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HomeMy WebLinkAboutAPRIL 9, 2013 MINUTESCITY COUNCIL MAYOR WILLIAM D. SESSOMS, JR., At -Large V/CE 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 AMELIA ROSS-HAMMOND, Kempsville - District 2 BARBARA M. HENLEY, Princess Anne District 7 JOHN D.MOSS, At -Large JOHN E. UHRIN, Beach - District 6 ROSEMARY WILSON, At -Large JAMES L. WOOD, Lynnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - .JAMES K. SPORE CITY ATTORNEY- MARK D. STILES CITY ASSESSOR - JERALD D. BANAGAN CITY AUDITOR - LYNDON S. REMJAS CITY CLERK RUTH HODGES FRASER, MMC CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA 9 APRIL 2013 CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: Ctycncl@vbgov.com I. CITY COUNCIL BRIEFINGS - Conference Room - A. HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT C. Mac Rawls, Chairman B. DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS Dr. James Koch, Professor of Economics, Old Dominion University II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. CITY MANAGER'S BRIEFING A. 2:00 PM - Conference Room - 3:30 PM FY 2013-14 RESOURCE MANAGEMENT PLAN (Budget) 1. SAFE COMMUNITY a. b. c. d. e. f. g• Clerk of Circuit Court 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 2. QUALITY PHYSICAL ENVIRONMENT a. b. Planning Public Works and Capital Improvement Program - Roadways, Buildings, Storm Water, Utility and Coastal VI. INFORMAL SESSION - Conference Room - 5:30 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. ROLL CALL COUNCIL C. RECESS TO CLOSED SESSION VII. FORMAL SESSION - City Council Chamber - 6:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. INVOCATION: Reverend Michael G. Daniels Senior Pastor, Enoch Baptist Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL and FORMAL SESSIONS March 26, 2013 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. PUBLIC HEARING 1. STARBUCKS CORPORATION at 31 OCEAN 241 Laskin Road (DISTRICT 6 — BEACH) I. ORDINANCES/RESOLUTIONS 1. Ordinance to ACCEPT and AUTHORIZE the transfer of property to the Development Authority re parking and mixed-use development at 19th, 20th Streets and Artic and Baltic Avenues 2. Resolution to SUPPORT Southeastern Public Service Authority (SPSA) after January 24, 2018, and PURSUE the development of a Regional Solid Waste Management System 3. Resolution to SUPPORT preservation of the Historic Cavalier on the Hill Hotel with incentives to Purchasers 4. Ordinance to AUTHORIZE the City Manager to EXECUTE a License Agreement with STARBUCKS CORPORATION re outdoor seating at 31 Ocean, 241 Laskin Road (DISTRICT 6 — BEACH) 5. Ordinance to AMEND Section 2-108 of the City Code re the City's employment probation period 6. Ordinance to AUTHORIZE the 2013 Housing Choice Voucher Annual Plan, including the Revised Administrative Plan, and the City Manager to submit same to the U.S. Department of Housing and Urban Development (HUD) 7. Resolution to APPOINT Dannielle C. Hall-Mclvor as Assistant City Attorney effective April 16, 2013 8. Ordinance to ACCEPT and APPROPRIATE a $109,175 Grant from Virginia Department of Health Emergency Medical Services "Four -for -Life" program to EMS re rescue equipment and medical supplies 9. Ordinance to APPROPRIATE $25,868 from EMS salvaged material sales re defibrillators for the Police 10. Ordinance to TRANSFER within the FY 2012-13 School Operating Budget to the School Technology Fund: a. $125,565 from the Instruction Classification b. $111,218 from the Administration Classification J. PLANNING 1. Application of ROVING AUTO, INC. and KRIST ENTERPRISES for a Modification of Conditions Nos. 2 and 5 (approved January 13, 2009) re motor vehicle sales and service to delete restrictions at 300 South Rosemont Road (DISTRICT 6 - BEACH) RECOMMENDATION: APPROVAL 2. Application of C. CHRIS MITCHUM and WILLIAM HOLDA/HOLDA ENTERPRISES, LP for a Conditional Use Permit re auto repair garage at 5898 Thurston Avenue (DISTRICT 4 — BAYSIDE) RECOMMENDATION: APPROVAL 3. Application of NICHOLSON PROPERITIES, LLC for a Change of Zoning from A-12 Apartment to Conditional I-1 Light Industrial re office -warehouse units at 405 Fountain Drive (DISTRICT 6 — BEACH) RECOMMENDATION: APPROVAL K. APPOINTMENTS AUDIT COMMITTEE HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE (HREDA) HEALTH SERVICES ADVISORY BOARD HISTORIC PRESERVATION COMMISSION HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION OLD BEACH DESIGN REVIEW COMMITTEE L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT PUBLIC COMMENT Non -Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 FY 2013-2014 RESOURCE MANAGEMENT SCHEDULE Presented by the City Manager April 16th April 18th April 23rd April 23rd May 7th May 14th Budget Workshop/Briefings Public Hearing Budget Workshop/Briefings Informal/Formal Session/Public Hearing Budget Workshop Reconciliation Vote on the Budget Conference Room VB Middle School Conference Room Council Chamber Conference Room Council Chamber 2013 CITY HOLIDAYS Memorial Day - Monday, May 27 Independence Day - Thursday, Jul)' 4 Labor Day - Monday. September 2 Veterans Dar - Monday, November 11 Thanksgiving Day & Day after Thanksgiving - Thr November 28 & Friday, November 29 Christmas Eve (half=da) - Tuesday, December 24 Christmas Day - Wednesday, December 25 sday, -1- VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 9, 2013 Mayor William D. Sessoms, Jr., called to order the City Council's Briefing regarding the HISTORIC PRESERVATION COMMITTEE, CAVALIER SUB -COMMITTEE REPORT, in the City Council Conference Room, Tuesday, April 9, 2013, at 2:00 P.M. Council Members Present: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer , Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross - Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood. Council Members Absent: None April 9, 2013 -2 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT 2:00 P.M. ITEM #62686 Mayor Sessoms introduced and welcomed C. Mac Rawls, Chairman, Cavalier Hotel Task Force. alier isk Poke ?offing to ttitrCity Council pril 9, 2013 Mr. Rawls stated the Members of the Task Force have been a real pleasure to work with and expressed his appreciation for all of their hard work. sk;Force.. Members • John Uhrin (Council Liaison) • Rosemary Wilson (Council liaison) • Steve Herbert (Deputy City Manager) • City Staff Support: — Mark Reed, Museums and Cultural Arts - Scott Ha), Economic Development Dana Harmeyer City Attorney's Office Stephen White,', Planning • Paige Pollard, Commonwealt Preservation Group' • Mac Rawls, Chair • Billy Almond • Tuck Bowie • Scott Cutchin • Doug Ellis • Logan Evans • Andrew Fine • Bernice Pope • Tim Stiffler • Susan Wynne April 9, 2013 -3 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Mr. Rawls advised the Task Force established the following two goals: To seek the historic preservation of the Cavalier Hotel and protection of its main viewsheds from encroaching development. • To seek to have the. Cavalier Hotel placed on the Virginia Historical Landmarks Register. The Cavalier Hotel consists of three parcels: (1) the largest parcel is where the hotel is actually located; (2) a smaller parcel located beside the largest parcel where a parking lot and tennis court are currently located and (3) the parcel that is across the street on the Oceanfront. The Task Force realized early there is nothing the City could do to stop a developer from purchasing the property and demolishing the hotel; however, they concluded the City should offer incentives to a developer that is willing to preserve the integrity of the property. April 9, 2013 -4 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Stephen White, Planning Department, assisted the Task Force with questions regarding Zoning. Zoning Considerations • City Manager`s February 1 letter tobMayorFan City Council summarized the zoning, development potential. AICUZ con;or:thiderations, and historic preservation options e three parcels. • The RT -1 District zoning regulatios` mituse"of the parcels west of Atlantic Avenuto a hotel/motel and associateduses • The Oceanfront Resort (OR) District Form -Based',, Code allows a mix of_uses based on Street Frontage and Building Types. Provides a higher degree of flexibility. April 9, 2013 -5- CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Zoning Considerations • Based on inquiries regarding RT -1 zoning from potential bidders, City Manager provides further information to CBRE (Broker) via letter dated March 29. • Additional information clarifies the number and mix of `lodging units' and `dwelling' units' that can be developed on the two RT 1 parcels. 