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Home My WebLink AboutAPRIL 2, 2013 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 GLENN R. DAVIS, Rose Hall - District 3 WILLIAM R. DeSTEPH, At -Large ROBERT M. DYER, Centerville - District 1 BARBARA M. HENLEY, Princess Anne District 7 JOHN D. MOSS, At -Large AMELIA N. ROSS-HAMMOND, Kempsville - District 2 JOHN E. UHRIN, Beach — District 6 ROSEMARY WILSON, At -Large JAMES L. WOOD, L,vnnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - JAMES K. SPORE CITY ATTORNEY- MARK D. STILES CITY ASSESSOR - JERALD D. BANAGAN CITY AUDITOR - LYNDON S. REMIAS CITY CLERK - RUTH HODGES FRASER, 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 APRIL 2013 I. FY 2013-14 RESOURCE MANAGEMENT PLAN (Budget) - Conference Room - Economic Vitality Agriculture Convention and Visitors Bureau Economic Development Housing and Neighborhood Preservation Strategic Growth Areas and Capital Improvement Program Safe Community Commonwealth's Attorney Emergency Communications, Citizen Services and Capital Improvement Program Emergency Medical Services — (EMS) Fire and Capital Improvement Program Sheriff and Corrections Police and Capital Improvement Program 4:00 PM -1 - VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April2, 2013 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, April 2, 2013, at 4:00 P.M Council Members Present: Glenn R. Davis, William R. "Bill" DeSteph, Robert M Dyer, Barbara M Henley, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin and James L. Wood Council Members Absent: Vice Mayor Louis R. Jones [ill] Rosemary Wilson [caring for ill husband] April 2, 2013 1 -2- MAYOR SESSOMS STATEMENT EXTENSION OF LIGHT RAIL FROM NEWTOWN ROAD TO ROSEOMONT ROAD Mayor Sessoms advised the City received a letter today from Chris Guthkelch, Authorized Representative for Newtown to Rosemont, along with an unsolicited proposal to extend Light Rail from Newtown Road to Rosemont Road. Mayor Sessoms read the letter into the record, a copy of which is incorporated into the Minutes. Mayor Sessoms advised he made contact with most of the City's Delegation in the Senate and House of Delegates and discussed this with the Governor advising him of this "unsolicited proposal". If accepted, the Proposal indicates Light Rail could be running as early as November 2016. The Mayor gave this to the City Manager and Staff will conduct the proper analysis with a report back to City Council for further direction. Should City Council decide to pursue such extension, the City is required to open the bid process so others could submit a Proposal. City Manager Spore distributed a copy of the City of Virginia Beach Procedures Regarding Requests Made Pursuant to the Public -Private Education Facilities and Infrastructure Act of 2002, adopted by City Council on June 24, 2003, and re -adopted on July 7, 2009. Mr. Spore advised he will be putting a task force together to provide a thorough review of the Proposal. At that point, it will be up to City Council to decide whether or not to accept this conceptual Proposal. The City is excited about receiving this document and looks forward to the analysis and their future consideration. City Attorney Stiles added if the Proposal is accepted and the decision made by City Council to solicit other Proposals, the decision would be posted within ten days. At that point, others would have a minimum of sixty (60) days to submit competing Proposals. City Manager Spore advised Staff will begin work on this and, hopefully, be back before City Council within thirty (30) days. April2, 2013 Newtown to Rosgmont April 2, 2013 Purchasing Agent Department of Finance Purchasing Division 2388 Court Plaza Drive Virginia Beach, Virginia 23456 APR - 2 2013 Re: Virginia Public -Private Education Facilities and Infrastructure Act of 2002, Code of Virginia, §§ 56-575.1 et seq Proposal Dear Madam or Sir: In accordance with Section II.A.3 of the City of Virginia Beach's Procedures regarding the Public -Private Education Facilities and Infrastructure Act of 2002, provided are six copies of an unsolicited proposal to extend light rail in the City from Newtown Road to Rosemont Road. Enclosed is a letter from Mark Stiles, City Attorney, City of Virginia Beach, Virginia, indicating that Section F.3 Project Financing (pages 63 through 78) included in the overall proposal will be protected as Confidential in accordance with § 2.2-3705.6(11) of the Virginia Freedom of Information Act ("FOIA"). We claim protection for Section F.3 of the Proposal (pages 63 through 78) as indicated. Also in accordance with the PPEA guidelines, a copy of this unsolicited proposal is being provided to the City of Norfolk, the Virginia Department of Rail and Public Transportation and Hampton Roads Transit. Sincerely, Chris Guthkelch Newtown to Rosemont Authorized Representative cc: James Spore, City Manager THE Philip A. Shucet SKANSKA JACOBS COMPANY TRULA. J alp AECOM -3- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN AGRICULTURE DEPARTMENT 4:07 P.M. Mayor Sessoms introduced and welcomed David Trimmer, Director — Agriculture. Mr. Trimmer expressed his appreciation to City Council for their continued support of the Agriculture Department. Budget Presentation April 2, 2013 Mr. Trimmer advised he is pleased to announce the Agriculture Department met Budget expectations for FY2013-14. Agriculture Department Operating Budget Director's Office Extension Office Farmers Market Agricultural Reserve Program • Total S 276,935 2.52 $ 280,349 283,512 6.00 195,575 4,336,626 S 5,092,648 274,608 6.00 1.48 4,311,817 1.48 3,414 1.2%. ( 8,904) (3.1%) 33,481 17.1% (24,809) (0.6%) 0.1 % 2 April 2, 2013 II I -4- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN AGRICULTURE DEPARTMENT (Continued) Most of the Agriculture Department's Budget is associated with Salaries. FY 2013-14 Budget • General Fund ARP get •y Fund Budget by Expense Category Debt Service ■Reserve 3 Below are a list of the Department's FY2012-13 Trends and Highlights. Mr. Trimmer advised Agriculture growth in the City continues to be strong with a $124 -MILLION economic impact in 2012. Agriculture FY 2012-13 Trends & Highlights Agriculture growth in Virginia Beach continues to be strong with an estimated economic impact of $124 million in 2012. All facets of Agribusiness remain strong: production farming (crops), fruits & vegetables, tourism, farmers markets, ARP, equine, etc. Farmers Market high profile events and community interaction make it a place to visit to shop, take part in activities and AG education; 500,000 estimated annual attendance with 100 plus events planned for 2014. Agricultural Reserve Program (ARP) enrolled 222.7 acres so far this Fiscal Year 2013. Currently, there is one approved application awaiting closure by the applicants totaling $1,107,904 in easement value on 98.92 acres. April2, 2013 I1 I -5- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN AGRICULTURE DEPARTMENT (Continued) Partnering with CVB, the Agriculture Department is continuing to focus on "Agritourism" offering Farm Tours and various Festivals and events throughout the year. FY 2012-13 Agriculture Trends & Highlights - Continued Agricultural Reserve Program (ARP) continues to work with the Virginia Department of Agriculture and Consumer Services (VDACS) on farmland preservation funding. In 2012 5110,952 was allocated. In 2013 $160,715 will be allocated. To date, the City has been reimbursed a total of 5371,244. Fiscal Year 2011-12 the Virginia Beach Office of Volunteer Resources shows Agriculture with a count of 1,095 volunteers contributing 22,071 hours with a value of $431,620 to the City (equaling 10.61 FTEs,5th highest department). Continued Focus on Agritourism (Partner with CVB) Farm Tours Taste of the Farmers Market Summer Farmers Market Wine Tasting Night Pungo Strawberry Festival - 30th year of the celebration 5 Below are the Agriculture Department's Top Goals and Strategies. One of the initiatives focuses on education of school-age children and partners with the School System to offer Farm Tours. Last year, one local farmer provided tours for approximately 13,000 children. AG Department's Top Goals/Strategies AG Educational Programs- Expose local K -5th grade students to agriculture, proper nutrition, farm experiences, Master Gardener Kitchen Garden and Farmers Market garden display through demos, skits and tours via the Rural Heritage Center at the Farmers Market. Continue working with local fruits and vegetable growers to assist in creating opportunities to market and sell their produce locally and increase opportunities to increase productivity and sales. Examples: Why Not Wednesday, Libraries, other local farm markets, City Farmers Market events, auction at the Farmers Market, etc. Continue to grow the AG volunteer programs: Fiscal year 2012 had 1,095 volunteers contributing 22,071 hours equaling 5431,620 in value; equivalent to 10.61 FTE's. Continue to focus on growing and developing the Farmers Market into a year-round shipping, Ag Tourism, and community event venue for citizens and tourist to experience a family friendly environment. 6 April2, 2013 -6 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN AGRICULTURE DEPARTMENT (Continued) The 4-H Program in the City continues to grow. The Creeds Ruritan Club will open a new facility that will provide a venue for 4-H and various other Agriculture events. Ag Departments Top Goals/Strategies - Continued Continue to promote and support the numerous 4-H programs offered by the Virginia Tech Extension team. May of 20 13 the Creeds Ruritan Club will open a new facility in the southern part of the City that will provide a venue for 4-H programs and other agricultural programs. Continue to support programs such as the Hampton Roads Buy Fresh Buy Local Chapter, Virginia Soil and Water Conservation Programs (VADARE), Pungo Strawberry Festival (30th Year in May 201 3), Excellence in Agriculture Program (started in 1966), and the 2013 Virginia AG Expo being held in Virginia Beach as well as the new Virginia State Fair which is now owned and operated by the State of Virginia Farm Bureau. Continue to support the growth of AG industry in Virginia Beach: an estimated at $1 24 million economic impact to the City in 2012. Continue to preserve farmland for future generations to sustain agriculture, preserve jobs, maintain a rural setting, provide open space, control density growth and protect the environment. Mayor Sessoms thanked Mr. Trimmer for all of his work, creative budget savings and showcasing our Farmers. April2, 2013 I -7- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS B UREA U 4:23 P.M. Mayor Sessoms introduced and welcomed Jim Ricketts, Director — Convention and Visitors Bureau. Mr. Ricketts expressed his appreciation to City Council for their continued support of the CVB. Convention and Visitors Bureau Mr. Ricketts advised CVB is beginning to see a slight downturn in room nights as attendance of government meetings is declining. Mr. Ricketts associates this decline to Sequestration. Convention and Visitors Bureau Director's Office 3152695 10 12159,829 S0 3134 Tourism Marketing 462,139 6 477,253 6 15,114 Sports Marketing 276,129 3 `. 252,937 3 (23192(;.... Convention Sales 980,402 12 901,673 11 (78,729) VB Convention Center. 