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HomeMy WebLinkAboutSEPTEMBER 7, 2010 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL ,'v1AYO12 W/I,LIAM D. SL'SSOMS, ./12., AI-Large 1'lC~ MAI'OR lOUIS R. JONBS, Bay.+ide - Di.rtricl a KI'/'A SWEI'f BELI,l770, At-Large G/_ENN R. DAVIS, Rose Hal! - Dx.rlric~ 3 Wll,l,/AM R. DcS'l'GPH, At-Gar~;c HA2RY B. DIEZF7., Kemp.eville - Di.rlricl 2 XOBl:R7'M. DYF.2„ Cen(vrville - Di.rlrict / BARBARA M. HGNLEY, Prlnce.cs Annc - Di.c~rtct 7 JOHN G. UNk/N, Beach ~ Oz.rtric[ 6 RO tiGMA2Y WILS~)N, At-/,arge JAMI; ti L. WOOD, l.ynnhare~a -Df.ctric[ 5 CITY COUNCIL'APPOINTEES C/'J'YMANAGGR - JAAIF.S K. tiPORE ('l'fYAlTOILVEY- MARKD. STIL,E;ti CI'I'YAStiF.SSOR ~~ JERAI,D BANAGAN CITY AiID!'I'OR - /.,YN~ON S. RF.MIAS CI7T CLERK - R(!7'H HODGL•S FRASF,R, MMC CITY COUNCIL WORKSHOP AGENDA 7 September 2010 ~~ : .-c~'~ •:.., ~~~ , ~~~~^-'~' °'t. o~a ~~°"~ C/TY HAGL BU/LD/NG 240! COURTHOUSE DR/V6 VIRGlNIA BEACH. VIRG/N!A 23456-8005 PHONE: (757) 385-430= FAX (757) 385-5669 E-MAlL: crycnd@vbgov.com I. CITY COUNCIL'S BRIEFINGS - Conference Room - A. VIRGINIA BEACH ROUNDTABLE 2010 BUSINESS PRIORITIES John Wilson, Chair B. HEALTH CARE AUDIT RESULTS Lyndon Remias, City Auditor John M. Graham, President - Healthcare Horizons II. CITY MANAGER'S BRIEFINGS 4:00 PM A. ALTERNATIVE ENERGY TASK FORCE Clay Bernick, Environment and Sustainability Office Manager - Planning Department B. NORFOLK SOUTHERN RAILROAD RIGHT-OF-WAY ACQUISITION Becky Kubin, Deputy City Attorney C. 2011 COMMUNITY LEGISLATIVE AGENDA Robert Matthias, Assistant to the City Manager -1- ~ ~.--_- , .---7 . i = ° % a? S yp `_i% ~G Mf S 0 OF OVR NPT~~N MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia September 7, 2010 Mayor William D. Sessoms, Jr., called to order the CITY COIINCIL WORKSHOP for the CITY COUNCIL'S Briefing re VIRGINIA BEACH ROUNDTABLE 2010 BUSINESS PRIORITIES in the City Council Conference Room, Tuesday, September 7, 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 September 7, 2010 -2- MAYOR'S REMARKS OFAPPRECIATIONRE HURRICANE EARL 4: 00 P.M. Relative Hurricane Earl, Mayor Sessoms complimented the City employees on their unselfish and dedicated hard work to protect Virginia Beach. Every challenge we encounter is an opportunity to put our planning and execution skills to the test. The Mayor is truly appreciative of all the efforts thczt have taken place over the last seventy-two (72) hours. Although the City was blessed by nature with a milder storm than expected, our citizens can rest assured knowing all possible measures were in place for their protection. Muyor Sessoms expressed appreciation to the top-notch Ciry Employees, who spent several days preparing for the storm. These men and women literally worked in the "trenches " to make sure our water supply, sewer system, roads and Oceanfront were ready for the hurricane. Our Police O~cers, Firefighters and Emergency Medical Staff stood ready to respond to any contingency. Many men and women worked through the night at the City's 911 and 311 centers to field citizen calls. Constant updates to citizens through the website and VBTV were provided. The City truly appreciates the Media that helped us get important information to those who needed it most. Thanks to the dedication of the city's workforce, the safery of Virginia Beach, it's beaut~l assets and the preservation of its critical economic driver were ensured. Mayor Sessoms also thanked the City's partners in the Schools and Department of Public Health as well as the state and federal governments. Many State Troopers and National Guard were on standby to assist Virginia Beach. Virginia Department of Transportation (VDOT) workers ensured that evacuation routes were ready, should the storm turn westward. Terri Suit, Assistant to the Governor for Commonwealth Preparedness, personally helped coordinate the response. These preventive actions ensured that Virginia Beach will continue to be the beautiful city where we choose to live, work and play -"a Community for a Lifetime ". The City could not have undertaken this task alone. Finally, Mayor Sessoms wished to thank our private partners at Dominion Virginia Power for keeping the lights on. Hundreds of workers were on hand, waiting to restore electricity to our homes and businesses, should the worst occur. "Our hard-working public servants always shine brightest when there is an emergency. But they are also there every day, routinely doing their jobs in good and bad conditions, making sure we are safe and comfortable. They do not get nearly as much recognition as they deserve. " September 7, 2010 -3- CITY COUNCIL `S BRIEFING VIRGINIA BEACHROUNDTABLE Z010 BIISINESS PRIORITIES 4: 00 P.M. John Wilson, Chair - Virginia Beach Roundtable, presented their 2010 Business Priorities. Historv ~ The Virginia Beach Roundtable is an informal affiliation of business and leadership groups that held its first meeting in 1999 ~ The group's first initiative was the development of a campaign that stressed the importance of economic development and the visitor attraction in the Fall of 1999 ~ Key Virginia Beach Roundtable initiatives have included ; City Council candidate interviews, Get-Out-To-Vote campaigns, voter attitude research, support for Oceana Naval Air Station during the BRAC process and the development of consensus business priorities for the consideration of City Council Organizations Participating in the Virginia Beach Roundtable ~ Central Business District Association ~ HRACRE (Hampton Roads Architects and Engineers) 0 Hampton Roads Chamber of Commerce O Hampton Roads Realtors Association ~ Virginia