7 Mr. White advised he defined the definition of "Hotel ": Zoning Considerations • Hotel - A building or group of attached or` detached buildings containing dwelling or° lodging units in which 50 percent or more of the units are lodging units • Up to 15% of the total; allowable density may be `dwelling units'; however those units, as part of a hotel, must be functionally integrated with all of the other` components of the hotel (entire site considered a hotel - site cannot be subdivided for fee -simple lots), and F — The number of dwelling units built at any onetime must include an equal number of lodging units. April 9, 2013 -6 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Mr. White advised that Zoning, under the Oceanfront Resort District, would provide greater protection for adjoining residential areas and greater flexibility regarding site layout, land use and building form. Zoning Considerations Any development type other than hotel/motel will require a rezoning of the Site to Oceanfront Resort (OR) District: - OR District is designed to implement the recommendations of the Resort Area SGA: - OR District provides. greater protections for adjoining residential"areas (Le., , buffers, lighting, setbacks, uses), and - OR District provides greater flexibility in regard site layout, land uses, and building form. April 9, 2013 -7 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Steve Herbert, Deputy City Manager, provided the Task Force's proposed INCENTIVES to offer a developer in hopes of maintaining the integrity of the Hotel: ProposedIncentives i. Support for historic tax credits, through official designation on the National Register of Historic Places or Virginia Landmarks Register, o't certification by the Virginia Department of Historic Resources; ii. Targeted local tax relief through City Council action (i.e., real property, business license, business property, etc.) iii. Cost participation for necessary roadway,, utility, stormwater, and other related infrastructre improvements; iv. Cost participation in the potential extension of the existing public Oceanfront Boardwalk to include the Oceanfront Cavalier property Cost participation in project design and master planning; Providing local,economic development grants base upon new job creation and investment (as further described on the Internet at http://www.yesvirginiabeach.cqm/doing-business-in-. virginia-beach/pages/incentivesaspx) vii. Assistance with Obstruction Evaluation (OE) submission to Federal Aviation Administration (FM) as required by the City Zoning Ordinance; and viii. Fast tracking of permitting process for site development and construction permits. April 9, 2013 -8 - CITY COUNCIL'S BRIEFING HISTORIC PRESERVATION COMMITTEE CAVALIER SUB -COMMITTEE REPORT ITEM #62686(Continued) Additional Incentive (Rezoning) • For developers willing to redevelop the hotel property in accordance with the City's goals as set forth in this resolution, City Council will consider an application for a Conditional Change of Zoning from RT -1 to OR Oceanfront Resort District. And further: • The City Manager will establish an ad hoc staff committee that will, prior to a potential purchaser bid (April 25): - Confidentially review and evaluateprospective plans of development that a potential purchaser makes available and, — Inform the submitting party of staffs analysis of the plan with regard to its compliance with the City's goals for the future use of the property, which may result in:the City's support of an application for such a conditional ctiange`of zoning. Deputy City Manager Herbert provided the next steps: Next Steps • Ad hoc group of senior staff will meetwith prospective bidders from today until the 23" • April 25 Prospective purchasers submit bids for parcel(s). ;{ • CBRE and Receiver review bids and accept during May. • To proceed as described, approval of the proposed Resolution'is recommended.' Mayor Sessoms thanked Councilman Uhrin and the entire Task Force for their hard work on this project. April 9, 2013 -9 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS 2:30 P.M. ITEM #62687 Mayor Sessoms introduced and Dr. James Koch, Professor of Economics — Old Dominion University. Dr. Koch stated the Briefing will focus on defense spending reductions. Virginia B Jame 9 Apr Pa. The State of the Region report would not appear without the vital backing of the generous private donors whose names appear below. They believe in Hampton Roads and in the power of rational discussion to improve our circumstances. The Aimee and Frank Batten, Jr. Foundation Hampton Roads R. Bruce Bradley Chamber of Commerce Ramon W. Breeden, Jr. Kaufman and Canoles Arthur A. Diamonstein George Dragas, Jr. Thomas Lyons Patricia W. and J. Douglas Perry Anne B. Shumadine THE STATE QF April 9, 2013 -10 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Below is a summary of the Briefing: am going to focus on defense spending, but then briefly also talk about the port and tourism (the other two of our Big Three). Next, I'll respond to your questions (though I hope you won't hesitate to interrupt me as we're going along if you have a question or a topic needs amplification). Virginia Beach has the lowest Unemployment Rates for February 2013 in the Region which are significantly lower than the national rate. Some Context: Unemployment Rates: Feb. 2013 U.S. Virginia Hampton Roads Chesapeake Hampton Newport News Norfolk Portsmouth Suffolk Virginia Beach 7.9% 6.2% 6.8% 6.0% 8.0% 7.7% 8.1% 7.9% 6.6% 5.8% April 9, 2013 -11- CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687 (Continued) As evidenced below, Defense is the largest economic driver for the Region: Our Regional Economic Drivers Port The Regional Economic Drivers identified below are in `Billions. Defense Spending has skyrocketed since September 11, 2001: Defense Spending in Hampton Roads (billions of $$) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e April 9, 2013 -12 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Defense Spending Dependency Has Increased in Hampton Roads 5% 33.41, iWM o a S S i i i i i i o i o i i i g o Ii a i 8 8 i l g r R o The Commonwealth of Virginia is heavily dependent on Federal Spending compared to the rest of the nation: Federal Expenditures as Pct. Of GDP Figure 6: Federal Direct Expenditures ass Percentage of GDP, 2000 to 2010 30 2002 2004 2000 Federal Focal Yea' Sour_ _ensus_<ausoJw'a+zii aterJfwbs cepa t(sele:ter, ya,Ct Sh„fang wo,i:ates rxz.,rxis. 2010 April 9, 2013 -13 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Sequestration is not impacting the rest of the nation like it is in the Hampton Roads Region. Sequester Cuts in Perspective c7 003 T6,003 T5,000 4- t-4,000 0 000 i2000, T1,000 Sequester •Srirg,i, g edsal tneirti 2012 21)13 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Military Employment fell; however, Military Compensation has grown 67% in the past ten years: Growth in Employment and Total Compensation (Wages, Salaries and Fringe Benefits Milita Federal Civilian Government and Private Nonfarm Sectors Employment Classification Percent Change 1991-2000 Percent 2001-2011 Military Employment Military Compensation Federal Civilian Government Employment Federal Civilian Government Compensation Private Nonfarm Employment Private Nonfarm Compensation -21.3% 13.2% -20.6% 13.3% 21.4% 68.0% -15.6% 67.0% 15.9% 71.2% 5.9% 40.6% April 9, 2013 -14 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Below is the Defense and Non -Defense Cuts from Sequestration. The Region has approximately 35,650 Civilian Department of Defense Employees, plus 15,690 Civilian Non Department of Defense, which total approximately 51,340 Civilian Federal Employees. Defense and Non -Defense Cuts from Sequestration Estimated Impact on Hampton Roads for 2013 Total non-DoD Spending DoD-related Spending Total Estimated Impact Total Effect (direct+ indirect) $159.4 million $970.1 million i• Represents an 8% reduction in total compensation in FY2013 for 15,690 employees (furloughs) Funding for teachers, schools, law enforcement, child care, head start, job search assistance, etc. • Cancellation of ship maintenance for 11 ships in Norfolk and several project deferments/delays, etc. $1,129.5 million Sequestration: The Bottom Line Real GRP Job Gains or Losses TH Estimated Impact on Hampton Roads throughout 2013 nuary-20 Estimates fo 013 Economic Growth in our Region, Prior to Sequestration 1.68% -1.31% +0.37% -9,694 -4,487 (-0.6%) April 9, 2013 -15 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) What Can Be Cut • The Budget Control Act of 2011 prohibits cutting active duty military personnel (we have about 95,000 in Hampton Roads), but civilian DOD personnel are fair game (we have 39,000). • FY 2013 is almost one-half over; it will be difficult to cut $43+ b. in six+ months. • Many other areas of federal spending (social security payments, many things in the DOJ, etc.) are exempt from cuts. • This means that the remaining categories will really feel the axe. • Hence, civilian DOD employees (14 furlough days through Oct. 1st) and ship construction, repair and maintenance are especially vulnerable. April 9, 2013 -16 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Approximately $22 -BILLION was cut in FY2011 and FY2012: Defense Base Budget, FY09 to FY21 1. 500 0 v Baseline Change FY13 - FY21: $4833B Full Sequestration FY13— FY21: $482.5B Total Change FY13 — FY 21: $966.2B Sequestration Impact for FY13 is 542.5B and 512.58 in FY14 FY09 FY10 FY11 FY12 P113 FY14 FY15 FY16 FY17 FY18 P119 FY20 P121 —FYDP12—FYDP13 --- Sequestration Likely Cuts (Many Already Occurring) • Major reductions in DOD civilian employment (the 39,000 furloughed one day per week, 14 weeks) • Ship repair and maintenance delayed or cancelled (Theodore Roosevelt, refueling; Abraham Lincoln, 3 -year overhaul at Newport New Shipyard) • Diminished procurement • Fewer ship deployments (Harry S Truman) • Longer deployments • Cancelled contracts April 9, 2013 I] -17- CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) What is Virginia Beach's Share of the Cuts I've Outlined? • Virginia Beach's share of the decline in income (and this is the critical measure) will be about one-third of the total and probably will be larger than the losses experienced by Norfolk. • Norfolk hosts lots of jobs, but doesn't receive the income from those jobs. Virginia Beach often does. Virginia Beach is made up of 53% of Citizens that work and live in the City: April 9, 2013 WNERE FE4PxE LIVE AND WORK IN HAMPTON ROADS: 40 4009 11111• Way ki Mend IM Ihen 41 Ids lien b Where These Workers Lire (Percent) 1 OU 7WI i Ha( ihk, Sin, I. IA (Lee 1• 'I %lse { llodi to ►smi 1 SI%l Xtl IY s OA Corr 1,051 I al% 1 301 0.17 OA% 1A 13% L4 1 711 € O. at% 0. On 7.1% O3% 2l hls el* Golf75Oen,717 17,110 0.4 1.77 at% 7.1% 1.1% I 15% 4.97 E4 IA 113% 427 IIA% 1.E% 0.1% 71 kw Cik 1 3.17 OA an a9% a4 13% U% 116.4 27 ill 077 I.I% OA 7.1% 7.91 23. twrt 1,543 ISA% 0.1% 1.3% I 535' aa% I.S% 1.1% 127 1.13, 017 0.3% 0n 047 114% on it 31190.1, 779E 2.65 17% 1 14 0.4 0t.I' 717 337 1117 S3% 1 LA 114 3.77 2.4 14 04 3 9416ny 19)711 6A% 127 1 10.41 On 0A 1"2.?'