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HomeMy WebLinkAboutMARCH 15, 2011 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAMD. SESSOMS, JR., At-Large YICEMAYOR LOUIS R. JONES, Bayside -District 4 RITA SWEEP BELLI7T0, At-Large GLENN R. DAVIS, Rose Hal! -District 3 WILLIAMR. DeSTEPH, At-Large HARRY E DIEZEL, Kempsville -District 2 ROBERT M. DYER„ Centerville -District / BARBARA M. HENLEY, PrincessAnne-District 7 JOHN E. UHRIN, Beach -District 6 ROSEMARY R'ILSON, At-Large JAMES L. WOOD, Lynnhaven -District S CITY COUNCIL APPOINTEES CITYMANAGER -JAMES K. SPORE CITYATTOR'JEY-MARK D. STILES CITYASSESSOR - JERALD D. BANAGAN CITYAUDITOR - LYNDONS. RF.A~IIAS CITY CLERK - R UTH HODGES FRASIIt, MMC CITY COUNCIL W ORKSHOP AGENDA 15 MARCH 2011 I. CITY MANAGER'S BRIEFINGS -Conference Room - A, DEBT INDICATORS Patricia Phillips, Director -Finance B. NEIGHBORHOOD DREDGING SSD PROJECTS David Hansen, Deputy City Manager C. COASTAL and BEACH PROGRAMS Phillip Roehrs, Water Resources Engineer -Public Works Catheryn Whitesell, Director -Management Services CITYHAI,I. BUILDING 2401 CDURTNOUSEDRIVE VIRGINIA BEACH, V/RG/NIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: ctycncl@vbgov.com 4:00 PM D. PLANNING ITEMS PENDING Jack Whitney, Director -Planning 1 MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 1 S, 2011 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL WORKSHOP re DEBT INDICATORS, in the City Council Conference Room, Tuesday, March I5, 2011, at 4:00 P.M. Council Members Present: Rita Sweet Bellitto, Glenn R. Davis, Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: William R. "Bill " DeSteph Barbara M. Henley [Family Vacation] [Absent due to illness] March 1 S, 2011 CITY MANAGER'S BRIEFING DEBT INDICATORS 4:00 P.M. Susan Walston, Deputy City Manager, introduced Patricia Phillips, Director of Finance, to brief City Council regarding Debt and the City's current policies. Patricia Phillips recognized Nancy L. Leavitt, the City's Debt Administrator who managed Bond sales over the past year. Mrs. Phillips advised that Debt is an essential component of the Capital Improvement Program. Nearly `half of the program is financed with Debt. The advantage of Debt is that the cost of large Capital Projects is spread over many years. Beneficiaries of the project bear the cost, in terms of some of the Debt Service. The City typically facilitates larger projects more expeditiously; thereby, the City does not have to wait until the cash accumulates. Regarding the City's Debt Statement, there are two broad types of Debt: Tax Supported Debt and Fee Supported Debt. Under the Tax Supported Debt are General Obligation Bonds, the highest form of credit the City has; full faith and credit. The City pledges to do whatever is necessary to pay the Debt Service for those bonds which carry the AAA rating. They can be referred to as Charter Bonds. Charter Bonds enable the City to authorize Ten-Million Dollars ($10-Million) per year, in addition to the amount retired in principle. In FYIO, the City retired Fifty-eight Million dollars ($58-Million) of General Obligation Bonds, enabling the City to authorize issuance of Sixty-eight Million Dollars ($68-Million) in one year. Referendum Bonds are in this category, as are Agricultural Reserve Program Bonds, which are Installment Purchase Agreements to purchase development