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Home My WebLink AboutOCTOBER 18, 2011 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAM D. SESSOMS, JR., At-Large V/CE MAYOR LOU/S R. JONES, Bayside -District 4 GLENN R. UAVIS, Rose Hal! -District 3 WILL/AM R. DeSTEPH, At-Large HARRY E. DIEZEL, Kempsville -District 2 ROBERT M DYER, Centerville -District I BARBARA M. HEN/,EY, Princess Anne -District 7 PRESC07T N. SHERROD, At-large JOHN E. UHRIN, Beach -District 6 ROSEMARY WILSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 CITY COUNCIL APPOINTEES C/TY MANAGER - .LAMES K. SPORE CITY ATTORNEY - MARK D. STILES CITY ASSESSOR - JF,RALD D. BANAGAN C/1Y AUDITOR - LYNDON S REMIAS CITY CLERK - X UTH HOIX;ES ERASER, MMC C/TY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRC/NIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E- MA/L: ctycncl@vbgov.com CITY COUNCIL WORKSHOP AGENDA 18 OCTOBER 2011 I. CITY COUNCIL/SCHOOL BOARD JOINT MEETING -Building 19 - A. HEALTH CARE Linda Matkins, Director of Benefits II. CITY MANAGER'S BRIEFINGS -Conference Room - A. 2018 and BEYOND STUDY Robert B. Gardner, Senior Vice President - SCS Engineers B. LASKIN ROAD GATEWAY and NIMMO project Dave Hansen, Deputy City Manager 3:00 PM 4:00 PM C. PLANNING ITEMS PENDING Jack Whitney, Director -Planning -1- MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia October 18, 2011 Vice Mayor Louis R. Jones, called to order the CITY COUNCIL/SCHOOL BOARD JOINT WORKSHOP re HEALTH CARE UPDATE in the Conference Room of Building 19, Tuesday, October 18, 2011, at 3:00 P.M. Council Members Present.• Glenn R. Davis, Robert M. Dyer, Prescott Sherrod, Wood Council Members Absent: William R. "Bill " DeSteph, Harry E. Diezel, Barbara M. Henley, Vice Mayor Louis R. Jones, John E. Uhrin, Rosemary Wilson and James L. Mayor William D. Sessoms, Jr. School Board Members Present: [In Germany, re Economic Development Vice Chairman William J. Brunke, IV, Todd C. Davidson, Emma L. "EM" Davis, Chairman Daniel D. Edwards, Dorothy M. Holtz, Brent N. McKenzie, Ashley K McLeod and Sam Reid School Board Members Absent: Patrick S. Salyer, Sandra Smith-Jones and Carolyn D. Weems October 18, 2011 -2- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE 3: 00 P.M. Farrell E. Hanzaker, School Chief Financial Officer, advised the presentation will be a "tag-team" presentation. Linda Matkins, Director of Benefits, and Leslie Darden, Wellness Program Specialist, will focus on this particidar section, Cindy Curtis -Deputy City Manager, will close the presentation with the Direction on Implementation of the Wellness Advantage Program. The Agenda consists of the following: nda A e c.~ Health Care Trend ~~ Health Care. Fund Balance ~~~ c~~ Wellness Initiative Proposal c~, Direction on Implemeiitatianof "WellnessAdvan a ;e" Health Plan Claims Cost Trend Historical and Forecasted VA BEACH HSTOPoCAL AHD PROJECTED TOTAL INCLRRED CLAIMS PEPM _-1-~~.. ____1--_._.-r---r-----1-----_1 { ~.._ i 3 ~ ~ ( iQ.Q7. trend x-.~a ~, 8.8°m vend i 1 se?p 1 - - ', C ! ~ i t ~ I ~ ~ 1~ ~~ I'~ ~ 1 ri_ °sz~~ ~ ~ ,, ~. I .'~ ~p ~ I ?O10 I ;' .,,, I I g ~ I I -- ,hk, ~+ 1 I I I I I ! <,.. I I i I I I I ~ i e~,. ..q. ,~ ~~~...~ ..~ ~-~ ~. .,- '9ased on date thtnugh Jw+e 2471 _. _. ____ ... October 18, 2011 -3- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE Farrell E. Hanzaker, Chief Financial Officer- Virginia Beach Schools, advised in 2007 a negative 2.5% trend was experienced, and in 2008 and 2009, a flow 4% trend in both years. The School's trend was well below the national average which was over 6%. Plan design changes in these years contributed to a lower than expected trend, and therefore, built the Health Care Fund Balance to over $30-Million by June 30, 2009. A strategic decision was made not to increase employee premium contributions or change the Plan Design in 2010, 2011, and 2012 due in large part to the lack of salary increases; however, the medical tread cost did continue to rise by 9.1 % in 2010, projected at 8% in 2011 and projected at 10% in 2012. Schools have, and will, use fund balance reserves to cover the deficit in these years. At a time when employees were held harmless by not changing the Plan Design or increasing premiums. The majority of large employers nationally have consistently increased employee premiums, deductibles, co pays and coinsurances. Health Care Fund Balance_ $32.5 $30.7 $30..2 '~ "~, ~;~, $30 j $25 !` ~ $ZO I. $12.0 ~ $15 . r., $io ,~ 'G -$17.3 $5 ~ - _ _. _.. - .. .......... ..