. IN LI% 1927 IA 7.4 13% 1.4% 3.17 11% It Draere *1331 03% IA 1 114 0.17 0.0% i 037 1.17 1 7.4 101% 0.1% 1.4% 45% 77)% 111% 1 16 R4e9e4 SLIS3 In 727 1 1.1% 0R 0.0% i 54% 4.4% ILA 50% LI% 7.7 1 211 6.57 6.3% it kcM1 M 10,174 315 15% 1 3.01 04% 0.4 1.47 3.4 164 1.97 147 73% Sax 407 1117 14 b4* 16,050 031 1193. 1163. 0.1% a H.4 1 7413. 317 1 7.4 775. 9I% I 74% 311 76111 01% 13, hers• 2,17J 7.1% 13% 1.4 0.4 110% 1 11191 i 1.6% 114 j IS c IA 351" f 1d% { O. 3116 O71 10 Maxi 32.95 03% IA 04 LS% 017 0.17 0.1%_ OR ( 05% ( 111% 16% 11% 1104% 01% 7.t`, 0.7% 114 111% 11 03% 1 OA 1119% 7.7% 19I 43% al% EA 347; 77. 111% Il. SRA 73,701 0.07 w 157311 , OA 1 045 097 1117 110% 1 0.5% 1 1137 111% 711 j 11.1% 1113. 327 I347 01% 13 Maki 14,140 1 S.S% 04% 37.4 1147 a4 i ion u% 71% IEA 1 L an 13% 1 IA 19% I9. April 9, 2013 -18 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Virginia Beach's Vulnerabilities • In the short term, Virginia Beach will suffer from DOD spending cuts, but these cuts, while difficult, will be tolerable. • In the longer term, however, Virginia Beach is susceptible to significant reductions in DOD spending because: (1) the repositioning of aircraft carriers; (2) the possible de -emphasis of aircraft carriers in our nation's future military strategy; and, (3) the spiraling cost of major weapons systems. (1), (2) and (3) point to the loss of air wings at Oceana Naval Air Station. Dr. Koch advised the Country could not sustain the increase in weapons costs and fewer "major assets" will mean fewer active duty military and civilian personnel: Some Perspective on Rising Weapons Costs • In 1945, a new P-51 Mustang cost $40,000. In 2010, a new F/A-18 Super Hornet deployed at Oceana cost $66,000,000. • Thus, the cost of a front line fighter aircraft has risen an average of 14.4% annually, 65 years in a row. • The bottom line is that the DOD will not be able to afford to buy as many aircraft in the future (nor as many aircraft carriers and submarines). • Fewer "major assets" likely will mean fewer active duty military and civilian personnel. April 9, 2013 -19- CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Hampton Roads has not done very good in job creation since 9/11: Greater Long Term Danger: Lagging Civilian Employment in Our Region That Has Yet to Recover to 2007 Levels (000s of jobs) 800 - 775 - 750 - 725 700 706.8 675 - 650 730.6 733.9 737.6 720.4 775.3 760.8 767.3 766.4 749.8 740.8 742.1 735.2 736.8 1 1 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Our Employment Growth Has Lagged Other Regions AREA ] 2003-07 Hampton Roads 37.7 (+5.11%1 Charlotte 96.0 (+12.55%) Jacksonville 70.7 (+12.55%) Raleigh-Durham 116.1 (+16.68%) Richmond 45'4 (+7.72%) U.S. 7,599.0 (+5.85%) 263.9 Virginia I (+7.55%) (-3.28%) (+4.02%) Sources: U.S. DePaJenent of Lobo, CES saasonolly tthadle:red data and the Old Dortnnoon University Economic forecasting Project 2007-10 - 40.1 .... (-5.17%) - 53.7 (-6.24%) -50.8 (-8.01%) -43.0 (-5.29%) -30.9 (-4.88%) -7,724.0 (-5.61 %) -123.3 2003-2010 -2.4 (-0.33%) 42.3 (+5.53%) 1 9.9 ...... (+3.53%) 73.1 (+10.50%) 14.5 (+2.47%) _. -125.0 (-0.10%) 140.6 April 9, 2013 -20- CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Military Compensation will not go up 97% in this decade as in the last decade: Estimated Average Total Compensation (Wages, Salaries and Fringe Benefits) Selected Categories Military Federal Civilian Govt. Employees State and Local Govt. Employees Private Sector Earnings in 2001 Earnings in 2011 Percent Increase $56,811 $112,436 97.9% $70,742 $104,504 47.7% $38,730 $54,009 39.5% $32,988 $43,783 32.7% • The three legs that support our economic stool in Hampton Roads are defense spending, the Port of Virginia and tourism. • We've just talked about defense spending. Let's take a quick look at the port and tourism ---both of which are influenced by defense spending. April 9, 2013 -21 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) The Port of Hampton Roads can accommodate larger ships with the "deep draft": Millions of Toru General Cargo Tonnage at the Port of Hampton Roads 20 18 16 14 12 10 8 6 4 2 0 17.83 17.53 General Cargo Tonnage increased by 12.2% in 2012 — N N Q 0 ! h W W W W W W W W W W W O O O O O O O O O W W W W F a d N N N N N N N N N N 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Market Shares, Total Loaded TEU Containers, Selected Ports on the East Coast Market share of Hampton Roads increased from 14.88% in 2011 to 16.12% in 2012; but it is still below its peak share of 16.78% in 2007 2006 2007 2008 2009 2010 2011 2012 /Savannah ! Hampton Roads s Charleston to New York/N12 April 9, 2013 -22 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Why Did We Have Such a Substantial Increase in Cargo in 2012? • Norfolk Southern's new rail service to Greensboro and expanded volumes on its Heartland corridor to the Midwest • CSX started on -dock service to APM Terminals in January 2012 • Larger ships coming to the port: our deep draft advantage • Two new "First -In" and two new "Last -Out" Services • Growth of new business from economic development efforts • 7.5% increase in vessel calls (above factors, recovering economy) VPA/VIT Historical Operating Cash Flow Statement 2007 to 2012 (In $ Millions) 2007 2008 2009 2010 2011 2012 Operating Income $ 10.8 $ 4.6 $ (20 5) $ (18.5) $ (20.0) $ (11.3) Depreciation* $ 38.1 $ 40.6 $ 44.0 $ 48.6 $ 50.6 $ 49.2 Cash Flow from Operations $ 48.9 $ 45.2 $ 23.5 $ 30.1 $ 30.6 $ 37.9 Debt Service $ (50.0) $ (48.4) $ (44.8) $ (43,0) $ (46.2) $ (49.9) Cash Flow after Debt Service $ (1.1) $ (3.2) $ (21.3) $ (12.9) $ (15.6) $ (12.0) Commonwealth Pork Fund $ 36.5 $ 36.0 $ 32.7 $ 32.8 $ 34.7 $ 36.3 (CPF)--State Contribution Adjusted Cash Flow $ 35.4 $ 32.8 $ 11.4 $ 19.9 $ 19.1 $ 24.3 April 9, 2013 -23 - CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) REVPAR in Selected Markets 2007 2012 Percentage Change Virginia $61.96 $57.12 -7.80% USA $65.56 $65.17 -0.60% Hampton Roads $52.90 $47.63 -9.96% Myrtle Beach Ocean City Coastal Carolina $54.10 $51.44 -4.91% $71.60 $68.80 -3.91% $55.83 $55.09 -1.32% Virginia Beach $64.73 $66.10 +2.12% Norfolk/Portsmouth $54.05 $48.12 -10.97% Newport News/Hampton $41 49 $35 85 -13.590%a Chesapeake/Suffolk $52.90 $42.96 -18.79% Williamsburg $47.48 $36.95 -22.18% TH Dr. Koch advised the "Historic Triangle" is seeing substantial decreases in overnight hotel stays. Tthe City of Virginia Beach is up approximately 5%: Hotel Market Shares, Hampton Roads, 1999 and 2011 "Virginia Beach .Williamsburg "Chesapeake/Suffolk uHampton/Newport Neve Norfonc/Portsmouth April 9, 2013 -24- CITY COUNCIL'S BRIEFING DEPARTMENT OF DEFENSE and SEQUESTRATION IMPACTS ITEM #62687(Continued) Mayor Sessoms thanked Dr. Koch for the informative presentation. April 9, 2013 -25- CITY COUNCIL LIAISON REPORTS 3:13 P.M. ITEM #62688 No City Council Liaison Reports. April 9, 2013 -26- CITY COUNCIL COMMENTS 3:13 P.M. ITEM #62689 Councilman Dyer expressed his appreciation to Staff for attending last night's Town Hall meeting at Tallwood High School. Council Lady Ross -Hammond also attended. Approximately 60 Citizens attended the meeting and it was well received. ITEM #62690 Councilman Moss expressed his concern regarding Staff's review of the Cavalier Hotel recommendations. He hopes the recommendation would be back to City Council until after the Budget has been passed. The Budget deserves and requires the City Council 's due diligence as there is so much work involved. ITEM #62691 Council Lady Ross -Hammond expressed her appreciation to Mayor Sessoms for attending her first meeting with the Kempsville residents. Everyone enjoyed coffee and conversation with the Mayor. ITEM #62692 Mayor Sessoms advised Admiral Gortney was kind enough to invite all of the First Responders to Oceana Naval Base on Sunday afternoon in remembrance of last year 's F18 Crash. The City was well represented. April 9, 2013 -27- AGENDA REVIEW SESSION 3:20 P.M. ITEM #62693 BY CONSENSUS, the following shall compose the CONSENT AGENDA: L ORDINANCES/RESOLUTIONS 1. Ordinance to ACCEPT and AUTHORIZE the transfer of property to the Development Authority re parking and mixed-use development at 19th, 20th Streets and Artic and Baltic Avenues 2. Resolution to SUPPORT Southeastern Public Service Authority (SPSA) after January 24, 2018, and PURSUE the development of a Regional Solid Waste Management System 3. Resolution to SUPPORT preservation of the Historic Cavalier on the Hill Hotel with incentives to Purchasers 4. Ordinance to AUTHORIZE the City Manager to EXECUTE a License Agreement with STARBUCKS CORPORATION re outdoor seating at 31 Ocean, 241 Laskin Road (DISTRICT 6 — BEACH) 5. Ordinance to AMEND Section 2-108 of the City Code re the City's employment probation period 6. Ordinance to AUTHORIZE the 2013 Housing Choice Voucher Annual Plan, including the Revised Administrative Plan, and the City Manager to submit same to the U.S. Department of Housing and Urban Development (HUD) 7. Resolution to APPOINT Dannielle C. Hall-Mclvor as Assistant City Attorney effective April 16, 2013 8. Ordinance to ACCEPT and APPROPRIATE a $109,175 Grant from Virginia Department of Health Emergency Medical Services "Four -for -Life" program to EMS re rescue equipment and medical supplies 9. Ordinance to APPROPRIATE $25, 868 from EMS salvaged material sales re defibrillators for the Police 10. Ordinance to TRANSFER within the FY 2012-13 School Operating Budget to the School Technology Fund: a. $125,565 from the Instruction Classification b. $111,218 from the Administration Classification Councilman Moss shall vote a VERBAL NAY on Item #1 Council Lady Henley shall vote a VERBAL NAY on Item #2 Councilman DeSteph shall ABSTAIN on Item #3 ALTERNATE VERSION Item #3 April 9, 2013 -28- AGENDA REVIEW SESSION ITEM # 62693 (Continued) BY CONSENSUS, the following shall compose the PLANNING BY CONSENT AGENDA: J. PLANNING 1. Application of ROVING AUTO, INC. and KRIST ENTERPRISES for a Modification of Conditions Nos. 2 and 5 (approved January 13, 2009) re motor vehicle sales and service to delete restrictions at 300 South Rosemont Road (DISTRICT 6 - BEACH) 2. Application of C. CHRIS MITCHUM and WILLIAM HOLDA/HOLDA ENTERPRISES, LP for a Conditional Use Permit re auto repair garage at 5898 Thurston Avenue (DISTRICT 4 — BAYSIDE) 3. Application of NICHOLSON PROPERITIES, LLC for a Change of Zoning from A-12 Apartment to Conditional I-1 Light Industrial re office -warehouse units at 405 Fountain Drive (DISTRICT 6 — BEACH) Item #1 shall be considered separately Item #3 shall be DEFERRED INDEFINITELY April 9, 2013 -29- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN CLERK OF CIRCUIT COURT 3:27P.M. ITEM #62694 Mayor Sessoms introduced and welcomed Tina Sinnen — Clerk of Circuit Court. Mrs. Sinnen expressed her appreciation to City Council for their continued support of the Circuit Court Clerk's Office. Va. Beach Clerk of the Circuit Court Mrs. Sinnen is pleased to announce her Budget has only increased 0.6%, all the while her Staff continued to perform core services to the City with 100% focus on quality customer service. "Va. Beach Circuit Court Clerk's Office " Operating Budget FY 32-13 Amended 3 14 iposed Change FY 13 Amended to FY 14, Proposed Clerk of the Circuit Court $ 3,039,771 S 57.0 $ 3,058,205 57.0 $`18,434 0.6% Total $ 3,039,771 57.0 $ 3,058,205 57.0 $18,434 0.6% April 9, 2013 -30 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN CLERK OF CIRCUIT COURT ITEM #62694(Continued) Mrs. Sinnen advised her office has seen a significant increase in Concealed Weapons Permits. Her office processed over 1,000 permits in January. Clerk of the Circuit Court FY 2013-14 Budget ■ General Fund Budget by Fund Personnel • Operations Budget by Expense Category Mrs. Sinnen advised her office continues to be an "Excess Fee Office" for the Commonwealth, collecting approximately $2 -MILLION this Fiscal Year. FY 2013-14 Organizational Structure • Clerk of the Circuit Court has one program (budget) unit with 57.0 total FTEs. • As of 4/2/13, 56.0 are filled and 1.0 are vacant. Mayor Sessoms thanked Mrs. Sinnen for all of her work, and that of her Staff. April 9, 2013 -31- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN COMMONWEALTH'S ATTORNEY 3:35 P.M. ITEM #62695 Mayor Sessoms introduced and welcomed Harvey Bryant — Commonwealth's Attorney. Mr. Bryant expressed his appreciation to City Council for their continued support of the Commonwealth's Attorney Office. Office of the Commonwealth's Attorney Budget Workshop April 9, 2013 Harvey Bryant, Commonwealth's Attorney Mr. Bryant is pleased to announce his Budget has only increased 2.5%, which includes hiring a full time Receptionist. Office of the Commonwealth's Attorney Operating Budget Judicial Victim -Witness Grant DEA Seized Property (12-13" FY 13-14 FTE Proposed Change FY 13 Amended: fTE to FY 14 Proposed 57,488,249 78.75 $ 7,692,485 79.75 "' $ 204,236 '+ $333,680 6.5 $333,680 6.5 $0 0 % $200,000 Total Total without DEA $8,021,929 85.25 $8,226,165 86.25 $204,236 2.5% $7,821,929 85.25 ' ' $8,026,165 86.25 April 9, 2013 -32- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN COMMONWEALTH'S ATTORNEY ITEM #62695(Continued) Below are the Commonwealth's Attorney significant issues: Office of the Commonwealth's Attorney Significant Issues ➢ Handled over 17,500 criminal charges last fiscal year ➢ Due to the increase in the use of forensic science and technology, cases are becoming more complex, requiring more time for advanced case preparation ➢ Due to ever-changing case law, attorneys are spending more time reading and researching to be thoroughly prepared for court ➢ As a result of the DUI laws becoming more complicated our attorneys are assisting in all 2nd offense DUI cases and many 1' offense DUI cases (as well as other special assist cases) ➢ The office prosecuted: ➢ 4,900 felony property crimes committed by 1,480 defendants ➢ Over 2,040 various violent crimes committed by 570 defendants ➢ Over 1,580 various felony drug offenses committed by over 600 defendants April 9, 2013 -33- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN COMMONWEALTH'S ATTORNEY ITEM #62695(Continued) Mr. Bryant advised DUI Laws are more complicated and his office does not receive funding credit to prosecute IS` and 2"d Offense DUIs: Office of the Commonwealth's Attorney Significant Issues (continued) ➢ Although not statutorily required, the office prosecuted: > Over 2,250 domestic violence charges > Over 840 misdemeanor DUI related charges ➢ Over 3,000 criminal city misdemeanor appeals ➢ Just last week, the Commonwealth's Attorney's Office handled: > 248 felony cases in Circuit Court > 45 bond hearings; 23 bond appeal hearings; 3 detention hearings > 158 determination of counsel hearings ➢ 107 sentencing hearings > 54 preliminary hearings > 97 revocation hearings > 192 individual indictments (449 charges) from the March 2013 Grand Jury Mr. Bryant advised the City Treasurer's Office was recently awarded the contract to collect Delinquent Fines and Costs, which is expected to generate an additional $1 -MILLION in Revenue to the City. The Treasurer's Office can send a "Treasurer Lien" and avoid having to file suit in the General District Court to proceed in collections against individuals: Office of the Commonwealth's Attorney FY 2013-14 Trends & Highlights > State revenues to the city on behalf of our office have increased by $139,000 or 5.8% for FY 14 and will increase another $33,080 in FY 15. D. A full time receptionist will ensure continuity in this crucial position, as this employee is the first encounter for all citizens that contact our office. Currently we fund this position with vacancy savings through contracted manpower which results in frequent turnover. The additional cost is less than $10,000 annually. > Departmental health insurance increased by $195,000 representing nearly 2% of the overall increase of 2.5%. > Through attrition, retirements and hiring more entry level employees we have been able to meet target. April 9, 2013 -34- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN COMMONWEALTH'S ATTORNEY ITEM #62695(Continued) Mr. Bryant stated, due to the City's continued support over the years, his office has professional, well prepared Prosecutors able to represent the State, City and Citizens alike. Conclusions The proposed city budget for the Commonwealth's Attorney's Office will enable the City of Virginia Beach to continue to have: >Higherthan the national average conviction rates >A continued decrease in crime rates (in part due to successful prosecution) >The ability to keep pace with advanced legal practices and technology >More prosecutorial assistance in complicated misdemeanor cases Ensuring a safe community for citizens and tourists Mayor Sessoms thanked Mr. Bryant for all of his work and that of his Staff. April 9, 2013 -35 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY COMMUNICATIONS, CITIZEN SERVICES and CAPITAL IMPROVEMENT PROGRAM 3:50 P.M. ITEM #62696 Mayor Sessoms introduced and welcomed Athena Plummer, Director — Emergency Communications & Citizens Services. Emergency Communications & Citizen Services Budget Workshop April 9, 2013 Athena Plummer, Director Director's Office Administration Training Emergency Communications Citizen Services Technology & Support Total ECCS Operating Budget FY12-13 Amended: FY 13-14 Proposed $ 211,254 1.75 $ 223,412 397,244 4.0 46,896 NA 7,883,391 102.0 8,051,360 107.0 885,099 14.0 1,025,956 1.0 1,044,840 1.0 Change fY 13 Amended to FY 14 !' Proposed 1.75 $ 12,158 5.8% 365,795 4.0 (31,449) (7.9%) 46,896 793,560 14.0 0% 167,969 2.1% (91,539) (10.3%) 18,884 1.8% $10,449,840 122.75 $10,525,863 127.75 $76,023 0.7% April 9, 2013 -36 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY COMMUNICATIONS, CITIZEN SERVICES and CAPITAL IMPROVEMENT PROGRAM ITEM #62696(Continued) Ms. Plummer advised City Council the majority of the Budget is dedicated to salaries: FY 2013-14 Budget $141,396, 1.3% Budget by Fund or Revenue s General Fund State wireless Fund ■Transfers Budget by Expense Category Personnel E Operations Recruitment and retention of workforce continue to be a challenge, as well as 9-1-1 call overload and the costs to upgrade technology: ECCS Significant Issues ➢ Recruitment & Retention of Talented/Qualified Work Force ➢ Competitive Salaries in a Shift Work Setting ➢ Unique Training & Work Environment ➢ Competition with Private Sector ➢ 9-1-1 Call Overload ➢ Mobile devices call overload on a single incident ➢ Increases Work Load for 911 Employees ➢ Queue Times ➢ Citizen Feedback for "Being on Hold" ➢ Technology Costs to Upgrade ➢ 311 CRM (Interactive with 911 systems) ➢ Next Generation 911 (NG911) Costs April 9, 2013 -37- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY COMMUNICATIONS, CITIZEN SERVICES and CAPITAL IMPROVEMENT PROGRAM ITEM #62696(Continued) Ms. Plummer provided 9-1-1 Trends & Hightlights: ECCS FY 2013-14 Trends & Highlights > Staying Connected through Emerging Technologies ➢ NG911/CRM/Automatic Notifications to partners, citizens through systems ➢ Personnel Impacts — retention/training/workload ➢ Better, faster, valid delivery of information to partners ➢ Financial Impact — the cost to improve ➢ GIS — it's all about location Ms. Plummer provided the critical services not funded, which include 14 additional personnel and technology improvements: Critical Services NOT Funded • Personnel (14) — Administrative Technicians (2) — 911 Operations Supervisor (4) — PSET I entry level (8) • Ops Improvements — CRM (311 one stop software solution) — Emergency Response Consoles (911 rapid mobile deployment as a backup) April 9, 2013 -38- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY COMMUNICATIONS, CITIZEN SERVICES and CAPITAL IMPROVEMENT PROGRAM ITEM #62696(Continued) Below are the projects funded: Major ECCS Projects Funded Totaled Cost 8872 ALI Database Management & Selective $2,007,876 