Beach Hotel/Motel Association ~ Retail Alliance ~ Tidewater Builders Association ~ Virginia Beach Vision The 2010 Virginia Beach Roundtable Process January - March Meetings with Elected Officials May 26`" First 2010 Virginia Beach Roundtable meeting to discuss business priorities "Green light" session creates a list. June 11`h and June 25`h Follow-on meeting to develop priorities and build consensus August 20`h Participating Organizations Approve 2010 Draft Priorities September 7`h Presentation to Virginia Beach City Council September 7, 2010 -4- CITY COUNCIL `S BRIEFING VIRGINIA BEACHROUNDTABLE 2010 BUSINESS PRIORITIES TRANSPORTATION ~ Continue to work with the (HRTPO) Hampton Roads Transportation Planning Organization in prioritizing both road projects and alternative modes of transportation 0 Encourage (HRTPO) Hampton Roads Transportation Planning Organization to engage elected, business and community leaders to determine a revenue source to support regional transportation priorities inclusive of dedicated revenue source for roads and passenger rail ~ Integrate light rail into the transportation network with connects to multi-model links to North and South and link to the Southeast High Speed Rail Corridor ~ Pursue federal funding for both light rail and the high speed rail connection through our Congressional Delegation INTER-GOVERNMENTAL RELATIONS ~ Work with area localities, Virginia Municipal League/ Virginia Association of Counties (i~ML/VACD), the General Assembly Legislators and the business community to seek legislation to provide local governments the option to 1) provide Defined Contribution Plans in lieu of Defined Benefit Retirement Plans; 2) give flexibility to mod~ retirement service and aged qualifications; 3) require employee participation in benefrt packages ~ Create a City Commission to address the strategic realignment of state and local government obligations and responsibilities; and, ident~ legislative, frscal and governmental actions necessary to address change MILITARY RELATIONS ~ Offer aggressive and creative leadership to negotiate issues impacting the Military and Homeland Security to ensure retention of military commands in Hampton Roads and the economic growth and vitaliry of the Ciry INVESTMENT AND ECONOMIC DEVELOPMENT ~ Continue to invest in infrastructure 0 Adopt measures to decrease regulatory burden ~ Explore partnership with universities and the private sector to create jobs and provide a quality of life that will attract new business and retain existing business ~ Promote and pursue public private ventures when studies show they will enhance economic prosperity for the City, broaden its tax base and serve the interests of the citizens at large. ~ Establish, in cooperation with the Virginia Beach Development Authority, an Economic Development Task Force to develop a Strategic Planning document in response to evolving economic and political changes September 7, 2010 -5- CITY COUNCIL `S BRIEFING VIRGINIA BEACH ROUNDTABLE 2010 BUSINESS PRIORITIES ENERGYAND ENVIRONMENT ~ Implement the recommendations of the Mayor's Alternative Energy Task Force including : 1) conducting a(SWOT) Strengths, Weaknesses, Opportunities and Threats analysis of the City's energy use; 2) establishing a baseline and ident~ing ways to reduce consumption by 2025; 3) reduce greenhouse gas emissions; and 4) seek offshore energy development opportunities and related industries ~ Seek regional partners to educate consumers about energy e~ciency programs 0 Leverage federal grant funding to improve e~ciency of the City's energy use Concern was expressed relative the need to tie light rail with high speed rail. It is important to talk about the full vision and not just one segment at a time. Mr. Wilson requested City Council consider appointing a Liaison to the Roundtable. Mayor Sessoms requested the selection of a Liaison to the Roundtable be scheduled for Ciry Council 's nex~t Agenda. September 7, 2010 -6- CITY COUNCIL `S BRIEFING HEALTH CARE AUDIT RESULTS 4:27 P.M. Lyndon Remias, City Auditor, referenced the results of the Health Care Audit by an independent outside firm. The Auditor had contracted with Healthcare Horizons, a national frrm. Mr. Remias expressed appreciation to Susan D. Walston, Deputy City Manager, and Linda Matkins, Director of Benefits, for their assistance in providing data.. Mr. Remias introduced Stacy Fuqua, Senior Client Executive - Optima Health and Tamara Turner, Director of Operation Support, Optima Health, and John Graham - President of Healthcare Horizons. John Graham, Healthcare Horizons, Consulting Group, Inc. advised the purpose and scope of the Audit Overview: • Purpose: Ident~ claim errors resulting in incorrect payments and to assess underlying conditions contributing to any errors identified Scope: Review 100% Review 100% of claims processed by Optima with paid dates March 2009 through December 2009 totaling $61-Million ($36-Million for Schools and $25-Million for City). Summary of Recovery ~'4:r~t~ti ~.Tl3uraT1C~ ~ ~ , ~:, ~.~: ~~,~1~~:~2 ..~ a : Y1 ~ : ~ ~ Y ${~.1~ ~ ~ : ~~. R ~ : ~ ~ ~ ~~}:: ~ ! P'~ :, f ~: ~ :. • ~': e. d t ~ i~ 1 ~ $~1. ~~. i : ~. ~. ~ ~ i~ ~~ : ~A ~~i . ~ Y . ? .'. ~ ~ ~ : ~ ~~Y ~i~,U~~.~') ~4t.iiri~l~l~rr,a~€~clutcr~rduatit~~ix $1,Ift>.5'L $~C~.fM) ~ti1:2 $~i,?~1.IS 52,2fi2.~tS {)t~t ' tii~xt "I"h+~~a w Ti~src•fit [tldx'rt~ru~~~ $5;+4(Y7.')~ $(1.11[) $(t.£!( $C).{k ~;5.~96)7.~~~ T.'M~>1tc~rew $A,Ul~.ll:# $t,](~f).i5 $f7.(h $[3.#k S4,C~i5.t):i [hrr ~acii~rtt Sc~r i^rV (:f+saW~ SR(#).t~) ${}.ikJ $1,~4tN}.€Nl $().3~i S'~.14Hl.f~J Scec~~ut~r~ l'x}'~n~tai 4ii},h~tc `S'~.ait I'rzi=l~ry~ $.,1£3t1.1~1 $().tJ[? $tt.