___._.._. $0 ~---- -- ---- -- - ~ -$10 N N N N -$15 ( _- --- __ __ __ _ _ _ - -- . 'f A commitment was made to maintain the equivalent of at least one month of claims, currently between $9- Million and $10-Million in the Health Care fund, as agreed to previously by the City and School Board. Additionally, GASB 45 payments of approximately $8-Million, combined both City and Schools, are paid to the Health Care Fund. Therefore, absent any Plan changes or premium increases, the Schools would have a shortfall in liability of $17-Million in 2013. The City is headed towards a Health Fund Deficit and there will be significant changes to Health Care Reform that will further increase costs to employers irZ 2014. It is necessary to implement a Health Care Strategy to help offset these increases. In addition to the Plan changes and changes to the contribution structure, there needs to be aggressive initiatives put in place to improve the health of the employees and in an effort to bend the health care trend line downward. 20% of the employees generate about 80% of the cost. Leslie Darden presented a proposal for a wellness initiative expected to change health care behaviors, and increase workplace productivity and slow the health care cost trend. October 18, 2011 -4- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE Mr. Hanzaker requested a Joint Meeting of City Council and the School Board in early Spring of next year to further discuss options in health care strategy for 2013. He introduced Leslie Darden. Health Care Landscape cat Health Fund Deficit c~ New Health Reform Changes ca3 Health Plan Strategy cis Wellness Initiatives t~ Contribution Strategy c~ Plan Offerings/Plan Design Changes Leslie Darden, Wellness Program Specialist, advised the concept of this proposal is not too much different from the wellness programs offered today. Incentive-based wellness programs have been used for a long time and continue to be successful. . e ~` :. _. ,~ Improve Employee & Retiree Health. Opportunity Reduce excess costs associated with low productivity, absenteeism, disability and worker's compensation. Engage employees to maintain Potential healthy lifestyles, ultimately resulting in improved health and reduced cost for employees and the employer. October 18, 2011 -5- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE ~~ __ Ameta-review of 56 published studies of worksite health promotion programs shows on average a: 27°l, reduction in sick leave absenteeism 26% reduction in healthcare costs 32% reduction in workers' compensation and disability management claims costs $5,81-to-$1 savings-to-cost ratio October 18, 2011 2003 2007 2010 2011 Estimated for 2012 -6- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE ,,~ Aniericaii Hurt Assc>c.i~tivn Learn and Li+ae 1 ~~1 ~- ACHIEVE(VIENT J'-;,~~m,a!~~ A111eT1C1I1 H2aI't ASSOClat1011 cmwsani!~SO~~ro.ca ~x!~ _ pi f'a~en, Inc. City W SautllTiekf, 4.11- Parks . ___.... ~~, h r P„ar~ ~~:~~' 2009. 0 2010 0 2011 r~!,` ~ w~4~«;~ earn. v ...~.-h,.s.r -,~+ . ~ ccs ofwe"'~'Na",rpr,. c1 "`ea!POmT VITkS Inn ~ v ~ is~::e i:are :.teary Gomieb SYeen 8 Harn1 N.`aNace VJeI[1i 8 VYk, =}gham Int. C~ & CgmpIiYSHef, Palm @e W:N~M.'1rt DiSintwucn ~.;.enler, iM.~G2t " P ~ rmlrve .___. _.. _.. t :, e v /f ~~ 1998 0 2004 0 2011 ~ VBCH The City and Schools have been recognized as aFit-Friendly Company three (3) years in a row. This past May, the Virginia Business Coalition On Health awarded the 2011 Wellness in the Workplace Award. This recognition and success is wonderful, but still more people can be reached. What is missing is participation. October 18, 2011 -~- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE The FIT Program was designed to encourage employees to be more physically active on a regular basis. The goal is to work out thirty-six (36) or more times within asix-month period. To date, as of June 30, 2012, there are 2,289 participants in the FIT Program. ~~ 2289 (13°/a) participants enrolled in FIT program 1262 (55%} of those met the 36 visit requirementfor Jan-Jun11, ca~Physically active employees cost $25C1 less per year in health costs. ra~If we engage 25 % (4,250) of our employees/retirees, we could save over $1-Million annually. October 18, 2011 -8- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE A $50 subsidy is offered to assist in the payment of membership to Weight Watchers. .'~ ~~ Y .