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HomeMy WebLinkAboutMARCH 2, 2012 WORKSHOP MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAM D. SESSOMS, JR., At -Large VICE MAYOR LOUIS R. JONES, Bayside - District 4 RI7A SWEET BELLI170, At -Large GLENN R. DAVIS, Rose Hall - District 3 WILLIAM R. DeSTEPH, At -Large HARRY E. DIEZEL, Kempsville - District 2 ROBERT M DYER„ Centerville - District 1 BARBARA M. HENLEY, Princess Anne - District 7 JOHN E. UHRIN, Beach - District 6 ROSEMARY WILSON, At -Large JAMES L. WOOD, Lvnnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - JAMES K. SPORE CITY ATTORNEY - MARK D. S77LES CITY ASSESSOR - JERALD BANAGAN (777 AUDITOR- LYNDONS. REMIAS CITY CLERK- RUTH HODGES ERASER, MMC CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E- MAIL: ctycncl@vbgov.com CITY COUNCIL WORKSHOP AGENDA 2 MARCH 2010 I. CITY COUNCIL BRIEFING -Conference Room - A. VISION HAMPTON ROADS Dana Dickens, Executive Director, Hampton Roads Partnership II. CITY MANAGER'S BRIEFINGS 4:00 PM A. GROMMET ISLAND PARK and ANTICIPATION STATUE Brian Solis, Planning, Design and Development Administrator — Parks and Recreation B. RESORT WATERSLIDE Mike Eason, Resort Administrator C. FAA RADAR ISSUES Steve Herbert, Deputy City Manager I -1- MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 2, 2010 Vice Mayor Louis R. Jones called to order the City Council Briefing re VISION HAMPTON ROADS in the City Council Conference Room, City Hall, on Tuesday, March 2, 2010, at 4:00 P.M. Council Members Present: Rita Sweet Bellitto, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: Mayor William D. Sessoms, Jr. [Family Vacation.] Glenn R. Davis William R. "Bill" DeSteph [Family Vacation.] March 2, 2010 I -2- CITY COUNCIL ITEMS Vice Mayor Jones referenced an additional date to the Budget Workshop Schedule: March 30, 2010 (4:00 P.M. — 10:00 P.M.) Vice Mayor Jones advised an additional briefing has been added to today's (March 2, 2010Agenda): General Assembly Budget Update- Catheryn Whitesell — Director, Management Services March 2, 2010 I -3- CITY COUNCIL BRIEFING VISION HAMPTON ROADS 4:00 P.M. Vice Mayor Jones introduced Dana Dickens, Executive Director — Hampton Roads Partnership. Dana Dickens expressed appreciation to the City Council for their participation in Regional activities. Last Spring, Mr. Andrews emphasized the GOAL of Vision Hampton Roads: With proper foresight, continuous planning and dynamic economic development, Hampton Roads will be recognized as a region fueled by Invocation, Intellectual and Human Capital, Infrastructure and a Sense of Place. Vision Hampton Roads is: A roadmap of strategies and actions — a regional economic plan — that will position Hampton Roads as a leader in the global economy. The Vision experience is creating regional transformation, engaging citizens, embracing ongoing region -wide economic development practices and embedding a working process in all that we do — thinking, loving and action regionally. A strategic planning tool intended to aid local governments in regional economic development decision-making. The Vision process provides an analysis of regional and local economic conditions and identifies projects, programs and initiatives that will address economic development in Hampton Roads. Vision is a living, not static, document The region's approach to access federal monies via the United States Department of Commerce Economic Development Administration 's Comprehensive Economic Development Strategy (CEDS) process. The Vision approach focuses on three (3) main pillars of the current Hampton Roads economy — The Port, Tourism and Federal/Military. By analyzing opportunities to diversify the regional economy, we better identify assets in place, determine how we are doing and idents areas for improvement on a regional -wide basis. Vision Hampton Roads identified broad themes which emerged in nearly every discussion. These themes were consistent with findings of the Brookings Institute 's Blueprint for American Prosperity. The bais premise of the Blueprint is that economic development occurs without regard to jurisdictional boundaries, but on a regional level, and