfund and interagency loans, prepaid items, encumbrances, and designations for school capital projects. An analysis of the General Fund balance is as follows: Fund Balance —June 30, 2008 $193,065,041 Reserved For: Encumbrances $ - Advances to Other Funds - Loans 10,977,275 Unreserved, Designated For, reported in: Encumbrances 4,826,489 General Fund for School Capital Projects and 33,065,747 Other General Fund for Future Programs 10,226,371 General Fund for Capital Projects 13,884,232 72,980,114 Net Balance Available for Appropriation - July 1, 2008 $120.084.927 Source: City Department of Finance. At the end of Fiscal Year 2008, the General Fund Balance was $193,065,041. This balance represents an increase of $16,725,205 from the previous year. The table below presents a comparison of the City's General Fund balance for Fiscal Years 2004 through 2008. 2004 2005 2006 2007 2008 General Fund Balance: Reserved for: Advance to Other ]Funds $ 290,000 $ 290,000 $ 290,000 $ - $ - Loans 7,929,429 6,762,123 6,325,475 6,466,689 10,977,275 Federal Arbitrage Rebate Liability - - - - - Unreserved: Encumbrances $ 3,280,063 $ 3,279,481 $ 5,832,895 $ 6,525,570 $ 4,826,489 Designated for School Capital $ 94,376,230 16.91% 2000 95,125,135 15.72 Projects -Textbooks and other 20,026,602 17,225,004 17,203,669 14,690,129 33,065,747 Designated for Capital Projects 8,243,900 4,829,031 9,875,976 25,393,638 13,884,232 Designated for Future Programs 7,916,811 10,456,269 9,734,213 19,867,675 10,226,371 Undesignated 72.999.485 96,559,674 123.383,644 103.396,135 120,084,927 Totals S 120.686.290 $139.401.582$172.645.872 $176.339.836 $193.065.041 Source: City Department of Finance The City has maintained a sizable General Fund balance in each of the past ten fiscal years as sum srized in the tables below: GENERAL FUND BALANCE AS PERCENT OF GENERAL FUND REVENUES FISCAL YEARS 1999 THROUGH 2008 General Fund Balance Fiscal Fund Balance As Percent of General Year June 30 Fund Revenues 1999 $ 94,376,230 16.91% 2000 95,125,135 15.72 2001 95,445,728 15.21 2002 104,579,894 15.73 2003 102,510,444 14.70 2004 120,686,290 15.85 2005 139,401,582 16.53 2006 172,645,872 19.21 2007 176,339,836 18.18 2008 193,065,041 18.96 Source: City Department of Finance 70 UNDESIGNATED GENERAL FUND BALANCE AS PERCENT OF OPERATING GENERAL FUND EXPENDITURES* FISCAL YEARS 1999 THROUGH 2008 * Operating Expenditures are net of Capital Project and Dedicated Tax Transfers Source: City Department of Finance Interim Financial Statements for Fiscal Year 2009 General Fund revenues as of March 31, 2009 total $589.5 million and are slightly behind prior years. Current year revenues are 55.1% of the budget, compared to 55.3% in FY 2008 and 55.1% in FY 2007. Projections based on current trends anticipate that local revenues will not achieve budget due to current economic conditions. Real estate revenues are on a favorable trend; however, other key revenues (Personal Property Taxes and Business Licenses) that represent 11.3% of total General Fund budgets will not be collected until later in FY 2009, and therefore are more difficult to project. In total, revenues are projected to be under budget by $26 million. Total General Fund expenditures and transfers amount to $843.9 million, which are 74.9% of budget expended or committed as of March 31, 2009 compared to 78.8% and 76.2% respectively for FY 2008 and FY 2007. General Fund expenditures are projected to be well within budget for FY 2009. In addition, it is anticipated that expenditures will be reduced as a result of decreased revenues associated with the City/School Revenue Sharing Formula. The under expenditures by the City as well as the reduction in School appropriation are expected to offset revenue shortages. For June 30, 2009, the undesignated General Fund Balance is projected to be within the City Council Fund Balance Policy of 8-12% of subsequent year's budgeted revenues. As of April 2009, the June 30, 2009 undesignated General Fund Balance is estimated to be approximately $98 million, including pending reservations for Southeastern Public Service Authority ("SPSA") charges estimated at $10 million. See "Southeastern Public Service Authority" in this section for a further discussion of the City's arrangement with SPSA. Below is a summary of the City's major funds performance in comparison to the budget as of March 31, 2009. 71 Undesignated Undesignated General Fund Balance Fiscal Fund Balance As Percent of General Year June 30 Fund Expenditures 1999 $ 56,184,299 11.02% 2000 54,803,920 10.27 2001 62,326,911 11.15 2002 59,459,248 10.09 2003 63,035,338 10.09 2004 72,999,485 11.01 2005 96,559,674 13.04 2006 123,383,644 15.74 2007 103,396,135 11.94 2008 120,084,927 13.26 * Operating Expenditures are net of Capital Project and Dedicated Tax Transfers Source: City Department of Finance Interim Financial Statements for Fiscal Year 2009 General Fund revenues as of March 31, 2009 total $589.5 million and are slightly behind prior years. Current year revenues are 55.1% of the budget, compared to 55.3% in FY 2008 and 55.1% in FY 2007. Projections based on current trends anticipate that local revenues will not achieve budget due to current economic conditions. Real estate revenues are on a favorable trend; however, other key revenues (Personal Property Taxes and Business Licenses) that represent 11.3% of total General Fund budgets will not be collected until later in FY 2009, and therefore are more difficult to project. In total, revenues are projected to be under budget by $26 million. Total General Fund expenditures and transfers amount to $843.9 million, which are 74.9% of budget expended or committed as of March 31, 2009 compared to 78.8% and 76.2% respectively for FY 2008 and FY 2007. General Fund expenditures are projected to be well within budget for FY 2009. In addition, it is anticipated that expenditures will be reduced as a result of decreased revenues associated with the City/School Revenue Sharing Formula. The under expenditures by the City as well as the reduction in School appropriation are expected to offset revenue shortages. For June 30, 2009, the undesignated General Fund Balance is projected to be within the City Council Fund Balance Policy of 8-12% of subsequent year's budgeted revenues. As of April 2009, the June 30, 2009 undesignated General Fund Balance is estimated to be approximately $98 million, including pending reservations for Southeastern Public Service Authority ("SPSA") charges estimated at $10 million. See "Southeastern Public Service Authority" in this section for a further discussion of the City's arrangement with SPSA. Below is a summary of the City's major funds performance in comparison to the budget as of March 31, 2009. 71 Summary of Revenues and Expenditures - Major Funds For the Nine Months Ended March 31, 2009 (Millions) Budget Year to Date Percent of Total FY 2009 FY 2008 General Fund Revenues $1,069.5 $589.5 55.1% 55.3% Expenses 1,127.1 843.9 74.9 78.8 School Operating Revenues 723.7 517.2 71.5 72.5 Expenses 733.7 505.8 68.9 71.1 Water and Sewer Revenues 101.4 66.8 65.9 63.4 Expenses 109.0 69.2 63.5 72.9 Storm Water Revenues 22.9 15.7 68.9 66.3 Expenses 24.0 17.1 71.4 74.4 Differences between budgeted revenues and expenditures are encumbrances carried forward from the prior year and other items funded from fund balance. The Water and Sewer System The Department of Public Utilities operates the City owned Water Utility and the Sanitary Sewer Utility. The mission of the Department is "to provide public water, including water for fire protection, and public sanitary sewer service to the urban areas of Virginia Beach." The goals are "to provide quality public service at reasonable costs and to plan, build, operate and maintain its facilities to meet community needs, environmental responsibilities and regulatory requirements." The physical property of the City water system as of June 30, 2008, included approximately 1,447 miles of transmission and distribution mains, 7,996 fire hydrants, 12 water storage facilities, and nine pumping stations (including Lake Gaston). The City water system is fully metered, with tap sizes ranging from 3 to 12 inches. As of June 30, 2008, the water system had approximately 131,085 connections, representing a .3 0/'0' increase over the number reported in 2007, and a customer base of approximately 432,580 people. The City Sanitary Sewer System includes collector lines, force mains and pump stations, which are used to collect and transport wastewater to the treatment facilities operated by the Hampton Roads Sanitation District ("HRSD"'), the regional treatment agency. Virginia Beach citizens receiving sanitary sewer pay the City a fee for collection and transport of wastewater and HRSD a fee for treatment of the wastewater. The City's Sanitary Sewer System consists of 403 sewer pump stations and over 1,609 miles of pipeline ranging in size from 4 inches to 36 inches in diameter. As of June 30, 2008, the number of City sewer connections was 128,826, representing a 0.5% increase over the number reported in 2007. The HRSD, established in 1940, provides wastewater treatment services for 17 cities and counties in southeastern Virginia. The HRSD operates nine major treatment facilities in Hampton Roads and four small rural treatment facilities on the Middle Peninsula, with a total treatment capacity of 231 million gallons per day ("MGD"). Two HRSD plants are located in the City. The Chesapeake -Elizabeth Plant, in operation since 1968, has an operating capacity of 24 MGD, with average annual flow estimated at 20 MGD. The Atlantic Plant has an operating capacity of 36 MGD and average annual flow estimated at 27 MGD. The HRSD has a service population of about 1.6 million. HRSD reports that it is meeting all its discharge permit 72 requirements established by the U.S. Environmental Protection Agency and the Virginia Department of Environmental Quality. The Water Utility and Sanitary Sewer Systems are operated and maintained in good working order including repairing, rebuilding, or replacing of equipment and structures when required. In addition, the City has developed an ongoing training program to develop a staff of personnel in sufficient numbers to promote safe and technically competent operation of the water and sewer utility. The estimated depreciated value of the water and sewage property, plant and equipment was $838,714,992 as of June 30, 2008, excluding land and air rights. Source: City Department of Public Utilities. The City's water and sewer system is operated on a self-sustaining basis, with rates and charges adjusted when necessary to assure a stream of revenues adequate to cover the costs of operations and maintenance of the system and debt service on all water and sewer system bonds. Revenues from water and sewer charges are reserved solely for the payment of water and sewer fund obligations and have not been used for any non -water or non -sewer related purpose. Water and sewer charges are maintained at a level sufficient to pay all water and sewer operating expenses and debt service. On July 1, 2005, the first of a five-year series of increases in the water and sewer charges took effect. Council adopted these series of increases on May 2005 in response to recommendations made in a January 2005 Cost of Service Study prepared by a water and sewer utility consultant. Historical water commodity rates and sanitary sewer charges for a single family residence and their effective dates are outlined below: 7�3 2004 2005 2006 2007 2008 Millions of Gallons of Water 27.75 27.75 27.75 27.75 27.75 Storage Miles of Water Lines 1,432 1,443 1,456 1,459 1,477 Miles of Sewer Lines 1,535 1,546 1,569 1,572 1,609 Number of Water Pump Stations 9 9 9 9 9 Number of Sewer Pump Stations 391 393 400 401 403 Number of Water Connections 128,718 129,376 130,005 130,647 131,085 Number of Sewer Connections 126,302 126,908 127,578 128,220 128,826 Total Value of Utility Plant in $695,138,993 $734,563,619 $753,216,513 $773,215,156 $816,242,612 Service (l) Includes Lake Gaston (2) Excludes depreciation Source: City Department of Public Utilities. The City's water and sewer system is operated on a self-sustaining basis, with rates and charges adjusted when necessary to assure a stream of revenues adequate to cover the costs of operations and maintenance of the system and debt service on all water and sewer system bonds. Revenues from water and sewer charges are reserved solely for the payment of water and sewer fund obligations and have not been used for any non -water or non -sewer related purpose. Water and sewer charges are maintained at a level sufficient to pay all water and sewer operating expenses and debt service. On July 1, 2005, the first of a five-year series of increases in the water and sewer charges took effect. Council adopted these series of increases on May 2005 in response to recommendations made in a January 2005 Cost of Service Study prepared by a water and sewer utility consultant. Historical water commodity rates and sanitary sewer charges for a single family residence and their effective dates are outlined below: 7�3 Effective Date Sanitary Sewer Service Water Commodity Rate Charge Single Family (ver 1,000 gallons) Residence (per month) July 1, 1983 $1.62 $ 9.46 August 1, 1987 1.81 9.46 October 1, 1987 1.99 9.46 July 1,1988 2.18 9.46 July 1, 1989 2.51 9.46 July 1, 1990 2.69 9.46 October 1, 1990 2.77 9.65 July 1, 1991 2.96 10.58 July 1, 1992 3.11 11.38 July 1, 1993 3.38 11.38 July 1, 1994 3.65 11.38 July 1, 1999 3.55 11.38 July 1, 2001 3.55 12.29 July 1, 2002 3.55 13.27 July 1, 2003 3.55 14.34 July 1, 2005 3.65 15.92 July 1, 2006 3.70 16.88 July 1, 2007 3.80 17.72 July 1, 2008 3.95 18.61 Typical Water and Sewer Bills Under the City's current rate structure, a single family residence consuming 6,000 gallons for 30 days would receive a bill as follows: Current In addition, the HRSD would charge the same residence $18.29 for wastewater treatment of 6,000 gallons during the; same time period. The last HRSD rate increase was in July 1, 2008. Operating Results -Water and Sewer System The City Council fixes water and sanitary sewer rates and charges such that estimated income generated by such rates and charges will cover operating expenses and debt service relating to the water and sewer system. Funds and accounts relating to the Department of Public Utilities are kept separate from other funds and accounts of the City. The Department of Public Utilities has financed the construction and acquisition of water and sewer facilities through federal and Commonwealth grant proceeds, pay-as-you-go funding and the issuance of City general obligation water and sewer bonds, double barrel water and sewer bonds (secured both by water and sewer revenues and the City's general obligation pledge) and water and sewer revenue bonds. 74 Rates Water Usage; 6 x $3.95 per 1,000 gallons $23.70 Minimum Service Availability Charge 4.10 Total Water $27.80 Sanitary Sewer Service 18.61 Total Water and Sanitary Sewer Monthly Billing S4-0.41 In addition, the HRSD would charge the same residence $18.29 for wastewater treatment of 6,000 gallons during the; same time period. The last HRSD rate increase was in July 1, 2008. Operating Results -Water and Sewer System The City Council fixes water and sanitary sewer rates and charges such that estimated income generated by such rates and charges will cover operating expenses and debt service relating to the water and sewer system. Funds and accounts relating to the Department of Public Utilities are kept separate from other funds and accounts of the City. The Department of Public Utilities has financed the construction and acquisition of water and sewer facilities through federal and Commonwealth grant proceeds, pay-as-you-go funding and the issuance of City general obligation water and sewer bonds, double barrel water and sewer bonds (secured both by water and sewer revenues and the City's general obligation pledge) and water and sewer revenue bonds. 74 The Department is required by the City's bond resolutions, among other provisions, to establish rates sufficient to cover operations and maintenance and debt service on the general obligation water and sewer bonds and the water and sewer revenue bonds. Certain general obligation bonds issued prior to 1977 for water and sewer purposes are not subject to such covenant. It is, however, City Council policy to pay debt service on those general obligation bonds issued for the water and sewer purposes from revenues of the Water and Sewer Enterprise Fund, and to set water and sewer rates accordingly. In 2002, City Council approved a set of debt management policies for the water and sewer enterprise fund to assist in making short and long-term decisions regarding the water and sewer system. The policies incorporate three essential areas of debt management: liquidity, debt service coverage and pay-as-you-go funding. For liquidity, the water and sewer enterprise fund will pursue the goal of retaining working capital equal to 80% to 100% of one year's operating expenses. For debt service coverage, the goal is 1.5x coverage of water and sewer revenue bonds and 1.2x coverage of all debt service for the water and sewer enterprise fund. For pay-as-you-go funding, the goal of the water and sewer enterprise fund is to contribute approximately 25% of the annual capital program from non -borrowed funds. The water and sewer enterprise fund is in compliance with each of these debt management policies. The table on the following page presents the operating results of the Water and Sewer Enterprise Fund, exclusive of depreciation, as used in computing coverage of debt service, for Fiscal Year 2004 through Fiscal Year 2008. Coverage of debt service on the water and sewer revenue bonds and the general obligation bonds issued for water and sewer purposes is shown separately from the coverage of debt service on all bonds issued for water and sewer purposes. 75 SYSTEM OPERATING REVENUES, EXPENSES AND COVERAGE (in thousands of dollars) Annual Debt Service Water and Sewer Revenue Bonds $10,020 $10,008 $8,006 $11,329 $10,807 Total Water and Sewer Debt Service 13,702 10,991 $8,493 $11,329 $10,807 Coverage of Debt Service on Water and Sewer Revenue Bonds 3.07x 2.06x 3.29x 2.79x 2.94x Coverage of Debt Service on All Debt Supported by Water and Sewer Revenues 2.24x 1.88x 3.10x 2.79x 2.94x (1) Excludes sale of salvage starting in 2005. Source: Department of Finance and Department of Public Utilities. The City's water and sewer activities are operated on an enterprise fund accounting basis, Fiscal Year 2008 operating revenues were $90,749,645. This represents a 3.1% increase over Fiscal Year 2007. The Water and Sewer Enterprise Fund had an increase in Net Assets of $14,632,587 at the end of Fiscal Year 2008. 76 2004 2005 2006 2007 2008 Operating Revenues Service Charges $35,558 $35,341 $40,120 $43,140 $45,484 Water Usage 41,420 41,169 43,176 44,071 44,503 Miscellaneous 711 680 688 814 763 Total Operating Revenues $77,689 $77,190 $83,984 $88,025 $90,750 Operating Expenses Water Treatment (Services) $23,171 $23,229 $24,976 $25,194 $24,958 Water Distribution 6,726 7,523 7,452 7,683 9,298 Sewer Collection 9,455 10,783 10,493 11,283 11,787 Administration & 11,792 12,762 13,325 14,698 15,160 Engineering Customer Services 8,710 9,198 8,794 8,864 9,050 Total Operating Expenses $59,854 $0,4L5 65 040 $67,722 $70,253 Net Operating Income $17,835 $13,695 $18,944 $20,303 $20,497 Non -Operating Income Interest $1,290 $1,809 $3,427 $5,290 $5,045 Water Resource Recovery Fee 4,831 3,481 3,899 3,465 2,994 Sewer Connection Fees 2,067 1,644 1,657 1,762 1,317 Sale of SalvageM 26 - - - - Norfolk `7VaterTrue-Up 4,671 - (1,595) 797 1,898 Total Non -Operating Income $12,885 $6,934 $7,388 $11,314 $11,254 Income Available For Debt Service 72 $20.629 2 32 1617 1 1 Annual Debt Service Water and Sewer Revenue Bonds $10,020 $10,008 $8,006 $11,329 $10,807 Total Water and Sewer Debt Service 13,702 10,991 $8,493 $11,329 $10,807 Coverage of Debt Service on Water and Sewer Revenue Bonds 3.07x 2.06x 3.29x 2.79x 2.94x Coverage of Debt Service on All Debt Supported by Water and Sewer Revenues 2.24x 1.88x 3.10x 2.79x 2.94x (1) Excludes sale of salvage starting in 2005. Source: Department of Finance and Department of Public Utilities. The City's water and sewer activities are operated on an enterprise fund accounting basis, Fiscal Year 2008 operating revenues were $90,749,645. This represents a 3.1% increase over Fiscal Year 2007. The Water and Sewer Enterprise Fund had an increase in Net Assets of $14,632,587 at the end of Fiscal Year 2008. 76 Water Service Contracts Until the Lake Gaston Pipeline Project was completed in late 1997, the City had no independent water supply and obtained water from the City of Norfolk under a Water Sales Contract and a Water Service Contract. The Lake Gaston Pipeline Project was placed into formal operations on January 1, 1998. On that date, the City terminated the Water Sales Contract with Norfolk except for certain provisions that survived until June 30, 1999. The Water Services Contract, which obligates Norfolk to receive, treat, and deliver Lake Gaston water to the City, runs through the year 2030. In essence, the City has contracted for water system facilities and services related to the storage, transmission and treatment of Lake Gaston water. The facilities are owned by Norfolk, but dedicated to serving the City through the life of the Water Service Contract. Those facilities include: 1. Raw water storage (lakes); 2. Raw water pumping stations and transmission lines; 3. Water treatment plant capacity; and 4. Treated water storage, pumping and transmission. In accordance with the Water Services Contract, Norfolk develops projected rates applicable to the City for treated water service on a biennial basis based upon a cost of service study prepared by an independent consulting firm. Under the utility basis "cost of service" methodology, which follows traditional utility ratemaking standards, the City pays its allocable share of operations and maintenance expense, cost of the facilities dedicated to service the City, and services provided by Norfolk, including a reasonable rate of return on facilities dedicated to serving the City. For Fiscal Year 2009, the average effective projected rate.to the City for delivery of bulk treated water was $1.91 per 1,000 gallons. On July 1, 2009, that effective rate will remain at $1.91 per 1,000 gallons. At the end of the second fiscal year in each biennial period, Norfolk's independent consultant completes and submits to the City a schedule of rates and annual billings applicable to the previous two fiscal years reflecting an allocation of cost of service based on actual costs incurred by the Norfolk water system This allocation of actual costs resulted in a payable amount to Norfolk of approximately $1.9 million being paid during Fiscal Year 2009. Water and Sewer Capital Improvement Program The Department of Public Utilities annually prepares the portion of the City's Capital Improvement Plan concerning the improvement and extension of the Water and Sewer System. According to the City's Fiscal Year 2009-2014 CIP, water and sewer utility projects in the amount of $274,218,331 account for 16.3 percent of overall City capital spending anticipated during the period of Fiscal Years 2009 to 2014. Future funding for the water and sewer program totals $160,000,000, of which $78,000,000 is to be financed with water and sewer revenue bonds. The water and sewer portion of the CIP includes 113 projects. The following table presents the financing sources expected to meet the six-year capital plan for water and sewer. 77 WATER AND SEWER SYSTEM CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2009 To Fiscal Year 2014 Financing Plan Source: Adopted Capital Improvement Program for Fiscal Years 2009-2014 Insurance The City utilizes a combination of commercial insurance and self-insurance to protect its assets, including employees, money and securities, and buildings and equipment. City buildings and their contents are covered by an all risk property insurance program which is written with a $100,000 per occurrence deductible. Other types of property insurance are written with deductibles ranging from $5,000 to $50,000 and include coverage for such items as computer equipment, heavy contractor's type equipment, fine arts and valuable papers. All City employees are bonded for $1,000,000. The City is primarily self-insured for the fust $2,000,000 of any automobile liability, commercial general liability, public officials' liability and police professional liability claims. The City has $10,000,000 of commercial insurance coverage above this self-insured retention on these lines of risks. The City is also primarily self-insured for workers' compensation and carries commercial insurance in excess of any claims totaling $850,000 in any single occurrence. The City's Risk Management Fund had a cash balance of $14,484,935 as of July 1, 2008, which amount is expected to be sufficient for expected draw -downs during the course of the current fiscal year. An actuarial study conducted by the firm of Marsh & McLennan Companies determined that the fund balance of this fund as of July 1, 2008 should be $17,642,752, which represents the discounted liability for current claims against the City. Commitments and Contingencies The City participates in a number of federal and state grants, entitlements, and shared revenues programs. These :programs are subject to program compliance audits by the applicable federal or state agency or its representatives. Furthermore, the U.S. Congress passed legislation called the "Single Audit Act Amendment of 1996" which required most governmental recipients of federal assistance to have an annual independent organization -wide financial and compliance audit. The results thereof are incorporated in the audited financial statements for the City for the Fiscal Year ended June 30, 2008. The amounts, if any, of expenditures which may be disallowed by these audits cannot be deterniined at this time although the City expects such amounts, if any, to be immaterial. 78 Sources of Balance To Be Funded Water and Water and Total Estimated Previously Balance To Be Sewer Revenue Sewer Fund Utility Costs Authorized Funded Bonds (Pay -as -You -Go) Water $ 61,684,068 $28,980,018 $ 32,704,050 $ 13,649,950 r $19,054,100 Sewer 212,534,263 85,238,313 127.295,950 64.350,050 62,945,900 Total $274.® $114.218.331 1160.000.000 7 000 0 $82.000.000 Source: Adopted Capital Improvement Program for Fiscal Years 2009-2014 Insurance The City utilizes a combination of commercial insurance and self-insurance to protect its assets, including employees, money and securities, and buildings and equipment. City buildings and their contents are covered by an all risk property insurance program which is written with a $100,000 per occurrence deductible. Other types of property insurance are written with deductibles ranging from $5,000 to $50,000 and include coverage for such items as computer equipment, heavy contractor's type equipment, fine arts and valuable papers. All City employees are bonded for $1,000,000. The City is primarily self-insured for the fust $2,000,000 of any automobile liability, commercial general liability, public officials' liability and police professional liability claims. The City has $10,000,000 of commercial insurance coverage above this self-insured retention on these lines of risks. The City is also primarily self-insured for workers' compensation and carries commercial insurance in excess of any claims totaling $850,000 in any single occurrence. The City's Risk Management Fund had a cash balance of $14,484,935 as of July 1, 2008, which amount is expected to be sufficient for expected draw -downs during the course of the current fiscal year. An actuarial study conducted by the firm of Marsh & McLennan Companies determined that the fund balance of this fund as of July 1, 2008 should be $17,642,752, which represents the discounted liability for current claims against the City. Commitments and Contingencies The City participates in a number of federal and state grants, entitlements, and shared revenues programs. These :programs are subject to program compliance audits by the applicable federal or state agency or its representatives. Furthermore, the U.S. Congress passed legislation called the "Single Audit Act Amendment of 1996" which required most governmental recipients of federal assistance to have an annual independent organization -wide financial and compliance audit. The results thereof are incorporated in the audited financial statements for the City for the Fiscal Year ended June 30, 2008. The amounts, if any, of expenditures which may be disallowed by these audits cannot be deterniined at this time although the City expects such amounts, if any, to be immaterial. 78 Retirement and Pension Plans The City has elected to participate in the Virginia Retirement System ("VRS"), and substantially all of the full-time salaried general government and school employees are covered by a retirement plan, group term life insurance, and disability and death benefits. Prior to January 1, 1978, employees contributed five percent of their annual salary. There is presently no employee contribution; the City pays the entire cost. If there are insufficient funds to meet the vested benefits of the employees, the City is liable. The VRS maintains separate accounts for each participating locality based on contributions made by the locality and the benefits paid to former employees. The City's contributions are actuarially determined by the VRS every two years at rates that provide for both normal and accrued funding liability. The VRS basis calculation method is an entry age normal cost calculation with 30 year amortization of the unfunded accrued liability. The entry age normal cost method is designed to produce normal costs over the working lifetime of the participating employees and to permit the amortization of any unfunded liability over a period of years. The unfunded liability arises because normal costs based on the current benefit formula have not been paid throughout the working lifetime of current employees. The value of the unpaid normal costs, adjusted for actuarial gains and losses, constitutes the unfunded liability. The last actuarially computed liability was determined as of June 30, 2006, and included amounts for general government and school nonprofessional employees. Total liability as of June 30, 2007, both funded and unfimded, follows: Unfunded Actuarial Actuarial Value (Overfunded) Actuarial of Assets Accrued Accrued General Government Employees $979,005,170 $202,128,956 $1,181,134,126 School Nonprofessional Employees 137.500,094 11,200,938 148,701,032 Total $1.116.505.264 $213.329.894 11.329.835.158 The unfunded accrued liabilities of $12,309,609 (School Board) and $223,008,182 are being amortized over 30 years according to a schedule prescribed by the VRS. In Fiscal Year 2008 the City's contribution rate as determined by VRS from its actuarial report was increased from 17.28% to 17.72%. The rate increase was based on an analysis and assumptions of member data, an increase in the number of employees retiring and losses due to the market turndown over the last three fiscal years. The City has always made the required contribution to VRS in accordance with the Code of Virginia. In 2004, the Government Accounting Standards Board adopted two statements, GASB Statements 43 and 45, that established uniform financial reporting and accounting standards for other post -employment benefits offered to retirees. These statements require the City to recognize in its government wide financial statements, a liability for post -employment benefits offered to its retirees who meet certain eligibility requirements. The City is in full compliance with these new statements beginning with Fiscal Year 2008. In order to address the requirements of these statements, a joint committee was formed and comprised of members of the City and School Board. 79 Beginning June 30, 2008 the City and Schools began recognizing its obligation to retirees for health insurance. The City and Schools have established plans to provide post -employment benefits other than pensions as defined in Section 15.2-1545 of the Virginia Code to retirees and their spouses and eligible dependents. This benefit is payable until the retiree becomes eligible for Medicare. The required contributions for these plans were actuarially determined and are based upon projected pay as you go financing requirements with an additional amount to prefund benefits. For the period ending June 30, 2008 the City and School Board contributed, $10.3 million and $9.2 respectively either through health payments for current retirees or payments to an irrevocable trust.. In accordance with Article 8, Chapter 15, Subtitled II of Title 15.2 of the Virginia Code, the City and Schools have elected to establish a trust for the purpose of accumulating and investing assets to fund Other Postemployment Benefits. The City and Schools in accordance with this election have joined the Virginia Pooled OPEB Trust Fund. Deposits to this trust are irrevocable and are held solely for the payment of OPl?B benefits for the City and Schools . For Fiscal Year ending June 30, 2008, the City contributed $5 million and the Schools $3.9 million to this trust. For 2008, the City and School Board's annual OPEB cost of $10.3 million and $9.2 million, respectively, was equal to the required contribution. The required annual contribution for fiscal year 2009 for the City is $8.9 million and $8.8 million for Schools. Inclusive in these amounts will be those funds that will be paid into the OPEB Trust Fund for future health care benefits and totals $4.7 million for the City and $3.7 for Schools. Funds have been appropriated in fiscal year 2009 by both the City and Schools to meet these costs. In addition, the proposed FY2010 Operating Budget contains additional funding of $4 million (City) and $2.9 million (Schools) to meet the requirements of GASB 45. Employee Relations and Collective Bargaining There were 6269 full-time City employees and approximately 10,392 School Board employees as of June 30, 2008. Some employees are members of unions or trade or professional associations. The City, however, does not, and cannot under Virginia law, bargain collectively with any of its employees. The Virginia General Assembly has rejected several recent legislative proposals to authorize public employees to engage in collective bargaining. Public employees of Virginia or of any county, city, or town in Virginia do not have a legal right to strike. Any such employee who engages in any organized strike or willfully refuses to perform his/her duties shall, according to Virginia law, be deemed to have terminated his/her employment. Re-employment of any such employee requires court approval. Southeastern Public Service Authority The Southeastern Public Service Authority (SPSA) has been the regional waste disposal system since 1985, and includes a waste -to -energy component that sells electricity to the Norfolk Naval Shipyard in Portsmouth. SPSA has developed budgetary challenges as a result of several issues, including the loss of commercial waste revenues. As a result, the Chief Administrative Officers of the member communities have worked over the last months to develop a financial assistance plan to ensure the financial soundness of SPSA ("Financial Assistance Plan"). This multi -faceted strategy involves raising the municipal tipping fee from the current $104/ton to $170/ton, the refinancing of some of SPSA's outstanding debt with a guarantee from five of the communities, a guarantee of a line of credit by two communities, and a deferral of reimbursement amounts by the City of Virginia Beach. The chart below show the ways in which the member communities will participate: a LOCALITY COMMITMENT ON BLENDED STRATEGY Locality Higher Deferral of GO Pledge- Guarantee- Tipping fee payments VRA L O.0 Refinancing Chesapeake X X Franklin X X Isle of Wight X X Norfolk X X Portsmouth X X Southampton X X Suffolk t X Virginia Beach X2 X2 Notes ' As host city to the landfill, no tipping fee is imposed. 2 Virginia Beach will pay the increased tipping fee and defer the rebate it would normally receive under the Ash & Process Residue Agreement. The City pays the same per ton tipping fee as other SPSA member localities, but then is entitled to receive a refund equal to the difference between the blended average tipping fee paid and a "cap amount" set forth in the Ash and Process Residue Agreement. As part of the Financial Assistance Plan, the City Council has agreed to continue deferring receipt of these payments for a time subject to SPSA's agreement to pay them in the future. In addition all of the governing bodies of each of the other SPSA localities have formally agreed to the Financial Assistance Plan. A Forbearance Agreement [has been approved by City Council on May 12, 2009] which sets forth the terms and conditions under which the City agrees to delay reimbursement payments until after June 30, 2010. As a result of the forbearance, the City's General Fund Balance is projected to be $10 million less at June 30, 2009 and $27 million less at June 30, 2010. SPSA is currently evaluating proposals to sell its waste to energy plant. Recommendations about the sale from the evaluation team are expected at the end of June 2009. The City has not agreed to guarantee or make any payments towards SPSA's current or future indebtedness. SECTION SIX: MISCELLANEOUS Delivery The Bonds are offered for delivery when, as and if issued, subject to the approval of validity by Bond Counsel and to certain other conditions referred to herein. It is expected that the Bonds will be available for delivery at the expense of the City through the facilities of DTC on or about June 16, 2009. Official Statement This Official Statement has been approved and authorized by the City for use in connection with the sale of the Bonds. Its purpose is to supply information to prospective buyers of the Bonds. Financial and other information contained in this Official Statement has been prepared by the City from its records, except where other sources are noted. Government Finance Group, an independent consulting firm, is providing certain: technical support with respect to the development of information and data employed for this Official Statement. The information contained in this Official Statement is not intended to indicate future or continuing trends in the financial or economic position of the City. Neither this Official Statement nor arty statement which may have been made verbally or in writing is to be construed as a contract with the holder of the Bonds. All quotations from and summaries and explanations of laws contained in this Oficial Statement do not purport to be complete, and reference is made to said laws for full and complete statements of their provisions. Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not representations of fact. No representation is made that any of the estimates will be realized. The attached Appendices are an integral part of this Official Statement and must be read together with the balance �of this Official Statement. The delivery of the Preliminary Official Statement has been duly authorized by the City Council. The City has deemed this Preliminary Official Statement final as of its date within the meaning of Rule 15c2-12, except fbr the omission of certain pricing and other information permitted to be omitted pursuant to Rule 15c2-12. 1824518v4 CITY OF VIRGINIA BEACH, VIRGINIA By: City Manager 82 APPENDIX A AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 APPENDIX B FORM OF BOND COUNSEL OPINION TROUTMAN SANDERS [PROPOSED FORM OF BOND COUNSEL OPINION] June ,2009 City of Virginia Beach, Virginia 2401 Courthouse Drive Virginia Beach, Virginia 23456 City of Virginia Beach, Virginia $ General Obligation Public Improvement Bonds Series 2009 TROUTMAN SANDERS LLP Attorneys at Law Troutman Sanders Building P.O. Box 1122 (23218-1122) 1001 Haxall Point Richmond, Virginia 23219 804.697.1200 telephone 804.697.1339 facsimile troutmansanders.com We have acted as bond counsel to the City of Virginia Beach, Virginia (the "City") in connection with the issuance by the City of its $ General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), dated June _, 2009. We have examined the applicable law and certified copies of such proceedings and other papers, including a Resolution adopted by the City Council of the City of Virginia Beach on May 12, 2009 (the "Bond Resolution"), as we have deemed necessary to render this opinion. We have also examined the form of the Bonds. The Bonds recite that they are authorized and issued pursuant to the Bond Resolution, the City Charter (Chapter 147, Acts of Assembly of 1962, as amended) and the Public Finance Act of 1991 (Chapter 26, Title 15.2, Code of Virginia of 1950, as amended). The proceeds of the Bonds are being used to finance (1) [various public, school road, highway, coastal, economic public improvements] and (2) the costs of the issuance of the Bonds. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: (1) The City is a political subdivision of the Commonwealth of Virginia (the "Commonwealth"), and has all necessary power and authority to enter into and perform its obligations under the Ordinances, the Bond Resolution and the Bonds. (2) The Bonds have been duly authorized and issued in accordance with the Constitution and statutes of the Commonwealth, including the City Charter and the Public Finance Act of 1991, and constitute valid and legally binding general obligations of the City, for the payment of which the City's full faith and credit have been irrevocably pledged. The City is authorized and required, unless other funds are lawfully available and appropriated for timely payment of the Bonds, to levy and collect annually on all locally taxable property in the City an ad valorem tax over and above all the taxes authorized or limited by law, sufficient to pay the principal of, redemption premium, if any, and interest on the Bonds when due. (3) All proceedings for the issuance of the Bonds have been held and adopted in due time, form and manner as required by the laws of the Commonwealth. (4) Interest on the Bonds (including any original issue discount properly allocable to an owner of a Bond) is excludable from gross income for federal income tax purposes and is not an item of tax preference, nor is it included in the computation of adjusted current earnings, for purposes of the federal alternative minimum tax. The opinion set forth in the preceding sentence is subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable; from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. 5) Interest on the Bonds is exempt from income taxation by the Commonwealth. The rights of the owners of the Bonds and the enforceability of the Bonds are limited by bankruptcy, reorganization, insolvency, moratorium and other similar laws affecting creditors' rights generally, heretofore or hereafter enacted, and by equitable principles, whether considered at law or in equity. Our services as bond counsel to the City have been limited to a review of the legal proceedings required for the authorization of the Bonds and to rendering the opinions set forth above. We express no opinion herein as to the accuracy, adequacy or completeness of the Official Statement dated June _, 2009 relating to the Bonds. Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein. 'Chis opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Very truly yours, APPENDIX C FORM OF CONTINUING DISCLOSURE AGREEMENT FORM OF CONTINUING DISCLOSURE AGREEMENT This CONTINUING DISCLOSURE AGREEMENT dated as of _, 2009 (the "Disclosure Agreement"), is executed and delivered by the City of Virginia Beach, Virginia (the "City"), in connection with the issuance by the City of its $ General Obligation Public Improvement Bonds, Series 2009 (the `Bonds"). The City hereby covenants and agrees as follows: Section 1. Purpose. This Disclosure Agreement is being executed and delivered by the City for the benefit of the holders of the Bonds and in order to assist the purchasers of the Bonds in complying with the provisions of Section (b)(5)(i) of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Comirussion (the "SEC") by providing certain annual financial information and material event notices required by the Rule (collectively, "Continuing Disclosure"). Section 2. Annual Disclosure. (a) The City shall provide annually certain financial information and operating data in accordance with the provisions of Section (b)(5)(i) of the Rule as follows: (i) audited financial statements of the City, prepared in accordance with generally accepted accounting principles; and (ii) the operating data with respect to the City of the type described in the subsection of Section hive of the City's Official Statement dated 2009, entitled "Operating Data." If the financial statements filed pursuant to Section 2(a)(i) are not audited, the City shall file such statements as audited when available. (b) The City shall provide annually the financial information and operating data described in subsection (a) above (collectively, the "Annual Disclosure") within 180 days after the end of the City's fiscal ;year, commencing with the City's fiscal year ending June 30, 2008, to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository, if any then exists ("SID"). (c) Any Annual Disclosure may be included by specific reference to other documents previously provided to each NRMSIR and to the SID or filed with the SEC; provided, that any final official statement incorporated by reference must be available from the Municipal Securities Rulemaking Board (the "MSRB"). (d) The City shall provide in a timely manner to each NRMSIR or the MSRB and to the SID notice specifying any failure of the City to provide the Annual Disclosure by the date specified. Section 3. Event Disclosure. The City shall provide in a timely manner to each NRMSIR or the MSRB and to the SID notice of the occurrence of any of the following events with respect to the Bonds, if material: (a) principal and interest payment delinquencies; (b) non-payment related defaults; (c) unscheduled draws on debt service reserves reflecting financial difficulties; (d) unscheduled draws on any credit enhancement reflecting financial difficulties; C-1 (e) substitution of credit or liquidity providers, or their failure to perform; (f) adverse tax opinions or events affecting the tax-exempt status of the Bonds; (g) modifications to rights of holders of the Bonds; (h) bond calls; (i) defeasance of all or any portion of the Bonds; 0) release, substitution, or sale of property securing repayment of the Bonds; and (k) rating changes. Section 4. Termination. The obligations of the City will terminate upon the redemption, defeasance (within the meaning of the Rule) or payment in full of all the Bonds. Section 5. Amendment. The City may modify its obligations hereunder without the consent of Bondholders, provided that this Disclosure Agreement as so modified complies with the Rule as it exists at the time of modification. The City shall within a reasonable time thereafter send to each NRMSIR and the SID a description of such modification(s). Section 6. Defaults. (a) If the City fails to comply with any covenant or obligation regarding Continuing Disclosure specified in this Disclosure Agreement, any holder (within the meaning of the Rule) of Bonds then outstanding may, by notice to the City, proceed to protect and enforce its rights and the rights of the holders by an action for specific performance of the City's covenant to provide the Continuing Disclosure. (b) Notwithstanding anything herein to the contrary, any failure of the City to comply with any obligation regarding Continuing Disclosure specified in this Disclosure Agreement (i) shall not be deemed to constitute an event of default under the Bonds or the resolution providing for the issuance of the Bonds and (ii) shall not give rise to any right or remedy other than that described in Section 6(a) above. Section 7. New Central Filing Repository. Beginning July 1, 2009, in accordance with Securities and Exchange Commission Release No. 34-59062 which amends the Rule effective as of such date, the City will file, all financial information, operating data and event notices required in Sections 2 and 3 of this Disclosure Agreement and any other filings or notices required or permitted by this Disclosure Agreement, with the MSRB in the electronic format prescribed by the MSRB from time to time. As of the date of this Disclosure Agreement, the MSRB has provided that all such filings are to be made through its Electronic Municipal Market Access System. Section 8. Additional Disclosure. The City may from time to time disclose certain information and data in addition to the Continuing Disclosure. Notwithstanding anything herein to the contrary, the City shall not incur any obligation to continue to provide, or to update, such additional information or data. Section 9. Counterparts. This Disclosure Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. C-2 Section 10. Governing Law. This Disclosure Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Virginia. CITY OF VIRGINIA BEACH, VIRGINIA By City Manager, City of Virginia Beach, Virginia_ C-3 APPENDIX D INFORMATION REGARDING THE DEPOSITORY TRUST COMPANY AND ITS BOOK -ENTRY SYSTEM INFORMATION REGARDING THE DEPOSITORY TRUST COMPANY AND ITS BOOK -ENTRY SYSTEM The description which follows of the procedures and recordkeeping with respect to beneficial ownership interests in the Bonds, payments of principal of, premium, if any, and interest on the Bonds to The Depository Trust Company, New York, New York ("DTC"), its nominee, Participants or Beneficial Owners (each as hereinafter defined), confirmation and transfer of beneficial ownership interests in the Bonds and other bond -related transactions by and between DTC, Participants and Beneficial Owners is based solely on information furnished by DTC. DTC will act as securities depository for the Bonds. The Bonds will be issued as fully -registered securities registered in the name of Cede & Co., DTC's partnership nominee, or such other name as may be requested by an authorized representative of DTC. One fully -registered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants (the "Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation ("NSCC," "FICC" and "EMCC," also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (the "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct or Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. D-1 To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to DTC. If less than all of the Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal of, premium, if any, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City on the payable date in accordance with the Direct Participants' respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Direct or Indirect Participant and not of DTC (nor its nominee) or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates will be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. D-2 THE CITY HAS NO RESPONSIBILITY OR OBLIGATION TO THE DIRECT OR INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (A) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT; (B) THE PAYMENT BY ANY DIRECT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS; (C) THE DELIVERY OR TIMELINESS OF DELIVERY BY ANY DIRECT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE RESOLUTION TO BE GIVEN TO BONDHOLDERS; OR (D) ANY OTHER ACTION TAKEN BY DTC, OR ITS NOMINEE, CEDE & CO., AS BONDHOLDER, INCLUDING THE EFFECTIVENESS OF ANY ACTION TAKEN PURSUANT TO AN OMNIBUS PROXY. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references in this Official Statement to the Owners of the Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners, and Cede & Co. will be treated as the only holder of Bonds for all purposes under the Resolution. The City may enter into amendments to the agreement with DTC or successor agreements with a successor securities depository relating to the book -entry system to be maintained with respect to the Bonds without the consent of Beneficial Owners or Bondholders. D-3 APPENDIX E NOTICE OF SALE AND OFFICIAL BID FORM OFFICIAL NOTICE OF SALE CITY OF VIRGINIA BEACH, VIRGINIA $72,000,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2009 Electronic bids only will be received by the City of Virginia Beach, Virginia (the "City"), in accordance with this Official Notice of Sale until 11:30 a.m., Local Time, on Wednesday, June 3, 2009 (the "Date of Sale"). In the case of a malfunction in submitting an electronic bid, facsimile bids will be allowed, as more fully described below. Immediately thereafter, the bids will be publicly announced, and the City Manager will act upon the bids by 2:30 p.m., Local Time. The principal amount of the winning bid is subject to adjustment in accordance with the terms described herein. Bid Submission Solely as an accommodation to bidders, electronic bids via BIDCOMP/PARITY (the "Electronic Bidding System") will be accepted in accordance with this Official Notice of Sale. The City is using BIDCOMP/PARITY as a communication mechanism to conduct the electronic bidding for the sale of $72,000,000 General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), as described herein. To the extent any instructions or directions set forth in BIDCOMP/PARITY conflict with this Official Notice of Sale, the terms of this Official Notice of Sale shall control. Each bidder submitting an electronic bid agrees (i) that it is solely responsible for all arrangements with BIDCOMP/PARITY, (ii) that BIDCOMP/PARITY is not acting as the agent of the City, and (iii) that the City is not responsible for ensuring or verifying bidder compliance with any of the procedures of BIDCOMP/PARITY. The City assumes no responsibility for, and each bidder expressly assumes the risks of and responsibility for, any incomplete, inaccurate or untimely bid submitted by such bidder through BIDCOMP/PARITY. Each bidder shall be solely responsible for making necessary arrangements to access the Electronic Bidding System for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Official Notice of Sale. Neither the City nor the Electronic Bidding System shall have any duty or obligation to provide or assure such access to any bidder, and neither the City nor BIDCOMP/PARITY shall be responsible for proper operation of, or have any liability for, any delays or interruptions of, or any damages caused by, BIDCOMP/PARITY. For further information about BIDCOMP/PARITY, potential bidders may contact BIDCOMP/PARITY at 1359 Broadway, 2na Floor, New York, New York 10018, telephone (212) 849-5021. In the event of a malfunction of the Electronic Bidding System, facsimile transmission bids, set forth on the City's Official Bid Form provided in connection with the sale of the Bonds, will be accepted up to 11:30 a.m., Local Time, on the Date of Sale. Bidders choosing to submit bids in the case of a malfunction by facsimile transmission shall use the following telecopier numbers for such transmission: (757) 385-4302 or (757) 3854135 (Attention: Patricia A. Phillips). Transmissions received after the deadline shall be rejected. It is the responsibility of the bidder to ensure that the bid is legible, that the bid is received not later than 11:30 a.m., Local Time, and that the bid is sent to one of the telecopier numbers set forth above. Illegible transmissions shall be rejected. The City's financial advisor, Government Finance Associates, Inc. ("Financial Advisor) will verify receipt of each bid submitted through facsimile transmission by contacting each bidder by telephone once the bid has been received. The City's Financial Advisor will, in no instance, correct, alter or in any way change bids submitted through facsimile transmission. Neither the City nor its Financial Advisor will be responsible for bids submitted by facsimile transmission not received in accordance with the provisions of this Official Notice of Sale. Bidders electing to submit bids via facsimile transmission will bear full and complete responsibility for the transmission of such bid. Each bid must be unconditional. E-1 Adjustment of Principal Amount After Award The City reserves the right, after the award of the Bonds to the successful bidder, to increase or decrease, by up to ten percent (10%), the principal amount of the Bonds being offered hereby. Any such increase or decrease in the principal amount of particular maturities of the Bonds will be communicated to the successful bidder by 5:00 p.m., Local Time, on the Date of Sale. The dollar amount bid for the principal of the Bonds by the successful bidder will be adjusted, as necessary, to reflect any increase or decrease in the principal amount of the applicable maturities of the Bonds so adjusted, but the interest rates specified by the successful bidder for each maturity will not be altered. Such adjusted dollar amount bid will not change the successful bidder's compensation per $1,000 of par amount of the Bonds from that which would have resulted from the bid submitted. The successful bidder may not withdraw its bid as a result of any change made within the foregoing limits. Principal Redemption The Bonds will be general obligation bonds of the City, dated the date of delivery (the "Dated Date"), and will mature serially or be subject to mandatory sinking fund redemptions on June 1 in the years and amounts shown below. Due June 1 Amount Due June 1 Amount 2010 $3,600,000 2020 $3,600,000 2011 3,600,000 2021 3,600,000 2012 3,600,000 2022 3,600,000 2013 3,600,000 2023 3,600,000 2014 3,600,000 2024 3,600,000 2015 3,600,000 2025 3,600,000 2016 3,600,000 2026 3,600,000 2017 3,600,000 2027 3,600,000 2018 3,600,000 2028 3,600,000 2019 3,600,000 2029 3,600,000 Serial Bonds, Term Bonds and Mandatory Sinking Fund Redemptions Bidders may provide in the bid form for all of the Bonds to be issued as serial Bonds or may designate consecutive annual principal amounts of the Bonds to be combined into not more than two Term Bonds. In the event that a bidder chooses to specify a Term Bond, each such Term Bond shall be subject to mandatory sinking fund redemption commencing on June 1 of the first year which has been combined to form such Term Bond and continuing on June I in each year thereafter until the stated maturity of such Term Bond. The amount redeemed in any year shall be equal to the principal amount for such year set forth in the amortization schedule above. Bonds to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall be selected by lot from among the maturities of the Term Bond being redeemed. The City shall be entitled to reduce its mandatory sinking fund redemption obligation in any year with respect to Term Bonds of any maturity by the principal amount of such Term Bonds theretofore optionally redeemed by the City. Description of the Bonds; Book -Entry Only System The Bonds will be issued by means of a book -entry system with no distribution of physical Bond certificates made to the public. One Bond certificate for each maturity will be issued to The Depository Trust Company, New York, New York ("DTC"), or its nominee, and immobilized in its custody. The book -entry system will evidence beneficial ownership of the Bonds in principal amounts of $5,000 or multiples thereof, with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. Bond certificates registered in the name of Cede & Co. will be deposited with DTC. Interest on the Bonds will be paid semiannually on December I and June 1, beginning December 1, 2009, and principal on the Bonds will be paid annually on June 1, beginning June 1, 2010, to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The City will not be E-2 responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be prepared, executed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that case, either a successor depository will be selected by the City or Bond certificates will be prepared, executed and delivered. Optional Redemption The Bonds that mature on or before June 1, 2019, are not subject to optional redemption prior to their stated maturities. The Bonds that mature on and after June 1, 2020, will be subject to redemption begriming June 1, 2019, in whole or in part at any time, at the option of the City, upon payment of the par amount of principal so redeemed plus interest accrued and unpaid to the redemption date. Selection of Bonds for Redemption; Notice of Redemption If less than all of the Bonds are called for optional redemption, the Bonds to be redeemed shall be selected by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less than all of the Bonds of a particular maturity are called for redemption, DTC or any successor securities depository will select the Bonds to be redeemed pursuant to its rules and procedures or, if the book -entry system is discontinued, the Bonds to be redeemed will be selected by the City Treasurer, who has been appointed registrar (the "Registrar"), by lot in such manner as the Registrar in its discretion may determine. In either case, each portion of the $5,000 principal amount is counted as one Bond for such purpose. The City will cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by facsimile transmission, registered or certified mail or overnight express delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner thereof. The City shall not be responsible for mailing notice of redemption to anyone other than DTC or another qualified securities depository or its nominee unless no qualified securities depository is the registered owner of the Bonds. If no qualified securities depository is the registered owner of the Bonds, notice of redemption shall be mailed to the registered owners of the Bonds. If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed portion shall be issued to the registered owner upon the surrender thereof. Security The Bonds will be general obligations of the City, secured by a pledge of the City's full faith and credit and unlimited taxing power. Use of Bond Proceeds As described in more detail in the City's Preliminary Official Statement, dated , 2009, the Bonds are being issued for the purpose of providing funds for various public improvements and to pay the costs of issuance related to the Bonds. Bidding Rules; Award of Bonds Bidders may only bid to purchase all of the Bonds. Bidders are invited to name the rate or rates of interest per annum which the Bonds are to bear in multiples of one -twentieth (1/20th) or one-eighth (1/8th) of one percent. All Bonds maturing on the same date must bear interest at the same rate. Any number of rates may be named provided that (a) the highest rate of interest may not exceed the lowest rate of interest by more than 4 percentage points, and (b) the highest rate of interest stated for any maturity may not exceed 6.0% per annum, but in no event shall the "true" interest cost exceed 5.5%. No bid for less than 99% of par plus accrued interest (computed on the E-3 basis of a 360 -day year and twelve 30 -day months) shall be considered. The City reserves the right to reject any or all bids (regardless of the interest rate bid), to reject any bid not complying with this Official Notice of Sale and, so far as permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process. As promptly as reasonably possible after the bids are received, the City will notify the bidder to whom the Bonds will be awarded, if and when such award is made. Such bidder, upon such notice, shall advise the City of the initial reoffering prices or yields to the public of each maturity of the Bonds (the "Initial Reoffering Prices or Yields") and details regarding the anticipated use of a municipal bond insurance policy, if any, in connection with the Bonds. The successful bidder must reasonably expect to sell to the public 10% or more in par amount of the Bonds from each maturity at the Initial Reoffering Prices or Yields. All bids will remain firm for a period of no less than three hours after the time specified for the opening of bids. An award of the Bonds, if made, will be made by the City within such three hour period or, with the express consent of the bidders, such longer time period as deemed necessary. Unless all bids are rejected, the Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale and submitting a bid which provides the lowest "true" interest cost to the City. True interest cost shall be determined for each bid by doubling the semiannual interest rate, compounded semiannually, necessary to discount the debt service payments from the payment dates to the Dated Date and to the bid price, such bid price excluding interest accrued to the date of settlement. If more than one bid offers the same lowest true interest cost, the successful bid will be selected by the City Manager by lot. The City reserves the right to reject any or all bids and to waive any irregularity or informality with respect to any bid. Bids for the Bonds shall not be conditioned upon obtaining insurance or any other credit enhancement. If a bidder proposes to obtain a policy of municipal bond insurance or any other credit enhancement, any such purchase of insurance or commitment therefor shall be at the sole option and expense of the bidder, and the bidder must pay any increased costs of issuance of the Bonds as a result of such insurance or commitment. Any failure by the bidder to obtain such a policy of insurance shall not in any way relieve such bidder of its contractual obligations arising from the acceptance of its bid for the purchase of the Bonds. Good Faith Deposit Each bid must be accompanied by a certified or cashier's check for $720,000 drawn upon an incorporated bank or trust company authorized to transact business in the Commonwealth of Virginia or in the City of New York and payable unconditionally to the order of the City of Virginia Beach, Virginia, to secure the City against any loss resulting from the failure of the successful bidder to comply with the terms of its bid. The check of the successful bidder will be deposited and credited toward the purchase price, and no interest will be allowed thereon to accrue to the benefit of the successful bidder. The proceeds of the check will be retained by the City as liquidated damages in case the successful bidder fails to accept delivery of and pay for the Bonds. Checks of unsuccessful bidders will be returned promptly upon award of the Bonds. Bidders must also clearly indicate to whom the check should be returned in the event of an unsuccessful bid. In lieu of the check described above, the deposit may be in the form of a Financial Surety Bond in the amount of $720,000 payable to the City. The Financial Surety Bond must be from an insurance company acceptable to the City and licensed to issue such a bond in the Commonwealth of Virginia, and such Financial Surety Bond must be submitted to the City prior to the opening of the bids and must be in a form acceptable to the City. The Financial Surety Bond must identify each bidder whose deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a Financial Surety Bond, then such successful bidder is required to submit its deposit to the City in the form of a cashier's or certified check or wire transfer not later than 11:30 a.m., Local Time, on the next business day following the award. If such deposit is not received by such time, the Financial Surety Bond may be drawn by the City to satisfy