~ 5~0 (3%} Requested program. subsidy C}nly 194 (1010} Used their subsidy in 2010 Obesity adds an estimated $2,800 annually in medical expenses. National Obesity Trends About one-third of U.S. adults (33.8%} are obese. Nnfiorui? v"« m~~rr of Ea~~ratui~ (ttsner~L October 18, 2011 -9- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE ~' It c~ More than 70% of smokers want to quit, but few are able to without help. c~ Estimated 3570 (21 %) CVB/ VBCPS smokers. 70 % of that is 2499. c~ Opportunity to save $13,632,045 Over $13 -1Vlillion annually October 18, 2011 -10- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE n 45% 39% 40% 36% 35% ~~ 30% _ z zs% i C3nly 50% are 20% i4°i° 15°i° Compliant ~s% ~o% 6°i° s% ~ 3 o% - - _ _ _ Congestive Heart Failure Coronary Heart Disease Diabetes City of Virginia Beach r Virginia Beach Public Schools ~a~t~s i~~ase ~na~et olianc~ a~1 ~c~s~ avc~d.~ne~~ Low compliance (<2o°i°) High compliance (>80 %) _ _ ___ $15,186 $1,312 ' $16,498 55 °`o $6,377 $2,510 $8,886 3®% __ October 18, 2011 -11- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE Y` 2010 claims data shows 2,000 (12"/0) diabetics on plan. Low Compliant Diabetics Hi hg Compliant Diabetics... ''2,00 * $16,498 = $32,966,00 2,000 * $8,886 = $17,772,000 $33 Million $18 Million Opportunity to save up to $15 Million annually, not including cost avoidance from ER and f or hospital admissions. An estimated 25% of Americans with diabetes are unaware that they have the disease. 4,250 possible undiagnosed employees/ retirees. duierican 1)iaG-Etcs dssociaNm: - _'tll t October 18, 2011 -12- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE ~° l s 94$ (6°Io) screened in 2010 Overweight 557 (59%) ~ ~ ~ ~ ~~ ~' High. Blood Pressure 310 (33%) Tobacco User 48 (5%) At Risk,#or Diabetes 403 (43°/a) Low compliance (<20%) __ High compliance (>80%) $9,849 $1,067 $10,916 26 $4,780 $1,972 $6,52, 16% More than 75% of employers' health care costs and productivity losses are attributed to employee lifestyle choices. October 18, 2011 13- CITY COUNCIL/SCHOOL BOARD JOINT MEETING HEALTH CARE UPDATE Ylzvsically Poor Si~~oker lnacti~~e~ I~'~utriEio71 ToL~acco ~rol Laser Direct vs Iandirect Cost October 18, 2011 -14- CITY MANAGER `S BRIEFING HEALTH CARE UPDATE _ __ caz50% Participation Rate c~ Discover 79«lo more employees at high risk for health conditions than you would at 30%. ca270°!o Participation Rate c~ Discover 167°lo more employees at high risk for health conditions than you would at 30%. F>txct~rinf frr 15-et7rrc<c - ~rr~•st t7iaXrrnl ir:~ 1 . .The Welltress A~z'trtrue will assist employees in reaching. their healthy lifestyle goals. Program tools include: c~ Personal certified health coach c~ Stress-less MP3 downloads .`• c~ Cardio and strength exercise planners ` c~z Meal/nutrition planner ~~ ~ c :Over 40 fitness and wellness trackers °+/ ~ c:~ Wellness Library c.~ Online Wellness Courses Health coaches rwill direct employees to current tlTellness and Disease Management programs: October 18, 2011 -15- CITY MANAGER `S BRIEFING HEALTH CARE UPDATE October 2011 -March 2012 Implement communication strategy April-October 2012 '' Host onsite health screenings November 2012 'Complete data entry December 2012 o List of Wellness Advantage Plus members file and W&P talking points sent to health coaching vendor o Send all members participation card January -December 2013 o Health coaching reminders o Track employee compliance o Remove wellness incentives for non- compliant employees The Wellness Advantage is going to take us to the next level and put us in better financial situation. Review cap Projected Trend <~ Calendar Year 2012 -10 ~~ c~ No changes in premiums and plan design c~ Health Fund Balance. cry3 Fiscal Year 2013 -Projected deficit <$17.27M> c~ Wellness Advantage r~z Improve Employee Health ca Increase Workplace Productivity r~ Improve Financial Status October 18, 2011 -16- CITY MANAGER `S BRIEFING HEALTH CARE UPDATE City Council RECESSED to the City Manager Briefings Session in the City Council Conference Room, at 4: 00 P.M. October 18, 2011 -17- MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia October 18, 2011 Vice Mayor Louis R. Jones, called to order the CITY MANAGER'S BRIEFING re SOLID WASTE MANAGEMENT STUDY 2018 AND BEYOND in the City Council Conference Room, of City Hall Building I, Tuesday, October 18, 2011, at 4:10 P.M. Council Members Present: Glenn R. Davis, Robert M. Dyer, Prescott Sherrod, Wood Council Members Absent: William R. "Bill " DeSteph, Harry E. Diezel, Barbara M. Henley, Vice Mayor Louis R. Jones, John E. Uhrin, Rosemary Wilson and James L. Mayor William D. Sessoms, Jr. [In