5,965,006 72.13 6,099,662 69.13 134,656 4.:40 0.7% Risk Management: + 3.3% Risk Mgmt./Fringes - 8.4% Salary to Entry level - 8.0% Position to TAP + 2.3% Net of: + Risk Mgmt. Contracted:3 FTE's + Revenue 01 045,229 Total Genera( Fund 8,835,371 103.13 8,891,354 99.13 55,983 + 0.6% unit Arnaud i Chi Tourism Advertising 8,905,262 0 9,437,316 0 532,054 Visitor Centers 1279,549 10.39 1,213776 11.39 39,227 Reserves 2,432 2,432 Transfers to Other Funds 56,838 53838 0 Total TAP FUN0 10,141,649 10.39 10,715,362 11.39 573,713 TIP Locals Campaign • '100,000 : 0 100,000 0 0 1a5a0 IVO Budget 19,077,020 113.52 19,706,716 110.52 629,696 71P Funa ixgrtaavnxrnr FY tali-» induaina Om. aervnv♦ sided 01 + 6.0% + 3.3% 03496 Compensation ComST charges +5.7% 0.096 + 3.3% April 2, 2013 -8 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) FY 2013-14 Budget al General Fund ■ TIP Fund TAP Fund 0.0% Budget by Expense Category E Personnel • Operations and Marketing r. Reserves Transfers Below are the CVB's significant issues. Mr. Ricketts advised Tourism is vital and is a large revenue stream for the City. Convention and Visitors Bureau Significant Issues • Tourism is vital for Virginia Beach due to the large intake of revenue for businesses with their goods and services and the opportunity for employment in service industries associated with tourism. However, we have challenges. Transportation (Regional) Need for light rail and thinking in terms of transient -oriented development. It's what visitors expect. Deteriorating Roads, Traffic Congestion, and Tunnel backups remain', high on list things disliked by visitors. Competitive Pressures - will intensify as other cities focus on tourist development Arena - We have an outstanding Sports Marketing program, which will be impacted in the future by lack of sports venues, especially an arena April 2, 2013 I -9- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) The lack of the City having a Headquarters Hotel continues to be a challenge for the City to compete with other cities for meetings and conventions. Convention and Visitors Bureau Significant Issues Competitive Pressures, continued Entertainment Venues - Although tourists appreciate our quality beaches and boardwalk, other destinations our size offer diverse and unlimited activities for tourists and visitors for all age groups. Entertainment venues are vital to a sustainable tourism industry in Virginia Beach. Headquarters Hotel — The lack of a Headquarters Hotel continues to be a challenge for us to be competitive in the Meetings and Convention business The City used to compete for events with cities such Charlotte, NC; Louisville, KY; Baltimore, MD; and Nashville, TN. Without a Headquarters Hotel, the City is now competing with smaller cities for smaller meetings as shown below: Convention and Visitors Bureau `ignificant Issues Competitive Pressures, continued Competitive Set -f Our competitive set has changed due to lack of a Headquarters Hotel Where our competition formerly included Charlotte, NC, Louisville, KY,' Baltimore, MD, and Nashville,' TN we now compete with these smaller cities for smaller meetings with fewer room nights and less revenue: Raleigh, NC Greensboro, NC Chattanooga, TN Lexington, KY Memphis, TN Birmingham, AL Richmond, :VA Myrtle Beach, SC Savannah, CA Knoxville, TN Recent Lost Business Due to Lack of a Headquarters Hotel Organization Month/Year Room ; Nights Religious Conference January 2015 3,605 Management Association National Association of April 2015 2,000 Sports Commissions International Association of Forensic Nurses October 2016 2,089 American Counseling March 2017 5,292 Association American Mathematical January 2019 12,365 Society Seventh Day Adventist - March 2015 3,587 BAYDA Youth Congress Amateur Softball October 2015 1,965 Association April2, 2013 -10 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) The Convention Center is in its eighth year of operation and maintenance of the facility is going to become more of an issue. Convention and Visitors Bureau Significant, Issues Virginia Beach Convention Center Total Consumed Room Nights Estimated Consumed ROOM Nights - Convention Center Attendees 200,000 100,000 50,000 FY 00-07 FY.0T-00 FY0000 7705-10 FY 10,11 7811-12 Since opening in July 2005, attendees of events at the Virginia Beach Convention Center have consumed over 850,000 hotel room nights in our city. Sequestration - Military/govemment events accounted for approximately 15% of VB Convention Center's total revenue in FY 11-12. Virginia Beach Convention Center Funding — Except for the increase in personnel costs over the past four years, the Convention Center's General Fund budget has declined each year. Maintenance — In the eighth year of operation, the Convention Center requires more attention to maintenance. CIP — Beginning FY 2015 there is a capital maintenance project for replacements of vital infrastructure at the Convention Center @ $343,563 annually CVB 's Trends and Initiatives are listed below. Mr. Ricketts advised CVB has worked to create community advocacy opportunities to help "give back to the community ". The Department has launched a new Public Relations Program to meet the market demands, as well as create awareness by constructing positive images of the City for domestic and international markets. Convention and Visitors Bureau Trends and Initiatives Year-round performance — 2007 2008 2009 2010 2011 Visitor Spending (in billions $) 1.125 1.154 1.061 1.129 1.223 Community Advocacy - TIP Fund Gift of Tourism Program- to be effective, this initiative needs to be broadened. • There is evidence that the program has potential to achieve citizen understanding and support for the value of tourism to the local economy. CVB Open House - to showcase our programs and initiatives Public Relations Program — Expanded to meet the market demands to create awareness and construct positive images of Virginia Beach for domestic and international markets April2, 2013 -11- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) Convention and Visitors Bureau Community Advocacy, continued Corporate Social_ Responsibility Program Strong Corporate Social Responsibility Program, having a presence in the community, partnering with organizations, and engaging meeting planners to reach out to the community in a variety of ways. Virginia Beach Tourism Foundation • Provides another vehicle to raise awareness of the importance of tourism to the local economy • Strong and diverse Board of