rights. These are funded with a twenty-five year Strip Coupon Bond, and they are somewhat self-supporting. When the City incurs the obligation, it also buys the asset at the same time. Appropriation Backed Debt is subject to annual appropriation and is not full faith and credit. Lease Purchase Agreements normally fall in this category. City Council may remember using Public Facility Revenue Bonds that fall in this category, which are typically issued through the Development Authority with a support Agreement between the City and the Development Authority. Projects the City has financed with Public Facility Revenue Bonds include the Convention Center, (Sandler) Theater, Museum Parking and Open Space. The City instituted some new taxes as well. The Town Center Project, Parking Garage and Conference Center are financed with Real Estate Taxes generated from the TIF District. On General Obligation (GO) Bonds, the City pays one-twentieth of the principle each year, so it is declining and paying down quickly, which influences the City's AAA rating. The average life of this bond is approximately ten years. March 1 S, 2011 CITY MANA GER'S BRIEFING DEBT INDICATORS (Continued) Mrs. Phillips stated that the investment community and rating agencies view the City's Debt Profile as "clean and straight forward" with "no overlapping debt". The City has Direct, General Obligation, and other Debt issued on behalf of the General Operating Funds. For user-based services, such as utilities, the City-supported Revenue Bonds relieve the general property tax base carrying these infrastructure requirements. In addition, the City's Debt Capacity increases for tax-supported Debt. The City has several Debt Affordability Policies. One policy, in particular, Overall Net Debt Per Capita has an established guideline of no greater than Two Thousand Four Hundred Dollars ($2,400), and the City is currently at Two Thousand Two Hundred Thirty-five Dollars ($2,235). This debt is expected to be exceeded if the City is to expand the Capital Program. The Overall Net Debt Per Capita to Per Capita Personal Income limit is six percent (6%), and the City is currently at five percent (S%). A report prepared by Standard & Poor's, entitled.• "Criteria Methodologies ", characterizes the level of Debt the City has as "low to moderate" in comparison to other communities. To accommodate City Council priorities, such as the Headquarters Hotel, the Dome Site and Pleasure House Point, additional Debt Capacity is needed. The FY 2012 Capital Improvement Program will require additional capacity and the policy needs adjusting. Based upon City Council priorities, the analysis of Standard & Poor's AAA-rated Cities, and the advice of the City's Financial Advisor, it is recommended that the Ciry raise its Self-Imposed Debt Policy from Two Thousand Four Hundred Dollars ($2,400) to Two Thousand Eight Hundred Dollars ($2,800) per capita, which is roughly a seventeen percent (l7%) increase. The City's Financial Advisor believes "this is reasonable, conservative and consistent with the City's historical approach to Debt". Other Debt indicators remain well within the existing policy threshold. 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LL ~ I I I ~ N ~ Q LL L ~ f ~ a +~ ' ~ _- _ ~ _._ _ ... Z i ~ o ~ 0 0 0 0 0 0 0 0 O t/1 0 O 0 0 0 0 0 0 u1 O V1 O u1 O ~ ('n M N N~ ~--~ O O L O V .