Germany, re Economic Development) October 18, 2011 -18- CITY MANAGER `S BRIEFING 2018 AND BEYOND STUDY 4:1 S P.M. The City Manager introduced Robert Gardner, Senior Vice President -SCS Engineers, to present an executive overview of the Solid Waste Management Study 2018 and Beyond. The information provided will be utilized when considering the City's options going forward. The City Manager advised, through a competitive process, the City was fortunate enough to select SCS Engineers to perform the study. Robert B. Gardner, Senior Vice President of SCS Engineers, advised he delivered similar presentations to surrounding cities which were adapted to each specific municipality. The Study involved meeting with communities, updating waste flow data, re-evaluating alternatives, developing future scenarios, preparing a new model and developing conclusions and recommendations. Recommendations include establishing a future Regional Authority, governance, system funding, waste- to-energy plant, regional landfill, host fee considerations, yard waste management, recycling and an implementation schedule. A complete copy of the final report is available on the Hampton Roads Planning District Commission (HRPDC) website for viewing. The Scope of the study includes: • Meet with member communities • Update historical and projected waste flows • Re-evaluate institutional alternatives • Develop and evaluate future scenarios • Prepare new pro forma model • Develop conclusions and recommendations Scenarios Evaluated • Basis for scenarios • Eastern and Western options • Special considerations - City of Portsmouth (Proximity to WTE Facility) - City of Virginia Beach (VB LF No. 2, Closure Costs) - City of Suffolk (Host fee) - Commercial waste - Market assumptions -Integrated solid waste management hierarchy October 18, 2011 -19- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Waste Management Hierarchy Source Reduction 0 Reuse Recycling and Composting Resource Recovery -~ Incineration Disposal Transfer Station Waste to Energy Energy _T__~-~____~~ _ . - ,~ ' ~ ~ ~ ~. rr :: ~~"-~'---~ --= - ~ ~ Wheelabraror Technoloyres Inc. 1 Residential/ Landfill Commercial I~~~~'~~ ! ~;,'~l. i ~~ Energy ~ Organics Processing ~~„~ ~.~ ~` System Scenarios October 18, 2011 -20- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Cooperation Scenarios • Status quo • Western communities operate own transfer stations and contract haul waste to WM's Waverly Landfill • Eastern communities either stay with SPSA or self perform all transfer and disposal operations, with or without WTE • SPSA - Landfill + Transfer Operations -Transfer Operations Only - Landfill Operations Only Transfer Scenarios • Ownership Models -SPSA owns and operates - Each member community owns and operates - Privatization of transfer stations/transportation October 18, 2011 -21 - CITY MANAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Complexity ~.~ ~~ ~.. d~ '~ ,~ r r....,. °-°~ ~~ ~.~ ~.. ~~~ ~~ ,. ~:~ ~~~± ~E~o~~~~. ~. - ate. :~a~-_ .. ~~ ..r_ ,,, V.w~--~..~~ UYn.+~e.W NwwpKxwl •ayii. ~ .MSYk-+ nr4NOw~. srena,a. ~Vran..gi. Few" Cabr~i,o fMrs~cU6 Putting this all together, a combination of scenarios was developed labeled A through G. The A scenarios essentially take a look at continuing the current configuration, which includes the private operation of the Waste To Energy (WTE) Facility, the public operation of the transfer station and landfill (A.1), and a twist of transferring the ownership and operation of the transfer stations to the member communities (A.2). The B Scenarios assume that the landfill closes. Three scenarios are considered to illustrate a couple of points. B.1 assumes that SPSA would continue to operate the transfer stations and ship waste to an out-of-region landfill. Scenarios B.2 essentially assumes SPSA does not exist anymore and the member communities take over the transfer operations and dispose at an out-of-region landfill. Scenario B.3 is an interesting one. It is similar to 8.2, except it assumes the City of Virginia Beach will expand its landfill to handle all the waste it generates. System NPVAnalysis Scenarios A Series (Use existing systems, LF, and WTE) B Series (ORLF, Regional LF closed) C Series (Regional LF) (E/W split) D Series (Regional LF Closed, Muni TSs) E Series (New WTE in VB) (E/W split) F.1 Suffolk operates Regional LFfor own municipal solid waste disposal G.1 Similar to A.2, except Portsmouth does not participate in SPSA. Scenario F looked at the costs of operating the landfill