the deposit requirement. Bidders submitting an electronic or facsimile bid must deliver the good faith check (or, in lieu thereof, a Financial Surety Bond) by 11:30 a.m., Local Time, on June 3, 2009, to Patricia A. Phillips, Director of Finance, Virginia Beach Municipal Center, City Hall Building, Room 202, Virginia Beach, Virginia 23456. E-4 Delivery of the Bonds The Bonds will be delivered at the expense of the City in New York, New York, through the facilities of DTC on or about Jane 16, 2009. Concurrently with the delivery of the Bonds, the City will furnish to the successful bidder without cost (a) a certificate dated the date of delivery of the Bonds, signed by the appropriate City officials and stating that no litigation of any kind is then pending or, to the best of their information, knowledge and belief, threatened against the City to restrain or enjoin the issuance or delivery of the Bonds or the levy or collection of ad valorem taxes and (b) certificates dated the date of delivery of the Bonds, stating that the descriptions and statements in the Official Statement (except in the sections entitled "Book -Entry System" and "Tax Exemption' and in the columns "Price/ Yield" and "CUSIP No." on the inside cover), on the date of the Official Statement and on the date of delivery of the Bonds, were and are true and correct in all material respects, did not and do not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such descriptions and statements, in light of the circumstances under which they were made, not misleading. Such certificates will also state, however, that such City officials did not independently verify the information indicated in the Official Statement as having been obtained or derived from sources other than the City and its officers but they have no reason to believe that such information is not accurate. Certificate of Winning Bidder The successful bidder must, by facsimile transmission or overnight delivery received by the City within 24 hours after receipt of the bids for the Bonds, furnish the following information to the City to complete the Official Statement in final firm, as described below: A. The offering prices for the Bonds (expressed as the price or yield per maturity, exclusive of any accrued interest). B. Selling compensation (aggregate total anticipated compensation to the underwriters expressed in dollars, based on the expectation that all Bonds are sold at the prices or yields described in Subpart A. above). C. The identity of the underwriters if the successful bidder is a part of a group or syndicate. D. Any other material information necessary to complete the Official Statement in final form but not known to the City. Prior to the delivery of the Bonds, the successful bidder shall furnish to the City a certificate in form acceptable to bond counsel, to the effect that the successful bidder has made a bona fide public offering of the Bonds at the initial public offering prices set forth in such certificate, that the successful bidder has complied with Rule G- 37 of the Municipal Securities Rulemaking Board (the "MSRB") with respect to the City and that a substantial amount of the Bonds of each maturity were sold to the public (excluding bond houses, brokers and other intermediaries) at such initial public offering prices. Such certificate shall state that (1) it is made on the best knowledge, information and belief of the successful bidder and (2) 10% or more in par amount of the Bonds of each maturity was reasonable expected to be sold on the Date of Sale to the public at the initial public offering price (such amount being sufficient to establish the sale of a substantial amount of the Bonds). CUSIP Numbers It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with the terns of its bid. The City will assume responsibility for the expense of the initial printing of CUSIP numbers; provided, however, that the City assumes no responsibility for any CUSIP Service Bureau or other charges that may be imposed for the assignment of such numbers. All expenses in connection with the assignment of CUSIP numbers shall be paid by the successful bidder. It shall be the obligation of the successful bidder to furnish to DTC an underwriter E-5 questionnaire and to the City the CUSIP numbers for the Bonds within two business days following the date of award. Official Statement The City will furnish the successful bidder at the expense of the City up to 500 copies of the final Official Statement by the earlier of the closing date and seven business days from the date of the award of the Bonds, as specified in Rule 15c2-12 (the "Rule") of the Securities and Exchange Commission (the "SEC") and the rules of the MSRB provided that minor delays in furnishing such final Official Statement will not be a basis for failure to pay for and accept delivery of the Bonds. Additional copies will be made available at the successful bidder's request and expense. The City assumes no responsibility or obligation for the distribution or delivery of the Official Statement to anyone other than the successful bidder. The successful bidder agrees to provide one copy of the Official Statement to at least one Nationally Recognized Municipal Securities Information Repository ("NRMSIR") within the meaning of the Rule upon receipt of the Official Statement from the City and two copies of the Official Statement (with any required forms) to the MSRB or its designee no later than ten business days following the Date of Sale. The successful bidder shall notify the City as soon as practicable of (1) the date which is the end of the underwriting period (such `underwriting period" is described in the Rule), and (2) the date of filing the Official Statement with a NRMSIR and MSRB or its designee. If the Bonds are awarded to a syndicate, the City will designate the senior managing underwriter of the syndicate as its agent for purposes of distributing copies of the Official Statement to each participating underwriter. Any underwriter executing and delivering a bid form with respect to the Bonds agrees thereby that if its bid is accepted it shall accept such designation and shall enter into a contractual relationship with all participating underwriters for the purposes of assuring the receipt and distribution by each such participating underwriter of the Official Statement, unless another firm is so designated by the syndicate in writing and approved by the City. Legal Opinion The approving opinion of Troutman Sanders LLP, Richmond, Virginia, with respect to the Bonds will be furnished to the successful bidder at the expense of the City and will state that the Bonds constitute valid and legally binding obligations of the City and that its Council is authorized and required by law, unless other funds are lawfully available and appropriated for timely payment of the Bonds, to levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay the principal of and interest on the Bonds as the same become due. Federal and State Securities Laws No action has been taken to qualify the Bonds under the federal and Commonwealth securities laws. Tax Exemption The Official Statement relating to the Bonds contains a discussion of the effect of the Internal Revenue Code of 1986, as amended, on the exclusion from gross income of interest on the Bonds and a discussion of the opinion of Troutman Sanders LLP insofar as it concerns such exclusion. Continuing Disclosure To assist the successful bidder in complying with the Rule, the City will agree, pursuant to the Continuing Disclosure Agreement, to provide certain annual financial information and operating data and notices of the occurrence of certain events, if material. A description of this undertaking is set forth in the Preliminary Official Statement for the Bonds and will also be set forth in the final Official Statement for the Bonds (See Appendix C of the Preliminary Official Statement dated , 2009). E-6 Change of Date and Time for Receipt of Bids The City expects to take bids on the Bonds on June 3, 2009. However, the City reserves the right to postpone the date and time established for the receipt of bids. Any such postponement will be announced by the TM3, or any other such service. If the receipt of bids is postponed, any alternative date for receipt of bids will be announced via the TM3, or any other such service. Any bidder must submit a bid for the purchase of the Bonds on such alternative sale date in conformity with the provisions of this Official Notice of Sale, except for any changes announced via theTM3 newswire, or any other such service, as described therein. Additional Information For further information relating to the Bonds and the City, reference is made to the City's Preliminary Official Statement. The City has deemed the Preliminary Official Statement to be final as of its date within the meaning of the Rifle, except for the omission of certain pricing and other information permitted to be omitted pursuant to the Rule. The Official Bid Form and the Preliminary Official Statement may be obtained from the City's Financial Advisor, Government Finance Associates, Inc. (telephone 212-521-4090). Dated: , 2009 CITY OF VIRGINIA BEACH, VIRGINIA By: James K. Spore City Manager E-7 Virginia Beach, Virginia OFFICIAL BID FORM Electronic bids (or facsimile bids as provided in the Official Notice of Sale) must be submitted by 11:30 am, Local Time. To: City Manager June 3, 2009 Office of the City Manager Virginia Beach, Virginia 23456 On behalf of the firm(s) listed below and pursuant to the terms and conditions listed in the City's Official Notice of Sale, we offer to purchase the $72,000,000 General Obligation Public Improvement Bonds, Series 2009 (the "Bonds"), of the City of Virginia Beach, Virginia, dated the date of delivery. This offer is made for all of the Bonds and for not less than all, maturing on June 1 in the years shown below. The schedule of maturities and interest rates upon which this bid is based are as follows: Maturity Amount Rate Maturity Amount Rate 2010 $3,600,000 2020 $3,600,000 2011 3,600,000 2021 3,600,000 2012 3,600,000 2022 3,600,000 2013 3,600,000 2023 3,600,000 2014 3,600,000 2024 3,600,000 2015 3,600,000 2025 3,600,000 2019 3,600,000 2026 3,600,000 2017 3,600,000 2027 3,600,000 2018 3,600,000 2028 3,600,000 2019 3,600,000 2029 3,600,000 (CROSS OUT THE SERIAL BOND MATURITIES BEING BID AS TERM BONDS.) Term Bonds (Optional - No More Than Two Term Bonds) First Year of Mandatory Year of Maturity Total Principal Amounts Rate Redemption (LEAVE BLANK IF NO TERM BONDS ARE SPECIFIED) We will pay $ , which is not less than $71,280,000 or not less than 99% of par (representing a discount or premium of $ ), and will accept delivery of the Bonds by means of a book -entry system at The Depository Trust Company, New York, New York. Please indicate the appropriate choice: We have posted a surety bond in the amount of $720,000. If awarded the bid, we will deliver to the City $720,000 in good faith money by 11:30 a.m., Local Time, on the next business day immediately following the date of award, or the City will draw upon the surety bond and apply it in accordance with the Official Notice of Sale against any loss resulting from the successful bidder failing to comply with the terms of this bid. We enclose (or previously delivered) a certified or cashier's check for $720,000 drawn upon an incorporated bank or trust company as detailed in the Official Notice of Sale and payable unconditionally to the order of the City of Virginia Beach, Virginia, which is to be applied in accordance with the Official Notice of Sale against any loss resulting from the successful bidder failing to comply with the terms of this bid. The good faith money will be deposited and credited on the purchase price, and no interest will be credited on the good faith money to the successful bidder. The good faith money will be retained by the City as liquidated damages in case the successful bidder fails to accept delivery of and pay for the Bonds. Any checks of unsuccessful bidders will be returned promptly upon award of the Bonds. The undersigned hereby acknowledges receipt and review of the Preliminary Official Statement referred to in the Official Notice of Sale. Respectfully submitted, (Name of Bidding Firm) (Authorized Signature) (Name & Phone Number of Contact Person) The good faith check has been returned and receipt thereof is duly acknowledged. NO ADDITION OR ALTERATION, EXCEPT AS PROVIDED ABOVE, SHOULD BE MADE TO THIS BID. (NOTE - The following is stated for information only and is not part of this bid: The true interest cost of this bid, calculated in accordance with the Official Notice of Sale, is % (to six decimal places). A list of the members of our syndicate is attached.) E-8 rrE If'o CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: The FY 2009-10 Operating Budget and Related Ordinances MEETING DATE: May 12, 2009 ■ Background: On March 24, 2009, the City of Virginia Beach FY 2009-10 Proposed Biennial Resource Management Plan with Second Year Changes, which includes the Operating Budget and Capital Improvement Program, was presented to City Council. City Council workshops were held on April 7th, 14 , 21St, 28tH, and May 5tH to provide information to the City Council. On April 16th and 28th public hearings were held to provide the public the opportunity to comment on the Proposed Resource Management Plan. ■ Considerations: The proposed ordinances were updated to reflect City Council's direction at the May 5, 2009 Reconciliation Workshop. Attached is a letter, dated May 4th, signed by Mayor William D. Sessoms, Jr. and Vice Mayor Louis R. Jones, outlining the FY 2010 Operating Budget and Capital Improvement Program recommendations. Also attached is a Budget Resolution from the School Board which adds $31,163,815 to the Operating Budget. The following ordinances are provided for the Council's consideration and approval to implement the FY 2009-10 Operating Budget. Unless otherwise noted, approval requires an affirmative vote by a majority of the members of City Council. An Ordinance Making Appropriations for the Fiscal Year Beginning July 1, 2009 and Ending June 30, 2010 in the Sum of $1,763,292,679 for Operations and $ 617,334,358 in Interfund Transfers and Regulating the Payment of Money Out of the City Treasury, as Amended 2. An Ordinance Establishing the Tax Levy on Real Estate for Fiscal Year 2010 3. An Ordinance Establishing the Tax Levy on Personal Property and Machinery and Tools for the Calendar Year 2010 4. An Ordinance to Authorize the City Manager to Submit an Annual Funding Plan to the U.S. Department of Housing and Urban Development 5. An Ordinance to Transfer $8,800,000 from the School Reserve Special Revenue Fund to the City's FY 2008-09 General Fund Operating Budget 6. An Ordinance to Declare $9,000,000 of Funding Within the Sandbridge Tax Increment Financing District as Surplus Funds in the FY 2008-09 Operating Budget 7. An Ordinance to Suspend the Transition Area Special Revenue Fund 8. An Resolution to Adopt the Budget Through an Annual Rather Than Biennial Process 9. An Ordinance to Eliminate Section 2-186.1 of the City Code of the City of Virginia Beach, Virginia ■ Public Information: Two Public Hearings have been held concerning the Operating Budget. Information on these ordinances will be disseminated to the public through the normal Council agenda process involving the advertisement of the City Council agenda, pursuant to local and State code requirements. ■ Alternatives: No alternatives are available to implement the FY 2009-10 Operating Budget. ■ Recommendations: It is recommended that the attached ordinances implementing the FY 2009 -10 Operating Budget be approved. ■ Attachments: FY 2009-10 Operating Budget ordinances. Letter Dated May 4th from Mayor and Vice Mayor VB School Board Budget Resolution — FY 2009-10 Recommended ,Action: Approval of Ordinances Submitting Department/Agency: Department of Management Services City Manager � �co'�L AN ORDINANCE MAKING APPROPRIATIONS FOR THE FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING JUNE 30, 2010 IN THE SUM OF $ 1,763,292,679 FOR OPERATIONS AND $617,334,358 IN INTERFUND TRANSFERS AND REGULATING THE PAYMENT OF MONEY OUT OF THE CITY TREASURY, AS AMENDED WHEREAS, the City Manager has heretofore submitted an Annual Budget for the City for the fiscal year beginning July 1, 2009, and ending June 30, 2010, and it is necessary to appropriate sufficient funds to cover said budget; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: Sec. 1. That the amounts named aggregating $2,380,627,037 consisting of $617,334,358 in interfund transfers and $1,763,292,679 for operations, are hereby appropriated subject to the conditions hereinafter set forth for the use of departments, and designated funds of the City government, and for the purposes hereinafter mentioned, as set forth in the Annual Operating Budget, which is hereby incorporated by reference, for the fiscal year beginning July 1, 2009, and ending June 30, 2010, a summary of which is attached to this ordinance as "Attachment A — Appropriations." Sec. 2. That in accordance with Section 5.04 of the City Charter, Estimated Revenue in Support of Appropriations is set forth in said Annual Operating Budget, with a summary of Estimated Revenue in Support of Appropriations attached to this ordinance as "Attachment B — Revenues." Sec. 3. With the exception of the School Operating Fund, the total number of full-time permanent positions shall be the maximum number of positions authorized for the various departments of the City during the fiscal year, except for changes or additions authorized by the Council or as hereinafter provided. The City Manager may from time to time increase or decrease the number of part-time or temporary positions provided the aggregate amount expended for such services shall not exceed the respective appropriations made therefore. The City Manager is further authorized to make such rearrangements of positions within and between the departments as may best meet the needs and interests of the City. Sec. 4. To improve the effectiveness and efficiencies of the government in service delivery, the City Council hereby authorizes the City Manager or his designee to transfer appropriated funds and existing positions throughout the fiscal year as may be necessary to implement organizational adjustments that have been authorized by the City Council. Unless otherwise directed by the City Council, such organizational adjustments shall be implemented on such date or dates as the City Manager determines, in his discretion, to be necessary to guarantee a smooth and orderly transition of existing organizational functions. The City Manager shall make a report each year to the City Council identifying the status and progress of any such organizational adjustments. Sec. 5. All current and delinquent collections of local taxes shall be credited to the General Fund and, where appropriate, to any special service district special revenue fund or any tax increment financing funds created by City Council. Transfers shall be made from the General Fund to the respective designated funds to which a special levy is made in the amount of collection for each specially designated fund. Sec. 6. All balances of the appropriations payable out of each fund of the City Treasury at the close of business for the fiscal year ending on June 30, 2010, unless otherwise provided for, are hereby declared to be lapsed into the fund balance of the respective funds, except the School Operating Fund which shall lapse into the General Fund Balance, and may be used for the payment of the appropriations that may be made in the appropriation ordinance for the fiscal year beginning July 1, 2010. However, there shall be retained in the General Fund an undesignated fund balance of 8% to 12% of the following year's budgeted revenues, for contingency and emergency situations, not to be used to support appropriations approved in the ordinance for the fiscal year beginning July 1, 2009, except upon subsequent authorization by City Council. 56 Sec. 7. That the City's debt management policies for the Water and Sewer Enterprise Fund shall 57 serve as a basis for developing financial strategies for the water and -sanitary sewer system based on the 58 following guidelines: (a) for the Water and Sewer Fund, the goal of retaining working capital equal to 80% to 59 100% of one year's operating expense shall be pursued; (b) for the Water and Sewer Fund, the goal shall be for 60 debt service coverage on its water and sewer revenue bonds at not less than 1.50 times and, on a combined 61 basis, including water and sewer general obligation bonds, at no less than 1.20 times and (c) for the Water and 62 Sewer Fund, contributions from non -borrowed funds, on a five-year rolling average basis, will be sought for 63 approximately 25% of the annual capital program for the water and sewer system. 64 65 Sec. 8. All balances of appropriations in each fund which support authorized obligations or are 66 encumbered at the close of the business for the fiscal year ending on June 30, 2010, are hereby declared to be 67 reappropriated into the fiscal year beginning July 1, 2010, and estimated revenues adjusted accordingly. 68 69 Sec. 9. No department or agency for which appropriations are made under the provisions of this 70 ordinance shall exceed the amount of such appropriations except with the consent and approval of the City 71 Council first being obtained. It is expressly provided that the restrictions with respect to the expenditure of the 72 funds appropriated shall apply only to the totals for each Appropriation Unit included in this ordinance and does 73 not apply to Interfund Transfers. 74 75 Sec. 10. The: City Manager or the Director of Management Services is hereby authorized to approve 76 transfers of appropriations in an amount up to $100,000 between any Appropriation Units included in this 77 ordinance. The City Manager shall make a monthly report to the City Council of all transfers between $25,000 78 and $100,000. In addition, the City Manager may transfer, in amounts necessary, appropriations from all 79 Reserves for Contingencies except Reserve for Contingencies — Regular, within the intent of the Reserve as 80 approved by City Council. 81 82 Sec. 11. The; City Manager or the Director of Management Services is hereby authorized to establish 83 and administer budgeting within Appropriation Units consistent with best management practices, reporting 84 requirements, and the programs and services adopted by the City Council. 85 86 Sec. 12. The City Manager or the Director of Management Services is hereby authorized to change 87 the Estimated Revenues included in this ordinance to reflect expected collections. If the Estimated Revenue in 88 support of an Operating Appropriation Unit declines, the City Manager or the Director of Management Services is 89 hereby authorized to reduce, subject to any other provision of law, those appropriations to equal the decline in 90 Estimated Revenue. The City Manager shall give prior notice to the City Council of any reduction to total 91 appropriations exceeding $100,000. The notice to City Council shall identify the basis and amount of the 92 appropriation reduction and the Appropriation Units affected. The accounting records of the City will be 93 maintained in a manner that the total of Estimated Revenue is equal to the total of the Appropriation Units for 94 each of the City's funds. The City Manager or the Director of Management Services is hereby authorized to 95 transfer any excess appropriations to the Reserve for Contingencies after all anticipated expenditures for which 96 those funds were appropriated have been incurred. Nothing in this section shall be construed as authorizing any 97 reduction to be made in the amount appropriated in this ordinance for the payment of interest or principal on the 98 bonded debt of the City Government. 99 100 Sec. 13. Allowances made from the appropriations made in this ordinance by any or all of the City 101 departments, bureaus, or agencies, to any of their officers and employees for expenses on account of the use by 102 such officers and employees of their personal automobiles in the discharge of their official duties shall not exceed 103 forty two cents ($0.42) per mile of actual travel for the first 15,000 miles and fifteen cents ($0.15) per mile for 104 additional miles of such use within the fiscal year. 105 106 Sec. 14. In the event of an emergency and under emergency circumstances wherein the City Council 107 cannot reasonably hold a meeting, the City Manager is authorized to transfer and expend appropriated sums 108 from any budget account to ensure that the emergency is handled as efficiently and expeditiously as possible. 109 Immediately following the expenditure of funds under this provision, and as soon as the City Council can 110 reasonably meet under the existing circumstances, the City Manager shall notify the City Council of the reason 111 for such action, how funds were expended, and present to the City Council for adoption an emergency 112 appropriations ordinance that sets forth what measures are required to ensure that funds are forthwith restored to 113 the appropriate accounts and that the budget is balanced at the end of the fiscal year in which the emergency 114 expenditures occurred. 115 116 An emergency is defined for the purposes of this provision as an event that could not have been 117 reasonably foreseen at the time of the adoption of the budget, and in which (i) an immediate threat to the public 118 health, safety or welfare is involved, such as clean-up after a hurricane, and/or (ii) immediate action is required to 119 protect or preserve public properties. 120 121 Sec. 15. All travel expense accounts shall be submitted on forms approved by the Director of Finance 122 and according to regulations approved by the City Council. Each account shall show the dates expenses were 123 incurred or paid; number of miles traveled; method of travel; hotel expenses; meals; and incidental expenses. 124 The Director of Finance is specifically directed to withhold the issuance of checks in the event expense accounts 125 are submitted for "lump -sum" amounts. 126 127 Sec. 16. Violation of this ordinance may result in disciplinary action by the City Manager against the 128 person or persons responsible for the management of the Appropriation Unit in which the violation occurred. 129 130 Sec 17 Funds in the amount of $366,814 are hereby appropriated to the School Health Insurance 131 Internal Service Fund from the fund balance of the Health Insurance Trust Fund. This change allows the Health 132 Insurance Trust Fund to be removed from the accounting records. The Health Insurance Trust Fund originally 133 included the premiums for City employees' health insurance before these premiums were consolidated with 134 School employees' health insurance premiums in the School Health Insurance Internal Service Fund. 135 136 Sec 18 The City Manager and School Board are authorized to expend funds related to the City and 137 School's GASB45 liability in the School Health Insurance Internal Service Fund. 138 139 Sec. x-719. This ordinance shall be effective on July 1, 2009. 140 141 Sec. 48 20. If any part of this ordinance is for any reason declared to be unconstitutional or invalid, such 142 decision shall not affect the validity of the remaining parts of this ordinance. 143 144 Adopted by the Council of the City of Virginia Beach, Virginia, on this the 12th day of May, 2009. 145 146 Requires an affirmative vote by a majority of all the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services City Attorney' ffice City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment A - Appropriations 002 General Fund Agriculture Benefits Administration Board of Equalization Circuit Court City Attorney City Auditor City Clerk City Manager City Real Estate Assessor City Treasurer Clerk of the Circuit Court Commissioner of the Revenue Commonwealth's Attorney Communications and Information Technology Community Organization Grants Convention and Visitor Bureau Cultural Activities Director of Finance Economic Development Emergency Communications and Citizen Services Emergency Medical Services Employee Special Benefits Fire General District Court General Registrar Health Housing and Neighborhood Preservation Human Resources Human Services Independent Financial Services Juvenile Probation Juvenile and Domestic Relations District Court Library Magistrates Management Services Mass Transit Operations Municipal Council Museums Parks and Recreation Planning and Community Development Police Public Works Regional Participation Reserve for Contingencies Revenue Reimbursements Strategic Growth Area Transfer to Other Funds Vehicle Replacements Wetlands Board of Virginia Beach Zoning Board of Appeals Education * Education *This provides lump -sum funding for Education. FY 2009-10 Revised 860,134 824,814 19,130 998,897 3,875,841 576,573 626,129 3,069,307 3,114,292 5,186,382 2,788,828 3,942,320 7,424,710 21,903,513 525,662 9,939,621 2,512,233 5,022,497 2,045,444 9,168,294 7,228,263 4,656,199 42,642,222 320,995 1,264,732 3,453,359 1,750,830 4,536,071 112,146, 368 153,878 2,357,474 162,320 16,675,646 130,910 4,034,514 2,907,059 587,139 9,600,189 13,691,224 10,145,290 87,645,513 84,616,871 2,071,573 2,752,750 15,928,947 194,650 530,329,643 3,111,914 14,331 41,789 Fund 002 Appropriation Totals 1,049,577,284 833,677,199 Education Appropriation Totals 833,677,199 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment A - Appropriations 130 Law Library Fund FY 2009-10 Revised Library (Law Library) 3,284,763 223,307 Reserve for Contingencies Parks and Recreation (TGIF) 5,300 Transfers to Other Funds 590,000 60,000 835,161 Fund 130 Appropriation Totals 288,607 142 DEA Seized Property Special Revenue Fund Fund 152 Appropriation Totals 19,174,911 Commonwealth's Attorney - 160,000 Fund 142 Appropriation Totals 160,000 147 Federal Sectional 8 Program Special Revenue Fund Housing and Neighborhood Preservation (Section 8 Housing) 1,742,664 Housing and Neighborhood Preservation (Section 8) 16,081,642 Fund 147 Appropriation Totals 17,824,306 149 Sheriff's Department Special Revenue Fund Sheriff and Corrections 35,325,573 Fund 149 Appropriation Totals 35,325,573 150 Inmate Services Special Revenue Fund Reserve for Contingencies 1,551 Sheriff and Corrections (Inmate Services) 668,608 Transfer to Other Funds 274,551 Fund 150 Appropriation Totals 944,710 151 Parks and Recreation Special Revenue Fund Parks and Recreation 25,727,995 Public Works 2,694,270 Reserve for Contingencies 83,502 Fund 151 Appropriation Totals 28,505,767 152 Tourism Growth Investment Fund Convention and Visitor Bureau (TGIF) 3,284,763 Cultural Affairs (TGIF) 50,500 Parks and Recreation (TGIF) 33,210 Planning and Community Development (TGIF) 590,000 Public Works (TGIF) 835,161 Transfer to Other Funds 14,381,277 Fund 152 Appropriation Totals 19,174,911 157 Sandbridge Special Service District Special Revenue Fund Transfer to Other Funds 3,336,076 Fund 157 Appropriation Totals 3,336,076 158 EMS State Four -for -Life Special Revenue Fund Transfer to Other Funds 854 Fund 158 Appropriation Totals 854 161 Aariculture Reserve Proqram Special Revenue Fund Agriculture (Agricultural Reserve Program) 159,827 Future C.I.P. Commitments 700,140 Transfer to Other Funds 7,034,647 Fund 161 Appropriation Totals 7,894,614 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment A - Appropriations FY 2009-10 Revised 163 Tourism Advertising Program Special Revenue Fund Convention and Visitor Bureau (Tourism Advertising) 9,992,642 Transfer to Other Funds 56,838 Fund 163 Appropriation Totals 10,049,480 165 Lvnnhaven Mall Tax Increment Financing Fund Reserve for Contingencies 103,527 Tax Increment Financing 2,050,000 Fund 165 Appropriation Totals 2,153,527 166 Sandbridge Tax Increment Financing Fund Future C.I.P. Commitments 9,000,000 Transfer to Other Funds 868,924 Fund 166 Appropriation Totals 9,868,924 167 Arts and Humanities Commission Special Revenue Fund Transfer to Other Funds 37,237 Fund 167 Appropriation Totals 37,237 169 Central Business District - South TIF (Town Center) Fund Future C.I.P. Commitments 500,000 Reserve for Contingencies 119,880 Transfer to Other Funds 5,681,054 Fund 169 Appropriation Totals 6,300,934 172 Open Space Special Revenue Fund Parks and Recreation (Open Space) 406,402 Public Works (Open Space) 15,300 Transfer to Other Funds 4,898,134 Fund 172 Appropriation Totals 5,319,836 173 Maior Proiects Special Revenue Fund Transfer to Other Funds 22,051,701 Fund 173 Appropriation Totals 22,051,701 174 Town Center Special Tax District Reserve for Contingencies 283,564 Town Center Special Tax District 1,873,331 Fund 174 Appropriation Totals 2,156,899- 175 Golf Course Special Revenue Fund Parks and Recreation (Golf Courses) 2,486,191 Reserve for Contingencies 59,043 Transfer to Other Funds 289,550 Fund 175 Appropriation Totals 2,834,784 180 Community Development Special Revenue Fund Community Development Block Grants 1,395,723 Housing and Neighborhood Preservation 1,290,743 Reserve for Contingencies 741 Transfer to Other Funds 128,104 Fund 180 Appropriation Totals 2,815,311 181 CD Loan and Grant Fund Community Development Block Loan and Grants 746,336 Fund 181 Appropriation Totals 746,336 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment A - Appropriations FY 2009-10 Revised 182 Federal Housing Assistance Grant Fund Federal HOME Grants 1,528,449 Fund 182 Appropriation Totals 1,528,449 183 Grants Consolidated Fund 31,000 Commonwealth's Attorney Grants 302,791 Emergency Medical Services Grants 323,954 Fire (Fire Programs) 610,757 Housing and Neighborhood Grants 1,077,437 Human Services 1,317,960 Police (Uniform Patrol Grant) 71,271 Public Works Grants 15,000 Reserve for Contingencies 104,915 Social Services Grants 768,477 Transfer to Other Funds 400,000 Fund 183 Appropriation Totals 4,992,562 187 Marine Science Museum Grants Fund Museum Grants 31,000 Fund 187 Appropriation Totals 31,000 241 Water and Sewer Fund Debt Service 16,389,014 Public Utilities 68,837,653 Reserve for Contingencies 3,281,998 Transfer to Other Funds 13,985,245 Parks and Recreation Capital Projects Fund 241 Appropriation Totals 102,493,910 253 Parking Enterprise Fund Convention and Visitor Bureau (Parking) 1,669,306 Reserve for Contingencies 11,669 Transfer to Other Funds 866,776 Fund 253 Appropriation Totals 2,547,751 255 Storm Water Utilitv Enterprise Fund Debt Service 2,011,002 Public Works (Storm Water Operations) 10,150,967 Reserve for Contingencies 160,777 Transfer to Other Funds 12,653,747 Fund 255 Appropriation Totals 24,976,493 302 General Debt Fund Debt Service 128,009,417 Fund 302 Appropriation Totals 128,009,417 540 General Government Capital Projects Fund Buildings Capital Projects 3,234,536 Coastal Capital Projects 6,214,818 Communications and Information Technology Projects 3,016,000 Economic and Tourism Development Capital Projects 5,880,578 Parks and Recreation Capital Projects 9,900,175 Roadways Capital Projects 8,336,291 Fund 540 Appropriation Totals 36,582,398 541 Water and Sewer Capital Proiects Fund Water and Sewer Capital Projects 7,500,000 Fund 541 Appropriation Totals 7,500,000 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment A - Appropriations FY 2009-10 Revised 555 Storm Water Capital Projects Fund Storm Water Capital Projects 10,802,279 Fund 555 Appropriation Totals 10,802,279 908 City Beautification Fund Parks and Recreation 909 Library Gift Fund_ Library Gift 911 Parks and Recreation Gift Fund Parks and Recreation (Gift Fund) Total Appropriations for all Funds Less Interfund Transfers Net Appropriations Totals 20,400 Fund 908 Appropriation Totals 20,400 5,712 Fund 909 Appropriation Totals 5,712 91,800 Fund 911 Appropriation Totals 91,800 2,380,627,037 617,334,358 1,763,292,679 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment B - Revenues FY 2009-10 Revised 002 General Fund Revenue from Local Sources General Property Taxes 599,594,310 Other Local Taxes 255,516,845 Permits, Privilege Fees, and Regulatory Licenses 4,329,835 Fines and Forfeitures 7,942,961 From the Use of Money and Property 9,824,843 Charges for Services - 16,768,366 Miscellaneous Revenue 4,557,551 Revenue from the Commonwealth 335,208,106 Other Sources from the Commonwealth 107,006,368 Revenue from the Federal Government 23,033,419 Transfers from Other Funds 16,202,786 Specific Fund Reserves 4,800,000 Fund 002 Revenue Totals 1,049,577,284 Education Revenue from Local Sources From the Use of Money and Property 995,000 Charges for Services 19,607,171 Miscellaneous Revenue 11,487,901 Revenue from the Commonwealth 19,381,205 State Shared Sales Tax 72,941,384 Other Sources from the Commonwealth 293,751,478 Revenue from the Federal Government 94,633,121 Transfers from Other Funds 335,208,106 Specific Fund Reserves 5,053,038 Education Revenue Totals 833,677,199 130 Law Library Fund Revenue from Local Sources From the Use of Money and Property 7,087 Charges for Services 281,520 Fund 130 Revenue Totals 288,607 142 DEA Seized Property Special Revenue Fund Revenue from the Commonwealth Other Sources from the Commonwealth 160,000 Fund 142 Revenue Totals 160,000 147 Federal Sectional 8 Program Special Revenue Fund Revenue from Local Sources Miscellaneous Revenue 24,000 Revenue from the Federal Government 17,702,204 Transfer from Other Funds 98,102 Fund 147 Revenue Totals 17,824,306 149 Sheriff's Department Special Revenue Fund Revenue from Local Sources Charges for Services 2,288,255 Miscellaneous Revenue 37,960 Revenue from the Commonwealth Other Sources from the Commonwealth 19,381,205 Revenue from the Federal Government 321,200 Transfer from Other Funds 12,644,250 Specific Fund Reserves 652,703 Fund 149 Revenue Totals 35,325,573 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment B - Revenues FY 2009-10 Revised 150 Inmate Services Special Revenue Fund Revenue from Local Sources From the Use of Money and Property 15,000 Charges for Services 929,710 Fund 150 Revenue Totals 944,710 151 Parks and Recreation Special Revenue Fund 4,824,373 Revenue from Local Scurces 3,070,241 From the Use of Money and Property 1,084,782 Charges for Services 10,979,797 Miscellaneous Revenue 37,000 Revenue from the Federal Government 1,000 Transfer from Other Funds 16,403,188 Miscellaneous Revenue Fund 151 Revenue Totals 28,505,767 152 Tourism Growth Investment Fund 4,824,373 Revenue from Local Sources 3,070,241 Permits, Privilege Fees, and Regulatory Licenses 72,091 Fines and Forfeitures 583,278 From the Use of Money and Property 523,040 Transfer from Other Funds 17,208,652 Specific Fund Reserves 787,850 Miscellaneous Revenue Fund 152 Revenue Totals 19,174,911 157 Sandbridge Special Service District Special Revenue Fund Revenue from Local Sources General Property Taxes 755,302 Other Local Taxes 863,538 From the Use of Money and Property 80,680 Transfer from Other Funds 1,589,432 Specific Fund Reserves 47,124 Fund 157 Revenue Totals 3,336,076 158 EMS State Four -for -Life Special Revenue Fund Specific Fund Reserves 854 Fund 158 Revenue Totals 854 161 Aariculture Reserve Proqram Special Revenue Fund Transfer from Other Funds 4,824,373 Specific Fund Reserves 3,070,241 Fund 161 Revenue Totals 7,894,614 163 Tourism Advertising Program Special Revenue Fund Revenue from Local Sources From the Use of Money and Property 48,442 Charges for Services 306,950 Miscellaneous Revenue 40,000 Transfer from Other Funds 9,443,263 Specific Fund Reserves 210,825 Fund 163 Revenue Totals 10,049,480 165 Lynnhaven Mall Tax Increment Financing Fund Revenue from Local Sources General Property Taxes 2,153,527 Fund 165 Revenue Totals 2,153,527 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment B - Revenues FY 2009-10 Revised 166 Sandbridc lle Tax Increment Financing Fund Revenue from Local Sources General Property Taxes 9,369,273 From the Use of Money and Property 260,188 Specific Fund Reserves 239,463 Fund 166 Revenue Totals 9,868,924 167 Arts and Humanities Commission Special Revenue Fund Specific Fund Reserves 37,237 Fund 167 Revenue Totals 37,237 169 Central Business District - South TIF (Town Center) Fund Revenue from Local Sources General Property Taxes 5,729,830 From the Use of Money and Property 71,104 Transfers from Other Funds 500,000 Fund 169 Revenue Totals 6,300,934 172 Open Space Special Revenue Fund Revenue from Local Sources From the Use of Money and Property 100,411 Transfers from Other Funds 3,985,256 Specific Fund Reserves 1,234,169 Fund 172 Revenue Totals 5,319,836 173 Major Projects Special Revenue Fund Revenue from Local Sources From the Use of Money and Property 762,790 Transfers from Other Funds 17,143,266 Specific Fund Reserves 4,145,645 Fund 173 Revenue Totals 22,051,701 174 Town Center Special Tax District Revenue from Local Sources General Property Taxes 1,660,420 From the Use of Money and Property 196,475 Transfers from Other Funds 300,000 Fund 174 Revenue Totals 2,156,895 175 Golf Course Special Revenue Fund Revenue from Local Sources From the Use of Money and Property 186,524 Charges for Services 2,648,260 Fund 175 Revenue Totals 2,834,784 180 Community Development Special Revenue Fund Revenue from Local Sources Charges for Services 70,000 Revenue from the Federal Government 1,932,626 Transfers from Other Funds 812,685 Fund 180 Revenue Totals 2,815,311 181 CD Loan and Grant Fund Revenue from the Federal Government 521,336 Non -Revenue Receipts 225,000 Fund 181 Revenue Totals 746,336 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment B - Revenues FY 2009-10 Revised 182 Federal Housing Assistance Grant Fund Revenue from the Federal Government 1,403,449 Non -Revenue Receipts 125,000 Fund 182 Revenue Totals 1,528,449 183 Grants Consolidated Fund 125,081,967 Revenue from Local Sources 2,927,450 Charges for Services 65,000 Revenue from the Commonwealth 96,377,637 Other Sources from the Commonwealth 2,852,503 Revenue from the Federal Government 1,665,602 Transfers from Other Funds 409,457 Specific Fund Reserves Fund 183 Revenue Totals 4,992,562 187 Marine Science (Museum Grants Fund Revenue from the Federal Government 31,000 Fund 187 Revenue Totals 31,000 241 Water and Sewer Fund 125,081,967 Revenue from Local Sources 2,927,450 From the Use of Money and Property 2,177,974 Charges for Services 96,377,637 Miscellaneous Revenue 259,373 Non -Revenue Receipts 3,314,693 Transfers from Other Funds 264,233 Specific Fund Reserves 100,000 Fund 241 Revenue Totals 102,493,910 253 Parking Enterprise Fund Revenue from Local Sources From the Use of Money and Property 87,000 Charges for Services 2,201,948 Transfers from Other Funds 258,803 Fund 253 Revenue Totals 2,547,751 255 Storm Water Utility Enterprise Fund Revenue from Local Sources From the Use of Money and Property 160,000 Charges for Services 19,337,715 Revenue from the Commonwealth Other Sources from the Commonwealth 5,406,916 Transfers from Other Funds 71,862 Fund 255 Revenue Totals 24,976,493 302 General Debt Fund Transfers from Other Funds 125,081,967 Specific Fund Reserves 2,927,450 Fund 302 Revenue Totals 128,009,417 540 General Government Capital Projects Fund Transfers from Other Funds 36,582,398 Fund 540 Revenue Totals 36,582,398 541 Water and Sewer Capital Projects Fund Transfers from Other Funds 7,500,000 Fund 541 Revenue Totals 7,500,000 City of Virginia Beach, Virginia Fiscal Year 2009-10 Budget Ordinance Attachment B - Revenues FY 2009-10 Revised 555 Storm Water Capital Projects Fund Transfers from Other Funds 10,802,279 Fund 555 Revenue Totals 10,802,279 908 City Beautification Fund Revenue from Local Sources Miscellaneous Revenue 909 Library Gift Fund Revenue from Local Sources Miscellaneous Revenue 911 Parks and Recreation Gift Fund Revenue from Local Sources Miscellaneous Revenue Revenue Sources Totals Less Interfund Transfers Net Revenue Totals 20,400 Fund 908 Revenue Totals 20,400 5,712 Fund 909 Revenue Totals 5,712 91,800 Fund 911 Revenue Totals 91,800 2,380,627,037 617,334,358 1,763,292,679 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 AN ORDINANCE ESTABLISHING THE TAX LEVY ON REAL ESTATE FOR FISCAL YEAR 2010 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: Sec. 1. Amount of Levy on Real Estate. There shall be levied and collected for fiscal year 2010 taxes for general purposes on all real estate, including all separate classifications of real estate set forth in the Code of Virginia, not exempt from taxation and not otherwise provided for in this ordinance, at the rate of eighty-nine cents ($0.89) on each one hundred dollars ($100) of assessed valuation thereof. The real property tax rate that has been prescribed in this section shall be applied on the basis of one hundred percentum of the fair market value of such real property, except for public service real property, which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. Sec. 2. Amount of Levy on "Certified Pollution Control Equipment and Facilities" Classified as Real Estate, "Certified Storm Water Management Developments and Property," "Certified Solar Energy Recycling Equipment, Facilities or Devices" Classified as Real Estate, and "Environmental Restoration Sites," Real Estate Improved by Erosion Controls, and Certain Wetlands and Riparian Buffers. In accordance with Sections 58.1-3660 (A), 58.1-3660.1, 58.1-3661, 58.1-3664, 58.1-3665 and 58.1-3666 of the Code of Virginia, there shall be levied and collected for general purposes for fiscal year 2010, taxes on all real estate (a) certified by the Commonwealth of Virginia as "Certified Pollution Control Equipment and Facilities," (b) certified by the Department of Environmental Quality as "Certified Storm Water Management Developments and Property," (c) certified as provided by Code of Virginia Section 58.1-3661 as "Certified Solar Energy Equipment, Facilities or Devices," or "Certified Recycling Equipment, Facilities or Devices," (d) defined by Code of Virginia Section 58.1-3664 as an "Environmental Restoration Site," (e) improved to control erosion as defined by Code of Virginia § 58.1-3665, or (f) qualifying as wetlands and riparian buffers as described by Code of Virginia § 58.1-3666, not exempt from taxation, at a rate of eighty-nine cents ($0.89) on each one hundred dollars of assessed valuation thereof. The real property tax rates imposed in this section shall be applied on the basis of one hundred percentum of fair market value of such real property except for public service property, which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. Sec. 3. Amount of Levy on Real Estate Within the Sandbridge Special Service District. There shall be levied and collected for fiscal year 2010, taxes for the special purpose of providing beach and shoreline restoration and management at Sandbridge on all real estate within the Sandbridge Special Service District, not exempt from taxation, at the rate of six cents ($0.06) on each one hundred dollars ($100) of assessed value thereof. This real estate tax rate shall be in addition to the real estate tax rate set forth in Section 1 of this ordinance. The real estate tax rate imposed herein shall be applied on the basis of one hundred percentum of the fair market value of such real property except for public service real property, which shall be on the basis as -provided in Section 58.1-2604 of the Code of Virginia. Sec. 4. Amount of Levy on Real Estate Within the Town Center Special Service District. For the special purpose of operating and maintaining the parking garage and providing enhanced services for the plaza and public spaces within the boundaries of the service district at the Town Center, as well as other additional services authorized by Virginia Code § 15.2-2403, there shall be levied and collected for fiscal year 2009, taxes on all real estate within the Town Center Special Service District, not exempt from taxation, at the rate of forty-five cents ($0.45) on each one hundred dollars ($100) of assessed value thereof. This real estate tax rate shall be in addition to the real estate tax set forth in Section 1 of this ordinance. The real estate tax rate imposed herein shall be applied on the basis of one hundred percentum of the fair market value of such real property, except for public service real property, which shall be on the basis as provided in Section 58.1-2604 of the Code of Virginia. Sec. 5. Severability. If any portion of this ordinance is for any reason declared to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Sec. 6. Effective Date. 56 57 58 59 60 The effective date of this ordinance shall be July 1, 2009. Adopted by the City Council of the City of Virginia Beach, Virginia on this 12th day of May, 2009. Requires an affirmative vote by a majority of all the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Did Management Services City Attor ey ice 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 AN ORDINANCE ESTABLISHING THE TAX LEVY ON PERSONAL PROPERTY AND MACHINERY AND TOOLS FOR THE CALENDAR YEAR 2010 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: Sec. 1. Amount of Levy on Tangible Personal Property. In accordance with Chapter 35 of Title 58.1 of the Code of Virginia, taxes shall be levied and collected for general purposes for the calendar year 2010 on all tangible personal property, including all separate classifications of personal property set forth in the Code of Virginia, not exempt from taxation and not otherwise provided for in this ordinance, at the rate of three dollars and seventy cents ($3.70) on each one hundred dollars ($100) assessed valuation thereof. Specific categories of personal property taxed at this rate include, but are not limited to, the following: a. aircraft and flight simulators as described in Code of Virginia § 58.1-3506 (A) (2), and (3)--, , (4) and (5) ; b. antique motor vehicles as described in Code of Virginia § 58.1-3506 (A) (4) &� ; c. heavy construction equipment as described in Code of Virginia § 58.1-3506 (A) (&) M; d. computer equipment as described in Code of Virginia § 58.1-3506 (A) (4) 01 ; e. tangible personal property as described in (a) Code of Virginia § 58.1-3660 as "certified pollution control equipment and facilities" or (b) Code of Virginia § 58.1-3661 as "certified solar equipment, facilities or devices and certified recycling equipment, facilities or devices"; and f. personal vehicles as described in § 58.1-35243 of the Code of Virginia (such statute referring to personal vehicles as "qualified vehicles"). Taxes shall be levied and collected for general purposes for the calendar year 2010 on the assessed value of all personal vehicles not otherwise exempted from taxation in this ordinance, subject to the following: 1. Any personal vehicle with a total assessed value of $1,000 or less will be levied no tax. 2. Any personal vehicle with an assessed value of between $1,001 and $20,000 will be levied 42.5% 30% of the computed tax based on the total assessed value of the vehicle. Reimbursement is expected from the state under the Personal Property Tax Relief Act equal to the remaining 57.5% 70% of the computed tax on the first $20,000 of assessed value. 3. Any personal vehicle with an assessed value of over $20,000 will be levied 42.59% 30% of the computed tax based on the first $20,000 of assessed value and 100% of the computed tax based on the assessed value in excess of $20,000. Reimbursement is expected from the state under the Personal Property Tax Relief Act equal to the remaining 57.6,04 70% of the computed tax on the first $20,000 of assessed value. 4. Pursuant to authority conferred in Item 503.1) of the 2005 Virginia Appropriations Act, the City Treasurer is authorized to issue a supplemental personal property tax bill, in the amount of 100% of the tax due without regard to any former entitlement to state relief, plus applicable penalties and interest, to any taxpayer whose taxes with respect to a qualifying vehicle for tax year 2005 or any prior tax year remain unpaid on September 1, 2006, or such earlier date as reimbursement with respect to such bill is no longer available from the Commonwealth, whichever earlier occurs. Penalties and interest with respect to bills issued pursuant to this section shall be computed on the entire amount of tax owed. Interest shall be computed from the original due date of the tax. Sec. 2. Amount of Levy on Manufactured Homes. IR aGGGFdaRGe with SOGtiOR 58.1 3506 (A) (8) of the Gode of ViFginia There shall be levied and collected for general purposes for the calendar year 2010 taxes on all vehicles without motive power, used or designated to be used as manufactured homes, as defined by Section 36-85.3 of the,Code of Virginia, at the rate of eighty-nine cents ($0.89) on each one hundred dollars ($100) of assessed valuation thereof. Such property declared a separate class of tangible personal property in Section 58.1-3506 (A) (10). Sec. 3. Amount of Levy on All Boats or Watercraft Weighing Five Tons or More Used for Business Purposes Only. in aGGGFdaRGe with S9Gti0R 68.1 35065 (A) (1) of the GO& Of VIFOiAla t There shall be levied and collected for general purposes for the calendar year 2010 taxes on all boats or watercraft used for business purposes only weighing less than five (5) and weighing five (5) tons or more, except as provided for in Section a 6 of this ordinance, at the rate of one dollar and fifty cents ($1.50) on each one hundred dollars ($100) of assessed 56 valuation thereof. Such property declared a separate class of tangible personal property in Sections 58.1-3506 57 .(A) (35) and (A) (36). 58 59 Sec. 4. Amount of Levy on All Boats or Watercraft Not Used Solely for Business Purposes. 60 There shall be levied and collected for general purposes for the calendar year 2010 taxes on all 61 boats or watercraft not used solely for business purposes weighing less than five 5 tons and weighing five 5 62 tons or more, except as provided for in Section 6 of this ordinance at the rate of one dollar and fifty cents ($1.50) 63 on each one hundred dollars ($100) of assessed valuation thereof. Such property declared a separate class of 64 tangible personal property in Sections 58.1-3506 (A) (1) (a) and (A) (1) (b)-- 65 66 Sec. 4 5. Amount of Levy on Machinery and Tools. 67 In accordance with Section 58.1-3507 of the Code of Virginia, there shall be levied and collected 68 for general purposes for the calendar year 2010 taxes on machinery and tools, including machinery and tools 69 used directly in the harvesting of forest products or semiconductor manufacturing, not exempt from taxation, at 70 the rate of one dollar;3Rd 1.00 on each one hundred dollars ($100) of assessed valuation 71 thereof. As provided by Code of Virginia § 58.1-3506 (B) , the following personal property shall also be taxed at 72 the rate of machinery and tools: 73 a. all tangible personal property used in research and development businesses, as described in Code of 74 Virginia § 58.1-3506 (A) (a) (7); 75 b. generating or cogenerating equipment, as described in Code of Virginia § 58.1-3506 (A) (-) 76 (9); and 77 c. all motor vehicles, trailers and semitrailers with a gross vehicle weight of 10,000 pounds or more used 78 to transport property for hire by a motor carrier engaged in interstate commerce, as described in 79 Code of Virginia § 58.1-3506 (A) (2-3) (25). 80 81 Sec. 5 6. Amount of Levy on Privately Owned Pleasure Boats and Watercraft Used for Recreational 82 Purposes Only. 83 lR ass There shall 84 be levied and collected for general purposes for the calendar year 2010 taxes on all privately owned pleasure 85 boats and watercraft used for recreational purposes only, at the rate of one millionth of one cent ($.000001) on 86 each one hundred dollars ($100) of assessed valuation thereof. Such property declared a separate class of 87 tangible personal property in Sections 58.1-3506 (A) (12), (A) (28), and (A) (29). 88 89 Sec. 5 7. Amount of Levy on Privately Owned Camping Trailers, Privately Owned Travel Trailers, 90 and Motor Homes Used for Recreational Purposes Only, and Privately Owned Horse Trailers. 91 There shall be levied 92 and collected for general purposes for the calendar year 2010 taxes at the rate of one dollar and fifty cents 93 ($1.50) on each one hundred dollars ($100) of assessed valuation thereof on the following property: (a) all 94 privately owned camping trailers and motor homes as defined in Section 46.2-100 of the Code of Virginia and 95 privately owned travel trailers as defined in Code of Virginia § 46.2-1900, that are used for recreational purposes 96 only; and (b) privately owned trailers as defined in § 46.2-100 of the Code of Virginia that are designed and used 97 for the transportation of horses, except those trailers described in subdivision (A) (11) of § 58.1-3505 of the Code 98 of Virginia. Such proK)erty declared a separate class of tangible personal property in Sections 58.1-3506 (A) (18) 99 and (A) (30). 100 101 Sec. 7- 8. Amount of Levy on One Motor Vehicle Owned and Regularly Used by a Disabled Veteran. 102 to-ascE There shall be a reduced 103 tax, levied and collected for general purposes for the calendar year 2010 at the rate of one dollar and fifty cents 104 ($1.50) on each one hundred dollars ($100) of assessed valuation, on one (1) motor vehicle owned and regularly 105 used by a veteran who has either lost, or lost the use of, one or both legs, or an arm or a hand, or who is blind, or 106 who is permanently and totally disabled as certified by the Department of Veterans' Affairs. Any motor vehicles in 107 addition to the one (1) so taxed shall not qualify for the taxation at the rate established herein, and shall be taxed 108 at the rate or rates applicable to that class of property. To qualify, the veteran shall provide a written statement to 109 the Commissioner of the Revenue from the Department of Veterans' Affairs that the veteran has been so 110 designated or classified by the Department of Veterans' Affairs as to meet the requirements of Section 58.1-3506 111 (A) (47) (19), and that his or her disability is service connected. Such property declared a separate class of 112 tangible personal property in Section 58.1-3506 (A) (19). 113 114 Sec. 9 9. Amount of Levy on a Motor Vehicle Owned and Used Primarily by or for Someone at 115 Least Sixty -Five Years of Age or Anyone Found to be Permanently and Totally Disabled. 116 a. In accordance with Sections 58.1-3506.1 et seq. of the Code of Virginia, there shall be a reduced tax, 117 levied and collected for general purposes for calendar year 2010, at the rate of three dollars ($3.00) on each one 118 hundred dollars ($100.00) of assessed valuation, on one (1) automobile or pickup truck owned and used primarily 119 by or for anyone at least sixty-five years of age or anyone found to be permanently and totally disabled, as 120 defined in Section 58.1-3506.3 of the Code of Virginia, subject to the following conditions: 121 1. The total combined income received, excluding the first $7,500 of inconw, from all sources 122 during calendar year 2009 by the owner of the motor vehicle shall not exceed twenty-two thousand dollars 123 ($22,000). 124 2. The owner's net financial worth, including the present value of all equitable interests, as of 125 December 31 of calendar year 2009, excluding the value of the principal residence and the land, not exceeding 126 one (1) acre, upon which it is situated, shall not exceed seventy thousand dollars ($70,000). 127 3. All income and net worth limitations shall be computed by aggregating the income and assets, 128 as the case may be, of a husband and wife who reside in the same dwelling and shall be applied to any owner of 129 the motor vehicle who seeks the benefit of the preferential tax rate permitted under this ordinance, irrespective of 130 how such motor vehicle may be titled. 131 b. Any such motor vehicle owned by a husband and wife may qualify if either spouse is sixty-five or over 132 or if either spouse is permanently and totally disabled, and the conditions set forth in subsection (a) have been 133 satisfied. 134 135 Sec. 910. Assessed Value Determination. 136 In accordance with Section 58.1-3103 of the Code of Virginia, personal property mentioned in the 137 above sections shall be assessed at actual fair market value, to be determined by the Commissioner of the 138 Revenue for the City of Virginia Beach. 139 140 Sec. 4011. Severability. 141 If any portion of this ordinance is for any reason declared to be unconstitutional or invalid, such 142 decision shall not affect the validity of the remaining portions of this ordinance. 143 144 Sec. 4412. Effective Date. 145 This ordinance shall be effective January 1, 2010. 146 147 Adopted by the Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. 148 149 Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: t Management Services City Attorneys Office 1 AN ORDINANCE TO AUTHORIZE THE CITY MANAGER TO 2 SUBMIT AN ANNUAL FUNDING PLAN TO THE U.S. 3 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the United States Congress has established legislation designated as the Housing and Community Development Act of 1974 that sets forth the development of viable urban communities as a national goal; WHEREAS, there is federal assistance available for the support of Community Development and Housing activities directed toward specific objectives, such as eliminating deteriorated conditions in low and moderate income neighborhoods that are detrimental to the public health, safety, and welfare, as well as improving the City's housing stock and community services, along with other related activities; and WHEREAS, as a prerequisite to receiving the above -referenced federal assistance, the City of Virginia Beach has developed an Annual Funding Plan for submission to the Department of Housing and Urban Development and has created the necessary mechanisms for its implementation in compliance with federal and local directives; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City Manager is hereby authorized and directed, as the executive and administrative head of the City, to submit the City's FY 2010 Annual Funding Plan (the "Plan") and amendments thereto, along with understandings and assurances contained therein and such additional information as may be required, to the Department of Housing and Urban Development to permit the review, approval, and funding of the Plan. Adopted by the Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services City Attorney's Office 1 2 3 AN ORDINANCE TO TRANSFER $8,800,000 FROM THE SCHOOL RESERVE SPECIAL REVENUE FUND TO THE CITY'S FY 2008-09 GENERAL FUND OPERATING BUDGET WHEREAS, on May 6, 2003, the City Council established the Special Revenue Fund — School Reserve; WHEREAS, due to unprecedented poor economic conditions, various sources of fund balance are available for short-term use to mitigate structural budget changes until economic conditions return to normalcy; and WHEREAS, the School Reserve Special Revenue Fund has sufficient funds and $8,800,000 is available to address community needs. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $ 8,800,000 from the School Reserve Special Revenue Fund is hereby transferred to the City's FY 2008-09 General Fund Operating Budget. BE IT FURTHER ORDAINED: That this ordinance shall be effective on June 30, 2009. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: Management Services APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office 1 AN ORDINANCE TO DECLARE $ 9,000,000 OF FUNDING 2 WITHIN THE SANDBRIDGE TAX INCREMENT FINANCING 3 DISTRICT AS SURPLUS FUNDS IN THE FY 2008-09 4 OPERATING BUDGET WHEREAS, the Sandbridge Tax Increment Financing District (Sandbridge TIF) and the Sandbridge Special Service District (Sandbridge SSD), were established to provide a funding source for beach and shoreline restoration and management at Sandbridge; WHEREAS, an analysis of the Sandbridge TIF and the Sandbridge SSD occurs annually to ensure that funding is adequate for long-term beach and shoreline restoration and management along Sandbridge; WHEREAS, current projections indicate that the Sandbridge TIF and Sandbridge SSD have sufficient funding to meet long-term obligations for beach and shoreline restoration and management; WHEREAS, projections also indicate that the funding available exceeds the long-term obligations of the project; and WHEREAS, $ 9,000,000 is available as an unencumbered appropriation in the FY 2008-09 Sandbridge TIF Reserve for Future Commitments. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: (1) That $ 9,000,000 of funding within the Sandbridge TIF is hereby declared to be in excess of the long-term obligations for beach and shoreline restoration and management and is hereby declared surplus. (2) That $ 9,000,000 is hereby transferred within the FY 2008-09 Operating Budget from the Sandbridge TIF to the General Fund — Unappropriated Real Estate Tax Revenues, BE IT FURTHER ORDAINED: That this ordinance shall be effective on June 30, 2009. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services City Attorney's O ice 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AN ORDINANCE TO SUSPEND THE TRANSITION AREA SPECIAL REVENUE FUND WHEREAS, as a result of City Council accepting and approving the report of the Virginia Beach Transition Area Technical Advisory Committee, staff subsequently established a Transition Area Special Revenue Fund to earmark revenues generated within the Transition Area for future roadway projects; WHEREAS, due to the lack of construction activity in the transition area, a minimal amount of revenue has been generated; WHEREAS, due to poor economic conditions the State has significantly reduced Virginia Department of Transportation funding to our City; and WHEREAS, the Capital Budget for FY 2009-10 appropriates $296,121 of the FY 2007-08 Fund Balance of the Transition Area Special Revenue Fund to Capital Project #2-021 Rural Road Improvements; and WHEREAS, staff recommends prioritizing and funding roadway needs overall rather than separately within the Transition Area. NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA THAT: (1) The Transition Area Special Revenue Fund is suspended; and (2) Staff will provide City Council with alternatives to address infrastructure needs associated with further development in the Transition Area. BE IT FURTHER ORDAINED: That the effective date of this ordinance shall be May 12, 2009. Adopted by the Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: .1112 ZI - Management Services City Attorney's ce 1 2 3 4 5 6 7 8 9 10 11 12 13 A RESOLUTION TO ADOPT THE BUDGET THROUGH AN ANNUAL RATHER THAN BIENNIAL PROCESS WHEREAS, given the uncertainty of forecasting revenues, both state and local, in difficult economic times, an annual budget process may better serve City Council. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City of Virginia Beach will prepare a budget on an annual rather than biennial process. BE IT FURTHER RESOLVED: That the effective date of this resolution shall be July 1, 2009. Adopted by the Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: &CLA,-'!) n.�- Management Services City Attorn O i 22 23 24 25 26 AN ORDINANCE TO ELIMINATE SECTION 2-186.1 OF THE CITY CODE OF THE CITY OF VIRGINIA BEACH, VIRGINIA WHEREAS, current declining real estate assessments and long-term projections of very modest growth in real estate assessments mitigate the need of Section 2-186.1 Preparation of the Budget in which the budget details the use of incremental real estate tax revenue, above the base level from the previous year. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. That section 2-186.1 of the City Code is hereby eliminated. Sec. 2-186.1. Preparation of Budget. BE IT FURTHER RESOLVED: That the effective date of this resolution shall be July 1, 2009. Adopted by the Council of the City of Virginia Beach, Virginia, on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: 0_,i �2 _ Management Services City Attorneys Office IA- OUR A- WILLIAM D. SESSOMS, JR. Mayor May 4, 2009 James K. Spore City Manager City of V�r� n' -a. Beach Subject: FY 2010 Budget and CIP Reconciliation Dear Mr. Spore: MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 235468000 (757)385.4581 FAX(757)385-5699 MOBERND019VBGOV.COM As you are aware, the City Council has held two public hearings on the Proposed Operating Budget and Capital Improvement Program (CIP) as well as received input from various community meetings. And in an attempt to focus our reconciliation discussion, we would like to offer the following thoughts and adjustments to the Proposed Budget and CIP. We do so conscious of the struggling economy, with an eye to the future and the need to continue the quality services expected by our citizens. 1) Animal Control Shelter — Several speakers addressed the need for improvements in the City's animal control operations especially a new shelter, and we concur. The City Council has with this budget enhanced the vaccination services offered to animals at the shelter and have added a new position of Animal Shelter Manager. We feel these are good first steps. The City Council also has allocated funding in FY 2010 to design a new, state of the art shelter building to be located on City owned property. Funding is included in the FY 2010 Capital Improvement Program to do all the design work necessary to move this project to construction in FY 2011. 2) Union Kernpsville Museum and Historic Homes — The Department of Museums is committed to operating the Union Kempsville Museum and plans to use a "Scholar in Residence" to provide special events and unique programming at this new facility. Funding is available with the Department's FY 2010 Budget to accomplish this program. In addition, while the Historic Homes are losing a position with the Budget, the Department is working through a strategy of focusing the hours of operation at the various houses on days when visitation is high and to increase the use of volunteers to support existing staff. We do not recommend any adjustment to the Budget at this time, but request a status briefing before next year's Budget. James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 2 3) Burton Station Water and Sewer Initiative — We would like to suggest that the City Council direct staff to extend water and sewer into the Burton Station Neighborhood with funding for design being provided in FY 2010 and construction funding included in the FY 2011 Capital Improvement Program. This is an exciting start to the work needed in this Strategic Growth Area and will be done in conjunction with the redevelopment of Burton Station Road and Wesleyan Drive. Funding for the design is available in the Strategic Growth Area Project. 4) Consumer Affairs — Mr. Bryant sent a letter to us advocating the restoration of at least 3 of the 4 positions in this program. We would recommend to City Council that we restore sufficient funding in FY 2010 to accomplish this request. Cost = $235,810 5) Non -Resident Library Fee — Both of us feel that access to the Virginia Beach Library system is critical, especially in this trying economic time, so we would suggest the elimination of the proposed $40 non-resident fee, but we do recommend that we keep the increased funding for books and materials that the fee was to fund. Cost = $75,000 6) Sheriffs Operating Budget — Sheriff Lanteigne has requested restoration of the City's reduction in funding to his Budget as well as funding to cover lost State per diem funding to his department. There is $652,703 available to partially cover this request, but he requests $231,250 in additional City funding. Cost = $888,953 7) Norfolk and Southern Right of Way Acquisition — Based on City Council direction, staff set aside the $10 million required for the City's portion of the right-of-way purchase within the General Fund Balance. These funds now need to be appropriated to the Capital Improvement Program to allow the actual purchase. To accomplish this we suggest establishing a new capital program (program sheet attached) and appropriate the required funding. Cost = $10,000,000 8) Wireless Internet Service for Public Safety Vehicles — An opportunity to greatly enhance technology in the Police, Fire, and EMS vehicles has become available at a minimal cost and staff is recommending support. The new MDT terminals in every police vehicle, fire truck, and ambulance can receive and transmit data via cell phone wireless air cards. Use of this technology will allow criminal data to be sent directly to the police car or have the ambulances be able to transmit medical data to the hospitals. Cost = $250,000 James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 3 9) Other Constitutional Offices — The Treasurer, the Commissioner of the Revenue, and the Clerk of the Court have contacted us to request some relief from proposed reductions to their FY 2010 Operating Budgets. We would recommend restoration of half of the proposed reduction in each office. This would mean that the Treasurer would receive $21,000; the Commissioner $18,500; and the Clerk of the Court $33,000. Cost = $72,500 10) Sister Cities — We are recommending the restoration of funding for this program which has opened cultural and economic doorways through its contact with the cities of Moss, Norway; Miyazaki, Japan; and North Down, Ireland. Cost = $13,260 of -7711 , .- After working with staff, we would offer the following for consideration to offset these additions to the Proposed FY 2010 Budget and Capital Improvement Program: 1) Reduce the Salary/Managed Attrition Program Reserve by $100,000. Staff feels that the remaining funding ($400,000) will be sufficient for the transition of employees whose position has been eliminated as well as to cover small salary adjustments that may occur throughout the fiscal year due to promotions, over -hires, restructuring, etc. 2) Savings of $97,333 from HRT due to their receipt of Federal Stimulus funding that allowed them to reduce the subsidy required from each locality. 3) Reduce funding for electrical costs by $685,487 within Public Works. This is possible due to the reduction in- Dominion Power rates to municipalities. 4) Appropriate $652,703 in funding from the Sheriff Department Special Revenue Fund — Fund Balance per the Sheriffs Letter of April 21, 2009. 5) Appropriate $10 million in funding from the General Fund - Fund Balance to the Capital Improvement Program for the Norfolk and Southern Right -of -Way. We offer these suggestions as a way to begin our discussions and with the understanding that it does not meet all expectations, but given the economy and our limited resources, we feel that it does significantly address them. We also want to once again thank the Virginia Beach School Board for their assistance in this difficult economic time and we support the Board's request to provide "lump sum" funding in FY 2010. The School Board will be adopting a resolution to allocate their Federal Stimulus funding this evening and staff will try to reflect this action in our ordinances for May 12"'. James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 4 The changes outlined above will increase the FY 2009-10 Operating Budget by $652,703 (the rest being transferred within the Budget) keeping it $33 million less than the current year's Operating Budget. The Capital Improvement Program for FY 2009-10 will increase by $10 million to $226,129,109 due to the need to appropriate funding for Norfolk and Southern. We look forward to discussing these items with you on Tuesday. Sincerely, William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Wyor City of Virginia Beach, Virginia Draft Project Project # and Title: 2-173 Norfolk Southern Right -of -Way Acquisition Responsible De t.: Undefined Business Area : Undefined Total Total Budget Unappropriated Subsequent Years Future Programmed Appropriations Year 1 Year 2Year 3 Year 4 Year 5 Year 6 Programming Costs To Date FY 2008-09 FY 2009-10 FY 2010-11 1 FY 2011-12 FY 2012.13 FY 2013-14 Requirement 10,000,000 0 0 10,oO0,0001 01 0 0 01 0 Description and Scope This project provides for the City's portion of funding for the acquisition of the Norfolk Southern right-of-way by the City. It is anticipated that the remaining funding will be provided by the State ($20 million) and HRT ($5 million). The existing right-of-way corridor is variable in width from 66 feet to 90 feet and extends a total distance of approximately 11 miles. Purpose and Need This project preserves the Norfolk Southern right-of-way as a future alternative transportation corridor. History and Current 15tatus This project first appeared in the FY 2010-11 CIP. Operatina Budsletary Impact Basis for Estimate FY 2008-09 FY 2009.10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 0 0 0 0 0 0 Schedule of Activities Activity From - To Amount Site Acquisition 07/09-06/10 10,000,000 Total Budgetary Cost Estimate 10,000,000 Total Non -Programmed Costs 0 Total Project Costs 10,000,000 NORFOLK 6 S(MHERN' R10AT Of. WAY - Means of Financing Fundinci Source Amount �•. - Fund Balance - General Fund FY 2009 10,000,000 Total Programmed Financing 10,000,000 Future Funding Requirements 0 Fiscal Year 2008-09 1 -1 Roadways VIRGINIA BEACH CITY PUBLIC SCHOOLS A H E A D O F T H E C U R V E BUDGET RESOLUTION - FY2009/10 WHEREAS, the mission of the Virginia Beach City Public Schools (VBCPS), in partnership with the entire community, is to empower every student to become a life-long learner who is a responsible, productive and engaged citizen SCHOOL BOARD within the global community; and Daniel D. Edwards WHEREAS, the School Board of the City of Virginia Beach has adopted a comprehensive strategic plan and school Chairman District 1- Centerville improvement priorities to guide budgetary decisions; and 1513 Beachview Drive VA Beach, VA 23464 WHEREAS, the School Board has studied the recommended FY2009/10 Amended Operating Budget in view of 495-3551 (h) • 717-0259 (c) state and federal requirements, additional demands for space and operations, the strategic plan, priorities, Rita Sweet Bellitto expectations, competitive compensation for employees and the best educational interests of its students; and Vice Chairman At -Large WHEREAS, the budgetary impact relating to actions by the Virginia General Assembly is known at this time and the P.D. Box School Board has adjusted the budget accordingly; and A 23456 VA Beach,, VA 416.0960 (c) WHEREAS, the budgetary impact of the Federal Stimulus funds are known at this time and a total of $22,122,238 will William J. "Bill" Brunke, IV be appropriated by the Virginia Department of Education to VBCPS and these funds will be used in the following District 7 — Princess Anne 4099 Foxwood Drive, Suite 201 manner: $13,936,308 to replace the PAYGO CIP plus an additional $2,000,000 to the CIP; $3,932,314 to replace Virginia Beach, VA 23462 several line items of expenditures that were cut from the Operating Budget; $1,628,626 to be used to support the new 222-0134 (w) • 286-2772 (c) Strategic Plan, and $624,990 for Technology and, of the total Stimulus funds, $6,185,930 is to be included in the Todd C. Davidson Lump Sum Appropriation; and At -Large 2424 Savannah Trail WHEREAS, restrictions, maintenance of efforts requirements, non -supplant restrictions, and the flexibility of these VA Beach, VA 23456 427-3330 (w) • 285-9409 (c) funds are yet to be determined; and Emma L. "Em" Davis WHEREAS, the total funds available for FY 2009/10 from the City of Virginia Beach to the School Board of the City of en Districts - etwoo Dr ti25 Michaelwood Drive Virginia Beach under the Revenue Sharing Policy is $379,391,780; and 9� � 9 Y VA Beach, VA 23452 340.8911 (h) WHEREAS, the debt service payment is estimated to be $44,183,674, leaving a balance of $335,208,106 to allocate between the Operating Budget and the Capital Improvement Program. Patricia G. Edmonson District 6 - Beach 576 N. Birdneck Rd., 0190 Now, therefore, be it Virginia Beach, VA 23451 718-8463 (c) RESOLVED: That the $335,208,106 be allocated as follows: $335,208,106 to the Operating Budget, and $0 to the Dan R. Lowe Capital Improvement Program (CIP); and be it District Bayside P balance 9 FURTHER RESOLVED: That bf budget line items reduced to hel balthe budget shortfall and a a number og ems we 417 Red Coat Road 4617 VA Beach, VA 23455 number of these are considered one-time kinds of expenditures and that $5,200,000 be allocated from the Special 490-3681(h) School Reserve Fund held by the City for one-time expenditures for the following: Capital Improvement Program Brent N. Mckenzie (CIP) - $4,400,000, School Equipment Allocation - $500,000, Summer Capital Projects - $300,000; and be it District 3 . Rose Hall Brookwood Place FURTHER RESOLVED: That the City of Virginia Beach has also transferred $4,617,000 from the Sandbridge TIF to VA Beach, VA 23453 VA B 816.2736 (c) the Schools PAYGO; and be it Patrick S. Salyer FURTHER RESOLVED: That the School Board of the City of Virginia Beach requests a Lump Sum Appropriation of At -L1741 a 1741 Seaton Drive $695,112,265 for FY2009/10 from the Cit Council of Virginia Beach for the School Board FY 2009/10 Amended Y g VA Beach, VA 23464 Operating Budget; and be it 620-2141(c) FURTHER RESOLVED: That the School Board of the City of Virginia Beach requests an appropriation of Sandra Smith -Jones District 2—Kempsville $156,126,411 for special grants revenue funds comprised of Federal Grants in the amount of $69,765,663, State 705 Rock Creek Court Grants in the amount of $17,018,564, and other special revenue funds in the amount of $69,342,184 for the 2009/10 VA Beach, VA 23462 490-8167 (h) fiscal year and that the total of these funds be included in the Lump Sum Appropriation; and be it Carolyn D. Weems FURTHER RESOLVED: That a copy of this resolution be spread across the official minutes of this Board and the 14 Large 1420 Claudia Drive Clerk of the Board is directed to deliver a co of this resolution to the Mayor, each member of Cit Council, the Cit PY Y Y Y VA Beach, VA 23455 Manager, and the City Clerk. 464.6674 (h) inia Beach is Adopted by the School BoardUanieltyDofEdoward SUPERINTENDENT ATTEST: s, School Board Chairm n James G. Merrill, Ed.D. 2512 George Mason Drive VA Beach, VA 23456 263-1007 ,r7 Dianne P. Alexander, Clerk of the Board School Administration Building • 2512 George Mason Drive • P.O. Box 6038 • Virginia Beach, VA 23456-0038 h CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: The FY 2009-10 Capital Improvement Program and Related Ordinances MEETING DATE: May 12, 2009 ■ Background: On March 24, 2009, the City of Virginia Beach FY 2009-10 Proposed Biennial Resource Management Plan with Second Year Changes, which includes the Operating Budget and Capital Improvement Program, was presented to City Council. City Council workshops were held on April 7tH, 14 , 21St 28tH and May 5tH to provide information to the City Council. On April 16th and 28th public hearings were held to provide the public the opportunity to comment on the proposed Resource Management Plan. ■ Considerations: The proposed ordinances were updated to reflect City Council's direction at the May 5, 2009 Reconciliation Workshop. Attached is a letter, dated May 4tH, signed by Mayor William D. Sessoms, Jr. and Vice Mayor Louis R. Jones, outlining the FY 2010 Operating Budget and Capital Improvement Program recommendations. Also attached is a Capital Improvement Program Resolution from the School Board which adds $10,300,000 to the Capital Improvement Program for the Kellam High School Replacement project. The following ordinances are provided for the Council's consideration and approval to implement the FY 2009-10 Capital Improvement Program. Unless otherwise noted, approval requires an affirmative vote by a majority of the members of City Council. 1. An Ordinance to Revise the FY 2010/FY 2014 Capital Improvement Program and to Appropriate $236,429,109 for the FY 2010 Capital Budget Subject to Funds Being Provided from Various Sources Set Fourth Herein 2. An Ordinance Authorizing the Issuance of General Obligation Public Improvement Bonds of the City of Virginia Beach, Virginia, in the Maximum Amount of $62,900,000 for Various Public Facilities and General Improvements 3. An Ordinance Authorizing the Issuance of Water and Sewer System Revenue Bonds of the City of Virginia Beach, Virginia, in the Maximum Amount of $17,000,000 ■ Public Information: Two Public Hearings have been held concerning the Capital Improvement Program. Information on these ordinances will be disseminated to the public through the normal Council agenda process involving the advertisement of the City Council agenda, pursuant to local and State code requirements. ■ Alternatives: No alternatives are available to implement the FY 2009-10 Capital Improvement Program. ■ Recommendations: It is recommended that the attached ordinances implementing the FY 2009 -10 Capital Improvement Program be approved. ■ Attachments: FY 2009-10 Capital Improvement Program ordinances. Letter Dated May 4t' from Mayor and Vice Mayor VB School Board CIP Resolution Recommended Action: Approval of Ordinances Submitting Department/Agency: Department of Management Services City Managed r 1 AN ORDINANCE TO REVISE THE FY 2010/FY 2014 CAPITAL 2 IMPROVEMENT PROGRAM AND TO APPROPRIATE 3 $236,429,109 FOR THE FY 2010 CAPITAL BUDGET SUBJECT 4 TO FUNDS BEING PROVIDED FROM VARIOUS SOURCES 5 SET FORTH HEREIN 6 WHEREAS, the City Manager, on March 24, 2009, presented to City Council the Capital Improvement 7 Program for fiscal years 2010 through 2014; 8 9 WHEREAS, City Council held public hearings on the program to provide for public comment; WHEREAS, based on public comment, City Council has determined the need for certain projects in the Capital Improvement Program; and WHEREAS, it is necessary to appropriate funds for both existing projects and projects beginning in the 2010 fiscal year, as set forth in said Capital Improvement Program. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: Section 1. That the Capital Improvement Program, as modified, for the construction of, or addition to, capital facilities identified for fiscal years 2010 through 2014 is hereby adopted, and the projects listed therein are hereby approved as capital projects. Section 2. That the projects shall be financed from funds to be appropriated periodically by City Council, and until funds are so provided, the projects are for planning purposes only and may be deleted, altered, or rescheduled in any manner at any time by City Council. Section 3. That funds in the amounts aggregating $236,429,109 for capital projects in the Capital Budget for the 2010 fiscal year, as set forth in said Capital Improvement Program, are hereby appropriated, by project and subject to the conditions set forth herein. The amount of funding for individual projects is set forth in "Attachment A — Capital Budget Appropriations," a copy of which is attached hereto. Section 4. That in accordance with Section 2-196 of the City Code, financing sources in support of the Capital Budget for the 2010 fiscal year as set forth in said Capital Improvement Program are attached to this ordinance as "Attachment B — Financing Sources." Section 5. That capital project funds appropriated in prior fiscal years are to be adjusted in accordance with said Capital Improvement Program and reallocated as identified in "Attachment C — Transfers," a copy of which is attached hereto. Section 6. That additional appropriations, the addition of capital projects, and changes in project scope shall not be initiated except with the consent and approval of the City Council first being obtained, and an appropriation for a project in the Capital Improvement Program shall continue in force until the purpose for which it was made has been accomplished or abandoned. Section 7. That all contracts awarded for approved and appropriated capital projects, exclusive of school projects, must be certified as to the availability of funds by the Director of Finance prior to the initiation of work on the contract. Section 8. That subject to any applicable restriction of law or of any bonds or bond issue, the City Manager or the Director of Management Services is authorized to approve transfers of appropriations in an amount up to $100,000 between capital projects as may best meet the needs of the City. The City Manager shall make a monthly report to the City Council of all transfers between $25,000 and $100,000. The City Manager or the Director of Management Services is hereby authorized to establish and administer the 55 budgeting of capital projects consistent with best management practices, reporting requirements and the 56 Capital Improvement Program adopted by the City Council. 57 58 Section 9. That to ensure timely completion of water and sewer projects, appropriations for water and 59 sewer companion projects may be transferred between these projects by the City Manager (or designee). 60 "Companion projects" mean water and sewer projects having the same name or project scope and description 61 with the exception of "water" or "sewer' being in the title and/or project scope and description. 62 63 Section 10. That the City Manager or the Director of Management Services is hereby authorized to 64 change, subject to any applicable restriction of law or of any bonds or bond issue, the financing sources for the 65 various capital projects included in this OF previews ordinances to reflect effective utilization of the financing 66 sources and astealc . If the financing sources in support of capital projects 67 decline, the City Manager or the Director of Management Services is authorized to reduce, subject to any 68 applicable restriction of law or of any bonds or bond issue, those appropriations to equal the changed financing 69 source. The City Manager must give prior notice to the City Council of any reductions to total appropriations 70 exceeding $100,000. The notice to City Council shall identify the basis and amount of the appropriation 71 reduction and the capital projects affected. The accounting records of the City will be maintained in a manner 72 where the total of financing sources is equal to the total appropriations for each of the City's capital projects 73 funds. 74 Section 11. That the funding sources and/or appropriations for the following capital improvement 75 projects should be amended. 76 (a That the fs 77 ReplaGemen+ ^ is hereby GhaRqed from GoRtFlbutien fFern the State W fURd balaRGe of the MajOF PFGj8Gts Fund. 78 79 (a) M That the funding source for an appropriation of $700-A99 $204,072.11 to CIP #6-103, "Lake 80 Ridge Interceptor Force Main," is hereby changed from contribution from HRSD to retained earnings of the 81 Water and Sewer Utility Fund. 82 (G) That the fu-di-- --'iFGe feF aR appFopriation of $81,141 to GIR #4 972, "Red Wong Golf Course- 83 84 85 86 (b ) That the appropriation and related funding sources from donations SPSA and State contributions 87 totaling $607.033.14 to CIP # 3-005 "Underground Storage Tanks — Citi', are hereby reduced, and the funding 88 source changed to $7,429.61 in miscellaneous revenue. 89 90 (c) That the funding source for an appropriation of $697,305 to CIP #3-441, "Corrections Center Addition 91 III/Building Maintenance & Landscape Relocation" is hereby changed from State Jail Construction to State 92 Contribution 2004. 93 94 (d) That the alyropriation and related funding sources from State Contributions to 9-010 totaling 95 $503,640.68 to CIP #9-010 "Virginia Marine Science Museum — Phase III (Design) are hereby reduced and 96 changed to $246,359.32 in State Contribution 2004. 97 98 (e) That the funding source for an appropriation of $2,700,000 to CIP #9-704. "Beach Erosion Control 99 and Hurricane Protection is hereby reduced and changed from Federal Contribution to $1,772,287.42 in State 100 Contribution 2004 and $927,712.58 in interest on bank deposits. 101 102 (f) That the funding source for an appropriation of $1.149.295 to CIP #1-234 "Virginia Beach Middle 103 School Replacement." is hereby changed from charter bonds to $1,006,140 Virginia Public School Authority 104 subsidy, and $143,155 premium from sale of bonds and $1,149,295 of charter bonds are added to CIP #2- 105 143. "Laskin Road Gateway-Phase I-A." 106 107 (o) That the appropriation from State Contribution 2008 to CIP #2-048 "Princess Anne Road/Kem sville 108 Road Intersection Improvements" is hereby increased by $380,150. 109 110 (h) That the appropriation from State Contribution 2009 to CIP #2-048 "Princess Anne Road/Kempsville 111 Road Intersection Improvements" is hereby increased by $2,331,557. 112 113 Section 12. That the Capital Improvement Program debt management policies contained and included 114 in the Resource Management Plan document shall be the policy guidelines of the City, and the City Manager 115 shall annually report on the status of those guidelines and the projected impact of the proposed Capital 116 Improvement Program on those guidelines, such information to be included in the Resource Management Plan 117 submittal. The City Manager may propose modifications to those policies and guidelines through the Resource 118 Management Plan. 119 120 Section 13. That subject to the appropriation of sufficient funds within a capital project, the acquisition of 121 real property necessary for the project is authorized by means of voluntary negotiation with willing sellers. 122 123 Section 14. That violation of this ordinance shall result in the City Manager taking disciplinary action 124 against the person or persons responsible for the capital project in which the violation occurred. 125 126 Section 15. That if any portion of this ordinance is for any reason declared to be unconstitutional or 127 invalid, such decision shall not affect the validity of the remaining portions of this ordinance. 128 129 Section 16. That this ordinance shall be in effect from the date of its adoption; however, appropriations 130 for the FY 2010 Capital Budget shall be effective on July 1, 2009. 131 132 Adopted by the City Council of the City of Virginia Beach, Virginia on this 12th day of May, 2009. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services ^City Attorney's Office Attachment A - Capital Budget Appropriations Project Appropriations Number Projects FY 2009-10 Economic Vitality Economic and Tourism Development 9.058 Rudee Inlet Connector Walk $ 260,000 9.060 Oceana & Interfacility Traffic Area Conformity & Acquisition 15,000,000 9.081 Strategic Growth Area Program 3,500,000 9.141 Economic Development Investment Program (On -Going) 2,120,578 Total Economic and Tourism Development Projects $ 20,880,578 Total Economic Vitality Projects $ 20,880,578 Safe Community Buildings 3.054 Animal Control & K-9 Unit Replacements $ 2,616,600 3.133 Fire Training Center Improvements - Phase III 2,428,599 3.365 Fire Facility Rehabilitation and Renewal - Phase II 731,747 3.371 Fire Apparatus - Phase II 1,326,278 Total Building Projects $ 7,103,224 Communications and Information Technolo 3.086 CIT - EMS - Handheld Field Reporting (Partial) $ 450,000 3.094 CIT - Police - Telestaff T&M Module 539,760 3.142 CIT - Communications Infrastructure Replacement - Phase 11 2,716,000 Total Communications and Information Technology Projects $ 3,705,760 Total Safe Community Projects $ 10,808,984 Quality Physical Environment Roadways 2.021 Rural Road Improvements 2.031 Street Reconstruction 2.048 Princess Anne Road/Kempsville Road Intersection Improvement (First Cities) 2.052 Traffic Signal Rehabilitation 2.072 First Colonial Road/Virginia Beach Boulevard Intersection Improvement 2.089 SOutheastern Parkway & Greenbelt (Partial) 2.118 Shore Drive Corridor Improvements - Phase IV 2.129 Pavement: Maintenance Program Phase II 2.143 Laskin Road Gateway - Phase I -A 2.157 Lynnhaven Parkway - Phase IX (VDOT) 2.160 City Wide Street Lighting Improvements - Phase 11 2.173 Norfolk Southern Right -of -Way Acquisition 2.263 Major Bridge Rehabilitation 2.268 Wetlands Mitigation Banking 2.300 Traffic Safety Improvements - Phase III 2.305 Princess Anne Road- Phase IV (VDOT) 2.931 Witchduck Road - Phase I ( First Cities Project) Total Roadways Projects $ 396,121 2,150,000 4,137,708 10.0,000 1,133,000 98,384 1,200,000 10,028,305 8,854,900 3,000,000 60,000 10,000,000 660,000 50,000 1,158,380 11,129,836 12,147,113 $ 66,303,747 Attachment A - Capital Budget Appropriations Project Appropriations Number Projects FY 2009-10 Quality Physical Environment Buildings 3.359 Building Modernizations, Renewals and Replacements (Partial) $ 100,000 3.366 Various Buildings HVAC Rehabilitation and Renewal - Phase II 1,345,334 3.367 Various Buildings Rehabilitation and Renewal - Phase II 3,830,390 3.368 Various Site Acquisitions 2,000,000 Total Buildings Projects $ 7,275,724 Water Utility 5.084 System Expansion Cost Participation Agreements - Phase II $ 50,000 5.086 Comprehensive Water Master Planning - Phase V 200,000 5.167 Water Tank Upgrade Program - Phase III 100,000 5.302 Potable Wells Evaluation Program - Phase II 275,000 5.303 Water Quality Program - Phase III 100,000 5.404 Computerized Mapping & Infrastructure Management - Phase II 50,000 5.405 Customer Information System Version Migration 600,000 5.501 Water Pumping Station and Tank Upgrade Program -Phase 1 203,000 5.602 Princess Anne Road/Kempsville Road Intersection Improvements 740,000 5.708 Resort Area Neighborhood Revitalization 100,000 5.801 Various Water Infrastructure Maintenance Program- Phase II 50,000 5.802 Utility Crossings Condition Assessment 50,000 5.804 Water Line Extension, Replacement and Rehabilitation Program 50,000 5.805 Water System Aging Infrastructure Program - Phase 1 200,000 5.806 Backflow Prevention & Cross -Connection Control Pgm -Phase II 100,000 5.944 Princess Anne Road Water Improvements Phase IV (VDOT) 2,700,000 5.951 Water Tap Installation Program 185,000 5.952 Water Pump Station Flow Monitoring and Data Storage 210,000 5.967 Water Resources Investigation & Planning - Phase 1 100,000 Total Water Utility Projects $ 6,063,000 Sewer Utility 6.019 Resort Area Neighborhood Revitalization $ 800,000 6.031 Sewer Appurtenances Evaluation & Improvements 50,000 6.041 Pump Station Modifications - Phase V 6,000,000 6.061 Comprehensive Emergency Response & Planning - Phase II 50,000 6.070 Infiltration, Inflow, & Rehabilitation - Phase V 6,500,000 6.085 Sanitary Sewer Aging Infrastructrue Program - Phase II 400,000 6.089 Comprehensive Sewer Master Planning - Phase IV 500,000 6.106 Various Roadway/Storm Water Coordination - Phase V 100,000 6.148 System Expansion Cost Participation Agreements - Phase II 100,000 6.149 Princess Anne Sewer Force Main Phase IV (VDOT) 210,000 6.203 Lotus Gardens Sewer Improvements - 51 % Program 25,000 6.404 Computerized Mapping & Infrastructure Management - Phase II 50,000 6.405 Customer Information System Version Migration 600,000 6.411 CIT - Service Area Master Planning & Info. System (SAMPIS) 50,000 6.451 Engineering Services - Various Projects 50,000 6.502 Private Sanitary Sewer Pump Station Abandonment Program 300,000 6.505 Princess Anne Plaza Rehabilitation - Phase II 1,300,000 6.506 Sanitary Sewer System Revitalization Program - Phase 1 3,000,000 6.602 Princess Anne Road/Kempsville Road Intersection Improvements 550,000 6.603 Witchduck Road - Phase I Sewer Improvements 350,000 6.612 Pump Station Wet Well Revitalization 700,000 Attachment A - Capital Budget Appropriations Project Storm Water Infrastructure Rehabilitation Appropriations Number Projects FY 2009-10 7.016 Quality Physical Environment 1,000,000 Sewer Utility (Continued 900,000 6.613 Auxiliary Power Program - Sewer Pump Stations - Phase II 680,000 6.801 Various Sewer Infrastructure Maintenance Support - Phase II $ 50,000 6.802 Utility Crossings Condition Assessment Program 50,000 6.804 Sanitary Sewer Regulatory Compliance Program - Phase 1 4,522,000 6.951 Sewer Tap Installation Program 435,000 6.952 Sewer Pump Station Flow Monitoring and Data Storage 1,015,000 6.973 Sanitary Sewer Capacity Program - Phase 1 500,000 Total Sewer Utility Projects $ 28,937,000 Storm Water Utilit 7.004 Storm Water Infrastructure Rehabilitation $ 2,789,700 7.005 North Lake Holly Watershed 1,837,500 7.016 South Lake Holly Watershed 1,000,000 7.049 Beach Garden Park - Kilborne Court & Holly Road Improvements 900,000 7.063 Neighborhood Storm Water Infrastructure Improvements 400,000 7.067 Primary System Infrastructure Improvements 810,000 7.091 Residential Drainage Cost Participation Program 50,000 7.152 Lake Management 536,280 7.153 Lynnhaven Watershed Restoration 522,635 7.183 Storm Water Quality Enhancements 2,680,044 Golf Courses Equipment & Infrastructure - Phase 11 Total Storm Water Utility Projects $ 11,526,159 Coastal 8.002 Beach Profile Monitoring Program $ 25,000 8.003 Landfill #.2 Phase I Closure 687,536 8.004 Various Minor Dredging Projects 50,000 8.007 Rudee Inlet Outer Channel Maintenance Dredging 270,000 8.008 Beach Replenishment 1,476,120 8.023 Sandbridge Beach Access Improvements & Sand Management 225,000 8.110 Eastern Branch Lynnhaven River Dredging 517,282 8.282 Sandbridge Beach Restoration 3,980,000 8.830 Rudee Inlet Federal Dredging 460,000 Parks & Special Use Facilities Development & Renovation - Phase II Total Coastal Projects $ 7,690,938 Golf Courses Equipment & Infrastructure - Phase 11 Total Quality Physical Environment Projects $ 127,796,568 Cultural and Recreational Opportunities Buildings 3.103 Heritage Building - Maintenance Program $ 150,000 3.147 Historic Property Acquisition Revolving Fund 200,000 3.148 Aquarium/Owl Creek Master Plan 100,000 3.278 Virginia Aquarium Renewal and Replacement - Phase 11 325,000 3.292 Virginia Aquarium Animal Care Annex (Partial) 124,658 $ 899,658 Parks and Recreation 4.013 Community Rec Centers Repairs and Renovations - Phase II $ 4,363,207 4.016 Parks & Special Use Facilities Development & Renovation - Phase II 889,395 4.017 Golf Courses Equipment & Infrastructure - Phase 11 200,000 Attachment A - Capital Budget Appropriations Project Appropriations Number Projects FY 2009-10 Cultural and Recreational Opportunities Parks and Recreation (Continued 4.018 Greenways, Scenic Waterways & Natural Areas - Phase II 150,000 4.023 Neighborhood Parks Acquisition and Development - Phase II 150,000 4.024 Park Playground Renovations - Phase II $ 480,000 4.036 Tennis Court Renovations - Phase II 400,000 4.055 Open Space Park Development and Maintenance 1,900,000 4.063 Athletic Fields Lighting & Renovations - Phase II 200,000 4.070 Open Space Program Site Acquisition - Phase II 625,000 4.072 Williams Farm Community Recreation Center Design 300,000 4.080 Sportsplex Renewal & Replacement - Phase 1 417,573 4.309 Mount Trashmore District Park Renovations - Phase II 250,000 Total Parks and Recreation Projects $ 10,325,175 Total Cultural and Recreational Opportunities Projects $ 11,224,833 Quality Education and Lifelong Learning Schools 1.001 Renovations and Replacements - Energy Management $ 850,000 1.019 Great Neck Middle School Replacement CIT - Cable Access Infrastructure Replacement 17,000,000 1.026 College Park Elementary School Replacement 50,000 12,056,979 1.078 Pupil Transportation Services Maintenance Facility 3.340 3,948,477 1.085 Renaissance Academy Total Communications and Information Technology Projects 4,614,807 1.099 Renovations and Replacements - Grounds - Phase II 800,000 1.103 Renovations and Replacements - HVAC Systems - Phase II 3,700,000 1.104 Renovations and Replacements - Reroofing - Phase II 2,650,000 1.105 Renovations and Replacements - Various - Phase 11 1,060,000 1.106 Kellam High School 13,958,783 1.232 Tennis Court Renovations 265,000 1.234 Virginia Beach Middle School Replacement 1,765,262 Total Schools Projects $ 62,669,308 3.262 TCC Expansion/Operation Smile Headquarters $ 1,500,000 Total Buildings Projects $ 1,500,000 Total Quality Education and Lifelong Learning Projects $ 64,169,308 Quality Organization Communications and Information Technology Proiects 3.052 CIT- IT Service Continuity $ 390,555 3.119 CIT - Cable Access Infrastructure Replacement 558,283 3.124 CIT - COPS Interoperable Communications Technology Grant - Phase II 50,000 3.280 CIT - City Human Resources/Payroll System 300,000 3.340 CIT - Telecommunications Replacement 250,000 Total Communications and Information Technology Projects $ 1,548,838 Total Quality Organization Projects $ 1,548,838 Total Capital Budget $ 236,429,109 Attachment B - Financing Sources Financing Sources Federal Contribution Franchise Fees Fund Balance - General Fund Fund Balance - Other Fund Balance - School Reserve Fund General Appropriations General Obligation Boncls Interest Income - Schools Capital Projects Other Localities Private Contribution Retained Earnings - Water and Sewer State Contribution Storm Water Utility Fund Water and Sewer Bonds Water and Sewer Fund Capital Budget $ 26,576,308 313,000 33,912,998 3,459,421 4,400,000 37,008,518 66,902,805 2,500,000 50,000 100,000 14,554,900 11,525,000 10,626,159 17,000,000 7,500,000 Total Financing Sources $ 236,429,109 Attachment C — Transfers Projects Quality Physical Environment Roadway Projects Transfer To: 2.048 Princess Anne Road/Kempsville Road Intersection Improvements (First Cities) 2.073 Buckner Boulevard Extended 2.116 Shore Drive Corridor Improvements - Phase II (Partial) 2.143 Laskin Road Gateway - Phase I -A 2.305 Princess Anne Road- Phase IV (VDOT) 2.931 Witchduck Road - Phase I (Revenue Reduction) Transfer From: Appropriations Prior to FY 2009-2010 10,000,000 300,000 100,000 4,200,000 2,358,526 1,378,474 Total Transfer To: $ 18,337,000 2.072 First Colonial RoadNirginia Beach Boulevard Intersection Improvements $ 300,000 2.107 Seaboard Road 4,200,000 2.117 Shore Drive Corridor Improvements - Phase III (Partial) 100,000 2.165 Laskin Road - Phase II (First Cities Project) 3,000,000 2.256 Indian River Road - Phase VII (First Cities Project)(Partial) 7,000,000 2.931 Witchduck Road - Phase 1 (2008 State Contribution) 3,737,000 Total Transfer From: $ 18,337,000 Water and Sewer Utility Projects Transfer To: 5.006 Water Appurtenances Location & Improvements $ 100,000 5.088 Small Line Improvements - Phase V 450,000 5.089 Various Roadway/Storm Water Coordination - Phase V 300,000 5.092 Landstown Yard Improvements - Phase III 450,000 5.400 Fire Hydrant Program - Phase II 50,000 5.501 Water Pumping Station and Tank Upgrade Program -Phase 1 647,725 6.019 Resort Area Neighborhood Revitalization 700,000 6.069 Birdneck Road Sewer Improvements - Phase 11 (VDOT) 10,000 6.138 Landstown Yard Improvements - Phase III 450,000 6.505 Princess Anne Plaza Rehabilitation - Phase II 600,000 6.613 Auxiliary Power Program - Sewer Pump Stations - Phase 11 220,000 Total Transfers From: $ 3,977,725 Transfer From: 5.207 Laskin Road Water Improvements — Phase I (VDOT) $ 3,499,041 5.710 19th Street Corridor Water Improvements 275,000 6.081 Laskin Road Phase II & Gateway Improvements 203,684 Total Transfer To: $ 3,977,725 Storm Water Proiects Transfer To: 7.902 North Beach Drainage $ 5,070,000 Total Transfers To: $ 5,070,000 Attachment C – Transfers Cultural and Recreational Opportunities Buildings Transfer To: Total Transfers From: $ 5,070,000 3.146 Virginia Aquarium Building Systems Rehabilitation & Renewal - Phase 1 $ 673,016 Total Transfers To: —$ 673,016 Transfer From: 3.292 Virginia Aquarium Animal Care Annex (Partial) $ 673,016 Total Transfers From: $ 673,016 Various Business Areas Transfer To: 8.005 Western Branch Lynnhaven River Maintenance Dredging $ 1,500,000 Total Transfer To: $ 1,500,000 Transfer From: 3.021 Fire and Rescue Station - Thalia $ 1,500,000 Total Transfer From: $ 1,500,000 Appropriations Prior to Projects FY 2009-2010 Transfer From: 7.016 South Lake Holly Watershed $ 2,200,000 7.063 North Lake Holly Watershed 900,000 7.091 Residential Drainage Cost Participation Program 200,000 7.152 Lake Management 200,000 7.160 Thalia Creek Tributary Restoration (Partial) 768,335 7.183 Storm Water Quality Enhancements 801,665 Cultural and Recreational Opportunities Buildings Transfer To: Total Transfers From: $ 5,070,000 3.146 Virginia Aquarium Building Systems Rehabilitation & Renewal - Phase 1 $ 673,016 Total Transfers To: —$ 673,016 Transfer From: 3.292 Virginia Aquarium Animal Care Annex (Partial) $ 673,016 Total Transfers From: $ 673,016 Various Business Areas Transfer To: 8.005 Western Branch Lynnhaven River Maintenance Dredging $ 1,500,000 Total Transfer To: $ 1,500,000 Transfer From: 3.021 Fire and Rescue Station - Thalia $ 1,500,000 Total Transfer From: $ 1,500,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF VIRGINIA BEACH, VIRGINIA, IN THE MAXIMUM AMOUNT OF $62,900,000 FOR VARIOUS PUBLIC FACILITIES AND GENERALIMPROVEMENTS WHEREAS, the City of Virginia Beach, Virginia (the "City"), desires to authorize the issuance of general obligation public improvement bonds for various purposes in the maximum amount of $62,900,000, as permitted by the City Charter, without submitting the question of their issuance to the qualified voters. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. That it is hereby determined to be necessary and expedient for the City to construct and improve various public facilities and make general improvements, all of which will promote the public welfare of the City and its inhabitants and will facilitate the orderly growth, development, and general welfare of the City, and to finance the costs thereof through the borrowing of up to $62,900,000 and issuing the City's general obligation bonds therefor. 2. That, pursuant to the City Charter and the Public Finance Act of 1991, there are hereby authorized to be issued general obligation public improvement bonds of the City in the maximum amount of $62,900,000, to provide funds, together with other funds that may be available, for various public improvement projects, including School, Roadway, Coastal, Economic and Tourism, Building, and Parks and Recreation projects, for project activities that include, but are not limited to, the following: preliminary studies and surveys, permit compliance, environmental assessment, planning, design, engineering, site acquisition, relocation of residents, utility relocation, construction, renovation, expansion, repair, demolition, site improvement, site work, legal services, inspection and support services, furniture and equipment, and contingencies. 3. That the bonds may be issued as a separate issue at one time or in part from time to time or combined with bonds authorized for other purposes and sold as part of one or more combined issues of public improvement bonds. 4. That the bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their dates, bear interest, be in such denominations and form, be executed in such manner and be sold at such time or times and in such manner as the Council may hereafter provide by appropriate resolution or resolutions. 5. That the bonds shall be general obligations of the City for the payment of the principal, premium, if any, and interest on which its full faith and credit shall be irrevocably pledged. 6. That the City Clerk is directed to make a copy of this ordinance continuously available for inspection by the general public during normal business hours at the City Clerk's office from the date of adoption hereof through the date of the issuance of the Bonds. 7. That the City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a certified copy of this ordinance with the Clerk of the Circuit Court of the City of Virginia Beach. 8. That this ordinance shall be in full force and effective from its passage. Adopted by the Council of the City of Virginia Beach, Virginia on this 12th day of May, 2009. Adoption requires the affirmative vote of two-thirds of all members of the City Council. APPROVED AS TO CONTENT: Manage ent Services APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's ffice 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 AN ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS OF THE CITY OF VIRGINIA BEACH, VIRGINIA, IN THE MAXIMUM AMOUNT OF $17,000,000 WHEREAS, the City of Virginia Beach, Virginia (the "City"), desires to authorize the issuance of water and sewer system revenue bonds in the maximum amount of $17,000,000 for financing improvements and expansions to the City's water and sewer system (the "System"), as permitted by the City Charter without submitting the question of their issuance to the qualified voters. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. That it is hereby determined to be necessary and expedient for the City to continue its program of improving and extending the System, which will promote the public welfare of the City and its inhabitants and will facilitate the orderly growth, development, and general welfare of the City, and to finance the costs thereof through the borrowing of $17,000,000 and issuing the City's revenue bonds therefore. 2. That pursuant to the City Charter and the Public Finance Act of 1991, there are hereby authorized to be issued water and sewer system revenue bonds of the City in the maximum amount of $17,000,000 to provide funds, together with other available funds, for financing the costs of improvements and expansions to the System. 3. That the bonds shall bear such date or dates, mature at such time or times not exceeding 40 years from their dates, bear interest, be in such denominations and form, be executed in such manner and be sold at such time or times and in such manner as the Council may hereafter provide by appropriate resolution or resolutions. 4. That the System is an undertaking from which the City may derive a revenue. The bonds shall be limited obligations of the City, payable as to principal, premium, if any, and interest solely from the revenues derived by the City from the System, and shall not be included within the otherwise authorized indebtedness of the City. The bonds shall not be deemed to create or constitute an indebtedness of, or a pledge of the faith and credit of, the Commonwealth of Virginia or of any country, city, town, or other political subdivision of the Commonwealth, including the City. The issuance of the bonds and the undertaking of the covenants, conditions, and agreements to be contained in resolutions to be adopted or agreements to be entered into hereafter shall not directly, indirectly, or contingently obligate the Commonwealth, the City, or any other political subdivision of the Commonwealth to levy and collect any taxes whatsoever or make any appropriation therefore, except from the revenues pledged to the payment of the principal of and premium, if any, and interest on the bonds. 5. That such resolutions to be adopted and agreements to be entered into hereafter authorizing the issuance of the bonds and providing the details thereof shall contain appropriate covenants requiring the City to fix, charge, and collect such rates, fees, and other charges for the use of and the services furnished by the System and to revise the same from time to time and as often as shall be necessary so as to produce sufficient net revenues to pay principal of and premium, if any, and interest on the bonds as the same become due and to provide a margin of safety therefor. Such resolutions and agreements shall also include such additional covenants, agreements, and other terms as are customary for the protection of the holders of water and sewer revenue obligations. 6. That the City Clerk is directed to make a copy of this ordinance continuously available for inspection by the general public during normal business hours at the City Clerk's office from the date of adoption hereof through the date of the issuance of the bonds. 7. That the City Clerk, in collaboration with the City Attorney, is authorized and directed to immediately file a certified copy of this ordinance with the Circuit Court of the City of Virginia Beach. 8. That this ordinance shall be in full force and effect from its passage. Adopted by the Council of the City of Virginia Beach, Virginia on this 12th day of May, 2009. Requires an affirmative vote by a majority of all the members of the City Council. APPROVED AS TO CONTENT: Management Services APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's v Clffi6e' �. .,_ z. City of Vara r,"a. Beach O g'Wtl Of OUR 140%0 `Bgov lt)m WILLIAM D. SESSOMS, JR. MUNICIPAL CENTER BUILDING 1 Maya 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 235469000 (757)3854581 -fAX (757) 3856699 MOSERNDOOVBGOV.COM May 4, 2009 James K. Spore City Manager Subject: FY 2010 Budget and CIP Reconciliation Dear Mr. Spore: As you are aware, the City Council has held two public hearings on the Proposed Operating Budget and Capital Improvement Program (CIP) as well as received input from various community meetings. And in an attempt to focus our reconciliation discussion, we would like to offer the following thoughts and adjustments to the Proposed Budget and CIP. We do so conscious of the struggling economy, with an eye to the future and the need to continue the quality services expected by our citizens. 1) Animal Control Shelter — Several speakers addressed the need for improvements in the City's animal control operations especially a new shelter, and we concur. The City Council has with this budget enhanced the vaccination services offered to animals at the shelter and have added a new position of Animal Shelter Manager. We feel these are good first steps. The City Council also has allocated funding in FY 2010 to design a new, state of the art shelter building to be located on City owned property. Funding is included in the FY 2010 Capital Improvement Program to do all the design work necessary to move this project to construction in FY 2011. 2) Union Kempsville Museum and Historic Homes — The Department of Museums is committed to operating the Union Kempsville Museum and plans to use a "Scholar in Residence" to provide special events and unique programming at this new facility. Funding is available with the Department's FY 2010 Budget to accomplish this program. In addition, while the Historic Homes are losing a position with the Budget, the Department is working through a strategy of focusing the hours of operation at the various houses on days when visitation is high and to increase the use of volunteers to support existing staff. We do not recommend any adjustment to the Budget at this time, but request a status briefing before next year's Budget. James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 2 3) Burton Station Water and Sewer Initiative — We would like to suggest that the City Council direct staff to extend water and sewer into the Burton Station Neighborhood with funding for design being provided in FY 2010 and construction funding included in the FY 2011 Capital Improvement Program. This is an exciting start to the work needed in this Strategic Growth Area and will be done in conjunction with the redevelopment of Burton Station Road and Wesleyan Drive. Funding for the design is available in the Strategic Growth Area Project. 4) Consumer Affairs — Mr. Bryant sent a letter to us advocating the restoration of at least 3 of the 4 positions in this program. We would recommend to City Council that we restore sufficient funding in FY 2010 to accomplish this request. Cost = $235,810 5) Non -Resident Library Fee — Both of us feel that access to the Virginia Beach Library system is critical, especially in this trying economic time, so we would suggest the elimination of the proposed $40 non-resident fee, but we do recommend that we keep the increased funding for books and materials that the fee was to fund. Cost = $75,000 6) Sheriffs operating Budget — Sheriff Lanteigne has requested restoration of the City's reduction in funding to his Budget as well as funding to cover lost State per diem funding to his department. There is $652,703 available to partially cover this request, but he requests $231,250 in additional City funding. Cost = $888,953 7) Norfolk and Southern Right of Way Acquisition — Based on City Council direction, staff set aside the $10 million required for the City's portion of the right-of-way purchase within the General Fund Balance. These funds now need to be appropriated to the Capital Improvement Program to allow the actual purchase. To accomplish this we suggest establishing a new capital program (program sheet attached) and appropriate the required funding. Cost = $10,000,000 8) Wireless Internet Service for Public Safety Vehicles — An opportunity to greatly enhance technology in the Police, Fire, and EMS vehicles has become available at a minimal cost and staff is recommending support. The new MDT terminals in every police vehicle, fire truck, and ambulance can receive and transmit data via cell phone wireless air cards. Use of this technology will allow criminal data to be sent directly to the police car or have the ambulances be able to transmit medical data to the hospitals. Cost = $250,000 James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 3 9) Other Constitutional Offices — The Treasurer, the Commissioner of the Revenue, and the Clerk of the Court have contacted us to request some relief from proposed reductions to their FY 2010 Operating Budgets. We would recommend restoration of half of the proposed reduction in each office. This would mean that the Treasurer would receive $21,000; the Commissioner $18,500; and the Clerk of the Court $33,000. Cost = $72,500 10) Sister Cities — We are recommending the restoration of funding for this program which has opened cultural and economic doorways through its contact with the cities of Moss, Norway; Miyazaki, Japan; and North Down, Ireland. Cost = $13,260 Total Increase = X1L,U= After working with staff, we would offer the following for consideration to offset these additions to the Proposed FY 2010 Budget and Capital Improvement Program: 1) Reduce the Salary/Managed Attrition Program Reserve by $100,000. Staff feels that the remaining funding ($400,000) will be sufficient for the transition of employees whose position has been eliminated as well as to cover small salary adjustments that may occur throughout the fiscal year due to promotions, over -hires, restructuring, etc. 2) Savings of $97,333 from HRT due to their receipt of Federal Stimulus funding that allowed them to reduce the subsidy required from each locality. 3) Reduce funding for electrical costs by $685,487 within Public Works. This is possible due to the reduction in Dominion Power rates to municipalities. 4) Appropriate $652,703 in funding from the Sheriff Department Special Revenue Fund — Fund Balance per the Sheriff's Letter of April 21, 2009. 5) Appropriate $10 million in funding from the General Fund - Fund Balance to the Capital Improvement Program for the Norfolk and Southern Right -of -Way. We offer these suggestions as a way to begin our discussions and with the understanding that it does not meet all expectations, but given the economy and our limited resources, we feel that it does significantly address them. We also want to once again thank the Virginia Beach School Board for their assistance in this difficult economic time and we support the Board's request to provide "lump sum' funding in FY 2010. The School Board will be adopting a resolution to allocate their Federal Stimulus funding this evening and staff will try to reflect this action in our ordinances for May 12"'. James K. Spore FY 2010 Budget Reconciliation May 4, 2009 Page 4 The changes outlined above will increase the FY 2009-10 Operating Budget by $652,703 (the rest being transferred within the Budget) keeping it $33 million less than the current year's Operating Budget. The Capital Improvement Program for FY 2009-10 will increase by $10 million to $226,129,109 due to the need to appropriate funding for Norfolk and Southern. We look forward to discussing these items with you on Tuesday. Sincerely, William D. Sessoms, Jr., Mayor )&6-4 P 3," Louis R. Jones, Vice Wyor City of Virginia Beach, Virginia Draft Project Project # and Title: 2-173 Norfolk Southern Right -of -Way Acquisition Responsible De t.: Undefined Business Area : Undefined Total Total Budget Unappropriated Subsequent Years Future Year 2 Year 3 Year 4 Year 5 Year 6 Programmed Appropriations Year 1 I Programming Costs FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 Requirement 10,000,000 0 0 10,000,000 0 0 0 0 Description and Scope This project provides for the City's portion of funding for the acquisition of the Norfolk Southern right-of-way by the City. It is anticipated that the remaining funding will be provided by the State ($20 million) and HRT ($5 million). The existing right-of-way corridor is variable in width from 66 feet to 90 feet and extends a total distance of approximately 11 miles. Purpose and Need This project preserves the Norfolk Southern right-of-way as a future alternative transportation corridor. History and Current Status This project first appeared in the FY 2010-11 CIP. Operating Budgetary Impact Basis for Estimate FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 0 0 0 0 0 0 Schedule of Activities Activity From - To Amount Site Acquisition 07/09-06/10 10,000,000 • Total Budgetary Cost Estimate 10,000,000 - - Total Non -Programmed Costs 0 -s' Total Project Costs 10,000,000 NORFOLK & SOUFHF.RN' FJGW •OZ WAY Means of Financing Funding Source Amount Fund Balance - General Fund FY 2009 10,000,000 Total Programmed Financing 10,000,000 Future Funding Requirements 0 Fiscal Year 2008-09 1 - 1 Roadways VIRGINIA BEACH CITY PUBLIC SCHOOLS A H E A D O F T H E C U R V E School Administration Building • 2512 George Mason Drive • P.O. Box 6038 • Virginia Beach, VA 23456.0038 CIP RESOLUTION FY 2009-10/FY 2014-15 Capital Improvement Program SCHOOL BOARD WHEREAS, the mission of the Virginia Beach City Public Schools, in partnership with the entire Daniel D. Edwards community, is to empower every student to become a life-long learner who is a responsible, Chairman District 1- Centerville productive and engaged citizen within the global community; and 1513 Beachview Drive VA Beach, VA 23464 WHEREAS, the School Board of the City of Virginia Beach has adopted a comprehensive 495.3551(h)•711 -0259(c) strategic plan and school improvement priorities to guide budgetary decisions; and Rita Sweet Bellitto Vice Chairman WHEREAS, the rima funding sources for the Schools CIP are state lottery proceeds, state primary 9 ry P.O. Box 6448 construction grants, School reversions, Pay as You Go funds, and the issuance of debt by the VA Beach, VA 23456 418.0960 (c) City; and William J. "BOP' nke, Iv 7 WHEREAS, the City Council Revenue Sharing Formula provides 51.3% of certain general fund Distri —Princessss Anne District 4099 Foxwood Drive, Suite 201 revenues to meet obligations of the School Board of the Cit of Virginia Beach; and g Y g Virginia Beach, VA 23462 222-0134(w) s 286-2772 (c) WHEREAS, the City Council Revenue Sharing Formula allocates funds first to Debt Service, then Todd C. Davidson At -Large to Pay As You Go CIP funding and the balance is used for the Operating Budget; and 2424 Savannah Trail VA Beach, VA 23456 WHEREAS, due to the current economic conditions the School Board is unable to allocate 427.3330(w) • 285-9409(x) $13,936,308 in FY 2009/10 to Pay as You Go CIP funding as previously planned from the Emma L. "Em" Davis District 5 - Lynnhaven Operating Budget; and 1125 Michaelwood Drive VA Beach, VA 23452 WHEREAS, the School Board requests that $15,936,308 be allocated from the Federal ARRA 340-8911 (h) State Fiscal Stabilization Funds (SFSF) to the CIP for FY2009/10 and that $4,400,000 of the Patricia G. Edmonson District 6 -Beach Special School Reserve Fund held by the City, be allocated to the CIP for FY2009/10; and 576 N. Birdneck Rd., #190 Virginia Beach, VA 23451 WHEREAS, the School Board has comprehensively reviewed all sources of funding, projected 718-8463 (c) various scenarios and prioritized the needs of the Operating and Capital Improvement Budgets; Dan R. Lowe District 4 - Bayside and 4617 Red Coat Road Beach, V 23455 WHEREAS, the budgetary impact relating to actions by the Virginia General Assembly is known 4VA 90.3681 (jA at this time and the School Board has analyzed the new legislation and the impact to the CIP for Brent N. Mckenzie District 3 -Rose Hall FY2009/10 is an additional $3,900,000 from State Lottery proceeds. 1400 Brookwood Place VA 816.2736 VA23453 Now, therefore, be it Patrick S. Salyer RESOLVED: That the School Board of the City of Virginia Beach adopts a CIP program of At -Large 1741 Seaton Drive $600,542,918 (as shown on the attached.School Board Funding Summaries — Tables 1 and 2 VA Beach, VA 23464 620-2141 (c) dated May 5, 2009); and Sandra Smith -Jones FURTHER RESOLVED: That a copy of this resolution be spread across the official minutes of District 2 — Kempsville 705 Rock Creek Court this Board, and the Clerk of the Board is directed to deliver a copy of this resolution to the Mayor, VA 490-8167 (h) 23462 each member of City Council, the City Manager, and the City Clerk. Carolyn D. Weems At Adopted by the School Board of of Virginia Beach this 5th day of Ma 2009 -Large 1420 Claudia Drive VA Beach, VA 23455 4CCity 464-6674 (h) and , Sc ool Board Chairm SUPERINTENDENT ATTEST: James G. 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C p m m m := • OG N= gv °►uo m ? -a��'c0� NWm—' -moo 5 m , V 0v o 0 W 0 °u c oCay -o vZ �ycrQ=to m $ �g y� m s `Au, "' > E m °' o c.o ,. = OIi►CC E ° to L �L t0 � til > V •. 'D •+ tul c c c u a E oC C7mmam m- Ero EQ to voir !.c ro aco om c Wmc"No��+cn Nu �m' ptcd; NjIcn� Z�tp49�Uu.moo occ'a'c $o m QN co G O m0s o.�4aQ -)1- . NQaui �p09W c N 'n 'o 4 4 Q co QQQQQOi QOi cc` 'S c � T CITY OF VIRGINIA BEACH AGENDA {TEM ITEM: An Ordinance to Transfer Funds to Capital Project 2-186, Norfolk Southern Right -of -Way Survey MEETING DATE: May 12, 2009 ■ Background: The Norfolk Southern Right -of -Way Survey project (CIP 2-168) was established in the FY 2004-05 CIP, with an estimated cost of $300,000 to provide for a physical survey of the Norfolk Southern right-of-way and associated work for the future acquisition by the City. There is now a need for an additional $150,000 for environmental impact studies and additional survey costs. - ■ Considerations: Funding for the additional $150,000 needed for this capital project is available from FY 2008-09 General Fund Reserve for Contingencies. After this transfer, the balance in the General Fund Reserve for Contingencies will be $83,009. ■ Public Information: Public information will be handled through the normal Council agenda notification process. ■ Alternatives: Without the additional funds, environmental impact studies and other survey work cannot be done. ■ Recommendations: Approval of the ordinance to provide additional appropriations to capital project 2-186. ■ Attachments: Ordinance Recommended Action: Approval of ordinance Submitting Department/Agency: Management Se City Manage i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A14 ORDINANCE TO TRANSFER FUNDS TO CAPITAL PROJECT 2-186, NORFOLK SOUTHERN RIGHT-OF-WAY SURVEY BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $150,000 is hereby transferred from the FY 2008-09 General Fund Reserve for Contingencies to Capital Project 2-186, Norfolk Southern Right -of -Way Survey, for environmental impact studies and additional survey costs. Adopted by the Council of the City of Virginia Beach, Virginia on the day of _, 2009. APPROVED AS TO CONTENT: ._ `A Management Services CA11123 R-2 April 29, 2009 APPROVED AS TO LEGAL SUFFICIENCY: D�2 City Attorney's Offi e t � z� CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Approve the provision of $400,000 in Economic Development Investment Program Funds (EDIP) to The Art Institute of Virginia Beach LLC and Armada/Hoffler Development Company by the City of Virginia Beach Development Authority. MEETING DATE: May 12, 2009 ■ Background: The Art Institute of Virginia Beach LLC ("Art Institute") plans to open a school in Virginia Beach in time for the 2010 Spring Semester. The Virginia Beach campus will occupy 35,000 square feet of leased space at Two Columbus Center, located at the corner of Main Street and Constitution Drive, at Town Center. The school will have the opportunity to expand an additional 15,000 square feet within 24 months. The Art Institute's Virginia Beach location will accommodate 2,000 students per year, with an initial capital investment of $8.4 million for build -out of the facility, and an expected additional capital investment of $3.7 million over the next three fiscal years. Art Institute and Armada/Hoffler Development Company ("Armada/Hoffler"), owner and developer of Two Columbus Center, have jointly applied for the grant of funds under the City's Economic Development Investment Program ("EDIP") to offset a portion of the $8.4 million build -out for the Art Institute. The EDIP funds will be used specifically for venting, finishes, mechanical upgrades, bathrooms, computer rooms, kitchen equipment, and an art gallery. ■ Considerations: The programs to be offered by the Art Institute of Virginia Beach are in media arts, graphic design, fashion and culinary arts and are expected to have a synergistic effect on the restaurants, Sandler Center for the Performing Arts, and other establishments within Town Center. Moreover, the addition of The Art Institute of Virginia Beach assists in the achievement of the following Outcome Strategies addressed the City's Strategic Plan to Achieve City Council's Vision for the Future 2009-2011: • Assist the new and existing business community in preparing the workforce for the 21St century by facilitating training opportunities. • Implement a talent recruitment program to attract the creative class to our community. • Promote Virginia Beach as a location for new and expanded post secondary quality accredited educational facilities. On April 2:1, 2009, the Virginia Beach Development Authority adopted a resolution granting $400,000 to the Art Institute and Armada/Hoffler, subject to the approval of such award by City Council, all in accordance with the EDIP Policy and Procedure. Given the level of private investment by Art Institute and Armada/Hoffler, Art Institute and Armada/Hoffler would qualify for $336,000 under Part "A" of the EDIP. Be?cause the grant exceeds that amount by $64,000, Council approval is required. ■ Public Information: All public information will be handled through the normal agenda process. ■ Recommendations: Approval of the Authority's grant of $400,000 of EDIP Funds to The Art Institute and Armada/Hoffler. ■ Attachments: Ordinance. Recommended Action: Submitting Delpartment/Agency:7wz City Manage � �< , I AN ORDINANCE TO APPROVE THE 2 PROVISION OF $400,000 IN ECONOMIC 3 DEVELOPMENT INVESTMENT PROGRAM 4 FUNDS TO THE ART INSTITUTE OF VIRGINIA 5 BEACH LLC AND ARMADA/HOFFLER 6 DEVELOPMENT COMPANY BY THE CITY OF 7 VIRGINIA BEACH DEVELOPMENT AUTHORITY 8 9 WHEREAS, The Art Institute of Virginia Beach LLC ("Art Institute") has io contracted to lease from Armada/Hoffler Development Company ("AH") 35,000 square ii feet of space in the Two Columbus Center Building in the Town Center of Virginia 12 Beach (the "Property"). 13 14 WHEREAS, In order to equip the Property for the needs of the Art Institute, it will 15 require approximately $8.4 million in build -out improvements to the Property (the "Build - 16 Out"). 