{ ,$C}.Lk 51.=~"3.~Y? F:l3::~i1>ifitt, .A.tae+t `C"e~rer~~t~~~ii~n S'1fii.:i5 ~1(1,511~#.~5 $l?.iN) $U.i~) $2fi5.;i~ +(~utpsci+~ret 1»yue~xr~ Irsp~t.ie~ts S1(l..~t1 ~O.lH7 $(}.f~ $C}.flt~ $iUl.'~'4~ Err•:~r~a~ri~~~(~cu~mL:u~+ayrniait 51UQ.i.RJ ~(l.1H7 $(F.t}L $C).t~. $~d?l1.tk) .A4~,l~ra~.t Surgcc;i~ ~4llult~ a1~~ t'~c~~<~d~ri~. $~JS.'?f~ !6f?.tn? $(1.Ut :$~l.{k ~95.1F, ~.A,.YI~,f7:143~t~4Uf~ll ~~.~~} ~~).~i~~.~ ,p~.{~ aru.~.~ ~.~ 523,2S1~UCi i1d,85~.7t1 ~1,481.2 ~6,2#2.1 $24,732. In addition, overpayments totaling $23,112 were found to be recovered after the data extract but prior to the delivery of the claims. City t3zer taisurar~ce ,, $t?:L~} .,. ., ~Q_QD . » . + S~.t~q . , , $~.i~i,! . ,., • . . . : .. , $tl.lJtt iv9uiza4~Ir f'r~~e~itirx: i2a:durr~c~~~+ $St).13 $il_CH~ $t)..tX1 $1_7!~S.It $t~€1.1:3 C?zi~ t:ies~t `1"lier~ +; Ii<~rtcfit:~=l~xi~tt~~x~ $y,~lt~7.2~ $U.(1~ ~..Ot) $~I.ilCl $5,~(}^r.25 ~1%~)~1C~?CC3~ .P$tp~.1:-E.`~ ~~)..1~ +¢dO.~ ~~.~} '.~x.~~.~.1 {)El; ASSEt'-}kt. 512C'NIS' ~..ti~~~. 3~` ,~9';Y(~..~} ~$)..~Q '.C~Q(~„(~ ~(~.(~(~ ~,~(~.}.(~ Sc.ca~^idan- ~'a~~~~et~t I3i 3acr T~ari I'"riuaaa-t fl.18#3.C1~ $C).Of) ShU_t~ ~3Q.i~ $9.Ii3S.tk? ];lir,i~,'[[icV-APfr>'t'r:m:inar.rczn $215.7i $f.a.5~f~(i.89 $f)_(k) SG7.t~) ~2E'z.75 c~~,~>~~~~,t~r~~,~~~ ~~, ~G;~~c sira~.2o ~a.~ saa_~ ~n.u~ ~r~..an 1':!t?i•r ~itc= Iittair'.Y7(:e~eK~ ~21~t`nS' $ICH3:C1~1 ~S3.ilf) $d)_i~) ~'~).()[l $il(~i2:[~} :'1~aes~ai~t Su: r,~<n~ h'tuki te I'rucenclurc>s j93.26 $C).(lU ~-(lt7 ~n.t1(} $'35.'~ci (:cai~:~xact slu~it $t~:(H? ~;2.421.t1U $i~_f~l ~~.OG .i~} ~9,474.f10 x9,393.$ ~100_00 31.7'~3.11 x9.57+1.00 September 7, 2010 -~- CITY COUNCIL `S BRIEFING HEALTH CARE A UDIT RESULTS School 5:~ Uth~r lxtsurat~c . , '. ~I 1~ . f~ ~ $~.i~7.~12 ; . , ~~ kt IV .~. ~t~.(ll~ . ~~ .. .. . .. , .. II •'~ • ~~ ~{l-i~ ~ . , ~ . . . , ~ '..V~ ! . }t ~. $p.~l , < •, ~ , . . _. ~• .. ~ ..~~.. S4,t~37.~#2 Mutci le1'~cx~durel~c~ucracsrs.e $2,1(3I.~9 $i7.(1F} $t31.2 ~~.~4.t7~ $2„!f#2:65 c~~:t: i~~~~ ~rn~:~~ ~ ~~~er ~i~x~~~:~,~ ~a:~~~a ~~~.~ ~r.~ s~.~x~ s~.~ LYU )ICCaleS $~.O28;ti2 ~P:1Gt~.JS ~l7.()0 $C}.UC? $2,t]2S.GZ t)tGa ~ t~ n¢ Sur et~ C'~~ ~ ~ r' ~5t~E).iH~ $i:).(7S) $1 „3f1~.(k7 ~(~.ik'~ $ ~.F.[7d).{7f) `_~•::undarv 1'ariz~rzac H~ her'I`Ira.~ 1'riansr~ $t3:q~ ${5.~k.~ 'ad~.(Ml St7.CiC} ~tl.t~ }:i'd7'rhi[if+,' - r~fcc.~ f'Ermir;aCi~an $~~3.6t~ ~3,5~$.l"1ti ~{).(k~ $(}.i~ ~~'9:fa1? {)~i3 ~atik•~i€ t:lurin [n ~atic;~~ $tl:i)t) ,"ei~.tli) ~1).C~7 5t).()i} 9~(~.(1t~ }:.711~G'C3N`l14ti~~117U:91~..C7 ~'71:t"..ilt ~(,~:(.~(} ~~.(~ ~{.~.(~ '~`(~.(~ y~.(~ :'~5s~t~C~ttT ~UC}*Ct7;1 ~Y~.11~C1 ~c' ~'t'l'K`d•c'~U.Yt:S ~i{).i~~ ~{~}..t.~7 ~(~).~k~ ~(~.~(,} ~(}.(~) ~..~(71YS.I.IC:I r1~11{~.1~ ~.Ll~,~ ~7 ~i ;'.L~.j ~{).~` ~r~.}.~ ~:1~ s23 ?77.U4 S7 4fi5.81 $1,381.26 #4,44t.04 ~1'S 158,29 Areas o, f Testing Du licate Claims Other Insurance Eli ibili Hi h Units Contract Audit Medical Edits Assistant Sur eon Overla in In atient Multi le Procedure Reductions Subro ation Bene ats Hos ital Mistakes Pricin Cosmetic Sur e Reinsurance Finclings • The amount of errors identified in the sample indicates that Optima has effective procedures in place to prevent duplicate payments • Identifted trvo members with claims paid incorrectly as Primary • Identified overpayments for missed multiple procedure reduction opportunities due to fragmented billing by providers • Optima has a process in place to ident~ and recover claims affected by retroactive eligibility terminations • Identified instances where the $100 outpatient copayment was not applied • Found that the $20 Primary Care Physician o~ce visit copayment is not taken when the $100 annual deductible is taken on same claim • Identified a member eligible for Medicare Part B who did not elect to pay for the coverage • Disagreed with two (2) examples of outpatient therapy where separate episodes of care were authorized by Optima September 7, 2010 -8- CITY COUNCIL `S BRIEFING HEALTH CARE AUDIT RESULTS Findings • Based on site visit claims, Optima's policy for secondary claims is to pay the member liability from the primary payer's explanation of benefits regardless of the contract allowable by Optima on the claim • Contract audit did not yield any agreed overpayments, but three cases of faciliry multiple procedure errors were identified on last audit and recovered before site visit • Optimum is now utilizing two external audit vendors through its Special Investigations Unit that perform overpayment identification similar to Healthcare Horizons • Healthcare Horizons did not ident~ other areas of concern for systems overpayments Recommendations 1. Discuss options with Optima for cases when a member is eligible for Medicare Part B but elects not to take it. Many plans estimate what the Medicare benefit would have been and reduce their secondary payment using the estimate. This prevents members from having an incentive to opt out of paying for Medicare Part B due to the plan covering all such claims in full 2. For secondary claims, explore the possibility of limiting the entire combined payment (primary and secondary) up to Optima's normal contractual allowable. This is a common limitation in many plans audited by Healthcare Horizons 3. Clarify lhe intent oJ the Plan on whether to charge the patient an office visit copayment when a deductible is also due. Typically, Healthcare Horizons would expect the copayment to apply first in such a scenario and then the deductible for any remaining plan payment due 4. Define the criteria used by Optima to determine when a separate illness or condition exists for the purposes oj granting separate authorizations for outpatient