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HomeMy WebLinkAboutMARCH 23, 2010 MINUTES1 MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 23, 2010 Mayor William D. Sessoms, Jr., called to order the CITY MANAGER'S BRIEFING: re NEIGHBORHOOD PRESERVATION PATTERN BOOK in the City Council Conference Room, Tuesday, March 23, 2010, at 4:00 P.M. Council Members Present: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Absent: None March 23, 2010 -2 - CITY MANAGER `SBRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK 4:00 P.M. ITEM # 59754 The City Manager introduced Andy Friedman, Director of Housing and Neighborhood Preservation, re the newspaper article which implied the City did not help homeowners to improve their homes. Homeowners have been assisted with financing for the last sixteen (16) years, approximately $1 - MILLION a year. Sharon Prescott, Housing Development Administrator, - Housing and Neighborhood Preservation, introduced Olin L. Walden: THE PATTERN BOOK PROJECT Olin L. Walden, Housing Development Coordinator Project Manager WEBSITE DEVELOPMENT Interns: Valecia Wilson, Spencer Ferguson, Walter Harris IV, Daniel Robinson Mr. Walden advised the history Why and how the City of Virginia Beach Pattern Book came about • September 2005: City Council authorizes the Planning Commission to study the City's existing Development Ordinances and recommend changes • Assist in preserving the character and value of neighborhoods and housing • January 2007: Workforce Housing (WFH) Subcommittee report recommends ways to preserve and enhance existing housing and neighborhoods: • Tax incentives for owners of existing housing to promote reinvestment • Neighborhood -specific guidelines for renovation • A "design center" to assist owners/builders in renovations that are compatible with existing neighborhood character • Provide help in obtaining financing and design assistance to residents • Adopt a Comprehensive Neighborhood Revitalization Strategy • January 2008: The Planning Commission Subcommittee on Preservation (Preservation Subcommittee) convenes • Further develop recommendations for Workforce Housing (WFH) • Addresses affordability in new housing that is built in the City • Addresses the preservation and enhancement of neighborhoods March 23, 2010 -3 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Planning Commission Preservation Subcommittee Membership • Committee Chairman: Ron Ripley • Council Liaison: Rosemary Wilson • Planning Commission Members: • Joseph E. Strange ▪ Henry Livas Department Of Housing & Neighborhood Preservation Director: Andrew M. Friedman • Committee Volunteers: o Dan Baxter • Carolyn McPherson o Dan Brockwell o Iva Nash • Claudia Cotton ▪ Victoria Price o Steve Lawson ▪ Chandler Scarborough o Frank McKinney • Frank Spadea • Phil Shucet • Mary Kay Horoszewski Lead Staff Member: Lanitha Hudson • Committee Staff • Ron Angor • Steve Herbert • Jerry Banagan • Pam Matthias o Ron Berkebile • Tom Pauls • Jim Cervera o Sharon Prescott o Robert David ▪ Cheryl Smith • Jasmin Dizon ▪ Olin Walden ▪ Barbara Duke ▪ Beverly Kay Wilson March 23, 2010 I -4- CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Preservation Subcommittee Report • Vision • Vibrant, well-maintained neighborhoods where all residents have the opportunity to obtain desirable, safe and affordable housing and enjoy a high quality of life • Housing Philosophy • The preservation of affordability, the preservation and renewal of our existing housing stock and the preservation and enhancement of the quality of life in our neighborhoods are key goals of the City Principles • All action is consistent with the Comprehensive Plan, which "recognizes the primacy of preserving and protecting the overall character, economic value and aesthetic quality of the stable neighborhoods in the Primary Residential Area" ▪ Quality in the design, construction and rehabilitation of housing ▪ Housing and neighborhoods are available to a diverse range of people, including people of different culture, backgrounds, ages, races, capabilities, life stages and income • Diversity, including the type, value and design of housing and neighborhoods, which, in turn help the City meet its goals for quality physical environment, family and youth opportunities and economic vitality • Equal access to housing and neighborhoods • Insuring affordability for a wide range of households • Public involvement Use of voluntary processes in all aspects of our work • Goals • To develop tools that promote incentives for the voluntary improvement of housing in Virginia Beach that preserve and enhance quality housing and neighborhood character To develop the City process that addresses neighborhood preservation and improvement on an ongoing, sustainable basis Purpose of Pattern Book • To be a resource for the preservation, renewal and enhancement of homes and neighborhoods • in Virginia Beach • To provide design recommendations for modifications to preserve, renew and enhance homes and neighborhoods • To develop a resource Website geared toward anyone interested in housing and neighborhoods located in Virginia Beach March 23, 2010 -5 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Pattern Book Development Process Since January 2009, Pattern Book Project Manager, Olin L. Walden, Housing Development Coordinator, and several Fourth and Fifth year architecture students and graduate interns have worked on the Pattern Book Project. • Studied Election Districts and Planning Areas • Researched architectural styles by neighborhood • Studied and cataloged architectural styles • Photographed detached single family homes • Researched lot configurations, characteristics, zoning and subdivision regulations • Studied and cataloged landscape and street patterns • Investigated specialty design and construction • Developed appropriate recommendations for home modifications • Developed proposed Website format for online Pattern Book Framework for Website Design Neighborhood Search Home Improvement Related links Before You Build Repairs and Rehabilitation Citywebsite Renovations Additions Detached Structures Home hnprovemert by Style Construction associations Federal&state agencies Specialty construction Homeowner associations Financing Realtor Associations March 23, 2010 -6 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) The Website Structure consists of a Pattern Book, Background and Instructions, Housing Tools and Terminology, Home Style, Neighborhood Search, Home Improvement, Specialty Design and Related Links. Proposed Website Features • Menu and search bar will be visible on every page of the Website to facilitate site navigation • Multiple ways to search for specific information • Neighborhood information, including links to civic organization websites on neighborhood pages • Click on highlighted terms for access to definitions from the online glossary Relative Online Pattern Book and Website Development, Olin L. Walden, displayed "proposed screen shots" of the Online Pattern Book PR IR uS f toM& NuGI !DO0ru 10DS .�� .��.. .»� Ondine Pattern Book PATI'l:RA ROOM. TOOLS d TERMS 009E a STILT t REU.R$1{104iD ttHN11P it614 its 3 NF utttli�t'?tt.11 e to the Virginia Beach Pattern Book Online SPETTAGllDE3it; March 23, 2010 -7 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PIZIHOMLS IWOODpniie Pattern Boo MOIL PATTERN SOUR OWS3kfr roots d TERMS ROME STILE RETG8ROR8OOD SLAM II BONE IMPROTEOLNT SP'ECULTY DESIGN RELATED LINKS CONTAIT ;S, I'I I:MIER �tows & NUGtows Online Pattern Boo HOME ABOUT PATTERN BOOK TOOTS & TERMS ROME STYLE 3FEiG11ROR80410 ... ' SEARCH 8033E 1MPROYEMENT SPECIALTY DESIGN RELATED LINKS CONTACT UN (11,k hrrr far March 23, 2010 -8 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PRFMILK IIOMIS&NEIGHBORHOODS Online Pattern BOO row a atwora efhtM�a rwgk+aaeed HOME A801=I � PAritoY 8000 TOOLS A TERMS ROME STYLE 11tE1F;tIBORf0011, SEARCH SOME IMPROV MUST SPECIALTY DESIGN „. RELATED LINKS CONTACT US (1,1x hr...“. Iur S�tr ?lntr SF ARCHall11.111111.111111111111. 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PRIM1D. HOMES NUG IK)IU►OOos Online Pattern Book . o d N.Il.prw.d.0W0N.l.W ROM 11 PATTERS ROOK Gable Roof 1Nio sides that slope upward at the same grade to men at . ridge locoed .bogie the teeter of the building to create. triangle (1.610 o either SPECIALTY DESIGN RELATED LIN RS CONTACT LS 01,6 tarn 16r AHr Nlap r -gabled: from door on gabled side bled: Pront Jos on non.g.bkd ode 1 or mss gabled wing. wood sigh main section of building creating s valley et non March 23, 2010 - 10 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PR Elk HOMES (S4 NEIGHBORHOODS Online Pattern Boo AROGT'..�..�.. PATTERS RODS IIOUSING TOOLS 1 MHOS SRORIIOOD %REFI IMPROYEMEST SPECIALLY DESIGN RELATED LINKS COYTA4"T T;R c 114 hi, Icer?im M Cmtrrv11;r Woo t) Ierr !k (Doul t 2 Row lb& 4Doono II Lynn DvOM* (oath CC)vfiinci lO Pnncss> Aeuoc 1111€ixvcv'> \ta Ptefnmce I' Em iu HOMES NEIGHBORIIOOI Online Pattern Boo PATTERN ROOK SING TOOLS'£ TERMS HOME STILE (arch Results 1 of t SOME IMPROVEMENT SPECIALTY PERILS RELATED LINKS COI TACT I'S March 23, 2010 - 11 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) �.:� ['fFJOMtS&NUC.F Ii001�s Online Pattern Boo ARM T 'ETERS ROOK D01'.SIN, TOOLS 1 TTRMS $O$STYU (TRU tRIO Arag©na Bayside: Election District 4 BORE IMPROVEMENT SPECIALTY DLSH RELATED IASKS . CONTACT OS HOMES & NLJGI IBOIU ps Online Pattern Boo AROl l PATTERN ROOK HOUSING TOOLS E TERMS ROME STATE: NEIf+DRDRRD[IA REAREII ROME IMPROYEMEN SPECIALTY DESIGN RELATED LIN KS CONTACT 1S Aragona Bayside: Election District 4 of Typical Amon* Homes March 23, 2010 -12 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PR [MLR 11OME5& N1]GHBORH00n.aDS OYtZneateYYt B4(7' a.. .. H.. ..,e..�w�...�.Nw.e., w... ARM PATTERN DOOR TOOLS A TERMS Bayside Election District 4 L/RRIOlD ROME IM RENT SPECIALTY DEMI: RELATED LINES t lick ta�,F f�r Tin \iap PR limut 110 ' . Nr c"t30Rt's Online irte .Ltot tern Boo Atli ens ROME ABOUT PATTERN ROOK TOOLS A TERMS ROME STYLE 1V£EGRRORHOOD S£ARCM ROM}IMPROTEMES� SPECIALTY »ESK RELATED /INES COYTAIT I:S March 23, 2010 - 13 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PR LAIER HOMES HOME ASOLL PATTERN BOON HOUSING TOOLS & TURKS ROME STYLE NEIGHRORI1009 SEA Rut HOME IMPROAT MEAT SPLIT ALIN OLSIGN RE LA n.o I INES COST Art S S 4 • N"'"" Online Pattern Boo SEARCH Search Results MAWR 5 of I 7.0 itodolo for "A111110101 "Amon*" Zoning and Lot Regulation% "Aragon* Style and Chart Location im aflame Styles in "Aragon*" Aragon*" Neighborhood lc *Aragon*" tionieowner .aataoaa Ara ona Page 1 2 3 4 5 PREMIER 1.10MLS <St NEIGI BOIUIOODS 0 hisighbootoode HOME ARM I' PATTERN ROOK TOWS & TERMS ROME STATE NEICHROITHOOD SEARCH Th HOME IMPROVE RENT SPECIALTY DESIGN RELATED LINES IlvArtrr tS 1),A Vhp nline Pattern Book Search Results R.04$10 s.01120 fieduts* for *Arsxona" " Zoning and Lo f RoloilatumEr -Aragotta " Style and Chart Ivcation Ltas of Raw Style% in "Aragon*" "Aravine Neighborhood Allison*" Honnionner Association ftgct 2 3 4 5 March 23, 2010 - 14 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PER1MILKHOMES &NMIMOMiOODS E,~Hama.��Online Pattern Book ARM 1 PATTERN BOOK OM SING TOOLS A TERMS wROME STYLE N utaRRORMOtiD SEARCH _ ROME IMPROTEME:NT stmetAI.7Y DESIGN RELATED LANKS Acquiring Building Permits and Zoning Ordinances Bdow aro tSwt About itti t$ Rafted CO your Awl p ro mato ta•dapth taFontenoaoft these pmeessm, sun tPe Ci X6�maw:Baaclt !}k(WtMeal a rlannimg hsbsttr. PR.LMicii HOMES Sc. NUGHBORHOODs Online Pattern Book n�..e..kw. a.na and c,�«.n. h 1aww� rut awiah ROME ABOI T ...,..-�...n-,t PATTERN .04ROi TOOLS A TERMS ROME STYLE ;RBORHOOD SEARCR MORE IMrKII MENT SPECIALTY RESIGN RELATED LINKS CONTACT AS Choose your architixturat style to view wa s you can transform your home! March 23, 2010 - 15 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PREmaR. Flows s; NUGHRORai WMMM+xniu R.Yeen�M and atsatM Ua /a/1Ma and NaI�IbMMai01 h Vhi DOME AROII PATTERN ROOK [LOi'tiING TWIN A. TERMS .•DOME: STYLE eiGsEDIIUO4W Online Pattern Book AMERICAN E`OURSDUARE Standard American Foursquare DOME IMPROVEMENT SPECIALTY DESIGN RELATED LINKS CONTACTIS t"Iict, t It lap PRI MICR }i©AAFS& NEIGiMOM lOODS Online Pattern Boo e....,.,..., >,..,.�„�...e r,m�nvm...0 ��..r. wt N.tdnuanouat n �*V^+�••a PATIYKN RWK ROI SINir TWIG do TIs14E1S AMERICAN FOURSQUARE American Foursquare with dormer and porch DOME IMPKOFEMt:NT SPECIALTY DESIGN REIATER LINKS CONTACT t S ti ant, ant”. fere S2, Afar March 23, 2010 I II -16- CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PIU MIER HO? S & NCJGH[CRl i ' Online Pattern Book HOME ARM '.j PATTERN HOOK 1101. SING TOOLS i TERMS ROME STYLE siteRRORntMffi._. SEARCH HONE IMPKOFE4I1.NT SPRCLtLU RESIGN RL LIM LINKS CONTACT 1: S { iltk tset, )nf 4t[e '+lap Choose your architeetural style to 47C 3 ways y a PI I 'MI- AR, LS R r ioM& NuGr IBOHOODS .1 _ w �~ ..�. .M, .. Online Pattern Book HOME ROI T PAT EK*I HOOK TOOLS 1 TERMS a., HOME STTIE Standard Federal Adams SPECIALTY' DESIGN RELATER TANKS CONTACT 1'S ( k R.re March 23, 2010 I II - 17 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) PR E M1L 1L 1 Io nl 5 NOGG RHOOD5 Online Pattern Book HOME PAITEB\ HOOK UOESS tf TOOLS A TERMS HOME STTIJ !SEIGHBORHOtiD SLAW H HOME 1!M TRW, EMENT SPECULT% U SIBS RELATED U'SK% COSTICI I"S Federal Adams with side rooms MIER.1 IO1MES & NEI (:;I 113ORStio Ht ps Online Pattern Book PATIEMY BOOK TOOLS d TERMS HOME STELE (IEIiiHRORHiooi� SEARCH HOME IMPROYEMEN SPECIALTT DLSH:\ RELATED LINKS CONTACT I;S *14 csanraenan aeu: nate+ of'tital5npt as ide .IlTocutoc.o..almaw[<.. time planams:+molly aysalnM, sad irirKor a+rritatiE xercle ata sauctme and ttI DO Greeuildings(`Dst More' 11any ptuplr Learn+, :+Fant µracae Fta6dae rth�nk itv+Seri}:.a.; ia.xn hwhdngs tan e.I,,.in "lrn scab c mdt+cec+st Fwkka( : past µ+sae +teen Mama {rxaxttc3d iia the a+rerga Anee!fCms h+a lnar i+cK have hecwm Hoare. wstiexprrad„ +attaad: ntata+' a4 March 23, 2010 -18 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 Continued PR.E.MIER I1LIMES & NEIGE!BUR11000 Online Pattern Book AROI' l' PATTERN ROOS DOLS' NG TOOLS d TERNS HONE STALE NEIGHBORHOOD SEARCH BOISE IMPROVEMENT SPECIALTY DESIGN RELATED LIARS CONTACT TS ER. 110 :S & NUGHROR 1 l" Online Pattern Book ABM I PATTERN BOOR HOI SING TOOLS d TT'.RMS BODE STYLE peen Building Guidelines d edea rel oI niml coafu++e/x>t+ Ae ordu to the .,go.aW s e IOMEIMPROYEMENT SPECIALTY' DESIGN RELATED LINKS COSTAE T I'S ,w 'it a ti.g. E;aaiaaf ao (item Dulong rattail) adapted tOi LETO oyMem. fllF Camma!te181 CQn0f0Cti401.. That;rowan 0 Called LI:E0.11 LEED4I door oat t4ctate to builderb bow. gran Mmes should be contracted but it daatp code a chailua a me > from ...loch builder ran cbowe. ohm &#a diet fuat4eM. hallo norms. the peffomrnro m atonal ueac.lnCludellt otnitpro(Bony, *De lard tmprowdladootrix March 23, 2010 - 19 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) 1'1Z 1'MILR.. Ito, & NG<,IIl3�lt1IOODS Undine Pattern Book �blNr ant NayiibraMOM in VMyM BMfA pArrERN BOON dot siSG........_,_.,* TOOTS: TERMS DONE SLATE NEU..DB1tBDOOD SEARC:II HOME IMPROVEMENT SPECIALTY DESIGN RELATED LINKS CONTACT ES Improve Energy tT encvThroughout the House t. Pnrx+da 'smK ent4$t 2: h+wdl adettwla mudmion with no ar uamlxd area+ 3. Slave y tdricw t w4w$ws atd dw w ndnwaimtatwn 4 Sed all S.. l.acale dt dicta wrdtm lxa•d ncrned srytai'c„ nwua dI dttaa aro aadcd MICR I!QM£'S & NL;ICI IBM IS Online Pattern Book ��✓✓ PATTERN BORN DOUSING TOOLS d TEBlIs ADA'Overvi BORE IMPROVEMENT SPECIALTY DESIGN RELATER LINES CONTACT EY *: , k carte fnr ' ft Na Facts About ADA: An aaiwdud.wth ad:4401'I4 t* a(.erson wtta. "Itatafd+YsiW ar rachtd Invottmott iha#utasfanuaCty hrmts.cmamaa nwWrli March 23, 2010 -20 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) ('T HOMES & NMI 'HE Ott IOODS ... �µ.�.�,.�..�.... Online Pattern Boo ARM PATTER% ROOK HOhS1%G TOOLS A TERMS ROME STTIE Milli RORti000 SEARCH HOME imp ROTCREST SPECIALTY DESIt:1i OITATEn LI ES CYISTACT CSS ( k re ,,ft ?1mp Virginia Fair Housing Act it I Lousing Act Overview )mend Assess* enacted \ pymm.t finit fag housng tsw The this the Cienetal. Aacvmblyvisaed m 1972 vets .mIWq dm duh Cowes. enacted under tho Cm1. Rikhie Act of 1963 gnat fan housing law his bear atnmdod sovcial Amos ro deserally male 10 add protected classes P R FIvIlcx HO i u s& NEIGHBOR r°as Online Pattern Boo HOSE PAi1TRS ROOK flpt'Sl%G TOOLS & TERMS ROME STYLE initiflaORROCiD SEARCH MOINE ISPROYESESI SPE:MID DESIGN REBATED I.l%ES CONTACT I;S Making your home handicap accessible In order to transform your hv,nc into s SlTuctuee that is easy ,o nevi gbie for all, there are a numb of specific changes fascihtatc both mobility, comfort and the ability 10 complete everyday tasks. March 23, 2010 - 21 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Pm% aitd dr....,111.11.0meo &YIN Online Pattern Book -n I MILK HOMES & NE1G1 MORI 100DS HOME A801 PATTERN ROOK --ROI. SING TOOLS TERMS ROME Sm.