~ .~.J W -a U f~ N L O W U O N N a--+ fa ^~ W -~ .~ N L z O O O O O O O 00 I~ l0 I.fl V (Y1 N N N N N N N N ~~~~~~~ 4 CITY MANAGER'S BRIEFING NEIGHBORHOOD DREDGING SSD PROJECTS 4:23 P.M. Deputy City Manager David Hansen presente Serv~ a D'strict)tpro~'ectsngThe ~ p~oj~ is suppoat the Cary of the Neighborhood Dredging SSD (Special Council's goals to improve water quality, re-establish use of navigable channels, revitalize neighborhoods and plan for the future. Of the neighborhoods currently involved, nine (9) are in the Lynnhaven Watershed; one (1) in the Broad Bay Area, four (4) in the Eastern Branch of Lynnhaven and four (4) operating in the Western Branch. Two (2) additional neighborhoods requesting involvement are in the Rudee Inlet Area. Dredged material will be transferred fi^om eitheermaterial amuat be tra~sporaed tolther Whitehurst Dredged transfer sites within project neighborhoods. Th Material Placement Area. The Implementation Schedule Chart reveals the multi-step process. The funding process requires the SSD to be i YlP lahbo hoods toa ontributeotoothe SSD and ~f allow~a the This establishes "goodwill' on behalf of the g City the time necessary to complete the engine ~~ rg mbumseme~t fromcthe SSD due w'thinnsixteen (16) dredging is underwritten by the General Fund years. Next Steps include drafting of an Annual Services Consulting Contract, advertising in April, and awarding the contract by the first of July.ilman USD Ordinance is expected to be presented by Vice- Mayor Jones, Councilman Wood and Counc March 1 S, 2011 vt c .~ d L L 0 .~ r~_ ~ j !° 1 ~ ~ ,, ~._ . . ~ ~ t ~_~ ~ ~, l~l~ ~ ~ ~ t ~~ ~.. ` ~ ~ /`~){ ~ ~ . n ~ ~ ~ ~ \/ '` 1~ S 6 ~ V m U1 !r t N v V ~/ !. 0 ,. s! f.t ~.. {j ~ ~`r 1~,. - n. 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L a~ c~ ~. a~ a~ U CCS ~_ 0 0 .~ ~_ ~ ~ C6 ~ -- ._ ~ ~ ~ ~- W C? .~, o ~ U ~ 'o o ~ c~ ~ ~ ~ ~ -~ ~ '> OC .- -~ c~ ~ .~-~ - ~ U ~ ~ o ~ ~~= ~ ~ o W U ~~~a.~ <~4y • • n} _= ~ q i S CITY MANAGER'S BRIEFING COASTAL and BEACH PROGRAMS 4:48 P.M. Phillip Roehrs, Public Works Water Resources Engineer, provided an overview of the Coastal and Beach Programs. The two types of projects are cost shared with the Federal Government and City funded. The Western Branch dredging projects are moving forward. However, due to funding reductions, the Eastern Branch dredging projects are defunded. Of the City funded projects, the Beach Profile Monitoring Program encompasses an annual monitoring of portions of the City's coastline and surveying the outlying beaches of Croatan, Cape Henry, Ocean Park and Chesapeake Beach. The Resort Beach and Sandbridge Beach monitoring is funded within the project. The City funded program, entitled Various Minor Dredging Projects, involves dredging of Crab Creek yearly and Long Creek every four years. The Western Branch Lynnhaven River Maintenance Dredging Project is moving forward with permitting this month. The Rudee Inlet Outer Channel Maintenance Dredging Project involves a two year dredging cycle to address a repetitive shoaling problem in the mouth of the Inlet. As an aside, Mr. Roehrs noted the City owns and operates a dredge with twenty-one (21) full-time employees, funded at approximately One "point" Six Million dollars ($1.6-Million) per year. The Federal Participation Projects include the Rudee Inlet Federal