if it were to be purchased and used by only one of the municipalities, in this case, Suffolk. I'll note here that this study did not include a valuation of the landfill; therefore, the cost to purchase the landfill would have to be added to the NPV costs presented in the analysis. October 18, 2011 -22- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Scenario G, is similar to Scenario A.1, with the exception that it is assumed Portsmouth would no longer participate in SPSA and would deliver its waste directly to the Wheelabrator WTE facility within its jurisdiction and negotiate a disposal agreement separately. So, there are many moving parts to the analysis. We have attempted to model these moving parts, which includes where waste goes, who operates the transfer stations and landfills, what the future market conditions may look like, and the capacity of the various landfill assets in the region. The model for this is very complex, but it can become a useful tool for the future in the region. System N PV Analysis Scenarios • A Series (Use existing systems, LF, and WTE) • B Series (ORLF, Regional LF closed) • C Series (Regional LF) (E/W split) • D Series (Regional LF Closed, Muni TSs) • E Series (New WTE in VB) (E/W split) Pro Forma Analysis • Many variables, assumptions, and moving parts • Allocation of municipality costs for solid waste services - Full cost accounting based on budgets - Allocation of disposal and transfer costs for all scenarios • With SPSA • Without SPSA October 18, 2011 - 23 - CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) 5PSA 2012 Projected system Costs By Function 511,4 09'0 ^ Disposal Recycling .Transfer ^ Transfer-Fleet It Support Reserves Virginia Beach - SPSA 2012 Projected System Costs By Function 1,900 , ^ Disposal ^ Recycling Transfer Station ^ Transfer Fleet ^ Support Reserves October 18, 2011 {d dQS xQ7 Qy 1,500,000, 39`0 7~~ ~~ q~ 244,100, 3% -24- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Virginia Beach - SPSA 2016 Projected System Costs By Function 6,90f ^ Disposal ^ Recycling ^ Transfer Station ^ Transfer Fleet ^ Support Reserves • Future landfrll needs and capacity Regional LF Capacity Scenario --)t-A.1 October I8, 2011 ry~,y'LryoyA ti~16 ry0,y4 ry~,y0 ry0.1'Lryo~a ti~ryb ryo,~0 ~o„~O ry~,~'L ry~~ ryQn~O ry0„~4 ti~ v~tiry eP'rypp,o Fiscal Year End v -25- CITYMANAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Regional LF Capacity Regional LF - EOY Remaining Site Life Curve a,soo,ooo 4,000,000 3,500,000 3,000,000 h 2,500,000 c 0 ~ z,ooo,ooo l,soo,ooo l,ooo,ooo soo,ooo Scenario -~-c.z Regional LF Capacity Regional LF - EOY Remaining Site Life Curve a,soo,ooo a,ooo,ooo 3,500,000 3,000,000 H 2,500,000 c 0 ~ z,ooo,ooo 1,500,000 1,000,000 500,000 icenario --YF- B.1 October 18, 2011 p'ti1' 0'ra otib Otis oti~ p'L7' ~'La p'L~D ~'L~ p'h~ O~ti 03p 0~6 ~'~~ D~ O~~ d' OY' ti ti ti ti ti ti ti ti ry ti ti ti ti ry ti ti ti ti Fiscal Year End p'ti1' OSa o.Y~o 01~ ~'L~ ~'L1' p'La Otib Oti4 p3~ 031' 0^p' ~3~0 O~~ tl' Oary 0~ D~ ti ti ti ti ti ti ti ti ti ti ti ry ti ti ti ti ti ti Fiscal Year End -26- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Key Findings • Future landfill needs and capacity • WTE, Regional LF, Transfer Stations (Status Quo) Yearly SW System Cost Scenario0.l-AIISPSALF/TS,WTE Projection Municipality: Virginia Beach 8( 7U __. _.- -_. _ __.. _.. 8 ~_ __ C °V d m ~ so .f-___._.~_ _._ _ _ _.__..__._._.._.____ _ _....._ ~_._.____, i, -.... ~ - qN Recycling c ~ ~~ ~~ ,~ ~ i ~` ^ Transfer ~ c ao }--__._._______._ -~.,- r~~ t ° I~ r ~ ~ collection E ao :" S` W a ~ ~ ~ ^ Disposal 3 ~ i ~ ~ ^ Support °y zo - d ~O 10 a 0 pN 1"! pd N 1pp0 1~ ptlo T g N N pN N N N N N N N N N N N N N N N N N N N N N N Fiscal Year October 18, 2011 -27- CITY MA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Summary NPV Results .. N d A~ T d d Y Z 27 Key Findings • Benefits of WTE (Waste to Energy) - Reduce disposal quantities and volumes - Renewable energy resource producing electricity and steam - Reduce dependence on fossil fuels - Facilities and systems in place - Major upgrades made to facility - Revenue offsets October 18, 2011 -28- CITYMA NAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) ~ ,~ ~,. ~ ~,.~, ., . axc•..nnc ~-•~ ,_.. Yfv « ~ .y~_ .cco.u.a ., ~ ~`' w uv ~ BF KU~ ~ `R~, ~ ~ i i" ~ i~r_1 it~in , ~a LAi~ - i ~ o .no { ..BFI I ~ rt' ker'^ ~ + v~ .... 91i ~ A 11 trntl~ l"a ~\ J1~1~~ t l~~l fQfy' L~YII ~+'~~li- .~Ht he.y ~ ~._ . ;,~.K};•.^~ ;~~, sores rriwo;o ~ . i H ` ` _ ~~---/~ ~~ f s1 4]xtr ~ . nle! ."