17 18 WHEREAS, To offset a portion of the Build -Out, Art Institute and AH have jointly 19 applied to the City of the Virginia Beach Development Authority (the "Authority") for a 20 grant under the City's Economic Development Investment Program (the "EDIP"). 21 22 WHEREAS, Under the formula set forth in Part "A" of the EDIP, Art Institute and 23 AH would qualify for an award of $336,000, but the Authority has approved an award of 24 $400,000, subject to the authorization of City Council. 25 26 WHEREAS, City Council must approve an award under the EDIP in excess of 27 the amount allowed under the formula set forth in the EDIP before the Authority may 28 make any such award. 29 30 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 31 VIRGINIA BEACH, VIRGINIA: 32 33 The City of Virginia Beach Development Authority is authorized to award 34 $400,000 to The Art Institute of Virginia Beach LLC and Armada/Hoffler Development 35 Company under Part "A" of the City's Economic Development Investment Program for 36 the development of The Art Institute of Virginia Beach at Town Center. 37 38 Adopted by the Council of the City of Virginia Beach, Virginia, on the 39 day of , 2009. 1 APPPROVED AS TO CONTENT: Department of Economic Development CA -11013 \\vbgov.com\dfs 1 \applications\city lawprod\cycom32\Wpdocs\D020\P005\00009657.DOC 5/1/09 R-1 Ira APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office C� Fp �- ts� .i CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Approve Maximum Prices for the Sale and Rental of Workforce Housing Units in the City of Virginia Beach MEETING DATE: May 12, 2009 ■ Background: In August 2007, the City Council adopted Chapter 16 of the City Code, establishing the Workforce Housing (WFH) Program and creating the Workforce Housing Advisory Board (WFHAB). One of the responsibilities of the WFHAB, as set forth in City Code Section 16-54, is to "make recommendations to the city council concerning the sales and rental prices of WFH units. Such prices shall be based on the area median income, as defined in section 16-44, and shall be adjusted semi-annually." The WFHAB, together with staff from the Department of Housing and Neighborhood Preservation, have reviewed the new sales and rental prices and are bringing forward for consideration by the City Council an ordinance, as described below. ■ Considerations: In order to comply with the code requirements, staff has prepared, and the WFHAB has reviewed and is recommending adjusted sales prices and allowable rental costs for participants. The sale and rental price adjustments are based on factors approved by City Council as part of the establishment of the program, which include qualifying income guidelines based on HUD's annually established Area Median Income (AMI) figure for the locality (WFH Income Guidelines attached for reference). ■ Public Information: The program changes were recommended and adopted by the WFHAB at its meeting of April 20, 2008. This meeting was advertised to, and open to, the public. ■ Alternatives: The ordinance presented today represents the consensus of the WFHAB and city staff regarding the new sales and rental prices for the WFH Program. While there are alternatives possible, the proposed sales and rental prices are based on factors presented to City Council in October, 2008 and were developed with considerable input from potential stakeholders and others, including mortgage industry representatives, developers, housing advocates and others. ■ Recommendations: Adoption of the ordinance. ■ Attachment:, Ordinance to Approve Maximum Sales and Rental Prices for the WFH Program; Workforce Housing Maximum Affordable Sales and Rental Prices; Workforce Housing Program Income GL�idelineq r-4 Recommended Action: Approval Submitting Department/Agency: De City Manager:',,.,,, anager: .,,,< Housing and Neighborhood Preservation 1 AN ORDINANCE TO APPROVE MAXIMUM 2 PRICES FOR THE SALE AND RENTAL OF 3 WORKFORCE HOUSING UNITS IN THE CITY 4 OF VIRGINIA BEACH 6� 6 WHEREAS, the City's Workforce Housing Ordinance (the "Ordinance") was 7 originally adopted by the City Council in August 2007, and was comprehensively 8 amended in October 2008; and 9 WHEREAS, in accordance with the provisions of the Ordinance, workforce 10 housing constructed pursuant to the approval of the City Council under Article 21 of the 11 City Zoning Ordinance must be priced so as to be affordable for purchase by a 12 household with a gross annual income between eighty (80) percent and one hundred 13 twenty (120) percent of Area Median Income, adjusted for household size; and 14 WHEREAS, in accordance with the provisions of the Ordinance, workforce 15 housing constructed pursuant to the approval of the City Council under Article 21 of the 16 City Zoning Ordinance must be priced so as to be affordable for rental by a household 17 with a gross annual income between sixty (60) percent and ninety (90) percent of Area 18 Median Income; adjusted for household size; and 19 WHEREAS, the United States Department of Housing and Urban Development 20 ("HUD") annually publishes the Area Median Income for the Virginia Beach -Norfolk - 21 Newport News, Virginia Metropolitan Statistical Area (MSA), which Area Median Income 22 is reflected in the attached table entitled "Workforce Housing Program Income 23 Guidelines as of March 19, 2009"; and 24 WHEREAS, the Workforce Housing Advisory Board (the "Board") is charged with 25 the duty to recommend to the City Council maximum sales and rental prices for 26 workforce housing units; and 27 WHEREAS, on April 20, 2009, the Board recommended maximum sales and 28 rental prices for workforce housing units, which prices are shown on the attached tables 29 entitled "Maximum Affordable Home Sales Prices (Discounted Sales Prices) as of May 30 12, 2009" and "Maximum Affordable Monthly Rent (includes tenant -paid utility 31 allowance) as of May 12, 2009"; and 32 WHEREAS, the City Council finds that the recommended maximum sales and 33 rental prices for workforce housing are fair and reasonable and appropriately based 34 upon the Department of Housing and Urban Development Area Median Income Area 35 Median Income for the Virginia Beach -Norfolk -Newport News, Virginia Metropolitan 36 Statistical Area; 37 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 38 OF VIRGINIA BEACH, VIRGINIA: 39 40 41 42 43 44 45 47 48 49 50 51 52 53 54 55 56 57 That the City Council hereby approves the maximum sales and rental prices for workforce housing units shown on the attached tables entitled "Maximum Affordable Home Sales Prices (Discounted Sales Prices) as of May 12, 2009" and "Maximum Affordable Monthly Rent (includes tenant -paid utility allowance) as of May 12, 2009," respectively. Adopted by the City Council of the City of Virginia Beach on the day of , 2009. CA -11121 April 23, 2009 R-2 APPROVED AS TO CONTENT: Deptt,,'of 100ing and Neighborhood Preservat n APPROVED AS TO LEGAL SUFFICIENCY: j td&& City Attorney's Office WORKFORCE HOUSING PROGRAM MAXIMUM AFFORDABLE SALES AND RENTAL PRICES Effective May 12, 2009 Maximum Affordable 1 BR •utility 2 BR - -• Sales - 100% Median Income $1,188 Household Income 1 2 3 Number in Household 4 5 6 7 8 120% Median Income $173,436 $201,786 $230,137 $258,488 $281,168 $303,849 $326,529 $349,210 110% Median Income $156,898 $182,886 $208,874 $234,862 $255,653 $276,443 $297,234 $318,024 100% Median Income $140,360 $163,986 $187,611 $211,237 $230,137 $249,037 $267,938 $286,838 90% Median Income $123,822 $145,085 $166,348 $187,611 $204,621 $221,632 $238,642 $255,653 80% Median Income $107,284 $126,185 $145,085 $163,986 $179,106 $194,226 1 $209,347 $224,467 Factors used in the calculation of sales prices: Area Median Income Housing Ratio = 3 0% Homeowner's insurance rate = $0.25 per $100 Real estate tax rate = $0.89 per $100 Monthly Condominium Fee = $150 Mortgage = fixed 6% interest rate with 360 terms (30 years) Maximum Affordable Household Income Monthly(includes• Efficiency 1 BR •utility 2 BR allowance) 3 BR 4 BR 100% Median Income $1,188 $1,358 $1,528 $1,833 $1,969 90% Median Income $1,069 $1,222 $1,375 $1,650 $1,772 80% Median Income $951 $1,086 $1,222 $1,467 $1,575 70% Median Income $832 $951 $1,069 $1,283 $1,378 60% Median Income $713 $815 $917 $1,100 $1,181 Factors used in the calculation of rents: Area Median Income Housing Ratio =30% Occupancy Standard of 1.5 Persons per Bedroom (similar to Housing Tax Credit Program) *All tenant -paid utilities (not to include cable television or telephone service) must be deducted from the above rent. Developers/Property Managers may use the Department of Housing and Neighborhood Preservation Section 8 Utility Allowance Chart, or obtain a letter from the local utility company in order to establish the average monthly utility allowance. w W IT LO O r O r � ')') CND COD - O � 0 00 0 Coti _ CND L O 64 vi 69 69 69 69 LO M (D (D (D M 00 ti O CD Il- M O O O rn 000 1,- O LA ( 69 64 64 6=} 64 69 69 r- d' SD C 00 00 LO M 00 LO ' ami 000 1- O- cyi CD u � 69 EA 64 69 69 Efi 69 • O s d co 0 LO CO M 0 C(DD M 0) N m CD M O O M m � = 69 64 6% 6Fi 69 69. d 000 � O N M E d CO CA �- - M Lt) f - 7co 069 Z E!) 64 E09 � � � ■ ( ( N � 00 � (O D • M M N rn 00 P- CD � OD � C14 � (0 � � � � • 000 LO N 00 LA N CA N I-- M 00 tt O LO O LO � qt � MMCD • fA 6H 6R 6R EA 69 69 • (D M M d0 O M 1- 1- It N r- I� co O N Ln f- O N O a- LO Lf) � ul (ti � d3 63V), (U E (0 N L N N tB N Oa 'n .a E E E E E E E O N D m U N U (CS U t4 U t6 O D l0 U s Q c Q c Q c Q c Q c Q c Q c 0 0 0 0 N O 0) co coCOO R =LAK` WIND OR RD \ S BAY C ON cn m N 'L Oa w m O Q� 45 H p O� m o ° Ocean Front Prepared i m by the City of Virginia Beach I DOG ` - Communications and Information Technology ORD1 \ _ Geospatial Information Ser,ces fir's J O T S May 2009 4 - (0 City of Virginia Beach - Center for GIS OR DR 3 Tf w�e �O O \ 7-0 -O VV 1t� e0 O O 19,. r. 4 `f�l Iyf X21 � 0 00 Legend Operating route for beach pedal cabs AGER TL �o m INQUAPIN N 2 r II C) i = S OT N BAY EBIRD i Z1 <v O T rJ ({ n A v 04 5 Gf�ABACNi r = 4� O ` t /I �- RTWIERI O Z BI e- O BEPG TH ST - cnr) i A V f V\ GINIA 16 tQ H S ° _ = E A < lGc f -D __j OOM PW T T Z O �- ' 'ORETTA LN 13T ST ( i.. 7 1 OR Ny F V 12TH a SOU-' ERN BL �N NORF m �,0 L `� 1 KSON k Z � Z �N YA A pv Z HQL ENSEN DR = w T S v,.. of 9 o c D Av J z UTIFUL S T o m NIG RA E A M 4T ST . BEA g ANNE T RN GOOSE L�O A 3 ST 5 \ILBI D DR Z S _ R 2 THE µ each C O M N Y PROPOSAL TO City of Virginia Beach The Beach Pedal Cab Company Larry Martinette and Rick Jewell of Virginia Beach THE e.V t ' ' , 1 dal Cab 0 �K- 2325 Newstead Drive Virginia Beach, Virginia 23454 (757) 567-4375 March 20, 2009 Mr. Michael Eason Resort Administrator Virginia Beach Convention and Visitor's Bureau 2101 Parks Avenue, Suite 500 Virginia Beach, Virginia 23451 Dear Mike, It was a pleasure to meet with you Tuesday, March 3rd. We appreciated your input and information. Per our conversation, we have put the proposal in progress concerning pedal cab transportation at the Oceanfront. If there is any information we have not included, please contact us and we will get it to you right away. We are excited about the possibility of offering this alternative transportation service and contributing to the wholesome image of Virginia Beach's resort area. Thank you so much for your assistance. Sincerely, Larry Martinette Rick Jewell PILOT PROGRAM PROPOSAL TO OPERATE A BICYCLE -STYLE RICKSHAW/PEDAL CAB TAXI SERVICE AT THE VIRGINIA BEACH OCEANFRONT. NEED: The available modes of transportation for visitors on the boardwalk is limited to surrey bike rentals and bicycle rentals. According to the latest data complied by Old Dominion University's Over Night Visitor Profile, 4% of vacationers visiting Virginia Beach during the resort season are over the age of 65. Approximately 52,000 people. It is this group of people, as well as many others, that could very well have physical limitations and no options to see our most beautiful natural resource, the Oceanfront and all it has to offer. SOLUTION: A zero emission human -powered pedal cab providing alternative transportation for tourist as well as locals. Powered by trained, licensed and fully insured operators. Safe, friendly and comfortable ride. Top of the line construction and styling including seat belts, as well as full canopy. Operators are informative -sharing points of interest, dining, shopping and directions. (attached) NUMBER OF CABS FOR PILOT PROGRAM: The Beach Pedal Cab Company currently owns 2 vehicles. It is believed that this will be adequate to determine if there is indeed a need and a market for this type of transportation. Should we determine a need for more, we are prepared to purchase 2 more. We believe that the bike path could support as many as 6 to 8 without causing added congestion. This will be determined by our pilot program. We also have a sense of need for this service to accommodate east and west routes to restaurants and businesses located in close proximity to the Oceanfront. HOURS OF OPERATION: Daily (Mon -Sun): 9 AM - 11 PM - May 23 -October 1, 2009 LOCATION: Operating on the bike path parallel to "Ocean Avenue" and crossing Atlantic and Pacific avenues at signaled intersections to provide east/west service to adjacent oceanfront areas. FARE: 25 cents per block, per person. EMPLOYMENT OPPORTUNITIES: Due to the physical demand placed on the operators, our operating shifts will not exceed 6 hours. In order to operate 1 cab 7 days a week, BPC will employee 5 parttime operators. Depending on the success of the program it is feasible that as many as 50 additional job opportunities could be created. ESTIMATED OPERATING BUDGET: The following projections are estimates and we believe them to be conservative. They are based on 25 cents per block per passenger: two passengers traveling ten blocks generating a fare of $5.00. The estimate also reflects 3 exact fares per hour for the twelve hours of operation each day. The time of operation is from May 22 through October 1, 2009. This does not take into account inclement weather delays. Projected income per cab: $19,620.00 Projected expenses per cab: $11,787.00 Balance: $7,833.00 Explanation of expenses: $ 7,620.00 employee wages $ 760.00 payroll taxes $ 981.00 sales tax $ 1074.00 insurance $ 960.00 rent $ 392.00 (2%) repairs and maintenance $ 11,787.00 Total UNIFORMS: The Beach Pedal Cab Company will require employees/operators to wear conserative shorts or pants, t -shirts, polo shirts or appropriate tops, tennis shoes or sandals. Bathing suits, flip flops and bare feet will be prohibited. TRAINING: Each operator will receive a minimum of 3 hours training on the pedal cab operation, will agree to and sign our safety rules and regulations requirements (enclosed), and will be briefed on points of interest and history of the resort area. INSURANCE: The Beach Pedal Cab Company will maintain personal injury liability insurance in the amount of $1,000,000.00 per person per occurance. In cities that regulate pedicab operations, research has shown this to be the standard amount required. SPEED: Maximum speed 5 mph FRANCHISE FEE TO CITY: To be determined TIME IN BUSINESS: L&M Inc. has owned, managed and operated a number of businesses since incorporation in 2003 to include a vending business, and two restaurants: one trading as Johnnyboy's and the other Dominic's of New York, which is still in operation. The other two have been sold. BUSINESS REFERENCES: Jeff Tuell, General Manager, Beach Ford 757- 486-2718 Brain House, General Manager, Hall Auto Group 757-498-2200 Joyce Saunders, Special Projects Manager, Sysco Foods 757-673-4000 Judy Messamore, Food Service Operations Manager, Navy Exchange 757-435-7496 PERSONAL REFERENCES: Phil Kellam, Comminisser of Revenue, City Of Virginia Beach 757-385-8660 Kimberly Swagger, President Auto Dynamics 737-635-2077 Bill Joyner, President Association of Courthouse Recreation 757-439-0827 Al Midgett, President Noblemen 737-619-6960 David "Butch" Matthews, President, Virginia Beach Printing 757-428-4282 Robert "Sonny" Morris, Senior Event Entertainment Consultant 757-478-3758 Safety Regulations The following Safety Rules and Regulations are provided for you and your passenger's personal safety They are also designed to preserve your cab's liability insurance and protect you and The Beach Pedal Cab Company from possible litigation. A violation of any of the following (unless otherwise noted) will result in a written warning from The Beach Pedal Cab Company. A repeated violation of the same nature will result in the loss of your privilege to operate a Beach Pedal Cab. Multiple violations of a different nature will also result in loss of employment. • Two adults maximum per cab, maximum 4 people if less than eight years old. • Obey all traffic laws as if you were a motor vehicle. Stop at red lights and stop signs, use turn signals when turning corners and changing lanes. Do not split lanes. • Pedestrians have right of way. • Do not ride on sidewalks. No curb jumping. • Do not block sidewalks or driveways. • Do not ride beyond jurisdiction. • No soliciting of any kind while on duty • Conduct exhibiting a general disregard for safety and equipment will result in immediate loss employment. • Use of alcohol or illegal drugs or tobacco products while on duty is strictly forbidden and will result in immediate loss of employment. The undersigned has read, understands, received a copy, and pledges to abide by the above regulations. OPERATOR'S NAME OPERATOR'S SIGNATURE DATE Beach Pedal Cab Company AUTHORIZED SIGNATURE DATE 0 Beach Pedal Cab • Provides an alternative transportation service for locals and tourists in Virginia Beach's resort area • Located in the heart of the resort strip • Powered by trained and insured operators • Safe, friendly and comfortable ride • Equipped with seat belts, front headlight, rear lights, and turn signals • Rear hydraulic brakes for safe braking and rear axle differential for tight turning • Top of the line construction and styling • Our operators are more than happy to take you to your destination, sharing points of interest, dining, shopping and directions • Reach your next destination in style and comfort while enjoying the weather in our zero -emission pedicab; our friendly, knowledgeable operators can be dispatched to you... or just wave us down 757. 567. 4375 J Virginia Beach Resort May — September 7 Days a Week Licensed and Insured Boardwalk Tours Comfortable, Safe and "Green" Showing beach scape improvements, attractions, businesses and offering some beach history along the way IA.. OW 4i t CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to Authorize a Pilot Program to Allow Pedal Cab Service In Select Areas In and Around the Resort Area from May 23, 2009 through October 1, 2009 MEETING DATE: May 12, 2009 ■ Background: The use of bicycles, surreys and other forms of pedal vehicles has become a popular, convenient and environmentally friendly form of transportation in the Resort Area. Taxi service is slow in the Resort Area due to traffic congestion, and public transportation is not available to many of the restaurants located on Rudee Inlet. For these reasons, pedal vehicles have become an important means of transportation in the Resort Area. Many visitors and residents, however, are unable to take advantage of pedal vehicles because of age or health issues. In an effort to provide additional transportation in the Resort Area, L&M, Inc. ("L&M") applied to the City for a temporary permit to offer bicycle -style rickshaw pedal cab taxi service in the following areas: (1) along the bike path and the connector parks adjacent to the boardwalk, between Rudee Inlet and 42nd Street; (2) on 5d' Street, between Atlantic Avenue and Pacific Avenue; and (3) on Winston Salem Avenue, between Pacific Avenue and Mediterranean Avenue ("Premises"). Representatives of L&M presented a proposal to the Resort Advisory Commission ("RAC') on April 2, 2009 for a pilot program to operate up to four pedal cabs on the Premises from May 213, 2009 to October 1, 2009. The RAC voted unanimously to endorse the pilot program. ■ Considerations: Operating criteria was developed and incorporated into the proposed Temporary Permit Agreement ("Agreement") to minimize conflict with other pedal vehicles and to ensure public safety. The Police Department reviewed and provided comments on the Agreement. The Department of Convention and Visitors Bureau ("CVB") is requesting that a Temporary Permit Agreement be issued to L&M to operate up to four pedal cabs on the Premises from May 23, 2009 through October 1, 2009. At the conclusion of the pilot program, CVB will evaluate the program and, with the assistance of the RAC, present recommendations to City Council. If City Council elects to continue with pedal cab service in the future, CVB will follow standard procurement procedures to select a pedal cab operator. ■ Public Information: Information will be disseminated to the public through the normal process involving the advertisement of the City Council agenda. ■ Resort Advisory Commission Recommendation: Adoption ■ Attachments: Ordinance, Summary of Temporary Permit Agreement, Temporary Permit Agreement, L&M, Inc. Proposal Recommended Action: Adopt Ordinance Submitting Department/Agency: Convention and Visitors Bureau City Manager: C �..byll� 1 AN ORDINANCE TO AUTHORIZE A PILOT PROGRAM TO 2 ALLOW PEDAL CAB SERVICE IN SELECT AREAS IN AND 3 AROUND THE RESORT AREA FROM MAY 23, 2009 4 THROUGH OCTOBER 1, 2009 5 6 WHEREAS, the use of bicycles, surreys and other forms of pedal vehicles has 7 become a popular, convenient and environmentally friendly form of transportation in the 8 Resort Area; and 9 10 WHEREAS, because taxi service is slow in the Resort Area due to traffic 11 congestion, and public transportation is not available to many of the restaurants located 12 on Rudee Inlet, pedal vehicles have become an important means of transportation in 13 the Resort Area; and 14 15 WHEREAS, due to age or health issues, many visitors and residents are unable 16 to use pedal vehicles; and 17 18 WHEREAS, in an effort to provide additional transportation in the Resort Area, 19 L&M, Inc. ("L&M") applied to the City for a temporary permit to offer bicycle-style 20 rickshaw pedal cab taxi service in the following areas: (1) along the bike path and the 21 connector parks adjacent to the boardwalk, between Rudee Inlet and 42nd Street; (2) 22 on 5th Street, between Atlantic Avenue and Pacific Avenue; and (3) on Winston 23 Salem Avenue, between Pacific Avenue and Mediterranean Avenue ("Premises"); 24 and 25 26 WHEREAS, representatives of L&M presented a proposal to the Resort Advisory 27 Commission ("RAC') on April 2, 2009 for a pilot program to operate up to four pedal 28 cabs on the Premises from May 23, 2009 to October 1, 2009; and 29 30 WHEREAS, the RAC voted unanimously to endorse the pilot program; and 31 32 WHEREAS, operating criteria was developed and incorporated into the proposed 33 Temporary Permit Agreement ("Agreement") to minimize conflict with other pedal 34 vehicles and to ensure public safety; and 35 36 WHEREAS, the Police Department reviewed and provided comments on the 37 Agreement; and 38 39 WHEREAS, the Department of Convention and Visitors Bureau ("CVB") is 40 requesting that a Temporary Permit Agreement be issued to L&M to operate up to four 41 pedal cabs on the Premises from May 23, 2009 through October 1, 2009. 42 43 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 44 VIRGINIA BEACH, VIRGINIA: 45 46 That City Council hereby consents to the issuance of a Temporary Permit 47 Agreement for Pedal Cab Transportation to L&M to offer bicycle -style rickshaw pedal 48 cab taxi service on the Premises for the period of May 23, 2009 through October 1, 49 2009, and authorizes the City Manager or his designee to execute a temporary permit 50 agreement with. L&M for said purpose. Adopted by the Council of the City of Virginia Beach, Virginia on the day of , 2009. APPROVED A3 TO CONTENT: partment of Convention and Visitors Bureau CA11092 R-4 April 28, 2009 APPROVED AS TO LEGAL SUFFICIENCY: City Attor y's Office Summary of Terms Temporary Permit Agreement for Pedal Cab Transportation Franchisee: L & M, Inc. Nature of Franchise: Offer bicycle -style rickshaw pedal cab service in the following areas: (1) the bike path and the connector parks adjacent to the boardwalk, between Rudee Inlet and 42°d Street; (2) on 5th Street, between Atlantic Avenue and Pacific Avenue; and (3) on Winston Salem Avenue, between Pacific Avenue and Mediterranean Avenue. Term: May 23, 2009 through October 1, 2009. Franchise Fee: $1,000 for the term. This fee is for the operation of two (2) pedal cabs. Franchisee may operate up to four (4) pedal cabs. If Franchisee operates more than two (2) pedal cabs, Franchisee shall pay to the City the additional sum of five hundred dollars ($500.00) per pedal cab. Expansion of Service Area: The Franchisee may submit a written request to the City to expand the scope of its service area beyond the three areas specified above. The City Manager or designee may authorize such expansion. Non -Exclusive Franchise: The City is authorized to grant other franchises in the subject area. Operational Criteria: The Agreement stipulates operational standards and safeguards such as: • Good working order of vehicles and approval of appearance by City • Proper working braking mechanism engaged when loading and unloading passengers • Operated on bike path at a maximum speed of five (5) miles per hour • Slow moving vehicle emblem displayed on rear during daylight hours approved by City • Lights and illumination devices on all vehicles at night approved by City • Pedestrians have the right-of-way and operators will protect the public's safety • Loading and unloading plans shall require prior approval by City • Vehicles shall cross streets at signalized intersections only • Operators must be employee of Franchisee and present with passengers at all times • Proper attire must be worn by operators with name tag and company name • Operators shall not sell, solicit, offer, distribute, or provide any information regarding time shares, vacation packages, lodging accommodations, hotels, motels, inns, campgrounds, restaurants, retail stores and entertainment establishments • No advertisements, other than name, fee, and the location of the service shall be placed or maintained on or in Premises • Any changes in the operational criteria shall require prior written approval of City Hold Harmless: Franchisee indemnifies and holds harmless the City for loss and liability. Insurance: $2,000,000 combined single limits. Termination: City may terminate Agreement for reason of Franchisee's failure to comply with the terms of the Agreement. TEMPORARY PERMIT AGREEMENT FOR PEDAL CAB TRANSPORTATION PILOT PROGRAM IN SELECT AREAS IN AND AROUND THE RESORT AREA THIS AGREEMENT, made the day of , 2009, by and between the CITY OF VIRGINIA BEACH, a municipal corporation, organized and existing under the laws of the Commonwealth of Virginia, hereinafter referred to as "City," and L & M, Inc., with a principal place of business at 2325 Newstead Drive, Virginia Beach, Virginia, hereinafter referred to as "Grantee." WITNESET WHEREAS, Grantee has applied to the City for a temporary permit to conduct a bicycle -style rickshaw pedal cab taxi service on public property in and around the Resort Area ("Pedal Cab Service"); and WHEREAS, to that end, Grantee represents that it will comply with all applicable provisions of federal, state, and municipal law, and all pertinent rules and regulations of any board, committee, agency, or commission thereof; and WHEREAS, the City finds that Pedal Cab Service would promote the public interest and would serve to enhance the festive atmosphere at the oceanfront. Now, therefore, for and in consideration of the mutual promises and covenants herein set forth, it is agreed as follows: 1. Conditions of Grant of Permit a. It is expressly agreed and understood by Grantee that the grant of the temporary permit described herein below is conditional, the grant of such temporary permit being conditioned upon Grantee's obtaining any other required permits and/or licenses, and being further conditioned upon Grantee's compliance with all of the 1 terms and conditions of this Agreement. It is expressly agreed and understood by Grantee that the failure of Grantee to obtain any one or more of the required approvals, licenses, or permits shall render this Agreement null, void, and of no force and effect. b. The grant of the temporary permit to Grantee shall also be subject, in addition to the foregoing conditions, to such further conditions as the City may, in its discretion, impose upon Grantee. 2. Grant of Permit a. Subject to the provisions of paragraph 1 of this Agreement, or any other condition imposed by this Agreement or by law, the City does hereby grant unto Grantee a temporary permit to offer Pedal Cab Service as a pilot program, to be operated: (1) along the bike path and the connector parks adjacent to the boardwalk, between Rudee Inlet and 42nd Street; (2) on 5th Street, between Atlantic Avenue and Pacific Avenue; and (3) on Winston Salem Avenue, only between Pacific Avenue and Mediterranean Avenue ("Premises"). Grantee may submit to the City a written request to expand the scope of the Premises. Any request to expand the scope of the Premises must be approved, in writing, by the City. The term of the Agreement shall be from and including May 23, 2009, to and including October 1, b. This Agreement shall not be renegotiated or continued unless a franchise is granted by the City Council of the City of Virginia Beach pursuant to Section 15.2-2100 of the Code of Virginia of 1950, as amended. 2 c. Grantee shall be permitted, in its sole discretion, to operate daily from 10:00 a.m. to 11:00 p.m. However, the City reserves the right to suspend or modify the hours of operation in the event the beach is being used for (i) a permitted special event, or (ii) a City -sponsored function or event, or (iii) the boardwalk is closed for repairs, or (iv) if the City Manager or his authorized designee determines that the weather conditions is of an intensity and duration that renders the operation of Pedal Cab Service a danger to the health, safety and welfare of the public. d. Except as set forth in paragraph 3 (b) of this Agreement, for purposes of this Agreement, Pedal Cab Service shall consist of no more than two (2) individually operated bicycle -style rickshaw pedal cabs. 3. Permit Fee a. Grantee shall pay to the City for use of the Premises a fee, hereinafter the "Permit Fee," in the amount of one thousand dollars ($1,000) for the term of operation. Said fee shall be paid in full at the signing of the Agreement. b. If Grantee determines that additional pedal cabs would be appropriate for its operation, Grantee may operate up to two (2) additional pedal cabs, for a total of four (4) pedal cabs. In the event that Grantee operates additional pedal cabs, Grantee shall pay to the City, in addition to the Permit Fee, the sum of five hundred dollars ($500) per pedal cab ("Supplemental Fee") C. The failure of Grantee, for any reason, to pay the Permit Fee, or the Supplemental Fee, if applicable, shall constitute grounds for the immediate cancellation of this Agreement and forfeiture of any rights conferred upon Grantee by this Agreement. The City may, but shall not be required to, extend the period of 3 time within which a payment shall be tendered or may, in lieu of any other remedy, treat this Agreement as remaining in full force and effect and avail itself of any and all lawful means of collecting such Permit Fee and Supplemental Fee. d. In the event of the cancellation of this Agreement or the termination of the permit granted hereunder prior to the expiration of its stated term, for any reason, no portion of any monies paid by or on behalf of Grantee on account of the Permit Fee or the Supplemental Fee shall be refundable. 4. Nonexclusive Permit It is expressly understood and agreed by Grantee that the permit is not exclusive. The City hereby reserves unto itself the right to grant similar permits to any person, firm, corporation, or other entity at any time and from time to time. 5. Compliance with Law Grantee shall comply with all federal, state and local statutes, ordinances, and regulations now in effect or hereafter adopted, in the conduct of the Pedal Cab Service. 6. Operational Criteria a. Pedal cabs shall be maintained in good working order and shall be aesthetically pleasing. The City shall approve the appearance of the pedal cabs. b. Pedal cabs shall have a proper working braking mechanism. Such mechanism shall be engaged for loading and unloading passengers. C. Pedal cabs shall be operated on the Premises at a maximum speed of five (5) miles per hour. 4 d. Pedal cabs shall display a "slow moving vehicle emblem" on the rear of the vehicle during daylight hours. A battery powered blinking light or other illumination devices shall be placed and used on all pedal cabs at night. The City shall approve the emblem, lights, and other illumination devices. e. All pedestrians shall have the right of way and the Grantee shall make every reasonable effort to protect the public's safety. f. No pedal cab shall be loaded or unloaded on the boardwalk, the boardwalk bikE: path, Atlantic Avenue, the trolley lane, or the sidewalks in the resort area. The staging, loading, and unloading of passengers shall be done in connector parks, greenbE:lt, or other areas mutually agreed upon by the City and Grantee. No loading or unloading, or settling of bills, shall be done in the trolley lane. Loading and unloading plans shall require approval by the City. g. Pedal cabs shall cross streets (including, but not limited to, Atlantic Avenue and Pacific Avenue) at signalized intersections only, unless an alternative location is approved, in writing, by the City. h. Pedal cab operators must be employed by Grantee. i. Pedal cab operators must be present with passengers at all times during the Pedal Cab Service. j. Grantee shall provide to each of its employees, attire which appropriately identifies the pedal cab ride operation. Such attire shall be approved by the Convention and Visitor's Bureau. The approved attire must be worn by on - duty employeE!s during all hours of operation. Failure of an employee to be properly attired shall result in the Pedal Cab Service being discontinued until the proper attire 5 is obtained. All outer wear shall have at least a name tag with the Grantee's official logo or company name. k. Persons operating pedal cabs shall not sell, solicit, offer, distribute, or provide any information, written or oral, regarding any operation or service in connection to time shares, vacation packages, lodging accommodations, hotels, motels, inns, campgrounds, restaurants, retail stores and entertainment establishments. I. No advertisements, other than the name of Grantee, and the fee for the use and the location of the Pedal Cab Service, shall be placed or maintained by the Grantee on or in the Premises. M. Any changes in the operational criteria shall require prior written approval of the City. 7. Condition of Premises Grantee shall be responsible for repairing all damage to public property caused by its operation. Any and all damages resulting from the Grantee's operation shall be immediately reported to the Resort Administrator or his/her designee and repaired within a time period specified by the City. 8. Permitted Uses Grantee shall not use the Premises, nor suffer the Premises to be used, for any purpose other than as contemplated by this Agreement. 9. Right of Inspection The City, by its authorized officers, agents, or employees, shall have the right to inspect the operation at any and all reasonable times, with or without notice, for 10 the purpose of determining Grantee's compliance with the provisions of this Agreement. 10. Assignment of Permit Grantee shall not, assign, delegate, or otherwise transfer, in whole or in part, the permit agreement or any_ of Grantee's rights or obligations arising hereunder. In the event the City discovers Grantee made such an assignment, the Grantee will be found in breach of the terms of this Agreement, and the Agreement will be immediately terminated. 11. Interest of Grantee Grantee shall acquire no interest in the Premises, legal or equitable, other than the right to occupy such Premises during the term of this Agreement for the sole purpose of conducting the Pedal Cab Service in compliance with, and subject to, the provisions of this Agreement, and such rights in and to Grantee's personalty used in and about the operation of its establishment are as conferred upon Grantee by law. Nothing in this Agreement shall constitute, be construed as, or be deemed to be the grant of a franchise. 12. Relationship of Parties It is mutually understood and agreed by the parties that nothing contained in this Agreement is intended, or shall be construed, as in any manner creating or establishing any agency relationship between the parties or any relationship of joint enterprise or partnership. Grantee shall have no authority, express or implied, to act or hold itself out as the agent or representative of the City for any purpose. Grantee shall at all times remain an independent contractor, solely responsible for all 7 obligations and liabilities of, and for all loss and damage to, Grantee's operation, including the Premises and property thereupon, and for all claims and demands resulting from Grantee's operation. 13. Hold Harmless/Indemnification It is understood and agreed that Grantee hereby assumes the entire responsibility and liability for any and all damages to persons or property caused by or resulting from or arising out of any act or omission on the part of the Grantee, its subcontractors, agents or employees under or in connection with this Agreement or the performance or failure to perform any work required by this Agreement. Grantee agrees to indemnify and hold harmless the City and its agents, volunteers, servants, employees, and officials from and against any and all claims, losses, or expenses, including reasonable attorney's fees and litigation expenses suffered by any indemnified party or entity as the result of claims or suits due to, arising out of, or in connection with (a) any and all such damages, real or alleged, (b) the violation of any law applicable to this Agreement, and (c) the performance of any activities on the premises by Grantee or those for whom Grantee is legally liable. Upon written demand by the City, Grantee shall assume and defend at Grantee's sole expense any and all such suits or defense of claims made against the City, its agents, volunteers, servants, employees, or officials. 14. Insurance a. Grantee shall, prior to the commencement of its operation, procure and shall thereafter maintain in full force and effect during the entire term of this Agreement, a policy or policies of insurance protecting and insuring Grantee and the City, and their agents, employees, and officials against any loss, liability, or expense whatsoever, from personal injury, death, or property damage arising out of or occurring in connection with Grantee's occupancy of the Premises or conduct of its operation, whether such injury, death, or damage occurs or is sustained, or the cause thereof arises, on or off the Premises. The City shall be named as insured under any and all such policies. Such policy or policies shall be written by a responsible insurance company or companies licensed to conduct the business of insurance in the Commonwealth of Virginia and acceptable by the City. Such policy or policies shall be in a comprehensive general liability form, including products liability coverage, and shall be in an amount not less than two million dollars ($2,000,000) combined single limits. The risks covered by any such policy or policies of insurance shall not be limited nor the amount of coverage there under reduced by reason of any insurance that may be maintained by the City. b. Prior to the commencement of its operation and without demand by the City, Grantee shall furnish to the Convention and Visitor's Bureau a certificate(s) of insurance showing Grantee's compliance with the foregoing requirements. Any such certificate(s) shall state that the policy or policies of insurance named therein will not be cancelled or altered without giving at least thirty (30) days prior written notice to the City. C. Grantee's performance of its obligations under the provisions of this section shall riot relieve Grantee of liability under the indemnity and save harmless provisions of the preceding paragraph of this Agreement. 15. Abandonment 0 In the event Grantee shall abandon its operation, the City shall have the right to immediately cancel this Agreement and terminate the permit. 16. Termination of Permit a. The City shall have the right to cancel this Agreement and terminate the permit on notice to Grantee upon the occurrence of any of the following events: (1) The failure of Grantee to secure any approval, license, or permits required by this Agreement or by law, or the cancellation or revocation of any such license or permit. (2) The failure of Grantee to fulfill, abide by, or comply with any condition of the grant of the Agreement. (3) The failure of Grantee to pay the Permit Fee required hereunder, or any Supplemental Fee. (4) The failure of Grantee to comply with any statute, ordinance, regulation, or other law applicable to the ownership or management of its operation or to the occupancy and use of the Premises. (5) The use of the Premises by, on behalf of, or at the sufferance of Grantee for any activity or purpose other than that which is expressly permitted by this Agreement. (6) The failure of Grantee to procure any policy or policies of insurance required by this Agreement, to have been procured prior to the commencement of Grantee's operation, the cancellation or lapse of any such policy or policies so as to cause the aggregate of the limits of liability of coverage there under to be less than 10 the amounts required by paragraph 14 of this Agreement, or any material and adverse change in the risks covered or persons or entities insured there under. (7) The purported assignment, delegation, or other transfer by Grantee of the permit, in whole or in part, or of any of the rights or obligations of Grantee set forth herein. (13) The refusal of Grantee to permit inspection of the operation by the City as set forth in this Agreement. (9) The death of Grantee, if Grantee is the sole proprietor, or in any other case, the termination of Grantee's existence as a business organization, whether by dissolution, consolidation, merger, sale, or other like act, or the revocation of Grantee's authority to transact business in the Commonwealth of Virginia. b. The election by the City to exercise its right to cancel this Agreement and to terminate the permit shall be without prejudice to any of its other rights at law or in equity, and any remedy set forth in this Agreement shall not be exclusive but shall be cumulative upon any or all other remedies herein provided or by law allowed. Upon termination of this Agreement and the permit, Grantee shall immediately cease all operations upon the Premises. C. Notwithstanding any other remedy conferred upon the City by this Agreement or by law, the City may elect to suspend Grantee's operation upon the occurrence of any of the events herein above enumerated or in the event of the breach by Grantee of any other provision or condition of this Agreement. Grantee shall, upon receipt of notice of such suspension, immediately cease its operation 11 until such time as the City shall permit Grantee to continue its operation. Such permission shall be granted by the City at such time as Grantee shall have remedied the breach or breaches of this Agreement giving rise to such suspension. 17. Publicity The City shall have the right to photograph Grantee's operation and to use any such photographs in any of its publicity or advertising. Grantee shall not be entitled to compensation by reason of the taking or use of any such photographs. 18. Notice All notices required or permitted hereunder shall be given and shall be deemed given if, in writing, mailed by certified or registered mail, and addressed to Grantee at the address of Grantee stated in its application or to the Resort Administrator or designee, 2101 Parks Avenue, Suite 502, Virginia Beach, Virginia 23451, or to such other address as either party may direct by notice given as herein above provided. 19. Severability The provisions of this Agreement shall be deemed to be severable, and should any one or more of such provisions be declared or adjudged to be invalid or unenforceable, the remaining provisions shall be unaffected thereby and shall remain in full force and effect. 20. Descriptive Headings The descriptive headings appearing in this Agreement are for convenience only and shall not be construed either as a part of the terms, covenants, and conditions hereof or as an interpretation of such terms, covenants, and conditions. 12 21. Entirety of Agreement This Agreement and any exhibits constitute the final, complete and exclusive written expression of the intentions of the parties, and shall supersede all previous communications, representations, agreements, promises or statements, whether oral or written, by any party or between the parties. 22. Waiver No failure of the City to exercise any right or power given to it by law or by this Agreement, or to insist upon strict compliance by Grantee with any of the provisions of this Agreement, and no custom or practice of the parties at variance with the terms hereof, shall constitute a waiver of the City's right to demand strict compliance with the terms of this Agreement. 23. Modification No modification, revision, or deletion of any of the provisions of this Agreement, and no addition of any provisions hereto, shall be valid unless in writing and executed with the same formalities as this Agreement. 24. Governing Law/Venue This Agreement and the permit shall be governed and construed by the laws of the Commonwealth of Virginia, and the parties hereto designate the appropriate courts of competent jurisdiction of the City of Virginia Beach, Virginia or the U.S. District Court for the Eastern District of Virginia, Norfolk Division, for purposes of litigation and venue. 13 25. Faith Based Organizations The City of Virginia Beach does not discriminate against Faith -Based Organizations. 26. Compliance with Immigration Laws. Grantee does not currently, and shall not during the performance of this Agreement, knowingly employ an unauthorized alien, as defined in the federal Immigration Reform and Control Act of 1986. (SIGNATURES ON FOLLOWING PAGES) 14 IN WITNESS WHEREOF, the following signatures and seals: CITY OF VIRGINIA BEACH, a municipal corporation By City Manager/ Authorized Designee STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to -wit: - I, , a Notary Public in and for the City and State aforesaid, do hereby certify that , City Manager/Authorized Designee for the CITY OF VIRGINIA BEACH, whose name as such is signed to the foregoing Permit Agreement, has acknowledged the same before me in my City and State aforesaid. He is personally known to me. GIVEN ender my hand this day of , 2009. Notary Public My Commission Expires: Registration No.: ATTEST: City Clerk STATE OF VIRGINIA, CITY OF VIRGINIA BEACH, to -wit: I, , a Notary Public in and for the City and State aforesaid, do hereby certify that RUTH HODGES SMITH, City Clerk, for the CITY OF VIRGINIA BEACH, whose name as such is signed to the foregoing Permit Agreement, has acknowledged the same before me in my City and State aforesaid. She is personally known to me. GIVEN under my hand this day of , 2009. My Commission Expires: Registration No.: Notary Public 15 L& M, Inc. STATE OF VIRGINIA, CITY OF VIRGINIA BEACH, to -wit: President I, , a Notary Public in and for the City and State aforesaid, do hereby certify that GRANTEE., , of The Beach Pedal Cab Company, whose name as such is signed to the foregoing Permit Agreement, has acknowledged the same before me in my City and State aforesaid. He/she is personally known to me or has produced as identification. GIVEN under my hand this day of , 2006. My Commission Expires: Registration No.: Approved as to Content: Convention & Visitor's Bureau [C1 Notary Public Approved as to Legal Sufficiency City Attorney's Office Z CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance authorizing the City Manager to execute two leases for five years or less with PIN Ministry ("PIN") for the use of two (2) residential properties located at 457 Rudder Road and 461 Rudder Road MEETING DATE: May 12, 2009 ■ Background: PIN Ministry ("PIN"), a Virginia non -stock corporation and charitable organization that provides housing for the homeless, would like to lease two (2) residential properties from the City of Virginia Beach. The properties are located at 457 Rudder Road (GPIN 2417-17-4049) and 461 Rudder Road (GPIN 2417-17-4174) (collectively, the "Properties"). PIN proposes to use the Properties as affordable housing for homeless families. PIN is a faith -based organization, but it will not require tenants in the Properties to participate in religious services or claim membership in a religious denomination. The Properties were acquired by the City through the APZ-1 Acquisition Program and are improved with residential structures in good condition. ■ Considerations: The Properties are adjacent to the buffer for the Southeastern Parkway. City staff recommends leasing the Properties until the alignment for the parkway is determined, to avoid selling City -owned sites that might be needed for future road improvements. Additionally, having the houses occupied will prevent vandalism and vagrants. PIN will noise -attenuate and maintain the Properties, which will relieve the City of the obligation to maintain the Properties during the term of the leases. Maintenance savings to the City are estimated to be a minimum of $630 per year for each house. Each lease would be for nominal rent ($1.00/year), and for a term of one (1) year with four (4) one-year renewal options. ■ Public Information: Advertisement of City Council Agenda. Advertisement of the Public Hearing. ■ Alternatives: Approve terms of proposed leases as presented, alter terms of the proposed leases, or decline to lease the Properties. ■ Recommendations: Approval ■ Attachments: Ordinance Summary of Terms Location map Recommended Action: Approval Submitting Department/Agency: Management Sg;s-rFacilities Management Office City Managerri l ,'�sdb)A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE TWO LEASES FOR FIVE YEARS OR LESS WITH PIN MINISTRY ("PIN") FOR THE USE OF TWO (2) RESIDENTIAL PROPERTIES LOCATED AT 457 RUDDER ROAD AND 461 RUDDER ROAD WHEREAS, the City of Virginia Beach (the "City") is the owner of those certain parcels of land and the residences thereon located at 457 Rudder Road (GPIN 2417-17-4049) and 461 Rudder Road (GPIN 2417-17-4174) and more particularly described on Exhibit "A" attached hereto (the "Properties"); WHEREAS, PIN Ministry ("PIN") has requested to lease the Properties for $1.00 per year each, and will perform all required maintenance; WHEREAS, each lease will be for a term of one year, with four (4) one-year renewal periods. WHEREAS, PIN would like to enter into formal leases with the City for the Properties in accordance with the Summary of Terms attached hereto as Exhibit 9,B". WHEREAS, the Properties will be utilized for affordable housing for PIN program recipients and for no other purpose; WHEREAS, PIN shall not require tenants it places in the Properties to participate in any religious services nor maintain membership in any religious denomination; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City Manager is hereby authorized to execute two (2) leases, each for a term of one year, with four (4) one-year renewal options, between PIN and the City, for the Properties in accordance with the Summary of Terms attached hereto and such other terms and conditions deemed necessary and sufficient by the City Manager and in a form deemed satisfactory by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia on the day of , 2009 CAI 1008 April 17, 2009 R-1 V:\applications\citylawprod\cycom32\Wpdocs\D008\P007\00008732.DOC APPROVED AS TO LEGAL SUFFICIENCY AND FORM Signat" re APPROVED AS TO CONTENT Signature /), w S 'l•r Depart ent EXHIBIT "A" LEGAL DESCRIPTION FOR LEASES FOR PIN MINISTRY 457 Rudder Road ALL THAT certain lot, piece or parcel of land, with the buildings and improvements thereon, situate, lying and being in the City of Virginia Beach, Virginia being known, numbered and designated as Lot 46, as shown on that certain plat entitled, Subdivision "Cecil Terrace — Lots No. 27 through No. 53 (a part of Lot #33, Oceana Gardens)", which said plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 23, at page 49. IT BEING the same property conveyed to the City of Virginia Beach by deed from David M. Gross and Judith L. Gross dated April 11, 2008 and recorded in the aforesaid Clerk's Office as Instrument Number 20080425000478730. 461 Rudder Road ALL THAT certain lot or parcel of land, lying in the City of Virginia Beach, Virginia, and known, numbered and designated as Lot 47, as shown on that certain plat entitled "Cecil Terrace Lots No. 27 thru No. 53 (a pat of Lot #33, Oceana Gardens)", dated October 15, 1948 and made by W.B. Gallup, County Surveyor, recorded in the Clerk's Office of the Circuit court of the City of Virginia Beach, Virginia, in Map Book 23, at Page 49. (Also see Map Book 7, at page 189). IT BEING the same property conveyed to the City of Virginia Beach by Deed from Kimberly A. Davis (formerly Kimberly A. Monroe), dated August 22, 2008, and duly recorded in the aforesaid Clerk's Office as Instrument Number 20080822000998370. EXHIBIT "B" SUMMARY OF TERMS LESSOR: City of Virginia Beach LESSEE: PIN Ministry ("PIN"), a Virginia non -stock corporation PREMISES: Two (2) residential properties • 457 Rudder Road (GPIN: 2417-17-4049) • 461 Rudder Road (GPIN: 2417-17-4174) TERM: May 15, 2009 through May 14, 2010, with 4 one-year renewal options RENT: $1.00 per year RIGHTS AND RESPONSIBILITIES OF LESSEE (as to each lease): • Will use the premises for affordable housing for homeless families and for no other purpose. o At no time shall more than one (1) family reside in each dwelling. • Will sound -attenuate the Premises at its expense. • Will make repairs needed to bring property up to code compliance, but shall not otherwise modify the Premises without prior approval from City. Will keep, repair, and maintain the Premises at its expense. • Will maintain commercial general liability insurance coverage with policy limits of not less than one million dollars ($1,000,000) combined single limits per occurrence. Lessee shall provide a certificate evidencing the existence of such insurance. • Will comply with all applicable laws, ordinances, and regulations in the performance of its obligations under the Lease. RESTRICTIONS: PIN shall not require the families residing at the leased premises to participate in any religious services nor claim membership in any religious denomination. TERMINATION: The City may terminate each lease at any time without cause upon thirty (30) days' written notice. -u e � _ .. n__ g Q g I » ■ & ; ƒ © - w a R . \� { 3 t \ § E } ET o § c UAMLIIA UK K � jQ 7s> CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance authorizing the City Manager to execute a lease for five years or less with the Virginia Beach Community Development Corporation for the use of a residential property located at 1409 Old Virginia Beach Road MEETING DATE: May 12, 2009 ■ Background: Virginia Beach Community Development Corporation ("VBCDC") would like to lease the residential property located at 1409 Old Virginia Beach Road (GPIN 2417-17-9326) (the "Property") from the City of Virginia Beach to be used as a single-family home. The dwelling will be used for affordable rental housing for Virginia Beach residents. The Property was acquired by the City through the APZ-1 Acquisition Program and is improved with a residential structure in good condition. ■ Considerations: It is preferred that the City retain ownership because the Property lies in the current alignment of the Southeastern Parkway. Further, having the house occupied will prevent vagrants and vandalism and relieve the City of the obligation to maintain the Property during the term of the lease. Maintenance savings to the City are estimated to be a minimum of $630 per year. VBCDC will perform renovations necessary to sound attenuate the Property and bring it up to code. This lease would be for $1.00 per year for a term of one (1) year, with four (4) one-year renewals. Other terms are set forth in the attached Summary of Terms. ■ Public Information: Advertisement of City Council Agenda. Advertisement of Public Hearing. ■ Alternatives: Approve terms of proposed lease as presented, alter terms of the proposed lease, or decline to lease the Property. ■ Recommendations: Approval ■ Attachments: Ordinance Summary of Terms Location map Recommended Action: Approvalk Submitting Department/Agen y: Managene i..6 City Manag4zi�Z tak ces / Facilities Management Office 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE FOR FIVE YEARS OR LESS WITH THE VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION FOR THE USE OF A RESIDENTIAL PROPERTY LOCATED AT 1409 OLD VIRGINIA BEACH ROAD WHEREAS, the City of Virginia Beach (the "City") is the owner of that certain parcel of land and the residence located thereon located at 1409 Old Virginia BE�ach Road (GPIN 2417-17-9326) and more particularly described on Exhibit "A" attached hereto (the "Property"); WHEREAS, the Virginia Beach ("VBCDC") has requested to lease the perform all required maintenance; Community Development Corporation property for $1.00 per year, and will WHE=REAS, the VBCDC would like to enter into a formal lease with the City for the, Property pursuant to the Summary of Terms attached hereto as Exhibit "B"; WHEREAS, the Property will be utilized for affordable housing for Virginia Beach residents and for no other purpose; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City Manager is hereby authorized to execute a lease for a term of one year, with the option to renew for four one-year terms, between the VBCDC and the City, for the Property in accordance with the Summary of Terms attached hereto and such other terms and conditions deemed necessary and sufficient by the City Manager and in a form deemed satisfactory by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia on the day of , 2009 CA 11009 4/16/2009 R-1 V:\applications\cit,lawprod\cycom32\Wpdocs\D008\P007\00008749.DOC APPROVED AS TO LEGAL S FICIENCY AND FORM Cityto ney APPROVED AS TO CONTENT /"-�) .,e I Z/_ Facilities Wnageme Exhibit "A" Legal Description for 1409 Old Virginia Beach Road, Virginia Beach, VA 23454 ALL THAT certain lot, piece or parcel of land, with the buildings and improvements thereon, situate, lying and being in the Lynnhaven Borough in the City of Virginia Beach, Virginia, designated as the property of J. Hunter, Jr., on the plat entitled "Street Dedication, Brockville - Extended, Site No. 25, at Oceana Gardens, Lynnhaven Borough, Virginia Beach, Virginia," made by W.B. Gallup, County Surveyor, dated July 20, 1964 and recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 61, at page 45, and more particularly described as follows: BEGINNING at a point on the south side of Old Virginia Beach Road and Gary Avenue; thence in an easterly direction along the southern side of the Old Virginia Beach Road 91.6 feet, more or less, to a point; thence S 7° 30'00" W 8.8 feet; thence continuing in the same course 165.05 feet to a point at the dividing line between the property shown as Lot "G" on said plat; thence N 82030'00" W 91.6 feet to the easterly line of Gary Avenue; thence N 7°30'00" E 162.3 feet along the easterly side of Gary Avenue to the southern side of Old Virginia Beach Road, to the point of beginning. IT BEING the same property conveyed to the City of Virginia Beach by Deed from Sheila Ross dated September 29, 2008 and recorded in the aforesaid Clerk's Office as Instrument Number 20081010001188270. EXHIBIT "B" SUMMARY OF TERMS LESSOR: City of Virginia Beach ("City") LESSEE: Virginia Beach Community Development Corporation ("VBCDC"') PREMISES: A residential property: • 1409 Old Virginia Beach Road (GPIN: 2417-17-9326) TERM: July 1, 2009, through June 30, 2010, with 4 one-year renewal options RENT: $1.00 per year RIGHTS AND RESPONSIBILITIES OF VBCDC: • Will use the Premises for affordable rental housing for Virginia Beach residents and for no other purpose. At no time shall more than one family reside in the dwelling unit. • Will sound -attenuate the Premises at its expense. • Will make repairs needed to bring property up to code compliance, but shall not otherwise modify the Premises without prior approval from City. • Will keep, repair, and maintain the Premises at its expense. • Will maintain commercial general liability insurance coverage with policy limits of not less than one million dollars ($1,000,000) combined single limits per occurrence. VBCDC shall provide a certificate evidencing the existence of such insurance. • Will comply with all applicable laws, ordinances, and regulations in the performance of its obligations under the lease. TERMINATION: The City may terminate the lease at any time without cause upon thirty (30) days' written notice. NU BE, �aw s,,,yRGyL� ' 2 CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance authorizing the City Manager to Execute a Lease for Five Years with Timberlake Community Association, Inc. for 24,859 Square Feet of City Property adjacent to South Independence Blvd. at Foxwood Drive MEETING DATE: May 12, 2009 ■ Background: The City owns a 24,859 -square -foot parcel of land adjacent to S. Independence Blvd., at Foxwood Drive (the "Property"). The City previously entered into a 5 - year lease for the Property with Timberlake Community Association, Inc. ("Timberlake"). The previous lease has expired, and Timberlake has requested that the City enter into a new lease for 5 years. Timberlake uses the Property for the storage of major recreational equipment for its members, and it would continue to do so during the term of the new lease. ■ Considerations: The term of the new lease would be five years, commencing on May 1, 2009, and expiring April 30, 2014. In the event the City needs the Property for any public purpose, the City has the right to terminate the Lease by giving Timberlake sixty (60) days' prior written notice. For more specific terms, see attached Summary of Terms. ■ Public Information: Advertisement of Public Hearing in The Virginian -Pilot Advertisement of City Council Agenda ■ Alternatives: Approve Lease as presented, change conditions of the Lease, or deny the Lease. ■ Recommendations: Approval ■ Attachments: Ordinance, Summary of Terms, and Location Map Recommended Action: Approval Submitting Department/Agency: Management SFacilities Management O ' e City Manag 79W� I AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR FIVE 3 YEARS WITH TIMBERLAKE COMMUNITY 4 ASSOCIATION, INC. FOR 24,859 SQUARE FEET 5 OF CITY PROPERTY ADJACENT TO SOUTH 6 INDEPENDENCE BLVD. AT FOXWOOD DRIVE 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 WHEREAS, the City of Virginia Beach (the "City') owns 24,859 square feet of City property located adjacent to S. Independence Blvd. at Foxwood Drive (Part of GPI N: 1476-84-4100) (the "Property'); WHE=REAS, Timberlake Community Association, Inc. ("Timberlake") has been leasing the Property from the City pursuant to a lease dated March 25, 2004; WHE=REAS, the term of the previous lease has expired, and Timberlake desires to Enter into a new lease for an additional 5 -year period commencing on May 1, 2009 and expiring on April 30, 2014; and WHE=REAS, Timberlake will continue to use the Property for storage of major recreational equipment for its association members; NOVV THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the City Manager is hereby authorized to execute a lease for five years with Timberlake Community Association, Inc. for 24,859 square feet of land located adjacent to South Independence Boulevard at Foxwood Drive, in accordance with the Summary of Terms, attached hereto as Exhibit A, and such other terms, conditions or modifications as may be acceptable to the City Manager and in a form deemed satisfactory by the City Attorney . Adopted by the Council of the City of Virginia Beach, Virginia on the day of , 2009. APPROVED AS TO LEGAL SUFFICIENCY AND FORM r City Attorn CA11014 V:`applications\citylawprod',cycom32\Wpdocs Ml3\'W4\00000942.DOC R-1 May 12, 2009 APPROVED AS TO CONTENT Manage en Services — Facilities Management EXHIBIT A SUMMARY OF TERMS Lease With Timberlake Community Association for a 24,859 square foot City -owned Lot located adjacent to South Independence Blvd at Foxwood Drive LESSOR: City of Virginia Beach LESSEE: Timberlake Community Association, Inc. PREMISES: 24,859 sq. ft. lot located adjacent to South Independence Blvd. at Foxwood Drive, Virginia Beach, Virginia (Part of GPIN 1476-84-4100) TERM: 5 years: May 1, 2009 through April 30, 2014 RENT: YEAR LEASE PERIOD ANNUAL BASIC RENT 1 05/01/09 - 04/30/09 $ 677.69 2 05/01/10 - 04/30/11 $ 698.02 3 05/01/11 - 04/30/12 $ 718.96 4 05/01/12 - 04/30/13 $ 740.53 5 05/01/13 - 04/30/14 $ 762.75 RIGHTS AND RESPONSIBILITIES OF LESSEE: • Use Premises solely for storage of major recreational equipment for its association member. • Maintain Premises. • Purchase commercial general liability insurance in an amount of not less than $1,000,000 combined single limits. RIGHTS AND RESPONSIBILITIES OF CITY: • Reserve the right to enter upon the Premises at any time without notice to Timberlake. TERMINATION: In the event the Premises is needed for a public purpose, City may terminate the Lease by giving sixty (60) days' written notice. \\vbgov.com\dfsl \applications\citylawprod\cycom32\W pdocs\D029\PO05\00010938.DOC M -M Jr - Iv, LA r ilk M -M Jr - Iv, LA r �Nu CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance authorizing the City Manager to Execute a Lease for Five Years with Timberlake Community Association, Inc. for 24,859 Square Feet of City Property adjacent to South Independence Blvd. at Foxwood Drive MEETING DATE: May 12, 2009 ■ Background: The City owns a 24,859 -square -foot parcel of land adjacent to S. Independence Blvd., at Foxwood Drive (the "Property"). The City previously entered into a 5 - year lease for the Property with Timberlake Community Association, Inc. ("Timberlake"). The previous lease has expired, and Timberlake has requested that the City enter into a new lease for 5 years. Timberlake uses the Property for the storage of major recreational equipment for its members, and it would continue to do so during the term of the new lease. ■ Considerations: The term of the new lease would be five years, commencing on May 1, 2009, and expiring April 30, 2014. In the event the City needs the Property for any public purpose, the City has the right to terminate the Lease by giving Timberlake sixty (60) days' prior written notice. For more specific terms, see attached Summary of Terms. ■ Public Information: Advertisement of Public Hearing in The Virginian -Pilot Advertisement of City Council Agenda ■ Alternatives: Approve Lease as presented, change conditions of the Lease, or deny the Lease. ■ Recommendations: Approval ■ Attachments: Ordinance, Summary of Terms, and Location Map Recommended Action: Approval Submitting Department/Agency: Management SFacilities Management O e City Manag � �.,i.Y� �/ �,,pz, I AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR FIVE 3 YEARS WITH TIMBERLAKE COMMUNITY 4 ASSOCIATION, INC. FOR 24,859 SQUARE FEET 5 OF CITY PROPERTY ADJACENT TO SOUTH 6 INDEPENDENCE BLVD. AT FOXWOOD DRIVE rl 8 WHEREAS, the City of Virginia Beach (the "City") owns 24,859 square 9 feet of City property located adjacent to S. Independence Blvd. at Foxwood Drive 10 (Part of GPIN: 1476-84-4100) (the "Property"); 11 12 WHEREAS, Timberlake Community Association, Inc. ("Timberlake") has 13 been leasing the Property from the City pursuant to a lease dated March 25, 14 . 