Dredging Project, an every-other- year contract event, which utilizes the Corps of Engineers' equipment four times a year to conduct spot shoal removal. If this project becomes City funded, the total project cost would increase to Two `point" Three Million Dollars ($2.3 million) per year. The Lynnhaven Inlet Maintenance Dredging Project is along-standing endeavor with the Corps of Engineers dredging since 1965, and this project maintains a three year cycle. Baltimore and Norfolk harbor Pilots are housed in the Lynnhaven Inlet, providing a "safety net" to the City in terms of continued federal funding. If it becomes a City funded project, the total cost is just under a Million Dollars annually. The Sandbridge Beach Restoration Project is a long-term federal three year cyclic maintenance and sand replenishment program. This is a financially sound project with an established Special Service District (SSD) and Tax Increment Financing (TIF). According to Legal Staff of the Corps of Engineers, the Corps cannot accept City funding and perform the project. The process of "taking up where the Corps left off" is at hand currently. Finally, the Sandbridge Beach Access Improvements and Sand Management Project entails improving fifty four (54) beach accesses over five (S) miles of Beachfront. The Special Service District (SSD) provides Two-Hundred-Fifty Thousand Dollars ($250,000) per year to construct three to five access improvements annually. The Water Resources Development Act (WRDA) is the authorizing legislation for this project. The Main Resort Beach Replenishment project is a three-year cyclic program to replenish and maintain the Resort Beach from Rudee Inlet to 89`x' Street. Twice a year, the Resort Beach is surveyed in detail. The cost estimate for 2011 to the City is Five `point" Six Million Dollars ($5.6-Million). March I5, 2011 6 CITY MANAGER'S BRIEFING COASTAL and BEACH PROGRAMS (Continued) Deputy City Manager David Hansen discussed the Resort Beach Alternatives, ranging from taking no action to creating a Special Service District. The project goal is to build a surplus to allow erosion at acceptable levels. One option for creating a Special Service District divides the Resort Beach into two Districts: The South District and the North District. The South District would include the area from Rudee Loop to 57`'' Street, as well as the first row of properties on the west side of Pacific Avenue. The North District would include the area from 57`'' Street to 89th Street and the one hundred (100) blocks on the West side of Atlantic Avenue. Catheryn Whitesell, Director of Management Services, clarified the definition of a Special Service District and explained how the successful Sandbridge model could be applied to address the concerns in the Resort Beach Area. The Hampton Roads Coastal Resources Technical Assistance Program Fiscal Year 2009-2010 is hereby made a part of the record. 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"~'. {~ .~ ~ cv = o = cv .~ ..._ „_,_ _ ~ ~ _. ~~~ ~ ~ o ~ c~nv.o o.Q ~_o o`no 0 t~ ~- . , ~ __ ~ _ _ _ _ o -~ r ~ ~ -^ - ~ ~ - ///~~~ 4 / - o o ~t o ~t a ~. ~ ..: E" r!R /V~wf ~ ~ ~ _ _ o ~ _ o ~ c :~ ~ ~ ~ ~' ~ ~ ~ - ~ ~ ~ ~ ~ ; ~ ~} ~ ~i1S ` ~ ~ ~ ~ ~ ~ ~ Z Q j,~ r ,a .h ~ ~ .yrs. ~" , ~ ~ ,. j. v, Irl `4: } : i. 'f ~ ,. i.w~` ~~ p ~. w ;' t .~.,. ~~ . ~:.