~ xdl s - p~ cat L xXiH . ,,, cc rf ~~~.,iw~ ' _u mo ~,~ •} ~~, fi ~ a ~ ,~ sn ~tvt~*~~ cwt. '~„ I U[15NItk VF1t4t9 ~ n w rse~y, ~~ h ~;~e~i~eN §xi;rryLL ~~~ . .f »... x~ y ear~v.;. .~ .- tttt Ne~ri~ ~ ,*,,,Solid Waste Facilities and lnformatian ' ~z 'B '` Hampton Roads Region ~• ~ ~+n=n~i ~~ Out-of-Region Disposal (B Scenarios) ......__.... ......__ _ ............. October 18, 2011 -29- CITY MANAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) Recommendations • Future Regional Authority • Governance • System funding • WTE • Regional Landfill • Host fee considerations • Yard waste management • Recycling • Implementation schedule Key Findings • Significance of ash disposal • Transfer station operation and ownership • Role of private sector - Collection - Disposal - Recycling • Yard waste management • Projected tip fees 30 October 18, 2011 -30- CITYMANAGER `S BRIEFING 2018 AND BEYOND STUDY (Continued) .. Daliiwrotions by msrober Ctctaber 201 Y-December 31, 2014 The sooner this dsdsion Fs made d+s communFtias on whNMr so pursuer btttar wNh rasped so SPSA staff a rnoprwtive oppronch retsntian au9 kte vloblllty of SPSA O Ot10/1f between tqw Ond 201$. Nsgotata with Wheelobralor on Jamxsry 1012•Novernber 2014 Tlds would a$ow issues drat hove terms ntsd conditions for axanding arhen daring the 4titlal arm of the contrwct. c4ntrad to bt addressed; however, the firwndal arms would ~.ely be dlffarem (aithar h)gMr a bwerj d e+xl on ~vket cor+dhions. Option: SPSA decision en December 31, 2014 exanding ,tarviw agreement with 1rVhaelnbrator. Deumbar 31,1010 Option: Sf SA CoMinuas Operating lam,ary 201$ the Tromhr Station ondlor landfill: Negotlme new user and support lonuary 201 d -August 2011 ogreements between SPSA and manbtr communit{as. Jt4mbef Berard actiats On !KW Sepamber - QeCembef 2017 ine Ond tV Ott O reenMnh Option: Member Communities Own Jo~wary 1018 arsd O raa and Transfer Stations Euabtith legal bask for sate o! Jorxtory 1011 - Dettmk»r 20T 4 asap. tJe adore sak rise !snorer 201 S -December 2016 Effect sole std facilities ord Jonuory 2017 - December 1017 ui nt Hire staff std train scoff, and July - December 2017 asrobiksh operation aid malmenance s slams Estoblbh inter-bcol O reemems lanuar 2017 - December 2017 Esioblhhrolas lam+or 201$ Schedule • Final report submitted -October 10, 2011 • Regional meetings -October/November 2011 • Other deliberations - To Be Determined October 18, 2011 -31- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT S: 00 P.M. Deputy City Manager Dave Hansen presented the Recommendations for Funding Transfer, focusing on the Nimmo V and Laskin Road Gateway projects. Prior to an award being made, all project funds must be available, according to the City and State Agreement. Highway Construction Costs Increase PB Highway Construction Cost Index As published in Roads Bddges Magaane, September 2011 200 - - ~ Variance 180 - ~pg Highway Construction Cost Index '', 160 -~~-CPI 140 - 120 ~. .~ ~ .. ~... ~. __ ..~- 100 80 July 2002 = 100. 60 Data through August, 2011 40 20 0 -20 N M M ~' Q' Lf1 to ~O ~O O O O O O O O O O O O O O O O O n n O O O O O O O O O O O~ O O O~ O O O ~ O O ~ O ~ ~--~ O .-i ~"{ O C O N N N N N N N N N7 N N N N N ~ N N ~ N N11 N ~ ~1 ~ ~1 ~ ~1 .J.7 ? .fl ~1 ~ ~' ~ .O 31 ~ ~ 31 ~ =1 S ~1 S] ~ =1 Q Q a~ a a Q ~ Q Q ¢ a Nimmo Parkway Phase V Current Project Funding State $ 3,705,475 Federal $12,024,333 City ATD $ 42,151,119 Citv FY13 $ 5.907,097 $ 63,788,024 Total Project Cost ROW $ 4,678,400 PUA $ 3,108,620 cation Bid O enin : Se tember 28th Construction 5 54,620.000 $ 62,407,020 i Construction cost of $54.6M includes: $44.SM base bid, $4.SM CEI costs by VDOT, $4.SM contingency, $820K for street lighting and landscaping - Approximately $1.4M as yet uncommitted Y PUA bid opening at the end of October October 18, 2011 -32- CITYMANAGER'S BRIEFING LASKINROAD GATEWAYand NIMMO PROJECT (Continued) The $5.9-Million in the FY13 Budget needs to be applied to the FY12 Budget to execute this agreement to ensure that VDOT signs the contract and moves forward with the award. With City Council approval, $10.9 Million has been appropriated for Centerville Turnpike Interim Improvements scheduled for FY14 and moved into the FY12 Budget due to the full allocation of funds for the Centerville project not being needed in the current year. Recommendation for Funding Transfer Execution of City/State Agreement requires that all the project funds be available before the award can be made. Nimmo Phase V has $5.9M