big demographic economic and environmental forces rewrite the rules that drive prosperity within regions. Regions where these forces come together are rewarded. Vision Hampton Roads focuses on these assets in accordance with the Brookings Institute: Innovation — new products, processes and business models (our "Innovation Economy ") Intellectual and Human Capital — education and furthers innovation (our "21s` Century Education') Infrastructure — telecommunications, energy distribution, etc. (our `Adequate Transportation') Sense of Place — special mix of distinctive, aware communities (our "Regional Awareness') March 2, 2010 I -4- CITY COUNCIL BRIEFING VISION HAMPTON ROADS (Continued) Next Step: Implementation: The "Tactical Component" of Vision focuses on specific actions deemed to have the greatest short term impact of maintaining, growing our regional economy and nurturing those regional assets that have the most realistic chance of diversifying our economy. Vision implementation will be driven by Task Forces led by a specific regional organization working in that arena. As we move forward with the region's Vision, we build upon, align and leverage regional activities and initiatives already underway to provide both leadership and support. March 2, 2010 -5- CITY MANAGER'S BRIEFING GROMMET ISLAND PARK 4:25 P.M. Brian Solis, Planning, Design and Development Administrator — Parks and Recreation, Josh Thompson was diagnosed with amyotrophic lateral sclerosis (ALS or Lou Gehring's Disease) in late 2006. The national ALS Association and local organizers of the JT Walk have agreed that 100% of sponsor donations and 50% offunds raised by the walk will be used toward the construction ofa JT's Grommet Island. JT's Grommet Island Beach Park and Playground was born when Josh Thompson's family wanted to go to the beach, but he stayed behind because of the difficulty of getting his wheelchair to the beach, across the sand and down to the surf. Bruce Thompson, Josh 's dad, took the idea ofa 100% handicap accessible oceanfront park to the City of Virginia Beach where it was embraced with enthusiasm. The park is roughly 15,000 square feet of playground located between ft and 2"d Streets on Atlantic Avenue Ocean Boardwalk. The Playground will front directly on the sand overlooking the popular surf spot of the ECSC. It will be only one of its kind in the region. Amenities will include beachcombers, surf cams, and a cutting —edge play structure, integrating children of all ages and every ability level to play and imagine. John Uhrin recommended RAC and City Council endorse this handicap accessible playground concept. Grommet Island Park and Anticipation Statue Timeline and Milestones • Fundraising for ALS research and Grommet Island Park throughout 2009 • August 6, 2009 - Resort Advisory Commission — Approval of park concept plan and location — (Planning and Design Review Subcommittee later unanimously approved as well) • August 20, 2009 - Mayor's Committee for Persons with Disabilities Briefing/Endorsement • August 25, 2009 - City Council Briefing • October 4, 2009 - JT Walk 2009 and Park Ceremonial Groundbreaking • Dec. 2009 — February 2010 - Plans and legal agreements for construction/dedication park/statue to City • February 26, 2009 — Construction site plans approved by Planning/DSC. • March 9, 2010 — City Council approval of agreements for construction of Grommet Island Park and dedication of Anticipation Statue March 2010 — Construction begins May 2010 — Park Ribbon -cutting and Open to the Public/Statue Dedication March 2, 2010 -6 - CITY MANAGER'S BRIEFING GROMMET ISLAND PARK (Continued) SITE ELEMENTS PLAY EQUIPMENT SITE ELEMENTS ACCESSIBLE BEACH SEATING March 2, 2010 I -7- CITY MANAGER'S BRIEFING GROMMET ISLAND PARK (Continued) City and Virginia Gentlemen Agreement • Parties: City of Virginia Beach ("City') and Virginia Gentlemen Foundation, Inc. 501(c) 3 Non -Profit Corporation ("VGF') • Purpose: To memorialize the rights and responsibilities of each party with respect to Grommet Island Park and its location on City property Term: Agreement commences upon execution and continues until the dedication and acceptance