2004; 15 16 WHEREAS, the term of the previous lease has expired, and Timberlake 17 desires to enter into a new lease for an additional 5 -year period commencing on 18 May 1, 2009 and expiring on April 30, 2014; and IS 20 WHEREAS, Timberlake will continue to use the Property for storage of 21 major recreational equipment for its association members; 22 23 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE 24 CITY OF VIRGINIA BEACH, VIRGINIA: 25 26 That the City Manager is hereby authorized to execute a lease for five 27 years with Timberlake Community Association, Inc. for 24,859 square feet of land 28 located adjacent to South Independence Boulevard at Foxwood Drive, in 29 accordance with the Summary of Terms, attached hereto as Exhibit A, and such 30 other terms, conditions or modifications as may be acceptable to the City 31 Manager and in a form deemed satisfactory by the City Attorney. 32 33 Adopted by the Council of the City of Virginia Beach, Virginia on the 34 day of , 2009. APPROVED AS TO LEGAL APPROVED AS TO CONTENT SUFFICIENCY AND FORM City Attorn Manage en Services — Facilities Management CA11014 V:`applications\citylawprod\cyc om32\ Wpdocs\D013\P004\00000942.DOC R-1 May 12, 2009 EXHIBIT A SUMMARY OF TERMS Lease With Timberlake Community Association for a 24,859 square foot City -owned Lot located adjacent to South Independence Blvd at Foxwood Drive LESSOR: City of Virginia Beach LESSEE: Timberlake Community Association, Inc. PREMISES: 24,859 sq. ft. lot located adjacent to South Independence Blvd. at Foxwood Drive, Virginia Beach, Virginia (Part of GPIN 1476-84-4100) TERM: 5 years: May 1, 2009 through April 30, 2014 RENT: YEAR LEASE PERIOD ANNUAL BASIC RENT 1 05/01/09 - 04/30/09 $ 677.69 2 05/01/10 - 04/30/11 $ 698.02 3 05/01/11 - 04/30/12 $ 718.96 4 05/01/12 - 04/30/13 $ 740.53 5 05/01/13 - 04/30/14 $ 762.75 RIGHTS AND RESPONSIBILITIES OF LESSEE: • Use Premises solely for storage of major recreational equipment for its association member. Maintain Premises. • Purchase commercial general liability insurance in an amount of not less than $1,000,000 combined single limits. RIGHTS AND RESPONSIBILITIES OF CITY: • Reserve the right to enter upon the Premises at any time without notice to Timberlake. TERMINATION: In the event the Premises is needed for a public purpose, City may terminate the Lease by giving sixty (60) days' written notice. \\vbgov.com\dfsl \applications\citylawprod\cycom32\Wpdocs\D029\P005\000t0938.DOC a u�� 9 CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An ordinance authorizing a lease agreement with Jody's Inc. for the use of approximately forty-eight (48) square feet of real property for an outdoor seating area. MEETING DATE: May 12, 2009 Background: The City has been approached by Jody's, Inc. ("Jody's"), a retailer selling popcorn, confections and gifts, about establishing an outdoor seating area on approximately forty-eight (48) square feet of City -owned property immediately in front and under the roof -line of the Jody's store located at 205 Laskin Road, Virginia Beach, Virginia (the "Leased Area"). Jody's would be allowed to place tables and chairs in the Leased Area and be responsible for the maintenance of the Leased Area. The sale, service or consumption of alcohol in the Leased Area would be strictly forbidden, and Jody's would be required to comply with other regulations consistent with other outdoor seating areas throughout the City. Because the Leased Area is for the establishment of an outdoor seating area only (Jody's will not provide table service to the Leased Area), and because this property is not located in the right-of-way, this matter is being treated as a lease agreement and not as a cafe franchise. Jody's proposes to lease the Leased Area from the City for an initial term of one (1) year with four (4) optional one-year renewals. The renewals would be at Jody's option. Jody's would pay rent for use of the Leased Area at the rate of $720.00 for the first year of the agreement, with that amount increasing by three percent (3%) each successive year. Considerations: The proposed leasing of the Leased Area to Jody's has been endorsed by the City's Convention and Visitor's Bureau and would be consistent with other uses at the 31 Ocean Development. Should Council not authorize the request, Jody's would continue to operate their store at the 31 Ocean location. The City will have the right to terminate the lease, if necessary for a public purpose, upon sixty (60) days' notice to Jody's. Public Information: Advertisement of Public Hearing in The Virginian -Pilot Advertisement of City Council Agenda Attachments: Ordinance, Summary of Terms, Location Map Recommended Action: Adopt Ordinance Submitting Department/Agency: Convention and Visitors Bureau City Manager,':z k' - � -, 1 AN ORDINANCE AUTHORIZING A LEASE 2 AGREEMENT WITH JODY'S, INC. FOR THE 3 USE OF APPROXIMATELY FORTY-EIGHT 4 (48) SQUARE FEET OF REAL PROPERTY 5 FOR AN OUTDOOR SEATING AREA 6 7 WHEREAS, Jody's, Inc., a Virginia corporation, ("Jody's"), has approached the 8 City of Virginia Beach for permission to operate an outdoor seating area outside Jody's, 9 Inc. store located at 31 Ocean, 205 Laskin Road in the City of Virginia Beach; and 10 11 WHEREAS, the proposed outdoor seating area is approximately forty-eight (48) 12 square feet immediately outside and under the roof -line of the Jody's retail store 13 described above and is located on property owned by the City (the "Leased Area"); and 14 15 WHERAS, Jody's proposes to lease the Leased Area from the City for an initial 16 one-year term with four one-year optional renewals, at the option of Jody's; and 17 18 WHEREAS, the Leased Area would be used by Jody's as a seating area for their 19 customers; and 20 21 WHEREAS, the Convention and Visitors Bureau recommends that the City enter 22 into a lease agreement with Jody's in accordance with the Summary of Terms, attached 23 hereto. 24 25 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 26 VIRGINIA BEACH: 27 28 That the City Manager is hereby authorized to execute a lease agreement for a 29 one-year term, with four optional one-year renewals, between Jody's, Inc., a Virginia 30 corporation, and the City, for the Leased Area, as shows on Exhibit A, attached hereto, 31 and in accordance with the Summary of Terms, attached hereto as Exhibit B, and such 32 other terms, conditions or modifications as may be acceptable to the City Manager and 33 in a form deemed satisfactory by the City Attorney. 34 35 Adopted by the City Council of Virginia Beach, Virginia on this day 36 of May, 2009. Approved as to Content: Convention and Visitors Bureau CA11003 \\vbgov.com\dfsI\applications\ci tylawprod\cycom32\Wpdocs\D025\P004\00007348.DM R-1 May 12, 2009 Approved as to Legal Sufficiency: City Attorney's Office nr-ATION MAP 31ST STREET FYWIRIT R SUMMARY OF TERMS LICENSE FOR THE USE OF 48 SQUARE FEET OF CITY -OWNED REAL PROPERTY LEASOR : City of Virginia Beach LEASEE: Jody's, Inc., a Virginia corporation PREMISES: 48 square feet of real property located outside, straight under the roof -line, and in front of the space operated by Jody's, Inc., 205 Laskin Road, Virginia Beach, Virginia 23451. TERM: June 1, 2009 through May 31, 2010. RENEWAL: Four (4) optional one-year terms, at the option of Jody's. TERMINATION: City shall have right to terminate if necessary for a public purpose on sixty (60) days' notice. RENT: For the first year rent shall be: $750 per year. Renewal rent shall be as follows: First renewal rent shall be: $772.50 per year. Second renewal rent shall be: $795.68 per year. Third renewal rent shall be: $819.55 per year. Fourth renewal rent shall be:$844.19 per year. PROPOSED USE: Placement of tables and chairs for outdoor seating. RESTRICTIONS ON USE OF LICENSED AREA: • The sale, service, or use of alcohol in the Leased Area is strictly prohibited. • Any live or recorded music played in the Leased Area shall conform with the City's Cafe Guidelines for entertainment or live music. • Materials placed in Leased Area must be approved by the City and no logos other than Jody's, Inc. logo shall be permitted. • All itE:ms placed in the Leased Area must be removed each night at the close of business. No extraneous items such as menu boards, signs or portable heaters in the Leased Area shall be permitted. • Solicitation for tips or the posting or dissemination of printed material in the Leased Area is prohibited. \\vbgov.comWf 1\applications\citylawprod\cycom32\Wpdocs\D025\P004\00007349. DOC L. PLANNING Application of ROBERT BURKE for the Expansion of a Nonconforming Structure at 5504 Ocean Front Avenue re: additions of a second and third floor and to the existing detached garage (deferred by City Council on April 28, 2009). DISTRICT 5 — LYNNHAVEN RECOMMENDATION APPROVAL 2. Application of BEVERLY ARMSTRONG for the Expansion of a Nonconforming Structure at 7300 73rd Street to ADD a second floor addition (deferred by City Council on March 10, 2009). DISTRICT 5 — LYNNHAVEN RECOMMENDATION APPROVAL 3. Application of REFORMED BAPTIST CHURCH OF VIRGINIA BEACH for a Conditional Use Permit re a church at portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear property line (deferred by City Council on April 28, 2009). DISTRICT 7 - PRINCESS ANNE. RECOMMENDATION APPROVAL 4. Application of Christian House of Prayer Virginia, Inc., for a Conditional Use Permit re: religious services in an existing building at 333 Edwin Drive. DISTRICT 3 - ROSE HALL RECOMMENDATION: APPROVAL 4. Application of Ground Zero Church for a Conditional Use Permit to conduct religious services at 485 South Lynnhaven Road. DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 5. Application of Faith Temple Church for a Conditional Use Permit re: church within an existing retail center at 152-B South Plaza Trail. DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 6. Application of Harvey Orr for a Conditional Use Permit re: home occupation (designing and constructing custom made furniture) at 1545 Harbor View Cove. DISTRICT 1— CENTERVILLE TION AL 7. Ap»lication of Richmond 20MHZ, LLC., dba NTELOS for a Conditional Use permit re: communications tower at 3429 Clubhouse Road. DISTRICT 3 — ROSE HALL RECOMMENDATION APPROVAL 8. Application of Euclid Properties, LLC for a Change of Zoning District from R -5D Residential Duplex to Conditional B-2 Community Business District re: constructing an addition to an existing office building at 4756 Euclid Road. DISTRICT 2 - KEMPSVILLE RECOMMENDATION APPROVAL 9. Ordinance to AMEND §201 of the City Zoning Ordinance (CZO) re: setbacks for front porches and handicapped ramps RECOMMENDATION APPROVAL 10. Ord'.inance to AMEND § 111 and §225.1 of the City Zoning Ordinance (CZO) re: definition and requirements pertaining to the use of Bed and Breakfast Inns RECOMMENDATION APPROVAL 11. Application of Church Point Manor, LLC., for a Modification of Condition Nos. 1 and 2 re: number of individuals in dining area and number of lodging rooms (approved by City Council on January 12, 1993 and March 12, 1996) at 4001 Church Point Road DISTRICT 4 - BAYSIDE RECOMMENDATION APPROVAL NOTICE OF PUBLIC HEARING Leach City Ccurcil �.viil meet in {he Chamber at City Hall, Municipal Center, J01 Ce jr .-;Ouse -Dr4e, Tuesday, May 12, 2009, at 6:00 P.M. The fci:0wil't .ipphcat cns will be heard: ROSE HALL DISTRICT P .1-mcnri 2Cmhz, LLC, DBA nTelos, Appl cat on: Corditieral t. !-,,e Permit For a c: ^,r,u iC�it:ons lower at 3429 Clubnouse Rcad. Ch-istiar Church of Prayer Virginia, inc. Applicat,on: Condit'orai Use Permit for r':.ligious services at 333 Edwin Drive. Tempe Church App";cation: Conditional Use Permit for a church at 152-8 South P aza T:,ai!. Ground .'_era Church Application: Conditional Use Permit for a religious facility at 485 �.3-ith L;ornhaven Rcad. Deferred on March 11. KEMPSVILLE DISTRICT € uclid Properties, LLC ,Application: Change of Zoning District Classification. R-51) «aids rtial Duplex to Conditional B-2 Community Business at 4756 Euclid Road. Comprehensi� e Plan: Pembroke Strategic Growth Area. Purpose: office building. CENTERVILLE DISTRICT Haney Orr Application: Conditional Use Permit for a home occupation (woodworking,, ,3t 1545 Harhor View Cove. SAYSIDE DISTRICT Church Point Manor, LLC Application: Modification of Conditions for a Use Permit :approved on "Murch 12, 1996) for a Bed and Breakfast Inn at 4001 Church Point ;cad. CITY OF VIRGINIA BEACH Ordinance to annend the Definition of Bed and Breakfast Inns and parking, size, food service, location and Other rF.qu rements pertaining to such use. Ordinance to amend Section 201 of the City Zoning Ordinance pertaining to setbacks for front porches and handicapped ramps. LYNNHAVEN DISTRICT Gm,erly W. Arms rono Applica*ion: EVarsion of a Nonconforming Use at 7300 73rd Street. 1W interested &izens are "m,ted to attend. Ruth Hodges Fraser, MMC C Cierk ��op,es of the propose: ordinances, resolutions and amendments are on file and may o expr.nined n the Department of Planning or online at http, /www-vbgov_�gm; ec For inforrnation call 385-4621. 'f ;cL <,re .physically disabled or visually Impaired and need assistance at this ,rteting, please r it the CITY CLERK'S OFFICE at 385.4303. con AQn,' 26 & "Aay 3, 2CC9 20097C37 -54- Item V -LI. PLANNING ITEM # 58756 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED to May 12, 2009, the application of ROBERT BURKE for the Expansion of a Nonconforming Structure at 5504 Ocean Front Avenue re a second and third,floor addition and an addition to the existing detached garage. RESOLUTION UPON APPLICATION OF ROBERT BURKE AUTHORIZING THE ENLARGEMENT OF A NONCONFORMING STRUCTURE. 5504 OCEAN FRONTA VENUE Resolution upon application of ROBERT BURKE authorizing the enlargement of a Nonconforming Structure, on property located at 5504 Ocean Front Avenue (GPIN 24198065250000). DISTRICT 5 — LYNNHAVEN Voting: 11-0 (By Consent) Council Members Voting Aye.- Glenn ye: Glenn R. Davis. William R "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April 28, 2009 ►. u 16 A4Q: fl-11,0117"ll, VIM 7l a) CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: A Resolution authorizing the Enlargement of a Nonconforming Structure on property located at 5504 Ocean Front Avenue for Robert Burke. LYNNHAVEN DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant requests alterations to nonconforming structures, a single-family dwelling, and a detached garage. The structures are nonconforming because they do not meet the required building setbacks in the R -5R Residential Resort District. The applicant indicates the home was constructed in the 1940's by the Eisenhower family. City real estate records for the site only go back to 1953, but do indicate improvements were on the site at that time. At the request of the applicant, the City Council deferred this item during the April 28 meeting. ■ Considerations: The applicant proposes a second and third floor addition to the existing dwelling. The second floor addition will be in line with the existing building walls, which all but one side meets the required setbacks in the R -5R District. The northern side yard, at 5.7 feet, does not meet the required 8 -foot setback for side yards in the R -5R Resort Residential District. The proposed addition, however, will not encroach any further into the required setbacks than that which currently exists, and the third floor addition will actually meet the currently required building setbacks. Additionally, the applicant desires to make a small addition to the existing detached garage. Currently the existing garage is situated 2 -feet from Ocean Front Avenue, 3 -feet from the northern property line and 27 -feet from the southern property line. The current building setbacks for accessory structures in the R -5R Residential Resort District is 20 -foot front yard setback and 8 -foot side yard setback. The proposed addition is on the northwest corner of the existing building and will not meet the required building setbacks. Again, the proposed addition will not encroach any further into the required setbacks than that which currently exists. As the northern side yard setback does not meet the current zoning regulations, the setback is nonconforming, and the additions of the second and third floor to the main structure and the addition to the detached garage require City Council approval. Robert Burke Page 2 of 2 ■ Recommendations: The proposed additions are reasonable, will have a minimal impact, and should be as appropriate to the district as the existing non -conforming structures. The request, therefore, is acceptable with the conditions below. 1. The proposed additions shall substantially conform to the submitted site development plan entitled "NON -CONFORMING USE EXHIBIT FOR BiURKE RESIDENCE, #5504 OCEAN FRONT AVENUE", dated March 17, 2009, and prepared by WPL Landscape Architects, Land Surveyors, Engineers. Said plan has been exhibited to the City of Virginia Beach City Council and is on file in the Planning Department. 2. The proposed additions shall substantially conform to the submitted building elevations entitled "SCHEMATIC DESIGN FOR ADDITION TO BURKE RESIDENCE, VIRGINA BEACH, VIRGINIA", dated March 16, 2009, and prepared by Lyall Design Architects. Said elevations have been exhibited to the City of Virginia Beach City Council and are on file in the Planning Department. ■ Attachments: Staff Review Disclosure Statement Resolution Location Map Recommended Action: Approval Submitting Department/Agency: Planning Department City Manager 1 A RESOLUTION AUTHORIZING THE 2 ENLARGEMENT OF A NONCONFORMING 3 STRUCTURE ON PROPERTY LOCATED AT 4 5504 OCEAN FRONT AVENUE 5 6 WHEREAS, Robert Burke (hereinafter the "Applicant") has made application to 7 the City Council for authorization to enlarge a nonconforming structure by making 8 additions to a single-family dwelling and garage that are nonconforming as to setbacks 9 on a lot or parcel of land having the address of 5504 Ocean Front Avenue, in the R -5R 10 Residential Zoning District; 11 12 WHEREAS, the said structures are nonconforming, as the dwelling and the 13 garage do not meet the setback requirements for the R -5R Residential Zoning District 14 and were constructed prior to the adoption of the applicable regulations; and 15 16 WHEREAS, pursuant to Section 105 of the City Zoning Ordinance, the 17 enlargement of a nonconforming structure is unlawful in the absence of a resolution of 18 the City Council authorizing such action upon a finding that the proposed structure, as 19 enlarged, will be equally appropriate or more appropriate to the zoning district than is 20 the existing structure; 21 22 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 23 VIRGINIA BEACH, VIRGINIA: 24 25 That the City Council hereby finds that the proposed structures, as enlarged, will 26 be equally appropriate to the district as are the existing structures. 27 28 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA 29 BEACH, VIRGINIA: 30 31 That the enlargement of the nonconforming structures is hereby authorized, upon 32 the following conditions: 33 34 1. The proposed additions shall substantially conform to the submitted site 35 development plan entitled "NON -CONFORMING USE EXHIBIT FOR 36 BURKE RESIDENCE, #5504 OCEAN FRONT AVENUE", dated March 17, 37 2009, and prepared by WPL Landscape Architects, Land Surveyors, 38 Engineers. Said plan has been exhibited to the City of Virginia Beach City 39 Council and is on file in the Planning Department. 40 41 2. The proposed additions shall substantially conform to the submitted 42 building elevations entitled "SCHEMATIC DESIGN FOR ADDITION TO 43 BURKE RESIDENCE, VIRGINA BEACH, VIRGINIA", dated March 16, 44 2009, and prepared by Lyall Design Architects. Said elevations have been 45 exhibited to the City of Virginia Beach City Council and are on file in the 46 Planning Department. 47 Adopted by the Council of the City of Virginia Beach, Virginia, on the day 48 of 12009. APPROVED AS TO CONTENT CA11116 R-1 April 13, 2009 APPROVED AS TO LEGAL SUFFICIENCY: f City Attorney's Office REQUEST: Enlargement of Nonconforming Structures ADDRESS / DESCRIPTION: 5504 Ocean Front Avenue GPIN: ELECTION DISTRICT: 24198065250000 LYNNHAVEN ROBERT BURKE April 28, 2009 City Council Meeting STAFF PLANNER: Faith Christie SITE SIZE: AICUZ: 8,400 square feet Less than 65 dB DNL The applicant requests alterations to nonconforming SUMMARY OF REQUEST structures, a single-family dwelling and a detached garage. The structures are nonconforming because they do not meet the required building setbacks in the R -5R Residential Resort District. The applicant indicates the home was constructed in the 1940's by the Eisenhower family. City real estate records for the site only go back to 1953, but do indicate improvements were on the site at that time. The applicant proposes a second and third floor addition to the existing dwelling. The second floor addition will be in line with the existing building walls, which as shown in the table below (5.7 feet) does not meet the required 8 -foot setback for side yards in the R -5R Resort Residential District on the northern side of the structure. The proposed addition, however, will not encroach any further into the required setbacks than that which currently exists, and the third floor addition will actually meet the currently required building setbacks. ROBERT BURKE April 28, 2009 City Council Meeting Page 1 Additionally, the applicant desires to make a small addition to the existing detached garage. Currently the existing garage is situated 2 -feet from Ocean Front Avenue, 3 -feet from the northern property line and 27 - feet from the southern property line. The current building setbacks for accessory structures in the R -5R Residential Resort District is 20 -foot front yard setback and 8 -foot side yard setback. The proposed addition is on the northwest corner of the existing building and will not meet the required building setbacks. Aga n, the proposed addition will not encroach any further into the required setbacks than that which currently exists. As the northern side yard setback does not meet the current zoning regulations, the setback is nonconforming, and the additions of the second and third floor to the main structure and the addition to the detached garage require City Council approval. LAND USE AND ZONING INFORMATION EXISTING LA14D USE: A single-family dwelling, detached garage, and gazebo SURROUNDING LAND North: . A single-family dwelling / R -5R Residential Resort District. USE AND ZONING: South: . A single-family dwelling / R -5R Residential Resort District. East: . The beach and the Atlantic Ocean West: . Ocean Front Avenue Across Ocean Front Avenue are single-family dwellings / R -5R Residential Resort District. NATURAL RESOURCE AND The site is located along the dune line adjacent to the beach and the CULTURAL FEATURES: Atlantic Ocean. There is no impact to City services. IMPACT ON CITY SERVICES ROBERT BURKE April 28, 2009 City Council Meeting Page 2 Existing R-511 Requirement Proposed Front Yard Sotback 30.0 feet 20.0 feet 30.0 feet Side Yard Setback 12.6 feet 8.0 feet 12.6 feet southern side Side Yard Setback 5.7 feet 8.0 feet 5.7 feet northern Side Setback adjacent to 56.1 feet I 30.0 feet T 56.1 feet ocean Additionally, the applicant desires to make a small addition to the existing detached garage. Currently the existing garage is situated 2 -feet from Ocean Front Avenue, 3 -feet from the northern property line and 27 - feet from the southern property line. The current building setbacks for accessory structures in the R -5R Residential Resort District is 20 -foot front yard setback and 8 -foot side yard setback. The proposed addition is on the northwest corner of the existing building and will not meet the required building setbacks. Aga n, the proposed addition will not encroach any further into the required setbacks than that which currently exists. As the northern side yard setback does not meet the current zoning regulations, the setback is nonconforming, and the additions of the second and third floor to the main structure and the addition to the detached garage require City Council approval. LAND USE AND ZONING INFORMATION EXISTING LA14D USE: A single-family dwelling, detached garage, and gazebo SURROUNDING LAND North: . A single-family dwelling / R -5R Residential Resort District. USE AND ZONING: South: . A single-family dwelling / R -5R Residential Resort District. East: . The beach and the Atlantic Ocean West: . Ocean Front Avenue Across Ocean Front Avenue are single-family dwellings / R -5R Residential Resort District. NATURAL RESOURCE AND The site is located along the dune line adjacent to the beach and the CULTURAL FEATURES: Atlantic Ocean. There is no impact to City services. IMPACT ON CITY SERVICES ROBERT BURKE April 28, 2009 City Council Meeting Page 2 EVALUATION AND RECOMMENDATION Staff recommends approval of this request. The Comprehensive Plan Map designates this site as being within the Primary Residential Area — North Virginia Beach Site 11. The North Virginia Beach community encompasses a predominantly residential area located on both sides of Atlantic Avenue from 42nd Street to 89th Street. It is characterized by a compact arrangement of single-family and duplex units with much of the land zoned Residential Resort District (R-5R).The land use planning policies and principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value, and aesthetic quality of the stable neighborhoods located in this area. The request for alteration and expansion of this nonconforming use is compatible with the Comprehensive Plan's recommendations for this area. In sum, the proposed additions are reasonable, will have a minimal impact, and should be as appropriate to the district as the existing non -conforming structures. The request, therefore, is acceptable with the conditions below. CONDITIONS 1. The proposed additions shall substantially conform to the submitted site development plan entitled "NON -CONFORMING USE EXHIBIT FOR BURKE RESIDENCE, #5504 OCEAN FRONT AVENUE", dated March 17, 2009, and prepared by WPL Landscape Architects, Land Surveyors, Engineers. Said plan has been exhibited to the City of Virginia Beach City Council and is on file in the Planning Department. 2. The proposed additions shall substantially conform to the submitted building elevations entitled "SCHEMATIC DESING FOR ADDITION TO BURKE RESIDENCE, VIRGINA BEACH, VIRGINIA", dated March 16, 2009, and prepared by Lyall Design Architects. Said elevations have been exhibited to the City of Virginia Beach City Council and are on file in the Planning Department. NOTE. Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to ROBERT BURKE April 28, 2009 City Council Meeting Page 3 1 1 { NY3JO laNV71 Y I MAY J1VOb.4 NY3D0 s PROPOSED ADDITIONS ROBERT BURKE April 28, 2009 City Council Meeting Page 5 44 as � t e� t� i ni;3• .e x F 4E� % E� Sb -i i �§ aa yy}} Yy■CCee a3 (0'[i�[iii s PROPOSED ADDITIONS ROBERT BURKE April 28, 2009 City Council Meeting Page 5 O W = U Z FIRST FLOOR PLAN ROBERT BURKE April 28, 2009 City Council Meeting Page 6 SECOND FLOOR PLAN ROBERT BURKE April 28, 2009 City Council Meeting Page 7 THIRD FLOOR PLAN ROBERT BURKE April 28, 2009 City Council Meeting Page 8 N _0 F a W r W x 0 z N Z 0 H a W W G W N O; AL 0 PROPOSED BUILDING ELEVATION ROBERT BURKE April 28, 2009 City Council Meeting Page 9 2 W z V o_ Z = o - c W O O y x Z U � W W u W z U N PROPOSED BUILDING ELEVATION ROBERT BURKE April 28, 2009 City Council Meeting Page 10 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If the applicant is a corporation, partnership, firm, business. or other unincorporated organization, complete the following: 1. List the applicant name followed by the names of all officers, members, trustees, partners, etc. below: (Attach list if necessary) Robert Burke 2. List all businesses that have a parent -subsidiary' or affiliated business entity - relationship with the applicant: (Attach list if necessary,) 0 Check here if the applicant is NOT a corporation, partnership, firm, business, or other unincorporated organization. PROPERTY OWNER DISCLOSURE Complete this section only if property owner is different from applicant. If the property owner is a corporation, partnership, firm, business, or other unincorporated organization, complete the following: 1. List the property owner name followed by the names of all officers, members, trustees, partners, etc. below: (Attach list if necessary) 2. List all businesses that have a parent -subsidiary' or affiliated business entity` relationship with the applicant: fAttach list if necessary) ❑ Check here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organization. & See next page for footnotes Non-Conf_­M�rq Use App4calizr Page 8 of �, Ries' Sad 9, 1 2,,',04' ROBERT BURKE April 28, 2009 City Council Meeting Page 11 7D,s`c�LOSURE STATEMENT ADDITIONAL DISCLOSURES List all known contractors or businesses that have or will provide services with respect to the regt ested property use, including but not limited to the providers of architectural services, raai estate services, financial services, accounting services, and legal services: (Attach list if necessary) Lyall Desitin, Architects WPL, Surveying & Engineering Sykes, Bourdon, Ahern & Levy, P.C. ' "Parent -subsidiary relationship" mans 'a relationship that exists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act, Va, Code § 2.2-3'101. 2 "Affiliated business entity relationship„ means "a relationship, other than parent -subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity s also a controlling owner in the other entity, or (ill) there is shared management, or control between the business entities. Factors that should be ;onsiderec in determining the existence of an affiliated business entity relationship nclude that the same person or substantially the same person own or manage the two t?ntibes; there are common or commingled funds or assets; the business entities share the use of ;he same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship Ietween�jthe entities." See State and Local Government Conflict of interests Act, Va. trode�i § 2..2-3101. �; ERTIFICATION: I certify that the information contained herein is true and accurate. 1 inderstand that, upon receipt of notification (postcard) that the application has been s ;heduied for public hearing, I am responsible for obtaining and posting the required e gn on the subject property at least 30 days prior to the scheduled public hearing a,,c:qrdjjzg to the instructions in this package. 0', Robert Burke Al Oiioalnfs Signature Print Marne P )Petty ter's signature (if diftrent than applicant) Print dame Dort-: 0r&r1rjW 4plication pe )of 8 Rwvm,, id Slit'3flA ROBERT BURKE April 28, 2009 City Council Meeting Page 12 -41- Item 41- Item V K2. PLANNING ITEM # 58610 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council DEFERRED INDEFINITELY the application re BEVERLY W. ARMSTRONG for an expansion of a Nonconforming Use at 7300 73rd Street. Resolution re application of BEVERLY W. ARMSTRONG authorizing the enlargement of a Nonconforming Structure on property located at 7300 73rd Street DISTRICT 5 - LYNNHAVEN Voting: 9-0 (By Consent) Council Members Voting Aye: Gi'enn R Davis, Harry E. Diezel, Barbara M. Henley, Vice Mayor Louis R Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: William R "Bill " DeSteph and Robert M. Dyer March 10, 2009 04 Y1 f M o5i CIL CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: A Resolution authorizing the Enlargement of a Nonconforming Structure on property located at 7300 73`d Street. LYNNHAVEN DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The purpose of this request is to make alterations and additions to an existing nonconforming structure at 7300 73rd Street. The single-family dwelling was built in 1960 and is nonconforming with respect to the required setbacks and lot coverage for single-family dwellings in the R -5R Residential Resort District. ■ Considerations: The applicant desires to add a second floor addition to the home. The addition will not encroach any farther into the setbacks than what currently exists. The existing structure exceeds the allowable lot coverage by 0.5 percent (80.3 square feet), but does not exceed the overall impervious cover allowance (60%) or allowed floor area. The proposed exterior of the structure will be Hardiplank° siding and roofing shingles will match the existing roof. The proposed addition will contain a media / recreation room, bedroom, his and her baths, dining area, and exercise room. Second floor covered porches over the existing patio area will also be installed on each side of the structure. The existing first floor will be re -configured to contain bedrooms, bathrooms, foyer/ entryway, and kitchen. The applicant deferred the request at the March 10th City Council meeting in order to provide additional information regarding the setbacks of the structure. The previous owner provided the architectural plans for the structure to the applicant. The applicant contacted the architect, Mr. William M. Wilshire, Jr., concerning the existing location of the home with regard to the setbacks. The architect states that his architectural firm, Williams and Tazewell and Associates, was retained in 1977 by the previous owner to prepare plans for additions to the home. To the best of his knowledge the plans were prepared in accordance with a variance for setbacks approved by the Board of Zoning Appeals. The previous owner retained Hoy Construction to obtain the building permit and construct the additions to the home. Again to the best of Mr. Wilshire's knowledge the additions to the home were constructed in accordance with the approved plans, variance to setbacks, and building permit. ■ Recommendations: Mr. Beverly Armstrong Page 2of2 The proposed enlargement is reasonable, will have a minimal impact, and should be as appropriate to the district as the existing non -conforming structure. The request, therefore, is acceptable with the conditions below. The proposed addition shall be constructed substantially in accordance with the submittE:d physical survey / zoning analysis plan entitled "LOTS 5 AND 6, BLOCK 1, SECTION E, CAPE HENRY", dated October 10, 2008 and prepared by Gallup Surveyors and Engineers, Ltd. Said plan has been exhibited to the City of Virginia Beach City Council and is on file in the Planning Department. 2. The proposed addition shall be constructed substantially in accordance with the submittE�d elevation plans entitled "ARMSTRONG ADDITION / RE -MODEL", dated July 22, 2008 and prepared by Redfearn Custom Designs. Said plans have been exhibited to the City of Virginia Beach City Council and are on file in the Planning Department. 3. There shall be no second kitchen (i.e. cooking facility) in the dwelling. ■ Attachments: Staff Review Disclosure Statement Resolution Location Map Recommended Action: Approval Submitting Department/Agency: Planning Department City Manager -•u•1 � � 1 A RESOLUTION AUTHORIZING THE 2 ENLARGEMENT OF A NONCONFORMING 3 STRUCTURE ON PROPERTY LOCATED AT 4 730073 RD STREET 5 WHEREAS, Beverly W. Armstrong (hereinafter the "Applicant") has made 6 application to the City Council for authorization to enlarge a nonconforming structure by 7 making additions to and alterations of a single-family dwelling on a certain lot or parcel 8 of land having the address of 7300 73`d Street, in the R -5R Residential Zoning District; 9 10 WHEREAS, the said structure is nonconforming, as the single-family dwelling 11 does not meet the required setbacks and lot coverage requirements of the current 12 zoning regulations, but did comply with the setback requirements when built with a 13 zoning variance; and 14 15 WHEREAS, pursuant to Section 105 of the city Zoning Ordinance, the 16 enlargement of a nonconforming structure is unlawful in the absence of a resolution of 17 the City council authorizing such action upon a finding that the proposed structure, as 18 enlarged, will be equally appropriate or more appropriate to the zoning district than is 19 the existing structure; 20 21 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 22 VIRGINIA BEACH, VIRGINIA: 23 24 That the City Council hereby finds that the proposed structure, as enlarged, will 25 be equally appropriate to the district as is the existing structure. 26 27 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA 28 BEACH, VIRGINIA: 29 30 That the enlargement of the single-family dwelling, by additions and alterations is 31 hereby authorized, upon the following conditions: 32 33 1. The proposed addition shall be constructed substantially in accordance 34 with the submitted physical survey / zoning analysis plan entitled "LOTS 5 35 AND 6, BLOCK 1, SECTION E, CAPE HENRY", dated October 10, 2008 36 and prepared by Gallup Surveyors and Engineers, Ltd. Said plan has 37 been exhibited to the City of Virginia Beach City Council and is on file in 38 the Planning Department. 39 40 2. The proposed addition shall be constructed substantially in accordance 41 with the submitted elevation plans entitled "ARMSTRONG ADDITION / 42 RE -MODEL", dated July 22, 2008 and prepared by Redfearn Custom 43 Designs. Said plans have been exhibited to the City of Virginia Beach City 44 Council and are on file in the Planning Department. 45 46 3. There shall be no second kitchen (i.e. cooking facility) in the dwelling. 1 47 48 Adopted by the Council of the City of Virginia Beach, Virginia, on the 49 of '2009. APPROV D AS TO CONTENT: Planni epartment CA11062 R-2 May 1, 2009 day APPROVED AS TO LEGAL SUM IENCY: 0iflit City Attorney's Office REQUEST: Alteration and Enlargement of a Nonconforming Structure ADDRESS / DESCRIPTION: 7300 73rd Street MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting STAFF PLANNER: Faith Christie GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 2419669586 LYNNHAVEN 15,000 square feet Less than 65 dB DNL SUMMARY OF REQUEST The applicant deferred the request at the March 10th City Council meeting in order to provide additional information regarding the setbacks of the structure. The previous owner provided the architectural plans for the structure to the applicant. The applicant contacted the architect, Mr. William M. Wilshire, Jr., concerning the existing location of the home with regard to the setbacks. The architect states that his architectural firm, Williams and Tazewell and Associates, was retained in 1977 by the previous owner to prepare plans for additions to the home. To the best of his knowledge the plans were prepared in accordance with a variance for setbacks approved by the Board of Zoning Appeals. The previous owner retained Hoy Construction to obtain the building permit and construct the additions to the home. Again to the best of Mr. Wilshire's knowledge the additions to the home were constructed in accordance with the approved plans, variance to setbacks, and building permit. The purpose of this request is to make alterations and additions to an existing nonconforming structure at 7300 73`d Street. The single-family dwelling was built in 1960 and is nonconforming with respect to the required setbacks and lot coverage for single-family dwellings in the R -5R Residential Resort District. The following compares the dimensional requirements in 1960, the dimensional requirements in the R -5R District today, and the yard and coverage figures of the existing structure: MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 1 The applicant desires to add a second floor addition to the home. The addition will not encroach any farther into they setbacks than what currently exists. The existing structure exceeds the allowable lot coverage by 0.5 percent (80.3 square feet), but does not exceed the overall impervious cover allowance (60%) or allowed floor area. The proposed exterior of the structure will be Hardiplanke siding and roofing shingles will match the existing roof. The proposed addition will contain a media / recreation room, bedroom, his and her baths, dining area, and exercise room. Second floor covered porches over the existing patio area will also be installed on each side of the structure. The existing first floor will be re- configured to contain bedrooms, bathrooms, foyer / entryway, and kitchen. LAND USE AND ZONING INFORMATION EXISTING LAND USE: A single-family dwelling, driveway, and landscaping SURROUNDING LAND North: . Single-family dwelling / R -5R Residential Resort USE AND Z014ING: South: . 73`d Street • Across 73rd Street are single-family and duplex dwellings / R -5R Residential Resort East: . Atlantic Ocean West: . Single-family dwelling / R -5R Residential Resort NATURAL RESOURCE AND The site is located at the eastern end of 73m Street adjacent to the sand CULTURAL FEATURES: dunes, beach, and Atlantic Ocean. There are no known natural resources or cultural features associated with the site. AICUZ: The site is in an AICUZ of Less than 65dB Ldn IMPACT ON CITY SERVICES City services are not impacted by the additions. MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 2 1960 2009 Current Building Front Yard Setback 30 feet 20 feet 29.7 feet Rear Yard Setback 10 feet 20 foot 4.9 feet Side Yard Setback adjacent to it street 15 feet 18 feet 15.3 feet Interior Side 'Yard Setback 6 feet 8 feet 12.8 feet Setback adjacent to No regulation 30 feet ocean Lot Covera a No regulation 35% 35.5% The applicant desires to add a second floor addition to the home. The addition will not encroach any farther into they setbacks than what currently exists. The existing structure exceeds the allowable lot coverage by 0.5 percent (80.3 square feet), but does not exceed the overall impervious cover allowance (60%) or allowed floor area. The proposed exterior of the structure will be Hardiplanke siding and roofing shingles will match the existing roof. The proposed addition will contain a media / recreation room, bedroom, his and her baths, dining area, and exercise room. Second floor covered porches over the existing patio area will also be installed on each side of the structure. The existing first floor will be re- configured to contain bedrooms, bathrooms, foyer / entryway, and kitchen. LAND USE AND ZONING INFORMATION EXISTING LAND USE: A single-family dwelling, driveway, and landscaping SURROUNDING LAND North: . Single-family dwelling / R -5R Residential Resort USE AND Z014ING: South: . 73`d Street • Across 73rd Street are single-family and duplex dwellings / R -5R Residential Resort East: . Atlantic Ocean West: . Single-family dwelling / R -5R Residential Resort NATURAL RESOURCE AND The site is located at the eastern end of 73m Street adjacent to the sand CULTURAL FEATURES: dunes, beach, and Atlantic Ocean. There are no known natural resources or cultural features associated with the site. AICUZ: The site is in an AICUZ of Less than 65dB Ldn IMPACT ON CITY SERVICES City services are not impacted by the additions. MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 2 EVALUATION AND RECOMMENDATION The Comprehensive Plan Map designates this site as part of the Primary Residential Area — North Virginia Beach Site 11. The North Virginia Beach community encompasses a predominantly residential area located on both sides of Atlantic Avenue from 42nd Street to 89th Street. It is characterized by a compact arrangement of single-family and duplex units with much of the land zoned Residential Resort District (R-5R).The land use planning policies and principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value and aesthetic quality of the stable neighborhoods located in this area. The request for alteration and expansion of this nonconforming use is compatible with the Comprehensive Plan's recommendations for this area. The proposed enlargement is reasonable, will have a minimal impact, and should be as appropriate to the district as the existing non -conforming structure. The request, therefore, is acceptable with the conditions below. CONDITIONS 1. The proposed addition shall be constructed substantially in accordance with the submitted physical survey / zoning analysis plan entitled "LOTS 5 AND 6, BLOCK 1, SECTION E, CAPE HENRY", dated October 10, 2008 and prepared by Gallup Surveyors and Engineers, Ltd. Said plan has been exhibited to the City of Virginia Beach City Council and is on file in the Planning Department. 2. The proposed addition shall be constructed substantially in accordance with the submitted elevation plans entitled "ARMSTRONG ADDITION / RE -MODEL", dated July 22, 2008 and prepared by Redfearn Custom Designs. Said plans have been exhibited to the City of Virginia Beach City Council and are on file in the Planning Department. 3. There shall be no second kitchen (i.e. cooking facility) in the dwelling. NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 3 AERIAL OF SITE LOCATION MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 4 THIS IS TO CERTIFY THAT 1, ON SEPT. 15, 2008 SURVEYED THE PROPERTY SHOWN ON THIS PLAT AND THAT THE TITLE LINES AND WALLS OF THE BUILDINGS ARE AS SHOWN ON THIS PLAT. THE BUILDINGS STAND STRICTLY WITHIN THE TITLE LINES AND THERE ARE NO ENCROACHMENTS OF OTHER BUILDINGS ON THE PROPERTY EXCEPT AS SHOWN. SIGNED: A., &. i a4 LS ATLANTIC OCEAN OCEANFRONT AVE. - 150' R/W PROP. 8'x 22.1' COVERED (I-NDEVELOPED) PORCH OVER EX. 1st. FLR. 100.00' RN(F) PIN(F) PROP. 8'x 22' COVERED gp r N 90' wood STEPS PORCH OVER EX. 1 st. FLK. •5 BRI WALL `6 23' WALL (MCR) UNE ai 4' ROOF OVERHANG AGPOLE 10) ONE y 9RCR WAIT 0.2' CLEAR FMCE a 22.0 22.1 _ 0.0' CLEAR Hx:lx m d HOT 7us WD \ I '4 ! ' DON ECK \ 10. N ! I wwow FENCE•�� ai a E° I PROPOSED00 2nd FLOOR A/C ADDITION 4 CS f I'2 CS A/Cb t W I (^ LUr PROPOSED 'd 4.0- 2 STORY c ADDITION 0.3' CHEM FENCE WALL CP ANTER i (n CRA11I A/Ci '7'aOTSfOF 2. .:,.. �91S \22.G• 15.4' SPACE ACCESS ie um 61 c 54' 4A' ....... .... . . .... (ENCRWju I N n I niN HOOK-CMAGEry I 2A6 FL"-UVING 02V CLEAR FENCE PING w� 5' woo 6 U FENCE U a a g o PHYSICAL SURVEY/ZONING ANALYSIS LOTS 5 and 6 BLOCK 1 - SEC71ON E CAPE HENRY M.H. 1 P. 8b VIRGINIA BEACH, VIRGINIA SCALE: 1' = 25' OCT. 10, 2008 MADE FOR BEVERLY ARMSTRONG G X08-106ps.dwg /9# o�M ATLANTIC AVE. SHEET 1 OF 2 F.B. 451 P. 74 SITE PLAN MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 5 f DOTES 1.) THE PROPERTY SHOWN HEREON APPEARS TO FALL INSIDE ZONE: X, VE(ELEV. 10) AS SHOWN Cqq THE F.E.M.A. FLOOD INSURANCE RATE MAP FOR THE CITY OF VIRGINIA BEACH, COMMUNITY FANEL #515531-0016 E . 2.) TH€S SURVEY WAS PERFORMED WITHOUT THE BENEFIT OF A TITLE REPORT AND MAY NOT SHOW ANY AND/OR ALL EASEMENTS OR RESTRICTIONS THAT MAY AFFECT SAID PROPERTY AS SHOWN, SITE DATA 1. GPIN: 2419-66-9586 2. ZONED: R -5R 3. LOT AREA: 15,000 SF 4. LOT COVERAGE: HOUSE: 5,330.3 SF (35.5%) 5. ALLOWABLE LOT COVERAGE: 35% x 15,000 SF - 5,250 SF 6. FLOOR AREA (EXCL. GARAGE): 8,187.5 SF 7. ALLOWABLE FLOOR AREA: 35% x 15,000 x 200% - 10,500 SF 8. IMPERVIOUS COVERAGE: HOUSE: 5,330.3 SF CONCRETE DRIVEWAY. 1,841.2 SF FRONT CONCRETE WALKS: 156.8 SF FRONT BRICK WALK: 472.2 SF SLATE FISH POND SURROUND: 35.0 SF BRICK PLANTER WALLS: 78.2 SF OUTSIDE SHOWER CONCRETE: 53.1 SF AIR CONDITIONERS: 25.6 SF CRAWL ACCESS RETAINING WALL: 6.1 SF WOOD DECK FOR HOT TUB: 141.4 SF REAR BRICK PATIO AND WALL: 489.8 SF REAR BRICK WALL: 149.2 SF REAR WOOD STEPS: 35.1 SF PUMP HOUSE: 12.0 SF 8826.0 SF TOTAL 9. ALLOWABLE IMPERVIOUS COVERAGE: 15,000 x 60% - 9,000 SF e, vol -- O�,L,1Hp�' y�'u BRUCE vallp o.1484 � �A .b SL,RV`ti�rp x 6:\08-116ps.dwg PHYSICAL SURVEY/ZONING ANALYSIS LOTS 5 and 6 BLOCK 1 - SECTION E CAPE HENRY M.B. 1 P. Bb VIRGINIA BEACH. VIRGINIA SCALE: N/A OCT. 10, 2008 MADE FOR BEVERLY ARMSTRONG SHEET 2 OF 2 ZONING ANALYSIS MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 6 BUILDING ELEVATION MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 7 ti BUILDING ELEVATIONS MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 8 t- - ----------- M9 If L: BUILDING ELEVATIONS MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 8 B Ise Vq , X meet MR i3f-\ 3 cit, Council 'Pau May 1-2,200 ENTRYWAY INTO SITE AND HOUSE MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 10 1. 12/11/07 Alterations to a Nonconforming Use Approved ZONING HISTORY MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 11 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If *e applicant is a corporation, partnership, firm, business, or other unincorporated organization, complete the following. - 1 . List the applicant name followed by the names of all officers, members, trustees, partners, etc, below: (Attach list if necessary) Mr. Beverly W. Armstrong 2. List all businesses that have a parent -subsidiary' or affiliated business entity, 'elationship with the applicant: (Attach list if necessary) X 3heck here if the applicant is NOT a corporation, partnership, firm, business, or ether unincorporated organization PROPERTY OWNER DISCLOSURE Complete this section only if property owner is different from applicant. If the property owner is a corporation, partnership, firm, business, or other unincorporated organization, complete the following: 1. -ist the property owner name followed by the names of all officers, members, %rustees, partners, etc. below: (Attach list if necessary) 2. -subsidiary' or affiliated business entity` list all businesses that have a parent 'elationship with the applicant: (Attach list if necessat3o C1 --heck here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organization. '& L � See next page for footnotes Non,Confornng Use Application Page 6 of 9 Rewsed 9.` x:21 MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 12 DISCLOSURE STATEMENT ADDITIONAL DISCLOSURES List all known contractors or businesses that have or will provide services with respect to the requested property use, including but not limited to the providers of architectural services, real estate services, financial services, accounting services, and legal services: (Attach list if necessary) Sykes, Bourdon, Ahem & Levy, P.C. Gallup Surveyors & Engineers. Ltd. Brad Tazewell, Architect Joelle Redfearn, Designer Seaside Builders ' "Parent -subsidiary relationship,. means "a relationship that exists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. 2 "Affiliated business entity relationship" means "a relationship, other than parent -subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities; there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. CERTIFICATION: I certify that the information contained herein is true and accurate, I understand that, upon receipt of notification (postcard) that the application has been scheduled for public hearing, I am responsible for obtaining and posting the required sign on the subject property at least 30 days prior to the scheduled public hearing according to the instructions in this package. Beverly t+',1. Armstrong Applicants Signature Print Name Property Owner's Signature f different than applicant) —,- Print Name Nora Confarrnwg "Ise Aopti at on Page 9 of 9 Rev"i art ION MR. BEVERLY W. ARMSTRONG May 12, 2009 City Council Meeting Page 13 -57 - Item V -L4. PLANNING ITEM # 58759 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED to May 12, 2009, Ordinance upon Application of REFORMED BAPTIST CHURCH OF VIRGINIA BEACH for a Conditional Use Permit re a church at portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear property line. ORDINANCE UPON APPLICATION OF REFORMED BAPTIST CHURCH OF VIRGINIA BEACH, CONDITIONAL USE PERMIT, CHURCH, PORTIONS OF 2230, 2234 AND 2240 SALEMROAD Ordinance upon application of REFORMED BAPTIST CHURCH OF VIRGINIA BEACH, Conditional Use Permit, church, portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear property line. (GPIN:1484062581, 2.55 acres; GPIN.• 1474963332, 0.21 acres; GPIN.- 1484060288, 0.28 ACRES, GPIN.• 148406112, 0.57 acres) PRINCESS ANNE DISTRICT Voting: 11-0 (By Consent) Council Members Voting Aye: Glenn R. Davis. William R "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Ron A. Villanueva, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April 28, 2009 REFORMED BAPTIST CHURCH CUP for Church Relevant Information: • Princess Anne District • The applicant requests a Use Permit for a church on a 3.61 -acre site. • The church will be located on the rear 2.55 acres of the site, buffered from the adjacent properties by an existing wide wooded area. • Building will be one-story with white siding, a brick skirt at the water table level, and brick accents around the windows and entryway. Evaluation and Recommendation: • Planning Staff recommended approval • Planning Commission recommends approval (11-0) • There was no opposition. c r� r� f � f � «l CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: REFORMED BAPTIST CHURCH OF VIRGINIA BEACH, Conditional Use Permit, church, portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear property line. PRINCESS ANNE DISTRICT. MEETING DATE: May 12, 2009 ■ Background: At the request of the applicant, the City Council deferred this item during the April 28 meeting. The applicant requests a Conditional Use Permit for the purpose of developing the site for a church. The property is zoned R-15 Residential District, and is 5.2 acres in size, consisting of three (3) single-family lots and a 2.55 -acre landlocked parcel behind the single-family lots. The Comprehensive Plan Map and land use policies place this site within the Primary Residential Area (PRA), which emphasizes the importance of neighborhood character and its relationship to compatible land use and traffic management. The established type, size, and relationship of land use, both residential and non-residential, located in and around these neighborhoods should serve as a guide when considering future development. ■ Considerations: The landlocked 2.55 -acre parcel is where the 5,785 square foot church building and its associated 46 -space parking lot are proposed. Ingress and egress to the church is proposed via a private access driveway, 24 feet wide, which will run from the church to Salem Road between two of the single-family dwellings that front on Salem Road. Much of the new construction is surrounded by a wide, wooded buffer. This buffer is 102 feet wide at its greatest depth and 40 feet wide at its narrowest point. The submitted building elevations depict a one-story building with white siding, a brick skirt at the water table level, and brick accents around the windows and entryway. Other architectural elements include a cupola and a portico. ■ Recommendations: The Planning Commission passed a motion by a recorded vote of 11-0 to approve this request with the following conditions: Reformed Baptist Church of Virginia Beach Page 2 of 2 When the site is developed for the church, the site layout, buffering and landscaping shall be substantially as depicted on the site plan entitled, "Reformed Baptist Church Conditional Use Permit," prepared by Land Planning Solutions, dated 12/23/08 and revised 01/19/09, which has been viewE:d by the Virginia Beach City Council and is on file in the Planning Department. 2. When the building is constructed for the church, it shall be substantially as depicted on the building elevations entitled, "Reformed Baptist Church Conditional Use Permit," prepared by Land Planning Solutions, dated 12/03/08, which have been viewed by the Virginia Beach City Council and are on file. in the Planning Department. 3. A Certificate of Occupancy shall be obtained from the Building Official's Office prior -to operation as a church facility. 4. A legal ingress -egress easement shall be established for the landlocked lot on the northern portion of the site identified on the plan as GPIN 14840625810000. A plat depicting this ingress/egress shall be put to record prior -to the approval of the final site plan for construction of the church. 5. Additional landscaping, beyond what is depicted on the plan identified in Condition 1 above, shall be installed between the driveway, including the curve into the parking lot, and the lot identified as GPIN 1484062244000. Said landscaping shall consist of Category IV screening and shall be depicted on the final site plan and/or landscape plan. 6. The access point shown on Salem Road shall be chained and locked when the church is not in use. Said chain shall be installed at a point between Salern Road and the church parking lot where a turn -around can be provided for vehicles to safely egress from the site upon reaching the point of terminus created by the chain. ■ Attachments: Staff Rev ew Disclosure Statement Planning Commission Minutes Location IVlap Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department; City Managers�_"k_ mapr-ie Reformed Baxist Church of Va Beach Men Not to 5, HiQ' v" ,�>�• i � . S ���'� P CUP for Church REQUEST: Conditional Use Permit (religious facility - church) # 3 March 11, 2009 Public Hearing APPLICANT AND PROPERTY OWNER: BAPTIST CHURCH OF VIRGINIA BEACH STAFF PLANNER: Carolyn A. K. Smith ADDRESS / DESCRIPTION: Portion of properties located at 2230, 2234 & 2240 Salem Road GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 2.55 acres of 1484062581 PRINCESS ANNE 3.61 acres Less than 65 dB DNL 0.21 acres of 1474963332 0.28 acres of 1484060288 0.57 acres of 1484061112 The applicant requests a Conditional Use Permit for a church. SUMMARY OF REQUEST The property is zoned R-15 Residential District, and is 5.2 acres in size, consisting of three (3) single-family lots and a 2.55 -acre landlocked parcel behind the single-family lots. The landlocked parcel is where the actual 5,785 square foot church building and its associated 46 -space parking lot are proposed. Ingress and egress to the church is proposed via a private access driveway, 24 feet wide, which will run from the church to Salem Road between two of the dwellings that front on Salem Road. Much of the new construction is surrounded by a wide, wooded buffer. This buffer is 102 feet wide at its greatest depth and 40 feet wide at its narrowest point. The church's properties and all properties surrounding the site are zoned R-15 Residential District. The submitted building elevations depict a one-story building with white siding, a brick skirt at the water table level, and brick accents around the windows and entryway. Other architectural elements include a cupola and a portico. REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 1 LAND USE AND ZONING INFORMATION EXISTING LAND USE: Three (3) single-family dwellings and one (1) vacant, predominately wooded site SURROUNDING LAND North: a Single-family dwellings / R-15 Residential District USE AND ZOIVING: South: . Single-family dwellings / R-15 Residential District East: . Single-family dwellings / R-15 Residential District West: • Salem Road • Single-family dwellings / R-15 Residential District NATURAL RESOURCE AND This site is within the Southern Watersheds Management Area and the CULTURAL FEATURES: largest of the four (4) parcels is heavily wooded. The applicant proposes to maintain as much of the wooded area as possible to provide a good buffer between properties. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): Salem Road in this location is a two-lane undivided minor suburban arterial. The MTP proposes a divided roadway with a bikeway and scenic buffer within a 150 -foot wide right-of-way. A CIP project is programmed for Salem Road in the vicinity of this site. Salem Road — Transition Area Network (CIP 2-507) is for the construction of a four - lane divided roadway from Elbow Road to North Landing Road. The improvements also include landscaping, aesthetic enhancements, multi -use paths, and bike lanes. This project is currently on the 'Requested But Not Funded' project list. TRAFFIC: Street Name Present Volume Present Capacity Generated Traffic Salem Road 3,405 ADT 13,600 ADT (Level of Existing Land Use — 82 Service "C") — 16,200 ADT ADT' (Level of Service Proposed Land Use 3— 306 "E") ADT - Sunda Average Daily Trips 2 as defined by 3.61 acres of residential at R-15 density Sas defined by a 200 -seat church sanctuary WATER: This site must connect to City water. There is an existing 12 -inch City water line within Salem Road. SEWER: City sanitary sewer service is available. Analysis of Pump Station #575 and the sanitary sewer collection system may be required to ensure future flows can be accommodated. There is an existing eight - inch City gravity sanitary sewer main within Salem Road. REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 2 Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this request with the conditions below. Comprehensive Plan: The Comprehensive Plan Map and land use policies place this site within the Primary Residential Area (PRA), which emphasizes the importance of neighborhood character and its relationship to compatible land use and traffic management. The established type, size, and relationship of land use, both residential and non-residential, located in and around these neighborhoods should serge as a guide when considering future development. Evaluation: Staff finds that the proposed self -standing church on 3.61 -acres of a larger five (5) acre site is compatible with the surrounding uses. There is a vacant, landlocked 2.55 -acre site that is located on the northern portion of the larger site, behind the three (3) single-family dwellings. Access to the church will be via a driveway that runs between the church and Salem Road. A condition of the Use Permit is recommended below that ensures the church, as it is located on a landlocked parcel, will have a legal access across the single-family lots. The proposed 5,785 square foot church building and 46 -space parking area is surrounded by a wide, wooded buffer. This buffer is generally 40 feet wide and is labeled to remain intact. Staff also recommends a condition for additional landscaping to be installed between the driveway and the existing dwelling to the east in order to screen the church and any activity associated with its use. CONDITIONS 1. When the site is developed for the church, the site layout, buffering and landscaping shall be substantially as depicted on the site plan entitled, "Reformed Baptist Church Conditional Use Permit," prepared by Land Planning Solutions, dated 12/23/08 and revised 01/19/09, which has been viewed by the Virginia Beach City Council and is on file in the Planning Department. 2. When the building is constructed for the church, it shall be substantially as depicted on the building elevations entitled, "Reformed Baptist Church Conditional Use Permit," prepared by Land Planning Solutions, dated 12/03/08, which have been viewed by the Virginia Beach City Council and are on file in the Planning Department. 3. A Certificate of Occupancy shall be obtained from the Building Official's Office prior to operation as a church facility. 4. A legal ingress -egress easement shall be established for the landlocked lot on the northern portion of the site identified on the plan as GPIN 14840625810000. A plat depicting this ingress/egress shall be put to record prior to the approval of the final site plan for construction of the church. 5. Additional landscaping, beyond what is depicted on the plan identified in Condition 1 above, shall be installed between the driveway, including the curve into the parking lot, and the lot identified as GPIN 1484062244000. Said landscaping shall consist of Category IV screening and shall be depicted on the final site plan and/or landscape plan. REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 3 NOTE. Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 4 AERIAL OF SITE LOCATION REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page womo or a I I r' G� ft 1474969 LL.Z,One: R15 Acreage: 0.813 r - ur-=---------- - r! OPIN:14840602880000 LL -?one: R15 Acreage: 0.770 --------------- Irb-MN: 1484061 x{269010 Zone: R15 r Acreage: 1.092 -- J GPIN:14840625810000 Zone: R15 Acreage: 2.526 EXI►TING LOTS: I"=150' 9 EXISTING LOTS REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 6 g� 6 C.U.P VEQUIREI ".P REQ IRED FO 2.55 A.q. OF GPI 0.21 A.C. O GPIN: 148406 10000 147496933 0000 _ C.U.P REQUIRED FOR 0.57 A.C. OF GPIN: 14840611120000 C.U.P REQUIRED FOR 0.28 A.C. OF GPIN: 14840602880000 C.U.P. LEGEND: 1 "=150' 91 BOUNDARY OF CUP REQUEST REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 7 geld auS i oun,os�m �.idN_ _ow, - sn�z uvol uuuad asn 1RUOMPu03 U - A ~° am st de auuo a - wva moo-' trona 4 9 3.1 flP P -d = IaR �A gg — I Z h .i _ � t ss� o r � SALEM Rogp PROPOSED SITE PLAN REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 8 11 Map / / / I Baptist I Beach Not to Scale 10% a s i .. >R 445 CUP for Church 1 09/24/02 Nonconforming Use replacement Granted 2 '12/10/02 Change of Zoning R-15 to R -5D Granted 3 '11/25/08 Change of Zoning (R-15 & AG -1 to Granted Conditional R-7.5) 08/27/08 Change of Zoning (R-15 & AG -1 to Denied Conditional A-12 with PD -H2 ZONING HISTORY REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 10 DISCLOSURE STATEMENT It `nix avp�iczrt s a corp cratcr zarnefr""I;; firm tusinesi ')r Other x rc)rpora"Ied fr i �St the a;!I:1uAnt nark Acweci by trie earn' � ;'f a -elt"Prs m.'Stocs Partners e1c teiaw fAltacf- ksl it n­_vssa� Joseph Gilliam, Ken Ochsenreither, Stewart Clarke, and Calvin Crafford 2 L,,s* al ousirtessestha, oiatie a pari*vt-sucs d any or af� atec, on'tj:'y® reiatonshi�- ti­�e arT'7ant' "'Artac'iV i( CrecK t*re If the appucant ii NOT a c,_%-pc-at.c­ pa,.netv, L) lirr, L,.mess 07*r jrnc-0fpor'atP.0 organzaucrrl. PROPERTY OWNER DISCLOSURE If" properq owr*' is s C�Xpxatw fim, t""S-ness or w1com3r 3 :&ganlzat'on cornpiete vhe f'Acwlng -e pfnper�'; cW7'ernanx, fUrAved !)y tfienarnes W trust"s pwl'ws e1c O&OW- Joseph Gilliam, Ken Ochsenreither, Stewart Clarke, and Calvin Crafford 2 wjsit w tA,siness" tray t'aa sutsdw'y' of,'-VYil3tec resabonsnlv wlz�- tne arph '3TA it tier e ff'te ;�� �Ioerty i,-fwr*r �s NOT a como,a*'a- paitmersrip t-rri 0, :�Vf orp, ato, -rx! ra�"e fzx X" , 'i n"" - "?-"6 ""afnta of 7ne sit. or empioyeik? ana tne na.'_re of T. r m*erest? REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 11 DISCLOSURE STATEMENT, ADDITIONAL DISCLOSURES Ust ar. Kn,,,twncori"ctois o, bus r,i�sses tnilhave or w:'i p,.),Acp serv-ces tiv,,*b re$0ec -t tc the reques*'voi properry its indjang bw, riot to tr,,� provtiers of arcnitectLral si-mces res' esnire seer ces firvarnral serv:es x=unnng ser vrzes and,*p services Att3c�- t st I ric-,essa,) . ........... . ... ....... Mal ex's% vvnen U r, ,ter deacvp'w ondifc;V'f owrssnarfks ix—i%,­ssing rnore than 5t.w�,*re, of temvallej wAivvef c"f 'APQt"'r '."Wroral�or 3'.