*. uiiiit SE -ARCO ROME I P RON E MEN T SPECULTI DESIGN RE LIMO LIN US CONTACI S %CIL SSIIII.I; 8 VIII ItiLOVIS (1, h or',at \Lap Raihreont Vetithm • c -foot, ortottsttthiotl tottot Whooktutt acowl-tic thowar • cot& tut nom tollot ',NMI. that tawir otit.r..mbir ortitoduttik ot witortiEtart tto bti.coo Countertops sesstenues. baotto and tobMo sitottiti bo tut Itt4tor tEtio auto oo, oulto, Online Pattern Book 110MLS & MORI iOODS Ina tOtarloov PAMIRS ROOK HOUSING TOOLS & TERMS HOME STEEP. HORU SEARCH ROME IMPROVEMENT SPECIALTI DESIGN RELIT114 LINKS CONTier I.s .11Lesti.ons? comments? • • 110.1,,, 1.4 !,Et. Niep Name : • . • • mite smith March 23, 2010 - 22 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Part IV: Background Research 89 Sample Election District and Neighborhood 90 Rose HaL -Lecttion Dfiztect 3D •Total population: 59,475 • 5176 persons/ square mile •Median age: 32 years old •Median income: $ 59, 111 -Primarily white collar employment 'Average Home Value: $ 376,710 March 23, 2010 - 23 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Rose Hall (Election District 3) Sample Neighborhood: Rock Creek • Built in 1980's • History $i.o homes built on streets that branch off of a main loop Designed to incorporate social activity as well as residences • Planned sub -division • Zoning: R-7.5 • Architectural Styles Craftsman (Bungalow) Rose Hall (Election District 3) Rock Creek • Neighborhood Characteristics Infrastructure • Curb and gutter drainage • Power lines underground • Streetlights are staggered On both sides of streets Streetscape Streets allow for curbside par. king with two-way traffic Secondary streets narrower than prior pry streets • Sidewalks On both sides of primary streets Either one or two on secondary streets • Small front yards • Medium trees in yards Other • Mailboxes on street • Attached and detached garages March 23, 2010 - 24 - CITY MANAGER'S BRIEFINGS NEIGHBORHOOD PRESERVATION PATTERN BOOK ITEM # 59754 (Continued) Photographs of Virginia Beach Homes Typical Neighborhood Home Designs Next Steps Pattern Book Website Development Continues • Continue research of housing and neighborhood tools, terminology and home styles • Continue research of existing Virginia Beach neighborhoods, compile information and photos • Continue research of conventional and specialty home improvement design ideas, materials and methods of construction • Continue to make presentations to introduce and explain the Pattern Book Project • Complete and launch the Pattern Book Website Mr. Walden, Housing Development Coordinator, thanked the City Council for their attention and participation. Mr. Walden can be contacted at (757) 385-5760, e-mail: owalden@vbgov.com March 23, 2010 - 25 - CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT 4:35 P.M. ITEM # 59755 Patricia Phillips, Director of Finance, presented the FY 2010 Interim Financial Statements for the period July 1 through February 28, 2010. Mrs. Phillips recognized Don Barnett, the City's Comptroller. ► FY 2010 General Fund Revenues ► FY 2010 General Fund Expenditures 1 Limited Projections 1 Next Steps Revenues Local Revenues State Revenues* Federal Revenues Total Revenues Overview FISCAL YEAR 2009-2010 General Fund Revenues and Expenditures Compared to Budget Thru February 28, 2010 (in millions) Annual YTD Budget Actual $ 861.5 $ 447.2 159.1 63.0 23.1 14.0 $ 1,043.7 $ 524.2 Expenditures/Encumbrances Departmental Totals $ 529.7 $ Transfers 564.1 Reserve for Contingencies 3.1 Variance $ (414.3) (96.1) (9.1) $ (519.5) 353.8 $ 175.9 378.5 185.6 3.1 Total Expenditures/Encumbrances $ 1,096.9 $ 732.3 $ 364.6 Less Amounts Funded from Fund Balance Outstanding Encumbrance at 6/30/09 $ 6.1 Approved Carryover Requests 1.2 Funding for City Capital Projects 33.9 SPSA Disposal 7.2 Operating Budget FY10 4.8 Adjusted Expenditures/Encumbranas 1,043.7 *State Revenues contain PPTRA Budget of $53.4 -Million and Actual of $6.5 -Million March 23, 2010 - 26 - CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) FY 2010 Year To Date General Fund Revenues Compared to Historic Trend February 28, 2010 100.0 100% 80% - YTD ACTUAL = $524.2M ;60% °e40% 20% 0% ANNUAL BUDGET = $1,043.7M 71.3% 46.0% 50.2% 55.3% 43.2°/. .....00445.7% 49.5% 58.3% 23.5° 42.5% 24.4% 14.4% 9.7% 1.9% 4.4% 9.5% r7°% 5.2% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun -•r-Rev Trend **..% of FY10 Rev Budget 1 14.0% FY 2010 — General Fund Revenues —follow the trendline but keep in mind ... • Several items are on a 1-2 month lag • Real Estate 2"d installment due June 5 • Annual Business License Tax (BPOL) due in March • Local Annual Personal Property Tax due June 5 • State Revenues Accrual ➢ About $5 -MILLION of $157 -MILLION of total State revenue received after 6-30-10, Personal Property Tax Relief Act: $47 -MILLION ➢ Other State Revenues (such as public assistance and mental health) ➢ These State Payments to cities in July are considered State FY11 (but FY10 for Cities) ➢ PPTRA in State Biennial Budget CITY MANAGER'S BRIEFING March 23, 2010 Revenues $ Million 5600 — 5500 - 27 - INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) Real Estate Revenues February 28, 2006 - 2010 FAVORABLE TREND 8100 80 FY 2006 FY 2007 FY 2008 FY 2009 ®Actual Collection YTD of Total * Does not include additional appropriation for Senior Tax Credit of $424K. Dec 5 billing = $239.7M ($5.8M less than FY 2009) Senior and Disabled Credit February 28, 2006 - 2010 _......____.—_ 100% 60jc %1 m we - "o e 20% FY 2010 # Qualified 1 J 1 4,539 1 1 5.420 1 Through June 30 Erle = amount of relief pending additional appropriation of $400K 7.143 7,654 CITY MANAGER'S BRIEFING 0% 6 7 March 23, 2010 C 0 0 -28- INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) Personal Property Taxes — Local Billed February 28, 2006 - 2010 6100 — 680 — _.. $64.4 $67.5 FAVORABLE TREND FY 2006 FY 2007 FY 2008 FY 2009 C=IllActual Collections YTD *a.% of Total FY 2010 Commissioner of Revenue completes assessments on April 25, 2010 660 — 661.4 General Sales Taxes February 28, 2006 - 2010 664.0 UNFAVORABLE TREND 664.1 4% Down from FY09 80% 60% 40% V 20% 0% 80 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 ®Actual Collections e>•YTD ..Wee% of Total a 0 March 23, 2010 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -29 - CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) General Sales Taxes Collections Monthly % Change from FY09 to FY10 Of° 03'J k' � Jai 01 Q� q7 4, O �Month44 Change.. �' *Collections lag sales by two (2) months 960 Business Licenses — (BPOL) February 28, 2006 - 2010 940.6 UNFAVORABLE TREND 941.8 100% — 80% — 60% FY 2006 FY 2007 FY 2008 FY 2009 ®Annual Collections YTD of Total FY 2010 CITY MANAGER'S BRIEFING 0% March 23, 2010 Revenues $ Million - 30 - INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) Hotel Room Taxes February 28, 2006 - 2010 1.8% down from FY09 UNFAVORABLE TREND FY 2006 FY 2007 FY 2008 FY 2009 ®Actual Collections IMMO YTD w% of Total FY 2010 100% 80% c 0 0 60% u 0 0 1- 0 40% 20% 0% Restaurant Meal Taxes February 28, 2006 - 2010 860 100% UNFAVORABLE TREND 850 540 530 520 510 50 .7% Down from FY09 FY 2006 FY 2007 FY 2008 FY 2009 Actual Collections IYTD .moo—% of Total FY 2010 CITY MANAGER'S BRIEFING % of Total Collections March 23, 2010 030 - 31 - INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) Virginia Telecommunications Tax February 28, 2006 - 2010 UNFAVORABLE TREND BUDGET FY 2008 FY 2007 FY 2008 FY 2008 11.11.Annual COINotlon. TONT Summary of General Fund Revenues February 28, 2010 In Millions FY 2010 15 Real Estate Taxes $477.1 $250.1 52.4 % F Personal Property Taxes 64.2 15.9 24.8 F PPTRA 53.4 6.5 12.2 General Sales Tax 51.1 26.0 50.8 U Utility Taxes 25.7 12.4 48.0 U Telecommunications Taxes 23.7 9.2 38.8 U Franchise Taxes 5.9 2.5 43.2 F Business Licenses 40.6 2.8 6.8 F Restaurant Taxes 49.8 29.4 59.0 U Hotel Taxes 23.9 17.0 71.3 U Cigarette Taxes 12.9 7.3 56.2 U Automobile Licenses 9.1 4.2 46.3 U Amusement Taxes 5.3 3.6 68.2 U City Taxon Deeds 5.9 3.3 56.3 F Other Local Revenues 66.3 27.0 40.8 F State Revenues 105.7 50.8 48.0 U Federal Revenues 23.1 12.5 54.1 U $1,043.7 $480.5 46.0 % U Excludes Schools Revenues CITY MANAGER'S BRIEFING March 23, 2010 Percent of Total Expenditures - 32 - INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) FY 2010 Year -to -Date General Fund Expenditures Compared to Historic Trend February 28, 2010 100% 80% 60% 40% 20% 0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 4-40"..E penditure Trend y % of F Y 10 Fxp Budget FY 2010 Year -to -Date General Fund Revenues & Expenditures Compared to Historic Trend At February 28, 2010 Perceotof Total Expenditures 100% 80% 60% 40% 20% 0% SPSA 42.5% 28,3% 4,fY`L 23.5% 17.0% 24.4% 4.4% 1.9% 9.5% 5.2% 2./% Jul Aug Sep Oct -�- Rev Tmd State $ received after 6/30/10 - PPTRA $46.9M - Other $4.6M Nov Dec tan Feb Mar Apr May Jun ,f FY 10 Rw audtlu °"'-' Fxpmdqu0 Trout of FY 10 Exp 13 WO CITY MANAGER'S BRIEFING March 23, 2010 4.10' 5% YTD ACTUAL = $732.3M 1 ANNUAL BUDGET=$1,096.9M 80' 66.8", .r,. 68.1 59.3"✓.,.,,, 51.6%....: 1.99,,, 44.2%, 44.8' 37.2 .6'A 28.3% 17.0% 9.8% 17.0111, 9'7„ Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 4-40"..E penditure Trend y % of F Y 10 Fxp Budget FY 2010 Year -to -Date General Fund Revenues & Expenditures Compared to Historic Trend At February 28, 2010 Perceotof Total Expenditures 100% 80% 60% 40% 20% 0% SPSA 42.5% 28,3% 4,fY`L 23.5% 17.0% 24.4% 4.4% 1.9% 9.5% 5.2% 2./% Jul Aug Sep Oct -�- Rev Tmd State $ received after 6/30/10 - PPTRA $46.9M - Other $4.6M Nov Dec tan Feb Mar Apr May Jun ,f FY 10 Rw audtlu °"'-' Fxpmdqu0 Trout of FY 10 Exp 13 WO CITY MANAGER'S BRIEFING March 23, 2010 - 33 - INTERIM FINANCIAL STATEMENT ITEM # 59755 (Continued) General Fund FY 2010 Expenditures 1 Total at February 28, 2010: $732.3 -MILLION, or 66.8%, of $1.09 -BILLION Budget 1 Summary of Actual Expenditures Under Budget at June 30: 2008 (Actual) 2009 (Actual) Total $60.3 $43.0 in millions) of Total °10 of City Budget .....,.. C�ty Budget'... 5.6% $25.0 3.5% 3.8% $28.1 3.6% Bottom Line Revenues <$ 6 -MILLION - $12 -MILLION> under Expenditures <$22 -MILLION - $26 -MILLION> under Risks SPSA (Southeastern Public Service Authority) State Next Steps 1 Continue to Monitor Revenues in FY 2010 • Business Licenses - March • Personal Property — March/April 1 Next briefing on April 27, 2010, for data through March 2010. CITY COUNCIL COMMENTS hools $35.3 j $14.9 March 23, 2010 - 34 - 4:47 P.M. ITEM # 59756 Councilman DeSteph distributed information re "Google Announces Biking Directions at the League of American Bicyclists' 2010 National Bike Summit" Users cannot choose biking when deciding how to get to their destination Mayor Sessoms advised, re the Google concept, it has been brought to his attention that not everything at the Beach is depicted properly. Mayor Sessoms requested the City Manager inquire. ITEM # 59757 Mayor Sessoms advised the Shamrock Marathon and one-half Marathon were held March 20 and March 21, 2010. 8,600 registered the night before. Even with the number of participants, no complaints were received. March 23, 2010 - 35 - CITY COUNCIL LIAISON REPORTS VIRGINIA AQUARIUM and MARINE SCIENCE CENTER RENOVATION PROJECT ITEM # 59758 Council Members DeSteph and Wood, Liaisons to the Virginia Aquarium and Marine Science Center, distributed information and photograph concerning the Aquarium's two (2) Tomistoma crocodiles. Restless Planet Exhibit. There has been record attendance since this Exhibit opened. The Aquarium's two Tomistoma crocodiles, Grover and Gloria, must know it is Spring, as they are exhibiting mating behavior. This is an endangered species. If offspring are produced, it will increase the number. There is an estimated 2,500 in the wild. Over the next ten years, fifty (50%) of the population will be reduced due to deforestation and clear cutting for palm oil production. There are only thirty-four (34) of these rare crocodiles in the United States and seven (7) pairs in that number that are potentially viable breeders. Restless Planet has been a success beyond its educational value. The visitation has increased 53% over the last year for the period of November 21, 2009 to January 25, 2010, with an accompanying revenue increase of 81%. Fozzie, the Harbor Seal, was released at First Landing State Park March 11th. Fozzie was stranded January 19 in Carova, North Carolina. Staff from the North Wildlife Resources Commission rescued Fozzie and transported him to the Virginia Aquarium Marine Animal Care Center. He was diagnosed wih severe pneumonia and healing fractured rib. At admission, this weak Harbor Seal was approximately 42 pounds and was almost 70 pounds when released and ready to return to his natural habitat. March 23, 2010 - 36 - A GENDA REVIEW SESSION 5:17P.M. ITEM # 59759 BY CONSENSUS, the following items shall compose the CONSENT AGENDA: J. ORDINANCES/RESOLUTIONS 1. Ordinances to AMEND the City Code: a. § 23-11.3 re directing the beam from a laser pen, flashlight or similar device into the eyes of another person b. § 23-39 re cutting, trimming, damaging, defacing or removing of trees, shrubs or other vegetation on City property without written authorization of the Landscape Services Administrator or City Arborist c. §23-50 re penalty for failure to comply with cutting excessive growth of weeds or grass d. §23-50.1 re penalty for failure to comply in the removal of certain trees e. § 23-61 re electronic view at adult movie arcades 2. Ordinance to AUTHORIZE the General Obligation Guaranty by the City of the timely payment of a portion of principal and interest of certain guaranteed Subordinated Revenue Bonds and Senior Subordinated Revenue Bonds previously issued by the Southeastern Public Service Authority (SPSA) of Virginia 3. Resolution recognizing Captain William "Bill" Crow for his "Joint Basing" of the Naval Amphibious Base Little Creek and Fort Story now known as the "Joint Expeditionary Base Little Creek -Fort Story" 4. Resolution to RE-ESTABLISH the Clean Community Commission as an advisory Commission to City Council 5. Resolution to RENAME the Animal Control Building: the "Virginia Beach Animal Care and Adoption Center" (presented at City Council 's Workshop March 16, 2010) 6. Ordinance to AUTHORIZE the City Manager to EXECUTE the Virginia Beach Field House Emergency Shelter Agreement re an EMERGENCY SHELTER in the event of a natural disaster 7. Ordinance to AUTHORIZE existing temporary encroachments into a portion of City -owned right-of-way for JANE W. STEINHILBER to maintain a serpentine brick wall, four (4) brick columns and landscape boulders at 4821 Lauderdale Avenue. DISTRICT 4 - BAYSIDE March 23, 2010 - 37 - A GENDA REVIEW SESSION ITEM # 59759 (Continued) 8. Ordinances to ACCEPT and APPROPRIATE: a. $240, 000 reimbursement from the State Compensation Board to the Clerk of the Circuit Court's FY 2009-10 Technology Trust Fund b. $24, 450 Grant Funds from Smart Beginnings South Hampton Roads to the Library Department's FY 2009-10 Operating Budget Bern J.1.c (Ordinance AMEND the City Code re failure to comply with cutting excessive growth of weeds or grass) shall be DEFERRED thirty (30) days to APRIL 27, 2010, BY CONSENT. Item J.Id (Ordinance AMEND the City Code re failure to comply in the removal of certain trees) shall be DEFERRED thirty (30) days to APRIL 27, 2010, BY CONSENT. Item J.7 (Ordinance to AUTHORIZE existing temporary encroachments into a portion of City -owned right-of-way for JANE W. STEINHILBER) shall be DEFERRED to April 13, 2010, BY CONSENT March 23, 2010 - 38 - AGENDA REVIEW SESSION ITEM # 59760 K 3. Ordinance to AMEND §111 and ADD §217 of the City Zoning Ordinance (CZO) re requirements for monument and electronic display signs (LED) (deferred February 9 and March 9, 2010). Mayor Sessoms advised the Beautification Commission met with him approximately two (2) hours ago re the LED. The Beautification Commission did not feel they were included in the process. He does not believe the Council Members wish them to have this perception. The Commission has requested Councilman Members Wilson and Davis commence a process and take action within sixty (60) days. Other groups might also wish to participate. Mayor Sessoms inquired of the City Attorney if City Council takes action, would there be no LED signs for sixty (60) days. Then a recommendation could be forthcoming. The City Attorney, Mark Stiles, advised if substantial changes are made, the Ordinance must be referred back to the Planning Commission. Sixty (60) days would be a tight deadline. City Attorney Stiles suggested an Ordinance be in place that provides some guidelines rather than a strict moratorium Mayor Sessoms said he would prefer ninety (90) days. Council Diezel would not support a moratorium. Council Lady Wilson advised the Planning Commission has a Subcommittee. City Attorney Mark Stiles advised the Planning Commission did not consider a "ban ", not even a temporary one as a moratorium. Jack Whitney, Director of Planning, advised twenty (20) applications have been delayed close to a year. Mayor Sessoms referenced Item No. 8 on page 5: all electronic displays shall remain static for a period of at least one (1) hour. As a conservative measure, Mayor Sessoms suggested this be amended to twenty-four (24) hours. No. 8 on page 5: all electronic displays shall remain static for a period of at least twenty- four (24) hours one (1) hour. Item K 3 shall be discussed during the Formal Session. ITEM # 59761 BY CONSENSUS, the following items shall