therapy services S. Determine a solution to prevent overpayments caused by multiple claim submissions by providers for surgeries performed during the same operative session 6. Monitor the recovery of claims due to retroactive terminations on a monthly basis September 7, 2010 -9- CITY COUNCIL `S BRIEFING HEALTH CARE AUDIT RESULTS CONCL USION While the audit has produced meaningful recoveries for the City, the percentage of overpayments compared to the total paid amount in the data is very low Optima should be commended for performing at a high level in the administration of Healthcare claims for the City Overall results represent exceptional performance by Optima in the administration of Healthcare claims Stacy Fuqua, Senior Client Executive - Optima Health, advised over 278, 000 claims were audited. This is the second year the audit was offered. Councilman DeSteph was extremely impressed with the lower number of claims, over last year's audit, found to be invalid. Councilman DeSteph was very pleased with the difference in results from this year's and last year's audit. September 7, 2010 -10- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE 4:38 P.M. Robert Matthias, Assistant City Manager advised the Final Report of the Mayor's Alternative Energy Task Force was distributed. The Task Force was created by Mayor Sessoms in April 2009. The Task Force held a total of nine (9) meetings, beginning in June 2009. The Task Force and Ciry staff extended a tremendous amount of effort, especially Clay Bernick and Mr. Matthias's Executive Assistant, Angela Garrow. Clay Bernick, Environment and Sustainabiliry O~ce Manager - Planning Department, advised the purpose of the Alternative Energy Task Force was explained in Mayor Sessoms ' April 28, 2009, letter to City Council. • to "analyze the current realiry of energy demand in Virginia Beach and explore potential sources of supply to satisfy that demand " • to "consider how those possible supply sources might impact our community, both economically and environmentally " • to "look forward in time to ident~ areas where supply may not keep pace with demand " • to "develop potential options to close that gap as well as to reduce our dependence on foreign sources " thorough ident~ing future sources which "must be environmentally sustainable and independent of foreign sources " • to "ideally and proactively position Virginia Beach to be an active leader in the essential movement toward a more sustainable and intelligent energy future for our Nation, Commonwealth and Community Task Force Process • Briefings - June through October 2009 • Public Hearing - October 26, 2009 • Subcommittee Convened to Draft Report - December 2009 • Draft Report under Development - January 2010 - April 2010 • Task Force Review of Draft Report - April 2010 - August 2010 • City Council Briefing on Final Report - September 7, 2010 • City Council Action - Fa112010 Task Force Goals • 1-Increase energy independence, with an emphasis on conservation and clean fuel technologies • 2-Reduce current municipal government energy consumption by fifteen percent (1 S%) by 2025 • 3-Expand residential/business energy education to overcome barriers to implementing energy- e~ciency and conservation actions • 4-Reduce greenhouse gas emissions by thirry percent by 2025 • S-Capitalize on economic development opportunities through business expansion and increased research and development in areas of strength, including alternative energy development • 6-Increase indigenous energy production in the City by twenty percent (20%) by 2025 September 7, 2010 CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE What is Alternative Energy? For purposes of THIS report, ener~ that is: • derived from non fossil fuel origins and that is renewable and/or sustainable (such as wind, solar, geothermal, biological or hydrologic resources), or • Replaces gasoline and diesel fuel in vehicles with natural gas, biofuels, electricity or hydrogen fuel cells • The US Department of Energy defines renewable energy as: "electric energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased e~ciency or additions of new capacity at an existing hydroelectric project. " Recommended Overall City Policy "Three-Legged Stool Approach"to be pursued simultaneously: • 1- Transitional Development and Prudent Use of Traditional Energy Sources • 2- Aggressive Support for Energy Conservation and Retrofits to Optimize Efficiency • 3- Sustainable Development and Use of Renewable Energy Sources Leg One - Transitional • Nuclear • Support Dominion pursuing North Anna expansion • Maintain moratorium on uranium mining in Roanoke River watershed • City needs to address possible implications should development of plants or mining take place • Water quality Leg One - Transitional • Coal • Support research and development of clean coal technologies • Do not support development of proposed Dendron Coal Plant in Surry County • City needs to address possible implications should development of Dendron plant take place • Economic development • Transportation funding • Air quality • Water quality September 7, 2010 -12- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE Leg One - Transitional • Offshore Oil & Natural Gas • Recommend oil and natural gas exploration only on strict non-interference with Department of Defense (DOD) and National Aeronautics and Space Administration (NASA) operations and after federal regulatory policies, drilling and production technology, and oil spill response capability upgrades • Recommend exploration onlv after full federal and state review document no possibility of major or recurring