-e 5*111e „3 lc ­5overr"mc�v, nt iriterests Act, Va C vi t e f e s t i r, tr i e t h e r t, u s ° r €. s e it on, hr-: 2 -.)V; v or e P m t mw - ?; '34 sfS a 0on tral 4T we, n ft) - (A"r entity or , A. tn,i;r s %­wec nanagemcm Dr rcirtr c b,n the bus r iLmtqoL,s FactoM that stiould tw ae*ffrnr:r4nq tv oxis"n'n"ce 0* anaft iatec I"us-we"'is entity rCJjd(,, 0-ol 11� slilrie 0,* t t'Me San,*-, peter' owl" !r* two ent't es. tfic'tt' we wwronn,, :nrnmnq.ed fvwn 0- assets to '+ bi.sioiess crttLw­i shale the ase of " Sarre off c�:s _,e 0­:�Werw Se Owe WMAIN-Cs ff"3'mmes or parsvi.nei on -3 iar twsA or f1here is vb"i" a cx. AiN tukNwwl 'm�panlf*xn S%oe ar,(; " (>ui� (7-ova'rmer- C�xficl of interasts 4d, Va '_'ode 2 2 11 CERTIFtCATION. P%ftc �V' -S;nnwfW 4�t'rotm; "'v'r �xVwl'i t* wUllea U7 -n subj"O ryODcfly A', * -S.t :Y"Qrtc, thr, schmiec, "-�eamiv ac=le g to 'Ac 4m pecxage. T�* qtrWSKFWX- &5K trt� .A= Tse t;rok'yees OtVN Pannv*'q U, PMgr'0_'r')0' arw:1 fktor an! -'za""qN'g xpmzatce Joseph Gilliam P� in �t 113 lqmv4e4 713*100 7 REFORMED BAPTIST CHURCH OF VIRGINIA BEACH Agenda Item 3 Page 12 Item #3 Reformed Baptist Church of Virginia Beach Conditional Use Permit 2230, 2234 and 2240 Salem Road District 7 Princess Anne March 11, 2009 REGULAR Janice Anderson: Next? Donald Horsley: The next matter is item 3, Reformed Baptist Church of Virginia Beach. It's an application of Reformed Baptist Church of Virginia Beach for a Conditional Use Permit for a religious facility on portions of 2230, 2234 and 2240 Salem Road and a parcel abutting the rear of the property line, District 7, Princess Anne. Janice Anderson: Is there an applicant? Welcome sir. Please state your name for the record. Eric Galvin: Eric Galvin with Land Planning Solutions. I'm a land planner there and we are working with Pastor Joe Gillam. He is the owner of the properties located here that we are trying to get the Conditional Use Permit, which is required for a religious use in the R-15 zoning. The proposed church is proposed for an existing forested lot on the back half of this. The proposed church is located here within an existing forest. This is all forested currently. As of the code, there are no requirements for any buffering but we are proposing a 45 foot buffer on all sides of the property, and leave that forested area undisturbed. We've also had multiple meetings with the adjacent owners, specifically the Newcastle Civic League, and Tina Milligan is here from them. She can speak, and if she has anything to bring up about this, we have done everything that we can to accommodate their concerns. Many residents were concerned with the exiting drainage problems on the sites. It is relatively a flat area and there is some standing water. Any development would comply with code and we would handle all our drainage on site. Lighting was also a concern, and we again, it would be installed 'as required by code, with everything directed inward towards the site. The plan is also to allow a design for a small amount of growth. We keep everything within the 40 foot buffer at all times. If anything were to expand it would only do so within the inner portion of the site right here (pointing to PowerPoint). Pastor Gillam doesn't have any plans on making this any kind of a large "mega -church." It is primarily planned as a small Sunday church. And they had a second meeting last night with the Newcastle Civic League. They have a final agreement. To get all the neighbors happy with the idea, put at this location or possibly in front of the location, a gated entry so people could not access the site when the church was not in operation. Other than that, we think that the church is going to fit nicely into the proposed, or into the existing, area. It will be an added benefit. It requires the Conditional Use for R-15 zoning. We think it would fit in nicely. Janice Anderson: Great. Thank you Mr. Galvin. Are there any questions for Mr. Galvin at this time? Thank you sir. Okay. Go ahead Ron. Item #3 Reformed Baptist Church of Virginia Beach Page 2 Ronald Ripley: I have a question. Maybe it should be directed to Ric Lowman. In your site plan, do you have any kind of deceleration or turn-off lane off of Salem into this drive lane or does it directly intersect? Eric Galvin: There is none. It would be a private 24 foot access road, basically like a driveway that would access the property. Ronald Ripley: Did staff have any concerns with that? No concerns? Ric Lowman: If you would want me to come up and talk about it? Ronald Ripley: If you would. Ric Lowman: Okay. Janice Anderson: Thank you Mr. Galvin. Ronald Ripley: Would you want to look at widening the shoulder or anything there or you don't think it is necessary? Ric Lowman: Well, for the record, Ric Lowman, traffic engineering. In looking at it, it is really going to be a Sunday generator. Meaning that during the weekdays, as I kind of explained at the informal, there is going to be very limited traffic there. Generally we warrant right and left turn lanes based on the peak hour traffic in trying to get it out of the roadway and away from the through traffic. In this case on a Sunday, when the church is coming and when :it is leaving, the levels of traffic on Salem Road are going to be at its lowest. As far as the background traffic so were not concerned with the turn lanes for that type of development on a Sunday. Whether it comes down to whether you need widening around the entrance, we take a look at that at the site plan stage to see if this, like any other commercial site would warrant kind of improvements there to the entrance. Salem Road is what it is. It's a narrow two-lane roadway but it does have other entrances that do seem to function fairly well. Ronald Ripley: It.just seems like if it is a residential lot it is one thing. You have very limited amount of ears coming and going. If you have 25 to 30 cars going in there in the morning and coming back out. It seems like some consideration to at least widening the shoulders so the car can move off a little bit. Ric Lowman: Rig]it. Ronald Ripley: It's an issue with all the rural roads. You have ditches. You have a shoulder. You have a ditch. Ric Lowman: Correct. Item #3 Reformed Baptist Church of Virginia Beach Page 3 Ronald Ripley: It can be dangerous. Ric Lowman: We make them put in a commercial entrance at the site plan stage. Meaning that the driveway width has to be 30 feet across and it would also have to have 15 foot radii on the concrete apron. It has to be a concrete apron. It can't be crushed asphalt. It can't be dirt apron. It would have to be a standard concrete apron, 30 feet in width with 15 foot radii. So that would alleviate a little bit of your concerns about cars turning in. It would be something more than just dirt or a crushed gravel entrance that you see on these rural roads. Janice Anderson: Are there any other questions of Ric while I have him here. Okay. Thank you. Ric Lowman: Sure. Janice Anderson: Do we have speakers? Donald Horsley: We have one speaker. Tina Milligan. Janice Anderson: Welcome. Tina Milligan: Thank you ma'am. Thank you for your time. I'm Tina Milligan. I'm president of Newcastle Civic League. I've spoken to you guys before, and I appreciate your time today. I did, in fact, as well as the members of the civic league, meet with the Pastor Joe last night. We support the building of this church with three items being addressed. I know you guys were given a copy of the notes with the rebuttal in red this morning. As a matter I'm going to hand these out to you so you can see them as well. It pretty much summarizes our three main top concerns. It will clarify it a little easier. In the proffers, we're probably calm after the show we had before. The buffer is our big concern. Well, I'm going to start at the front of the property. The front of the property, we would like, and I think it is on number 2, of what you're looking at. We would like some sort of locking gate. It is just a mere chain that goes across this entrance that will stop access to the parking lot of the church to prevent parking of the neighborhood teenagers. We've had some drug busts in our park stop that going on behind our homes. This area right here, (pointing to PowerPoint) is the predominate parking area that concern us. This isn't even visible from the road front. There is actually a home here that is going to be demo. Am I correct Joe in saying that? Okay? So, this isn't going to open up the front of the church to be visible from the road. So, we are living in this neighborhood here. Our concerns are for our safety in our neighborhood to stop the riff-raff from going back there. It will be a prime parking spot. You know how teenagers go? It would be a nice little spot. So, we would like the chain to be erected. It could be a low cost endeavor that can be locked that would be the church's responsibility to do so when the church was not in use during the Sunday timeframe that was mentioned. Also during the weekday nights, the Pastor said he would have some Bible studies going on. So, there is not a lot of traffic through there. It is a small, small church. We love the idea of it being in our neighborhood but we want some safeguards put into place to protect our property, our children's safety and our neighborhood safety. And, we do have a drug Item #3 Reformed Baptist Church of Virginia Beach Page 4 problem in the neighborhood that has been documented. Arrests have been made just an 1/8 of a mile from this church. So, that is one thing that we felt strongly about. The pastor was fine with doing so. But we would like to have it in writing in the proffers. The second issue was the 40 foot minimum tree buffer. We want a proffer on that as well. I got it quoted in here that we prevent later on and Pastors travel with churches. I might not be dealing with Pastor Joe. He might not be dealing with me. It would preserve that buffer from our neighborhood so we wouldn't have to look in the backyard of the church. It might be a little bigger church in the future. It says he desires not to build a mega -church but we need the buffer to be strengthened. Then we spoke to the project manager, whose name is Joseph as well. He said if there was any remaining dirt from the project from the BMP, because of the grade, if he had anything left over he would be happy to fill in the ditch, if it was okay with the City at that time. I don't have a name on the gentleman that we spoke to in the past, but we were given an okay to fill it in at one point. I apologize that I don't have that person's name, but obviously this is on contingency that there is enough dirt. He said he could run his dozer over and help us out. We agreed to give him access from Southcross Court so it wouldn't bother the wooden tree buffer as well. Janice Anderson: Ms. Milligan, Mr. Horsley had a question about filling in the ditches there. What ditch are you looking to fill? Tina Milligan: This was farmland before it was built. Right here (pointing to PowerPoint). Eric Galvin: Along the backside of the property right here (pointing to PowerPoint). Tina Milligan: I'ra sorry. I'm turned around here. Okay. He's right. Correct. It is right here. There is a ditch. I'm so sorry. Janice Anderson: That is alright. Tina Milligan: I'm kind of tired. Donald Horsley: My main concern was filling in any drainage. Tina Milligan: It wasn't a drainage ditch. It's a ditch to nowhere. It's more like divot in the ground. Our property is actually on the side where the church is; so, by filling it in, that would actually give us ten feet of usable yard versus a ditch of nothing. Mosquito control comes out and they park their vehicles in front of our homes, and they come back and service the ditch. We keep it cleaned. We keep it maintained. We realize that we live in Virginia Beach, and we got a lot of mosquitoes. That's no problem. If it would give us ten extra feet of yard, that would be a big bonus for us. Donald Horsley: My main concern is drainage. And I'm sure the City at site plan review will take care of that. Item #3 Reformed Baptist Church of Virginia Beach Page 5 Tina Milligan: That is fine. It is not up to us at this point in the juncture to agree or disagree, but if it could remain open that would be our desire as a possibility. Donald Horsley: I appreciate your willingness to work with the applicant. I really do. We haven't had much of that lately. Tina Milligan: I know. They are going to be so happy to see me up here with a smile on my face. He is a nice man. Like I said, we met for the first time for the first and he addressed our concerns last night. Janice Anderson: Great. Tina Milligan: Does anyone else have any questions? Everybody is smiling. David Redmond: I have a question about this chain you say to be secure and locked when not use. Where did you envision that going? Tina Milligan: Anywhere. It wouldn't even have to be visible from the street because of this long drive. He could put it back here. He could put it here. He could put it there. His concern was that he didn't want to post stay out signs. It is a church. You're supposed to welcome parishioners; so, to amend that he could put it there. David Redmond: What would be the purpose of that? Tina Milligan: We live in a neighborhood. Did you see the property? It is tucked in. It is very secluded. We have a lot of busy teenagers in our neighborhood. We've had parking issues with them. We've had drug busts within our neighborhood park. If you create a safe spot for our youth to misbehave, they are going to use the moment and do so. We just want to prevent a problem that we know we have. We just don't want it to spread to our backyards. It is already in our neighborhood park. It is already into the street light in front of my house, beside my house, because I'm missing a street light. That's another issue. It will be back there. Before Dam Neck Road came through, Newcastle Elementary had the best parking lot in that part of town. Now Dam Neck Road goes through, so that kind of opened that up. Does everyone kind of understand where I'm trying to go with this? David Redmond: I think I do but I'm not sure. Teenagers and misbehaving are kind of going to go together. Tina Milligan: Well its drugs. It is a serous thing. It is not just teenagers being teenagers and egging houses. They are selling drugs. David Redmond: Yeah. My only concern is if you get obviously. You know churches are used for all sort of different things besides Sunday services. Tina Milligan: It is exactly right. I've addressed that with Joe last night. Item #3 Reformed Baptist Church of Virginia Beach Page 6 David Redmond: You might have some sort of immediate sort of meet me there at 10:00. I'll be glad to talk to you about such and such. You have an appointment. Somebody come out to look at the place. It just strikes me that if you string a chain across it, it is going to create problems anytime you do that. When we went out to the site, I spent time looking behind me out of the back of the van trying to make sure that we were going back out on the road. It was not easy to do. You had to keep a close eye out for the cars. So, my concern would be if that occurs, it's got to be way up to the church. I'm not sure that is really going to address any problem with crime or drugs. Tina Milligan: It will stop the four-wheel traffic. What we actually hoped was, and we were open for discussion, because we know it is a church and they don't have a big budget. One of our members said what about one of those arms that swing. You could put a key pad on it. A key padded loci: that like everybody's garage door has that would be very accessible for all the parishioners. This area right here (pointing to PowerPoint) is actually going to be open. This house is going to be demolished. So, in actuality this entire thing is going to be open if you're worried about safety. David Redmond: I am. What I'm worried about is somebody pulling in their car and immediately pulling out because he just ran into a chain or a gate or a fence or something like that. Tina Milligan: But it is along drive. I appreciate your current concern for safety. I'm a member of that community. But it is a very long drive. The Pastor was agreeable to a solution. David Redmond: Okay. Janice Anderson: Go ahead Don. Tina Milligan: He; doesn't have any opposition to it. David Redmond: I understand he does. But I'm still not sure it is a good idea. If he is okay with it, I suppose 1"m okay with it. Donald Horsley: Along with what Dave is talking about, the safety would be a better concern if the gate, was at the road so people wouldn't turn in there period. There is a church on Salem Road closer to North Landing that does have a gate. They have a pike gate that shuts. Tina Milligan: The community church? Donald Horsley: Yes. I guess they put it up for the same reasons. The closer you have it to the road would de-:er people from turning in period. They wouldn't have to worry about turning around. Item #3 Reformed Baptist Church of Virginia Beach Page 7 Janice Anderson: We're going to ask him to come back up and address the matters that you addressed. They will get another chance. Are there any other questions? David Redmond: Thank you. Tina Milligan: You're welcome. Thank you for your time. Donald Horsley: That is the only speaker. Janice Anderson: Mr. Galvin? Donald Horsley: Unless they have some more speakers. Eric Galvin: Again, Eric Galvin. Like she said we are agreeable to the concept and we would put the fenced area or the gated at the back end of the drive. You wouldn't want it at the front end of the drive for various reasons. People would have to stop and get out of their car or on the road. It would cause a lot of problems. If they are happy with that solution, we're happy with that solution to have it in the back. We would proffer that condition. Janice Anderson: Okay. I think they're mainly worried at night or something to have it gated and people know they can't get back there. Eugene Crabtree: Jan, just one thing. Janice Anderson: Yes. Go ahead Gene. Eugene Crabtree: Wherever you do put the gate just make sure is sufficient room for a car to turn around if they come to that driveway and they get to a gate that they have room to turn around; that they don't have to back down that entire drive. Eric Galvin: Yes sir. We have room where the proposed BMP is right here to create some type of turnaround condition. Eugene Crabtree: Okay. Janice Anderson Go ahead Al. Al Henley: I have a question for you. To your knowledge, and I know you're early in the game, but do you intend to install some night lighting, some watch lighting or something on the church property for night? Eric Galvin: As far as our intentions go, it was not too, I believe. Is that correct Joe? There would be no safety lighting. Anything that was required by code we would do. Al Henley: Just as a recommendation, I know at our church we had a problem with people Item #3 Reformed Baptist Church of Virginia Beach Page 8 that would park in the parking lot at night and what have you. We installed, and it appears to be street lights, and they would come on an automatic timer at sundown. And it lights the area. We found out to, it really served a good purpose for vandalism. It might be something you would want to consider, and I think it would be helpful to check on the insurance for night lighting around the perimeter of the church. It may be beneficial to you. Eric Galvin: It sounds like it would be nothing but a positive. Al Henley: Yes. Eric Galvin: For the church and the neighborhood. Yes sir. Janice Anderson: Are there any other questions? Jay Bemas: I do. Janice Anderson: Yes Jay. Jay Bernas: One of these proposed proffers by the civic league, I don't know if you're amenable to this, but I would like to restructure the wording of the filling of the ditch. It is probably more appropriate to say to regrade the rear of the property and address any drainage issues as opposed to putting it in the proffers. I'm going to fill the ditch. They are probably going to address that at site plan review, but I just want to make sure you're comfortable with anything that entails that you might have to put a drop inlet for whatever so you capture that sheet flow from the parking lot or whatever. Eric Galvin: According to code, we would have to deal with any upstream/downstream drainage coming on to our property. We would address it. Jay Bernas: Okay Janice Anderson: Mr. Galvin, if I could go over with you? The staff has written out five conditions. Eric Galvin: Yes ma'am. Janice Anderson: Would you be agreeable to expansion of those conditions as follows? One of the conditions is that your site plan, your landscaping, would be substantially the same as depicted there. But your plan does show a 40 foot landscape buffer. I think that condition is in there, but I believe the community wants it specifically to mention the 40 foot buffer. So that would be satisfactory to you? Eric Galvin: Yes rna'am. Janice Anderson: Okay. The second is the locked entrance. Item #3 Reformed Baptist Church of Virginia Beach Page 9 Eric Galvin: Yes ma'am. Janice Anderson: That you agreed to. The third would be as Mr. Bemas said if there is extra material left from your BMP, you would fill in that ditch upon approval of Public Works. Eric Galvin: Right. The way he just said it, I would probably provide positive drainage. Janice Anderson: Drainage. Right. Jay Bemas: Regrade the rear of the lot, and account for any of the drainage issues. Janice Anderson That would be on that position. Ronald Ripley: I want to add something about the tapered lane. I do want to see a slight tapered lane, a feasible right turn lane into the property. Janice Anderson: Okay. Ronald Ripley: Add that too. Janice Anderson: Do you own that property in that corner? Yes you do. Eric Galvin: All the property is owned by Pastor Gillam. Janice Anderson: So a tapered lane. Ronald Ripley: Where feasible. Janice Anderson: Okay, where feasible. Stephen White: Madame Chairman? Janice Anderson: Yes. Stephen White: Staff has a little bit of an issue with making a condition about filling the ditch. We will be glad to include a note in the plan for site plan review that that ditch should be filled if the applicant has material necessary. But to go as far as to say that it would be regraded. In that process of regarding, you may lose those trees that are being required as a buffer. So, plus the area that we're talking about is, I believe the ditch is actually off the site. So, rather than make it a condition, it would be better if we just make a note that we'll work with the applicant during site plan review to make sure that happens. Janice Anderson: Jay? Jay Bemas: Yes. I wasn't aware that it was off the site. Item #3 Reformed Baptist Church of Virginia Beach Page 10 Janice Anderson: Okay. Thank you. Eric Galvin: It is in a strange location where it is right on the site line, kind of off the property. Janice Anderson: So, it may not be part of your property? Eric Galvin: Correct. Janice Anderson: We'll use that as a note and not a condition. Okay. Are there any other questions for Mr. Galvin? Thank you sir. I'll open it up for discussion or a motion. Donald Horsley: " ll make a motion that the application be approved with the conditions as stated in our agenda, and add two conditions now since we've taken the one about the grading off, the two conditions, the one about the gate and the other one about the minimum tree buffer. Janice Anderson: How about the lane? Donald Ripley: The tapered lane? Janice Anderson: Yes, the tapered lane. Donald Horsley: Yes. Ron's tapered lane. Janice Anderson: It would be three. Donald Horsley: Where feasible. Janice Anderson: Where feasible. We have a motion by Don Horsley and a second by Jay Bernas. AYE 11 NAY 0 ABS 0 ABSENT 0 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY AYE KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Item #3 Reformed Baptist Church of Virginia Beach Page 11 Ed Weeden: By a vote of 11-0, the Board has approved the application of Reformed Baptist Church of Virginia Beach with the conditions as stated and the three added conditions. Janice Anderson: Thank you Ms. Milligan. Thank you Mr. Galvin. CHRISIrIAN HOUSE OF PRAYER AA— F 7 _ _ "" Christian Church of Prayer—Virginia, Inc. Map Not to Scale CUP - Church Relevant Information: • Roses Hall District • The applicant requests a Conditional Use Permit to occupy the approximately 4,700 square feet of the existing building for a church. • There is adequate parking on the property to meet the church's needs at this time, as the site plan depicts 25 spaces. Evaluation and Recommendation: • Planning Staff recommended approval • Planning Commission recommends approval (10-0) • Thea; was no opposition. • Consent agenda. 1 1} `" yp CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: CHRISTIAN HOUSE OF PRAYER VIRGINIA, INC., Conditional Use Permit, religious services, 333 Edwin Drive. ROSE HALL DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant requests a Conditional Use Permit to occupy an existing 4,700 square foot building for a church. Additional church activities, beyond worship services, include prayer meetings and outreach services. The site is surrounded by office and light industrial uses and office and industrial zoning districts to the north, south, and west and by Mount Trashmore Park to the east. The site is zoned 0-2 Office. ■ Considerations: The site plan depicts the existing structure and 28 parking spaces. Based on the parking requirements of the Zoning Ordinance for a church (1 space per 5 seats), the maximum number of individuals in the church will be limited to 140; however, the final occupancy is set by the Building Official's Office. The application states there are no more than 40 members in the church. There is adequate parking on the property to meet the church's needs at this time, as the site plan depicts 25 spaces. It should be noted that the final occupancy is set by the Building Official's Office. The proposal is in conformance with the Comprehensive Plan's recommendations for this area and compatible to the adjacent business area. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve the request with the following condition: 1. A Final Certificate of Occupancy shall be obtained from the Building Official's Office prior to occupancy. ■ Attachments: Staff Review Disclosure Statement Planning Commission Minutes Location Map Christian House of Prayer —Virginia, Inc. Page 2 of 2 Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: City Manager: Planning Department Ile CUP - Church REQUEST: Conditional Use Permit (religious services) ADDRESS / DESCRIPTION: 333 Edwin Drive # 6 April 8, 2009 Public Hearing APPLICANT: CHRISTIAN HOUSE OF PRAYER -- VIRGINIA, INC. PROPERTY OWNER: JACK RABBIT/J.C. ASPINWALL, III STAFF PLANNER: Carolyn A.K. Smith GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 14777002080000 ROSE HALL 38,600 square feet Less than 65 d6 DNL The applicant requests a Conditional Use Permit to occupy the SUMMARY OF REQUEST approximately 4,700 square feet of the existing building for a church. The site plan depicts the existing structure and 28 parking spaces. Based on the parking requirements of the Zoning Ordinance for a church (1 space per 5 seats), the maximum number of individuals in the church will be limited to 140; however, the final occupancy is set by the Building Official's Office. The application states there are no more than 40 members in the church. LAND USE AND ZONING INFORMATION EXISTING LAND USE: 4,700 square foot building with parking lot SURROUNDING LAND North: . Undeveloped strip of land / 0-2 Office District USE AND ZONING: . Expressway Drive • Office / 0-2 Office District South: , Office / 0-2 Office District CHRISTIAN HOUSE OF PRAYER I ASPINWALL Agenda Item 6 Page 1 East: . Edwin Drive • Mount Trashmore City Park / P-1 Preservation District West: . Office/ 1-1 Industrial District NATURAL RESOURCE AND The majority of the site is impervious as it is developed with a building CULTURAL FEATURES: and parking lot. There do not appear to be any significant environmental or cultural features on the site. IMPACT ON CITY SERVICES MASTER T%kNSPORTATION PLAN (MTP) /CAPITAL IMPROVEMENT PROGRAM (CIP): Edwin Drive is a two (2) lane undivided local street. TRAFFIC: Street Name Present Volume Present Capacity Generated Traffic Edwin Drive No Data No Data Available Existing Land Use — 55 Available ADT Proposed Land Use s —44 ADT Weekday 178 ADT Sunda Average Daily Trips Y as defined by typical 4,860 s.f. office use Sas defined by 4,860 s.f. church use WATER & SEWER: This site is already connected to both City water and sewer. EVALUATION AND RECOMMENDATION Recommendation: Staff recommends approval of this request with the conditions below. Comprehensive Plan: The Comprehensive Plan designates this site as part of the Primary Residential Area. The land use planning policies and principles for the Primary Residential Area includes reinforcing the suburban characteristics of commercial centers and other non-residential areas that make up part of the Primary Residential Area. In a general sense, the established type, size, and relationship of land use, both residential and non-residential, located in and around, in this case the Mount Trashmore area, should serve as a guide when considering future development. Evaluation: The proposal is in conformance with the Comprehensive Plan's recommendations for this area and compatible to the adjacent business area. The site is surrounded by office and light industrial uses and CHRISTIAN HOUSE OF PRAYER f ASPINWALL Agenda Itail'n 6 Page 2 office and industrial zoning districts to the north, south, and west and by Mount Trashmore Park to the east. While the site is below the minimum three (3) acre requirement, the church understands that there is minimal opportunity to expand on this site, and when they outgrow the occupancy limits imposed by the Building Official's Office, they will be forced to relocate. The church currently has 40 members. The Zoning Ordinance requires one (1) parking space for every five (5) seats and with 40 members or seats in the church, the total parking requirement is only eight (8) spaces. There is adequate parking on the property to meet the church's needs at this time, as the site plan depicts 25 spaces. It should be noted that the final occupancy is set by the Building Official's Office. Additional church activities, beyond worship services, include prayer meetings and outreach services. Staff supports this request and recommends approval subject to the condition below. CONDITIONS 1. A Final Certificate of Occupancy shall be obtained from the Building Official's Office prior to occupancy. NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. CHRISTIAN HOUSE OF PRAYERIASPINWALL Agenda Item 6 Page 3 AERIAL pF SITE LOCATION USE OF pRAYER 1 Aendla Ite L6 CHRISTIAN HO Ag page 4 �� nI 1W"HI 3I _ p gl r Va W WD�w p a0i « a w, ,j S C)3p a o cx C,' ._— N Vp J ✓� �r,c4`.t S, Q yt� 2 H t�.. OZ2Z,zw [ a D w Vlp t I WZYt4 CC p 1mu Z0-tT !x 4 t_0 _-h F u °np �i tl QQr'K 'i1 Q Uao,j _ z a a w, a o cx C,' ..., ?70"91 ✓� �r,c4`.t S, Q yt� 2 H t�.. t2 r z [ r i C E Q to ,00051 SITE SURVEY CHRISTIAN HOUSE OF PRAYER, ASPINWALL Agenda Item 6 Page 5 a a w, ..., ?70"91 H t�.. t2 r z [ r i C E Q �i tl W i J co I W 4 ?u.. 0 ms iikl 6,A) 7 �° 3A160 NIM43 SITE SURVEY CHRISTIAN HOUSE OF PRAYER, ASPINWALL Agenda Item 6 Page 5 1 05/27/08 Modification of Proffers Granted 07/09/96 Change of Zoning 0-2 to 1-1 Granted 2 08/09/95 Change of Zoning (0-2 to 0-1) Granted Subdivision Variance ZONING HISTORY CHRISTIAN HOUSE OF PRAYER I ASPINWLL Agenda Item -6 Pale 6 APPUCANT DISCLOSURE If or other uninco w4rated organization, complete the following. 1, Utt the applicant name followed by the names of all officers, memb_rs. trustees, partners, etc. below: (Attach W it necomsary) 2, Ust all nesses'that have a parent -subsidiary' or affiliated business entity2 relationship with the applicant {,Attach fist it necessary) 0 Chock twe If the applicant is NOT a corporation, partnership, firm, business, or other unincorporated organizabon. MM74FUNM&gMJMLQ"-•1=011UN 0 Check here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organizatiwI Does an oftal or employee of the City Of Virginia Beach have an interest in ft subject land? Yes No If y1s, what is the name of the official or employee and the naWre of their interest? 9 Amb r--IMMMIW-� CHRISTIAN HOUSE OF PRAYER/ ASPINWALL Agenda Itelm, Page r 1-101M"A -- - lff�N! A Earn& bamienha 4545 South lk)ulevard a VirgirL3 general partnership Virginia Beach, VA 23452 1045 Curlew Drive Virginia Beach, VA 23451 a Virgirtia limited liability company do 11 P. Aspinwall 501 waterw1wd Road Climpeake. V`A 23322 ctrl Marolyn D-.AWirtwall. 1170 SWChapman Way, # 101 Palm City. FL 34990 11w-&wQ1= a Vitia limited liaWity company 06 Nwwy BrWgts 2665 %v-er 14)ad Virginia Beacli, VA 23454 0o Mary Nivers 2 1 C15 Ni w Avenue vtrgirw Beach, VA 23451 c !0 James bell 487 Hwurin Drive Hampton, VA 2,5666 901 Ffolladati Point Virg,= Beach, VA 23451 3,„Iter$ iter 6608 (kcan Front Avenue Virginia Beach, VA 2 3451 cici S. Frank Bluo-ker, Ir. a Virginia corporation P,O box 14219 Norfolk, VA 23518 Noverntier 10, 2&16 DISCLOSURE STATEMENT CHRISTIAN HOUSE OF PRAYER I ASPINWALL Agenda Item 6 Page 9 KAUIFMAN & CANOLES Attorneys and Counseiors at Law 3 cbrli.o,, 11. 2olN t .arclyn Smile a. I laaner % sr*tm t Bt:ac-h Plmlfunl,� C €artarnik;iion 24U5 f.::�:..zarthc>ct4c� C?qrk%c:.. 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A9 kcc', 1t t+, 21,st 11m,"'„'kt�kd or 44iimn ht I he pra t7T:14 nen I" be 'u:„c l,'in"I it ranbear be t9"cd bv the trc"Iyalcr, for thy. porp T 1,' „rl 9d'a•"1tli11" €.1 , k.aefWt�9c`K dw ma” be tanyRis cl on the maa, kpxt c:r h% the hitvimd itet'c nut ',Vm-ic c, 6 }�n,1f?K':9ia+; ;'t,&iEE�4r i7 '�i; L���„tt �:i"iks '�,t➢r'i SA. �So,3<fPY <vit.�?. '�,ii:.V. t.. DISCLOSURE STATEMENT CHRISTIAN HOUSE OF PRAYER } ASPINW ALL Agenda Item 6 Page 10 Item #6 Christian Church of Prayer Virginia, Inc. Conditional Use Permit 333 Edwin Drive District 3 Rose Hall April 8, 2009 CONSENT Joseph Strange: The next matter is agenda item 6, an application of Christian Church of Prayer Virginia, Inc. for a Conditional Use Permit for religious services on property located at 333 Edwin Drive, District 3, Rose Hall, with one (1) condition. John Richardson: Good afternoon Madame Chairman and Commissioners, my name is John Richardson, I'm a local attorney. I represent the applicant in this matter. The condition imposed is acceptable to the applicant. Joseph Strange: Okay. Thank you very much. John Richardson: Thank you. Joseph Strange: Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Gene Crabtree to review this item. Eugene Crabtree: This site is a site that depicts a church to go into an existing structure on Edwin Drive. It has sufficient parking spaces to handle the church. It will seat up to 140 people within this building, however, the church has only requested enough space for 40 members. It is in an office park. It is across the street from Mount Trashmore Park. It is in an area that will not be intrusive to any neighborhood or anything like that. Staff has recommended approval for this. It has one condition with it, and therefore we put it on the consent agenda. Joseph Strange: Thank you Gene. Madame Chairman, I will make a motion to approve agenda item 6. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. AYE 10 NAY 0 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY KATSIAS AYE ABS 0 ABSENT 1 ABSENT Item #6 Christian Church of Prayer Virginia, Inc. Page 2 LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 6 for consent. 1 r z f 'l riL4�w CITY OF VIRGINIA BEACH AGENDA ITEM , ITEM: GROUND ZERO CHURCH, Conditional Use Permit, religious facility, 485 South Lynnhaven Road (GPIN 1496183564). ROSE HALL DISTRICT MEETING DATE: May 12, 2009 ■ Background: The applicant requests a Conditional Use Permit to operate a religious facility in one of the units of an existing shopping center. The applicant will lease a 1,150 square foot suite of a 30,707 square foot retail building located at 485 S. Lynnhaven Road. ■ Considerations: The church currently occupies the space, being unaware of the requirement for a Conditional Use Permit. The applicant proposes to hold religious services on Sundays, from 10:30 a.m. to 2:00 p.m., and Wednesdays, from 7:00 p.m. to 9:00 p.m. A Youth Outreach group meets on Saturdays, from 11:00 a.m. to 3:00 p.m. The church currently has 25 to 30 attendees. The submitted site plan indicates there are 144 parking spaces on the site. Based on the fact that the proposed church has peak operational hours different from traditional business hours, staff finds that the site's 144 parking spaces located on-site are sufficient for this use and the others in the system. The Zoning Ordinance requires only six (6) parking spaces for a church with 30 seats. The applicant will be required to obtain an occupancy permit from the Department of Planning / Permits and Inspections Division, which will ensure that all Building Code and Fire Code requirements are fulfilled. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve this request with the following conditions: 1. The number of individuals attending any one service shall not exceed the occupancy number established by the City's Fire Marshall. 2. The applicant shall obtain all necessary permits and inspections from the Planning Department / Permits and Inspections Division and the Fire GROUND ZERO CHURCH Page 2 of 2 Department. The applicant shall obtain a Certificate of Occupancy for the change of use from the Building Official. ■ Attachments: Staff Revi ew Disclosure Statement Planning Commission Minutes Location IVlap Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Dep;artment/Agency: Planning Department ; T-3 City ManagerCt!7 KL ,<Z�dft* ■ ■ I April 8, 2009 Public Hearing APPLICANT: GROUND ZERO CHURCH PROPERTY OWNER: J.L. HARRELL III & REQUEST: Conditional Use Permit for a religious facility in an existing shopping center ADDRESS / DESCRIPTION: 485 S. Lynnhaven Road ASSOCIATES STAFF PLANNER: Leslie Bonilla GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 1496183564 ROSE HALL 2.9 acres 70 to 75 dB DNL APPLICATION HISTORY: This item was deferred at the March 11, 2009 public hearing due to the improper posting of the public notice sign. SUMMARY OF REQUEST The applicant requests a Conditional Use Permit to operate a religious facility in one of the units of an existing shopping center. The applicant will lease a 1,150 square foot suite of a 30,707 square foot retail building located at 485 S. Lynnhaven Road. The church currently occupies the space, being unaware of the requirement for a Conditional Use Permit. The applicant proposes to hold religious services on Sundays, from 10:30 a.m. to 2:00 p.m., and Wednesdays, from 7:00 p.m. to 9:00 p.m. A Youth Outreach group meets on Saturdays, from 11:00 a.m. to 3:00 p.m. The church currently has 25 to 30 attendees. The submitted site plan indicates there are 144 parking spaces on the site. No additional landscaping, parking lot alterations, or exterior building modifications are proposed. GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 1 LAND USE AND ZONING INFORMATION EXISTING LAIVD USE: Shopping center SURROUNDING LAND North: . Single-family dwellings / R-7.5 Residential District USE AND ZONING: . Vacant land / R-2.5 Residential District South: . Childcare center / B-2 Community Business District • Single-family dwellings / R-7.5 Residential District East: . South Lynnhaven Road Across South Lynnhaven Road are multi -family dwellings / A-18 Apartment District West: . Single-family dwellings / R-7.5 Residential District NATURAL RESOURCE AND A portion of the property is located within the Chesapeake Bay CULTURAL FEATURES: Preservation Area. No new development is proposed. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): South Lynnhaven Road at this location is a four -lane minor urban arterial roadway. It is not designated on the City's Master Transportation Plan. South Lynnhaven Road is not listed in the CIP to be upgraded. TRAFFIC: Street Name Present Volume Present Capacity Generated Traffic South Lynnhaven 19,400 ADT 22,800 ADT (Level of Existing Land Use — 70 Road Service "D") ADT Proposed Land Use 3-15 ADT on Weekdays and 60 ADT on Sundays Average Daily Trips 2 as defined by 1,600 square foot retail space 3 as defined by 1,600 square foot church WATER: The site is already connected to the City water system. SEWER: This site is already connected to the City sanitary sewer system. GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 2 Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this request with the conditions below. Comprehensive Plan: The Comprehensive Plan designates this area as a Primary Residential Area. The land use planning policies and principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value and aesthetic quality of the stable neighborhoods located in this area. Evaluation: The proposed church use is located within an Air Installation Compatible Use Zone (AICUZ) of 70 to 75 dB DNL. Churches and related facilities are considered compatible; however, the applicant must ensure compliance with noise level reduction features as set forth in the Virginia Uniform Statewide Building Code. The church is compatible with other commercial uses within the shopping center and will not negatively impact any neighboring properties. The site plan depicts 144 spaces. Based on the fact that the proposed church has peak operational hours different from traditional business hours, staff finds that the site's 144 parking spaces located on-site are sufficient for this use and the others in the system. The Zoning Ordinance requires only six (6) parking spaces for a church with 30 seats. The applicant will be required to obtain an occupancy permit from the Department of Planning / Permits and Inspections Division, which will ensure that all Building Code and Fire Code requirements are fulfilled. Thus, this application is recommended for approval subject to the conditions listed below. CONDITIONS 1. The number of individuals attending any one service shall not exceed the occupancy number established by the City's Fire Marshall. 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. NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 3 AERIAL OF SITE LOCATION GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 4 et- 4 �7t 41 71 91 Eel vqll 'vy kr` a f 1" y�. -------- SITE PLAN ShIOWING CHU RCN LOCATION IN BLACK ARRELt III & ASSOC, ZERO CHURCH H Agenda Item 24 GROUND page 5 PHOTOGRAPH OF PROPOSED LEASE SPACE GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 6 FDISCLOSURE STATEMENT' APPLICANT DISCLOSURE If te applicant is a corporation, partnership firm business, or other unincorporated organization. complete the following, 1. List the applicant name followed by the names of all officers, members, trustees, Dartners, etc below {Attach list if necessary) 2. List all businesses that have a parent -subsidiary' or affi relationship with the applicant: (Attach list if necessary) business ently, 0 Check here if the applicant is NOT a corporation. partnership firm, business, or other unincorporated organization ,(. PROPERTY OWNER DISCLOSURE Complete this section only if property owner is different from applicant, If the property owner is a corporation, partnership, firm, business, or other unincorporated organization, complete the following. 1. List the property owner name followed by the names of all officers, members, trustees, partners, etc below: (Attach list if necessary) 2. List all businesses that have a parent -subsidiary' or affiliated business enbty2 relationship with the applicant, (Attach list if necessary) Check here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organization. &� 'r See next pagfor footnotes I --e-- poets an official or employee of the City of Virginia Beach have an interest in the subject land? Yes _ No if yes, what is the name of the official or employee and the nature of their interest? Cwxiaiw at Use Pem* Ap^Mon Page go' 10 Revmed,"W200`7 i0oj GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item, 24 Page 8 DISCLOSURE STATEMENT 11 ADDITIONAL DISCLOSURES List all known contractors or businesses that have or will provide services with respect to the requested property use. including but not limited to the providers of architectural services, real estate services, financial services accounting services, and legal services: (Attach list if necessary) "Parent -subsidiary relationship" means 'a relationship that e xists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. 2 -Affiliated business entity relationship" means 'a relationship, other than parent - subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (Ji) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities. there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities " See State and Local Government Conflict of Interests Act, Va, Code 22-3101 CERTIFICATfON: I certify that the information contained herein is true and accurate I understand that upon receipt of notification (postcard) that the application has been scheduled for public hearing I am responsible for obtaining and posting the required sign on the suoJect property at least 30 days prior to the scheduled public hearing according to the instructions in this package The undersigned also consents to entry upon the sublect property by employees of the Department of Planning to photograph and vi the site for purposes of processing and evaluating this application Ao6licant's S€anature Pnnt Name a =7 different than applicant.) Print Name Gonmov! Use PMMA AppfiCAWn Page 10 of 10 ROVISed laqoo? GROUND ZERO CHURCH / J.L HARRELL III & ASSOC. Agenda Item 24 Page 9 Item #24 Ground Zero C.4urch Conditional Us,,- Permit 485 South Lynnhaven Road District 3 Rose Hall April 8, 2009 CONSENT Joseph Strange: The next item is item 24, an application of Ground Zero Church for a Conditional Use Permit for a religious facility on property at 485 South Lynnhaven Road, District 3, Rose Hall, with two (2) conditions. Janice Anderson: Welcome. Pastor Michael Etheridge: Good afternoon. I'm Pastor Michael Etheridge. I'm in agreement with all the conditions and thank you guys for your time. Joseph Strange: Thank you very much Pastor. Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Gene Crabtree to review this item. Eugene Crabtree: Once again, this is a church that has been operating for some time not realizing they needed a Conditional Use Permit. It is in a small shopping mall. There have been various things in this shopping mall before. In fact the place where this church is at this present moment, has been used for quite a few different things. And consequently, the church is a more desirable use of this prop.-rty I think, than some of the previous ones. There is no objection to anyone in the area in the surrounding community. This is in a noise zone from Oceana, but it is not in a noise zone that would preclude it from being used as a church. Therefore, it is not in opposition from any of the AICUZ people. There is plenty of parking spaces in this particular place for this church. It should not have any adverse impact on the surrounding community. The staff has recommended approval of it, and there are two (2) conditions with this application. Therefore, we have put it on the consent agenda. Joseph Strange: Thank you Gene. Madame Chairman, I will make a motion to approve agenda item 24. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. ANDERSON BERNAS CRABTREE HENLEY HORSLEY AYE 10 NAY 0 AYE AYE AYE AYE ABS 0 ABSENT 1 ABSENT Item #24 Ground Zero Church Page 2 KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved 24 for consent. Janice Anderson: Thank you. I want to thank all the applicants for coming down that were on the consent agenda today and appreciate you all visiting with us this afternoon. Thank you very much. I- I rc zj CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: FAITH TEMPLE CHURCH, Conditional Use Permit, church, 152-B South Plaza Trail. ROSE HALL DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant requests a Conditional Use Permit for a church within a portion of an existing retail center. The Comprehensive Plan designates this area as a Primary Residential Area. The land use planning policies and principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value, and aesthetic quality of the stable neighborhoods located in this area. In a general sense, the established type, size, and relationship of land use, both residential and non-residential, located in and around these neighborhoods should serve as a guide when considering future development. ■ Considerations: The office hours for the church will be Monday through Friday from 2:00 p.m. until 9:00 p.m. Counseling is available everyday by appointment. During the week, there will be three to five volunteer church members in the office. There will be one service on Sunday each week and a monthly Sunday evening service from 5:00 p.m. until 9:00 p.m. The maximum attendance for church services is 25 individuals. There is a weekly Bible study class on Tuesday evenings from 6:30 p.m. until 9:00 p.m. This proposal to use this unit as a church is compatible with the other uses within the center, as well as with the adjacent neighborhood. The facility has adequate parking. Church uses characteristically have a "non -rush hour" traffic pattern and are compatible with commercial and office land uses. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve this request with the following conditions: 1. The applicant shall comply with all applicable City requirements for building codes, including fire safety and suppression, required for a change of use Faith Temple Church Page 2 of 2 from commercial to a place of assembly prior to commencing church activities. This includes a Fire Inspection, a Fire Code Permit, and a Certificate of Occupancy from the Building Official's Office. 2. The number of congregants at anytime shall not exceed the occupancy number for the unit as established by the Fire Marshall. ■ Attachments: Staff Review _ Disclosure Statement Planning Commission Minutes Location Map Recommended .Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department Vv City Manager. REQUEST: Conditional Use Permit (church) ADDRESS / DESCRIPTION: 152 South Plaza Trail # 16 April 8, 2009 Public Hearing APPLICANT: FAITH TEMPLE CHURCH PROPERTY OWNER: ANDRIANOS TOUZOS STAFF PLANNER: Karen Prochilo GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 14878341560000 BEACH 6 20,176 SF 65 - 70 dB DNL Lease Size: 1,000 SF SUMMARY OF REQUEST The applicant requests a Conditional Use Permit for a church within a portion of an existing retail center. The office hours for the church will be Monday through Friday from 2:00 p.m. until 9:00 p.m. Counseling is available everyday by appointment. During the week, there will be three to five volunteer church members in the office. There will be one service on Sunday each week and a monthly Sunday evening service from 5:00 p.m. until 9:00 p.m. The maximum attendance for church services is 25 individuals. There is a weekly Bible study class on Tuesday evenings from 6:30 p.m. until 9:00 p.m. LAND USE AND ZONING INFORMATION EXISTING LAND USE: Commercial business and retail center SURROUNDING LAND North: . U -haul rental facility / B-2 Community Business District USE AND ZONING: South: . Retail under construction / B-2 Community Business District FAITH TEMPLE CHURCH Agenda Item 16 Page 1 East: . Multi-family/A-36 Apartment District West: . Across South Plaza Trail single-family homes / R-7.5 Residential District NATURAL RESOURCE AND There are no significant natural resources or cultural features on this CULTURAL FEATURES: property, as it is entirely impervious. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM_(CIP): South Plaza Trail is a two lane minor suburban arterial. No Traffic impacts associated with this proposal. TRAFFIC: Street Name Present Volume Present Capacity Generated Traffic South Plaza Trial 10,600 ADT 13,600 ADT (Level of Existing Land Use — Service "C") — 80 ADT 15,000 ADT 1 (Level of Proposed Land Use 3— Service "D") - Capacity 10 ADT Average Daily Trips Y as defined by 1000 SF retail Sas defined by 1000 SF church WATER & SEWER; This site is already connected to City water and sewer. FIRE: Applicant must obtain a Certificate of Occupancy prior to utilizing this space for this use (assembly use). Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this request with the conditions below. Comprehensive Plan: The Comprehensive Plan designates this area as a Primary Residential Area. The land use planning policies and principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value, and aesthetic quality of the stable neighborhoods located in this area. In a general sense, the established type, size, and relationship of land use, both residential and non- residential, located in and around these neighborhoods should serve as a guide when considering future development. Evaluation: This proposal for a church is in conformance with the Comprehensive Plan's recommendations for this area. The proposal to use this unit as a church is compatible with the other uses within the center, as well FAITH TEMPLE CHURCH Agenda Item 16 Page 2 as with the adjacent neighborhood. The facility has adequate parking. Church uses characteristically have a "non -rush hour" traffic pattern and are compatible with commercial and office land uses. CONDITIONS 1. The applicant shall comply with all applicable City requirements for building codes, including fire safety and suppression, required for a change of use from commercial to a place of assembly prior to commencing church activities. This includes a Fire Inspection, a Fire Code Permit, and a Certificate of Occupancy from the Building Official's Office. 2. The number of congregants at anytime shall not exceed the occupancy -number for the unit as established by the Fire Marshall. NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. FAITH TEMPLE CHURCH Agenda Item 16 Page 3 AERIAL OF SITE LOCATION FAITH TEMPLE CHURCH Agenda Item 16 Page 4 TMI: W VO 6'lM "P V TMAT 1. CN l.ri _' � 1 �� UMVVMb TFK PWWK !Tr AIIiOW" ON TW ftJX. ANOTWAT TM TITLM WNW .ANG TMM WN.ti CW TM NURAP S AM AS Ml io ll- Co TIO= PLAN TtiR M"LpltM . .tWMMVLV W"WN THE TrILZ LAOti AIS TOM MtZ no 4W CTMMIR §LWAV O ON TM P"P"M, U=Wl ASWOMCDaMOMfN - torr to 2 ssW-%d si ( Sou -r" � F'. A ZA 1904 EXISTING SITE PLAN FAITH TEMPLE CHURCH Agenda item 16 Page 5 ioWisgoxf SUM PAWN TEMPLE 4, HERALD OF TRUTH wwwftmms t wwwwwou""M I L & OJEAU Ir Y S 4 - BUILDING PHOTOGRAPHS FAITH TEMPLE CHURCH Agenda Item 16 Page 6 -V. 777 P"�L S.�4 L .p DISCLOSURE STATEMENT APPLICANT DISCLOSURE If the applicant is a corporation. partnership firrn business, or other unincorporated organization complete the following, 1. Li the applicant name followed by the names of all officers, members, trustees partners etc. below- (Attach list if necessary) 2. List all businesses that have a parent -subsidiary' or affiliated business entity' relationship with the applicant: (Attach list if necessary) O Check here if the applicant is NOT a corporation, partnership firm business or _ o•:her unincorporated organization. PROPERTY OWNER DISCLOSURE Coni o%te this section only if property owner is different from applicant, If the property owner is a corporation partnership firm, business or ether unincorporated organization, complete the following. t List the property owner name followed by the names of all officers, members tr.istees. partners, etc. below, (Attach Inst if necessary) 2 List all businesses that have a parent- subsidiary' or affiliated business entity relationship with the applicant. (Attach list if necessary) .. _...... _..._.._. C! Check here it the property owner is NOT a corporation partnership firm business, or other unincorporated organization. E `See next page for footnotes Goes an official or employee of the City of Virginia Beach have an interest in the subject land? Yes No ._.._..... - If yes ghat is the name of the official or employee and the mature; of their interest? C,,oi,1 tr,o si G,,,,� AnrAxa 14n -n FAITH TEMPLE CHURCH Agenda Item 16 Page 8 i jj � r i DISCLOSURE STATEMENT ADDITIONAL DISCLOSURES List all known contractors or businesses that have or witl provide services with respect to the requested property use, including but not limited to the providers of architectural services, real estate services financial services, accounting services and legal services iAttach list if necessary) Parent -subsidiary relationship' means "a relatioriship that ex;sts when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation-' See State and Lo"! Government Conflict of inter"ts Act. Va Code § 2.2«3101 Affiliated business entity relationship" means "a relationship. other than parent subsidiary relationship that exists when fit one business entity has a controlling ownership interest in the other business entity , (ji) a controlling owner in one entity is also a controlling owner in the other entity or (iii) there is shared management or control between the business entities Factors that should be considered in determining the exrstence of air affiliated business entity relationship include that the sane person or substantially the same person own or manage the two entitiesthere are common or commingled funds at assets: the business entities share the use of the same offices or employees or otherwise share activities resources of personnel an a regular basis, or there is otherwise a close working relationship between the enthes.' See State and Local Government Conflict of interests Act Va Code 22-3101 CERTIFICATION, I tert!fy that the mfDrrna1Ucn corlamed mere is traie aid acc, step I inderstand that upon receipt of notification epos card) that the appiicator has been scheduied for pubfic hearing I am r spons6e for obtaining and posting e � the required sign on tree Subject property at least 30 days poor to Me sr.,neduiod public hearing acccedaig to the mstiuctioris in this package The undersigned also consents to entry upon the si ibject property by employees of tne Department of Planmrg to ohotograph and view the site for purposes L � licati of prcx�essirjq an_,j eval��atinq�s an t p v) . . . . .... .. . ......... PnO ria .e �V Property Owner S €,4 differer',t!han aioplic.antPriv! Name n,l Uo'41 AWX,. t r'aq e `f 0 1 r; --I -V2007 DISCLOSURE STATEMENT FAITH TEMPLE CHURCH Agenda Item 16 Page 9 Item #16 Faith Temple Church/Touzos Family, L.P. Conditional Use Permit 152-B South Plaza Trail District 3 Rose Hall April 8, 2009 CONSENT Joseph Strange: The next item is item 16, an application of Faith Temple Church for a Conditional Use Permit for a church on property located at 152B South Plaza Trail, District 2, Rose Hall, with two (2) conditions. Janice Anderson: Welcome. Darryl Bridges: Good afternoon. My name is Pastor Darryl Bridges and I am representing Faith Temple Church. We accept the conditions of the Board. Joseph Strange: Thank you very much. Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Gene Crabtree to review this item. Eugene Crabtree: This is a church that is in a little strip mall. It has been operating for some time. They didn't realize they needed a Conditional Use Permit. It does serve the community in which it stands. It serves as a counseling venue for some of the people who live in the area. And in this area behind this (church) there has in the past have had some difficulty within the neighborhood and therefore the counseling and the church is of value to the community. They plan to hold services on Sunday each morning and one Sunday evening a month. They will hold some bible services during the week, and they will have some classes during the week but primarily other than that it will be for counseling of the people within this neighborhood. And, therefore we have put it on the consent agenda. Joseph Strange: Thank you very much Gene. Madame Chairman, I will make a motion to approve agenda item 16. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. AYE 10 NAY 0 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY KATSIAS AYE LIVAS AYE ABS 0 ABSENT 1 ABSENT Item #16 Faith Temple Church/Touzos Family, L.P. Page 2 REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 16 for consent. HARVEY ORR n,C 11 to rr Bat"�•` 911. am 0 Wj � � r �- ..�,;: k KNOW '41 CUP for Home Occupation (Furniture Maker) Relevant Information: • Centerville District • The applicant requests a Conditional Use Permit for a home occupation. The applicant is a craftsman who designs and constructs unique custom made furniture from his home. • The Existing garage has been modified to accommodate the applicant's combination hobby - business. • The applicant has no employees and proposes to meet with clients by appointment only, one (1) client at a time. Evaluation and Recommendation: • Planning Staff recommended approval • Planning Commission recommends approval (10-0) • There was no opposition. • Consent agenda. C� ar CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: HARVEY ORR, Conditional Use Permit, home occupation (woodworking), 1545 Harbor View Cove. CENTERVILLE DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant requests a Conditional Use Permit for a home occupation. The applicant is a craftsman who designs and constructs unique custom made furniture from his home. The dwelling is located in a single-family residential area zoned R-7.5 Residential. ■ Considerations: The existing garage of the house has been renovated to accommodate the applicant's combination hobby - business. The renovation also included insulation on all sides of the renovated space for temperature and noise control. A Dust Collector System and Air Filtration and Cleaner Unit have been installed to keep the environment as dust free as possible. The applicant has no employees and proposes to meet with clients by appointment only, one (1) client at a time. Thus far all clients have been through word of mouth. No external advertising is on the property. Materials and supplies are usually picked up from local retailers with occasional mail order deliveries of hardware or small supplies. Most pieces are commissioned and require between two to four months for completion. The home occupation on this site will not adversely impact any surrounding properties. The Lake Christopher Homes Association has provided a letter of support of this request (see end of the attached staff report). The proposed use is consistent with the criteria outlined in Section 234 of the City Zoning Ordinance for a Home Occupation Use Permit. From the exterior of the house, business activity associated with the proposed home occupation will be virtually undetectable and the existing attached garage will serve as the work space for the applicant's small business. There will be no employees other than the applicant, and there will be very few customers coming to the house, one (1) at a time, by appointment only. Harvey Orr Page 2of2 ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve this request with the following conditions: 1. In accordance with Section 234 of the City Zoning Ordinance, not more than 20 percent of the floor area of the dwelling unit and accessory structures shall be used in conjunction with the home occupation. 2. No permanent signs advertising the business shall be permitted, other than one (1) as specifically permitted under Section 234 of the City Zoning Ordinance, on the premises or installed on the lot or buildings on the lot at any time. 3. Sales to the general public of product or merchandise shall not be permitted on the property. 4. The home occupation shall not create noise, dust, vibration, smell, smoke, glare, electrical interference, fire hazard, or any other hazard or nuisance to any greater or more frequent extent than would normally be expected in the neighborhood under normal circumstances wherein no home occupation exists. 5. All storage of materials, supplies, and equipment associated with the requested home occupation use shall occur inside of the existing accessory structure. ■ Attachments: Staff Review Disclosure Statement Planning Commission Minutes Location Map Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department s City Manage : r;A Lake Chrmopher Hnme Occunation 91 REQUEST: Conditional Use Permit (Home Occupation — Furniture Maker) ADDRESS / DESCRIPTION: 1545 Harbor View Cove. # 14 April 8, 2009 Public Hearing APPLICANT / PROPERTY OWNER: HARVEY ORR STAFF PLANNER: Karen Prochilo GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 14653486390000 CENTERVILLE 9,884 square feet Less than 65 dB DNL SUMMARY OF REQUEST The applicant requests a Conditional Use Permit for a home occupation. The applicant is a craftsman who designs and constructs unique custom made furniture from his home. The existing garage has been modified to accommodate the applicant's combination hobby - business. The modification also included insulation on all sides of the renovated space for temperature and noise control. A Dust Collector System and Air Filtration /Cleaner Unit have been installed to keep the environment as dust free as possible. The applicant has no employees and proposes to meet with clients by appointment only, one (1) client at a time. Thus far all clients have been through word of mouth. No external advertising is on the property. Materials and supplies are usually picked up from local retailers with occasional mail order deliveries of hardware or small supplies. Most pieces commissioned take between two to four months to complete. LAND USE AND ZONING INFORMATION EXISTING LAND USE: Single family dwelling SURROUNDING LAND North: Across Christopher Drive, single family dwellings / R-7.5 USE AND ZONING: Residential District HARVEY tRR Agenda Item14 Page 1 South: . Single family dwellings / R-7.5 Residential District East: . Across Harbor View Cove, single family dwellings / R-7.5 Residential District West: . Single-family dwellings / R-7.5 Residential District NATURAL RESOURCE AND There are no significant environmental or cultural features associated CULTURAL FEATURES: with this residential property. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): The proposed use is not anticipated to generate traffic beyond that of a typical residential use. Harbor View Cove and Christopher Drive are two (2) lane local streets in the vicinity of this site. Neither street is included in the MTP nor are there currently any CIP projects scheduled for these segments. WATER and SEWER: This site is already connected to both City water and sewer. FIRE: No Fire Department comments at this time. EVALUATION AND RECOMMENDATION Recommendation: Staff recommends approval of this request with the conditions below. Comprehensive Plan: This site is located in a Primary Residential Area. The Comprehensive Plan Policy document reinforces the suburban characteristics found in residential areas. Home occupations that meet the requirements established in the City Zoning Ordinance are appropriate conditional uses within residential districts. The proposal is in conformance with the Comprehensive Plan's recommendations for this area. The proposal is compatible with the adjacent residential neighborhood as well as the business areas. The exterior building materials used reflect the materials used within the residential neighborhood adjacent to this property. Evaluation: It is not anticipated that the home occupation on this site will adversely impact any surrounding properties. The Lake Christopher Homes Association has provided a letter of support of this request ( see end of this report). The proposed use is consistent with the criteria outlined in the definition of "home occupation." In addition, Section 234 of the City Zoning Ordinance specifies the following standards for Home Occupation Use Permit: HARVEY ORR Agenda Item 14 Page 2 (a) Not more than twenty (20) percent of the floor area of the dwelling unit and accessory structures shall be used in the conduct of the activity. Provided, however, this limitation shall not have application to family day-care homes. (b) No traffic, including traffic by commercial delivery vehicles, shall be generated by such activity in greater volumes than would normally be expected in the neighborhood, and any need for parking generated by the conduct of such activity shall be met off the street and other than in a required front yard. (c) No identification sign shall be permitted. However, as an exception, the City Council, upon a finding that a sign would not be detrimental to the surrounding neighborhood, may as a condition of the use permit allow up to one (1) sign, non -illuminated, not to exceed one (t) square foot in area, mounted flat against the wall of the residence. (d) No use shall create noise, dust, vibration, smell, smoke, glare, electrical interference, fire hazard, or any other hazard or nuisance to any greater or more frequent extent than would normally be expected in the neighborhood under normal circumstances wherein no home occupation exists. (e) The following uses are specifically excluded: Convalescent or nursing homes, tourist homes, massage parlors, radio or television repair shops, auto repair shops, or similar establishments. Home occupations, such as this request, can be appropriate conditional uses within residential areas provided the above requirements are followed. The minimal activity expected by the applicant is not likely to adversely impact the surrounding properties in any way. From the exterior of the house, business activity associated with the proposed home occupation will be virtually undetectable and the existing attached garage will serve as the work space for the applicant's small business. There will be no employees other than the applicant, and very few customers coming to the house, one (1) at a time, by appointment only. Thus, based on these findings, Staff recommends approval of the proposed use subject to conditions that would protect the integrity of the adjacent residential neighborhoods. CONDITIONS 1. In accordance with Section 234 of the City Zoning Ordinance, not more than 20 percent of the floor area of the dwelling unit and accessory structures shall be used in conjunction with the home occupation. 