Directors • Partnering with local business community (Geico, Stihl) • Fundraising to supplement CVB research program • College scholarships to students enrolled in hospitality programs Tie Pone. s Hoose Mr. Ricketts advised CVB is aggressive in attracting international visitors to the City. Studies show international Tourists stay longer and spend approximately 5xs more money. Approximately 63.7 - MILLION International Tourists visit the United States each year. Virginia Beach CVB International Marketin ,'` III We continue to develop partnerships and enjoy a strong Canadian tourist market with 10-12% of our annual visitation. International visitors spend five times more than domestic travelers. In 2011, 62,7 million international visitors traveled to the U.S., generating $153 billion in receipts and a $43 billion trade surplus. • Countries with the largest total growth percentages are: China (259 % increase) Brazil (83% increase) Major focus on international marketing through contracted representation, CVB staff -driven sales and marketing, and relationships with' an international marketing consortium of Virginia, Maryland and District of Columbia state and regional/local destination marketing organizations. April2, 2013 I -12- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) The City has done a tremendous job with the Resort Projects and CVB benefits from these initiatives. The Resort Projects create wonderful synergy. Convention and Visitors Bureau Trends and Initiatives Visitors and citizens benefit from great things happening in the city, by the hard work and dedication of other departments. Resort Projects • Laskin Road Gateway Project • Beach Replenishment Rudee Inlet Dredging Lighting Improvements Extended Recycling Program in Resort Boardwalk Sign Refurbishment With 25% of our visitors reporting that they visit the Virginia Aquarium & Marine Science Center, the Convention and Visitors Bureau looks forward to even greater visitation with the opening of the Outdoor Aquarium Adventure Park thanks to the efforts of the Department of. Parks and Recreation and the Virginia Aquarium Foundation. Below is the Organizational Chart for CVB: Contract Advertising Agency Advertising Advisory Committee lWrginla Beach City Bound City Manager Deputy City Manager for Development Convention and Visitors Bureau Director Directors Office (10 FTEs)' CVB Marketing and Research Coordinator ---' (1 FTE) Position in TAP Fund'. CV6 Public Relations Coordinator 11) Vacant -Pocked and Recruiting Media E Caren.Coordinator (2) Tourism Marketing and. Sales (17.39 FTEs) rMucposPliAn in TAP Pond= 16.3901Es 110.52 Total FTEs ExacotiveAssistant (1 FTE) Business Development Representative (1 FTE):. AJeinlstratiee Services Manager (1) Aaountam 111 (1) Account Clerk 11(2) Virginia Beach Convention Center (69.13 FTEs) Convention Marketing and Sales (14 FTEs) April2, 2013 -13 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN CONVENTION and VISITORS BUREAU (Continued) VIRGINIA BEACH 1) Director Tourism Marketing and Sales Division (1739 FTEs( Convention and Toutiem Marketing Administrator(1) Tourism Tour and Travel (5 FTES) Tourism Marketing Coordinator 11) Cale aToni sass Rens 111 Adninisnd* $pdabt. 11) GlaceAWssM(n (11.39 FTEs in TAP Fund) NC Manager (1) MikeAu)NaMl1) Vic Assistant( 53n C.wMkeSaraces Scrim Colleen.. Santora Cooed. (a PosItidn shown on Director's Staff Convention Marketing and Sales Division' (14 FTEs) Convention and Tourism Sales Administrator (1) [ Convention Saks. (10 FTEs) Convention Sales Coordinator (1) Cam &Toa.Saiss Rev 01 Administrative Anand (1) AdMasea6SeSpdaNst (1) GMceAsM5M(2) Sports Marketing (3 FTEs) Spods Marketing Coordinator (1) EeadSSpeMaan) Operations (40.75FTEs) VBCC Assistant Manager (1) Office Assistant (1) Genal Supervker (1) Operations Supervker: (1) Crew Leaders (S) Maintenance Worker (10) Custodial Weaken (q Beetmei i (1) MVAC Tech (2) Pantos (1) Corpsmen (3) Groundskeeper (4 FTEs) P)TGmundskeeper )5.SFSE.)'. PG Ops Spedelists(1:5 FTEs) P)T Custodial Worker (475 FTEs) VIRGINIA BEACH 4 t1 \ S 61 ' i:4 5 v S Director. Virginia Beach Convention Center (69.13 FTEs) Convention Center Manager (1) Business Office (12.48 FTEs) VBCC Assistant Manager (1) Business App Spscisast (1) Vacant -1n Selection Process Administrative Specialist (1) Account Clerk Supervisor (1) Account Clerk (3) PR Account Clerk (075) PTT Ticket Seller (1.25 FTEs) PIT Ticket Taken (3.48 FTEs) 1 Administrative Specialist (1) Saks and Service: (13.9 FTEs) VBCC Assistant Manager (1) Office Assistant (2) Special Events Manager (1) Events Coordinator (6) Cone. & Tour. Sales Rep (3) P17 Event Supervisors (0.6 FTEs) PR Van Driver (0.3 FTES) The Mayor thanked Mr. Ricketts for all of his work. April2, 2013 I -14- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN ECONOMIC DEVELOPMENT 4:49 P.M. Mayor Sessoms introduced and welcomed Warren Harris, Director — Economic Development. Economic Development Budget Workshop April 2, 2013 Warren D. Harris Director Mr. Harris advised City Council the Department's Budget is flat. A significant portion of the Budget comes from the CVB's TIF. Prog Economic Development Operating Budget FY 12-13 Amended Director's Office $2,324,163 Town Center SSD Town Center TIF Capital Projects (APZ FTE) Sub Total Grow Smart Total FY 33-14 ° t Proposed Change FY 13 Amended to FY 14 Proposed $ 2,493,871 16 $169,708 7.30% $1,917,558 NA $1,868,897 NA 55,738,312 NA $6,016,866 NA $80,671 1. $10,060,704 17 $63,300 $10,442,934 1 17 ($48,661) -2.54% $278,554 4.85% ($17,371) -21 53% $382,230 3.80% $235,507 1 $277,322 1 $41,815 17.76% $10,296,211 18 $1O,720,256 18 $424,045 4.12% April 2, 2013 I I I -15- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN ECONOMIC DEVELOPMENT (Continued) $1,868,897 $63,300 .6% 17.4% ®1 $2,771,193 25.9% FY 2013-14 Budget • General Fund °: CBD -TIF a TC -SSD APZ-Capital Project Budget by Expense Category Budget by Fund -Personnel W