minor spills having a negative environmental or visual impact on tourism, outdoor recreation, commercial and sports fisheries • City needs to address possible implications should development of offshore fields take place • Land use • Water quality • Economic development - military, tourism, regional economy • Air guality Leg Two - Conservation • Supports both a City organization and community focused strategy, including regional initiatives and partnerships between local governments, military, businesses, residents, energy supp[iers and private industry • Requires the development of effective communication strategies to accomplish optimum energy efficiency • Retrofit programs and development of incentives, recognition programs, collection of data to establish metrics to gauge success, reallocation of City resources to aggressively drive programs • Modify transportation and land use policies as needed • Undertaking carbon footprint analyses • City Organization • Buildings • Vehicles • United States Department of Energy (DOE) Energy Efficiency Community Block Grant (EECBG) and Local Energy Assurance Plan (LEAP) Grant Awards • Methods • Lighting • Windows • Education and Awareness • Hybrids ~ HVAC • Land Use and Transportation Studies • Data Collection • Reallocate City Staff Resources to Aggressively drive City programs September 7, 2010 -13- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE Leg Two - Conservation • Community-Wide • Residenls • Businesses • Military • Methods • Education and Awareness • Incentives and Recognition • Land Use and Transportation Studies • Recycling Studies • Data Collection • Reallocate City Staff Resources lo Aggressive[y Drive City Programs Leg Two - Conservation • Regional • Cities • Military • Business Community • Methods • Transportation Policies • Land Use Policies • Carbon Footprint Analysis • Education and Awareness Leg Three - Sustainable • Support strategy to fully research, promote and develop renewable energy resources in the City • Solar • Wind - Onshore and Offshore • Biomass and Municipal Solid Waste • Landfill Gas • Ocean and Bay - Tidal, Wave, Current & Thermal • Geothermal • Solar • Economic Development opportunities being pursued in City and region • Workforce training and development opportunities • Ciry needs to aggressively pursue and support these efforts lhrough • Land use policies • Economic Developmenl incentives and regional partnerships • City procurement and new projects requirements • K-12, college education and training support and program development September 7, 2010 -14- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE Leg Three - Sustainable • Wind • City onshore wind ordinance in place; projects under development • City strong support for offshore wind development in place Virginia Coastal Energy Resource Consortium (i~CERC), Virginia Offshore Wind Group (VOT~, Minerals Management Service, which is part of the United States Department of the Interior (MMS), etc.) • Workforce training and development opportunities • Economic Development opportunities being pursued in City and region • City needs to continue its aggressive pursuit and support of these efforts through • Land use planning for onshore support components • Pursuing resolution of issues with military • K-12, college education and training support and program development Leg Three - Sustainable • Biomass and Municipal Solid Waste • City studying biomass / composting facility to extend landfill life and generate energy • Old Dominion University (ODU) pursuing relocation of Hopewell algae biodiesel research facility to City • Ciry needs to continue its aggressive pursuit and support of these efforts through • Land use planning for location requirements • Education and training support and program development Leg Three - Sustainable • Landfill Gas • City currently vents and burns Methane from City landfill • Private landfill Methane disposition unknown • City is pursuing research and opportunities to better utilize this resource for municipal and private sources Leg Three - Sustainable • Ocean and Bay - Tidal, Wave, Current and Thermal • Virginia Coastal Energy Resource Consortium (VCERC) pursuing research opportunities to develop and utilize offshore resources • City should explore opportunities for development and utilization oJnear shore resources September 7, 2010 -15- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE Leg Three - Sustainable • Geothermal • City Schools showing significant benefits through demonstration project at Providence Elementary (80% overall energy usage reductions) • Geology of City affords significant opportunities to reduce City, commercial and residential heating and coo[ing costs • City needs to aggressively pursue and support these efforts through • Land use policies • Economic Development incentives and regional partnerships • City procurement and new projects requirements Procedural Recommendations Develop a City Council appointed Energy Advisory Committee comprised of Communiry representatives reporting to Ciry Council to: • Work with Staff and Industry parmers through the Joint Energy Committee and others to implement and track City progress on meeting the recommendations of the Task Force report • Advise City Council, on annual basis, regarding progress toward achieving Task Force report goals and actions • Track federal, state and local energy policy that may impact the City • Periodically recommend updates to the Task Force report • Conduct Energy SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis for the City • Recommend to City Council an overall energy organization