compose the PLANNING BY CONSENT AGENDA K. 1. Application of TAM! WALKER MOOK for a Conditional Use Permit re small engine repair at 501 Virginia Beach Boulevard. DISTRICT 6 - BEACH K2. Application of ROBERT RAMSAY for a Conditional Use Permit re a firewood preparation at 3025 New Bridge Road. DISTRICT 7 — PRINCES ANNE Item K 1 (MOOK) and K2 (RAMSEI) shall be DEFERRED, BY CONSENT, until the City Council Session of April 13, 2010. March 23, 2010 - 39 - ITEM # 59762 Mayor William D. Sessoms, Jr., entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS: Discussion, consideration of or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees pursuant to Section 2.2-3711 (A)(1) Council Appointments: Boards, Commissions, Committees, Authorities, Agencies and Appointees PUBLICLY -HELD PROPERTY. Discussion or consideration of the, acquisition, or of the disposition of publicly -held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3). Acquisition/Disposition of City Property: Beach District Upon motion by Councilman Davis, seconded by Councilman Uhrin, City Council voted to proceed into CLOSED SESSION at 5:23 P.M. Voting: 11-0 Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None (Closed Session: 5:23 P.M. - 5:36 P.M.) (Dinner: 5:36 P.M. - 6:00 P.M.) March 23, 2010 - 40 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL March 23, 2010 6:00 P.M. Mayor William D. Sessoms, Jr. called to order the FORMAL SESSION of the VIRGINL4 BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, March 23, 2010, at 6:00 P.M. Council Members Present: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood. Council Members Absent: None INVOCATION: Reverend Ted Richardson Chris Gospel Church PLEDGE OFALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA March 23, 2010 Item — V -E.1 CERTIFICATION -41- ITEM # 59763 Upon motion by Councilman Dyer, seconded by Council Lady Wilson, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 11-0 Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM #59763, Page 41, and in accordance with the provisions of The Virginia Freedom of Information Act, and, WHEREAS: Section 22-3712 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. Guth Hodges Fraser, MMC City Clerk March 23, 2010 Item V -F.1 - 42 - ITEM # 59764 Upon motion by Councilman Dyer, seconded by Councilman Uhrin, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of March 9, 2010. Voting: 10-0 Council Members Voting Aye: Rita Sweet Bellitto, 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 and Rosemary Wilson Council Members Voting Nay: None Council Members Abstaining: James L. Wood Council Members Absent: None Councilman Wood ABSTAINED as he was ill and not in attendance during the City Council Session of March 9, 2010. March 23, 2010 - 43 - Item V -G.1. ADOPT AGENDA FOR FORMAL SESSION ITEM # 59765 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION March 23, 2010 - 44 - Item V -H.1 PUBLIC COMMENT ITEM # 59766 Mayor Sessoms INVITED PUBLIC COMMENT: MONUMENT AND LED SIGNS The following registered to speak in SUPPORT: Ben Barr, 1015 Maple Street, Danville, IL, represent a company called Watchfire Signs, which is a manufacturer. He represented the industry on behalf the folks that have permits in currently and also the taxpayers that cannot be here today because they are running their business. They are a real big part of the community. John Yarrington, 5312 Macchonancy Street, spoke stating that he is one of the people that has several permits that keep getting denied. He has concerns with the new Ordinance, specifically, with several items under "D", Item 6, 7 and 8. Telling a business owner that they have to purchase a 19 millimeter or better sign is compared to buying a Volkswagen or a Cadillac. He does not want flashing animation but feels that limiting the message to one (1) hour is unjust. The following registered to speak in OPPOSITION: Pat Bridges, represented the Virginia Beach Beautification Commission. Mrs. Bridges gave a brief history of the Commission. The group has studied billboards and signage and a committee made up of a cross-section of citizens, including sign company representation, for a year and a half. The recommendation to City Council that there be a moratorium on new billboards. Virginia Beach has been recognized as a Tree City each year that the award exists. He suggested the City Council not lose the vision and not reverse this project. Johnnie Miller, Past President of the Virginia Beach Beautification Commission. She served on the Committee that drafted the original Sign Ordinance. This issue is a serious concern, not only to her, but too many others that have worked so many years to keep Virginia Beach from looking like so many other resort cities. After doing some research for the 60th Anniversary, we discovered that at one time, Atlantic Avenue was called the "garbage guldge ". Virginia Beach has received many awards and achievements in the past few years: "The best place to grow up in; the sixth best city for the outdoors; top U.S. market for job growth; the Boardwalk is one of the top ten great public places; the best new environmental improvement" and many more. The LED signs did not help us in receiving these awards and will not help the City in the future. They are a blight and put people on sensory overload. Admiral Tom Ward, 20178th Street. Admiral Ward also a Past President of the Virginia Beach Beautification Commission. He chaired a committee of the Commission, called the Color Project, and City Council adopted, the Commission's motto: "beauty is good business. He is also concerned about the traffic safety of LED signs. Nancy Parker, former Member of City Council, stated that she could not put her position into better words than those written by the City Manager in a letter dated February 5, 2010. Since the mid 1980's, City Council and the community have joined forces in many ways to transform the appearance of Virginia Beach. Those efforts have paid off, creating high quality of life, which is a critical part in our ongoing March 23, 2010 - 45 - community success and pride. It is also a central foundation of our economic vitality strategy. We do not need mini billboards with lights and messages changing intermittently. The chaotic cluttered roadside lined with electronic signs will not add value and quality to our sense of community. Reba McClanan, former Member of City Council, has been involved with the Council of Garden Clubs for many years. Mrs. McClanan stated that these Garden Clubs have raised `hundreds of thousands of dollars for the beautification of Virginia Beach and they deserve to be appreciated. The City has learned some hard, hard lessons. Judy Connors, 3958 Whispering Oaks Place, is a thirty-six (36) year resident of the Bayside area. Mrs. Connors stated that she did not hear the Mayor's State of the City address but read some excerpts from it where we spoke of his vision for the City. She respectfully requests that City Council have the courage to vote against any blight along our highways. Please vote for the Ordinance that has the one color background, similar to what is at Cox High School. Grace Moran, 2225 Roanoke Avenue, is President and represented the Shore Drive Community Coalition. If you must have LED signs, the Alternate Version is preferable to the original version. We support the Alternate Ordinance in restricting the size of the LED display area to fifty (50) percent. We would also like to see the Ordinance go further in limiting the hours of illumination. Linda Russell, 1212 Skylard Drive. She stated that she is against the signs. Betty Kennedy, 2700 Cattayle Run, represented the Chesopeian Colony Garden Club. She is active in the Civic League in Chesopein Colony and the Garden Club. She supports the Beautification Committee and is totally against any large signs or lights. She stated that she wants Virginia Beach to be a beautiful spot for tourists, visitors and, most of all, the residents of this City. The Club is not for the signs, and hopes that City Council will be able to vote against this request. She encouraged the City Council to keep Virginia Beach one of the best places for people to live as it has been cited many times. Robert G. Jones, former Mayor, stated he is in support of the letter received from the City Manager and feels that it is a real gift to the City. He stated that LED signs are not nice, not necessary, and not needed. He has spent hundreds of hours in the task of beautification of this City. He feels that the one question that is before the City Council is "What is best for the City?" He does not feel that these signs add value to the City, in fact, they detracts. The City is at an important 'fork in the road" in this matter and he feels if the City Council chooses to allow LED signs, then there is no coming back and the citizens will have to live with the signs forever. March 23, 2010 - 46 - Item J. ORDINANCES/RESOLUTIONS ITEM # 59767 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED in ONE MOTION Items la, lb, lc, (DEFERRED), ld (DEFERRED), le, 2, 3, 4, 5, 6, 7 (DEFERRED), 8a/b of the CONSENT AGENDA. Item 1. c. (penalty re growth of weeds or grass) was DEFERRED, BY CONSENT, until the City Council Session of April 27, 2010. Item 1.d. (penalty re trees) was DEFERRED, BY CONSENT, until the City Council Session of April27, 2010 Item 7 (Ordinance to AUTHORIZE existing temporary encroachments into a portion of City - owned right-of-way for JANE W. STEINHILBER to maintain a serpentine brick wall, brick columns and landscape boulders at 4821 Lauderdale Avenue) was DEFERRED, BY CONSENT, until the City Council Session of Apri113, 2010 Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 47 - Item J.1 a/b/e ORDINANCES/RESOLUTIONS ITEM # 59768 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinances to AMEND the City Code: a. § 23-11.3 re directing the beam from a laser pen, flashlight or similar device into the eyes of another person b. § 23-39 re cutting, trimming, damaging, defacing or removing of trees, shrubs or other vegetation on City property without written authorization of the Landscape Services Administrator or City Arborist e. 6C 23-61 re electronic view at adult movie arcades Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 1 AN ORDINANCE TO AMEND SECTION 23- 2 11.3 OF THE CITY CODE PERTAINING TO 3 DIRECTING BEAM OF A LASER PEN, 4 FLASHLIGHT OR SIMILAR DEVICE INTO 5 EYES OF ANOTHER PERSON OR LAW - 6 ENFORCEMENT OFFICER 7 8 SECTION AMENDED: § 23-11.3 9 10 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 11 BEACH, VIRGINIA: 12 13 That Section 23-11.3 of the Code of the City of Virginia Beach, Virginia, is hereby 14 amended and reordained to read as follows: 15 16 Sec. 23-11.3. Directing beam of laser pen, flashlight or similar device into eyes of 17 another person; pointing laser at law-enforcement officer. 18 19 (a) It shall be unlawful and a Class 21 misdemeanor for any person to 20 intentionally, and without good cause, direct the beam from a laser pen, flashlight or 21 similar device into the eyes (or eye) of another person. 22 23 (b) It shall be unlawful and a Class 2 misdemeanor for any person, knowing or 24 having reason to know another person is a law-enforcement officer as defined in Code 25 of Virginia section 18.2-57, a probation or parole officer appointed pursuant to Code of 26 Virginia section 53.1-143, a correctional officer as defined in Code of Virginia section 27 53.1-1, or a person employed by the state department of corrections directly involved in 28 the care, treatment or supervision of inmates in the custody of the department engaged 29 in the performance of his public duties as such, to intentionally project at such other 30 person a beam or a point of light from a laser, a laser gun sight, or any device that 31 simulates a laser. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 23rd day of March, 2010. APPROVED AS TO CONTENT: olice partment CA11445 R-3 March 9, 2010 APPROVED AS TO LEGAL SUFFICIENCY: 1 AN ORDINANCE TO AMEND SECTION 23-39 2 OF THE CITY CODE PERTAINING TO 3 CUTTING OF TREES, SHRUBS OR OTHER 4 VEGETATION UPON CITY PROPERTY 5 6 SECTION AMENDED: § 23-39 7 8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 11 That Section 23-39 of the Code of the City of Virginia Beach, Virginia, is hereby 12 amended and reordained to read as follows: 13 14 Sec. 23-39. Cutting, etc., of trees, shrubs or other vegetation upon city property. 15 16 (a) It shall be unlawful and a Class 43 misdemeanor for any person to cut, trim, 17 damage, deface or remove any tree, shrub or other vegetation upon city property, or to 18 cause, procure or direct the cutting, trimming, damaging, defacing or removal of any 19 such tree, shrub or other vegetation, without the written authorization of the landscape 20 services administrator or the city arborist. If any person shall commit any of the acts 21 prohibited herein upon more than one tree or shrub, a separate violation of this section 22 shall be deemed to have occurred with respect to each such tree or shrub. 23 24 (b) The provisions of this section shall not apply to any cutting or trimming of 25 vegetation required by section 23-50 of this Code or to routine trimming of shrubbery 26 upon city property, and shall not apply to city personnel engaged in the performance of 27 their duties. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 23rd day of March, 2010. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: CA11447 R-3 March 9, 2010 1 AN ORDINANCE TO AMEND SECTION 23-61 2 OF THE CITY CODE PERTAINING TO 3 ADULT MOVIE ARCADES 4 5 SECTION AMENDED: § 23-61 6 7 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 8 BEACH, VIRGINIA: 9 10 That Section 23-61 of the Code of the City of Virginia Beach, Virginia, is hereby 11 amended and reordained to read as follows: 12 13 Sec. 23-61. Adult Mmovie arcades. 14 15 (a) For purposes of this section, the following words and phrases shall be 16 construed as follows: 17 18 (1) Adult Movie arcade. The term "adult movie arcade" means any business 19 wherein a film or vidcotapc an electronic viewing device is operated, 20 generally for the purpose of viewing sexually oriented images. 21 (2) Film-or-videotape Electronic viewing device. The term "film-or-videotape 22 electronic viewing device" means includes but is not limited to any 23 electrical or mechanical device in a business, which projects or displays 24 any live feed, digital image, film, videotape or reproduction into a viewing 25 area obscured by a curtain, door, wall, or other enclosure which is 26 designed for occupancy by no more than five (5) persons, and is not 27 visible from a continuous main aisle. 28 (3) Viewing area. The term "viewing area" means the area where a patron or 29 customer would ordinarily be positioned while watching 30 images from an electronic viewing device. 31 32 (b) It shall be unlawful for any person in the city to own, maintain or operate, 33 for himself or as an employee or agent an adult movie arcade where the viewing area is 34 not visible from a continuous main aisle and is obscured by any curtain, door, wall, or 35 other enclosure. 36 37 (c) Any person who violates the provisions of this section shall be guilty of a 38 Class 1 misdemeanor. 39 40 41 (d) All persons regulated pursuant to this section shall comply with said Adopted by the City Council of the City of Virginia Beach, Virginia, on this 23rd day of March, 2010. COMMENT 46 This amendment clarifies that its provisions specifically apply to adult -type viewing venues, 47 commonly known as "peep shows", and updates the language of the ordinance in keeping with 48 technological advances that have taken place since this ordinance passed in 1993. Further, it 49 removes the 30 -day "grace period" provision that was applicable when the ordinance was originally 50 enacted. 51 52 Adopted by the City Council of the City of Virginia Beach, Virginia, on this 53 day of , 2010. APPROVED AS TO CONTENT: t*.c/!