of Grommet Park Agreement: City of Virginia Beach (CVB) and Virginia Gentlemen Virginia Gentlemen Foundation (VGF's) Responsibilities: • Cause design plans to be prepared for Grommet Park • Obtain all permits necessary to construct Grommet Park • Complete construction of Grommet Park in good and workman -like fashion • Responsible for all construction costs related to Grommet Park • Dedicate Grommet Park to the City • Secure and maintain insurance during construction phase City's Responsibilities: • No responsibility for construction costs related to the Grommet Park • Provide written acceptance of Grommet Park (dedication) • Maintenance and upkeep provided by City after acceptance Other Terms: • Replacement: No obligation for either party to replace or rebuild Grommet Park in event of fire, flood, earthquake, hurricane, etc. destroys Grommet Park • City has sole discretion to relocate Grommet Park, at City's expense • Indemnification- Virginia Gentlemen Foundation (VGF) to indemnf and hold City harmless • Modification: MOA may only be modified by writing, executed by both parties March 2, 2010 -8- CITY MANAGER'S BRIEFING GROMMET ISLAND PARK (Continued) • Donated by Virginia Gentlemen Foundation • Resolution accepting donation of public art (Statue) March 9, 2010 Council Agenda • Anticipation Statue has been reviewed and approved by the City Arts and Humanities Commission's Public Art Committee • Specialty maintenance addressed by annual donation from Virginia Gentlemen Foundation • Installation Spring 2010 City Council Action March 9, 2010 • Resolution to authorize the City Manager to enter into agreements for Grommet Island Park and Anticipation Statue • Summary of Terms provided for March 9, 2010, City Council meeting • Exhibits included for location and construction details for Grommet Island Park and Anticipation Statue March 2, 2010 -9- CITY MANAGER'S BRIEFING RESORT WATERSLIDE FRANCHISE 4:40 P.M. Mike Eason — Resort Administrator, displayed an example of one slide manufacture product called a Hippo. This is a large "slip and slide" which many may remember having as young children (48' wide 168' long 35' high). This slide was inflated in fifteen to twenty minutes (15-20) by two (2) fans as displayed. This slide is located in Saint Pete Beach, Florida Resort Waterslide Franchise Saint Pete Beach, Florida Locations of Existing Waterslides • The City of North Myrtle Beach, South Carolina • Trade Winds Resort, Saint Pete Beach, Florida • Lakewood Camping Resort, Myrtle Beach, South Carolina • City of Saint Petersburg (Treasure Island Beach, Florida) • Daytona Beach, Florida • Clearwater Beach, Florida • Fort Myers Beach, Florida Finding the proper location which does not obstruct a view of the ocean is very important. Four (4) locations in the Resort Area were evaluated and Staff recommended this site adjacent to the Twenty-fourth Street (24th St.) Park. March 2, 2010 -10- CITY MANAGER'S BRIEFING RESORT WATERSLIDE FRANCHISE (Continued) Resort Waterslide Franchise Location p 0 \......... 41.1 tree Pat k Waterslide Review Process • Introduced to Resort Advisory Commission (RAC) for consideration Spring 2009 • Alternative locations considered • Review and approval (Fall 2009) by - RAC Full Committee - RAC Planning and Design Review - Virginia Beach Hotel/Motel Association - Adjacent Property Owners Waterslide Operating Criteria • Operators shall open daily May 29 to September 6 from 9:00 AM to 7:00 PM • Operators, at their discretion, may open May 1-28 and September 7 -October 1 from 9:00 AM to 7::00 PM • Waterslide will be deflated, folded and stored each evening • Operator will reimburse City for all utilities • Waterslide employees must wear uniforms • Operator will provide City with $2 -Million liability issuance March 2, 2010 CITY MANAGER'S BRIEFING RESORT WATERSLIDE FRANCHISE (Continued) Operator Selection Process • Operator will be selected thru an Invitation for Bid (IFB) procurement process based on: - Experience - Business Plan - Franchise Fee • A minimum bid amount will be established, based on projected income • Three Operators have expressed interest in bidding on the Franchise • Award of