administration structure for the City Reconsider the Ciry's current Resolution in support of the development of offshore drilling to recommend exploration o~ be considered to: • assure non-interference with the Department of Defense (DOD) and National Aeronautics and Space Administration (NASA) operations and commercial shipping • upgrade Federal regulatory policies, drilling and production technology and oil spill response capabilities • pursue assurances that there is no possibility that either a major spill or recurring small spills have a negative impact on our critically important tourism, outdoor recreation, and commercial and sport fishing industries • Provide regional leadership and work with Region's localities and Hampton Roads Planning District Commission (HRPDC) to develop a position of opposition to the proposed Dendron Coal Plant in Surry County • Rea~rm the City's Resolution opposing uranium mining and encourage other Hampton Roads communities to adopt similar Resolutions to retain the moratorium until current State and City studies have been completed and it is determined mining can be safely pursued in the Commonwealth September 7, 2010 -16- CITY MANAGER `S BRIEFING ALTERNATIVE ENERGY TASK FORCE Procedural Recommendations • Work to accomplish Task Force goals and actions by promoting and expanding partnerships, including.• • Local energy providers - Dominion Virginia Power, Virginia Natural Gas • Regional partnerships - other communities, Hampton Roads Planning District Commission (HRPDC), Green Jobs Alliance, Virginia Offshore Wind • Purchasing partnerships - Virginia Energy Purchasing Governmental Association • State programs - Department of Mines, Minerals and Energy, Center for Innovative Technology • U.S. Green Building Council, Energy Star Program, ICLEI (Founded in 1990 as the `International Council for Local Environmental Initiatives )( ICLEI - Local Governments for Sustainability) Next Steps • Formal adoption of Task Force Report as foundation for City's Energy Policy • Appoint Energy Advisory Committee • Amend offshore drilling policy • Rea~rm uranium mining moratorium Resolution • Work at regional level to encourage adoption of Dendron Coal Plant opposition Resolution Council Lady Bellitto would be pleased to be a Liaison to the Energy Advisory Committee. Mayor Sessoms expressed appreciation to all participants in this Report. Mayor Sessoms urged the establishment of a Virginia Beach Tomorrow Group within the next few weeks. The City Council needs to review other resources besides the Military to keep the City's economy strong. September 7, 2010 -17- CITY MANAGER `S BRIEFING NORFOLKSOUTHERNRAILROAD RIGHT-OF-WAYACQUISITION 5:10 P.M. Becky Kubin, Deputy City Attorney, referenced the Update re NORFOLK SOUTHERN RAILROAD right-of-way acquisition. Where Are We Now? The City's intent to acquire Norfolk Southern Railroad right-of-way was announced March I1, 2009 The Purchase Agreement was signed September 4, 2009, with an expected closing of December 29, 2009. The following represents a chronology: Closed in escrow December 29, 2009 Amended Purchase Agreement to extend Closing to September 1, 2010, to allow time to receive funding from the Commonwealth and HRT City paid $10-Million into escrow Norfolk Southern placed signed Deed into escrow Since December 29, working to obtain funding from: Commonwealth $20-Million Hampton Roads Transit $ S-Million Escrow agreement revised last week to extend final Closing date to September 24, 2010 Original Terms Purchasing I0.58-mile rail corridor from Newtown Road to Birdneck Road Purchase Price = $40,000,000 total $35, 000, 000 at Closing $10,000,000 jrom City of Virginia Beach $ZO,OOO,OOOfrom Commonwealth oJVirginia $ S, 000, 000 from HRT Norfolk Southern retains utility easement over area required to serve current VEPCO lease Valued at $S-Million City has 3 year option to purchase easement (and assume VEPCO lease) for $S-Million September 7, 2010 -18- CITY MANAGER `S BRIEFING NORFOLK SOUTHERN RAILROAD RIGHT-OF-WAYACQUISITION Utility Easement for VEPCO Lease Norfolk Southern has 99 year lease with VEPCO Initial lease expires 2029 Once Ciry exercises option, it will assume a portion of the lease as landlord and receive the proportionate rents If option is exercised, rent to City wi[l be $97,630/year Grant agreement terms will require these funds to be used for transportation projects in Virginia Beach Any future transportation project in the rail corridor will benefit from the City being the landlord, because it is likely that some utility facilities will need to be moved or adjusted Status of $20-Million Transportation Partnership Opportunity Fund (TPOF) Grant Transportation Partnership Opportunity Fund (TPOF) Grant $20-Million Total State bonds that cover this grant were issued in May 2010 Grant agreement terms: SO% Matching Grant: Requires City exercise the option to purchase utility easement from Norfolk Southern (for $S-Million) to receive entire $20-Million Grant If City does not exercise option, grant will be only $17.5-Million If City exercises the option now: The Commonwealth will pay the remaining $2.5- Million Funding sourceJ'or the $S-Million price will be: Year- end Fund Balance September 7, 2010 -19- CITY MANAGER `S BRIEFING NORFOLK SOUTHERN RAILROAD RIGHT-OF-WAYACQUISITION Status of $20 Million Transportation Partnership Opportunity Fund (TPOF) Grant (Continued) Grant agreement will require that the Ciry agree to: Purchase the rail corridor by September 1, 2011 Refrain from any activiry or use that would prevent the rail corridor from being used for the expansion of the Norfolk Light Rail