/ Polic apartment j CA11448 R-4 March 10, 2010 APPROVED AS TO LEGAL SUFFICIENCY: 1 14 - 48 - Item J.1 c/d ORDINANCES/RESOLUTIONS ITEM # 59769 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED, BY CONSENT, until the City Council Session of April 27, 2010: Ordinances to AMEND the City Code: c. §23-50 re penalty for failure to comply with cutting excessive growth of weeds or grass d. §23-50.1 re penalty for failure to comply in the removal of certain trees Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 49 - Item J.2. ORDINANCES/RESOLUTIONS ITEM # 59770 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to AUTHORIZE the General Obligation Guaranty by the City of the timely payment of a portion of principal of and interest of certain guaranteed Subordinated Revenue Bonds and Senior Subordinated Revenue Bonds previously issued by the Southeastern Public Service Authority (SPSA) of Virginia Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 AN ORDINANCE TO AUTHORIZE THE GENERAL OBLIGATION GUARANTY BY THE CITY OF THE TIMELY PAYMENT OF A PORTION OF PRINCIPAL OF AND INTEREST ON CERTAIN GUARANTEED SUBORDINATED REVENUE BONDS AND SENIOR SUBORDINATED REVENUE BONDS PREVIOUSLY ISSUED BY THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA WHEREAS, the Southeastern Public Service Authority of Virginia ("SPSA") was created pursuant to the Virginia Water and Sewer Authorities Act by its member jurisdictions (the "Owner Communities"), which are the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of Wight and Southampton; WHEREAS, SPSA is currently indebted to the Virginia Resources Authority ("VRA") in the amount of approximately $140.7 million on bonds, consisting of guaranteed subordinated revenue bonds and senior subordinated revenue bonds, issued to finance and refinance various capital expenditures (collectively, the "SPSA Local Bonds"), including $71,985,000 in SPSA Local Bonds (the "2009 SPSA Local Bonds") purchased by VRA on June 17, 2009 to restructure and refund certain outstanding SPSA Local Bonds as well as certain SPSA bonds not held by VRA; WHEREAS, SPSA has entered into a purchase and sale agreement with Wheelabrator Technologies, Inc. ("Wheelabrator") in connection with the potential sale (the "WTE Sale") of SPSA's RDF Plant and Power Plant (collectively, the "WTE Facilities"); WHEREAS, a portion of the proceeds of the WTE Sale are expected to be applied to the prepayment of a portion of the SPSA Local Bonds; WHEREAS, Section 6.1(b) of the Financing Agreement entered into by VRA and SPSA in connection with the 2009 SPSA Local Bonds (the "Financing Agreement") provides that SPSA may not sell, exchange, lease (as lessor), pledge, encumber, cease to operate, enter into a management agreement to operate or otherwise dispose of or alienate in whole or in part either the Disposal System (including the RDF Plant) or the Power Plant System (including the SPSA Power Plant, all as defined in the Financing Agreement) without the prior written consent of VRA subject to certain limited exceptions not pertinent to this Resolution; WHEREAS, as a condition to VRA's consent to the WTE Sale, VRA has required that the timely payment of principal of and interest on the SPSA Local Bonds remaining after the WTE Sale (the "Remaining SPSA Local Bonds") be severally guaranteed by a moral obligation pledge of Southampton and the general obligation pledge of the other Owner Communities, including the City of Virginia Beach, Virginia (the "City"); WHEREAS, the terms of such guarantees are set forth in a Guaranty Agreement between the Owner Communities, U.S. Bank National Association, as trustee (the "Trustee") and SPSA (the "Guaranty Agreement"), the form of which has been presented to this meeting; \\10697185\3 WHEREAS, the terms of the repayment to the Owner Communities of any payments made by the Owner Communities under the Guaranty Agreement are set forth in a Reimbursement Agreement among SPSA and the Owner Communities (the "Reimbursement Agreement" and, together with the Guaranty Agreement, the "Guaranty Documents"), the form of which has been presented to this meeting; WHEREAS, Chapter 872 of the 2003 Acts of the Assembly provides that a City contractual obligation to make payments over a period of more than one year to SPSA to guarantee SPSA's bond obligations shall not be considered a debt of the City for the purpose of Virginia Constitution or City Charter debt limitations; WHEREAS, the maximum principal amounts provided herein do not include amounts attributable to interest, and the total portion guaranteed by the City — principal plus interest — could exceed $15, 170,000 and $50,000,000, respectively; WHEREAS, the City Council of the City (the "Council") has determined that it is advisable to pledge the full faith and credit of the City to severally guaranty the timely payment of a portion of the principal of and interest on the Remaining SPSA Local Bonds pursuant to the Guaranty Documents; and WHEREAS, a public hearing on the guaranty of the City was held on March 9, 2010 after notice was published in accordance with the requirements of Section 15.2-2606 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA THAT: 1. Authorization of Guaranty. The Council hereby determines that it is advisable and in the best interest of the City to severally guaranty the timely payment of a portion of the principal of and interest on the Remaining SPSA Local Bonds, subject to the conditions outlined in Section 3, in the maximum principal amount of $15,170,000 pursuant to the Guaranty Documents; provided, however, the principal amount of the Remaining SPSA Local Bonds shall not exceed $50,000,000. 2. Pledge of Full Faith and Credit. The full faith and credit of the City are hereby irrevocably pledged for the payment when due of any amounts payable by the City under the Guaranty Agreement. The Council shall levy and collect annually, at the same time and in the same manner as other taxes of the City are assessed, levied and collected, a tax upon all taxable property within the City, over and above all other taxes, authorized or limited by law and without limitation as to rate or amount, sufficient to pay when due any amounts payable by the City under the Guaranty Agreement unless other funds are lawfully available and appropriated for the timely payment thereof. 3. Conditions to Guaranty. The guaranty authorized in Section 1 above is expressly conditioned upon the following: (a) Timely participation by VRA with SPSA, prior to the WTE Sale closing, in seeking a closing agreement with the Internal Revenue Service to protect the existing tax status of the Remaining SPSA Local Bonds and all other SPSA indebtedness not retired by the WTE Sale; (b) Timely participation by VRA with SPSA, prior to the WTE Sale closing, in requesting an allocation of volume cap in such amount as is required to preserve the tax status of the interest on the Remaining SPSA Local Bonds and all other SPSA indebtedness not retired by the WTE Sale; (c) Unanimous approval and execution by all Owner Communities and SPSA of each of the Guaranty Documents; (d) Release of Chesapeake and Norfolk from their existing guaranties of Wachovia Bank, National Association debt under that certain Guaranty Agreement among SPSA, Chesapeake and Norfolk dated May 15, 2009 (the "Wachovia Guaranty Agreement") and concurrent termination of the Wachovia Guaranty Agreement; (e) Release of the Franklin, Portsmouth, Suffolk, Isle of Wight and Southampton from their existing guaranties of the 2009 SPSA Local Bonds under that certain Guaranty Agreement among SPSA, U.S. Bank National Association, the City, Franklin, Portsmouth, Isle of Wight and Southampton dated June 1, 2009 (the "2009 VRA Guaranty Agreement") and concurrent termination of the 2009 VRA Guaranty Agreement; (f) Application of the proceeds from the WTE Sale to pay off and satisfy all amounts owed by SPSA to the City (the "VB Repayment") under that certain Forbearance Agreement among SPSA and the City dated as of May 15, 2009 (the "Forbearance Agreement") and the concurrent termination of the Forbearance Agreement; and (g) Application of the proceeds from the WTE Sale remaining after the VB Repayment exclusively to pay down existing indebtedness of SPSA, including the SPSA Local Bonds. 4. Designation of City Representative. For the purposes set forth in this ordinance, the term "City Representative" shall mean the City Manager of the City and the Finance Director of the City, either of whom may act. 5. Approval of Guaranty Documents. The Guaranty Documents in substantially the forms presented to this meeting are hereby approved, and the City Representative is authorized and directed to execute, such execution is conditioned upon review and approval by the City Attorney for legal sufficiency, and deliver each of the Guaranty Documents with such completions, omissions, insertions and changes as may be approved by such City Representative, such execution and delivery to conclusively evidence such approval. 6. Further Actions. The City Representative and such officers and agents of the City as the City Representative may designate are authorized and directed to take such further action as they deem necessary regarding the execution and delivery of the Guaranty Documents, and all such actions previously taken by such officers and agents are ratified and confirmed. The authorizations granted in this ordinance to City Manager and Director of Finance may be carried out by any Deputy or Assistant City Manager or any Assistant, Interim or Acting Director of Finance, as appropriate, in the absence of the primary officers. 7. Effective Date. This ordinance shall be effective upon its passage and shall not be published. Requires an affirmative vote by a majority of all of the members of City Council. Adopted by the Council of the City of Virginia Beach, Virginia on the 23rd day of March , 2010. APPROVED AS TO CONTENT: -4- APPROVED AS TO LEGAL SUFFICIENCY: City ey's Office DRAFT DATED March 09, 2010 1:33 PM 1 GUARANTY AGREEMENT 2 dated as of , 2010 3 Re: Not to Exceed $50,000,000 in Aggregate Principal 4 Amount 5 Southeastern Public Service Authority of Virginia 6 Senior Subordinated and Guaranteed Subordinated Bonds 7 by and among 8 CITY OF CHESAPEAKE, 9 CITY OF FRANKLIN, 10 CITY OF NORFOLK, 11 CITY OF PORTSMOUTH, 12 CITY OF SUFFOLK, 13 CITY OF VIRGINIA BEACH, 14 COUNTY OF ISLE OF WIGHT, and 15 COUNTY OF SOUTHAMPTON 16 as Guarantors, 17 SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF 18 VIRGINIA, and 19 20 21 U.S. BANK NATIONAL ASSOCIATION, as Trustee, for the benefit of the 22 VIRGINIA RESOURCES AUTHORITY 7228599 1 2 DRAFT DATED March 09, 2010 1:33 PM TABLE OF CONTENTS 3 Page 4 Recitals 2 5 6 Section 1. Notice of Failure to Make Monthly Deposits 7 7 Section 2. Payments on Guaranteed Bonds 7 8 Section 3. Calculation and Notice of Guaranty Payments 9 9 Section 4. Source of Guaranty Payments 10 10 Section 5. The Guaranty, Absolute and Unconditional 10 11 Section 6. VRA as Third Party Beneficiary 12 12 Section 7. Acceptance by the Trustee of Duties Hereunder 12 13 Section 8. Trustee under Guaranty Agreement same as Trustees under Bond Resolutions 13 14 Section 9. Covenants 13 15 Section 10. State Aid Intercept 14 16 Section 11. Effective Date; Expiration Date 14 17 Section 12. Amendments 15 18 Section 13. Notices; Wire Instructions 15 19 Section 14. Applicable Law 18 20 Section 15. Counterparts 18 21 Exhibit A - VRA Release of 2009 VRA Guaranty Agreement 28 22 Exhibit B - Wachovia Release of 2009 Wachovia Guaranty Agreement 31 23 Exhibit C - Virginia Beach Release of Forbearance Agreement 34 24 Schedule 1 - SPSA Indebtedness to VRA as of , 2010 36 25 Schedule 2 - Application of pro rata portions of Cash Consideration 26 to SPSA Indebtedness 37 27 Schedule 3 - SPSA Remaining Indebtedness to VRA 38 28 Schedule 4 - SPSA Post -Purchase Remaining Indebtedness to VRA 39 29 7228599 DRAFT DATED March 09, 2010 1:33 PM 30 GUARANTY AGREEMENT 31 Re: Not to Exceed $50,000,000 in Aggregate Principal Amount 32 Southeastern Public Service Authority of Virginia 33 Senior Subordinated and Guaranteed Subordinated Bonds 34 THIS GUARANTY AGREEMENT is made and entered into as of the day of 35 , 2010, by and among the Guarantors (as hereinafter defined), which shall include all 36 of the CITY OF CHESAPEAKE, the CITY OF FRANKLIN, the CITY OF NORFOLK, the 37 CITY OF PORTSMOUTH, the CITY OF SUFFOLK and the CITY OF VIRGINIA 38 BEACH, all municipal corporations of the Commonwealth of Virginia (the "Commonwealth"), 39 the COUNTY OF ISLE OF WIGHT, a county of the Commonwealth that in accordance with 40 the provisions of Article VII, Section 10(b), Constitution of Virginia 1971, as amended, has 41 elected to become a municipal corporation for purposes of incurring indebtedness, and the 42 COUNTY OF SOUTHAMPTON, a county of the Commonwealth (collectively, the 43 "Guarantors"), SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA, a 44 public body politic and corporate ("SPSA") created and existing under the Virginia Water and 45 Waste Authorities Act, being Chapter 51, Title 15.2, Code of Virginia, 1950, as amended (herein 46 sometimes called the "Act"), and U.S. BANK NATIONAL ASSOCIATION, a national 47 banking association qualified under Virginia law to provide trust services, and currently the 48 trustee under the Bond Resolutions hereinafter mentioned (the "Trustee"), as fiscal agent 49 hereunder, this Guaranty Agreement to be effective on the Effective Date (hereinafter defined), 50 to be supplemented on the New Schedule Date (hereinafter defined) and to expire on the 51 Expiration Date (hereinafter defined), all as provided in Section 11(b) hereof but subject to 52 earlier termination as provided in Section 11(c) hereof. 7228599 DRAFT DATED March 09, 2010 1:33 PM 53 RECITALS 54 R-1. SPSA provides and operates a regional system for the reception, transfer, 55 processing, combusting and disposal of such solid waste ("System"), which includes a Refuse 56 Derived Fuel Plant and a Power Plant (collectively, the "Waste -to -Energy Facilities"), transfer 57 stations and a regional landfill and related facilities and equipment. 58 R-2. SPSA has agreed to sell to Wheelabrator Technologies, Inc. ("Wheelabrator") 59 SPSA's Waste -to -Energy Facilities and related facilities (collectively, the "WTE Facilities") 60 under an agreement by the terms of which SPSA will receive $150,000,000 cash (the "Cash 61 Consideration") and other consideration including a Service Agreement by the terms of which, 62 among other things, the purchaser of the WTE Facilities has agreed to accept and process 63 municipal solid waste generated in SPSA's service area (the "Service Agreement"). 64 R.-3. SPSA has indebtedness outstanding under three resolutions authorizing bonds for 65 purposes of the System (one adopted on August 16, 1989 and last amended and restated on May 66 14, 2009 and known as the "Senior Bond Resolution," a second adopted on February 25, 1998 67 and last amended and restated on May 14, 2009 and known as the "Senior Subordinated Bond 68 Resolution," and the third adopted on May 14, 2009 and known as the "Guaranteed 69 Subordinated Bond Resolution" (all three resolutions, collectively, the "Bond Resolutions" and 70 the Senior Subordinated Bond Resolution and the Guaranteed Subordinated Bond Resolution, 71 collectively, the "Junior Bond Resolutions")). Such indebtedness is shown on Schedule 1. 72 R-4. In accordance with the terms of an Intercreditor Agreement, of even date herewith 73 ("Intercreditor Agreement"), among SPSA and its principal creditors, including Virginia 74 Resources Authority ("VRA"), SPSA has agreed to apply the Cash Consideration to the 75 redemption, prepayment, defeasance, purchase or payment at maturity ("Retirement") of certain 2 7228599 DRAFT DATED March 09, 2010 1:33 PM 76 of its indebtedness, ratably in accordance with the relative proportions of its indebtedness held 77 or enhanced by such creditors as shown in Schedule 2. 78 R-5. Under the terms of the Intercreditor Agreement, SPSA has agreed to obtain the 79 agreement of the Guarantors to enter into this Guaranty Agreement and severally guarantee the 80 full and timely payment to, or for the account of, VRA of all of SPSA's indebtedness not paid 81 or defeased and held by VRA after the application of the Cash Consideration to the Retirement 82 of SPSA indebtedness, the aggregate principal amount of such SPSA indebtedness to VRA 83 having the benefit of this Guaranty Agreement not to exceed $50,000,000 ("SPSA's Remaining 84 VRA Indebtedness"). Schedule 3 shows SPSA's Remaining VRA Indebtedness as of the date 85 hereof. 86 R-6. Each of the Guarantors has entered into an agreement ("Use and Support 87 Agreement") with SPSA for the acquisition, construction and operation by SPSA of the System, 88 and each of the Guarantors has agreed to deliver or cause to be delivered to the System 89 substantially all of the solid waste (excluding hazardous solid waste) under its control and, 90 subject to certain exceptions and limitations, to pay SPSA tipping fees for its disposal of such 91 solid waste. 92 R-7. Chapter 544, Virginia Acts of Assembly, 1977, as amended and reenacted by 93 Chapter 872, Virginia Acts of Assembly, 2003, both enacted pursuant to Article VII, Section 94 10(a)(4) of the Constitution of Virginia 1971, as amended, authorizes the Guarantors, except the 95 County of Southampton, to contract obligations to provide payments over a period or periods of 96 more than one year to guarantee the payment of all or any part of the principal of and the interest 97 on bonds issued by SPSA on account of the System and provides that such payments shall be an 3 7228599 DRAFT DATED March 09, 2010 1:33 PM 98 excluded indebtedness within the meaning of and for the purposes of Article VII, Section 10(a) 99 of the Constitution of Virginia 1971, as amended. 100 R-8. Section 15.2-5114.9 of the Act authorizes the County of Southampton to lend, 101 advance or give money to SPSA. 102 R-9. By the entry of the Guarantors into this Guaranty Agreement, VRA will be 103 induced to enter into, and SPSA will be enabled to meet the requirements of, the Intercreditor 104 Agreement. By its compliance with the terms thereof, SPSA can effect the sale of the WTE 105 Facilities, receive the Cash Consideration and apply the Cash Consideration to the reduction of 106 its indebtedness. By the entry of SPSA, VRA and SPSA's other principal creditors into the 107 Intercreditor Agreement and the application made possible thereby of the Cash Consideration to 108 the reduction of SPSA's indebtedness and thereby the mitigation of the tipping fees the 109 Guarantors would otherwise pay and the continuation of the service provided by SPSA through 110 (i) the System, as modified by the sale of the WTE Facilities, and (ii) the Service Agreement, the 111 Guarantors will be induced to enter into this Guaranty Agreement. 