Franchise will require City Council action at a later date March 2, 2010 - 12 - CITY MANAGER'S BRIEFING FAA RADAR ISSUES 4:47 P.M. Steve Herbert, Deputy City Manager, provided an update relative the Federal Aviation Authority (FAA) Radar issues. S +er 2009 - Washington meeting Cc gr ©nal staff, FAA, HomelandSec USAF, and NORAD (presented City qui March 2, 2010 I - 13 - CITY MANAGER'S BRIEFING FAA RADAR ISSUES Staff Work • March 2009 — Mayor Sessoms and BobMatthias met with Senators Warner and Webb and Congressman Nye to ask for assistance with the FAA ■ July 2009 — Mayor Sessoms, Jim Spore, Steve Herbert meet with Senators Webb and Warner and congressman Nye to update FAA matter ■ September 2009 — Congressional Delegation, FAA DHS, OSD, USAF, NORAD and Navy meet in Washington to receive City Brief and receive reports from FAA and USAF ■ October 2009 — City Council Briefing on expected outcomes of meeting November 2009 — Conference call with Congressional Staff to report on Colorado meeting with NORAD January 2010 — City receives unsolicited proposals to study radar performance at Resort and offshore ❖ Analyze radar "shadows" caused by existing buildings ❖ Model radar "shadows" resulting from relocating or augmenting (gap filler) existing radar ❖ Analyze effect of offshore wind turbines February 2010 — Mayor Sessoms' letter to Congressional Delegation suggesting a meeting with Assistant Secretary of Defense Stockton and assistance with Mobile Enroute Radar Facility (MERF) gap filler radar question March 2, 2010 -14- Next Steps ■ Complete review of unsolicited proposals for Radar Study ■ Meet with ASD Stockton and FAA/USAF representatives ■ Develop potential mitigation model or "gap filler" radar test scenario to discuss with OSD/FAA/USAF Letter from Mayor William D. Sessoms, Jr. to Senator Mark Warner, Senator Jim Webb and Congressman Glenn Nye expressing appreciation for assistance with the FAA radar issue in Virginia Beach and the building height limits that have been imposed as a result of its operation. March 2, 2010 W 4L.AM D. SESSCMS. JR. MAYOR February 26, 2010 C ity c f Virginia 13 Honorable Senator Mark Warner U.S. Senate 459A Russell Senate Office Building Washington, DC 20510 Honorable Congressman Glenn Nye 116 Cannon House Office Building Washington, DC 20515 Dear Honorable Senators and Congressman: Honorable Senator Jim Webb U.S. Senate 144 Russell Senate Office Building Washington, DC 20510 RE: Federal Aviation Authority (FAA) ARSR-4 Radar + Itg.w.com ,ALNIC:PAL CENTER BUILDING 1 :401 COURTHOUSE 0RIVE V',RGINIA BEACH. VA 23456-9001 757) 385-4581 FAX (757) 426-5699 NSESSCMSOVBGOV.COM Thank you for the work you and your staff have done dealing with the FAA radar in Virginia Beach and the building height limits that have been imposed as a result of its operation. During the last year you requested the Secretary of Defense to appoint a single point of contact to deal with the many federal agencies involved in mitigating this radar issue. On February 24 we received notification from your staff that Paul N. Stockton, Assistant Secretary of Defense, has been appointed as the single point of contact. We are hopeful that with the appointment of Secretary Stockton we will be able to renew our collective efforts to deal with the FAA imposed height limit as well as the emerging issue of wind energy development off the coast of Virginia Beach. I look forward to meeting with Secretary Stockton in the near future and will appreciate your office's continued support in helping to arrange a time for that meeting. On a related matter, we have learned that the FAA has a Mobile Enroute Radar Facility (MERF) which is an ARSR-2 or ARSR-3 radar that does not have full ARSR-4 capability but may be used to supplement the surveillance coverage of the FAA ARSR-4 in Virginia Beach. We also understand that Raytheon Corporation, the radar manufacturer, has the capability to upgrade or modify the MERF to supplement the Virginia Beach ARSR-4 radar. We would request that the FAA review and comment on this information and, if the information is correct, provide an outline of actions that would be undertaken to use a MERF as a test