system Use its "best efforts" to pursue expansion of light rail No deadline Practical implications: City must continue to pursue the Alternatives Analysis/SDEIS study Because there is no deadline, any interim transportation use resulting from the study will not be a violation, so long as the use of the rail line in the future for such expansion is not foreclosed Failure to comply with Grant Agreement, the State can seek repayment of Grant funds Status of $S-MILLIONfrom Hampton Roads Transit (HR7~ Hampton Roads Transit does not have an independent funding source -all funds are from federal, state and local Grants HRT cannot pay the pledged $S-Million by the Closing date HRT proposes to make installment payments of $1-Million per year directly to Norfolk Southern, over the next S years Upon approval by HRT Commission, HRT and Norfolk Southern will enter into a written agreement jor the installment payments HRT will consider the written agreement at its Commission meeting on September 23, 2010 City's closing with Norfolk Southern has been delayed until September 24, 2010, to allow HRT time to approve this Agreement September 7, 2010 -20- CITY MANAGER `S BRIEFING NORFOLK SOUTHERN RAILROAD RIGHT-OF-WAYACQUISITION Next Steps September 14, 2010: Counci[ action to: Authorize execution of Grant Agreement Approve exercising the option now to purchase utiliry easement for $S-Million Accept and appropriate ,$20-Million Grant from Comnzonwealth September 24, 2010: Final Closing and e~eercise of option September 29, 2010: Close on purchase of utility easement, pursuant to option agreement Councilman DeSteph inquired re the City not being tied to specifically utilizing this Corridor for light rail, but can it be utilized for anything that would be an extension of the light rail. Deputy City Attorney Kubin advised, this agreement does not state light rail must be under construction on a certain date. The Agreement only states the City wou[d commit to pursuing light rail. In discussions with the State, the question has been posed "If the study results in something other than light rail, could it be an interim use? " The answer was "Yes ", so long as the City was not foreclosing that opportunity. In response to Council Lady Henley, the City would be the sole owner of the right-of-way. Council Lady Bellitto believes it is important for the City to gain control of this right-of-way. Mayor Sessoms referenced speaking with the Secretary of Transportation and the Governor's Chief of Staff with Depury City Attorney Kubin. Mayor Sessoms advised the key item, which is most encouraging; there is only one date that was presented to Ciry Council. The purpose of that date was to close on the right-of-way. There was not a date stated indicating light rail had to be started at any point. The agreement stated the Ciry should pursue light rail to the best of the City's ability. The Environmental Impact Statement (EIS) would be allowed to come forward and make recommendations. Norfolk Southern has agreed, upon Hampton Roads Transit's vote, that the City will not be liable for that $S- Million. Hampton Roads Transit (HRT) will be liable to Norfolk Southern. There will be no securiry given by the City. September 7, 2010 -21 - C ITY MANAGER `S BRIEFING 2011 COMMUNITYLEGISLATIVEAGENDA 5:49 P.M. Robert Matthias, Assistant to the City Manager, advised the 2011 Session of the General Assembly will be, as always, very important to the Commonwealth. Mr. Matthias provided a brief synopsis of the 2011 Community Legislative Agenda Preface and items. A detailed City Council Briefing will be scheduled for the City Council Session of September 14, 2010. The 2011 Community Legislative Agenda Public Hearing will be SCHEDULED for September 28, 2010. The City is concerned, as are all local governments, about the possibiliry of ABC privatization. Currently, approximately $220-Million per year goes to the General Fund, which helps to fund Schools, Public Safery and many other basic services. Also, there are questions about the local government's control over ABC stores if they were to be privatized. Concerns are foremost in the deliberations as the Commonwealth moves forward with government reform and overhaul, especially the privatization of ABC stores. As the City has been saying for many years, the General Assembly has attempted repeatedly to address transportation and has been unsuccessful. Although HB3202 would have created tremendous amounts of new revenue for the Commonwealth and especially for Hampton Roads and Northern Virginia, those efforts went wasted because of the ruling of the State Supreme Court. The City of Virginia Beach now receives zero dollars from the Commonwealth for urban street construction, down from an amount in the mid $30-Million just a few years ago. Transportation has become a quality of life issue and is leading to decreased economic development and productiviry. What is most troubling about the inability of the General Assembly to react to the transportation crisis, is senior officials of the Navy repeatedly saying that they would not support additional commands coming to Hampton Roads until we address our transportation issues. This must be addressed as soon as possible. City Council continues to be concerned about the level of funding available for basic services like Education, Social Services and Public Safety. Perhaps the Governors Reform Commission will determine more appropriate levels of State funding and responsibility for these services. This is an issue that should and must be addressed as soon as possible. Reguested Code Changes 1. PADDLEBOARDS IN SWIMMING AND