2. No permanent signs advertising the business shall be permitted, other than one (1) as specifically permitted under Section 234 of the City Zoning Ordinance, on the premises or installed on the lot or buildings on the lot at any time. 3. Sales to the general public of product or merchandise shall not be permitted on the property. 4. The home occupation shall not create noise, dust, vibration, smell, smoke, glare, electrical interference, fire hazard, or any other hazard or nuisance to any greater or more frequent extent than would normally be expected in the neighborhood under normal circumstances wherein no home occupation exists. HARVEY ORR Agenda Item 14 Page 3 5. All storage of materials, supplies and equipment associated with the requested home occupation use shall occur inside of the existing accessory structure. NOTE. Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applfcable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. HARVEY ORR Agenda Item 14 Page 4 N HARvt'f SRR pgenda Item 1 a Page LOT 9 0.27 IN 6q 28' IP s 20 IN FENCE t`3 Ill LOT 10 Q 5' DRAINAGE & U-nUTY ESM'T. tP{f} M.B.114 PG.32 7D 1:3 N w 14.8 10.8 10, b 1! HT1 1.9' 2 STORY Q LOT 1 i R BRICK & FRAME 1545 0 J 27.0' rn 2.2' IN ....... ..... . .3' 0. td- 11.1' Lel to 1 Ip(F) N !!! CD 00 IP(F) cn tP{t"} L-15.4 Ip( � S 43-0336" W 78.48` R-10 PROPOSED SITE PLAN HARVEY ORR Agenda Item 14 page 6 BUILDING ELEVATION HARVEY ORR Agenda Item 14 Page 7 „ r , k ,• 1 r. t►� „r• C�:. #. Mo - No zoning history to report. ZONING HISTORY HARVEY ORR Agenda Item 14 Page 8 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If the applicant is a corporation, partnership, firm business o= other unincorporated organization, complete the foilowing: 1. List the applicant name followed by the names of all officers members trustees partners, etc below (Attach list if necessary.) 11 2. List all businesses that have a parent -subsidiary' or affiliated business entity' relationship with the applicant: (Attach list if necessaty) 0 Check here if the applicant is NOT a corporation, partnership firm business, or other unincorporated organization PROPERTY OWNER DISCLOSURE Cornplefe this section only, if property owner is different iron) apjAcant If the property owner is a corporation partnership, firm, business, or other unincorporated organization, complete the following 1. List the property owner name followed by the names of all officers members trustees, partners, etc below f'Aftach hst if necessmy) 2, List all businesses that have a parent -subsidiary' or affiliated business entity2 relationship with the applicant- (Attach list if necessary) 0 Check here if the prop" owner is NOTa corporation, partnership firm business. or other unincorporated organization. F & Se,-- nex" page, for footnotes Does an official or employee of the City of Virginia Beach have an interest in the subject land? Yes No If Yes what is the name of the official or employee and the nature of their interest? HARVEY ORR Agenda Item 14 Page 9 '"Z PF 0 -dell At P .04WR EMM0E !�t DISCLOSURE+ ADDITIONAL DISCLOSURE List all known contractors or businesses that have or will provide services with respect to the requested 0170perty use, inclsding but not IlMited to the providers of architectural services, real estate services, financial services accounting services ane legal services" +;Attach list If necessary) 'Parent -subsidiary retatiorship means 'a relation$ lip that e xists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation ` See State and Local Government Conflict of Interests Fact Va. Code § 2 2-3101 Affiliated business entity relationship mean% 'a relationship other than parent• st bsidtw y relationship, that exists omen lip one busyness entity has a controlling ownership interest in the other business entity 6ii a controlling ow net, in one entity is also a controlling owner in the other entity or (iii) there is shared management or control between the business entities, Factors that should be considerted in determining the existence of an affiliated business entity relationship include that the sante person or si_sbsiantialty the same person own or manage the two entities there are con-rnaon or Commingled funds or assets. the business entities share the use of the same offices or employees or otherwise share activities resources or personnel on a regular bastis, or there is otherwise a close working re labonship between the ent€t€es.=, Sept State and Local Government Conflict of Interests Act Va_ Cone 2 2 °3101. CERTIFICATION: i certify that tnea €nformancn coma ed herein i� true anc accurate I understand tbal uvon re wt t of nn fiat z i posh ar d=, that the appl;catzon has peen s+ heduted for pubiis, hearing I arr respons bse for btaimng an > post=nq the roue re c♦rgn r_.n tn£ �'uoje t proFerty at ;esst 31 days cnor to the s7!hedi.Aeo pubis hr aimg according m the instfurt€ons . this package Thf, undersigned a sr Ese e to ertr a upon the subject property by empoyees of •he Departrlent of Plann!ng to p.=hn oa ,4rh a to •t ev✓ the sate f ), purposes of pfocessmg rano evati. Jima tNs app[:cat on ,,^,gill an s iqE i,EEr r€nf Narne !ITTerty Owner s E.l gnat€ire taf d fferent than a;-fp:i.c,.trrt+ Print Natr€e re; ,a y>g:rn 3 W' ,Ear •,,.+ dfl�trEatf '• ...... DISCLOSURE STATEMENT HARVEY ORR Agenda Item 14 Page 10 January 27, 2" Harvey Orr 1545 Harbor View Cove Vuginita Beach, VA 23464 RE: Conditional Use Permit — A uthoditation Dear Mr. Orr: Reference is made to your letter dated January 9, 2W9 rem at our office. In your letter you requested permission from the Board of Directors to construct and operate a workshop out of your horse within the Lake Christopher Homes Association. Your letter was forwarded to the Board of Directors for review and discussion at the January 2e Board Meeting. Please be advised that the Board of Directors has approved your request as submitted. You may include this letter with your application for the City of Virginia Beach Planning Board. We would Idle to take this opportzinity to duwk you for requesting authorization and utilizing the Proper channels of communication prior to applying for the permit with the City of Virginia . Beach, and we urge you to keep us informed of any new o=rrauces you feel may require the Board's involvement, Should you have any quer tons or require further assistance with this matter, please do not hesitate to contact our office. Respe«tkiuy, LAKE CHi3LSTOPMM HOMES ASSOCXATION Gayle Pi3iero, CMCAW Association Manager CC: Board of Directors File Community Association Management • 2224 YrginW Beach Boulnvord • Suites 201/202 • M44110 Beach, Wginio 23454 Phone (757) 486-600 - Fox (757} 486-6988 • e -mil: selecl@the z1sctg—p.us HARVEY ORR Agenda Item14 Page 11 Item #14 Harvey Orr Conditional Use Permit 1545 Harbor View Cove District 1 Centerville April 8, 2009 CONSENT Joseph Strange: The next item is item 14, an application of Harvey Orr for a Conditional Use Permit for a home occupation on property located at 1545 Harbor View Cove, District 1, Centerville, with -ave (5) conditions. Janice Anderson: Welcome. Harvey Orr: I'm :Harvey and I represent Harvey. Joseph Strange: Harvey, are the conditions acceptable? Harvey Orr: Yes sir. Joseph Strange: Alright. Thank you very much. Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Phil Russo to review this item. Philip Russo: The applicant is a craftsman who designs and constructs custom made furniture from his home. His garage has been modified to accommodate his hobby/business. The applicant has no employees and proposes to meet clients by appointment only, one client at a time. Therefore, any traffic impact will be minimal. The proposed use is not anticipated to generate traffic beyond that of a typical residential use. It is not anticipated that the home occupation will adversely impact any of these surrounding areas, and for these reasons, Planning has decided to put this on the consent agenda. Joseph Strange: Alright. Thank you Phil. Madame Chairman, i will make a motion to approve agenda item 14. Janice Anderson: [ have a motion by Joe Strange and a second by Kathy Katsias. AYE 10 NAY 0 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY KATSIAS AYE ABS 0 ABSENT 1 ABSENT Item #14 Harvey Orr Page 2 LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 14 for consent. - , sir a h CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: RICHMOND 20MHZ, LLC, DBA NTELOS, Conditional Use Permit, communications tower, 3429 Clubhouse Road. ROSE HALL DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant is seeking a Conditional Use Permit for a communication tower. The proposed location of the tower is on City -owned property adjacent to the Bow Creek Recreation Center. A lease for the property was approved by the City Council on January 27, 2009. ■ Considerations: The proposed communication tower will host four carriers, and will be 130 -foot tall with a 5 -foot lightning rod, for a total height of 135 feet. The tower is proposed as a stealth or "slick stick" style of monopole. The submitted site plan depicts a 2,750 -square foot lease area adjacent to the recreation center. The plan also depicts a proposed 10 -foot by 18 -foot (10'x 18) steel platform on which the generator and cabinets will sit. Chain-link fencing with black vinyl slats will enclose the leased area. The applicant searched the area for collocation availability and was unable to locate an existing tower or a structure tall enough to meet the network needs. The proposed tower will accommodate four (4) users, and the applicant has advised staff that T -Mobile has notified the applicant of their intent to collocate on the tower. Based upon the information submitted, staff concludes that the request conforms to the regulations of Section 232 of the City Zoning Ordinance. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve this request with the following conditions: The site shall be developed substantially in accordance with the submitted development plans entitled "Ntelos Proposed 130 -foot Monopole Tower, NR - 5432 -Bow Creek, 3429 Clubhouse Road, Virginia Beach, VA 23452", prepared by Terradon, and dated 1/30/09. Said plans have been exhibited to the Virginia Beach City Council and are on file in the Virginia Beach Department of Planning. Richmond 20Mhz, L.L.C. dba N-Telos Page 2 of 2 2. Any buildings within the Conditional Use Permit area shall have a full exterior facade of brick, to match the neighboring recreation center, and a hipped roof, as approved by the Department of Parks and Recreation. 3. The landscape plan shall be modified from that submitted with the Conditional Use Permit preliminary site plan, subject to the approval of the Department of Parka and Recreation, to include: a Replacement of the Leyland Cypress trees with loblolly pines or other comparable trees; and b. Expansion of the northern landscape buffer area for the duration of the Conditional Use Permit / lease area to include a mixture of wax myrtles and oleanders to match existing landscape buffer in the Bow Creek Neighborhood Park. 4. The landscape buffer required with the Conditional Use Permit shall be maintained by the applicant. 5. All landscape or improved area of the Conditional Use Permit area that are disturbed associated with the development or on-going conditional use shall be mitigated by the applicant to the satisfaction of the Department of Parks and Recreation. 6. All fencing surrounding the proposed tower and lease area shall match the existing Bow Creek Neighborhood Park fencing as approved by the Department of Parks and Recreation. 7. The Existing fence separating the Bow Creek Golf Course and the west side of they recreation center shall be modified with a gate to provide access to the tower and lease area. Said gate shall match the existing fencing as approved by the, Department of Parks and Recreation. 8. The proposed tower shall not exceed 135 feet in overall height. 9. In the event interference with any City emergency communications facilities arises from the user(s) of this tower, the user(s) shall take all measures reasonably necessary to correct and eliminate the interference. If the interference cannot be eliminated within a reasonable time, the user shall ceasE: operation to the extent necessary to stop the interference. 10. In the event that antennae on the tower and or the tower are inactive for a period of one (1) year, the tower shall be removed at the applicant's expense. ■ Attachments: Staff Revi ew Disclosure; Statement Planning Commission Minutes Location Map Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department City Manager—�- CUP - Communication Tower REQUEST: Conditional Use Permit (communication tower) ADDRESS / DESCRIPTION: 3429 Clubhouse Road # 73 April 8, 2009 Public Hearing APPLICANT: RICHMOND 20MHZ, L.L.C. D/B/A/ N -TE LOS PROPERTY OWNER: CITY OF VIRGINIA BEACH STAFF PLANNER: Faith Christie GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 14867883310000 ROSEHALL 2,750 square feet 65-70 dB DNL; Sub Area 3 The applicant is seeking a Conditional Use Permit for a SUMMARY OF REQUEST communication tower. The proposed communication tower will host four carriers, and will be 130 -foot tall with a 5 -foot lightning rod, for a total height of 135 feet. The tower is proposed as a stealth or "slick stick" style of monopole. The submitted site plan depicts a 2,750 - square foot lease area adjacent to the Bow Creek Recreation Center. The plan also depicts a proposed 10 -foot by 18 -foot (10' x 18') steel platform on which the generator and cabinets will sit. Chain-link fencing with black vinyl slats will enclose the leased area. The lease for the property was approved by the City Council on January 27, 2009 LAND USE AND ZONING INFORMATION EXISTING LAND USE: Bow Creek Recreation Center and Golf Course SURROUNDING LAND North: . Entrance Road and Parking for the Recreation Center / R-7.5 USE AND ZONING: Residential • Beyond that are single-family dwellings / R-7.5 Residential RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 1 South: . Bow Creek Golf Course / P-1 Preservation East: . Bow Creek Recreation Center / P-1 Preservation West: . Bow Creek Golf Course / P-1 Preservation NATURAL RESOURCE AND The proposed site is occupied by the Bow Creek Recreation Center and CULTURAL FEATURES: golf course. Portions of the site are within both the Resource Protection area and Resource Management area of the Chesapeake Bay Preservation Area. There are no substantial natural resources or cultural features associated with the site. IMPACT ON CITY SERVICES City services are not impacted by the request. Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this request with the conditions below. Comprehensive Plan: The Comprehensive Plan Map designates this area as part of the Primary Residential Area. The land use planning policies and. principles for the Primary Residential Area focus strongly on preserving and protecting the overall character, economic value, and aesthetic quality of the stable neighborhoods located in this area. Limited commercial or institutional activities providing desired goods or services to residential neighborhoods are considered acceptable uses provided effective measures are taken to ensure compatibility and non-proliferation of such activities. Evaluation: The request for a Conditional Use Permit for a Communication Tower is acceptable. The applicant searched the area for collocation availability and was unable to locate an existing tower or a structure tall enough to meet the network needs. The applicant also provided a structural report confirming the tower will be designed in accordance with the Virginia Uniform Statewide Building Code and will accommodate four carriers. The submitted NIER (non -ionizing electromagnetic radiation) report states "...the proposed operation at th's site would not result in exposure to the Public excessive levels of radio-frequency energy as defined by the FCC Rules and Regulations, specifically 47 CFR 1.1307, and that Ntelos' proposed operation is completely compliant". The applicant has notified, as required, surrounding property owners via postal mail of a meeting on April 1, 2009, where the applicant will present and discuss the project. The proposed tower will accommodate four (4) users, and the applicant has advised staff that T -Mobile has contacted them to co -locate. Based upon the information submitted, staff concludes that the request conforms to the regulations of Section 232 of the City Zoning Ordinance and therefore recommends approval of the request subject to the conditions listed below. RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 2 CONDITIONS 1. The site shall be developed substantially in accordance with the submitted development plans entitled "Ntelos Proposed 130 -foot Monopole Tower, NR -5432 -Bow Creek, 3429 Clubhouse Road, Virginia Beach, VA 23452", prepared by Terradon, and dated 1/30/09. Said plans have been exhibited to the Virginia Beach City Council and are on file in the Virginia Beach Department of Planning. 2. Any buildings within the Conditional Use Permit area shall have a full exterior facade of brick, to match the neighboring recreation center, and a hipped roof, as approved by the Department of Parks and Recreation. 3. The landscape plan shall be modified from that submitted with the Conditional Use Permit preliminary site plan, subject to the approval of the Department of Parks and Recreation, to include: a. Replacement of the Leyland Cypress trees with loblolly pines or other comparable trees; and b. Expansion of the northern landscape buffer area for the duration of the Conditional Use Permit / lease area to include a mixture of wax myrtles and oleanders to match existing landscape buffer in the Bow Creek Neighborhood Park. 4. The landscape buffer required with the Conditional Use Permit shall be maintained by the applicant. 5. All landscape or improved area of the Conditional Use Permit area that are disturbed associated with the development or on-going conditional use shall be mitigated by the applicant to the satisfaction of the Department of Parks and Recreation. 6. All fencing surrounding the proposed tower and lease area shall match the existing Bow Creek Neighborhood Park fencing as approved by the Department of Parks and Recreation. 7. The existing fence separating the Bow Creek Golf Course and the west side of the recreation center shall be modified with a gate to provide access to the tower and lease area. Said gate shall match the existing fencing as approved by the Department of Parks and Recreation. 8. The proposed tower shall not exceed 135 feet in overall height. 9. In the event interference with any City emergency communications facilities arises from the user(s) of this tower, the user(s) shall take all measures reasonably necessary to correct and eliminate the interference. If the interference cannot be eliminated within a reasonable time, the user shall cease operation to the extent necessary to stop the interference. 10. In the event that antennae on the tower and or the tower are inactive for a period of one year two yeaFs, the tower shall be removed at the applicant's expense. NOTE. Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 3 3 . -y Page 4 Jz if 41 g ip Ati W � 5 W.yg� Msa.4t� ij � � gill►�!i , � ,t� ', 1 MP 4l 1 — j i % (D ? ! TAXA F � !j CC,,, 1 00 it ?t b co i 5 \•. tt 1q � t esrezra � n t 00 a , to 00 C !t 4 f1 3 r'u YiRxYi1'^ --;� 1 W to rco W Mitts yd -'A [INS A> �f1SAS NII r 11KH11 - t \ PLAN OF SITE RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 5 U3 CD f „, t rco W Mitts yd -'A [INS A> �f1SAS NII r 11KH11 - t \ PLAN OF SITE RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 5 4 tit 'its 1 s 81 G it r r a 1 3Von sA ii nS rf d� a ,6 cs g Fit6X tf" <h,ss P% yetg;az3k •irb4{�yq,; i 5 muwmy rsG'w'iriauKe �''—.y'•, t 1 "��:arryxrr pROPOSED TOW11 ER VOCATION � L.C., DBA NTEL.OS RICH , MOND 20MHZ, Agenda Item 13 page 6 b� ggM e pROPOSED TOW11 ER VOCATION � L.C., DBA NTEL.OS RICH , MOND 20MHZ, Agenda Item 13 page 6 E � let a- Ir ------ - �- r _. - -- o' PROPOSED SITE AND ELEVATION PLAN RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 7 JI /✓ gl 3 .� hi PROPOSED SITE AND ELEVATION PLAN RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 7 not VIi IT. I M I 1�1 LANDSCAPE PLAN RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 8 VIEW FROM CLUBHOUSE ROAD RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 9 EXISTING PROVIDER COVERAGE RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 10 PROPOSED PROVIDER COVERAGE RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 11 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If Ftheapplicant is a corporation, partnership, firm, business, or other unincorporated organization, complete the following: I Lis a List the applicant name followed by the names of all officers, members, trustees, I t partners, s, artners, etc, below: (Attach list if necessary) rt r Seeattached. che See attached. . . . . ....... 2, List all businesses that have a parent -subsidiary' or affiliated business entity relationship with the applicant: (Attach list if necessary) See attached. 0 Check here if the applicant is NOT a corporation, partnership, firm, business, or other unincorporated organization. PROPERTY OWNER DISCLOSURE Complete this section only if property owner is different from applicant. If the property owner is a corporation, partnership. firm, business, or other unincorporated organization, complete the following: 1. List the property owner name followed by the names of all officers, members, trustees, partners, etc. below: (Attach list if necessary) N/A 2, List all businesses that have a parent -subsidiary' or affiliated business entity' relationship with the applicant: (Attach list if necessary) WA ....... . ... 0 Check here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organization. r _S _e, e— , 'n, e­x_t, page 6or _f o—o—t r� "o —te s ­ Does an official or employee of the City of Virginia Beach have an interest in the subject [arid? Yes No If yes, what is the name of the official or employee and the nature of their interest's Property is, owned by the City of Virgima Beach Ck)WvWmil Use Pernui App4catm, paw 9 a 10 Revs DISCLOSURE STATEMENT RICHMOND 20MHZ, L.L.C., DBA NTE OS Agenda Item 13 Page 13 DISCLOSURE STATEMENT ADDITIONAL DISCLOSURES List all known contractors or businesses that have or will provide services with respect to the requested property use, including but not limited to the providers of architectural services, real estate services, financial services, accounting services, and legal services: (Attach list if necessary) To be determined a fter approval 4 'Parent -subsidiary relationship' means "a retationshtp that exists when one corporation directly or indirectly owns shares possessing more than 50 percent of tate voting power of another corporation. See State and Local Government Conflict of Interests Act, Va, Cade § 2.2-3101. -Affiliated business entity relationship" means "a relationship, other than parent - subsidiary relatioriship. that exists when (i) one business entity has a controlling Ownership interest in the other business entity, (it) a controlling owner in one entity is also a controlling owner in tate other entity. or (iii) there is shared management or control between the business entities. Factors that Should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the Sallee person, own or manage the two entities: there are common or commingled funds or assets, the business entities share the use of the same offices or employees or otherwise share activities resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act., Ya. Code 2,2-3101 CERTIFICATION: I certify that the informwationcontained herein is true arrd accurate. I understand that, upon receipt of notification (postcard) that the applit*,ation has been scheduled for public hearing, I arcs responsible for obtaining and posting the required sign on the si.ib;ect property at least 30 days prior to the Scheduled pudic hearing according to the instructions in this package The undersigned also consents to entry upon the subject property by employees of the Department of Ptann4ng to phelograaph arise view the site for purposes of ,proce=ssing and evaluating this applic=ation k1wc Corneil flli ntS&€nature Print Name Property t3wner's Sicynatu*e (if different than apptic;aitt) Print Nairne i" c*rsdtr�xrutt (),,e Nr W AptSk„z#M DISCLOSURE STATEMENT RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 14 Writtet C;Dgserr l Sole$ Wiei7i:e* ir, _i!n'(. sxl Annua' FAestinp o� Meambem duns .. 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C.^.i: °.s; €°i. ?�i{.i:;`: b.YF: :,• "° :a" r€{...,="°1"i'�" :�a.C' a'iw " "•":'!u'"1; '#: ...:P' ,�.a::,. =s»>r viz: ..`,»"ez..' i :•"1? .,,:""i:i.." sr" is lie '„ ��NR Y ::^" aM°a fs E. �`rsi»rN: w3 {.";E• .`,').^.i:3c'1"•'' :<i'„ ;,tt Yu..t 3' Y.7ai. ,.:v VV-, a,- D. ,iiF i'+4elrDe, n a- m;"gra E'."•a :.i v' t:is; a"ts" e'.1c- anu the R=S aVED, ,".si: -s' .. :'rw€'. s;g'tve, sa% :S: t. !ullllw" RFS:)' V„ € °*. , ;ry. iM . 3'onseri y° zDie 'Membe, r — "nnua tftset"rn' E{ftvm ';`a 8-alDe 1=nle» it lft the €'"€Basle« ^„3 t — ;)-x,, dln 0` IncmetT'€b,—& & Inc `5igratu ixw aaPear a- t;t lohow€"r page .j DISCLOSURE STATEMENT RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 15 r .,,'�(; iw;3.sH�� ,, ..€�: Ci` »'•.;.;Sz�_ ��+��,tr;r �- t i�T,�.�.� 'ri.. 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S,'; t, , ..t _ ., [`7 ,s ».,... il'.�.,...It�i .: ; t 'Ames ouan"o"ti DISCLOSURE STATEMENT RICHMOND 20MHZ, L.L.C., DBA NTELOS Agenda Item 13 Page 17 Item #13 Richmond 20MHz, L.L.C. d/b/a NTelos — City of Virginia Beach Conditional Use Permit 3429 Clubhouse Road District 3 Rose Hall April 8, 2009 CONSENT Joseph Strange: The next item is item 13, an application of Richmond 20MHz, L.L.C. d/b/a NTelos/City of Virginia Beach for a Conditional Use Permit for a communication tower on property located at 3429 Clubhouse Road, District 3, Rose Hall, with ten (10) conditions. Glenn Hampton: Once again, my name is Glenn Hampton here representing NTelos. We accept the conditions. I would like to again, thank Bill Macali in the City Attorney's Office. This may be the fast case that has come through with the new lease arrangement with the City, and the new streamline ordinance that provides good notice to everybody. But it also allows the City to work through this process with greater conditions. I would like to thank you all for that. Janice Anderson: Thank you. Joseph Strange: Okay. Thank you. Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Gene Crabtree to review this item. Eugene Crabtree: I think it has been pretty well explained already. But this is on City property. It is the Bow Creek Recreation Center and Bow Creek Golf Course. It is in an area that is not in danger to any of the golfers or of the balls hitting it; so, therefore it is not opposed by the golf community. And the community around it is not opposed to it. It is in a good area. It will serve the community and give them better communication services. As it was said this is a lease with the city to do this and get this in this area. Therefore, we put it on the consent agenda. Joseph Strange: Okay. Thank you Gene. Madame Chairman, I will make a motion to approve agenda item 13. Janice Anderson: 1 have a motion by Joe Strange and a second by Kathy Katsias. AYE 10 NAY 0 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY ABS 0 ABSENT 1 ABSENT Item #13 Richmond 20MHz, L.L.C. d/b/a NTelos — City of Virginia Beach Page 2 KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 13 for consent. EUCLID PROPERTIES Map E--7 Map Not to Scale D Zoning Change from R -5D to B-2 Relevant Information: • Kem,psville District • The applicant proposes to rezone the parcel, zoned R-513 Residential Duplex District, to Conditional B-2 Community Business District for the purpose of developing the site with an office building. • The applicant owns the existing office building to the northeast of the site, and it is the desire of the applicant to rezone this site, vacate the property line separating the two parcels, and develop an addition to the existing office building. Evaluation and Recommendation: • Planning Staff recommended approval • Planning Commission recommends approval (10-0) • Thera was no opposition. • Consent agenda. CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: EUCLID PROPERTIES, LLC, Change of Zoning District Classification, R-51) Residential Duplex District to Conditional B-2 Community Business District, 4756 Euclid Road. KEMPSVILLE DISTRICT. MEETING DATE: May 12, 2009 ■ Background: The applicant proposes to rezone the parcel, zoned R -5D Residential Duplex District, to Conditional B-2 Community Business District for the purpose of developing the site with an office building. The applicant owns the existing office building to the northeast of the site, and it is the desire of the applicant to rezone this site, vacate the property line separating the two parcels, and develop an addition to the existing office building. The Comprehensive Plan designates this site as part of Strategic Growth Area (SGA) 4 of the City of Virginia Beach. This Strategic Growth Area is comprised of three sub -areas including the Town Center, West Pembroke Area, and Bonney Road West Corridor. This site is located within the West Pembroke Area. Proposed uses within the West Pembroke Area should include a vertical mix of mid to high-rise residential uses and a variety of compatible, higher value non- residential uses including office, retail, publicly accessible, urban open space, entertainment, educational, institutional, and other similar urban activities. ■ Considerations: The submitted conceptual layout plan depicts the existing 7,406 square foot, two- story office building, and the proposed addition of 12,000 square feet. The existing parking and proposed parking are shown along the front and sides of the building. Parking lot, street frontage, and foundation landscaping as well as the required buffer along the residential properties to the north of the site are also depicted on the site plan. There are two entrances from Euclid Road, with the westernmost entrance as a right -in / right -out only, as there is no median break along this portion of Euclid Road. The existing office building is one of the most visually interesting buildings in the area. It is of Spanish style with a clay tile roof and cream color exterior insulation finish system (EIFS). Entrance to the existing building is defined by an octagon - shaped tower. First floor windows include half windows as decorative accents. Decorative ironwork also provides visual interest. The addition to the existing building will mimic the existing building design. Euclid Properties:, LLC Page 2of2 The request to rezone the property from R -5D Residential Duplex to Conditional B-2 Community Business and to develop the site with an addition to the existing office building to the northeast is appropriate. The request meets the recommendations of the Comprehensive Plan for this SGA, and is compatible with adjacent uses. This is the last residentially zoned parcel along this commercial section of Euclid Road, which is no longer appropriate for residential use. The applicant's proposal to match the site and architectural design of the adjacent parcel ensures a continuity of appearance within this section -of Euclid Road. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to approve this request, as proffered. ■ Attachments: Staff ReV ew Disclosure Statement Planning Commission Minutes Location IVlap Recommended .Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department City Manager: S " "V MOP M'P 14" Euclid UP g � I Conditional Zoning Change from R -51D to 13-2 # 7 April 8, 2009 Public Hearing APPLICANT AND PROPERTY OWNER: EUCLID PROPERTIES, LLC STAFF PLANNER: Faith Christie REQUEST: Conditional Change of Zoning (R -5D Residential to B-2 Community Business) ADDRESS / DESCRIPTION: Property located at 4756 Euclid Road GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 14773243350000 KEMPSVILLE 0.71 acres Less than 65 dB DNL The applicant proposes to rezone the parcel, zoned R -5D SUMMARY OF REQUEST Residential Duplex District, to Conditional B-2 Community Business District for the purpose of developing the site with an office building. The applicant owns the existing office building to the northeast of the site, and it is the desire of the applicant to rezone this site, vacate the property line separating the two parcels, and develop an addition to the existing office building. The submitted conceptual layout plan depicts the existing 7,406 square foot, two-story office building, and the proposed addition of 12,000 square feet. The existing parking and proposed parking are depicted along the front and sides of the building. Parking lot, street frontage, and foundation landscaping as well as the required buffer along the residential properties to the north of the site are also depicted. Two entrances from Euclid Road are depicted, with the westernmost entrance depicted as a right -in / right -out only, as there is no median break along this portion of Euclid Road. The existing office building is one of the most visually interesting buildings in the area. It is of Spanish design with a clay tile roof and cream color exterior insulation finish system (EIFS). Entrance to the existing building is defined by an octagon -shaped tower. First floor windows include half windows as EUCLID PROPERTIES L.C.C. Agenda Ite n 7 Page 1 decorative accents. Decorative ironwork also provides visual interest. The addition to the existing building will mimic the existing building design. LAND USE AND ZONING INFORMATION EXISTING LAND USE: A single-family dwelling currently occupies the site SURROUNDING LAND North: . Single-family dwellings/ R-7.5 Residential USE AND ZONING: South: . Euclid Road East: . Office Building / B-2 Community Business West: . Hotel / Conditional H-1 Hotel NATURAL RESOURCE AND There are no significant natural resources or cultural features associated CULTURAL FEATURES: with the site. IMPACT ON CITY SERVICES MASTER TRANSPORTATION PLAN (MTP) / CAPITAL IMPROVEMENT PROGRAM (CIP): Euclid Road in front of this request is a four -lane divided minor urban arterial. A Capital Improvement Project is slated for this area. The Pembroke Area Comprehensive Transportation Plan (CIP 2-238) is ongoing and involves a transportation study for the Central Business District surrounding Town Center. This study will develop short- term, mid-term, and long-term alternatives for transportation needs in the area. As part of the long-term improvements, there is currently a conceptual 1-264 road crossing that intersects with Euclid Road. Although this site will not be directly impacted by the roadway alignment, Euclid Road may see an increase in traffic from vehicles destined for the proposed roadway. However, note that no alternatives or alignments have been approved to this date. The applicant states that no additional employees will occupy the building. The addition is to relieve the current overcrowding of staff. Therefore, the Trip Generation assumes that no additional employees will be hired with the office building expansion per the Conditional Rezoning application. If the company does increase its number of employees in the future, the total Trip Generation will increase to 225 ADT with 31 vehicles in the AM peak hour and 5 in the PM peak hour. Since the proposed development falls within 3,000 feet of a state controlled highway, it is subject to the Traffic Impact Analysis Regulations under VDOT Section 527. However the proposed office size, assuming the same number of employees as the existing office size, does not generate the necessary number of trips for study. In fact, if the added office space was used for additional employees, the criteria for a study would still not be met. Therefore, a Traffic Impact Analysis is not required under the VDOT regulations. EUCLID PROPERTIES L.L.C. Agenda Item 7 Page 2 TRAFFIC: Street Name Present Volume Present Capacity Generated Traffic Euclid Road 6,982 ADT 14,800 ADT Existing Land Use — 96 ADT Proposed Land Use 3— 86 ADT (12 AM Peak Hour vehicles entering and 2 PM Peak Hour Vehicles enterin Average Daily Trips Y as defined by a single tenant office building and single-family dwelling 3 as defined by a single tenant office building with no increase in employees. WATER: There is an existing eight (8) inch City water main along Euclid Road. The site is connected to City water. SEWER: This site must connect to City sanitary sewer. Pump Station #466, the receiving pump station for this area, has capacity issues and may require a system modification. Due to the increase in building size and additional restroom facilities the applicant must submit a full engineering hydraulic analysis of Pump Station #466 and the sanitary sewer collection system to ensure future flows can be accommodated. There is existing eight (8) inch City gravity sanitary within a 30 -foot public utility easement along the adjacent western property. SCHOOLS: School populations are not affected by the request. Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this request with the submitted proffers. The proffers are provided below. Comprehensive Plan: The Comprehensive Plan designates this site as part of Strategic Growth Area (SGA) 4 of the City of Virginia Beach. This Strategic Growth Area is comprised of three sub -areas including the Town Center, West Pembroke Area, and Bonney Road West Corridor. This site is located within the West Pembroke Area. The Pembroke Strategic Growth Area consists of many tracts of land that differ widely with respect to type, intensity, character, and value of land use. This SGA enjoys a positional advantage within the City of Virginia Beach and the region. Significant investments and ongoing economic growth is occurring within many sectors of this SGA. Proposed uses within the West Pembroke Area should include a vertical mix of mid to high-rise residential uses and a variety of compatible, higher value non-residential uses including office, retail, publicly accessible, urban open space, entertainment, educational, institutional and other similar urban activities Evaluation: The request to rezone the property from R -5D Residential Duplex to Conditional B-2 Community Business and to develop the site with an addition to the existing office building to the northeast is appropriate. The request meets the recommendations of the Comprehensive Plan for this SGA, and is compatible with EUCLID PROPERTIES L.L.C. Agenda Iteln 7 Page 3 adjacent users. This is the last residentially zoned parcel along this commercial section of Euclid Road, which is no longer appropriate for residential use. The applicant's proposal to match the site and architectural design of the adjacent parcel ensures a continuity of appearance within this section of Euclid Road. Staff, therefore, recommends approval of the request as proffered. PROFFERS The following are proffers submitted by the applicant as part of a Conditional Zoning Agreement (CZA). The applicant, consistent with Sectio_ n 107(h) of the City Zoning Ordinance, has voluntarily submitted these proffers in an attempt to "offset identified problems to the extent that the proposed rezoning is acceptable," (§107(h)(1)). Should this application be approved, the proffers will be recorded at the Circuit Court and serve as conditions restricting the use of the property as proposed with this change of zoning. PROFFER 1: The Grantor, prior to converting the use to a business, shall improve the Property for use as an office building, with associated parking, with the maximum footprint of the building not to exceed 12,000 +/- square feet as depicted in the exhibit entitled: "Conceptual Site Layout Plan of Euclid Properties, LLC, 4752 Euclid Road, Virginia Beach, VA", dated November 1, 2007 (hereinafter the "Conceptual Plan"), which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Planning Department. PROFFER 2: The construction of an office building and associated parking located at 4756 Euclid Road, Virginia Beach, Virginia, may be conducted as a single project or in phases. However, construction of any single phase shall not impose any requirement for the construction of any subsequent phase. PROFFER 3: The Grantor may construct a freestanding office building or utilize and expand the existing structure located at 4752 Euclid Road, Virginia Beach, Virginia. Any construction, extension or renovation to be located on the Property shell be of similar or higher quality building materials as the materials used on the structure existing at 4752 Euclid Road or other neighboring parcels to maintain the integrity and cohesive nature of neighboring commercial properties. PROFFER 4: Further conditions lawfully imposed by applicable development ordinances may be required the Grantee during detailed site plan review and administration of applicable City Codes by all cognizant City agencies and departments to meet all applicable City Code requirements. STAFF COMMENTS: The proffers listed above are acceptable as they dictate the level of quality of the project. The City Attorney's Office has reviewed the proffer agreement dated November 10, 2008, and found it to be legally sufficient and in acceptable legal form. EUCLID PROPERTIES L.L.C. Agenda !tern 7 Page 4 NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. The applicant is encouraged to contact and work with the Crime Prevention Office within the Police Department for crime prevention techniques and Crime Prevention Through Environmental Design (CPTED) concepts and strategies as they pertain to this site. EUCLID PROPERTIES L.L.C. Agenda Item 7 Page 5 AERIAL OF SITE LOCATION EUCLID PROPERTIES L.L.C. Agenda Item 7 Page 6 PROPOSED SITE PLAN EUCLID PROPERTIES L.L.C. Agenda It+ern 7 Page 7 PROPOSED BUILDING ELEVATION EUCLID PROPERTIES L.C. Agenda Itein 7 Page 8 1. 1/23/90 Rezoning (R -5D Residential to Conditional H-1 Hotel Approved 2. 6/27/06 Rezoning (R -5D Residential to Conditional B-2 Business Approved 3. 2/25/85 Rezoning (R -5D Residential to B-2 Business Approved 4. 12/5/06 Conditional Use Permit Church Addition Approved 5. 4/5/05 Rezoning (A-12 Apartment to Conditional A-24 Apartment with a PD- H2 Planned Unit Overlay) Approved 6. 3/12/08 Rezoning (R -5D Residential to Conditional B-2 Business Withdrawn ZONING HISTORY EUCLID PROPERTIES L.L.C. Agenda Item 7 Page 9 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If the applicant is a corporation, partnership, firm, business, or other unincorporated organinition, complete the following, List the applicant name followed by the names of all officers, members trustees, ?ers, etc. below: (Attach list if necessary,1 UallidlProperties, LLC chnswow A, calcagm Manaw J, Daniel Oowning. manager 2. List all businesses that have a parent -subsidiary' or affiliated business entity relationship with the applicant. (Attach list it necessary) NIA 0 Check here 4 the applicant is NOT a corporation, partnarship. fiTm, business, or other unincorporated organization. PROPERTY OWNER DISCLOSURE COMP10149 this section Only it PrOPOrty owner is diftrent from applicant If the prtp" owner is a corporation, partnership, firm, business, or other u*corporated organization, complete the follovfing: List the property owner name followed by the names of all officers, members, :.,*0"rtLe6s etc. below: (A Mffach fist if necessary) Chrislopiw:A. Catagno, Manager J. Daniel Downing, Manager 2. List a.1 businesses that have a parent -subsidiary' or affiliated business entity' ' IArelatiins tip with the applicant, (Attach list if necessary) N T1 business, or other unincorporated organization, Does an official or employee of the, City of Virginia Beach have an interest in the subject land? Yes No EUCLID PROPERTIES L.I.C. Agenda Itern 7 Paga 10 DISCLOSURE STATEMENT ADD(TIONAL 011SCLOSURES List all known contractors or businesses that have or will provide services with respect to the requested property use, including but not limited to the providers of architectural services, real estate services, financial services. accounting services, and legal services: {{real list if necessa. rv) Huff, Poole Mahoney PC (Attorney,,' MSA RC (Land Planning and Civil Design) HBA Architecture J'Architect) GET Solutions (GW echrir-al) �Parenl-subsjdjary relationship' means -a relationship that exislis when one **rpv,ra1j*?,,f1rez0y *r intirz*jwFis-sXam pienssixg mire tX,2.x, 50 if like vilixt-_ power of another corporation" See State and Local Government Conffict of Interests Act, V* Code 2 'Affiliated business entity relationship' means 'a relationship. other than parent - subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a 00TOCAling owner in one entity is also a Wntrouing owner in the other entity, or (W) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities, there are common or commingled funds or assets-, the business entities share the use of the same offices or empioyees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities ' See State and Local Government Conflict of Interests Act, Ila. Code § Z2-3101 Applicant s Signature Property (>wner re (if different than pi rit) 7 P,nt Name Prim Name QmAttiW141 RerMW4 EUCLID PROPERTIES L.L.C. Agenda Item 7 Page 11 Item #7 Euclid Properties, L.L.C. Change of Zoning District Classification 4756 Euclid Road District 2 Kempsville April 8, 2009 CONSENT Joseph Strange: The next item is item 7, an application of Euclid Properties, L.L.C.-for a Change of Zoning District Classification from R-51) Residential Duplex District to Conditional B-2 Community Business District on property located at 4756 Euclid Road, District 2, Kemp sville, with four (4) proffers. Bryan Plumlee: Good afternoon. I'm Bryan Plumlee, Huff, Poole & Mahoney, here on behalf of Euclid :Properties. We're obviously in agreement with what has been proffered. We appreciate everyone's work on this matter. Thank you. Joseph Strange: Thank you very much. Is there any opposition to this matter being placed on the consent agenda? The Chairman has asked Henry Livas to review this item. Henry Livas: This rezoning request is for the purpose of developing the site with an office building. The applicant currently owns the existing office building to the northeast of the site, and it is the desire of the applicant to rezone the site, vacate the property line separating the two parcels, rind develop an addition to the existing office building. The existing office building is one of the most visually interesting buildings in the area. It is of Spanish design with a cream color exterior insulation finish system. The addition to the existing building will mimic the existing building design. The request to rezone the property and develop the site with an addition to the existing office building to the northeast is appropriate. The request also meets the recommendations of the Comprehensive Plan for this SGA and is compatible with adjacent land use. In fact, this is the last residentially zoned parcel along the commercial section of Euclid Road, which is no longer appropriate for residential use. Therefore, we have recommended approval of the requested change in zoning, and have placed it on the consent agenda. Joseph Strange: Okay. Thank you Henry. Madame Chairman, I will make a motion to approve agenda item 7. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. AYE 10 NAY 0 ABS 0 ABSENT 1 ANDERSON AYE BERNAS AYE CRABTREE AYE Item #7 Euclid Properties, L.L.C. Page 2 HENLEY AYE HORSLEY ABSENT KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE - Ed Weeden: By a vote of 10-0, the Board has approved item 7 for consent. In Reply Refer To Our File No. DF -7384 TO: Mark D. Stiles FROM: B. Kay Wilso�p CITY OF VIRGINIA BEACH INTER -OFFICE CORRESPONDENCE DATE: April 29, 2009 DEPT: City Attorney DEPT: City Attorney RE: Conditional Zoning Application; Euclid Properties, LLC The above -referenced conditional zoning application is scheduled to be heard by the City Council on May 12, 2009. 1 have reviewed the subject proffer agreement, dated November 10, 2008 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/ka Enclosure cc: Kathleen Hassen Document Prepared By: Huff, Poole & Mahoney, P.C. 4705 Columbus Street Virginia Beach, Virginia 23462 AGREEMENT This Agreement ("Agreement") is made this 10 day of , 2008, by and between EUCLID PROPERTIES, LLC, a Virginia limited liability company(hereinafter referred to as the "Grantor"), the Conditional Rezoning applicant and current owner of that certain property located in the City of Virginia Beach, as more particularly described below; and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (hereinafter referred to as the "Grantee"). WITNESSETH: WHEREAS, Grantor EUCLID PROPERTIES, LLC is the current owner of that certain property located in the City of Virginia Beach, Virginia identified by GPIN 1477-32- 4335, also described as 4756 Euclid Road, Virginia Beach, Virginia 23462 (more specifically described in Exhibit A attached hereto and hereinafter referred to as the "Property'), WHEREAS, Grantor has initiated an amendment to the Zoning Map of the City of Virginia Beach, Virginia, by petition addressed to the Grantee, so as to change the classification of the property from R-513 to Conditional B-2, WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes, including business purposes, through zoning and other land development legislation; and WHEREAS, the Grantor acknowledges that competing and sometimes incompatible uses conflict, and that in order to permit differing uses on and in the area of the subject Property and at the same time to recognize the effects of the 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 B- 2 are needed to cope with the situation to which the Grantor's rezoning application gives rise; and WHEREAS, the Grantor has voluntarily proffered in writing in advance of and prior to the public hearing before the Grantee, as part of the proposed conditional amendment to the Zoning Map, in addition to the regulations provided for in the existing B-2 zoning districts by the existing City's Zoning Ordinance (CZ), the following reasonable conditions related to the physical development, operation and use of the Property to be adopted as a part of said amendment to the new Zoning Map relative to the Property, all of which have GPIN NO. 1477-32-4335 a reasonable relation to the rezoning and the need for which is generated by the rezoning; and WHEREAS, said conditions having been proffered by the Grantor and allowed and accepted by the Grantee as part of the amendment to the Zoning Ordinance, such conditions shell continue in full force and effect until a subsequent amendment changes the zoning on the Property covered by such conditions; provided however, that such conditions shall continue despite a subsequent amendment if the subsequent amendment is part of the comprehensive- implementation of a new or substantially revised zoning ordinance, unless, notwithstanding the foregoing, these conditions are 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 subject Property at the time of recordation of such instrument; provided, further, that said instrument is consented to by the Grantee in writing as evidenced by a certified copy of the ordinance or resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee advertised pursuant to the provisions of the Code of Virginia, Section 15.2-2204, which said ordinance or resolution shall be recorded along with said instrument as conclusive evidence of such consent. NOW THEREFORE, the Grantor, for itself, its successors, assigns, grantees, and other successors in title or interest, voluntarily and without any requirement by or expectation from the Grantee or its governing body and without any element of compulsion of quid pro quo for zoning, rezoning, site plan or building permit, hereby makes the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation and use of the Property and hereby covenants and agrees that these proffers (collectively, the "Proffers") shall constitute covenants running with the said Property, which shalt be binding upon the Property and upon all parties and persons claiming under orthrough the Grantor, its heirs, personal representatives, assigns, grantees and ather successors in interest or title, upon the condition precedent that the Property is rezoned to Conditional B-2, namely: The Grantor, prior to converting the use to a business, shall improve the Property for use as an office building, with associated parking, with the rriaximum footprint of the building not to exceed 12,000 +I- square feet as depicted in the exhibit entitled: "Conceptual Site Layout Plan of Euclid Properties, LLC, 4752 Euclid Road, Virginia Beach, VA" dated December 1, 2007(hereinafter the "Concept Plan"), which was exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Planning Department. 2. The construction of an office building and associated parking located at 4756 Euclid Road, Virginia Beach, Virginia, may be conducted as a single project or in phases. However, construction of any single phase shall not impose 4 GPIN NO. 1471F-32-4335 any requirement for the construction of any subsequent phase. 3. The Grantor may construct a freestanding office building or utilize and expand the existing structure located at 4752 Euclid Road, Virginia Beach, Virginia. Any construction, extension or renovation to be located on the Property shall be of similar or higher quality building materials as the materials used on the structure existing at 4752 Euclid Road or other neighboring parcels to maintain the integrity and cohesive nature of all neighboring commercial parcels. 4. Further conditions lawfully imposed by applicable development ordinances may be required by the Grantee during detailed site plan 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 zoning districts and to regulations applicable thereto, refer to the City Zoning Ordinance of the City of Virginia Beach, in force as of the date the conditional zoning amendment is approved by the Grantee. The Grantor covenants and agrees 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, including (i) the ordering in writing of the remedying of any noncompliance with such conditions, and (ii) the bringing of legal action or suit to ensure compliance with such conditions, including mandatoryor prohibitory injunction, abatement, damages or other appropriate action, suit or proceedings; (2) the failure to meet all conditions 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 the provisions of the City Code, the CZO or this Agreement, the Grantor shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) the Zoning Map shall show by an appropriate symbol on the map the existence of conditions attaching to the zoning of the subject Property on the map and that the ordinance and the conditions may be made readily available and accessible for public inspection in the office of the Zoning Administrator and in the Department of Planning and that they shall be recorded in the Clerks' Office of the Circuit Court of the City of Virginia Beach, Virginia and indexed in the name of the Grantor and Grantee. [SIGNATURES APPEAR ON SUBSEQUENT PAGES] 3 GPIN NO. 1477-32,4335 IN WITINESS WHEREOF, the undersigned Grantor executes this Agreement as of the date first written above EUCLID PROP TIES, LLC ey. J. Daniel downing, Mang COMMONW .ALTH OF VIRGINIA, At Largs` z CITY OF a. '% , to -wit: I, 0001. a Notary Public in and for the City and State aforesfild, do certify that J. Daniel Downing, Manager of Euclid Properties, LLC, Grantor herein, has acknowledged the foregoing Agreement, the execution thereof by and on behalf of the Grantor and his signature hereon before me this JLLV- day of Cjaw .,► _ r-- _, 2008. Mr. Downing is personally known to me or has provided _ham r✓IriUeti_1 ; cam. as identification.n A My commission expires: Rou ;6 2blo Notary Commission No.: -7O4c451 I 4 GPIN NO. 1477-32-4335 7= w ceb GO m*A msl-o NA a Na+p4r4 e-' kr2�� IYI, r3 • ANULA M: uroussAlO NoMry PLUic - Reg. S 70U511 • C y FdnwWth d Virginia Nov. 30,1010 Legal Description ALL THAT certain piece or parcel of land, lying, situate and being in the City of Virginia Beach, formerly Princess Anne County, Virginia, said property fronting on U. S. Route #44 and is located between the property now or formerly owned by Oden and the property now or formerly owned by Cleaves, and more particularly described on the plat entitled, "Plat of a portion of Aneva White Estate to be conveyed to Russell Dildy, Virginia Beach, Virginia", made by George F. Hoggard, Civil Engineer and Land Surveyor, Portsmouth, Virginia, and constituting 0.73 Acres, which said plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Deed Book 923, at Page 95, and to which reference is hereby made for a more particular description of said property. LESS AND EXCEPT that portion of the property conveyed to the Commonwealth of Virginia for highway purposes by Deed dated February 19, 1975 and duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Deed Book 1488, at Page 487. LESS AND EXCEPT that portion of the property conveyed to the City of Virginia Beach in Deed Book 4267 at page 1149. # 22 April 8, 2009 Public Hearing CITY OF VIRGINIA BEACH ZONING ORDINANCE AMENDMENT (PORCHES &HANDICAPPED RAMPS) REQUEST: An Ordinance; to amend Section 201 of the City Zoning Ordinance Pertaining to Setbacks for Front Porches and Handicapped Ramps. SUMMARY OF AMENDMENT The attached proposed amendments to Section 201 of the Zoning Ordinance are intended to resolve what appears to be an issue that the Zoning Ordinance currently doer not regulate, but, based on the number of applications to the Board of Zoning Appeals, should regulate. These amendments will allow front porches and handicap ramps to extend into required yards under certain circumstances. The Board of Zoning Appeals (BZA) has granted numerous variances for front porches to allow for a covered entrance from the weather. The frequency of such variances suggests that a CZO amendment would better resolve the situation. Specifically, the ordinance will allow uncovered and unenclosed front porches to extend into the required front yard under these circumstances: 1. The porch must have a maximum depth of six (6) feet, as measured from the exterior wall of the main structure to the exterior edge of the porch foundation, and a maximum width of twelve (12) feet; and 2. In no ease can the setback from the lot line to the exterior wall of the porch foundation be less than five (5) feet. The BZA has consistently been asked to grant variance requests for handicapped ramps, as the design of such ramps normally require encroachments into required front yards. Handicapped ramps, however, are normally required by the Americans with Disabilities Act and should not be an unreasonable intrusion into the setback. The proposed amendments will allow such ramps to encroach into the front yard to the extent necessary to perform their proper function. RECOMMENDATION Staff recommends approval of the proposed amendments. CITY OF VIRGINIA BEACH — PORCHES AND RAMPS Agenda [ten! 22 CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to amend Section 201 of the City Zoning Ordinance Pertaining to Setbacks for Front Porches and Handicapped Ramps. MEETING DATE: May 12, 2009 ■ Background: The attached proposed amendments to Section 201 of the Zoning Ordinance are intended to resolve what appears to be an issue that the Zoning Ordinance currently does not regulate, but, based on the number of applications to the Board of Zoning Appeals, should regulate. ■ Considerations: These amendments will allow front porches and handicap ramps to extend into required yards under certain circumstances. The Board of Zoning Appeals (BZA) has granted numerous variances for front porches to allow for a covered entrance from the weather. The frequency of such variances suggests that a CZO amendment would better resolve the situation. Specifically, the ordinance will allow uncovered and unenclosed front porches to extend into the required front yard under these circumstances: 1. The porch must have a maximum depth of six (6) feet, as measured from the exterior wall of the main structure to the exterior edge of the porch foundation, and a maximum width of twelve (12) feet; and 2. In no case can the setback from the lot line to the exterior wall of the porch foundation be less than five (5) feet. The BZA has consistently been asked to grant variance requests for handicapped ramps, as the design of such ramps normally require encroachments into required front yards. Handicapped ramps, however, are normally required by the Americans with Disabilities Act and should not be an unreasonable intrusion into the setback. The proposed amendments will allow such ramps to encroach into the front yard to the extent necessary to perform their proper function. ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to recommend to the City Council approval of these amendments. CITY OF VIRGINIA BEACH — PORCHES AND HANDICAPPED RAMPS Page 2 of 2 ■ Attachments: Staff Review Ordinance Planning Commission Minutes Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting DeF)artment/Agek ncy: Planning Department City Manager 5 �— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 AN ORDINANCE TO AMEND SECTION 201 OF THE CITY ZONING ORDINANCE PERTAINING TO SETBACKS FOR FRONT PORCHES AND HANDICAPPED RAMPS Section Amended: § 201 WHEREAS, the public necessity, convenience, general welfare and good zoning practice so require; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Section §201 of the City Zoning Ordinance is hereby amended and reordained to read as follows: Sec. 201. Yards. (a) General. All required yards shall be unobstructed by any structure or other improvement which exceeds sixteen (16) inches in height as measured from ground elevation; provided, however, the following improvements may be located in a yard: (6) Covered unenclosed front porches on single-family or duplex structures constructed prior to the effective date of this ordinance, may extend into the required front yard setback, provided, however, that: a. such porches shall have a maximum depth of six (6) feet, as measured from the exterior wall of the main structure to the exterior edge of the porch foundation and a maximum width of twelve (12) feet; and b. in no case shall the setback from the lot line to the exterior wall of the porch foundation be less than five (5) feet; and (7) Handicapped ramps, to the extent necessary to perform their proper function. In addition, certain other structures, uses or accessories may be prohibited in certain yards as set forth in the applicable district regulations. COMMENT These amendments will allow front porches and handicap ramps to extend into required yards under certain circumstances. The Board of Zoning Appeals (BZA) has granted numerous 48 49 50 51 52 53 54 55 variances for front porches to allow for a covered entrance from the weather The frequency of such variances suggests that a CZO amendment would better resolve the situation. Handicapped ramps are normally required by the Americans with Disabilities Act and should not be an unreasonable intrusion into the setback. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of _, 2009. TO CONTENT CAI 0962 R-6 February 16, 2009 APPROVED AS TO LEGAL SUFFICI NCY: L Z& z c City Attorney's Office Item #22 City of Virginia Beach An Ordinance to Amend Section 201 of the City Zoning Ordinance Pertaining to Setbacks for Front Porches and Handicapped Ramps April 8, 2009 CONSENT Joseph Strange: The next item 22, an Ordinance to Amend Section 201 of the City Zoning Ordinance pertaining to Setbacks for Front Porches and Handicapped Ramps. Karen Lasley: Item 22 comes to you today from the Board of Zoning Appeals. It pertains to allowing covered but unenclosed front porches and minimal handicapped ramps onto existing single-family homes where they don't meet the required front yard setback. There are quite a few limitations on the front porches. They can have a maximum of six feet by twelve feet. They can only come within five feet of an existing right-of-way line. The Board of Zoning Appeals has seen a lot of applications for front porches and handicapped ramps in the past couple of years. We feel that this type of amendment would be appropriate. Joseph Strange: Okay. Thank you Karen. Is there any opposition to this matter being placed on the consent agenda? Madame Chairman, I will make a motion to approve agenda item 22. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. Ed Weeden: By a vote of 10-0, the Board has approved item 22 for consent. AYE 10 NAY 0 ABS 0 ABSENT 1 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY ABSENT KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 22 for consent. 5. Allows the guest rooms to be located in accessory structures, as well as the primary structure, if so approved by the City Council in the Conditional Use Permit (Lines 99-101); and 6. Deletes the prohibition against receptions and similar functions and allows them as specified in the Conditional Use Permit (Lines 111-112). RECOMMENDATION Staff recommends approval of the proposed amendments. CITY OF VIRGINIA BEACH - BED AND BREAKFAST INNS Agenda Item 20 Page 2 # 20 April 8, 2009 Public Hearing CITY OF VIRGINIA BEACH ZONING ORDINANCE AMENDMENT (BED AND BREAKFAST INNS) REQUEST: An Ordinances to amend the Definition of Bed and Breakfast Inns and Parking, Size, Food Service, Location and Other Requirements Pertaining to such Use. SUMMARY OF AMENDMENT The attached proposed amendments to Sections 111 and 225.1 of the Zoning Ordinance are intended to update the provisions of the ordinance that have regulated Bed and Breakfast Inns for the last decade. The changes are as follows: Section 111: The amendments to the definition of a 'Bed and Breakfast Inn" allow a maximum of thirteen (13) rooms, and remove the portion of the definition that limits the use to primary residential structures, thus allowing rooms to be ol:her structures on the site if they meet the requirements of the Building Code to be uses for guest rooms. Section 225.1. 