in the FY13 CIP but needs it programmed into FY12 in order to execute agreement. r Centerville Turnpike Interim Improvements has $10.9M appropriated in FY12 but does not need all funds this year because construction is scheduled for early FY14. a Recommend transferring $5.9M from Centerville to Nimmo in FY12 & returning the $5.9M to Centerville in the FY13 CIP. ^ Nimmo construction contract awarded in FY12 ^ Centerville schedule remains unaffected (Adv in July 3013) March 1, 2011 Budget Brief to City Council Laskin Road Gateway -CIP 2-143 • Component of the Resort Area SGA Plan • Improvements along segments of Laskin Road, 32"a Street, Holly Road, and Arctic Avenue • City managed project • Phases 1 and 2 complete • Phase 3 under construction, scheduled for completion December 2011 • Phase 4 at 60% ~~ , "~'~:ii...:~-,. ~ .;~~" _ , , ~ ~ ~ - _ ~r ~ design const ~ ~ ~~ l h d d ~ '~ ~~ -~ 3C 7 ' , ~' ~ ~' - '" ~~, y,re ~- ~. ' start sc e u e ~ ~ !` J ~ ~~ _ 1=~~' T . •~ ~ ,~~ for late 2011 ,~ , ,~ ~~ ~ ' ~ i~ ,~ ~ ~,, , t` ~~" r~~~ ~ "Y ~ ~~ ~~ ' # -~ . ~ - . - I '"C Total Project Cost: ~ ' ~ ~~ -~ u" ~~.,, - ~ r y~q October 18, 2011 - 33 - CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) The recommendation is to transfer $5.9-Million from Centerville to Nimmo in FY12 and return same to Centerville in the FY13 Budget. That allows the City to sign the agreement, Nimmo construction to be awarded in FY12 before December, maintains the Centerville schedule and allows the City to advertise in July 2013. The Laskin Road Gateway Phases I and II are complete, Phase III is on track for completion in December 2011. Phase IV is sixty percent (60%) complete in design and is scheduled to commence construction in late 2011 and be completed by March of 2013. The project cost is $33.2 Million. Staff recommends transferring funds available from the Roadways Program to Phase IV Phase I `~ F~~~ f ~ -f '~ ~ r~i-~ . .~ Expended P rnjrctea' Total 2000 Design S 378,749 $ 660,146 $ 0 S 660,146 281.397) 3000 SiteAcquisition $ 0 $ 0 $ 0. $ 0 -. $ 0' 4000 Private Utility $ 660,000 $ 281,326 $ 0 $ 281,326 $ 378,674 Adjustments `5000 Construction ' $ 2,677;900 $ 8,719,349 S 0 $ 8,719,349 (> S.C-al,d4u, ': Subtotal $9,660,820 $0 $9, 660,820 ($5,944,171) 9000 Contingency $320,000. $ 120,000 Total $ 3,836,649 ($5,824,171) Phase I - Ur~dergrour~d Utilities Utility Ductbank i ~- _~ . ,t~~- - ~.,, ~, ~~ .~~ ~ '~ ~'~` .~ ~. _.. __.~ I Groundwater Treatment . ~~ _ ..+~ ` =''~ Road Reconstruction' '~° .. - . _ October 18, 2011 -34- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Phase II -Traffic Improvements to Holly Road & 32"d Street New Traffic New Traffic Signal at 32na Signal at 32"a Street and Street and Pacific Ave. Holly Rd Add Dual Left Turn Lanes Signal Pole Foundation Construction Widening of Holly Road/Add Dual Lefts on Laskin Rd __ , Phase II 2000 Design 3000 Site Acquisition 4000 Private Utility Adjustments 5000 Construction 9000 Contingency Total $ 141,992 $0 $0 $ 400,000 Subtotal $ 60,000 $ 601,992 Expended Projected $ 200,424 $ 0 $ 35,500 $ 0 $2,129 $0 $ 514,419 $ 0 $ 752, 471 $ 0 Tota~ $ 200,424 {$ 58,432) $ 35,500 ($ 35,500) $ 2,129 ($2;129} $ 514,419 ($ 114,419) $ 752,472 ($ 210,480) S 60,000 ($ 150,480) u October 18, 2011 -35- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Phase III Expended Projected Total 2000 Design $ 768,166 $ 1,141,083 $ 0 $ 1,141,083 f$ 372,917 3000 Site Acquisition $ 0 $ 1,832,514 $ 0 $ 1,832,514 l$ 1,832,514) 4000 Private Utility $ 700,000 $ 599,543 $ 0 $ 599,543 $ 100,457 Adjustments 5000 Construction $ 5,140,000 $ 3,828,499 $ 0 $ 3,828,499 $ 1,311,501 Subtotal $ 7,401,639 $ 0 $ 7,401,639 ($ 793,473) 9000 Contingency $500,000 $ 500-~ Total $ 7,108,166 ($ 293,4:73) Phase III -Laskin Road Streetscape Removal of Angled Parking ~l ~! Four New Brick Paver Intersections Placement of Structural Soil to Add Wide, Decorative Enhance Tree and Shrub Growth Sidewalks and Trees r ,~ ,~ s. ~ r ~~ Underground Utilities/Acquire Add LED Pedestrian and Street Utility Easements Lighting 1' October 18, 2011 -36- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Phase IV -Modern Roundabout Construction Phase IV Timeline y 15 July design complete y 17 July advertised Phase IV `y 25 July final engineer's construction estimate - 15 Sept bid opening y 28 Sept received final design costs `r 3 Oct reed final Dominion Power relocation costs y 3 Oct completed Roadway Program review y 6 Oct briefed City Manager ~ 18 Oct workshop briefing to City Council - 25 