radar at Fort Story, Cape Charles, or other government owned property in the area. The purpose of the test would be to determine if low altitude radar coverage can be provided in the "screened areas" or gaps created by the existing buildings along the Virginia Beach oceanfront. We believe those gaps or "screened areas" were identified by the United States Air Force (84 RADES) in a study Honorable Senators Warner and Webb and Congressman Nye Federal Aviation Authority (FAA) ARSR-4 Radar February 26, 2010 Page 2 completed in late 2009. Your staff has requested copies of this study. It is also possible that this radar test could be used to assess the impact of proposed wind farm development 12 to 25 miles off the Virginia Beach coast. We believe this matter could serve as an early agenda item for Secretary Stockton. On a final note, we learned through your staff that the Department of Homeland Security (DHS), Science and Technology Directorate, Special Programs Division issued a Request for Proposal (RFP) for a study of "the design, development, verification, validation, and implementation of a comprehensive system to accurately model the effects that wind turbines have on radars." Proposals were due on January 5, 2010. We would request that Secretary Stockton be made aware of this study and that the FAA be involved, particularly as the requirements apply to the situation in Virginia Beach. We have forwarded a copy of the RFP (BAA 10-03) to your staff with specific reference to the RFP requirements "to model overlapping radars and assess cumulative impacts to probability of detection and C2 system track performance." Thank you again for your assistance with this matter. Your staffs have worked as a team and we continue to appreciate their professional approach to this complex and difficult issue. Because resolution of this matter is so important to Virginia Beach and our Commonwealth, I look forward to personally visiting with you in the near future to review our progress and seek your guidance on a way forward. Please do not hesitate to contact me if I can provide anything further. Sincerely, William D. Sessoms, Jr. Mayor WDS/RRM/amg c: Gordon Peterson, Office of Senator Jim Webb Juliet Beyler, Office of Senator Jim Webb Jeanne Evans, Office of Senator Jim Webb Mark Bruner, Office of Senator Mark Warner Andreas Mueller, Office of Congressman Glenn Nye Virginia Beach City Council Members James Spore, City Manager Mark Stiles, City Attorney Estimate of State Budget Impacts (As of March 2, 2010) Governor McDonnell House Budget Senate Budget Original budget eliminated the State reimbursement for Car Tax Reduced "599" funding (Aid to Law Enforcement) Breaking the commitment to localities to not divert Telecommunications Revenue that the State collects on the Cities' behalf. City-wide Impacts Full funding restored No further reduction Not included Additional $50 million reduction in -$2.2 million Aid to Localities City reduction in VRS Life Insurance Rate Sheriff — the original budget reduced funding by 11.8% total reduction was $1.4 million $700,000 Full funding restored Full funding restored Further reduces funding Increases funding by by -$690,000 $650,000 To reduce the cut to the Unclear Commissioner and Treasurer's Offices (see below) the House proposes a diversion of the local Va. Telecommunications Tax collected by the State. Additional lost revenue to City & Schools is $1.3 million. No adjustment $700,000 Department Specific Impacts Reduced budget an Increases funding to additional -$2,500,000 allow for only a 1.6% reduction. Reduced by 16.5% reimbursement Unclear for Commonwealth's Attorney Office. Initial reduction was estimated to be $641,000 Reduced funding for the Clerk of Unclear the Circuit Court. Kaine's budget reduced funding by $257,000. Restores $533,000 in funding Unclear -$2:2 million $700,000 Increases funding by allowing increased fees. Senate restores the rates. Restores $464,000 in funding. Increases funding by allowing increased reliance on fees. Unclear 1 Governor McDonnell House Budget Senate Budget Eliminated reimbursement for Treasurer & Commissioner's Offices other than for the elected Officer. Total reduction was $1.3 million. Eliminated State reimbursement for VRS payments for all employees of the Constitutional Offices. All Constitutional Offices Human Services - Furlough state employees for up to 5 days in FY 2011 and an additional 5 days in FY 2012 and capture the equivalent of 5 furlough days from State supported local employees. 