112 R-10. SPSA intends to endeavor to purchase with the Cash Consideration such portion 113 of its indebtedness outstanding under its Bond Resolutions that it can purchase at a net cost that 114 is less than the cost to SPSA of redeeming, prepaying, defeasing or paying at maturity such 115 indebtedness, such that to the extent that SPSA purchases any of SPSA's Remaining VRA 116 Indebtedness ("Purchased VRA Indebtedness"), the aggregate indebtedness (principal and 117 interest) described in Schedule 3 to this Guaranty Agreement (the "Current Schedule") that 118 would otherwise be guaranteed by the Guarantors under this Guaranty will be reduced. SPSA's 119 efforts to purchase and retire its indebtedness will commence on the Effective Date and conclude 120 within 90 days after the Effective Date (the "New Schedule Date"), after which SPSA will 4 7228599 II I DRAFT DATED March 09, 2010 1:33 PM 121 provide to the Trustee, the Guarantors and VRA Schedule 4 (the "Revised Schedule" ) that will 122 describe SPSA's Remaining VRA Indebtedness less the Purchased VRA Indebtedness in the 123 same detail provided in the Current Schedule, and the Revised Schedule will replace the Current 124 Schedule and become a part of this Guaranty Agreement the same as if were a part hereof on the 125 Effective Date. On the Effective Date, SPSA's Remaining VRA Indebtedness shown in the 126 Current Schedule shall have the benefit of this Guaranty Agreement, and, from and after the date 127 that SPSA delivers the Revised Schedule to the Trustee, VRA and the Guarantors, SPSA's 128 Remaining VRA Indebtedness less the Purchased VRA Indebtedness shall have the benefit of 129 this Guaranty Agreement. 130 R-11. The Cities of Franklin, Portsmouth and Suffolk and the Counties of Isle of Wight 131 and Southampton (the "2009 VRA Guarantors") delivered for the benefit of VRA a Guaranty 132 Agreement, dated as of June 1, 2009 (the "2009 VRA Guaranty"), by which the 2009 VRA 133 Guarantors severally agreed to make certain payments in the event that SPSA failed to do so 134 under its Guaranteed Subordinated Bond Resolution, and VRA has agreed, in consideration of 135 SPSA's and the Guarantors' delivery of this Guaranty Agreement, to release the 2009 VRA 136 Guarantors and SPSA from their respective obligations under the 2009 VRA Guaranty and to 137 join with the 2009 VRA Guarantors and SPSA in directing the Trustee (as therein defined) in 138 executing the release appended to this Guaranty Agreement as Exhibit A and to mark 139 "Canceled," and return to the 2009 VRA Guarantors and SPSA, the 2009 VRA Guaranty for 140 destruction. 141 R-12. Each of the Cities of Chesapeake and Norfolk (the "2009 Wachovia Guarantors") 142 delivered for the benefit of Wachovia Bank, National Association ("Wachovia"), a Guaranty 143 Agreement, dated as of May 15, 2009 (the "2009 Wachovia Guaranty"), by which the 2009 5 7228599 DRAFT DATED March 09, 2010 1:33 PM 144 Wachovia Guarantors severally agreed to make certain payments in the event that SPSA failed to 145 do so on its promissory note to Wachovia in respect of a line of credit extended to SPSA by 146 Wachovia, and Wachovia has agreed, in consideration of SPSA terminating its right to draw on 147 the line of credit (no amounts being due on SPSA's promissory note), to release the 2009 148 Wachovia Guarantorsfrom their obligations under the 2009 Wachovia Guaranty and to join with 149 the 2009 Wachovia Guarantors and SPSA in executing the release appended to this Guaranty 150 Agreement as Exhibit B and to mark "Canceled," and return to SPSA for destruction, the 2009 151 Wachovia Guaranty and SPSA's promissory note secured thereby. 152 R-13. The City of Virginia Beach ("Virginia Beach") and SPSA entered into a 153 Forbearance Agreement, dated as of May 15, 2009 (the "2009 Forbearance Agreement"), under 154 which Virginia Beach agreed, among other things, to forbear from exercising its rights to receive 155 certain payments from SPSA, and SPSA issued its Junior Subordinated Revenue Note to 156 Virginia Beach to evidence its obligation to make certain payments to Virginia Beach, and 157 Virginia Beach has agreed, in consideration of SPSA's payment of all amounts owing under the 158 Forbearance Agreement and the Junior Subordinated Revenue Note, to release SPSA from its 159 obligations under the 2009 Forbearance Agreement, to execute the release appended to this 160 Guaranty Agreement as Exhibit C and to mark "Canceled," and return to SPSA for destruction, 161 the 2009 Forbearance Agreement and SPSA's Junior Subordinated Revenue Note secured 162 thereby. 163 R-14. Each Guarantor has determined that it is necessary and proper and in its best 164 interest to enter into this Guaranty Agreement and to agree severally to make, from time to time, 165 payments to, or for the account of, VRA to pay in full, as and when they are scheduled to 166 become due and payable, the principal of and the interest on bonds described in the Current 6 7228599 DRAFT DATED March 09, 2010 1:33 PM 167 Schedule (or the Revised Schedule from and after the time that it shall replace the Current 168 Schedule) (the "Guaranteed Bonds"), and thereby to guarantee the full and timely scheduled 169 payments of such principal and interest ("Debt Service") on the Guaranteed Bonds. 170 NOW, THEREFORE, in consideration of and as an inducement to VRA to execute and 171 deliver the Intercreditor Agreement, the Guarantors do hereby severally covenant and agree with 172 SPSA and the Trustee, and SPSA does hereby covenant and agree with the Guarantors and the 173 Trustee, as follows: 174 Section 1. Notice of Failure to Make Monthly Deposits. 175 (a) Deposit Day. Under the Bond Resolutions, SPSA is obligated to transfer to the 176 Trustee amounts at least sufficient for the Trustee to make, not later than the 12th day of each 177 calendar month (a "Deposit Day"), deposits to special accounts under and in accordance with all 178 three Bond Resolutions in the respective amounts equal to the accrued Debt Service on SPSA's 179 indebtedness outstanding thereunder. 180 (b) Notice. In the event that SPSA has not made, by the 16th day of any month, a 181 transfer to the Trustee sufficient for the Trustee to make all the deposits described in subsection 182 (a) of this Section 1, then both SPSA and the Trustee, independently, shall notify the Guarantors 183 and VRA of the existence of the insufficiency, the total amount thereof and the account or 184 accounts in which a deficiency exists and the amount thereof. 185 Section 2. Payments on Guaranteed Bonds. If, in the determination of the 186 Trustee, (i) a deficiency exists on the 5th "Business Day" immediately prior to a "Payment Date" 187 on the Guaranteed Bonds in the amounts (A) on deposit in the Senior Subordinated Obligations 188 Subaccount in the Subordinated Obligations Account under the Senior Subordinated Bond 189 Resolution and/or (B) on deposit in the Guaranteed Subordinated Obligations Subaccount in the 7 7228599 DRAFT DATED March 09, 2010 1:33 PM 190 Subordinated Obligations Account under the Guaranteed Subordinated Bond Resolution, and (ii) 191 there are not, under the Bond Resolutions, other funds legally available to the Trustee sufficient 192 for the Trustee to make the payments of Debt Service due on the Guaranteed Bonds on such 193 Payment Date, the Trustee shall give notice thereof, as described in Section 3(a), to the 194 Guarantors, and the Guarantors hereby severally agree to make, all as provided hereinafter in this 195 Guaranty Agreement, on or before such Payment Date, payments to, or for the account of, VRA 196 as provided in Section 3 in the amount of such deficiency ("Debt Service Deficiency") and for 197 the credit of SPSA. Not later than simultaneously with its making such payment, each Guarantor 198 shall notify VRA, the Trustee and SPSA of such payment and the date and amount such payment 199 was or is being made. It shall not be a default under this Guaranty Agreement if any Guarantor 200 shall fail to give any notice required by the preceding sentence. If prior to the Payment Date, 201 SPSA shall otherwise provide to the Trustee funds sufficient to remedy the Debt Service 202 Deficiency in the accounts described in clause (i)(A) and (B) above, then the Trustee shall 203 promptly so notify the Guarantors and return to such of them as shall have made payments 204 pursuant to the third preceding sentence the amount of such payments but without interest. 205 As used in this Guaranty Agreement, 206 "Business Day" means a calendar day that is not a Saturday or Sunday or a 207 legal holiday in the Commonwealth or a day on which banks doing business in the 208 Commonwealth are authorized to close. 209 "Payment Date" means as to the Guaranteed Bonds the date on which 210 interest or principal and interest thereon is scheduled to become due and payable to VRA. 211 8 7228599 DRAFT DATED March 09, 2010 1:33 PM 212 Section 3. Calculation and Notice of Guaranty Payments. 213 (a) Allocation of Deficiency. If the Trustee shall have determined that a Debt Service 214 Deficiency, described in Section 2, exists, the Trustee shall include in the notice the amount of 215 each Guarantor's "Allocable Portion" of the deficiency (determined by multiplying the 216 "Applicable Percentage," as defined below, for such Guarantor by the aggregate amount of the 217 Debt Service Deficiency). Each Guarantor hereby agrees to make, without further notice or 218 demand therefor, on or before the applicable Payment Date, payment to the Trustee in the 219 amount of its Allocable Portion of such Debt Service Deficiency. 220 (b) Applicable Percentages. The Applicable Percentages for the Guarantors, shall be as 221 follows: Guarantor Applicable Percentage City of Chesapeake 22.49% City of Franklin 0.97% County of Isle of Wight 3.98% City of Norfolk 16.98% City of Portsmouth 10.27% County of Southampton 2.10% City of Suffolk 12.87% City of Virginia Beach 30.34% 222 (c) Reimbursement for Guaranty Payments. To the extent that a Guarantor shall have 223 made a payment to VRA, or to the Trustee for the account of VRA, pursuant to this Section, such 224 Guarantor shall be subrogated to the rights of VRA as against SPSA and thereby entitled to 225 reimbursement from SPSA (i) in accordance with the provisions of the Reimbursement 226 Agreement of even date herewith between SPSA and the Guarantors and (ii) subject to, in the 9 7228599 DRAFT DATED March 09, 2010 1:33 PM 227 case of SPSA's Senior Subordinated Revenue Bond, Series 22 and allonges thereto, the amount, 228 if any, owing thereon to Wachovia on account of SPSA's obligation to reimburse Wachovia for 229 any draws on Wachovia's letter of credit, or a comparable facility, issued to the Virginia 230 Department of Environmental Quality to meet its requirements for "financial assurance" relating 231 to the capital costs associated with the closure of SPSA's landfill and other facilities. 232 Section 4. Source of Guaranty Payments. Any amount required to be paid by 233 a Guarantor pursuant to Section 2 hereof may be paid from any funds of such Guarantor legally 234 available therefor; provided, however, that if no other funds are legally available for such 235 payment, such amount shall be paid from ad valorem taxes levied or to be levied on all taxable 236 real and tangible personal property within such Guarantor, and each Guarantor (except the 237 County of Southampton) hereby pledges its full faith and credit to the payment of such amount. 238 The obligation of the County of Southampton to provide for such payment is subject to the 239 appropriation by its Board of Supervisors of funds from which such payment obligation may be 240 made. Each Guarantor hereby covenants that promptly after receiving a notice from the Trustee 241 of a Debt Service Deficiency pursuant to Section 2 of this Guaranty Agreement, such Guarantor 242 will amend its current budget, if and as necessary, to include an amount sufficient to make its 243 Allocable Portion of such Deficiency as provided in Section 3(a). 244 Section 5. The Guaranty, Absolute and Unconditional. Each Guarantor 245 hereby absolutely and unconditionally agrees to pay its Allocable Portion of any Debt Service 246 Deficiency mentioned in Section 3(a) of this Guaranty Agreement as provided in any notice 247 provided by the Trustee pursuant to Section 2(a) without regard to the cause of such Debt 248 Service Deficiency; provided, however, that the obligation of the County of Southampton to 249 provide for such payment is subject to the appropriation of funds from which such payment 10 7228599 DRAFT DATED March 09, 2010 1:33 PM 250 obligation can be met. Each Guarantor further agrees that its agreement to pay its Allocable 251 Portion of any Debt Service Deficiency shall not be subject to diminution by set-off, 252 counterclaim, abatement or any other rights which the Guarantor may have against the Trustee or 253 VRA or SPSA or any other Guarantor pursuant to the Bond Resolutions, the Use and Support 254 Agreements, the Service Agreement or any other contract relating to the System, this Guaranty 255 Agreement or any other agreement or any law for reimbursement of all or any part of such 256 payment. Default by one or more of the Guarantors with respect to their obligations hereunder 257 shall not release any other Guarantor from its obligations hereunder. 258 The Guarantors agree that this Guaranty Agreement and the obligations of the 259 Guarantors hereunder shall be unconditional and shall not in any manner be impaired, modified, 260 or affected if, among other things, (i) any event of default described in any of the Bond 261 Resolutions or in any of the Financing Agreement, dated as of June 1, 2009, as amended, 262 between VRA and SPSA, the Use and Support Agreements or the Service Agreement shall 263 occur, (ii) the Bond Resolutions, or any of them, the Use and Support Agreements, or any of 264 them, the Service Agreement or any other contract relating to the System shall be amended or 265 supplemented in accordance with the Bond Resolutions, (iii) the Bond Resolutions, or any of 266 them, or the Use and Support Agreements, or any of them, the Service Agreement, or any other 267 contract relating to the System shall be determined by a court of competent jurisdiction to be null 268 and void or otherwise unenforceable in whole or in part, (iv) any sale, lease, or other disposition 269 or change in the ownership or control or abandonment of, or any damage or destruction to, all of 270 any portion of the System shall occur, (v) any diminution in SPSA's or Wheelabrator's ability to 271 provide, or cause to be provided, the solid waste disposal services required under the Use and 272 Support Agreements and the Service Agreement shall occur, or (vi) SPSA shall delay or omit to 11 7228599 DRAFT DATED March 09, 2010 1:33 PM 273 exercise any right or power or perform any duty or obligation under the Bond Resolutions, the 274 Use and Support Agreements, the Service Agreement or any other contract relating to the System 275 or this Guaranty Agreement. 276 This Guaranty Agreement shall be construed as a guaranty of payment and, in the 277 event of a Debt Service Deficiency or any other event of default described in clause (i) of the 278 preceding sentence, neither VRA nor the Trustee shall be required to institute or complete any 279 efforts of collection against SPSA prior to proceeding against the Guarantors. 280 For avoidance of doubt, if any event of default described in either or both of the Junior 281 Resolutions shall have occurred and be continuing and the Trustee under either or both of the 282 Junior Resolutions shall have declared that the principal of all the bonds outstanding under such 283 resolution or resolutions to be due and payable immediately, such declaration shall have no force 284 or effect on the obligation of the Guarantors under this Guaranty Agreement, which obligation 285 shall remain to pay their Allocable Portions of any Debt Service Deficiency on or before each 286 Payment Date as the same shall occur without regard to any acceleration of principal of or 287 interest on the Guaranteed Bonds. 288 Section 6. VRA as Third Party Beneficiary. The Guarantors, SPSA and the 289 Trustee each hereby acknowledge that VRA, and no other person, is the third party beneficiary 290 of this Guaranty Agreement. 291 Section 7. Acceptance by the Trustee of Duties Hereunder. U.S. Bank 292 National Association hereby accepts the duties and responsibilities imposed upon the Trustee by 293 this Guaranty Agreement, upon the terms and conditions, including indemnification and 294 compensation, provided in Article IX of the Senior Subordinated Bond Resolution and Article IX 295 of the Guaranteed Subordinated Bond Resolution. 