Operations Debt Service • Transfers Mr. Harris advised there is an increasing need to support various City Council appointed Committees. Also, other City Departments (including City Council) use their conference rooms and often require Staff support, which is on the increase. Economic Development OtganILatit 18 FTE PSD-G International David VV. Straiddv OIIYIa Robort nuaome Deveuonan: Manes 0'6ry AssisMnt April 2, 2013 -16 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN ECONOMIC DEVELOPMENT (Continued) Below are Economic Development's significant issues. Economic Development Significant Issues Economic Development significant issues include: — Unknown impacts of sequestration have created uncertainty within the Defense Industry about future contract awards — Providing financing/funding/incentive mechanisms to recruit industries — Expanding upon multi -model transportation infrastructure that will assist with economic development growth — Continue to promote the development of Corporate Office space and inventory to recruit and retain knowledge based companies — Existing economic market conditions, such as the cost of natural gas, reduces the incentive to actively pursuing the Alternative Energy Industry sector — Maintain the current level of economic development momentum in an increasingly challenging environment — Promoting Small Women and Minority related industries — Grow Smart & APZ-1 grant funding in out years is a growing concern Mr. Harris advised the City continues to see interest from the international business market. Also, the Community Profile document has been significantly enhanced. Economic Development FY 2013-14 Trends & Highlights • The international business market has increased their investment in Virginia Beach. The result has been the hiring of PSD -Global as our International marketing consultant to leverage these opportunities in the European market. — Offices in Washington DC & Munich, Germany • An enhanced Town Center Phase -V deal has been approved and construction has started with an increase in prospect interest • The staff restructuring and repositioning has produced an experience level that in turn makes us one of the leading organizations in the State. This organizational change has lead to the pursuit of the newly identified target market sectors as outlined in our revised 2012 Economic Development Strategy. • The Grow Smart program has been recognized by the Alliance for Transforming Government as a leading program initiative for workforce development. The 2013/14 budget represents the 4. of 5 years for the Early Learning Challenge Grant. • Our Community Profile document has been significantly enhanced to include a substantial amount of additional information, along with now being interactive in a variety of formats. • Expanding the integration and use of technology into all marketing and customer service efforts I I .113 I I April2, 2013 -17 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN ECONOMIC DEVELOPMENT (Continued) Below are additional Trends and Highlights. The City continues to rank 2"d in yearly economic activity among the Virginia communities. Economic Development FY 2013-14 Trends & Highlights • National companies new to the area are considering Virginia Beach as their first introduction into the Hampton Roads market place. (i.e., Green Flash Brewery, Stratford University, Powertrain Industries, and Whole Foods) • Defense companies have expressed concerns about the impacts that sequestration will have on their future growth • Bio Science and Health Care inquiries have substantially increased within the Princess Anne Commons corridor because of the existing related assets that are in that corridor • Economic Development staff worked closely with the SGA office to finalize the Hilltop and Centerville SGA plans. We also identified and began implementation of the Economic Development components of the SGA plans. • Over the last 18 months we have become well versed in the Sports and Entertainment fields as a result of working on the arena project. Virginia Beach has been identified as a top underserved market for this style of investment • More than $230 million in new capital investment was made by the City's business community for the year, supporting the creation of nearly 1,800 new jobs and 2 million square feet of commercial space being filled throughout the City. The Department assisted 50 total companies with their location or expansion. • 81% of project announcements fell within one of the departments Target Industry sectors • Virginia Beach Economic Development continues to rank 2nd in economic activity on an annual basis among Virginia communities behind Fairfax County. Economic Development FY 2013-14 Trends & Highlights Prospect Activil 2013 Proiects by Geography Proiects by Target Industry Local National International Manufacturing Maritime/Logistics Technology Defense Office Bio/Life Science Retail Other 25 23 12 6 15 6 10 5 April2, 2013 -18 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN ECONOMIC DEVELOPMENT (Continued) Critical Services not funded are identified below: Critical Services NOT Funded • Business Incubator/Innovation Center 2000 200K Tr 1 Town Center TCC Revenue Grant / Sublease / Corp Sponsorship Expenses SGBA Office Rent Equipment Programs Total Expenses Remaining Budget Available for Investment 270,000 ME! l MEE 53 , 50.000 ll�llllllllll 0 00 0.00 • Contracted Manpower • Computer Peripherals $200,000 $12,000 $2,916 Mr. Harris stated the City has established a strong presence in the global market and plan to capitalize on that opportunity with the recent hire of PSD -Global. The Department is expanding the integration of technology into all marketing and customer service effort. In closing, the City has learned a great deal about the "sports entertainment" business over the last year and a `half They plan to utilize that information to attract a sports team to the