1. Increase the number of lodging units allowed from ten to thirteen (Line 58); 2. Increase the food service seating capacity from 25 to 40 persons, including lodging guests (Line 72); 3. Deletes the requirement that no parking may be provided in the front of the structure and replaces it with a requirement that parking be provided as approved by the City Council in the Conditional Use Permit (lines 81-83); 4. Requi•es, as part of the Conditional Use Permit application, a parking plan showing the location, capacity and design of areas to be used for vehicular parking (Lines 96-97); CITY OF VIRGINIA BEACH - BED AND BREAKFAST INNS Agenda Item 20 Page 1 rGMa 8ElC. pv . 5pv CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance to amend the Definition of Bed and Breakfast Inns and Parking, Size, Food Service, Location and Other Requirements Pertaining to such Use. MEETING DATE: May 12, 2009 ■ Background: The attached proposed amendments to Sections 111 and 225.1 of the Zoning Ordinance are intended to update the provisions of the ordinance that have regulated Bed and Breakfast Inns for the last decade. The intent is to supply such inns the greatest possible opportunity to provide a quality lodging experience and to remain profitable while, at the same time, ensure continued compatibility with the properties surrounding them. ■ Considerations: The changes are as follows: Section 111: The amendments to the definition of a "Bed and Breakfast Inn" allow a maximum of thirteen (13) rooms, and remove the portion of the definition that limits the use to primary residential structures, thus allowing rooms to be other structures on the site if they meet the requirements of the Building Code to be uses for guest rooms. Section 225.1: 1. Increase the number of lodging units allowed from ten to thirteen (Line 58); 2. Increase the food service seating capacity from 25 to 40 persons, including lodging guests (Line 72); 3. Deletes the requirement that no parking may be provided in the front of the structure and replaces it with a requirement that parking be provided as approved by the City Council in the Conditional Use Permit (lines 81- 83); CITY OF VIRGINIA BEACH — BED AND BREAKFAST INNS Page 2of2 4. Requires, as part of the Conditional Use Permit application, a parking plan showing the location, capacity and design of areas to be used for vehicular parking (Lines 96-97); 5. Allows the guest rooms to be located in accessory structures, as well as the primary structure, if so approved by the City Council in the Conditional Use Permit (Lines 99-101); and 6. Deletes the prohibition against receptions and similar functions and allows them as specified_ in the Conditional Use Permit (Lines 111-112). ■ Recommendations: The Planning Commission placed this item on the Consent Agenda, passing a motion by a recorded vote of 10-0 to recommend to the City Council approval of these amendments. ■ Attachments: Staff Review Ordinance Planning Commission Minutes Recommended Action: Staff recommends approval. Planning Commission recommends approval. i Submitting (Department/Agency: Planning Department, City Manager 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 AN ORDINANCE TO AMEND THE DEFINITION OF BED AND BREAKFAST INNS AND PARKING, SIZE, FOOD SERVICE, LOCATION AND OTHER REQUIREMENTS PERTAINING TO SUCH USE Sections Amended: City Zoning Ordinance Sections 111 and 225.1 WHEREAS, the public necessity, convenience, general welfare and good zoning practice so require; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Sections 111 and 225.1 of the City Zoning Ordinance is hereby amended and reordained, to read as follows: Sec. 111. Definitions. For the purpose of this ordinance, words used in the present tense shall include the future; words used in the singular number include the plural and the plural the singular; the use of any gender shall be applicable to all genders; the word "shall' is mandatory; the word "may" is permissive; the word "land" includes only the area described as being above mean sea level; and the word "person" includes an individual, a partnership, association, or corporation. In addition, the following terms shall be defined as herein indicated: Bed and breakfast inn. A pFimaFy residential structure of historical significance in which not more than +o� thirteen (13) rooms are provided for lodging transients, for compensation, on daily or weekly terms, with breakfast. COMMENT The amendments change the definition of "Bed and Breakfast Inn" so as to allow a maximum of thirteen (13) rooms, and remove the portion of the definition that limits the use to primary residential structures. 43 44 ARTICLE 2. GENERAL REQUIREMENTS AND PROCEDURES APPLICABLE 45 TO ALL DISTRICTS 46 47 .... 48 49 C. CONDITIOPJAL USES AND STRUCTURES 50 .... 51 52 Sec. 225.1. Beed and breakfast inns. 53 54 In addition to general requirements, bed and breakfast inns shall be subject to 55 the following rE�quirements, which shall be deemed to be conditions of the conditional 56 use permit: 57 58 (1) No more than+moi thirteen (13) lodging units may be provided, and no such 59 units shall have direct ingress or egress to the outside of the building. Living 60 quarters for the owner or manager of the inn shall be provided in addition to 61 lodging units. The operator, or his designated representative who is responsible 62 for the premises, shall be available on the premises while it is open for use. Such 63 owner or manager shall be on site and available on a twenty -four-hour basis. 64 65 (2) Antiques may be sold at retail as an accessory use if expressly permitted by the 66 conditional use permit, provided, that such sales are conducted from within the 67 same building in which the lodging units are located and that no more than 68 twenty (20) per cent of the total floor area of the building shall be used in the 69 conduct of such sales. 70 71 (3) Food and beverages will be served if expressly permitted by the conditional use 72 permit, and in no event shall seating capacity exceed twenty five -5 fort40 73 persons, including lodging guests. Breakfast will be 6eF shall be provided to 74 guests. 75 76 (4) Notwithstanding any contrary provision of this ordinance, signage shall be limited 77 to one (1) identification sign not exceeding nine (9) square feet per face. 78 79 (5) At least one (1) vehicular parking space per lodging unit shall be provided on the 80 site. Additional parking capacity may be required by the city council if food 81 service E;ePV"Rg capacity exceeds the number of lodging units. Parking shall eet 82 be atlewed OR the f�„tef the—pEi a'-resideRt+al6tfustWFe-- be provided in 83 accordance with the conditions of the conditional use permit. 84 85 (6) The following plans shall be submitted with the application for conditional use 86 permit: 2 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 a. A floor plan delineating, at a minimum, the total floor area of the building, the number and dimensions of lodging units, the location and dimensions of areas to be used for food service and antique sales, if applicable, and the location of all entrances and exits; and A plan delineating the location, dimensions, colors, materials and illumination of proposed signage; and - c A parking plan showing the location capacity and design of -areas to be used for vehicular parking. (7) The bed and breakfast inn shall be operated only in a primary residential structure and fist in any accessory structure specified in the conditional use permit. The Primary structureto be used shall be historically, architecturally or culturally significant because (1) it is associated with events that have made a contribution to the broad patterns of our history or (2) is associated with the lives of persons or groups important to our past, or (3) embodies the distinctive characteristics of a type, period, design or method of construction, represents the work of a recognized master, or possess high artistic values. (8) Maximum length of stay for a transient paying guest shall be fourteen (14) consecutive days in any thirty -day period of time. (9) Receptions and other such functions, for compensation, shall flet be permitted only as specified in the conditional use permit. (10) A minimum of one (1) bathroom, to include a bathtub or shower, shall be provided on each floor of the structure to be occupied by guests; however, city council may require additional bathrooms as a condition of approval of the use permit. COMMENT The substantive amendments to this section are as follows: 1. Increase the number of lodging units allowed from ten to thirteen (Line 58); 2. Increase the food service seating capacity from 25 to 40 persons, including lodging guests (Line 72); 3. Deletes the requirement that no parking may be provided in the front of the structure and replaces it with a requirement that parking be provided as approved by the City Council in the conditional use permit (lines 81-83); 3 132 4. Requires, as part of the conditional use permit application, a parking plan showing 133 the location, capacity and design of areas to be used for vehicular parking (Lines 96-97); 134 135 5. Allows the use to be located in accessory structures, as well as the primary 136 structure, if so approved by the City Council in the conditional use permit (Lines 99-101); 137 and 138 139 6. Deletes the prohibition against receptions and similar functions and allows them as 140 specified in the conditional use permit (Lines 111-112). 141 142 143 Adopted by the City Council of the City of Virginia Beach, Virginia, on the 144 day. of , , 2009. Approved as to Content: CA -10981 R-2 May 5, 2009 Approved as to Legal Sufficiency: VW City Attorney's Office 112 Item #20 City of Virginia Beach An Ordinance to Amend the Definition of Bed and Breakfast Inns and Parking, Size, Food Service, Location and Other Requirements Pertaining To Such Use April 8, 2009 CONSENT Joseph Strange: The next item is Item 20 the City of Virginia Beach, This is an Ordinance to Amend the definition of Bed and Breakfast Inn and Parking, Size, Food service, location and other requirements pertaining to such use. Karen Lasley: Item 20 expands on what can occur at a Bed and Breakfast Inn, and the staff is recommending approval of that to you so that Bed and Breakfast Inn owners have the option of applying to do a little bit more than they can right now. Joseph Strange: Thank you Karen. Is there any opposition to this matter being placed on the consent agenda? Madame Chairman, I will make a motion to approve agenda item 20. Janice Anderson: I have a motion by Joe Strange and a second by Kathy Katsias. Ed Weeden: By a vote of 10-0, the Board has approved item 20 for consent. AYE 10 NAY 0 ABS 0 ABSENT 1 ANDERSON AYE BERNAS AYE CRABTREE AYE HENLEY AYE HORSLEY ABSENT KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO AYE STRANGE AYE Ed Weeden: By a vote of 10-0, the Board has approved item 20 for consent. i Li Stephen J. White From: MGSPORT77@aol.com Sent: Tuesday, April 07, 2009 6:49 PM To: Stephen J. White Subject: church point manor llc/ coditional permit use changes Mr. White I own the vacant lot next to the Church point bed and breakfast and I read your report and see no issues with the applicants request and am in favor of this and read your conditions and are also ok with those as they are very reasonable to insure the neighborhood is taken into consideration . I appreciate the notice being sent to me as the owner of the premises next door.. The Bed and Breakfast has as always been a great community asset and continues to be. Thank You Mark Garcea 4013 church point rd. va. beach va. 23455 Feeling the pinch at the grocery store? Make dinner for $10 or less. 1 CHURCH POINT MANOR HOUSE a.r—. I, z Church R-40 R-40 C Modification of Conditions Relevant Information: • Bayside District • The applicant requests a Modification to a current Conditional Use Permit allowing a bed and breakfast inn. • The modifications consist of • an increase in the number of guest rooms from 10 to 12, and • an increase in the number allowed in the dining area from 25 to 40. Evaluation and Recommendation: • Planning Staff recommended approval • Planning Commission recommends approval (10-0) • There was opposition t =.i CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: CHURCH POINT MANOR, LLC, Modification of Conditions for a Use Permit approved on March 12, 1996, for Bed and Breakfast Inn, 4001 Church Point Road. BAYSIDE DISTRICT MEETING DATE: May 12, 2009 ■ Background: The original Conditional Use Permit permitting a Bed and Breakfast Inn was approved by the City Council on January 12, 1993. The site was also rezoned to AG -2 Agricultural District from R-40 Residential District. On April 27, 1993, the City Council approved adding a Historic and Cultural District Overlay to the zoning of the property. On March 12, 1996, the City Council granted a Modification of the 1993 Conditional Use Permit. The current Use Permit has three (3) conditions: 1. Food service is limited to a maximum seating capacity of 25 at any one time. 2. A maximum of ten lodging rooms may be rented at any given time. 3. The carriage house area must be rezoned to Historic and Cultural District. ■ Considerations: The applicant requests modification of Conditions 1 and 2 as follows: • The modification to Condition 1 will allow 40 individuals rather than 25 to be in the dining area at any one time; and • The modification to Condition 2 will increase the number of lodging rooms to 12 rather than 10. The applicant requests these modifications primarily as a means of improving the economic viability of the bed and breakfast. The Church Point Manor Bed and Breakfast briefly closed due to the fact that it was not operating profitably within the existing restrictions on seating capacity and dining. Additionally, the applicant has found that during special events, more than 25 individuals are occasionally present. The two (2) additional lodging rooms are located in the carriage house, constructed in 1995. The carriage house consists of 1,280 square feet of floor area. CHURCH POINT MANOR, LLC Page 2 of 3 The applicant's request to modify two conditions by increasing the number of allowed bedrooms from 10 to 12 and increasing the maximum seating capacity of the dining area from 25 to 40 is acceptable. Staff concludes that the increases will have only a minimal impact on the surrounding area beyond what currently exists. The facility has become a community asset and there is much community support for the proposal. There are 12 designated parking spaces on the site and 11 additional parking spaces along the driveways on the site. There are 60 to 65 parking spaces (dependent on the spacing between cars, as those spaces are not parked) along the roadways adjacent to the property and adjacent to the open space area to the north. The Zoning Ordinance requires one (1) parking space for each guest room; 12 spaces are required and are provided. There is no specific requirement in the ordinance for a restaurant associated with a bed and breakfast; however, Staff finds that the parking arrangement described above is sufficient to meet the needs of the facility. Also, to ensure that the intersection of Meeting House Road, Timber (Ridge Drive, and Church Point Road is clear of parked vehicles that could block visibility, a request has been made to the Traffic Engineering office to install signs prohibiting parking in the intersection area. The last portion of Condition 5, however, recommended below, reinforces that parking is not allowed at the corners in accordance with Section 21-303(b)(4) of the City Code, which prohibits parking within 30 feet of a stop sign (the Police Department enforces that regulation). There was one individual present in opposition. In response to the concern of this individual, the Planning Commission added a provision for a one year review of the special events to insure such events are not disruptive to the surrounding residents. ■ Recommendations: The Planning Commission, passing a motion by a recorded vote of 10-0, approved this request with the following conditions: 1. Food service is limited to a maximum seating capacity of 40 at any one ti me. 2. A maximum of 12 lodging rooms may be rented at any given time. 3. The restaurant shall not be open past 10:00 p.m. 4. There shall be no amplified music outside the structures after 9:00 p.m. 5. Parking for the guest rooms shall be provided on-site in the 12 designated spaces. Parking for the restaurant shall be provided on-site as available. All additional parking shall be located along the curb area of the streets adjacent to the subject property and adjacent to the open space area CHURCH POINT MANOR, LLC Page 3 of 3 located north of the subject site. Consistent with Section 21-303(b)(4), there shall be no on -street parking within 30 feet of the stop signs located at the intersection of Meeting House Road, Timber Ridge Drive, and Church Point Road. 6. There shall be no more than five (5) special events per month. Such events shall not continue past 9:30 p.m. The Zoning Administrator shall review the provisions of this condition on an annual basis to determine if there have been any complaints pertaining to the special events. If so, the Use Permit shall be re-evaluated by Planning Department staff, who shall recommend appropriate action to the Planning Commission and City Council. ■ Attachments: Staff Review Disclosure Statement Planning Commission Minutes Location Map Recommended Action: Staff recommends approval. Planning Commission recommends approval. Submitting Department/Agency: Planning Department City Manager: V • 6v -t Modification of Conditions # 18 April 8, 2009 Public Hearing APPLICANT AND PROPERTY OWNER: CHURCH POINT MANOR, LLC STAFF PLANNER: Stephen J. White REQUEST: Modification or` a Conditional Use Permit for a Bed and Breakfast Inn — approved by the City Council on March 12, 1996 ADDRESS / DESCRIPTION: 4001 Church Point Road GPIN: ELECTION DISTRICT: SITE SIZE: AICUZ: 1489144513 BAYSIDE 2.3 acres Less than 65 dB DNL The original CDnditional Use Permit permitting a Country Inn SUMMARY OF REQUEST was approved by the City Council on January 12, 1993. The site was also rezoned to AG -2 Agricultural District from R-40 Residential District. On April 27, 1993, the City Council approved adding a Historic and Cultural District Overlay to the zoning of the property. On March 12, 1996, the City Council granted a Modification of the 1993 Conditional Use Permit. The current Use Permit has three (3) conditions: 1. Food service is limited to a maximum seating capacity of 25 at anyone time. 2. A maximum of ten lodging rooms may be rented at any given time. 3. The carriage house area must be rezoned to Historic and Cultural District. The applicant requests modification of Conditions 1 and 2 as follows: CHURCH POINT MANOR, LLC Agenda [tern 18 Page 1 • The modification to Condition 1 will allow 40 individuals rather than 25 to be in the dining area at any one time; and • The modification to Condition 2 will increase the number of lodging rooms to 12 rather than 10. The applicant requests these modifications primarily as a means of improving the economic viability of the bed and breakfast. The Church Point Manor Bed and Breakfast briefly closed due to the fact that it was not operating profitably within the existing restrictions on seating capacity and dining. Additionally, the applicant has found that during special events, more than 25 individuals are occasionally present. The two (2) additional lodging rooms are located in the carriage house, constructed in 1995. The carriage house consists of 1,280 square feet of floor area. The Church Point Manor House, which dates from the 1860s, consists of 3,072 square feet of floor area. There is also a 5,718 square foot addition. Together, they contain the existing ten (10) bedrooms, conference space, dining room, and related facilities. LAND USE AND ZONING INFORMATION EXISTING LAND USE: Church Point Manor Bed and Breakfast and restaurant. The site is zoned AG -2 Agricultural (Historic and Cultural District Overlay) SURROUNDING LAND North: • Church Point Road USE AND ZONING: . Open Space for Church Point community / R-20 Residential (Open Space Promotion) South: . Single-family dwellings / R-40 Residential East: • Meeting House Road • Single-family dwellings / R -20 -Residential (Open Space Promotion) West: • Single-family dwellings / R-40 Residential NATURAL RESOURCE AND The site consists of vegetated lawn areas, structures, parking areas, and CULTURAL FEATURES: pier structures. The primary structure is a brick farmhouse constructed in the 1860s. IMPACT ON CITY SERVICES TRAFFIC: There is no additional impact expected beyond the existing conditions. WATER AND SEWER: The site is already connected to City sewer and water. CHURCH POINT MANOR, LLC Agenda Item 18 Page 2 Recommendation: EVALUATION AND RECOMMENDATION Staff recommends approval of this requested modification, as conditioned below. Evaluation: The applicant's request to modify two conditions by increasing the number of allowed bedrooms from 10 to 12 and increasing the maximum seating capacity of the dining area from 25 to 40 is acceptable. Staff concludes that the increases will have only a minimal impact on the surrounding area beyond what currently exists. The facility has become a community asset and there is much community support for the proposal. There are 12 designated parking spaces on the site and 11 additional parking spaces along the driveways on the site. There are 60 to 65 parking spaces (dependent on the spacing between cars, as those spaces are not parked) along the roadways adjacent to the property and adjacent to the open space area to the north. The Zoning Ordinance requires one (1) parking space for each guest room; 12 spaces are required and are provided. There is no specific requirement in the ordinance for a restaurant associated wish a bed and breakfast; however, Staff finds that the parking arrangement described above is sufficient to meet the needs of the facility. Also, to ensure that the intersection of Meeting House Road, Timber Ridge Drive, and Church Point Road is clear of parked vehicles that could block visibility, a request has been made to the Traffic Engineering office to install signs prohibiting parking in the intersection area. The last portion of Condition 5, however, recommended below, reinforces that parking is not allowed at the corners in accordance with Section 21-303(b)(4) of the City Code, which prohibits parking within 30 feet of a stop sign (the Police Department enforces that regulation). CONDITIONS 1. Food service is limited to a maximum seating capacity of 40 at any one time. 2. A maximum of 12 lodging rooms may be rented at any given time. 3. The restaurant shall not be open past 10:00 p.m. 4. There shall be no amplified music outside the structures after 9:00 p.m. 5. Parking for the guest rooms shall be provided on-site in the 12 designated spaces. Parking for the restaurant shall be provided on-site as available. All additional parking shall be located along the curb area cf the streets adjacent to the subject property and adjacent to the open space area located north of the subject site. Consistent with Section 21-303(b)(4), there shall be no on -street parking within 30 feet of the stop signs located at the intersection of Meeting House Road, Timber Ridge Drive, and Church Point Road. 6. There shall be no more than five (5) special events per month. Such events shall not continue past 9:30 p.m. CHURCH POINT MANOR, LLC Agenda Item 18 Page 3 NOTE: Further conditions may be required during the administration of applicable City Ordinances. Plans submitted with this rezoning application may require revision during detailed site plan review to meet all applicable City Codes and Standards. CHURCH POINT MANOR, LLC Agenda Item 18 Page 4 AERIAL OF SITE LOCATION CHURCH POINT MANOR, LLC Agenda Item 18 Page 5 CHURCH PAgenda Item Page MANOR HOUSE & LODGE CARRIAGE HOUSE CHURCH POINT MANOR, LLC Agenda Item 18 Page 7 1 01/12/1993 Change of Zoning (R-40 Residential to AG -2 Agricultural) Granted Conditional Use Permit(Country Inn Granted 04/27/1993 Change of Zoning Historic and Cultural Overlay District Granted 01/09/1996 Conditional Use Permit Bed and Breakfast Granted 03/12/1996 Change of Zoning R-40 Residential to R-40 HCD Overlay) Granted 03/12/1996 Conditional Use Permit Bed and Breakfast Granted 2 01/08/1990 Change of Zoning (R-40 Residential to R-20 Residential — Open Space Promotion Granted 3 09/08/1992 Conditional Use Permit (Golf Course) Granted ZONING HISTORY CHURCH POINT MANOR, LLC Agenda Item 18 Page 8 DISCLOSURE STATEMENT APPLICANT DISCLOSURE If the applicant is a corporation, partnership, firm, business, or other unincorporated organization, complete the following: 1. List the applicant name followed by the names of all officers, members, trustees, partners, etc. below: (Attach list if necessary) Church Point Manor, LLC Managing Member: Jerry F. McDonnell 2. List all businesses that have a parent -subsidiary' or affiliated business entityz relationship with the applicant: (Attach list if necessary) Not applicable ❑ Check here if the applicant is NOT a corporation, partnership, firm, business, or other unincorporated organization. PROPERTY OWNER DISCLOSURE Complete this section only if property owner is different from applicant. If the property owner is a corporation, partnership, firm, business, or other unincorporated organization, complete the following: 1. List the property owner name followed by the names of all officers, members, trustees, partners, etc. below: (Attach list if necessary) Not applicable 2. List all businesses that have a parent -subsidiary' or affiliated business entity2 relationship with the applicant: (Attach list if necessary) Not applicable ❑ Check here if the property owner is NOT a corporation, partnership, firm, business, or other unincorporated organization. & 2See next page for footnotes Does an official or employee of the City of Virginia Beach have an interest in the subject land? Yes No x If yes, what is the name of the official or employee and the nature of their interest? Not applicable Modlficabon of conditions Application Page 10 of 11 Revised 7/3/07 CHURCH POINT MANOR, ;.LC Agenda Item 18 Page 9 i•1 DISCLOSURE STATEMENT ADDITIONAL DISCLOSURES List all known contractors or businesses that have or will provide services with respect to the requested property use, including but not limited to the providers of architectural services, real estate services, financial services, accounting services, and legal services: (Attach list if necessary) Vandeventer Black LLP ' "Parent -subsidiary relationship" means "a relationship that exists when one corporation directly or Indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act,.Va. Code § 2.2-3101. 2 "Affiliated business entity relationship" means "a relationship, other than parent - subsidiary relationship, that exists when (f) one business entity has a controlling ownership interest in the other business entity, (11) a controlling owner in one entity is also a controlling owner In the other entity, or (iii) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities; there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entitles." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3901. CERTIFICATION: I certify that the information contained herein is true and accurate. I understand that, upon receipt of notification (postcard) that the application has been scheduled for public hearing, I am responsible for obtaining and posting the required sign on the subject properly at least 30 days prior to the scheduled public hearing according to the instructions in this package. The undersigned also consents to entry upon the subject property by employees of the Department of Planning to photograph and view the site for purposes of processing and evaluating this application. CHURCH POINT MANOR, LLC L Jerry F. McDonnell, Managing Mbr. Applicant's Signature Print Name Property Owner's Signature (if different than applicant) Print Name Ll Modification of Conditions Application page 11 of 11 Revised 7=007 CHURCH POINT MANOR, LLC - Agenda Item 18 Page 10 Item #18 Church Point Manor, L.L.C. Modification of Conditions 4001 Church Point Road District 4 Bayside April 8, 2009 1 I XM17I:\y7 Janice Anderson: The next matter that is going to be heard is agenda item 18. It's an application of Church Point Manor, L.L.C. This is an application for a Modification of Conditions approved by City Council on March 12, 1996. It is for a bed and breakfast on property located at 4001 Church Point Road, District 4, Bayside. Welcome. Mike Sterling: Thank you. Mike Sterling. I'm an attorney representing Church Point Manor, L.L.C. I'm here to speak in fwior of this matter. We had originally thought this was going to be on the consent agenda. Perhaps there is someone here who raised a question; so, we're here to respond to it. I also have with me the Executive Director Finis Craft from Church Point Manor. We signed him in just in case he had to speak. In the interest of expediency, we'll reserve any comments he has in case there are any questions or opposition to rebut. In essence, this is a Modification of a Conditional Use Permit to allow for two additional rooms and some additional seating in this bed and breakfast. The original configuration was meant to preserve an old historic building, and this is an effort to continue that building in economic vitality, as a member of the Church Point community. I know the staff has recommended this. You have the report. I know that Commissioners have been out to view the property, and as I say, in the interest of expediency, rather than go through all the details that are before you, we are here to respond to any questions or concerns that you may have. We certainly hope that this will be passed. Janice Anderson: Thank you Mr. Sterling. Are there any questions of Mr. Sterling at this point? Mr. Crabtree? We'll bring you back up after we hear the opposition so you can address that. Eugene Crabtree: Mr. Craft had signed up to speak in support. Does he want to wait? Janice Anderson: They're going to hold back. Mike Sterling: Mr Craft is here to represent. Eugene Crabtree: Does he want to wait until after the opposition speaks? Mike Sterling: Yes. Eugene Crabree: Okay. We have one in opposition. Mr. Ashwin Javia. Janice Anderson: Welcome sir. Please state your name again for the record. Ashwin Javia: Thank you. My name is Ashwin Javia. I live two doors over, 3948 Meeting House Road from Church Point Manor. Janice Anderson: Can you point out your home on that map? Use that little pointer right there. Ashwin Javia: My home is right there (pointing to PowerPoint). Item #18 Church Point Manor, L.L.C. Page 2 Janice Anderson: Thank you sir. Ashwin Javia: I actually don't have any objections with the bed and breakfast. That is fine. Janice Anderson: Okay. Ashwin Javia: The only objection that I have is when they originally were applying for the restaurant and all that, I figured that is all it was going to be, but apparently there have been numerous parties, weddings catered out on the lawn, on the tennis courts. They put up tents. The noise has been a factor up to a certain extent. They are not outrageous. I'm not saying they are a total nuisance. I am not saying that. I'm saying that it has been a factor with other neighbors. Unfortunately, some of them could not take time off and come here this time of the day. I have talked to a half dozen of them. They said they would rather not see all of these outside activities besides the restaurant and the bed and breakfast. I`m afraid that with a larger restaurant and a little more leeway, which I didn't realize when something was approved, and I read through earlier by the City, that they are going, if I understand it right, they say they are going to be, that was number 20... Kathy Katsias: Number 18. Ashwin Javia: Eighteen is where we are, but number 20 was approved for the bed and breakfast inn, where it says that it prohibits the prohibition against receptions and similar functions and allows them as specified in the Conditional Use Permit. This is a quiet residential neighborhood. Also, this will exactly go on during the weekends, where we aren't even allowed to cut the lawns or make any noises. Janice Anderson: You're not allowed to cut your lawn during the weekend? Ashwin Javia: On Sunday and holidays we're not allowed too. Janice Anderson: Oh really? Ashwin Javia: I'm afraid. There is a lot of activity. It is okay for the rest of Church Point, which is almost two months long, because cars are not parked there. It is basically the cars and all that are pass along all the way from here on, right here, some here, quite a bit here, all the way here and some over here. When there are functions going on, there, I would say are over 7,500 cars. Janie Anderson: But that is on -street parking right? Ashwin Javia: On -street parking. It is just a neighborhood. It is supposed to be a quiet neighborhood, and now, all of a sudden, we see functions. We just had one, I think just a couple of weeks ago, a couple of functions were there. And, if this continues, and I understand they need to make money, but make money as a bed and breakfast, but not as all of the activities besides just bed and breakfast. I think if it just gets restricted to bed and breakfast, and that little restaurant inside, it's not a bad pill for us property owners around here. Otherwise, it is just becomes a commercial zone. Janice Anderson: In the conditions, they did put a limitation, I guess the receptions or something. There are special events they refer too. They said five per month. Is that five too many? Ashwin Javia: That is 60 receptions a year. Janice Anderson: Okay. Item #18 Church Point Manor, L.L.C. Page 3 Ashwin Javia: I mean this was supposed to be a quiet neighborhood. It is not like they don't have music. They have loud music which you can hear all the way until 10:30 at night, on the weekends. Janice Anderson: They got a restriction. The City has put a restriction on that they should not have any outside music past 10:00, so they did put a restriction there. Ashwin Javia: Like I said, we're not even allowed to cut the lawns for noise factors during daytime on Sundays, holidays and all that. These functions will go on. I can barely hear every single bit of that music in my bedroom with the windows closed and all that. We have kids and all that. I mean. There are a bunch of small kids in the neighborhood. Sleeping time. I mean, it went way beyond bed and breakfast. That is what I'm wondering. Janice Anderson: Okay. Joe? Joseph Strange: My question to you is, why haven't you been able to, if your neighbors are upset, why haven't you been able to arouse more opposition? I mean, like you're the only one here today. Ashwin Javia: I travel a lot. I make sure that I wanted to come here today. I did talk to four other people. They just wouldn't take the time off. You got to remember this is mainly for that 6 or 7 or 10 or 12 properties, because the rest of the properties are not going to get affected. How the parking goes? How the noise factor goes. It is only the surrounding properties. There is a park across the street; so, that does not get affected. The open space that you're talking about are those five or six properties right here. The three prcperties are right here, and a couple of properties, which I have not talked to yet. Joseph Strange: You said they are busy, but couldn't they write a letter of opposition? Ashwin Javia: I did not hear the procedure to how to get in until I walked in over here. I didn't know that I had to sign in up front in order to talk over here. Joseph Strange: I can understand your position, but I just don't understand why you haven't been able to get any opposition. Ashwin Javia: All I did was went and talked with them. I am not a lawyer. I'm not an escort here. This is the first time tha: I'm coming here. And, I didn't even know what the procedure was until I walked in this morning. Janice Anderson: Okay. Jay, I think you had a question. Jay Bernas: So, right now in our conditions, there would be no more than five special events per month. What would you recommend? Ashwin Javia: I personally would not let any events over there because this is supposed to be a neighborhood not E. business district. Jay Bernas: So, you would say zero. Ashwin Javia: I would say zero. As a matter of fact, I don't know if the gentleman remembers me. I don't know if it was him. During a storm, I helped him put my pickup truck to his sign where he was almost hanging in a stormy day to save that sign. But it was supposed to be for the sellers, right after they Item #18 Church Point Manor, L.L.C. Page 4 opened. I have no problem with that restaurant, because it would limit the traffic. There is no noise with the restaurant. There is bed and breakfast. There is no noise with that. But when it comes to the events, it just becomes an all day thing. As a matter of fact, one time I did call over at 7:00 on a Sunday morning to tell them to stop dismantling the tents they put up with hammers and whatever they were using. David Redmond: Can I just ask you to show me with the pointer where you live sir? Ashwin Javia: I live right here (pointing to PowerPoint). David Redmond: Okay. Janice Anderson: Are there any other questions? Joseph Strange: Would you be happy with 9:00 instead of 10:00 o'clock? Ashwin Javia: I wouldn't mind it if there were just functions done, and a couple of functions did not bother if they were done at Christmas for those parties. Maybe a wedding or two, but when I talked to somebody over here, there would be more than just few. This is year round. They have the rights to have five functions year, and I hope they succeed. I just wish they were near the Town Center with a nice restaurant where you guys have been developing the whole thing but not in a quiet neighborhood. Janice Anderson: Okay. Thank you sir. Oh, Kathy? Kathy Katsias: That is why it makes the parties and the events so appealing, because it is such a beautiful location, and the facilities are magnificent. Ashwin Javia: Not the facility. They put the tent on the tennis court. Kathy Katsias: I didn't realize that. I thought the functions were held indoors. Ashwin Javia: They are not held indoors. Kathy Katsias: If we limited with the functions being held indoors and one reception a month, and the number of people, no more than 100. 1 don't know what the number would be, would you be opposed to that? Ashwin Javia: No. I would not be. That's something double. This is not something you're going to be looking at every single weekend. Kathy Katsias: Thank you. Ashwin Javia: You're welcome. Janice Anderson: When we went by there, we were very impressed with your neighborhood. It is kept up - beautiful, beautiful place. Ashwin Javia: It is a nice neighborhood. Nice people. I have nothing against them. They are wonderful people. I talked to a couple of them. They had invited us on the grand opening. Unfortunately, I was out of town. I did not make it. I have talked to a couple of them on different occasions. They are nice people. Item #18 Church Point Manor, L.L.C. Page 5 It is just being a quiet neighborhood. We are restricted to do work on weekends, and these parties and all that goes on, it does not serve the purpose. I honestly did not know all the procedures. Janice Anderson: You're doing just fine. Ashwin Javia: I should have approached the Homeowners' Association and maybe asked them why we approve parties and all that when we are not allowed to cut lawn on certain days. Al Henley: I have a question. Janice Anderson: Go ahead Al. Al Henley: Sir, haw long have you lived at this residence? Ashwin Javia: Since 2001. Al Henley: 2001. Okay. I have a question for staff. Karen, when this Church Point Manor first opened up, the original development, were they allowed, or did they actually have outside entertainment as for wedding engagements or functions? Karen Lasley: No, the code actually said they couldn't have the extra functions. And when they first opened, they didn't have the restaurant either. That came with the second Use Permit. Al Henley: Alright Thank you. Janice Anderson: Mr. Sterling? Eugene Crabtree: Do you want Mr. Craft to speak first? Mike Sterling: I'm going to address these points and if necessary, Mr. Craft can. I'm here for him. If I could address some! of these issues. We certainly respect the concerns that were expressed by the gentleman from the; neighborhood. Unlike the issue that arose from the prior application before you, there was an extreme effort to reach out to the community here by Church Point Manor. They put out email notices. They met r.:iultiple times with the Homeowners' Association. Mr. Craft went door to door and met with numerous neighbors, and apparently, he was unable to make contact with this particular gentleman. We apologize for that. Overall, only one concern was ever raised by anyone until we heard this today, and that was a concern about people parking a little bit too close to the corners across the street when there was a special event. So, we reached out to the traffic department, event before it was addressed as a con6tion in this CUP, and asked them to put no parking signs up by those corners to keep people from doing that. I believe they are going to be installed this week. With respect to these outdoor events, and notwithstanding the fact they technically were not allowed back from the original granting of the bed and breakfast conditional use of this property, they have been going on there since the 1990s, since it was first a tied and breakfast. And, that condition has continued, and quite frankly, until several months this process started, no one appreciated the fact that was a technical non-conformance with the use of the property. But that has been going on. They generally held to four hours as in the conditional use, they are not to after 9:00 o'clock. They are not to be more than five a month. It wouldn't be practical to just limit these to just inside this historic building even though the building was expanded somewhat when it was converted to a bed and breakfast. It is still quite small. It doesn't have any big meeting areas. It can't really accommodate these functions without having the ability to also use the outside area. So, it wouldn't be practical. Our goal is to maintain a historic structure in an economically Item # 18 Church Point Manor, L.L.C. Page 6 viable way. So that it can function without any public support other than customers. With respect to these functions and particularly the outdoor functions, approximately 75 percent of the usage is probably by people from Church Point. Most of the people who retain the facility to hold special events are local residents that want to have a marriage there or a musical recital or something like that. They're sophisticated. They're relatively quiet, and we can certainly work with a gentleman like this if we had been aware of any complaints like that. Church Point Manor would have worked around that. The Homeowners' Association meetings, in which this has been addressed, and Mr. Craft, when specifically at several meetings, to make a presentation on the matter. He also attends every meeting just in case there are any concerns. No concerns have ever been raised before hearing this one today about this type of situation. We appreciate that it is a quiet residential neighborhood, and that is what makes this a special place. The Church Point Manor is like nothing else available in terms of having these special -functions. We've had various dignitaries stay there. We would like to keep it a special place, and keep it economically viable. And that means that between the cost of maintenance and keeping it in great shape, and advertising and all those things that go into having a variable business, it is quite small. It is quite modest. It can't function as an old fashioned country inn where the person lives there and just cooks breakfast in the kitchen in the morning and has a few guests. It has to have a little bit more of a commercial flair to it. And, that is why the sellers were at it by the prior owners some time ago. And even that ran into some difficulty, because it really didn't have quite enough seating in that restaurant. So, what we're asking for is for this additional seating and for the right outdoor use, and the additional rooms for let. A couple of the conditions that are set forth we do consent to. Janice Anderson: Jay? Jay Bernas: Is there something that you can do with Condition 6 about the five special events per month to make it more palatable for the adjacent property owner. It says five special events per month. Could you say no more than 30 outdoor events per year? Because it sounds like he is more concerned with the outdoor noise and the outdoor events. You know 30 events during the summertime, outdoor. Not a lot of people are going to have outdoor events in the wintertime. Is there another way to restate condition 6 that is more palatable? Mike Sterling: Well, I would obviously confirm with Finis about this but I would point out to you that I know he directly spoke to all the immediate owners. The folks are here, and here. Anybody who is right next door and tried to reach out to the folks through the Homeowners' Association come what have you, and all of these folks are perfectly happy with this. In fact, the folks over here have dome over and used this for outdoor events. Just because it says, five per month, would five per month be used on a regular basis? it depends on the economic condition. Sometimes an event is an hour and half long, sometimes it is four hours long. But anything they could bring in there to use the facility and make it economically viable. We can't predict that the rooms would always be full. In fact they are not. This is not that type of facility. There is a lot of dead time in there. So, the driving force between having these events is to accommodate the fact that it is not like a hotel where it is full all the time. Even the restaurant sort of has a following, if you will. It is not a place that a lot of tourists go. It is more local usage. And so we're trying to get an economic balance in here. Get some revenue from the special events, some revenue from the rooms, some revenue from the restaurant, and looking at the numbers, looking at the projections, five a month would be a great goal to have. We're perfectly content with not exceeding that or having that limitation in there, but we really ask you to retain it to five per month. Jay Bernas: I mean you're talking about special events that can occur indoor and outdoor? Correct? Mike Sterling: Yes. Jay Bernas: And that is what I'm saying. Item # 18 Church Point Manor, L.L.C. Page 7 Mike Sterling: Some are going to be indoor and some outdoor. I apologize. Jay Bernas: Could you restate it to say that no more than 3 per month or 30 per year will be outdoors? I don't think he is so concerned with the indoor. He is not concerned with the restaurant. What happens inside? I think what he is more concerned with is the noise that occurs from the outdoor special events. Obviously, you're not going to have every special event outdoors; so, that is what I'm wondering - if you could revise that condition to make it more palatable, and more geared towards the outdoor? Mike Sterling: I'll be happy to confide on that in a moment. Are there other questions? Janice Anderson: David? David Redmond: If I were single, and I called you up and said, "I want to get married there, what is the maximum number of folks that you would entertain?" Mike Sterling: Finis, come on up? Janice Anderson: He is getting into technical stuff now. He needs the help. Mike Sterling: Wl-.y don't you tell us how it actually works? Ed Weeden: For the record, state your name. Finis Craft: Okay. Finis Craft. I'm the Executive Director, and it is good to see everyone again. It is four hours as the maximum that you can have anything out there. If it is outdoors, 8:30, is last call, and 9:00 all music must be stopped - 9:15 if you do not hold a room or reservation on the property, you must vacate the property. The one event that he is responding to, prior to my arrival at Church Point Manor last April 27, 2008, this special events person sold one event that allowed the tent to go over in the driveway section ni:xt to the sellers, and that driveway section goes right onto Meeting House Road. All tents are to be constructed and all tent companies have to sign a contract with me. They have to be constructed on the 1:ennis court. They have to be constructed on Friday. They cannot be taken down until Monday, simply because I have already met with the Homeowners' Association. There was that one wedding that was sold for 100 people. The music still stopped at 9:00 but she would not allow the tent to stay until Monday. She requested the time, because they have to pay $75.00 extra if it remains out. But that was a contract signed prior to me coming there. But there is no more. And two, with the City Code, we can't put a tent ,anywhere in that driveway, because at any given time a fire truck must be able to get through there. We will not even allow a bride to get married in the driveway because at any given time, we have to keep that wide open. We will give them the back lawn or we will give them the front lawn. Other than that, there was only one tent that went up next to his house, and she did require that it be taken down on Sunday morning. I do remember it very well. And there has never been another one. Janice Anderson: What is the limit like Mr. Redmond asked? David Redmond: Yes. If I called up and I said I want to have a wedding, how many people can I bring? What would be the limit? Finis Craft: 175 stand up. 100 sit down, because I don't have room on the tennis court. Once they're married on the frons lawn and they move into the tennis court area, they don't have access to the house even though they have rooms in the house. The people that have rooms in the house can go up to the room and down, bus the guests can't wander through the house. We even put that much of a restriction on Item #18 Church Point Manor, L.L.C. Page 8 it because it has a lot of priceless objects in it, and we can't just have strangers wandering through that house. So, that it is, and 34 events a year. We haven't had 34 events a year yet. I would love to have 34 events a year if I could? But we haven't had it. With today's economy, like I was booking weddings that were supposed to be 110 or 120. They are still going to have the wedding ,but they all dropped to 30 or 40 because they were not going to be able to pay for it. Their parents were paying for the weddings with their IRAs. They no longer have an IRA. David Redmond: None of us do. Finis Craft: We can talk about that right? That is the situation outdoors. As far as that one situation that happened on a Sunday morning, that will never happen again. That is in their contract. The tent has to be erected on Friday, and it can't come down until Monday. It has to be on the tennis court. That is all the way on the back side. There is an acre buffer lot behind that tennis court that nobody uses either. We use the back of the tennis court and he is over on this side. David Redmond: Right. Janice Anderson: Okay. Put a restrictive condition that the outdoor events would have to be there at the tennis court? Kathy Katsias: He said they have to be. Janice Anderson: Okay. Finis Craft: They have to be. Mike Sterling: That is pretty much driven by the fire code. They never should have been out in the driveway in the first place. Janice Anderson: Okay. It should have never been out there in the first place. Finis Craft: That one wedding, where she fought me, and actually went and got an attorney. Janice Anderson: What about a reduction in the number like Mr. Bernas has asked for? Right now it says five special events. If we could put a limit on what would be outside events. David Redmond: Jan? Janice Anderson: Yes. David Redmond: Could I propose an alternative arrangement? Finis Craft: There are two things that I am caught in right now. I booked events last year for this year not knowing that any of this was going to transpire. There's wedding invitations that have already gone out. I have deposits on every event. I don't have any events that have over 175 people. They are all on the tennis court, and the five a month. Let's say that I do two outside a month and three small ones inside, it takes that much to make the bed and breakfast to operate. It really does. Janice Anderson: What I'm saying if we could specify whether they're inside or outside? Item #18 Church Point Manor, L.L.C. Page 9 Finis Craft: Yeah Right. Ronald Ripley: Jan? What if you just did an administrative approval of this? Maybe, overview by the staff in the event dere is a problem. He seems very conscientious. David Redmond: That is precisely what I was going to propose. Kathy Katsias: One year review. Janice Anderson: Do you want to limit them outside? David Redmond: Here is my point. I hate to grab the reins. This is largely a housekeeping matter. Much of this occurs as it is now. And if we come up with a number, "x" number a year, whatever. It is largely going to be arbitrary. I don't think there is any way they can come up with anywhere near sixty events per year, so I'm not concerned about that part. The way I would rather approach it is we provide for a one (1) year administrative review. She (Zoning Administrator) is going to know whether or not something bad is happening and can fix it then. I would hate to go into it with the idea that we're going to then put in some sort of arbitrary limit that may or may not be necessary. No offense to you sir, but you were very articulate, and I believe you, but for reason that I find very curious, none of your neighbors who are closer to the facility seem to have any of the same objections. And so, I have a hard time figuring out how it could be that intrusive. I know it is intrusive to you, but it is not intrusive to them, and I think if we're going to write a new CUP and we're going to write a new ordinance, we might as well as get a look at it in a year anyway, and I think that is the time to assess whether or not, and she (Zoning Administrator) would be the one to assess it, whether or not there is a problem that needs addressing. But I just think it is arbitrary to put in a different number than that which the staff, in consulting with the applicant, figured out is something reasonable. Janice Anderson: Okay. So Dave, your recommendation is to change six to say there are five special events per month, such events may not continue pass 9:30, and this condition is subject to administrative review. Are you talking about that condition? David Redmond: For one year. Janice Anderson: 'For the five outside events. That is what under review. David Redmond: Correct. Not the whole CUP. Janice Anderson: Okay. It is just the outside events. Karen Lasley: So, if I see a problem with that condition, we come back here just for that condition? Janice Anderson: Right. Just for that one condition. Not for the whole Use Permit. Is that what you had in mind? David Redmond: Mr. Macali, does that work for you? Eugene Crabtree: Mr. Craft, I guess I do to the fact that you had opposition and the gentleman said that he unfortunately, h,- travels and wasn't able to have dialogue with you, would you be willing to meet with him and have dialogue to see if you two can't get together and all so that he will not have ill feelings to what's going on? Item # 18 Church Point Manor, L.L.C. Page 10 Finis Craft: Absolutely. Eugene Crabtree: I would like to suggest that be move to be adopted. Mike Sterling: That is clearly going to happen. Janice Anderson: Mr. Macali, I'm sorry. You got cut off. Bill Macali: It is a little unusual for a condition like that, but I don't see any particular impediments since the entire Use Permit can be subjected to that process, but I would think probably, just to be on the safe side, if we specifically have the applicant's consent to that condition, there wouldn't be any doubt at all. Mike Sterling: We will consent to the modified condition six. Janice Anderson: Okay. Thank you sir. Are there any more questions of Mr. Sterling? Thank you. Mike Sterling: Thank you. Finis Craft: Thank you. Janice Anderson: I'm sorry. I forgot your name sir. Ashwin Javia: Ashwin Javia. Janice Anderson: Can you come forward please? We're recommending that the special events be under review so if it gets too loud or too much, then you know who to call. Ashwin Javia: Absolutely, Janice Anderson: That can be modified. That can be restricted. Ashwin Javia: Thank you. I appreciate it. Janice Anderson: Thank you for coming down sir. Al Henley: I have a question. Janice Anderson: Yes. Al Henley: I believe someone mentioned earlier that the special events should be limited to the tennis court? And that we're not considering that here because he mentioned earlier that the bride may want to get married on the front lawn on the corner. I think if we keep it as I understand it that the administrative review will review the outdoor events because obviously they can't get married in the driveway because of the crowd because you're violating the fire code. So, I just want to make sure that it is outdoor events and that particular item would be reviewed by administrative review. Janice Anderson: Yes. Al Henley: Okay. Item #18 Church Point Manor, L.L.C. Page 11 Janice Anderson: Okay. Dave? David Redmond: I move approve of the application as amended. Janice Anderson: A motion by Dave Redmond and a second by Al Henley for approval. Philip Russo: Ms. Anderson? Janice Anderson: Yes. Philip Russo: Out of an abundance of caution, I'm going to abstain. I have a business relationship with Mr. Sterling's firm. Janice Anderson: Okay. I have an abstention by Phil Russo. Ed Weeden: By a vote of 9-0, with the abstention so noted, the application of Church Point Manor has been approved with the modification to condition six. Janice Anderson: Thank you all. Kathy Katsias: Thank you. AYE 9 NAY 0 ABS 1 ABSENT 1 ANDERSON AYE BERNASS AYE CRABTREE AYE HENLEY AYE HORSLEY ABSENT KATSIAS AYE LIVAS AYE REDMOND AYE RIPLEY AYE RUSSO ABS STRANGE AYE Ed Weeden: By a vote of 9-0, with the abstention so noted, the application of Church Point Manor has been approved with the modification to condition six. Janice Anderson: Thank you all. Kathy Katsias: Thank you. L. APPOINTMENTS CHESAPEAKE BAY ALCOHOL SAFETY PROGRAM HUMAN RIGHTS COMMISSION MINORITY BUSINESS COUNCIL M. UNFINISHED BUSINESS N. NEW BUSINESS O. ADJOURNMENT PUBLIC COMMENTS Non -Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 05/12/2009.atb CITY OF VIRGINL4 BEACH BRIEFING: SUMMARY OF COUNCIL ACTIONS INTERIM FINANCIAL STATEMENT Patricia Phillips, Director - Finance V I CITY COUNCIL WORKSHOP DATE: 04/28/2009 L PAGE: 1 SCHOOLS proposed RESOURCE D S L E D MANAGEMENT PLAN H E A W AGENDA D S I E J S U N I ITEM # SUBJECT MOTION VOTE A T E D N O S H U L W V E Z Y L N O R E S O 1 P E E E E M I V O O S H L R Y S S N A N D i/A BRIEFING: INTERIM FINANCIAL STATEMENT Patricia Phillips, Director - Finance l ffAV-A CITY COUNCIL WORKSHOP SCHOOLS proposed RESOURCE MANAGEMENT PLAN 1 2 FY 2009-2010 Operating Budget FY 2009-2010 Capital Budget V/VI -E CERTIFICATION OF CLOSED CERTIFIED 11-0 Y Y Y Y Y Y Y Y Y Y Y SESSION F-1 MINUTES APPROVED 10-0 A Y Y Y Y Y Y Y Y Y Y B INFORMAL and FORMAL SESSIONS - S April 14, 2009 T A I N E D 2 FORMAL SESSION/PUBLIC HEARING APPROVED 10-0 Y Y Y Y Y Y Y Y Y A Y (Budget) - April 16, 2009 B S T A I N E D G-l.a PRESENTATIONS GENERAL ASSEMBLY COMMENDING RESOLUTIONS Meyera E. Oberndorf - Delegate Harry Purkey b Reba S. McClanan Delegate Bang Knight c Mary C. Russo Senator Frank Wagner CITY OF VIRGINL4 BEACH PUBLIC HEARINGS: SUMMARY OF COUNCIL A CTIONS FY 2009-2010 RESOURCE 39 Speakers MANAGEMENT PLAN V IL FY 2009-2010 Cperating/Capital DATE: 04/28/2009 PAGE: 2 Budgets D S L E D OPEN AIR CAFE LEASES — Resort H E A W AGENDA D S I E J S U N I ITEM # SUBJECT MOTION VOTE A T E D N O S H U L W V E Z Y L N O R E S O I P E E E E M I V O O S H L R Y S S N A N D H-1 PUBLIC HEARINGS: FY 2009-2010 RESOURCE 39 Speakers MANAGEMENT PLAN FY 2009-2010 Cperating/Capital Budgets 2 OPEN AIR CAFE LEASES — Resort No Speakers Area City -owned properties 3 INSTALLMENT PURCHASE No Speakers AGREEMENT - ARP 1601 Nanieys Creek Road UJ/K-1 Ordinance to AMEND Section 2-5 of the ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y City Code re Historic Preservation CONSENT Commission adding high school students 2 Ordinance to AUTHORIZE acquisition of ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y portion of Lake Lawson Phase H from CONSENT City of Norfolk for open space/public outdoor recreation area/APPROPRIATE $2,860,000 for purchase a 3 Ordinance to AUTHORIZE ARP with ADOPTED, BY 10-0 Y A Y Y Y Y Y Y Y Y Y William R., Jr./Cheryl L. Sanford re CONSENT B easement at 1601 Nann -ys Creek Road S T A I N E D 4 Ordinance to AUTHORIZE Right of ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Entry Agreement between City/L. Carl CONSENT Floyd, John J. DeVan)Vicki Morgan re City -owned property at Tuna Lane CITY OF VIRGINL4 BEACH Ordinances to GRANT Franchise ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y UMMARY OF COUNCIL ACTIONS Y Y Agreements for Open Air Cafes in the CONSENT Resort Area: V I a. Surfside Resort, Inc., t/a Fish Bones 04/28/2009 L 3 [[AGENDA b. Fogg's Seafood Company, t/a D S L E D Waterman's H E A W D S I E J S U N I SUBJECT MOTION VOTE A T E D N O S H U L W V E Z Y L N O R E S O 1 P E E E E M I V O O S H L R Y S S N A N D 5 Ordinances to GRANT Franchise ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Agreements for Open Air Cafes in the CONSENT Resort Area: a. Surfside Resort, Inc., t/a Fish Bones b. Fogg's Seafood Company, t/a Waterman's c. Tonic, Inc., t/a Waffletown USA d. Dunes Investment Associates, t/a the Beach Club e. First Fruits, LLC, t/a Tropical Smoothies f. ISA, Inc., t/a Seaside Galley g. Baja Taco, t/a Baja Cantina h. Karpathos, Inc., t/a King of the Sea i. Ocean Beach Club Owner's Association, t/a Tortugas j. Ocean Beach Club Owner's Association, t/a Tortugas k. BBH Corporation, t/a 18d' Street Cafe Y Y Y Y A Y Y Y 1. Seashore Management, t/a Laverne's 10-0 Y Y Y B S T A I N E D m. 11a' Street, LC, t/a I Vh Street Cafd 11-0 Y Y Y Y Y Y Y Y Y Y Y n. 11d' Street, LC, t/a I I'b Street Cafe 6.a Ordinances to APPROPRIATE funds to ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Housing and Neighborhood Preservation's CONSENT FY 2008-09 Operating Budget $1,109,599 from ARRA to the Housing and Neighborhood Preservation's FY 2008-09 Operating Budget re homelessness/Rapid Re -Housing of homeless persons b $55,698 from other cities' revenue re procuring a Regional Fair Housing Analysis Study. CITY OF VIRGINL4 BEACH Ordinances to TRANSFER $13,480,623 ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y SUMMARY OF COUNCIL ACTIONS Y Y available School funds to various CONSENT categories: V DATE: 04/28/2009 IL a. $2,984,000 Pupil Transportation PAGE: 4 D S L AGENDA b. $3,031,643 Technology E D H E A W D S I c. $ 831,980 Operations/ and E J S U N I ITEM # SUBJECT MOTION VOTE A T E D N O S H U L W V E Z Y L N O R E S O I P E E E E M I V O O S H L R Y S S N A N D 7 Ordinances to TRANSFER $13,480,623 ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y available School funds to various CONSENT categories: a. $2,984,000 Pupil Transportation b. $3,031,643 Technology c. $ 831,980 Operations/ and Maintenance d. $1,500,000 Equipment Replacement e. $2,085,000 Renovations and Replacements — HVAC Systems- .?hase 11 f. $ 198,000 Operating Budget g. $1,850,000 Student Data Management 8 Ordinance to ESTABLISH Witchduck ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Road, Phase I r/w as underground utility CONSENT corridor/ACCEPT 50% reimbursement from VDOT 9 Resolution in SUPPORT "Honor and ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Remember" flag to recognize/honor CONSENT members of Armed Forces who have died in the line of duty 10 Resolution to AUTHORIZE Byrne JAG ADOPTED, BY 11-0 Y Y Y Y Y Y Y Y Y Y Y Grant/ application to the Department of CONSENT Justice L-1 ROBERT BURKE Expansion of a DEFERRED TO 11-0 Y Y Y Y Y Y Y Y Y Y Y Nonconforming Structra•e at 5504 Ocean 5/12/2009, BY Front Ave DISTRICT 5 — LYNNHAVEN CONSENT 2 Variance to §4.4(b) of Subdivision APPROVED/ I1-0 Y Y Y Y Y Y Y Y Y Y Y Ordinance that all lots meet CZO for ADDED SYLVIA ESTES at 1628 Mill Landing CONDITION Road. DISTRICT 7 - PRINCESS ANNE NO. 3 3 MCRJERS, LLC closure of right-of-way DEFERRED 11-0 Y Y Y Y Y Y Y Y Y Y Y portion of Windsor Crescent, 3868 INDEFINITELY, Jefferson Boulevard. BY CONSENT DISTRICT 4 — BAYSIDE 4 REFORMED BAPTIST CHURCH OF DEFERRED TO 11-0 Y Y Y Y Y Y Y Y Y Y Y VIRGINIA BEACH CUP re church at 5/12/2009, BY 2230/2234/2240 Salem Road. DISTRICT 7 CONSENT - PRINCESS ANNE 5 THOMAS C. KAY, JR. CUP re DENIED 10-0 A Y Y Y Y Y Y Y Y Y Y firewood preparation at 1641 Princess Anne Road. DISTRICT 7 - PRINCESS ANNE CITY OF VIRGINL4 BEACH BUDDHIST EDUCATION CENTER MODIFIED/ 11-0 Y Y Y Y Y Y Y Y SUMMARY OF COUNCIL ACTIONS Y Y OF AMERICA, INC. Modification of CONDITIONED, Conditions (approved August 28, 2007 BY CONSNET V I [Thanh Cong Doan)), to extend the term/ DATE: 04/28/2009 L PAGE: 5 conditions of 2007 permit at 4177 West D S L E D Neck Road re religious services. H E A W AGENDA D S I E J S U N I ITEM 4 SUBJECT MOTION VOTE A T E D N O S H U L W 11-0 V E Z Y L N O R E S O I P E E E E M I V O O S H L R Y S S N A N D 6 BUDDHIST EDUCATION CENTER MODIFIED/ 11-0 Y Y Y Y Y Y Y Y Y Y Y OF AMERICA, INC. Modification of CONDITIONED, Conditions (approved August 28, 2007 BY CONSNET [Thanh Cong Doan)), to extend the term/ conditions of 2007 permit at 4177 West Neck Road re religious services. DISTRICT 7 - PRINCESS ANNE 7 RICHARD S. DAILEY Modification of MODIFIED/ 11-0 Y Y Y Y Y Y Y Y Y Y Y Condition No. 2 (approved June 9, CONDITIONED, 1986/September 14, 1987/August 14, 1989) BY CONSENT at 1094 Diamond Springs Road. DISTRICT 4 — BAYSIDE 8 VA BEACH INK (Ben Johnson) MODIFIED 11-0 Y Y Y Y Y Y Y Y Y Y Y Modification of Conditions (approved CONDITIONS September 23, 2008) at 612 Nevan Road, NOS. 1 AND 4 to applications. DISTRICT 5 - BY CONSENT LYNNHAVEN 9 Ordinance to AMEND Chesapeake Bay APPROVED, BY 10-1 Y Y Y Y Y Y Y Y Y Y N Preservation Area Ord re swimming CONSENT pools as "impervious cover"/calculating stormwater management requirements/ ESTABLISHING uniform buffer mitigation standards 10 Ordinance to AMEND Appendix C, Site APPROVED/ BY 11-0 -Y Y Y Y Y Y Y Y Y Y Y Plan Ordinance, Section 5B, re floodplains/ CONSENT National Flood Insurance Program. ADDED RECESS TO CLOSED SESSION RE 8:01 PM 10-0 A Y Y Y Y Y Y Y Y Y Y PERSONNEL ADDED CERTIFIED CLOSED SESSION 11-0 Y Y Y Y Y Y Y Y Y Y Y M/N/O ADJOURNMENT 8:30 PM PROPOSED RESOURCE MANAGEMENT PLAN FY 2010 BUDGET WORKSHOPS May 5 Reconciliation Workshop Council Conference Room May 12 Public Hearing for Adoption Council Chamber — 6 p.m.