12 7228599 DRAFT DATED March 09, 2010 1:33 PM 296 Section 8. Trustee under Guaranty Agreement same as Trustees under Bond 297 Resolutions. The Trustee for purposes of this Guaranty Agreement shall at all times be the same 298 as the Trustee or Trustees under the Junior Bond Resolutions and, to that end, should the Trustee 299 under both the Junior Bond Resolutions resign or be removed, the Trustee hereunder shall be 300 deemed, ipso facto, to have resigned or to have been removed, and the successor trustee under 301 the Junior Bond Resolutions, upon its acceptance of the trusts thereunder and hereunder, shall 302 become automatically the Trustee hereunder; provided, however, that if the trustee under one but 303 not both Junior Bond Resolutions resigns or is removed as trustee thereunder, then SPSA shall 304 appoint another bank or trust company meeting the qualifications of the trustee under the 305 applicable Junior Bond Resolution, and the provisions of this Guaranty Agreement applicable to 306 the Trustee shall apply to, the word "Trustee" thereunder shall refer to, and the provisions of 307 Section 7 shall apply to, such successor Trustee. 308 Section 9. Covenants. 309 (a) Enforcement of Service Agreement and Use and Support Agreements. SPSA 310 covenants, for the benefit of the Guarantors, the Trustee, and the holders from time to time of its 311 Guaranteed Bonds, that SPSA will defend and enforce the provisions of (i) the Service 312 Agreement and (ii) the Use and Support Agreements with each of the Guarantors in accordance 313 with their respective terms. 314 (b) Additional Indebtedness. SPSA covenants, for the benefit of the Guarantors, the 315 Trustee and VRA that SPSA will borrow no money and in evidence thereof issue any bonds, 316 notes or other evidences of indebtedness, enter into any installment purchase, lease purchase, 317 sale or lease -leaseback transactions or incur any additional certificated indebtedness 318 (collectively, "Additional Indebtedness") except in accordance with the provisions of the Act, 13 7228599 DRAFT DATED March 09, 2010 1:33 PM 319 including in particular and without limitation, the provisions of clauses 8 and 9 of Section 15.2- 320 5102.1, Code of Virginia 1950 as amended. 321 Section 10. State Aid Intercept. The Guarantors each hereby acknowledge that 322 VRA and the Trustee may take any and all actions available to them under the laws of the 323 Commonwealth, including the invocation of the "state -aid intercept" provisions of Section 62.1- 324 216.1 of the Virginia Resources Authority Act and, except in the case of the County of 325 Southampton, Section 15.2-2659 of the Public Finance Act, to obtain any payment of the 326 principal of and premium, if any, and interest on the Guaranteed Bonds or any payment due 327 under this Guaranty Agreement. 328 Section 11. Effective Date; Expiration Date. 329 (a) Effective Date. This Guaranty Agreement shall become effective on the date (the 330 "Effective Date") that SPSA shall receive the Cash Consideration, SPSA shall transfer title to the 331 WTE Facilities to or at the direction of the purchaser thereof and the Service Agreement shall 332 become effective; provided that on or prior to such date, the governing body of each Guarantor 333 shall have authorized such Guarantor to execute and deliver this Guaranty Agreement and each 334 such Guarantor shall have executed and delivered this Guaranty Agreement, and certified copies 335 of the proceedings of each Guarantor evidencing such authorization, together with an opinion or 336 opinions of counsel nationally recognized in the field of municipal bond law, addressed to the 337 Trustee and to VRA, to the effect that this Guaranty Agreement is valid and binding on each 338 such Guarantor in accordance with its terms, shall have been delivered to the Trustee. 339 (b) Expiration Date. This Guaranty Agreement shall expire on the final stated 340 maturity date of the Guaranteed Bonds, or, if all amounts of principal and interest owing on the 341 Guaranteed Bonds shall not have been paid or defeased on their final stated maturity date, then 14 7228599 DRAFT DATED March 09, 2010 1:33 PM 342 on such later date as all of the Guaranteed Bonds shall have been paid or defeased in accordance 343 with their respective terms. Notwithstanding any other provision of this Guaranty Agreement, the 344 provisions of this Section 11(b) are in all respects subject to the provisions of Section 11(c). 345 (c) Early Termination. In the event that all of the Guaranteed Bonds shall have been 346 retired or defeased prior to the last stated maturity date of the Guaranteed Bonds in accordance 347 with their applicable Junior Resolution, this Guaranty Agreement shall terminate as of such 348 earlier date. 349 Section 12. Amendments. This Guaranty Agreement may not be amended or 350 supplemented except by a supplemental guaranty agreement executed by all of SPSA, the 351 Guarantors and the Trustee and approved by VRA. 352 Section 13. Notices; Wire Instructions. 353 (a) Notices. Unless otherwise provided in this Guaranty Agreement, all demands, 354 notices, approvals, consents, requests and other communications under this Guaranty Agreement 355 shall be in writing and shall be given first by electronic or facsimile transmission and shall be 356 confirmed and deemed to have been given when delivered in person or mailed via overnight 357 delivery addressed as set forth below: 358 If to a Guarantor, at: 359 City of Chesapeake, Virginia 360 306 Cedar Road 361 Chesapeake, Virginia 23322 362 Attention: City Manager 363 Facsimile: (757) 382-6507 364 E-mail: weharrell(c%cityofchesapeake.net 365 7228599 15 366 City of Franklin, Virginia 367 207 W. Second Avenue 368 Franklin, Virginia 23851 369 Attention: City Manager 370 Facsimile: (757) 562-7982 371 E-mail: jfleming(a)franklinva.com 372 County of Isle of Wight, Virginia 373 17090 Monument Circle 374 Isle of Wight, Virginia 23397 375 Attention: County Administrator 376 Facsimile: (757) 357-9171 377 E-mail: dcaskey,@isleofwightus.net 378 City of Norfolk, Virginia 379 810 Union Street 380 City Hall Building 381 Norfolk, Virginia 23510 382 Attention: City Manager 383 Facsimile: (757) 664-4424 384 E-mail: rvkwi1liams(&norfolk.gov 385 City of Portsmouth, Virginia 386 801 Crawford Street, 6th Floor 387 Portsmouth, Virginia 23704 388 Attention: City Manager 389 Facsimile: (757) 393-5241 390 E-mail: chandlerk(cportsmouthva.gov 391 County of Southampton, Virginia 392 26022 Administration Center Drive 393 Courtland, Virginia 23837 394 Attention: County Administrator 395 Facsimile: (757) 653-0227 396 E-mail: rnikejohnson@co.southampton.state.va.us 397 City of Suffolk, Virginia 398 441 Market Street 399 Suffolk, Virginia 23434 400 Attention: City Manager 401 Facsimile: (757) 539-2621 402 E-mail: SCG1enn@city.suffolk.va.us 403 7228599 16 DRAFT DATED March 09, 2010 1:33 PM DRAFT DATED March 09, 2010 1:33 PM 404 City of Virginia Beach, Virginia 405 2401 Courthouse Drive 406 Municipal Center Building 1 407 Virginia Beach, Virginia 23456 408 Attention: City Manager 409 Facsimile: (757) 427-5626 410 E-mail: jspore@vbgov.com 411 If to VRA, at: 412 Virginia Resources Authority 413 1111 East Main Street, 19th Floor 414 Richmond, Virginia 23219 415 Attention: Executive Director 416 Facsimile: 417 E-mail: 418 If to the Trustee, at: 419 U.S. Bank National Association 420 1021 East Cary Street, 18th Floor 421 Richmond, Virginia 23219 422 Attention: Corporate Trust Department 423 Facsimile: 424 E-mail: 425 If to SPSA, at: 426 Southeastern Public Service Authority 427 723 Woodlake Drive 428 Chesapeake, Virginia 23320 429 Attention: Executive Director 430 Facsimile: (757) 424-4133 431 E-mail: rtaylor@spsa.com 432 VRA, each of the Guarantors, SPSA and the Trustee may designate, by notice given hereunder, 433 any further or different addresses to which subsequent demands, notices, approvals, consents, 434 requests or other communications shall be sent or persons to whose attention the same shall be 435 directed. 436 (b) Wire Instructions. Payments owing by the Guarantors hereunder shall be 437 made by wire transfer for the account of VRA as follows: 17 7228599 DRAFT DATED March 09, 2010 1:33 PM 438 [to come] 439 VRA may designate, by notice given hereunder, any further or different instructions as to where 440 subsequent payments shall be sent or persons to whose attention the same shall be directed. 441 Section 14. Applicable Law. This Guaranty Agreement shall be governed by 442 and construed in accordance with the laws of the Commonwealth. 443 Section 15. Counterparts. This Guaranty Agreement may be executed in 444 multiple counterparts, each of which shall be regarded for all purposes as an original; and such 445 counterparts shall constitute but one and the same instrument. 446 IN WITNESS WHEREOF, each of the Guarantors, being the City of 447 Chesapeake, the City of Franklin, the City of Norfolk, the City of Portsmouth, the City of 448 Suffolk, the City of Virginia Beach, the County of Isle of Wight, and the County of 449 Southampton, has caused this Guaranty Agreement to be executed on its behalf by its mayor or 450 county or city manager or administrator, as the case may be, and its corporate seal to be 451 impressed hereon and attested by its clerk, Southeastern Public Service Authority of Virginia has 452 caused this Guaranty Agreement to be executed on its behalf by its Executive Director and its 453 corporate seal to be impressed hereon and attested by its Secretary or an Assistant Secretary, and 454 U.S. Bank National Association has caused this Guaranty Agreement to be executed on its behalf 455 by its duly authorized trust officer, all as of the date and year first written above. 456 7228599 18 DRAFT DATED March 09, 2010 1:33 PM 457 CITY OF CHESAPEAKE, VIRGINIA 458 By: 459 460 (Corporate seal) 461 ATTEST: 462 463 Clerk 464 Approved as to form: 465 466 City Attorney 467 19 7228599 DRAFT DATED March 09, 2010 1:33 PM 468 CITY OF FRANKLIN, VIRGINIA 469 By: 470 471 (Corporate seal) 472 ATTEST: 473 474 Clerk 475 Approved as to form: 476 477 City Attorney 478 20 7228599 DRAFT DATED March 09, 2010 1:33 PM 479 COUNTY OF ISLE OF WIGHT, VIRGINIA 480 By: 481 482 (Corporate seal) 483 ATTEST: 484 485 Clerk 486 Approved as to form: 487 488 County Attorney 489 21 7228599 DRAFT DATED March 09, 2010 1:33 PM 490 CITY OF NORFOLK, VIRGINIA 491 By: 492 493 (Corporate seal) 494 ATTEST: 495 496 Clerk 497 Approved as to form: 498 499 City Attorney 500 22 7228599 DRAFT DATED March 09, 2010 1:33 PM 501 CITY OF PORTSMOUTH, VIRGINIA 502 By: 503 504 (Corporate seal) 505 ATTEST: 506 507 Clerk 508 Approved as to form: 509 510 City Attorney 511 23 7228599 DRAFT DATED March 09, 2010 1:33 PM 512 COUNTY OF SOUTHAMPTON, VIRGINIA 513 By: 514 515 (Corporate seal) 516 ATTEST: 517 518 Clerk 519 Approved as to form: 520 521 County Attorney 522 523 24 7228599 524 525 526 527 DRAFT DATED March 09, 2010 1:33 PM CITY OF SUFFOLK, VIRGINIA By: 528 (Corporate seal) 529 530 531 ATTEST: 532 533 534 Clerk 535 536 537 Approved as to form: 538 539 540 City Attorney 541 25 7228599 542 543 544 545 546 DRAFT DATED March 09, 2010 1:33 PM CITY OF VIRGINIA BEACH, VIRGINIA By: 547 (Corporate seal) 548 549 550 ATTEST: 551 552 553 Clerk 554 555 556 Approved as to form: 557 558 559 City Attorney 560 561 26 7228599 562 563 564 565 566 567 568 569 570 (Corporate seal) 571 572 573 ATTEST: 574 575 DRAFT DATED March 09, 2010 1:33 PM SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA By: Its: Executive Director 576 [Assistant] Secretary 577 578 579 27 7228599 DRAFT DATED March 09, 2010 1:33 PM 580 U. S. BANK NATIONAL ASSOCIATION 581 582 By: 583 584 7228599 28 585 586 587 DRAFT DATED March 09, 2010 1:33 PM RELEASE Exhibit A 588 dated as of , 2010 589 590 of the 591 GUARANTY AGREEMENT 592 dated as of June 1, 2009 593 among 594 City of Franklin, 595 City of Portsmouth, 596 City of Suffolk, 597 County of Isle of Wight, and 598 County of Southampton, 599 (Guaranteeing Units), 600 Southeastern Public Service Authority of Virginia 601 (Beneficiary), and 602 U.S. Bank National Association, 603 as Fiscal Agent and Trustee, 604 605 for the benefit of 606 Virginia Resources Authority 607 (Third Party Beneficiary) 608 29 7228599 DRAFT DATED March 09, 2010 1:33 PM 609 610 RECITALS 611 R-1. On June 13, 2009, Virginia Resources Authority ("VRA") purchased from 612 Southeastern Public Service Authority of Virginia ("SPSA") SPSA's Guaranteed Subordinated 613 Revenue Bond, Refunding Series 2009 (Taxable), in the principal amount of $71,985,000 (the 614 "Guaranteed Bond") in part in reliance on, and secured by, a Guaranty Agreement dated as of 615 June 1, 2009 (the "2009 VRA Guaranty Agreement"), by and among the City of Franklin, the 616 City of Portsmouth, the City of Suffolk, the County of Isle of Wight, and the County of 617 Southampton (each a "Guaranteeing Unit" and, collectively the "Guaranteeing Units"), SPSA 618 and U.S. Bank National Association, as fiscal agent thereunder (the "Trustee"). 619 620 R-2. VRA, the Guaranteeing Units and SPSA have entered into subsequent agreements 621 by the terms of which SPSA will defease, redeem or purchase certain outstanding indebtedness, 622 including bonds of VRA, the proceeds of which VRA applied to fund the purchase price of the 623 Guaranteed Bond and thereby, in the form of an allonge, receive a credit against the principal 624 and interest otherwise due on the Guaranteed Bond; the Guaranteeing Units and the City of 625 Chesapeake, the City of Norfolk and the City of Virginia Beach (collectively, the "Guarantors") 626 have entered into a Guaranty Agreement, dated as of , 2010 (the "New Guaranty 627 Agreement"), with SPSA and the Trustee by the terms of which the Guarantors, in accordance 628 with the terms of the New Guaranty Agreement, have severally agreed to guarantee to the 629 Trustee for the benefit of VRA the full and timely payment of the remaining unpaid debt service 630 on the Guaranteed Bond as amended by an allonge thereto. 631 632 R-3. One condition to the delivery by the Guarantors of the New Guaranty Agreement 633 is that the Guaranteeing Units and SPSA be relieved of their respective obligations under the 634 2009 VRA Guaranty Agreement simultaneously with their delivery of the New Guaranty 635 Agreement, and VRA, as the third party beneficiary of the 2009 VRA Guaranty Agreement, be 636 willing to release its rights under such agreement and join the Guaranteeing Units and SPSA in 637 requesting and directing the Trustee to release such agreement, and VRA and the Trustee are 638 delivering this release in evidence of their relinquishment of their respective rights under the 639 2009 VRA Guaranty Agreement. 640 641 [End of page; this space intentionally left blank] 642 30 7228599 DRAFT DATED March 09, 2010 1:33 PM 643 644 Now, therefore, VRA hereby releases (i) all of its rights as third party beneficiary under 645 the 2009 VRA Guaranty Agreement and (ii) the Guaranteeing Units and SPSA from their 646 respective obligations under the 2009 VRA Guaranty Agreement, and VRA hereby requests and 647 directs the Trustee to acknowledge such release and to provide a counterpart of this Release to 648 each Guaranteeing Unit and to SPSA. 649 650 Dated this _ day of , 2010. 651 652 VIRGINIA RESOURCES AUTHORITY 653 By: 654 Dr. Sheryl Bailey, Ph.D 655 Executive Director 656 657 658 Acknowledged and agreed: U.S. BANK NATIONAL ASSOCIATION 659 660 By: 661 Authorized Representative 662 663 Received and accepted: SOUTHEASTERN PUBLIC SERVICE 664 AUTHORITY OF VIRGINIA 665 By: 666 Authorized Representative 667 668 Received and accepted: CITY OF FRANKLIN 669 By: 670 Authorized Representative 671 672 Received and accepted: CITY OF PORTSMOUTH 673 By: 674 Authorized Representative 675 676 Received and accepted: CITY OF SUFFOLK 677 By: 678 Authorized Representative 679 680 Received and accepted: COUNTY OF ISLE OF WIGHT 681 By: 682 Authorized Representative 683 684 Received and accepted: COUNTY OF SOUTHAMPTON 685 By: 686 Authorized Representative 687 688 7228599 31 DRAFT DATED March 09, 2010 1:33 PM 689 690 Exhibit B 691 692 RELEASE 693 dated as of , 2010 694 695 of the 696 GUARANTY AGREEMENT 697 dated as of May 15, 2009 698 among 699 700 701 Southeastern Public Service Authority of Virginia 702 (Beneficiary) 703 and 704 City of Chesapeake 705 and 706 City of Norfolk, 707 (Guarantors) 708 709 710 for the benefit of 711 Wachovia Bank, National Association 712 (Third Party Beneficiary) 713 7228599 32 DRAFT DATED March 09, 2010 1:33 PM 714 715 RECITALS 716 R-1. On May 15, 2009, the City of Chesapeake and the City of Norfolk delivered to 717 Wachovia Bank, National Association ("Wachovia") a Guaranty Agreement dated as of May 15, 718 2009 (the "2009 Wachovia Guaranty Agreement"), by and among Southeastern Public Service 719 Authority ("SPSA"), the City of Chesapeake and the City of Norfolk (each City a "Guarantor" 720 and, collectively, "Guarantors") by the terms and conditions of which the Guarantors severally 721 agreed to guarantee certain payments by SPSA owing to Wachovia on SPSA.'s promissory note, 722 in the principal amount of up to $17,200,000, evidencing unpaid draws by . SPSA on a line of 723 credit extended by Wachovia to SPSA. 724 725 R-2. Virginia Resources Authority ("VRA"), the Guarantors, SPSA's other six 726 members and SPSA have entered into subsequent agreements by the terms of which SPSA will 727 defease or redeem or purchase certain outstanding indebtedness, and the Guarantors and the City 728 of Franklin, the City of Portsmouth, the City of Suffolk, the City of Virginia Beach, the County 729 of Isle of Wight and the County of Southampton (collectively, the "New Guarantors") have 730 entered into a Guaranty Agreement, dated as of , 2010 (the "New Guaranty 731 Agreement"), with SPSA and the Trustee under SPSA's Senior Subordinated Bond Resolution 732 and Guaranteed Senior Subordinated Bond Resolution, by the terms and conditions of which the 733 New Guarantors have severally agreed to guarantee to the Trustee, for the benefit of VRA, the 734 full and timely payment of the remaining SPSA debt to VRA. 735 736 R-3. One condition to the delivery by the Guarantors and SPSA of the New Guaranty 737 Agreement is that the Guarantors and SPSA be relieved of their respective obligations under the 738 2009 Wachovia Guaranty Agreement prior to or simultaneously with the delivery of the New 739 Guaranty Agreement, and Wachovia, as the third party beneficiary of the 2009 Wachovia 740 Guaranty Agreement, be willing to release its rights under and execute a release of such 741 agreement, and Wachovia is delivering this release in evidence of its relinquishment of its rights 742 under the 2009 Wachovia Guaranty Agreement. 