Routing #728 E911 Telephony Integration Replacement #739 Integrated Public Safety — Analysis $10,839,768 #742 VBAlert Replacement $435,859 $1,317,744 Conclusions Our greatest need is the continued recruitment and retention of a well trained and qualified work force. Our employees are our greatest asset. The reality we face as the economy turns, and employment opportunities increase, serves as a challenge to retain and recruit employees who are faced with factors considered negative in most work environments: shift work, required overtime, stagnant salaries and a demanding workload. Mayor Sessoms thanked Ms. Plummer for her hard work and that of her Staff. April 9, 2013 -39 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY MEDICAL SERVICES (EMS) 4:15 P.M. ITEM #62697 Mayor Sessoms introduced and welcomed Bruce Edwards — Chief Emergency Medical Services (EMS). Emergency Medical Services Budget Workshop April 9, 2013 Chief Bruce W. Edwards VA BEACH* EMS Chief Edwards advised City Council his budget has increased 10.22%for FY2013/2014. Most of the increase is in operations and training: Emergency Medical Services FY 12-13 FY 12- FY 13-14 Amended 13 FTE Proposed Change Fv 13' Amended to FY Proposed $ 672,465 8.5 $122,297 22.22% Operations/Training $5,325,517 49.5 $6,072,189 51.5 $746,672 14.02% Regulation /Lifeguard $1,847,296` 9.3 Services State Grants Total $375,000 0.0 $8,097,981 65.3 $1,806,284 9.3 $375,000 0.0 $8,925,938 69.3 $827,957 10.22% (41,012) 2:22% 0 0% April 9, 2013 -40 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY MEDICAL SERVICES (EMS) ITEM #62697(Continued) 95.8% of the of the Department 's budget is from the General Fund with 57.9% dedicated to EMS/ERS Personnel: FY 2013-14 Budget $375,000, $8,550,938 95.8% • General Fund ' Grants Consolidated Fund -State Four for Life Grant Budget by Expense Category Budget by Fund $1,635,641 18.4% VA BEACH* EMS EMS / ERS Personnel R EMS/ ERS Ops Lifeguard,Ops SIA BEACH* EMS Facility Investment Rolling stock/Equipment Total Holdings Annual EMS Response Annual Contribution Total Annual Contribution $4,670,000 $12,870,000 $8,300,000 $1,613,733 $5,020,000 $13,220,000 $8,466,000 $1,668,182 $22,783,733 $23,354,182 April 9, 2013 -41 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY MEDICAL SERVICES (EMS) ITEM #62697(Continued) Chief Edwards identified the EMS Trends & Highlights: Emergency Medical Services FY 2013-14 Trends & Highlights ➢ Mental health beds at VBGH ➢ Marine Rescue Team / Lifeguard— National USLA recognition ➢ Increased number of ambulances staffed ➢ Phase in of additional ambulance at Town Center VA BEACH* EMS Emergency Medical Services FY 2013-14 Trends & Highlights Ambulance Staffing 2007 vs. 2012 8 100% 100% 9 80% 100% 10 48% 97% 11 20% 85% Average 10 12 Volunteer Staffing 85% 96% Goal of 14 ambulances ❖ Average Response time — 7:37 minutes. (ERS unit) • Average Response time — 11:27 minutes. (Ambulance) VA BEACH* EMS April 9, 2013 -42 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN EMERGENCY MEDICAL SERVICES (EMS) ITEM #62697(Continued) Below are the Critical Services Not Funded: Critical Services NOT Funded ➢ 6 medics to complete ambulance staffing at Town Center $379,363 ➢ Additional Medic for Chronic Health Patient Checks $64,228 ➢ Medical Shelter Supplies $22,000 CIP Projects ➢ Landstown EMS Station (23) $ 4,186,480 ➢ Kempsville EMS Station (9) $ 4,570,704 IA BEACH* EMS Currently 71 individuals are enrolled in EMS Volunteer classes: Summary ➢ Volunteer staffing remains strong ➢ Striving to achieve goal of 14 ambulances ➢ Cardiac arrest survival rates remain high ➢ Cost of services remains low VA BEACH* EMS Mayor Sessoms thanked Chief Edwards for his hard work and that of his Staff. Mayor Sessoms also recognized Chief Edwards for being "Number One" in Volunteer hours. April 9, 2013 -43- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN FIRE and CAPITAL IMPROVEMENT PROGRAM 4:28 P.M. ITEM #62698 Mayor Sessoms introduced and welcomed Steve Cover — Fire Chief Chief Cover is pleased to announce that the Fire Department's Operating Budget increased by only 2.81 %for FY2013/2014: Program Unit Administration Emergency Management Fire Marshal's "Fire" Operating Budget FY 12.-13 Amended FY 13-14 Proposed $ 2,132,627 22.0 $ 2,050,147 $ 350,257 4.0 Change FY 13 Amended to FY 14 Proposed $ 360,845 4.0 $ 10,588 3.0% $ 2,246,130 27.71 $ 2,362,338 27.71 Operations $ 38,446,295 411.0 $ 39,521,858 411.0 $ 1,075,563 2.8% $ 116,208 5.2% Personnel & $ 1,405,375 14.0 $ 1,559,200 Development Aid to Localities $ 1,157,260 1.0 1,170,853 1.0 $ 13,593 1.18% 15.0 $ 153,825 11% Total $ 45,737,944 479.71 $ 47,025,241 479.71 $ 1,287,297 2.81% April 9, 2013 -44 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN FIRE and CAPITAL IMPROVEMENT PROGRAM ITEM #62698(Continued) 98% of the Fire Department's Budget comes from the General Fund, while the other 2% is received from the State: FY 2013-14 Budget • General Fund tl' Fire Programs Budget by Expense Category Budget by Fund or Revenue 54,799,412 (5400,000 10.2% _......,® 0.9% Personnel 9t Operations Reserves and Transfers Below are the Fire Department's significant issues: "Fire" Significant Issues > Town Center Fire & EMS Station > Replaces 1952 Thalia Fire & Rescue Station > 12 Firefighters recruits ➢ Priority 7 on City's Top 13 Facility Replacement Priority list ' Ladder truck > Chesapeake Beach Fire & EMS Station ➢ Replaces 1964 Fire & Rescue Station ➢ No additional staff needed ' Priority 10 on City's Top 13 Facility Replacement Priority list > Blackwater Fire & EMS Station (FY 14) S.. Replaces 1955 Fire & Rescue Station Y No additional staff needed ➢ Priority 13 on City's Top 13 Facility Replacement Priority list ➢ Station Alerting > Improves ability to dispatch units for emergencies April 9, 2013 li -45- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN FIRE and CAPITAL IMPROVEMENT PROGRAM ITEM #62698(Continued) The Fire Department currently has 890 certified Volunteers. Chief Cover advised the Wellness Programs are helping reduce the Department 's risk management costs: "Fire" FY 2013-14 Trends & Highlights ➢ Restructure ➢ 5 year Energy Usage is down except for diesel fuel (overall less $429,000) ➢ Risk Management: Safety — Wellness Programs are model for city ➢ Claims 2008 (178) Claims 2012 (45) ➢ Budgeted charges less $163,000 from FY12 ➢ Responses increased by 14.4% ➢ Grants shrinking in amount and opportunity ➢ Volunteers ➢ New Recruits-TRFA ➢ CIP Projects well funded for us ➢ Education programs for children are outstanding, need to improve on elderly programs ➢ Fire Prevention - 60 % of eligible properties inspected Below are the Critical Services Not Funded: Critical Services NOT Funded >Relocate Resource Management >Four Person Staffing >Equipment Funding April 9, 2013 -46 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN FIRE and CAPITAL IMPROVEMENT PROGRAM ITEM #62698(Continued) Below are the Major "Safe Community — Fire" Projects Funded: Major "Safe Community - Fire" Projects Funded 3506000 Fire Facility Rehab & Renewal - III 3133000 Fire Traininglmprovement — III 3134000 Fire Apparatus -111 3021000 Fire Station — Town Center 3244000 Fire Station Chesapeake Beach 3248000 Fire Station - Blackwater 3606000 CIT— Fire Station Alerting Total Pro} Cost Year 1 Funding Project Sta and End Dates $ 2,317,402 $ 479,114 07/11- 06/19 $ 5,562,073 $ 400,000 07/08 — 06/19 $10,410,258 $ 2,314,986 07/13-06/19 $ 9,435,000 $ 0 Complete 2013 $ 5,664,885 $ 0 Complete 2013 $ 5,123,707 $ 4,817,616 10/12 — 06/15 $ 3,068,366 $ 1,000,000 07/13-06/15 Chief Cover stated employee compensation continues to be a challenge: Conclusions ➢ The Virginia Beach Fire Department is a customer service organization partnering with communities, members, citizens and visitors to foster the feeling of safety any place, any time, through planning, mitigation, response and restoration. Questions? Mayor Sessoms thanked Chief Cover for his hard work and that of his Staff. April 9, 2013 -47 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN SHERIFF and CORRECTIONS 4:40 P.M. ITEM #62699 Mayor Sessoms introduced and welcomed Ken Stolle — Sheriff. 0iERIFp n 60Y 0A, Virginia Beach Sheriffs Office Budget Workshop April 9, 2013 Kenneth W. Stole, Sheriff Sheriff Stolle provided the Department's Operating Budget's expenditures: Virginia Beach Sheriff's Office Operating Budget EXPENDITURES FY 1344 Sheriff's Office-:: Court Support Services Correction.' Operations Centralized Booking D.A.R.E.