1% Reduction in Social Service administrative funds Unclear Unclear 5 furlough days for state supported employees. -$120,016 -$89,550 Reduce the non -Medicaid general -$404,654 fund appropriation for the Comprehensive Services Act by 5%. The additional reduction will require language that caps State reimbursement for services at the appropriation level. Human Services - increases the reduction included in the introduced budget for local Departments of Social Services by eliminating the remaining State support for other purchased services. -$22,250 Restores $1 million in Restores $1.2 million funding. To reduce the funding. cut the House proposes a diversion of the local Va. Telecommunications Tax collected by the State. Additional lost revenue to City & Schools is $1.3 million. Restores State funding. Restores State funding. Eliminates Kaine's proposed use of furloughs. Eliminates Kaine's proposed use of furloughs. Unclear Unclear Unclear Maintains 3 days of furloughs. Maintains furloughs. Unclear Unclear Unclear 2 I E. 1 Governor McDonnell House Budget Senate Budget Human Services - increases the reduction included in the introduced budget for chore and companion services provided by local Departments of Social Services to approximately 25% in FY 2011 and 50% in FY 2012. Human Services- will limit the scope of the General Relief Program, leaving $1.1 million each year, to support only unattached children who otherwise would enter foster care. Human Services - Restores the locally elected reduction included in Central Appropriations which was removed in the introduced budget. Medicaid Provider reimbursement Reductions: Reduces reimbursement for community mental health services and DS Waiver services` DBHDS 5% reduction in on-going allocation Health Department — elimination of Healthy Start funding Health Department — elimination of State Dental Programs Propose change in wireless E911 funding formula results in a loss of $400,000 in revenue to VB which supports the E911 Call Center. -$63,868 $26,250 -$513,450 $373,669 -$453,765 Unclear Unclear Unclear Unclear Unclear Eliminates the funding Unclear for a position in the program Would eliminate all Unclear State funding. Unclear Unclear Unclear Unclear Unclear Unclear Unclear Language to restore Language to restore not Language to restore not not included included included Possible City & School Employee Impacts Allows for a local option to require current employees to pay between 1% and 5% Included Included Included 3 I Governor McDonnell House Budget Senate Budget Change to VRS requirements for Unclear new employees Would have to pay the employee's 5%; would have to work to Social Security retirement age; and retirement calculation would be on highest 5 consecutive years of service not the current 3. Provides the local option of using the state's Transitional Retirement Program to Local and School employees whose position was being eliminated. Unclear Provides salary payments based on years of employment and would allow the City or School Board to buy service credit. Would have to pay the employee's 5%; would have to work to Social Security retirement age; retirement calculation would be on highest 5 consecutive years of service not the current 3; and lowers typical annual COLA's. Provides salary payments based on years of employment and would allow the City or School Board to buy service credit. For information on School Impacts please see attached PowerPoint from Mr. Hanzaker. 