City. Conclusions We are preparing for the uncertainty in the market place. Funding Economic Development initiatives reassures companies and investors that Virginia Beach is a stable and business friendly community. We have established a strong presence in the global market, especially in Germany, and we plan to capitalize on that opportunity with the recent hire of PSD -Global. • We have learned about the Sports and Entertainment industries and what it takes to be successful in those markets • Expanding the integration of technology into all marketing and customer service efforts • Bio Science and Health Care Research and Development is an of target industry and we have assets in place to capitalize We are vertically integrating various business assistant assistance for starter progression of assistance. Grow Smart & APZ-1 grant funding in out years is a gr Mayor Sessoms thanked Mr. Harris for all of the hard work. April2, 2013 -19 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION 5:22 P.M. Mayor Sessoms introduced and welcomed Andy Friedman, Director — Housing & Neighborhood Preservation. Housing & Neighborhood Preservation Budget Workshop April 2, 2013 Andrew M. Friedman Mr. Friedman expressed his appreciation to City Council for the opportunity to present a Summary of the Department's proposed Budget stating he is excited about what the Department can continue to contribute to a positive future for the City Housing & Neighborhood Preservation Operating Budget Program Unit FY 1213 Amended Admin. & Neighborhood $ 874,186 Preservation Code Enforcement Dev./Rehab Affordable Housing Affordable Rental Housing ngeFY13. ndedtoFY14_ Proposed 2,442,828 29.0 2,497,450 29.8 54,622 2.2% Homeless Programs 19,895,494 21.0 19,895,148 21.5 917.875'' 1.2 916,749 0.3 (3461 (0.0%( 1126 0.1% Total $25,237,918 64.0 $25,474,927 63.0 $237,009 0.9% April 2, 2013 -20 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) The key portion of the Department's Budget is the Housing Choice Voucher Program, which goes right back out in the form of rental subsidy payments to landlords. The City contributes over $15 -MILLION annually in support of landlords who agree to participate in the program. In addition, the Budget is now essentially 90% Federal and 10% local — City funds are approximately $2.5 -MILLION out of $25 - MILLION. General Fund 1D.64% FY 2013-14 Budget Miscellaneous Revenue 0.38% Section 8 Funds 72.49% CDBG/HOME/ ESG/HOPWA/ COC Funds 16.50% Budget by Expense Category Budget by Fund or Revenue Indirect Costs &Transfers 5409,615 1.61% Personnel 54,631,432 18.18% Programs 519,833,878 77.86% Operations 5600,002 236% Key Goals Programs to Achieve Goals Promote vibrant, well - maintained neighborhoods Expand affordable housing opportunities Prevent and minimize homelessness Code enforcement Homeowner rehabilitation Non profit projects Workforce housing Housing vouchers, emergency housing and homeless assistance, housing information, non profit program funding, Federal funding coordination, partnerships April2, 2013 -21 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Service level 1 includes: • Reduction of 1 FTE • Continuation of all services • Continuation of Connection Point central call center • Contracting out rehabilitation programs • Re -assignment of staff • Only $ 287,000 of COBG funds for "sticks and bricks" Mr. Friedman advised the Staff has been reduced by 7% since FY2008-2009. The Department has been able to expand services, lead the regional effort on Homelessness and scored 100% on Housing Choice Voucher Management Assessment Program. Effective and efficient services • 7%/ 5 FTE Net staff reduction since 08-09 • Innovation through contracting out homeowner rehabilitation program in 13-14 • Expanded services without staff increase in 2011- 12 by absorbing commercial and recreational vehicle enforcement • Helping to lead the regional effort on homelessness • Efficient services — 100% score on Housing Choice Voucher management assessment program April2, 2013 -22 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Highlights of Expected Results • Cite 32,000 code violations • Repair or rehabilitate 37 owner -occupied homes • Assist 1,966 households with Tong -term rental housing assistance • Shelter 450 people during winter shelter program • Multiple other programs & services Below are the Department's significant issues. Significant Issues Overall Federal Funding Trend Sequestration /Housing Voucher Program Code Enforcement funding eligibility Housing System Study Housing Resource Center Contracting out Homeowner Rehabilitation programs April2, 2013 -23 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) The Federal Discretionary Funding Trend for the past 5 years continues to decrease. FY 2012-2013 funds are "Pre -Sequestration" and FY 2013-2014 will go down another $125, 000. Federal Discretionary Funding Trend- 5 years (FY 13-14 as shown is pre -sequestration) $5,000,000 CDBG HOME $4,000,000 -4------ $3,500,000 $3,000,000 -- ---- $2,500,000 ...; ----- 12,000,000 -.- - $1,500,000 $1,000,000 $500,000 -+-- 10 - FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 Sequestration — Housing Choice Voucher Program • Calendar -year funding • Started spending 1/1/13 • Funding level affected by many factors • Projected deficit has ranged from $O! (our latest one based on HUD formula received on 3/22/13); to $900,000. • Will provide City Manager with our best estimate later this month so that he can make a recommendation to Council if needed. April 2, 2013 -24 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Code Enforcement Funding Eligibility • Currently $735,000 of CDBG funding is used to support Code Enforcement • Have been using CDBG for Code Enforcement since 1989 • HUD questioned the eligibility of what we're doing in December; we responded in January • Awaiting HUD's determination • Could mean a need for additional City $$ to support Code