- Sheriff FY 12x13'... f; Amended $2,330,685 $3,348,215 25.43 4 Proposed.: 61.84 $3,243,442 59.84 $104,773 9.5% 3.1% $28,466,225 354.60 $28,265,140 358.60 $201,085 0.71% $2,135,839 $761,419 11.00 $747,240 11.00 37.00 $2,082,095 37.00 $53,744 2.5% $14,179 1.9% April 9, 2013 -48 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN SHERIFF and CORRECTIONS ITEM #62699(Continued) Sheriff's Workforce Inmate Services Law Enforcement Training Academy Transfer to Other Funds Total Expenditures Virginia Beach Sheriff's Office Operating Budget CONTINUED EXPENDITURES Am4nded $851,622 $1,292,717 $149,443 1.00 $150,600 1.00 $1,157 0.77% Change r" 13 Artie to FY 14 Proposed dei 10.00 $934,103, 23.57 $1,287,723 23.57 $4,994 0.38 $24,551 24,551 0 $39,360,716 524.44 $38,845,475 524.44 $515,241 Below are the Department's Revenues: Virginia Beach Sheriff's Office -Operating Budget REVENUES 12-13 FY 13 4 ENDED PROPOSED CHANGE FY13 AMENDED TO FY 14 PROPOSED FEES STATE FEDERAL $17,608,339 $17,457,618 $1,149,750 $229,950 $14,896,783 $14,923,159 $1,255,833 $1,314,990 $39,360,716 $38,845,475 TRANSFERS FUND BALANCE TOTAL REVENUES $469,747 $150,721 $919, 800 $26,376 $59,157 $515,241 April 9, 2013 -49 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN SHERIFF and CORRECTIONS ITEM #62699(Continued) The majority of the Department's expenditures are related to personnel: Virginia Beach Sheriff's Office Comparisons Expenditures $14551 0.06x al Personnel t Operating Transfer Revenues 51314990 54919,158 3.391i 1266% a Fees State it Federal aTransfer t Fund Balance Below are the Department's Significant Issues: VIRGINIA BEACH SHERIFF'S OFFICE SIGNIFICANT ISSUES • FUND BALANCE USAGE • FY08/09 Salary Increase $360,073 • Maintain Master Deputy Program $75,725 • External Information Technology Audit recommends $500,000.00 in Computer Replacements & Upgrades April 9, 2013 -50 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN SHERIFF and CORRECTIONS ITEM #62699(Continued) Below are the Department's Trends & Highlights: VIRGINIA BEACH SHERIFF'S OFFICE FY 2013-14 TRENDS & i.. !!HUGH E G Since FY 2011, the Compensation Board has reduced our deputy positions by 10 FTEs. • Compensation Board has approved a 3% salary increase for all Constitutional Officers • The Sheriff's Office will continue to monitor the state budget as the General Assembly proceeds during their Session. Pursue alternate avenues of revenue. A number of services continue to go unfunded with the most expensive being the Replacement of Jail Security System & Main Control: Critical Services NOT Funded Replacement of VBSO Computers $270,882.00 Replacement of Motorola Radio Package $327,000.00 Replacement Equipment in the Correctional Center $113,300.00 Additional Overtime $332,950.00 Replacement Millennium Gas Mask Filters $12,000.00 Replacement of Video Visitation $500,000.00 Replacement of Jail Security System & Main Control $2,900,000.00 Total $4,456,132.00 April 9, 2013 -51 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN SHERIFF and CORRECTIONS ITEM #62699(Continued) Mission Statement Our mission is to provide for the pubic safety of the citizens of ‘,/irginia Beach, through the efficient and professional operations of the Sheriff's Office as provided for in the Constitution and the Code of Virginia" Mayor Sessoms thanked Sheriff Stolle for his hard work and that of his Staff April 9, 2013 -52- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM 4:54 P.M. ITEM #62700 Mayor Sessoms introduced and welcomed Jim Cervera, Chief of Police. Police Department Budget Workshop April 9, 2013 James A. Cervera, Chief of Police Chief Cervera provided the proposed Police Department's Operating Budget for FY2012/2014: Police Department Operating Budget FY 12-13 Amended FY 13-14 Proposed Change FY 13 Amencied to FY 14 Proposed Director's Office $ False Alarms Professional Development and Training Crime Prevention Support 67,217 1.75 61,079 1.75 4,269,432 32.72 4,353,335 889,302 8.0 820,037 8.0 $ 125,420 7.1% (6,138) (9.1%) 4,794,605.: 59.0 '..'4,856,598 61.0 ,903 2.0% (69,265) (7.8%) 61,993 1.3% April 9, 2013 -53 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM ITEM #62700(Continued) Police Department Operating Budget nge FY 1 ndedto FY 14 Proposed ;. Helicopter 1,447,677 8.0 1,085,870 8.0 361.807 (25.0%) Uniform Patrol 49,444,515 565.23 50,628,513 Red Light Camera 1,183,998 2.4% 1,293,185 2.4 1,304,601 2.4 11,416 0.9% Mounted Patrol ' 1,455,409 16.0 .1,462,738 16.0 7,329 0.5% Police Department Operating Budget Marine Patrol School Resource Officers Detective Bureau Special Investigations Commercial Extraditions " 13-14 Proposed Change FY 13 Amended to FY 14 e` Proposed 953,400 10.46 1,019,504 10.46 66,104 7.0% 2,604,683 30.0 2,478,019 30.0 (126,664) (4.9%) 12,554,837 143.0 12,682,637 142.0 4,695,018 52.0 4,793,620 52.0 413,184 0.0 418,184 0.0 127,800 1.0% 98,602 2.1% 5,000 1.2% April 9, 2013 -54- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM ITEM #62700(Continued) Police Department Operating Budget FY 12 - Amended: Change Amended to FY Proposed Animal Control Domestic Violence Grant Total 3,688,622 45.0 3,531,649; 46.0 (156,973) (4.3%) 75,866 1.0 58,111 1.0 (17,755) (23.4%) $92,064,178 1007.36 $93,209,258 1009.36 $1,145,080 L2% 96% of the Police Department's Budget is received from the General Fund with 84.6% related to personnel: FY 2013-14 Budget ■ General Fund Department Revenue $14,331,248 15.4% Budget by Expense Category Budget by Revenue Source Personnel Operations April 9, 2013 -55- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM ITEM #62700(Continued) Below are the Police Department's Significant Issues: Police Department Significant Issues in FY14 Budget > Addition of 2 part time Veterinary Technician/Assistant positions ➢ Addition of Support Clerk to address increase in Concealed Weapons Permit applications, VCIN/NCIC transactions D. False Alarm Reduction program — non-medical panic alarms billing Below are the Police Departments Trends & Highlights: Police Department FY 2013-14 Trends & Highlights D Why, Why, What, How? D Resources are challenged in addressing special events along with criminal activities, trends and community outreach. D Special events and other service demands require increased use of overtime that has historically been funded through position vacancies. ➢ Central Business District D Street Crime/Gang Unit D AED Replacements - $150,132 April 9, 2013 -56 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM ITEM #62 700(Continued) Police Department FY 2013-14 Trends & Highlights ➢ Salary Compression ➢ Currently 23% of current police officers have the same regular annual salary of $40,237 ➢ These officers were hired from January 16, 2007 to July 16, 2012 ➢ An additional 25 current recruits would join the 180 in July 2013 ➢ Compression is continuing to grow between and within supervisory ranks Below are the Police Department's Capital Improvement Projects: Police Related CIP Funded: 'Special Operations/Forensics/Evidence Complex (current) "Police Fourth Precinct Replacement — Design phase FY16; completion FY18 "Integrated Public Safety (IPS) Records Management System — currently in analysis and RFP preparation phase "Data Storage and Management of Evidentiary Files — currently in analysis and RFP preparation phase Not Funded: "Oceanfront Security Camera System April 9, 2013 -57 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN POLICE and CAPITAL IMPROVEMENT PROGRAM ITEM #62700(Continued) Questions? Mayor Sessoms thanked Chief Cervera for his hard work and that of his Staff. April 9, 2013 -58 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN PLANNING 5:23 P.M. ITEM #62701 Mayor Sessoms introduced and welcomed Jack Whitney — Director - Planning. Department of Planning Budget Workshop April 9, 2013 Jack Whitney, Director Below is the Planning Department's proposed Operating Budget for FY2013/2014: Department of Planning Operating Budget Program Unit F1' 12-13 Amended F 2.3-14 Proposed Change FY 13 Amended to FY 14 Proposed Planning Deportment $9,748,997 108 $9,710,010 " -108 • These calculations do not include Transportation Planning. The FY12-13 Budget was amended to reduce the amounts and FTE counts for the purpose of comparison. • Prior to amendment, Planning's FY13 budget funded 110 FTEs. April 9, 2013 -59 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN PLANNING ITEM #62701(Continued) 87.5% of the Department's expenses are related to personnel. FY 2013-14 Budget Budget by Expense Category Personnel * Operations n Boards and Commissions Below is the Workload to FTE Comparison: Planning Department FY 2013-14 Trends & Highlights ;en activities representing services provided directly to the community have been aggregated to illustrate Planning Planning Departmentworwla.d m rre Comparison ximso All Plannlng Workload Indicators 4 April 9, 2013 -60- CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN PLANNING ITEM #62701(Continued) Below are the Department's Detailed Trends. The Planning Commission items, DSC Site Plans, Zoning Inspections and Permit and Inspections have all increased: FY 2013-14 Detailed Trends -..-PC Items +DSC All Site Plans 1274 914 238' *-----..._,...§8.L.2,45,_..--. 913 836 187 207 197 189 18 FY 08 FY 09 FY 10 FY 11 FY 12 FY13 FY 08 FY 09 FY 10 FY 11 FY 12 FY13 Est. Est. -.-Zoning Inspections 40,513 44,697 33,059 35,466 40.479 FY 08 FY 09 FY 10 FY 11 FY 12 FY13 Est. +Permits and Inspections 132,738 127,935 130,366 135,827 130,177 102,984 ........ .......... FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Est. Below are the Department's Trends & Highlights: Planning Department FY 2013-14 Trends & Highlights ➢ Transportation Program transfers to the SGA Office ➢ New State mandates continue to impact work load (FEMA E&S & EPA Audits, pending stormwater management requirements) ➢ Strategic Growth Area Overlay Zoning Districts ➢ New staffing request for Boards, Commissions and Advisory Committees (e.g., Central Business District Association Design Review Committee, Historic Preservation Commission, Transition Area/ITA Citizens Advisory Committee) April 9, 2013 -61 - CITY MANAGER'S BRIEFING FY2013-14 RESOURCE MANAGEMENT PLAN PLANNING ITEM #62701(Continued) Planning Department Budget Highlights ➢ Accela Automation > Funds CIT Request for Accela Automation for Current Planning which supports the Planning Commission and Planning items to City Council and Development Services Center which coordinates all development plan review and surety activities. S. Continues to fund vacant Business Application Specialist needed at project kickoff to support program. ➢ Leverages investment in Accela System Upgrade for Permits and Inspections by providing enhanced service to remainder of Planning's customer base. > New fees for residential plan review and fire system plan review. (VB is the only HR locality currently without these fees) > New fees for State mandated notification requirements for boards and commissions. (Recoups cost of newspaper legal notices, adjacent property owner mailings and signs posted on application sites for boards and commissions.) Conclusions ➢ Continuing with Accela Automation System installations, will expand the successful deployment of this technology into other functions of the Department. ➢ There has been an increase in the Department's workload as it has responded to upturn in building activity and as it has assumed new responsibilities supporting advisory committees. > Modest fee increases - most increases are to programs that have not adjusted in 10 years. > Eight SGA Plans, Sustainability Plan now complete and adopted. Mayor Sessoms thanked Mr. Whitney for all of his hard work and that of his Staff. April 9, 2013 1 -62- ITEM#62 702 Mayor William D. Sessoms, Jr., entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS: Discussion, consideration of or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees pursuant to Section 2.2-3711(A) (1) Council Appointments: Council, Boards, Commissions, Committees, Authorities, Agencies and Appointees April 9, 2013 -63- ITEM#62702 (Continued) Upon motion by Councilman Uhrin, seconded by Councilman Wood, City Council voted to proceed into CLOSED SESSION at 5:40 P.M. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer - away for minor surgery (Closed Session 5:40 P.M. 5:45 P.M.) (Break 5:45 P.M. 6:00 P.M.) April 9, 2013 I I -64- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL APRIL 9, 2013 6:00 P.M. Mayor William D. Sessoms, Jr., called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, April 9, 2013, at 6:00 P.M. Council Members Present: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: Robert M. Dyer INVOCATION: Reverend Michael G. Daniels Senior Pastor, Enoch Baptist Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Mayor Sessoms DISCLOSED as an officer of TowneBank (which has a corporate office located at 297 Constitution Drive in Virginia Beach), he is directly and indirectly involved in many of TowneBank's transactions. However, due to the size of TowneBank and the volume of transactions it handles, TowneBank has an interest in numerous matters in which he is not personally involved and of which he does not have personal knowledge. In that regard, he is always concerned about the appearance of impropriety that might arise if he unknowingly participates in a matter before City Council in which TowneBank has an interest. Mayor Sessoms also has similar concerns with respect to Prudential Towne Realty, which is an affiliate of TowneBank. In order to ensure his compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the "Act'), it is his practice to thoroughly review each City Council agenda to identify any matters in which he might have an actual or potential conflict. If during his review of an agenda, he identifies a matter in which he has a `personal interest ", as defined by the Act, he will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Mayor Sessoms' letter of March 24, 2009, is hereby made a part of the record. April 9, 2013 -65 - Vice Mayor Jones DISCLOSED, for many years, he served on the Board of Directors of Resource Bank. Three (3) years ago, Fulton Financial Corporation ("Fulton Financial') purchased Resource Bank. On March 31, 2007, Vice Mayor Jones retired from the Board of Directors. Although, he is no longer a Board Member, he owns stock in Fulton Financial and that stock ownership causes him to have a "personal interest" in Fulton Financial. However, due to the size of Fulton Financial and the volume of transactions it handles in any given year, Fulton Financial, or any of the banks that are owned by Fulton Financial, may have an interest in numerous matters in which Vice Mayor Jones has no personal knowledge. In order to ensure his compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is his practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which he might have an actual or potential conflict. If during his review, he identifies any matters, Vice Mayor Jones will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April 10, 2007, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accounting firm of Dixon Hughes Goodman and is directly and indirectly involved in many of Dixon Hughes Goodman 's transactions. However, due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year, Dixon Hughes Goodman has an interest in numerous matters in which her husband is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson 's letter of January 10, 2012, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a Real Estate Agent affiliated with Prudential Decker Realty. Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter of January 27, 2004, is hereby made a part of the record. April 9, 2013 Item -VII-E CERTIFICATION -66- ITEM #62703 Upon motion by Councilman Moss, seconded by Councilman Uhrin, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM #62702 Page 63, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. th Hodges Fraser, MMC City Clerk April 9, 2013 I I Item -VII-F.1 MINUTES -67- ITEM #62704 Upon motion by Councilman DeSteph, seconded by Councilman Moss, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of March 26, 2013. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -68- ADOPT AGENDA FOR FORMAL SESSION ITEM #62705 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION April 9, 2013 1 -69- Item -VII-H.1 PUBILC HEARING ITEM #62706 Mayor Sessoms DECLARED A PUBLIC HEARING: STARBUCKS CORPORATION at 31 OCEAN 241 Laskin Road (DISTRICT 6 — BEACH) There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. April 9, 2013 -70- Item —VII -I ORDINANCES/RESOLUTIONS ITEM #62707 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council APPROVED, IN ONE MOTION, BY CONSENT, Items 1(MOSS NAY VOTE), 2(HENLEY NAY VOTE), 3(ALTERNATE VERSION/DeSTEPH ABSTAIN), 4, 5, 6, 7, 8, 9 and 10a/b of the CONSENT AGENDA. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -71 - Item -VII-I. I ORDINANCES ITEM #62708 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and AUTHORIZE the transfer of property to the Development Authority re parking and mixed-use development at 19`x', 20th Streets and Artie and Baltic Avenues Voting: 9-1 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: John D. Moss Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE APPROVING AND 2 AUTHORIZING THE TRANSFER OF 3 PROPERTY TO THE CITY OF VIRGINIA 4 BEACH DEVELOPMENT AUTHORITY FOR 5 POTENTIAL PARKING AND MIXED-USE 6 DEVELOPMENT (FORMER TREASURER'S 7 BLOCK) 8 9 WHEREAS, to promote the economic vitality of the City of Virginia Beach (the 10 "City"), City Council has identified the need for an entertainment venue at the former 11 Dome Site (the "Dome Site") along with the need for additional public parking near the 12 Dome Site for the general benefit of the City's resort area; 13 14 WHEREAS, by Resolution 03260, adopted by City Council on July 17, 2007, City 15 Council requested that the City of Virginia Beach Development Authority (the 16 "Authority") explore potential development of the Dome Site; 17 18 WHEREAS, the Authority identified a potential developer for the Dome Site and 19 has engaged in negotiations with that developer; 20 21 WHEREAS, in the course of its discussions with the developer for the Dome Site, 22 the Authority has identified the block located between 19th and 20th Street and Arctic 23 and Baltic Avenue, as shown on the Location Map attached hereto as Exhibit A 24 (collectively, the "Property"), as a suitable location for public parking to support the 25 Dome Site development and the needs of the citizens utilizing that portion of the resort; 26 27 WHEREAS, to maximize the value of the Property and the potential uses thereof, 28 the Authority has issued its Request for Qualifications seeking a developer to construct 29 a mixed-use project on the Property, including at least 800 public parking spaces; 30 31 WHEREAS, the Authority believes that and a mixed-use project on the Property 32 would create the best opportunity to optimize the value of the Property and achieve the 33 goals of adding needed public parking and increasing the tax base on the Property; 34 35 WHEREAS, the Authority was specifically created for the purpose of fostering 36 and stimulating economic development in the City and would be the entity to enter into a 37 development agreement with a developer; 38 39 WHEREAS, the existing rights-of-way located on the Property would be brought 40 before Council at a later date for closure, pursuant to the City's normal street closure 41 process; and 42 43 WHEREAS, title to the Property must be transferred from the City to the Authority 44 before any transaction for the development of the Property could be finalized. 45 46 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 47 VIRGINIA BEACH, VIRGINIA, 48 1. The City Council, subject to acceptance by the Authority, authorizes the 49 transfer of title to the Property shown on the Location Map, attached hereto as Exhibit A 50 and made a part hereof, to the Authority. 51 52 2. The City Manager, or his designee, is hereby authorized to execute any 53 and all documents to complete such transfer, so long as the documents contain such 54 terms, conditions and modifications as may be acceptable to the City Manager and in a 55 form deemed satisfactory by the City Attorney. 56 57 3. The City Council requests and recommends that the Authority adopt a 58 Resolution accepting the transfer of the Property to the Authority. 