4 SCHOOL BOARD WORKSHOP BUDGET BILLS UPDATE Budget Proposals $340,596,714 $317,958,964 $333,462,677 •House Appropriations Committee and the Senate Finance Committee adopted their budgets on February 21, 2010 • House and Senate scheduled to take full votes on their respective budgets on February 25, 2010 •VDOE Budget Office is expected to release the calculation tool for the House and Senate budgets — this week • Budgets are subject to change until final action is taken when the General Assembly adjourns on March 13, 2010 1 House Amended '..A ' Local Composite Index (LCI) — additional state cost of $91.7 M in FY 2011 to provide an 80% hold harmless payment to those school divisions whose LCI is increasing based on the re -benchmarking 'Estimated VCPCS savings of $11.9M 'Provide funding for VPSA Technology Grants - $57.8 M — additional state cost (partially funded by debt service) to provide funding to school divisions for technology grants in FY 2012 'Estimated increase funding to VBCPS of $2.8M ' Adjustment to state and school division payments for the employer's share of VRS for retirement, group life, and retiree health care credit under the SOQ — value of required local effort credit offset by supplement state payment requirement for local governing body 'Suspend mandate for secondary planning period - $185.7 M in FY 2011; $188M in FY 2012 — state savings — reduction in State Aid to school divisions House Amended Continued •i; ttori ' Extend school bus replacement schedule to 15 years - $9.7M savings each year •VBCPS initiated this a year ago *Change Linear Weighted Average (LWA) calculation for Non -Personal Support and Pupil Transportation cost to include zeros - state savings $40.6M FY 2011: $40.9M FY 201 2 — reduced funding for local school divisions • Lottery * Increase Lottery funding due to state's participation in the lottery powerball game — est. $5M in revenue for state * Create lottery proceeds block grant for at -risk add on, Virginia Preschool Initiative (VPI), and Early Reading Intervention (eliminates funding for support for school construction and operating cost and enrollment loss programs) — state savings $136.2M FY 2011; $127 M FY 2012 — reduced funding for local school divisions — also changes the SOL funding to a block grant ??? What is long-term impact of this change? *Transfer textbooks and remedial summer to Lottery accounts: state savings $76.2M FY 2011; $76.9M FY 2012 2 Senate Amended *Local Composite Index — provide 100% hold harmless payment for both years in the biennial - additional state cost $116.5M FY 2011; $ 155.2M FY 2012 *Estimated VCPCS savings of $14.9 M each year of biennium *Provide funding for VPSA Technology Grants - state cost of $57.6 M in FY 2011 and $57.8 in FY 2012 (partially funded by debt service) *Estimated increase funding to VBCPS of $2.8M each year of biennium *Include zeros in the LWA for non -personal support — state savings $39.2M FY 2011; $39.5M FY 2012 •Modify federal deduct for percent funded support costs - state savings of $19.5M FY 2011; $19.2M FY 2012 *Eliminate travel, lease/rentals, non -personnel facility from recognized SOQ costs — state savings of $34.7M FY 2011; $34.8M FY 2012 Senate Amended Continued COI *Lottery — •Forecast $5M additional revenue; *School breakfast increase reimbursement by 10% to 22 cents — additional $244K FY 2011, $290K FY 2012; •VPI non -participation savings $7.9M 2011, $6.1M 2012; *School construction/operating costs $35M each year *Estimated savings from retirement and group contribution rates - $159.4 M FY 2011 ;$171.3MFY2012 *Defer funding for textbooks - $51.4M FY 2012 3 House and Senate Bill Comparison 11 Local Composite index - additional state expense Funding for VPSA Technology Grants (partially by debt service) - expense Include zeros in LWA non-support calculation - savings Technical corrections (non -personal support adjustment facilities and regional centers/adjustment from 4 combined divisions) - savings VRS savings for employer share payments -savings Lottery (revenue forecast from Powerball) Eliminate trawl, leases/rentals from non -personal facility - savings •$91.7M FY 2011 • 80% hold harmless •$57.8M in FY 2012 •$40.6M FY 2011 •$40.9M FY 2012 •$29.2M FY 2011 •229.5M FY 2012 •S181.6M FY 2011 •$184.1M FY 2012 • S5M annually •S30M FY 2011 •$30.2M FY 2012 •S 116.5M FY 2011 •$155.2M FY 2012 • 100% hold harmless both years •$57.6M FY 2011 •$57.8M FY 2012 •$39.2M FY 2011 •$39.5M FY 2012 •$29.2M FY 2011 •$29.5M FY 2012 •$159.4MFY2011 •$171.3MFY2012 •S5M annually •$34.7M FY 2011 • $34.8M FY 2012 House and Senate Bill Comparison continued AO Extended school bus replacement cycle - savings Suspend mandate for secondary planning period - savings •S9.7M 4185.7M FY 2011 •$188.0M FY 2012 Transferred textbooks and remedial •$76.2M FY 2011 summer to lottery account - savings •$76.9M FY 2012 Eliminated support for school construction and operating costs in Lottery fund- savings Establish a Lottery Proceeds block grant for At -Risk, Early Reading Intervention, and pre -K programs (eliminates support for school construction and operating cost and enrollment loss) - savings •No action •$136.2M FY 2011 •127.0M FY 2012 •No action •No action •$51.4M (deferred funding in FY 2012) •$35.0M FY 2011 • $35.0M FY 2012 •No Action 4 Legislative Items Affecting the Budget Passed Items n Delayed Accreditation — SB 352- Passed the House and Senate with an amendment that delays all new accreditation requirements except the implementation of the graduation and completion rate index Triennial census of school population — SB 413/SB 557 — passed the Senate; assigned to House Appropriations Sub-Committee (Elem. And Sec.) 5 Legislative Items Affecting the Budget (Defeated Items o Instructional spending; local school board to report expenditures annually (65 % Bill) - HB 76- Defeated in the Senate and Education Committee o Students with Disabilities Tuition Assistance Grant Program — HB 238- Defeated in House Committee on Education Flexibility in Meeting Specific State Education Mandates House: Temporary flexibility to increase average class size by one student in Grades K-12 Temporarily waives staffing requirements for certain SOQ positions Temporary waiver of ratio requirements for filling vacancies Senate: o Temporary flexibility to increase average class size by one student in Grades K-1 2 Asks DOE to recommend the elimination of any testing that is not required under federal accountability or required for a student's verified credit 6 7 -15- CITY MANAGER'S BRIEFING GENERAL ASSEMBLY BUDGET UPDATE 5:05 P.M. Catheryn Whitesell - Director, Management Services updated the State Budge through the reading of a PowerPoint presentation. (Appended) In reply to Councilman Uhrin to summarize the different proposals to the City's Budget, Ms. Whitesell advised it is expected to offset about $4 -Million. We're expecting another $5 -Million if you get the $700,000 increase — so a $4.5 -Million - $.5 -Million reduction in other State revenues between the impacts. Human Services alone was just identified as over $2 -Million. In reply to Councilman Uhrin, based on what we thought we were getting from last year's State Budget, Ms. Whitesell advised the reduction from last year to where we think we are today would probably be $9 to $12 -Million on the City side. She cannot predict the Schools as they are all over the map. The House of Delegates has different pieces. The Senate version is better for the City and Schools as they are relying on several Hundred Million in fee increases. There is no guarantee the Governor or the House will agree to move those forward. In reply to Councilman Uhrin, Ms. Whitesell confirmed that the fundamental changes to the formula that will impact the City in perpetuity are the wireless as well as the telecom fees. The House has determined that the Virginia Telecom Revenue should have been appropriated by the General Assembly. They want to run it through their General Fund. This $20 -Million diversion is a big concern and probably the first of many. March 2, 2010 I - 16 - LED SIGNS 5:19 P.M. Council Lady Rosemary Wilson mentioned last week that City Council was going to pass something and Hien go back to work on it again. However, the sub -committee met again this past Friday and compromised on the two different plans and that is going to be in your package next week and then we will vote on it the following week. March 2, 2010 -17 - ADJOURNMENT Vice Mayor Louis R. Jones DECLARED the City Council Workshop ADJOURNED at 5:20 P.M Sandra H. T ompson, MMC Deputy City Clerk, II th Hodges Fraser, MMC City Clerk City of Virginia Beach Virginia March 2, 2010