enforcement The Housing System Study will be available within the next two weeks and will address the potential role of a Housing Resource Center. Housing System Study • Funded and contracted for by Hampton Roads Community Foundation (HRCF) • Consultant working to insure a product in mid- April for presentation to Council by HRCF • Study will define a desired system to most effectively prevent and end homelessness • Will address the potential role of a Housing Resource Center April2, 2013 -25- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Major "Your GIP Section Name" Projects Funded 3503000— Housing Resource Center Total Project Cost Year 1 Funding Project $Start and End Dates $23,620,591 $3,194,339 7/13-6/17 Mr. Friedman and the Staff are exploring ways to reduce the amount of City funds needed for the Housing Resource Center. Possible Non -General -Fund Housing Resource Center Funding Options • Major donors • Public fundraising campaign • Portion of building(s) could be permanent housing such as SRO with 80% of financing from non -city sources • Development partner obtains grants available for non -profits from State and private sources • Contributions and/or in-kind support from participating agencies April 2, 2013 -26- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Contracting Out Homeowner Rehabilitation Financing • Helping income -eligible homeowners finance housing improvements has been a core service of the department for 30 years • In-house delivery of it has gotten more expensive and more difficult • Conducted an RFP process — obtained two proposals • Have chosen Va. Beach CDC to conduct program • Allows re -direction of two staff persons — one to code enforcement and one to homelessness Critical Services NOT Funded 1. Housing Investment Trust Fund— would allow for: ➢ Reducing gaps in services provided by non- profits ➢Ongoing flexible funding to meet community needs — especially emergency housing for vulnerable people >Support for community groups to help homeowners April 2, 2013 -27 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Administrative Benefits of a HITF A HITF would create a process through which all public requests for housing development assistance from the City could be directed • Could eliminate need for separate Community Organization Grants for housing projects • Could eliminate direct requests from the public to Council for assistance with special projects estments in qualified Projects. The City provides funding to 10 non profits with support for ongoing operations and Homeless services. Critical Services Not Funded: 2: Funding Reductions to Non -Profits • Dept. provides funding to 10 non -profits to support ongoing operations and homeless services. • All funded agencies are getting decreases due to declining Federal funding. In addition, all new requests were denied. • Decreases will get larger once we reduce and re- balance the budget due to 5% sequestration reduction. • Total non -funded requests are $201,000 before additional 5% cut. April 2, 2013 I -28- CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN HOUSING & NEIGHBORHOOD PRESERVATION (Continued) Conclusions - and Thank You >Federal funding is a Tong -term problem but not a crisis >Dept. continues to innovate and provide effective services >Homeless Study will provide a guide for a more effective system ➢Housing Resource Center would be a major step forward in community effort to address homelessness Mayor Sessoms thanked Mr. Friedman for all of the hard work. April2, 2013 -29 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA 5:30 P.M. Mayor Sessoms introduced and welcomed Barry Frankenfield, Director — Strategic Growth Area. Strategic Growth Area Budget Workshop April 2, 2013 Barry Frankenfield Below is the Strategic Growth Area's Operating Budget. Mr. Frankenfield advised every special event comes thru the SGA Office. Strategic Growth Area Operating Budget rogram Unit FY 12-13 Amended Strategic Growth Area Mass Transit Operations Transportation Planning Resort Programs and Special Events Parking 3 072 715 5.0 62,329 FY 13-14 Proposed Change FY13 Amended to FY 14 Proposed 5.0 $ 593,339 5.0 $ 31,010 5.5% 5,062,679 0.0 6,005,624 0.0 942,945 18.6% 175,310 2.0 3,911,160 5.0 3,924,581 4.0 13,421 0.3% 6.0 624.369 20.3% Total $12,815,802 17.0 $14,395,938 17.0 $1,580,136 12.3% April2, 2013 -30 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) FY 2013-14 Budget ■ General Fund r" TIP 2 Parking Enterprise Budget by Fund 51,217,500 5692,863 8.5% 4.8% 51,117,424 10.596 -:: Personnel Debt Service Budget by Expense Category i Operations ■ Reserves and Transfers Below are the Department's significant issues. Hampton Roads Transit, Resort Management and Parking are the Department's 3 greatest issues. Strategic Growth Area Significant Issues ➢ Hampton Roads Transit: > Reduction in Federal Funding > Increased Service Costs > No change in basic services ➢ Resort Management: > Increased number of special event permits each year > Recovery of City support costs for major special events > Continue to manage vendor and franchise program and collect approximately $700,000 to support TIP Fund > Continue to support RAC, Parking Committee and other Resort Committees, Boards, and civic organizations ➢ Parking: > Implementation of Resort Parking Strategy Recommendations > Increase in Capital Funding contribution to support 25th Street Garage systems and system improvements such as revenue control systems and way finding systems April 2, 2013 -31 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) The Department completed all 8 SGA Plans and is transitioning from `planning" to" implementation ". The key component to each of the SGA 's is transportation. Strategic Growth Area FY 2013-14 Trends & Highlights ➢ Completion of all 8 SGA Plans, transitioning from planning to implementation: • Increased Capital Improvement Program support ➢ Additional planning services