~is_. i~ A.. r V ~' r f ~f ~'"`` ~. ~..tA ~ ,;",,~ .. ~u t xyr`~. y 4 ~; .p N3 c. cr,~r t'~-.~ ~~'~jb~trcia~`F~''i e~,~a~~~.~i yV CITY MANAGER'S BRIEFING PLANNING ITEMS PENDING 5:32 P.M. Jack Whitney, Director of Planning, detailed the Planning Items to be heard by the City Council on April 12 and April 26, 2011. Detailed items are hereby made a part of these proceedings: April 12, 2011 7-Eleven, Inc. Stain Studios, LLC Crab Pot Seafood Resort Management Office Darshak Patel Buddhist Education Center Greyhound Lines, Inc. April 26, 2011 Madison Landing, LLC Herbert S. McCoy Travis and Ann Fox CVB-Indoor Recreational CVB-Bikeways and Trails Plan S.S.K. Hospitality, LLC Brett Vet Clinic (Requested to be expedited from April PC) HIC, LLC (requested to be expedited from April PC) March I5, 2011 3/ 15/2011 _~ ... :_ ~ ` -.;. .- F.. ~., ~. { '~ ~.~~n. ,~~ ~ iy~`~ ~,. p, ,- r ~ ~.~ r ~:..+ ~, Nib` ._ PLANhIING ITEh~S~. - "'s~~,f'` ~'°. APRIL 2011 ~~G ~ ~' ~ ' ~ ~' ~'"' ~~:'~i~u u~we 3/15/2011 ~ _ i~ ~ -.ti ~ f y _ .} _. C ~_ _.__ ,,;,Stain SEudios, tt.C , :>_ 3/15/2011 Crab RutSeafoot t/a=Yl-icker's Grab"P.ot 3/15/2011 ~._ Q.- - ;-. - a. '1 -z t--+r {~ z ~ ~,r_ ~, '.-d ~ ~ F#j 1, e ~ ~ i t ~' rx I~ ~h~ E ~ .~ Y . ~ ~ ,i1 ~ 3 -wr ~r o `~ ~ t_ ~ ~ ~ ~ ~' ~x M i ~r, r ~_ ~ r ~~~~ ~ ` ~ , ,~ r ~~. y~y > ,. ~ ~.~ i_ \ 11 \~.. ~; ^_ `, ~ _' :__ ~ ~ ~-- -, ~ ~ ,. _ 3/15/2011 --._=may =~ = - -- ~'i ~-:I16~~ ~+ „___ lY ~ ~~ ~,~~ ~ _ ~;:.a _~~-. - iFS ~... ~._ - - ~ _..e.. 3/1 ~-/2011 ._ - -- ~~--~. _.. 1 . i ~~-T- ffiti'7 F..CV.'f~oN - cVUC'o' UMJW'eNCf K~ ~ 406 si.EM'~sH 4 ~ + . , ~' ~ s.. ~.II';, 1,.E \ ~~i ~. k`4F. ,: { ~ ~! ` _ F -' - ~Darshak Patel (Daveri LcC.C.)iNlabel B~~ck- 3/1'5/2011 ti J ~ ~~tr" _ _ ~I_ /~° _ p l ;~ ( _ _.. .. 51q -,,~(~ ~ ..... - ..... e, ... ~ Y _~ . '~ c ~ i_ _'_ Y ~ ~~~ ~ Tom; ._.-.Z ~~~~~ Beddbis~ Edu~~~]~~~1~,,~ian Center of Ame 'on 4 R"nNa F(u`nn Te mDie, lu.,• "~ _ ~ ~ r ~ t F` ~ i ..~ -~, .. 4 is ~ r'`+ . ((}~ i I ~; i~ ~ 5n~a i ,u ~t it r . ._ ,~ _ 3- ~t.SY~u4 ~._.,- Budtlblst,Education~C~i ter of;America "`=~ '`U~~n~-ItLng Te ple InG ~~"%~ i 7 _I, ~~ L ' ftT4 RT] r -%i dltj~ ~i~ --,w+'.w : 2 . B2}. Att .1 ~: ism. ,,,,t,,,,, 0 i . a~ Bz , 2, ~ ' ata _ ~~ 82 .i er 1 . euaai.i5t Fed Dong nwdnuo. _y ORFAT COMPPS]NJN NALL 3/15/2011 ~ ~~ tom' ____ I '_ _... s a ! ~ °- s ~~-- m,~. 3/ 15/201 ~ Mad~son~landitng ~ ~~ ~- ' i -- k _ ~ .. ~.... {{L ,t ~ ~ Sl ~ Jf } - ' i i ....m.... a... ~....-,-.~ _ ... d '.....s...r sao s _ ... __ __. roc- ""' ':: ~; Madison Landing;-ttG •- b5ndison 3/15/2011 az -- L ~ R~4, _,~~~ 1!~ a7Si Jeff ~ i D§ ~ _t I I ~ y. ~~ AP~1 r ~~ ° n~ ! i ~ -:: ~APZ I -~ i 1 i ~ ft5D. ~ IR~D ~ '~I I V ~ s~wia~.,N V.v... 3/15/2011 N/ ~~-{r ~~. ,w~ , ~ ~ t6,;. ~.. ~I ii ; , ~Y, Travis &~Anne Fox 3/15; 2011 3/15/2011 S.S.K. liutpit;ilit c, LLC J~ 1t1~ Ir~Y `~T, ~1~~' Ri'Y qTa~ ,,i' n ~ _ ~~~ - ~ .5~~, ~ca L ~~ ~ ~ ~ k5. - wb lr ~ \ do 1 Nte wpg0.Y Yy44~ li v - - -aT.re~.na ~ t \1~11]~-Y-t~+1 .~..- Yi e ~~ ..~~~ j m ....... ~.. `,M1B1[,4 ftgYR ~~. tole mvuit a< vlwiF •YSUM~ Y4ur1'J1 p YttR w. N YNYN OY •1u1~ p YAK pYDIC1YtvY Y~Y v1Yel~ ~~ Y~01Y11 3/15;2011 ____ __ -- #, ! ~ °~ I ___ ._i _ _ -- _ ~~ ~_ .s.~ ~~ 3/15/2011 ADJOURNMENT Mayor William D. Sessoms, Jr. DECLARED the City Council Meeting ADJOURNED at S: SO P.M. Beverly .Hooks, CMC Chief Deputy City Clerk R th Hodges Fraser, MMC -City Clerk March 15, 2011