SURFING AREAS ChiefJamesA. Cervera Department of Police Background Information: Paddleboards are large, heavy boards used for recreational purposes in coastal waters. The Coast Guard has classified paddleboards as "vessels" and has imposed regulations on their use, but those regulations apply only when the paddleboards are used outside of designated swim/surf zones. Because the use of paddleboards in swimming and surfing areas could create a safety hazard for swimmers or persons wading into the water, the City seeks authority to regulate the operation of these vessels in swimming or surfing areas. Request: We request that the General Assembly enact legislation that would authorize Virginia Beach to regulate, by ordinance, the use and operation of paddleboards when such vessels are operated within any area designated by the City as a swimming or surfing area. September 7, 2010 -z2- C ITY MANAGER `S BRIEFING 2011 COMMUNITY LEGISLATIVE AGENDA 2. PROCEDURES FOR NOTIFYING ACCUSED OF CERTIFICATE OF ANALYSIS; WAIVER; CONTINUANCES ChiefJamesA. Cervera Department of Police Background Information: The issue involves giving notice to a person that the arresting officer intends to use a certificate of analysis in court. The code currently requires a copy to be filed with the court the same day it is giving to the accused. An officer can't possible comply with this code if a person is arrested on a Friday night and is given a copy of the certificate of analysis and notice. Since the notice form does not reach the clerk's office until Monday, it is several days late. This has resulted in several breath test results being thrown out of court and on some occasions the entire DUI case being lost. Request: We request that the General Assembly amend Virginia Code § 19.2-187.1 to give an officer 7 days to file the copy. See Appendix Item 2(page 21) for text of the requested legislative change. 3. RIDING ON MOTORCYCLES, GENERALLY ChiefJamesA. Cervera Department of Police Background Information: The reason for this request is that with the increased fuel cost we are seeing an increase in motorcycle usage and with this increase we are also see an increase in passengers. Since there is no safety devices manufactured for children and toddlers it is quite unsafe and impractical for a child under the age of 8 to ride on a motorcycle. It is also quite difficult for most children under the age of 9 to stay on the motorcycle while it is driving. Request: We request that the General Assembly amend Virginia Code § 46.2-909 so that no person under the age of 9 shall ride on a motorcycle. See Appendix Item 3(page 22) for text of the requested legislative change. September 7, 2010 - 23 - C ITY MANAGER `S BRIEFING ZOIl COMMUNITYLEGISLATIVEAGENDA 4. POSSESSING FIREARM WHILE UNDER THE INFLUENCE OF ALCOHOL OR ILLEGAL DRUGS Chief James A. Cervera Department of Police Background lnformation: Code § 18.2-308 should be amended as officers are increasingly coming into contact with individuals that are legally carrying a firearm but are intoxicated. This would include people who are openly carrying a firearm or have it in plain view in a vehicle as they drive. The current Code prohibits a person with a concealed handgun permit to carry the handgun if they are intoxicated but there is no prohibition for a person to possess a firearm in plain view or "open carry" if they are intoxicated. Request: We request that the General Assembly amend Virginia Code § 18.2-308 be amended so that any person who is under the influence of alcohol or illegal drugs while possessing a firearm in a public place shall be guilty of a Class 1 misdemeanor. See Appendix Item 4(page 23) for text of the requested legislative change. 5. CRIMINAL HISTORY RECORD INFORMATION CHECK FOR TRANSFER OF CERTAIN FIREARMS Councilmember Bill DeSteph Background Information: State law requires a gun dealer selling a firearm to an individual to obtain criminal history record information from the Department of State Police prior to completing the sale. Certain individuals and transactions are exempt from the background check requirements. A person who purchases a handgun in a private sale is exempt from the background check requirements. Questions have arisen in enforcing this law as to whether a dealer can have "business inventory" and a separate "personal inventory" of firearms that may qualify for the private sale exemption. As currently written, the law references sales or transfers from a dealer's inventory, but does not distinguish between a dealer's business inventory and a dealer's personal inventory. Request: In an effort to better protect citizens and to clarify that criminal history record information checks are required for firearm sales by a gun dealer, regardless of whether those firearms are part of his business inventory or his personal inventory, we request that the General Assembly amend Virginia Code §§ 18.2-308.2:2(B)(1) and 18.2-308.2:2(C) to delete the three occurrences of the phrase "from his inventory.") See Appendix Item 5(page 24) for text of the requested legislative change September 7, 2010 -24- ITEM # 60245 "RADAR BLOCKAGE ANALYSIS FOR THE CITY OF VIRGINIA BEACH OCEANFRONT RESORT STRATEGIC GROWTHAREA" The City Manager distributed the September 7, 2010, Final Report entitled.• "Radar Blockage Analysis for the City of Virginia Beach Oceanfront Resort Strategic Growth Area': The City Manager advised this has been the subject of a FOIA (Freedom of Information Act) request prior to its completion. Copies of this report have been distributed to the media. The City Council Workshop was ADJOURNED 6: 00 P.M. September 7, 2010