related to transit oriented development zoning and redevelopment ➢ Policies and methods to encourage fiscally feasible partnerships > Transportation: ➢ Cost of transit operations likely to continue to rise Paratransit demand will increase due to aging population ➢ Implementation of SGA transportation components such as grid, collectors; and, pedestrian and bicycle friendly streets ✓ Implementation of Complete Streets and multi -modal transportation initiatives • Regional transportation planning integrated with regional efforts such as Amtrak Service and recent Transportation Bill funding ➢ Management of Transit Extension Study (Light Rail) The City has seen a large increase in the demand for special events. Special Events are held year `round and are making the City a "year round destination ". Strategic Growth Area FY 2013-14 Trends & Highlights ➢ Resort: ➢ Increased demand for special events > Additional year round activities and events > Events continue to support overnight visitation ➢ Parking: > Transition from surface parking to structured parking > Short term loss of parking revenues during construction of structured parking during development of some projects > Parking partnership initiatives — leases, validation programs, shared parking programs > Structured parking development and management in all SGAs April2, 2013 -32 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) The Department's CIP is related to Economic and Tourism Development. Capital Improvement Program FY 2014 -FY 2019 Total Funding'" Economic and Tourism Development* * Includes $208,438,425 appropriations to date Capital Budget Proposed FY 2012-13 FY 2013-14 Difference din millions) (in mmiilions) (in niilians} Economic and Tourism $31.7 Development $32.3 $0.6 Economic and Tourism FY 2014 CIP Funding General Fund ■ TC SSD a;v1, Parking Enterprise ffi State r Cigarette BRAC 0.3% 8 Fund Balance m Bonds April 2, 2013 -33 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) $17,049,750 52.8% Economic and Tourism FY 2014 CIP Expenditures $351,323 1.1% 4.0% i Oceana & ITA W EDIP 62 Parking/Amp. Ma int. 18 SGA Projects +'+ Other Below are the CIP's program highlights: Economic and Tourism CIP Program Highlights > Governor's Budget includes 57.5 million for Oceana ITA Conformity & Acquisition > Revised projects for Newtown SGA - Parliament Greenwich Connector and Pembroke SGA - Cleveland Street Phase I > New Resort Projects for 29th Street, Arctic Avenue Parking Garage, Oceanfront Capital Projects Reinvestment, Winston Salem Avenue (Marina District) Improvements and Resort Public Transit Relocation (Resort Sense of Arrival included in SGA Projects CIP) > Burton Station projects (Phases I, II and III) funded > Maintenance funding for Oceanfront Parking Facilities, Town Center Garages & Plaza and Amphitheater > Economic Development Investment Program (EDIP) funding April 2, 2013 -34 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) The new projects in the CIP include Sandbridge Market restrooms, Winston Salem Avenue improvements, Resort Public Transit relocation, Arctic Avenue parking facility, just to name a few: Economic and Tourism Development CIP New Projects TotalProject Cost 9-001 Sandbridge Market Restrooms $351,323 $351323 9-006 Winston Salem Avenue Improvements $3,604,516 $865,000 9-007 Resort Public Transit Relocation $250,000 $250,000 9-095 Arctic Avenue Parking Facility $19,499,500 $9,749,750 9-096 Oceanfront Capital Projects $3,600,000 $600,000 Reinvestment 9-108 29th Street Improvements $3,200,000 $3,200,000 9-504 Parliament -Greenwich Connector $3,583,240 0 9-505 Cleveland Street Phase 1 $6,977,656 $660,000 Project Start and End Dates Note: New Pacific Avenue Improvements project proposed in Roadways CIP 7/13 — 6/14 7/13 — 6/16 7/13 — 6/14 7/13 —12/15 7/13 — 6/19 7/13 — 6/15 7/12 — 6/17 7/13-6/19 Below are the ongoing projects that are funded.: Project Economic and Tourism Development CIP Ongoin: Projects Funded 9-060 Oceana & ITA Conformity, and Acquisition 9-081 Strategic Growth Area Projects 9-082 Oceanfront Parking Facilities Capital Maintenance 9-083 Town Center Garage and Plaza Capital Maintenance 9-085 SGA -Burton Station Road Improvements Phase II 9-091 SGA -Burton Station Road Improvements Phase III 9-141 Economic Development Investment Program 9-500 Virginia Beach Amphitheater Capital Maintenance 9-506 Rosemont Strategic Growth Area Total Project Year1 Cost Funding Project Start and End Dates $139,451,692 $10,810,146 7/06 — 6/19 $17,674,686 $1,725,000 7/08 — 6/18 $5,231,671 $800,000 7/08 — 6/19 $3,386,622 $283,564 7/08 — 6/19 $3,250,000 $0 7/11— 6/15 $8,500,000 $0 6/12 — 6/15 $57,726,401 $2,763,689 -10/89-6/19 $1,699,000 $200,000 7/11— 6/19 $415,000 $0 7/12 — 6/19 -' April2, 2013 -35 - CITY COUNCIL'S BRIEFING FY 2013-14 RESOURCE MANAGEMENT PLAN STRATEGIC GROWTH AREA (Continued) Economic and Tourism Development CIP Projects Not Funded ➢ 9.100 - 19th Street Infrastructure Improvements $9,716,360 ➢ 9.101- Regent Village Main Street $9,576,000 ➢ 9.106 Market Street Extended $20,100,000 ➢ 9.107 Arctic Ave. 18th & 20th Street Improvements $10,196,880 The SGA office is working to transition from the Plan Development to Plan Implementation on each of the SGA 's, as well as work towards creating" a year-round Resort destination ". Economic and Tourism Development CIP Summary ➢ SGA CIP Projects are transitioning from plan development to plan implementation ➢ Advances the City's efforts of creating a year-round resort destination and supporting a business environment that promotes economic prosperity ➢ Provides a mechanism to safeguard the City's past investments and to maximize the useful life of these assets Mayor Sessoms thanked Mr. Frankenfield for all of the hard work. April2, 2013 -36 - ADJOURNMENT Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 6:02 P.M. Aman a Finley -Barnes, CHIC Chief Deputy City Clerk th Hodges Fraser, MMC City Clerk April2, 2013