Oct public hearing & transfer ordinance vote October 18, 2011 -37- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Phase IV Expended Projected Total 2000 Design $ 611,093 $ 818,830 $ 521,416 $ 1,340,246 ($ 729,153) 3000 Site Acquisition $ 7,250,000 $ 6,591,792 $ 1,200,000 $ 7,791,792 ($ 541,792) 4000 Private Utility $ 950,000 $ 332,596 $ 500,000 $ 832,596 $ 117,404 Adjustments SODO Construction $ 7,550,000 $ 1,377,382 $ 9,800,000 $ 11,177,382 ($ 3,627,382) Subtotal $ 9,120,600 $12,021,416 $ 21,142,016 ($ 4,7&0,923) 9000 Contingency $ 508,450 $ 1,000,000 $ 1,000,000 ($ 491,550) Total $ 16,869,543 $ 9,120,600 $13,021,416 $ 22,142,016 {$ 5,272,473). Phase III and IV Scope Increase - Papa John's Acquisition - Pinewood Bridge - Extended Box Culvert - Park and Bulkhead - Laskin Road East - Private Utility Relocation $1.4-Million $1.2-Million $1.2-Million $1.0 Million $2.3-Million $0. S-Million Laskin Gateway Funding Summary Original Engineer Estimate Total Current Appropriations Current Funds Available (as of 10/03/2011) $ 28,416,350 $ 33,200,000 $ 6,264,469 Current Cost to Complete Project Projected Costs to Complete Project Funding Needed to Award"Phase 4 $ 13,021,416 $39,956,947 $ 6,756,947 October 18, 2011 -38- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Funding Options for Laskin Gateway Phase 4 - Reduce scope of Phase IV: ^ Bulkhead: $900K of the $1M park renovation. ^ Road Revitalization East of Roundabout : $1.8M of $2.3M r Not fund or defer funding Y Staff recommendation =Transfer "Funds Available" from Roadways Program to Phase IV. Requires: ^ Lynnhaven Pkwy/International Pkwy Project -DEFERRED ^ First Colonial Rd/Virginia Beach Blvd Project -DEFERRED ^ Various Cost Participation CIP -COMMITS All Fully Funded Laskin Gateway Scope Design $ 3.34M (8.4%) Site Acquisition $ 9.66M (24.1%) Private Utility Adjustment $ 1.72M (4.3%) Construction $24.24M (60.7%) Contingency 1.OM (2.5%) $39.96M Dud bank $ 5,575,670 Water/Sewer $ 4,110,849 Stormwater $ 3,017,018 Roadway $ 10,188,577 Streetscape/Lighting $ 1,347,534 October 18, 2011 -39- CITYMANAGER'S BRIEFING LASKIN ROAD GATEWAY and NIMMO PROJECT (Continued) Summary Request City Council approval to schedule public hearings and bring forth transfer ordinances on October 25th for: y Transfer of $5.9-Million to Nimmo Parkway Phase V from Centerville Turnpike Interim Improvements ^ This swaps funding between the two projects so that Nimmo can be awarded in FV12 and Centerville can be awarded in FV13 • Centerville project funding to be restored in FY13 budget ^ This keeps both projects on schedule ^ Neither project is underfunded Transfer of $6.67-Million to Laskin Gateway from the recommended roadway programs and projects funds available as presented/amended in workshop October 18, 2011 -40- PLANNING ITEMS PENDING 5:49 P.M. Jack Whitney, Director -Planning, detailed the Planning items to be heard by City Council on November 1 and November 22, 2011. Detailed items are hereby made a part of these proceedings: November 1, 2011 The Oceanfront Inn November 22, 2011 Michael D. Sifen, Inc. Sean and Julie Cushing Mother Seton House Mary L. Kaufman Caring Transition Annecy, LLC CVB -Sections 2100 and 2102 S. L. Nusbaum Realty Company October 18, 2011 0 N O ~,'"'~~, k¢~, r , ,~ ,.,~, ,~ »v.:N .~ ' ~ T t ft ~ I j rS~; r~; j ~ ~~ ~ fJ k ~~._ ~~ t~ ~ gu b ~~. I! w 4 ro v !~ g ~~~ ~~ =~ ' i ~ ~ -g~ ~~',' ~ -,I1 ~~ ' '°r dr ~ ~ Athnlfo I - 's `a ~~ ~ ~~ TM Oca~n Front Inn -` ~{ N O N W .,, _~ `~ y d .. ?r 6 ,r~ ' ~ _ ~ W _~g~N '1' ~~ ~ ~ ; r,~:.,- v~1 i ., QQ ~ ~ ~ ~~ O ,_ ~ .h , ' ~ ~'~'. ,,^^ 1 ~ r k~~+1: //ll t{`. ~~~'t~~i~, a / ,3~ .~ :,-fir to ~`~ ~:~ r ° `.3 z.~~{~ i ~f~'lJ F y _ t 1-j mil' ' ~~''~~ i=%..=v~ ~ 3'N ~'' ^c~r.. as ~. N O 5 ( ~ ~ ~. ~ E ` ~ N ^i. 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I ~~ `_ ~~ ~. + x+y ,` ~ .~rFF p'....i `, MQ W N O rrir ~ ~J ~ a~ ~~' N I ~ \ -~ t / % i `a ~ 3~ ' \ '~ a ,~ a \ k ~ N "' - y ~ ~I N ~~ ~ o • ~ ` ~ \ 11 ! r ~ X1. t ~ z ' ~ ~ ~, ~, . m _ ~ i ,~ ~ 'a. ~_ y m -} N. ~ P /"' o' ~ . .~ i n a i '.t ~ ~ ~ ~ / .; ~ ' + O . 7 A N O -,~ ~~;~ ~~=~ . ,_,., :?2N '^r.~~Ez n~AR v'"N'S CONCE?t~nL RENO R `S L NUSBAl~1M Rralh Co i ~it~ .w...,«,~.. .~..a, ~ini: ~~~ 4 ~ a N ~: f ~ Z ~~ N ~~ ~1 A d `~ n ~I. ,., N O -41 - ADJOURNMENT Vice Mayor Louis R. Jones DECLARED the City Council Workshop ADJOURNED at 6:30 P.M. A ~ ~r/Od61~ ------JG~Y'i%cr(c -------------- ----------------- Beverly O. Hooks, CMC Chief Deputy City Clerk uth Hodges Fraser, MMC City Clerk October 18, 2011