743 [End of page; this space intentionally left blank] 744 33 7228599 DRAFT DATED March 09, 2010 1:33 PM 745 746 Now, therefore, Wachovia hereby releases (i) all of its rights as third party beneficiary 747 under the 2009 Wachovia Guaranty Agreement and (ii) the Guarantors and SPSA from their 748 respective obligations under the 2009 Wachovia Guaranty Agreement. 749 Dated this day of , 2010. 750 751 WACHOVIA BANK, NATIONAL ASSOCIATION 752 753 By: 754 Vanessa G. Wilson/Stephanie L. Foster 755 Vice President 756 757 758 Received and accepted: SOUTHEASTERN PUBLIC SERVICE 759 AUTHORITY OF VIRGINIA 760 761 By: 762 Authorized Representative 763 764 765 Received and accepted: CITY OF CHESAPEAKE 766 767 By: 768 Authorized Representative 769 770 771 Received and accepted: CITY OF NORFOLK 772 By: 773 Authorized Representative 774 775 7228599 34 DRAFT DATED March 09, 2010 1:33 PM 776 777 778 779 780 781 RELEASE and TERMINATION 782 783 dated as of , 2010 784 785 786 of the 787 788 FORBEARANCE AGREEMENT 789 dated as of May 15, 2009 790 791 792 between 793 794 795 796 and 797 City of Virginia Beach, Exhibit C 798 Southeastern Public Service Authority of Virginia 799 35 7228599 DRAFT DATED March 09, 2010 1:33 PM 800 801 RECITALS 802 803 R-1. On May 15, 2009, the City of Virginia Beach (the "City) and the Southeastern 804 Public Service Authority of Virginia ("SPSA") entered into a Forbearance Agreement dated as of 805 May 15, 2009 (the "Forbearance Agreement"), and SPSA simultaneously issued to the City 806 SPSA's "Non -Transferable Junior Subordinated Revenue Note also dated as of May 15, 2009 807 (the "Note"), all to evidence the agreement by the City to defer its right to receive certain 808 amounts owing to the City under the terms of the Agreement for Disposal of Ash and Process 809 Residue dated as of August 8, 1984 (the "Ash Agreement") between the City and SPSA, and the 810 agreement of SPSA to repay certain amounts on terms set forth in the Forbearance Agreement 811 and the Note. 812 813 R-2. As of the date hereof, SPSA has paid the City all amounts owing under the 814 Forbearance Agreement and the Note and, in consideration of its receipt of such payment, the 815 City has agreed to release the Forbearance Agreement and to cancel and return the Note, as 816 provided herein. 817 818 Now, therefore, the City of Virginia Beach hereby (i) acknowledges the receipt of 819 $ in full satisfaction of all amounts owing by SPSA to the City under the Forbearance 820 Agreement, (ii) agrees that all of SPSA's obligations under the Forbearance Agreement and the 821 Note have been paid, satisfied and discharged, (iii) releases all of its rights under the Forbearance 822 Agreement, (iv) has canceled and returned to SPSA the Note, and (v) agrees that the Forbearance 823 Agreement is terminated as of the date of this Release. 824 825 CITY OF VIRGINIA BEACH 826 By: 827 James K. Spore 828 City Manager 829 830 SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA hereby 831 acknowledges receipt of this Release and the return of its Non -Transferable Junior Subordinated 832 Revenue Note, appropriately canceled and agrees to the termination of the Forbearance 833 Agreement. 834 By: 835 Authorized Representative 836 36 7228599 837 838 839 840 DRAFT DATED March 09, 2010 1:33 PM Schedule 1 SPSA Indebtedness as of [April 2], 2010 Outstanding Principal Prior to Defeasance 2011 6,050,000 4,485,000 4,080,000 2012 255,000 11,385,000 6,205,000 9,260,000 2013 270,000 5,895,000 6,455,000 13,680,000 2014 285,000 9,480,000 1,783,000 14,100,000 2015 15,935,000 - 2016 16,765,000 - 2017 2018 - 14,615,000 6.67% 27,105,000 12.38% 26,300,000 12.01% 25,648,000 11.71% 2,525,000 8,540,000 27,000,000 12.33% 8,210,000 9,785,000 34,760,000 15.87% 9,910,000 27,520,000 37,430,000 17.09% 26,140,000 26,140,000 11.94% Total 33,510,000 32,810,000 18,928,000 61,765,000 71,985,000 % of Total 15.30% 14.98% 8.64% 28.20% 32.87% Note: Assumes Wachovia loan due in FY2012 will be amortized in equal amounts Excludes certain maturities for which funds have already been deposited with the 218,998,000 100.00% 100.00% in FY2010 and FY2011. Trustee. 1 1998 SPSA bonds insured by Ambac Assurance Corporation. 22008 $12,100,000 SPSA bonds held by Wachovia and $20,700,000 SPSA variable rate bonds secured by a direct pay letter of credit from Wachovia. 3 Amounts payable to Virginia Beach in accordance with the Forbearance Agreement. 7228599 37 841 842 843 844 845 846 847 7228599 DRAFT DATED March 09, 2010 1:33 PM Schedule 2 Application of pro rata portions of Cash Consideration to SPSA Indebtedness Application of Pro Rata Portions of Cash Consideration to SPSA Indebtedness AMBAC Wachovia VA Beach VRA Subordinate VRA Guaranteed Total 24,282,650 13,860,000 18,928,000 43,839,768 51,286,104 152,196,522 Note: Total includes proceeds released from Series 1998 Debt Service Reserve Fund. 38 16% 9% 12% 29% 34% 100% 848 849 850 851 DRAFT DATED March 09, 2010 1:33 PM SPSA's Remaining Indebtedness to VRA (Guaranteed Bonds) 852 [Is shown below in the highlighted columns headed 853 VRA Subordinate and VRA Guaranteed] 854 [Estimate as of mid-February 2010] 855 856 Schedule 34 Outstanding Principal After Pro -rata Scenario with VA Beach Takeout wR.v VRzv „Subordinate Guaranteed 2011 - 4,080,000 - 4,080,000 5.27% 2012 90,000 5,230,000 - 3,250,000 - 8,570,000 11.07% 2013 95,000 5,260,000 - 4,805,000 - 10,160,000 13.13% 2014 100,000 8,460,000 2,045,000 - 10,605,000 13.70% 2015 5,590,000 - - 885,000 3,000,000 9,475,000 12.24% 2,880,000 3,435,000 12,200,000 15.76% 2017 3,480,000 9,650,000 13,130,000 16.97% 2018 - 9,170,000 9,170,000 11.85% 11,760,000 18,950,000 - 21,425,000 25,255,000 77,390,000 100.00% 2016 5,885,000 Total % of Total 15.20% 24.49% 0.00% 27.68% 32.63% 100.00% Note: Excludes certain maturities for which funds have already been deposited with the Trustee. 4 This Schedule 3 will be amended to show only SPSA's Remaining Indebtedness to VRA (Guaranteed Bonds). In this draft, SPSA's remaining AMBAC insured and Wachovia owned or enhanced bonds are also shown. 7228599 39 857 858 859 860 861 862 863 864 865 866 867 868 7228599 DRAFT DATED March 09, 2010 1:33 PM SPSA Post -Purchase Remaining Indebtedness to VRA 40 Schedule 4 DRAFT DATED February 25, 2010 3:44 PM 1 REIMBURSEMENT AGREEMENT BETWEEN 2 THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA 3 AND ITS MEMBERS WITH RESPECT TO A GUARANTY AGREEMENT 4 5 6 THIS REIMBURSEMENT AGREEMENT, made this day of 7 2010, between the SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA 8 ("SPSA"), on the one hand, and its eight members, the CITY OF CHESAPEAKE, , the CITY 9 OF FRANKLIN, the CITY OF NORFOLK, the CITY OF PORTSMOUTH, the CITY OF 10 SUFFOLK, the CITY OF VIRGINIA BEACH, the COUNTY OF ISLE OF WIGHT and the 11 COUNTY OF SOUTHAMPTON, on the other hand, in their capacity of several guarantors 12 ("Guarantors") under the Guaranty Agreement of even date herewith ("Guaranty Agreement"), 13 among the Guarantors, SPSA and U.S. Bank National Association (the "Trustee"), for the benefit 14 of the Virginia Resources Authority ("VRA"): 15 Recitals 16 R-1. Under the Guaranty Agreement, the Guarantors have severally agreed to 17 make payments ("Guaranty Payments") if and to the extent that SPSA shall not make the same in 18 respect of its (i) Senior Subordinated Revenue Bonds and/or (ii) its Guaranteed Subordinated 19 Revenue Bonds, in each case, held by or for the account of VRA and described in Schedule 3 or 20 Schedule 4 to the Guaranty Agreement. 21 R-2. If and to the extent that the Guarantors shall have made Guaranty Payments 22 under the Guaranty Agreement, the Guarantors shall to such extent be subrogated to VRA in respect 23 of the amount of such Guaranty Payments, and the Guarantors and SPSA have determined to enter 24 into this Reimbursement Agreement to provide for the repayment to the Guarantors of the amounts 1-889899.4 1 1/03/2009 7234810 02/25/2010 DRAFT DATED February 25, 2010 3:44 PM 25 of their several Guaranty Payments to VRA for the account of SPSA. 26 NOW THEREFORE, in consideration of the Guarantors' several commitments 27 set forth in the Guaranty Agreement, SPSA and the Guarantors agree as follows: 28 Section 1. REPAYMENT. 29 (a) SPSA shall repay the Guarantors any and all amounts of Guaranty 30 Payments paid by the Guarantors pursuant to their respective obligations under the Guaranty 31 Agreement, including any and all related costs reasonably incurred by the Guarantors in 32 fulfillment of said obligations. To the extent more than one Guaranty Payment is made by the 33 Guarantors, or any of them, each individual Guaranty Payment shall be treated as a separate 34 repayment obligation governed by the terms of this Reimbursement Agreement. 35 (b) The entire amount of any Guaranty Payment made by a Guarantor shall be 36 repaid by SPSA to each Guarantor making such payment in monthly installments with each 37 installment being equal to the Guaranty Payment divided by the number of months in the 38 "Repayment Term," defined below. 39 (c) In addition to the repayment obligation recited at subsection (b) above, 4 0 SPSA shall pay to each Guarantor interest on the unreimbursed portion of its Guaranty Payment at 41 an annual rate equal to the "Repayment Interest Rate," defined below, as well as any and all costs 42 reasonably incurred by the City as a consequence of its compliance with the Guaranty Agreement. 43 (d) Repayment under subsections (b) and (c) above shall be due on the first, or 4 4 if the first is not a business day then the next business day after the first, of each month during the 4 5 Repayment Term, defined below. 46 I-889899.4 11/03/2009 2 DRAFT DATED February 25, 2010 3:44 PM 4 7 Section 2. REPAYMENT TERM AND RATE. 4 8 (a) The "Repayment Term" shall be the lesser of thirty-six (36) months or the 49 number of months remaining to and including December 31, 2017, or as otherwise agreed by the 50 parties by written addendum hereto. Repayment shall be made by SPSA on a monthly basis in an 51 amount calculated in accordance with Section 1 above, to include reasonable costs and interest, and 52 the first month of the Repayment Term shall be the second month following a Guarantor's 53 payment of any Guaranty Payment. Failure of SPSA to make any repayment in full in a timely 54 manner shall constitute default. 55 (b) The Repayment Interest Rate shall be a fluctuating rate of interest equal to 56 the LIBOR ("London interbank offered rate") Market Index Rate, plus two percent (2.00%), as 57 that rate may change from day to day in accordance with changes in the "LIBOR Market Index 58 Rate". The "LIBOR Market Index Rate" for any day is the rate for 1 -month U.S. dollar deposits 59 as reported on Telerate page 3750 as of 11:00 a.m., London time for such day, provided that if 60 such day is not a London business day, the rate is set by the immediately preceding London 61 business day (or, if not so reported, then as determined by the City from another recognized 62 source or inter -bank quotation). Interest will accrue on any non -business day at the rate in effect 63 on the immediately preceding business day. 6 4 Section 3. PRIORITY OF OBLIGATIONS. The obligations imposed upon 65 SPSA by this Reimbursement Agreement shall be junior and subordinate to the lien of "4th Tier 66 Subordinated Debt" and on a parity with the lien or liens of "5th Tier Subordinated Debt" as 67 each of those two terms are defined in the Guaranteed Subordinated Bond Resolution adopted by 68 SPSA on May 14, 2009. 1-889899.4 11/03/2009 3 DRAFT DATED February 25, 2010 3:44 PM 69 Section 4. COVENANTS. 70 (a) Rate Covenant. SPSA shall, from time to time, fix and revise rates and charges 71 for the services and facilities of the Disposal System that in the aggregate, together with its 72 reserves, will be sufficient to meet all of its obligations allocable to the Disposal System, 73 including its obligations under this Reimbursement Agreement. 74 (b) Enforcement of Use and Support Agreements. SPSA covenants, for the 75 benefit of the Guarantors, that the Authority will defend and enforce the provisions of the Use 76 and Support Agreements with each of its members in accordance with its terms. 77 (c) Compliance with and Enforcement of the Service Agreement. SPSA 78 covenants, for the benefit of the Guarantors, that SPSA will comply with, and defend and 79 enforce, the provisions of the Service Agreement dated as of September 9, 2009, as amended, 80 with Wheelabrator Technologies, Inc. 81 (d) Additional Indebtedness. SPSA covenants, for the benefit of the 82 Guarantors, that SPSA will borrow no money and in evidence thereof issue any bonds, notes or 83 other evidences of indebtedness, enter into any installment purchase, lease purchase, sale or 84 lease -leaseback transactions or incur any additional certificated indebtedness (collectively, 85 "Additional Indebtedness") without the prior consent of each Guarantor; provided, however, that 86 SPSA may, without such prior consent, issue any Additional Indebtedness in the following 87 circumstances: (i) for any lawful purpose of the Authority, not to exceed $10,000,000 in 88 aggregate principal amount outstanding at any one time, and, (ii) direct and indirect obligations 89 incurred, as required by the Virginia Department of Environmental Quality, for financial 90 assurance relating to the capital costs associated with the closure of the Authority's landfill and I-889899.4 11/03/2009 4 DRAFT DATED February 25, 2010 3:44 PM 91 other facilities. 92 Section 5. TERMINATION. This Reimbursement Agreement shall remain in 93 effect at all times during which the Guaranty Agreement remains in effect and during which any 94 repayments remain due hereunder. 95 Section 6. AMENDMENTS. This Reimbursement Agreement may not be 96 amended or supplemented except by written agreement of both parties. 97 Section 7. SEVERABILITY. If any clause, provision, or section of this 98 Reimbursement Agreement shall be held illegal or invalid by any court, the illegality or 99 invalidity of such clause, provision, or section shall not affect any of the remaining clauses, 100 provisions, or section hereof, and this Reimbursement Agreement shall be construed and 101 enforced as if such illegal or invalid clause, provision, or section had not been contained herein. 102 In case any question should arise as to whether any provision contained herein shall be in 103 violation of law, then such provision shall be construed to be the agreement of the parties hereto 104 to the full extent permitted by law. 105 Section 8. GOVERNING LAW. This Reimbursement Agreement shall be 106 governed by and construed in accordance with the laws of the Commonwealth of Virginia. 107 Section 9. COUNTERPARTS. This Reimbursement Agreement may be 108 executed in several counterparts, each of which shall be deemed an original copy and all of 109 which together shall constitute one agreement binding on the parties hereto. 110 Section 10. NO THIRD PARTY BENEFICIARIES. This Reimbursement 111 Agreement is solely for the benefit of the parties hereto, and no other person shall have any 112 rights or benefit of the terms and provisions hereof. 1-889899.4 11/03/2009 5 DRAFT DATED February 25, 2010 3:44 PM 113 Section 11. NOTICES. Any notice given under this Reimbursement Agreement 114 shall be given in the same manner and to the same addresses as provided in the Guaranty 115 Agreement. 116 117 1-889899.4 11/03/2009 6 118 119 120 121 122 123 124 125 126 127 (Corporate seal) 128 129 130 ATTEST: 131 132 DRAFT DATED February 25, 2010 3:44 PM SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA By: Executive Director 133 [Assistant]Secretary 134 135 136 1-889899.4 11/03/2009 7 DRAFT DATED February 25, 2010 3:44 PM 137 CITY OF CHESAPEAKE, VIRGINIA 138 139 140 By: 141 142 143 Title: 144 145 146 ATTEST: 147 148 149 150 City Clerk 151 152 153 APPROVED AS TO FORM: 154 155 156 157 Deputy City Attorney 158 159 160 1-889899.4 11/03/2009 8 DRAFT DATED February 25, 2010 3:44 PM 161 CITY OF FRANKLIN, VIRGINIA 162 By: 163 164 (Corporate seal) 165 ATTEST: 166 167 Clerk 168 Approved as to form: 169 170 City Attorney 171 1-889899.4 11/03/2009 9 DRAFT DATED February 25, 2010 3:44 PM 172 173 CITY OF NORFOLK, VIRGINIA 174 By: 175 176 (Corporate seal) 177 ATTEST: 178 179 Clerk 18 0 Approved as to form: 181 182 City Attorney 183 1-889899.4 11/03/2009 10 DRAFT DATED February 25, 2010 3:44 PM 184 CITY OF PORTSMOUTH, VIRGINIA 185 By: 186 187 (Corporate seal) 188 ATTEST: 189 190 Clerk 191 Approved as to form: 192 193 City Attorney 194 1-889899.4 11/03/2009 11 195 196 197 198 DRAFT DATED February 25, 2010 3:44 PM CITY OF SUFFOLK, VIRGINIA By: 199 (Corporate seal) 200 201 202 ATTEST: 203 204 205 Clerk 206 207 208 Approved as to form: 209 210 211 City Attorney 212 1-889899.4 11/03/2009 12 213 214 215 216 217 DRAFT DATED February 25, 2010 3:44 PM CITY OF VIRGINIA BEACH, VIRGINIA By: 218 (Corporate seal) 219 220 221 ATTEST: 222 223 224 Clerk 225 226 227 Approved as to form: 228 229 230 City Attorney 231 232 1-889899.4 11/03/2009 13 DRAFT DATED February 25, 2010 3:44 PM 233 COUNTY OF ISLE OF WIGHT, VIRGINIA 234 By: 235 236 (Corporate seal) 237 ATTEST: 238 239 Clerk 240 Approved as to form: 241 242 County Attorney 243 I-889899.4 11/03/2009 14 DRAFT DATED February 25, 2010 3:44 PM 244 COUNTY OF SOUTHAMPTON, VIRGINIA 245 By: 246 247 (Corporate seal) 248 ATTEST: 249 250 Clerk 251 Approved as to form: 252 253 County Attorney 1-889899.4 11/03/2009 15 - 50 - Item J.3. ORDINANCES/RESOLUTIONS ITEM # 59771 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Resolution recognizing Captain William "Bill" Crow for his "Joint Basing" of the Naval Amphibious Base Little Creek and Fort Story now known as the "Joint Expeditionary Base Little Creek -Fort Story" Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 Rrnntutitrn WHEREAS: On October 1, 2009, Captain William W. "Bill" Crow, after much forward thinking, successful execution and a winning combination of defense dollars, hosted the long awaited "Joint Basing" of the Naval Amphibious Base Little Creek and Fort Story, now known as the "Joint Expeditionary Base Little Creek -Fort Story" in the City of Virginia Beach; WHEREAS: Captain Crow was born and raised in Morganfleld, Kentucky, graduated and earned his Bachelor of Science degree from the United States Naval Academy in 1980, he attended the National Defense University Industrial College of the Armed Forces and was awarded a Master of Science degree in 1997; WHEREAS: His at -sea assignments include Division Officer billets, Chief Engineer In USS PHARRIS; Assistant Operations Commander Destroyer Squadron Twenty -Six; extended Department Head tour as Chief Engineer in USS BRISCOE; Material Officer for Commander Destroyer Squadrons Ten and Two; Executive Officer of USS PETERSON; Commanding Officer of USS AUSTIN; and, Training and Readiness Assistant Chief of Staff for Commander Amphibious Group Two. Ashore, he served as Instructor at SWOSCLCOM for Steam Engineering; SWO Programs Officer for COMNAVSURFLANT; Chief Staff Officer to the Commandant Naval District Washington; COMOPTEVOR Surface Warfare Director; and, as Executive Officer Naval Station Norfolk. He assumed duty as Commanding Offker, Naval Amphibious Base Uttie Creek in December 2006 and became the Commanding Officer, Joint Expeditionary Base Little Creek -Fort Story, with Its official opening October First, Two Thousand Nine; WHEREAS: Captain Crow's personal awards include five Meritorious Service Medals; five Navy and Marine Corps Commendation Medals; and, two Navy and Marine Corps Achievement Medals; WHEREAS: Captain Crow is married to the former Jeanne Boucher of Chesapeake and they have two aduk children: a son, John, and a daughter, Karen, as well as two college student children, a daughter, Sara, and a son, Kevin; and, WHEREAS: Captain Crow was very instrumental in consolidating the delivery of Installation Support functions, significant financial savings and more flexibility for best business practices to ensure war fighting capabilities are preserved in this historic military City of Virginia Beach. Since 2007, 8111 worked diligently, first to ensure the defense, second the safety and third the least impact on personnel of Little Creek and Fort Story to bring this Joint Base to fruition. NOW, THEREFORE, BF IT RESOLVED: That the Virginia Beach City Council recognize Captain Bill Crow as the LEADER OF THE DAY" and express sincere gratitude to him for his foresight, his tenadty to manage every minute detail of this Joint Basing and ensuring this military installation is at its rightful location, Virginia Beach. BE IT FURTHER RESOLVED: That the City Council express sincere congratulations to our Friend, Bill Crow, on the occasion of his retirement with an exemplary career in the United States Navy. Ita457 efiritto La o• rt M. eph -At La ge er - Centerville District 1 Loud Ate_ R. Jones - • yslde r istrict 4 - Vice Mayor Rosemary Wilson Large G R. Davis e Hall District 3 ,, D( .- — :rig; Princess Anne yeach District 6 . r/ Jamesvir j', ice 2 William D. 'Will" Sessoms - Mayor istrict 7 Wood -Lynnhaven District 5 - 51 - Item J.4. ORDINANCES/RESOLUTIONS ITEM # 59772 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Resolution to RE-ESTABLISH the Clean Community Commission as an advisory Commission to City Council Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 REQUESTED BY COUNCILMEMBER DYER 1 A RESOLUTION TO ESTABLISH THE CLEAN 2 COMMUNITY COMMISSION AS AN ADVISORY 3 COMMISSION TO CITY COUNCIL 4 5 6 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 7 VIRGINIA: 8 9 That City Council hereby establishes the Clean Community Commission as an 10 advisory commission to City Council. The commission shall consist of up to eleven 11 members, all of whom shall be appointed by City Council. Of those first appointed, 12 three members shall be appointed for a term of one year; four for a term of two years; 13 and four for a term of three years. Thereafter, all appointments shall be made for three 14 years. City Council shall appoint one of the eleven members to serve as the first 15 chairperson. The Council -appointed chairperson shall serve in that capacity until June 16 30, 2011. Thereafter, the commission shall elect one of its members to serve as 17 chairperson. The commission also may elect a vice -chairperson and such other officers 18 as the commission may deem appropriate. Adopted by the Council of the City of Virginia Beach, Virginia on the day of March , 2010. APPROVED AS TO LEGAL SUFFICIENCY: ---"E-- City Attorney's Offic CA11475 R-1 March 17, 2010 23rd - 52 - Item J.S. ORDINANCES/RESOLUTIONS ITEM # 59773 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Resolution to RENAME the Animal Control Building to the "Virginia Beach Animal Care and Adoption Center" (presented at City Council's Workshop March 16, 2010) Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 1 A RESOLUTION TO CHANGE THE NAME OF THE 2 ANIMAL CONTROL BUILDING TO THE "VIRGINIA 3 BEACH ANIMAL CARE AND ADOPTION CENTER" 4 5 6 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 7 VIRGINIA: 8 9 That the name of the Animal Control Building is changed to the "Virginia Beach 10 Animal Care and Adoption Center." 11 12 Adopted by the City Council of the City of Virginia Beach, Virginia, this 237-c1 13 day of March , 2010. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Service City Attorney's Office CA11437 R-1 March 11, 2010 I I 1 - 53 - Item J.6. ORDINANCES/RESOLUTIONS ITEM # 59774 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to AUTHORIZE the City Manager to EXECUTE the Virginia Beach Field House Emergency Shelter Agreement re an emergency shelter in the event of a natural disaster Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE THE VIRGINIA BEACH 3 FIELD HOUSE EMERGENCY SHELTER 4 AGREEMENT WITH VIRGINIA BEACH FIELD 5 HOUSE, L.L.C. 6 7 WHEREAS, the City of Virginia Beach (the "City") has leased approximately 12.7 8 acres of property adjacent to the Sportsplex to Virginia Beach Field House, L.L.C. ("VBFH") 9 for the purpose of the construction and operation of an indoor field house (the "Field 10 House"); and 11 12 WHEREAS, the City and VBFH have negotiated for certain design changes and 13 improvements to the Field House for the purpose of making the Field House appropriate 14 for use by the City as an emergency shelter (the "Shelter Improvements"); and 15 16 WHEREAS, in Ordinance ORD -3102P, the City Council approved the creation of 17 CIP3-150, Virginia Beach Field House Emergency Shelter, to fund the Shelter 18 Improvements; and 19 20 WHEREAS, the City and VBFH have agreed to certain terms and conditions 21 governing the City's use the Field House as an emergency shelter as set forth in the 22 Virginia Beach Field House Emergency Shelter Agreement, as summarized, along with a 23 summary of the Shelter Improvements, on the Summary of Terms attached hereto as 24 Exhibit A; and 25 26 WHEREAS, the use of the Field House as an emergency shelter will allow the City 27 to better provide for the general health, safety and welfare of the residents of the City. 28 29 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 30 VIRGINIA BEACH, VIRGINIA: 31 32 That the City Manager, or his designee, is hereby authorized to execute an 33 agreement with Virginia Beach Field House, L.L.C. for the construction of additional 34 improvements to the field house adjacent to the Sportsplex (the "Field House"), and for the 35 use by the City of the Field House as an emergency shelter, in accordance with the 36 Summary of Terms, attached hereto as Exhibit A and made a part hereof, and such other 37 terms, conditions or modifications as may be acceptable to the City Manager and in a form 38 deemed satisfactory by the City Attorney. 39 40 41 Adopted by the Council of the City of Virginia Beach, Virginia, on the 23rd day of March , 2010. APPROVED AS TO CONTENT: APPROVED ASTI, LGAL T SUFFICIENC, City Man ger's Office City Attorney's Office CA -11395 V:\applications\citylawprod\cycom32\W pdocs\D012\P003\00059809.DOC R-1 3/17/10 DEVELOPER/ OPERATOR: SCOPE OF CITY -FUNDED IMPROVEMENTS TO FIELD HOUSE: CITY -FUNDED COSTS: CHANGE ORDERS: EXHIBIT A SUMMARY OF TERMS Virginia Beach Field House, L.L.C. ("VBFH") (1) Exterior Improvements to windows and doors to allow Field House to withstand sustained winds up to 110 m.p.h., and three second wind gusts of up to 130 m.p.h, and impact of flying debris of up to 9 pounds at 44 m.p.h. (2) Enhanced electrical components to allow City to power entire Field House with an appropriately sized mobile external generator (to be provided by City as needed) and allow City use as emergency shelter. Electrical system to be tested for City's needs prior to final payment to VBFH. Costs of upgrades to the Field House, to make it suitable for use as an Emergency Shelter, not to exceed $410,000. Costs to be verified by City prior to payment. Costs associated with any Change Order will be negotiated at the time of the discovery of an unforeseen condition or at the time of any City -initiated request for a change. Change Orders must be in writing and be mutually agreed on. Change Orders may not exceed the total amount to be paid by the City by more than $50,000 or twenty-five percent (25%) of the original amount of the construction contract, whichever is greater, without the advance written approval of City Council. TERMS AND CONDITIONS OF CITY'S USE OF FIELD HOUSE AS SHELTER: City has right to use Field House after declaration of State of Emergency by City Manager. VBFH to provide facility manager, maintenance supervisor and kitchen staff to assist City staff. Page 1 of 2 City to pay VBFH $10,000 per day for use of Field House as a Shelter. This amount shall compensate VBFH for all labor and utility costs incurred. City shall pay for all material (food, paper products, etc.) consumed. City to restore Field House to substantially same condition after use as a shelter. Page 2 of 2 - 54 - Item J.7. ORDINANCES/RESOLUTIONS ITEM # 59775 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED, BY CONSENT, until the City Council Session of April 13, 2010: Ordinance to AUTHORIZE existing temporary encroachments into a portion of City -owned right-of-way for JANE W. STEINHILBER to maintain a serpentine brick wall, brick columns and landscape boulders at 4821 Lauderdale Avenue. DISTRICT 4 - BAYSIDE Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 55 - Item J.8. ORDINANCES/RESOLUTIONS ITEM # 59776 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinances to ACCEPT and APPROPRIATE: a. $240, 000 reimbursement from the State Compensation Board to the Clerk of the Circuit Court's FY 2009-10 Technology Trust Fund b. $24,450 Grant Funds from Smart Beginnings South Hampton Roads to the Library Department's FY 2009- 10 Operating Budget Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE 2 STATE REIMBURSEMENTS TO THE CLERK OF 3 THE CIRCUIT COURT'S FY 2009-10 TECHNOLOGY 4 TRUST FUND 5 6 WHEREAS, the Clerk of the Circuit Court has received $240,000 of 7 reimbursements from the Virginia Compensation Board for technology purposes. 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 10 VIRGINIA BEACH, VIRGINIA: 11 12 That state reimbursements in the amount of $240,000 are accepted and 13 appropriated, with a corresponding increase in state revenues, to the Clerk of the Circuit 14 Court's FY 2009-10 Technology Trust Fund. Adopted by the Council of the City of Virginia Beach, Virginia on the 2lyd of March , 2010. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: Management Services CA11469 R-2 March 2, 2010 APPROVED AS TO LEGAL SUFFICIENCY: day 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE GRANT 2 FUNDS FROM SMART BEGINNINGS SOUTH HAMPTON 3 ROADS TO THE FY 2009-10 OPERATING BUDGET OF 4 THE LIBRARY DEPARTMENT 5 6 WHEREAS, Smart Beginnings South Hampton Roads has awarded the City an 7 additional $24,450, bringing the total grant award for FY 2009-10 to $147,150; and 8 9 WHEREAS, the remaining matching funds for FY 2009-10 are available in the 10 amounts of $2,000 from the Virginia Beach City Public Schools and $13,000 in the form 11 of in-kind contributions from the City's GrowSmart program. 12 13 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 14 VIRGINIA BEACH, VIRGINIA: 15 16 That $24,450 is hereby accepted from Smart Beginnings South Hampton Roads 17 and appropriated, with estimated revenues increased accordingly, to the FY 2009-10 18 Operating Budget of the Library Department. Adopted by the Council of the City of Virginia Beach, Virginia, on this 23rd day of March , 2010. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: ,)() Management Services CA11473 R-2 March 11, 2010 APPROVED AS TO LEGAL SUFFICIENCY: - 56 - ITEM # 59777 K. PLANNING 1. TAMI WALKER MOOK CONDITIONAL USE PERMIT 2. ROBERT RAMSAY CONDITIONAL USE PERMIT 3. CITY OF VIRGINL4 BEACH CITY ZONING ORDINANCE (CZO) a. AMEND §111 and ADD §217 re requirements for monument and electronic display signs (LED) March 23, 2010 - 57 - Item K PLANNING ITEM # 59778 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFFERED in ONE MOTION Items 1, 2 and 3 of the PLANNING BY CONSENT AGENDA: Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 58 - Item K.1. PLANNING ITEM # 59779 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, DEFERRED, BY CONSENT, until the City Council Session of April 13, 2010, an Ordinance upon application of TAMI WALKER MOOK for a Conditional Use Permit re small engine repair at 501 Virginia Beach Boulevard DISTRICT 6 - BEACH Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 59 - Item K.2. PLANNING ITEM # 59780 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, DEFERRED, BY CONSENT, until the City Council Session of April 13, 2010, an Ordinance upon application of ROBERT RAMSAY for a Conditional Use Permit re a firewood preparation at 3025 New Bridge Road. DISTRICT 7 — PRINCES ANNE Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, 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, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None March 23, 2010 - 60 - Item K.3. PLANNING ITEM # 59781 Upon motion by Councilman Wood, seconded by Council Lady Wilson, DEFERRED, BY CONSENT, until the City Council Session of March 30, 2010: Ordinance to AMEND §111 and ADD §217 of the City Zoning Ordinance (CZO) re requirements for monument and electronic display signs (LED) (deferred February 9 and March 9, 2010). Voting: 10-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Harry E. Diezel March 23, 2010 -61 - Item L. APPOINTMENTS ITEM # 59782 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENT: SOCIAL SERVICES BOARD March 23, 2010 - 62 - Items M -O. ADJOURNMENT ITEM # 59783 Mayor William D. Sessoms DECLARED the City Council Meeting ADJOURNED at 6:58 P.M. Beverly O. Hooks, CMC Chief Deputy City Clerk uth Hodges Fraser, MMC City Clerk City of Virginia Beach Virginia William D. Sessoms, Jr. Mayor March 23, 2010