59 9th 60 Adopted by the Council of the City of Virginia Beach, Virginia, on the 61 day of April , 2013. THIS ORDINANCE REQUIRES AN AFFIRMATIVE VOTE OF THREE-FOURTHS OF ALL ELECTED MEMBERS OF CITY COUNCIL J APPROVED AS TO LEGAL APPROVED AS TO CONTENT: SUFFICIENCY: a(4i. City Attorney City Manager CA12552 R-2 \\vbgov. com\DFS 1Wpplications\CityLawProd\cycom32\Wpdocs\D009\P012\00033027. DOC 4/3/2013 2 ii 1 -72- Item -VII-I.2 ORDINANCES ITEM #62709 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Resolution to SUPPORT Southeastern Public Service Authority (SPSA) after January 24, 2018, and PURSUE the development of a Regional Solid Waste Management System Voting: 9-1 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: Barbara M. Henley Council Members Absent: Robert M. Dyer April 9, 2013 1 A RESOLUTION STATING THE CITY OF VIRGINIA 2 BEACH'S UNDERSTANDING OF REGIONAL EFFORTS 3 TO MANAGE SOLID WASTE IN SOUTHSIDE HAMPTON 4 ROADS AFTER JANUARY 24, 2018 AND THE CITY'S 5 INTENT TO PURSUE COOPERATIVE DEVELOPMENT OF 6 A REGIONAL SOLID WASTE MANAGEMENT SYSTEM 7 8 9 WHEREAS, the Southeastern Public Service Authority ("SPSA") was created by 10 concurrent resolution of the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and 11 Virginia Beach and the Counties of Isle of Wight and Southampton (the "member localities") in 12 1976, and 13 14 WHEREAS, between 1983 and 1984, Virginia Beach and the other member localities 15 entered into individual Use and Support Agreements providing, among other things, that each 16 member jurisdiction would deliver substantially all of the disposable solid waste generated or 17 collected by or within or under the control of the member locality; and 18 19 WHEREAS, all of the Use and Support Agreements will expire on January 24, 2018; 20 and 21 22 WHEREAS, a series of studies have been performed by SCS Engineers for the region 23 as well as other studies for individual localities in order to assess regional solid waste 24 management issues following the expiration of the Use and Support Agreements; and 25 26 WHEREAS, the City of Virginia Beach has determined that a cooperative approach to 27 the continuation of a regional system of municipal solid waste management would be in the 28 best interests of the City and its citizens and businesses; and 29 30 WHEREAS, SPSA has established a strategy to, and will, eliminate its debts by the date 31 of expiration of the current Use and Support Agreements; and 32 33 WHEREAS, SPSA provides a reliable, effective and environmentally sound operation 34 for the disposal of municipal solid waste; and 35 36 WHEREAS, the City Council believes that a cooperative regional approach to the 37 disposal of municipal solid waste is superior to other alternatives available to the City for the 38 disposal of municipal solid waste; and 39 1 I 40 WHEREAS, at the direction of the Chief Administrative Officers of the members, a 41 technical committee was established to review and address numerous policy and operational 42 issues; and 43 44 WHEREAS, the Chief Administrative Officers have reached a consensus for the 45 continuation of SPSA as the regional provider of solid waste disposal service after January 24, 46 2018, subject to the approval of the governing bodies of the member localities; and 47 48 WHEREAS, pursuant to legislation enacted in 2009, the process for appointment of 49 SPSA's Board of Directors was changed, and such legislation provides that the process shall 50 remain in effect until SPSA is dissolved pursuant to applicable provisions of the Virginia Water 51 and Waste and Authorities Act (the "Act"); and 52 53 WHEREAS, pursuant to legislation enacted in 2000, SPSA shall "continue and have 54 perpetual existence" until dissolved pursuant to applicable provisions of the Act; and 55 56 WHEREAS, the directors of SPSA have an equal vote in decisions made by the Board, 57 and each member locality shall be represented by two directors; and 58 59 WHEREAS, tipping fees paid by the member localities are not uniform, in that the City 60 of Suffolk, as the host of the Regional Landfill, does not pay tipping fees and the City of 61 Virginia Beach's tipping fees are capped through the year 2015, and tipping fees charged to 62 private entity customers, are also not uniform; and 63 64 WHEREAS, under current statutory provisions, a member locality may withdraw from 65 SPSA, provided that all written obligations to SPSA incurred by such locality while it was a 66 member of SPSA shall remain in full force and effect following the locality's withdrawal; and 67 68 WHEREAS, the SPSA's contract with Wheelabrator Technologies, Inc. for disposal of 69 municipal solid waste ("MSW"), which expires on January 24, 2018, requires that an 70 established minimum annual tonnage be delivered to Wheelabrator's Waste -to Energy Plant in 71 the City of Portsmouth; and 72 73 WHEREAS, the current Conditional Use Permit authorizing the SPSA Landfill in the City 74 of Suffolk does not encompass all potential or likely expansion areas identified in the SPSA's 75 land use plan; and 76 WHEREAS, there is a lack of uniformity among the provisions governing the ownership, 77 leasing, and use of the transfer stations operated by SPSA; and 78 2 79 WHEREAS, in the event of SPSA's dissolution, its assets are to be distributed in 80 accordance with applicable provisions of the Act, but that the current Use and Support 81 Agreement between SPSA and the City of Suffolk provides that the Regional Landfill site shall 82 be conveyed to the City of Suffolk upon permanent completion of the operation of the Landfill 83 by SPSA for the disposal of solid waste; and 84 85 WHEREAS, although SPSA primarily provides municipal solid waste disposal services, 86 it has, on occasion, provided recycling and other disposal services for white goods, yard waste 87 and household hazardous waste; and 88 WHEREAS, the City of Virginia Beach owns and operates a legally permitted municipal 89 landfill with sufficient capacity to operate many decades into the future; and 90 91 WHEREAS, SPSA may, at its option, dispose of ash and residue from the Portsmouth 92 waste -to -energy plant at either the Regional Landfill or the Virginia Beach Landfill; 93 94 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 95 VIRGINIA BEACH: 96 97 That it supports the continued operation of SPSA after January 24, 2018 as the region's 98 solid waste disposal service provider subject to the following principles, which should be set 99 forth in a Memorandum of Understanding among the aforementioned Hampton Roads 100 localities establishing the principles to be embodied in Use and Support Agreements entered 101 into for a term after January 24, 2018 ("Post -2018 SPSA organization"): 102 103 1. The current process for appointing the board of directors membership will be 104 retained; unless or until the state laws governing SPSA are amended to provide 105 for a different manner of appointment; 106 107 2. Membership in the Post -2018 SPSA organization will be open only to those 108 localities that have entered into new Use and Support Agreements or similar 109 instruments with SPSA; 110 111 3. After January 24, 2018, SPSA may be comprised of Divisions, with the 112 divisional membership based upon the method of solid waste disposal employed 113 by the member localities, which impacts the establishment of a fair and 114 reasonable tipping fee that is uniform within each division; 115 116 4. If SPSA is comprised of divisions, when an issue to be decided affects the 117 member localities of only one Division, only the representatives of the member 118 localities of that Division shall be entitled to vote, and for issues affecting one or 3 I 119 more member localities of both Divisions, all SPSA representatives member 120 localities shall be entitled to vote. Each member shall have an equal vote within 121 its division and each member shall have an equal vote when voting on issues 122 affecting the entire Post -2018 SPSA organization; 123 124 5. Members shall pay equal fees for similar services, and fees for non-member 125 customers will be equal to or higher than those of member localities for such 126 services; 127 128 6. A member locality will have the right to withdraw from the Post -2018 SPSA 129 organization and terminate its Use and Support Agreement or other instrument 130 binding it to SPSA, provided it satisfies its written obligations in accordance with 131 applicable statues; 132 133 7. Based on a thorough review of the alternatives, the SPSA Board of Directors will 134 determine by majority vote the fiscally and environmentally best disposal method 135 for the waste it receives; 136 137 8. In a future Memorandum of Understanding entered into by the member localities 138 prior to the execution of a binding Use and Support Agreement, the member 139 localities will agree on a method of determining the percentage and types of solid 140 waste to be delivered to SPSA; 141 142 9. SPSA will seek a comprehensive conditional use permit allowing the full 143 expansion of the Regional Landfill and determine the financial feasibility of that 144 expansion prior to the execution of new Use and Support Agreements; 145 146 10. Ownership of the all transfer stations will become or remain, as the case may be, 147 that of the locality in which the property is located; 148 149 11. Post -2018 SPSA long term debt will be restricted to capitalization costs 150 associated with the Regional Landfill, and a maximum of Five Million Dollars per 151 member as contributory financing for the construction of new, relocated, 152 revitalized or expanded existing transfer stations within the member localities, 153 and will be in conformity with the provisions of Virginia Code Section 15.2- 154 5102.1(8) provided that such payments to a member shall be approved by the 155 Board of Directors after presentation of information sufficient to support the need 156 for such new, relocated, renovated or expanded transfer station; 157 4 158 12. An annual business expense will be created to serve as a host fee for the City of 159 Suffolk, with such expense to be allocated within the tipping fee rates established 160 for all member localities; 161 162 13. SPSA will have the authority to provide, to the residents and businesses located 163 in the City of Suffolk, other solid waste disposal services in addition to municipal 164 solid waste disposal if the provision of such other services is permitted by law, 165 financially feasible and appropriate contracts are entered into for such services 166 and the cost allocated to users of that service; and 167 168 14. The use of the Virginia Beach landfill for municipal solid waste disposal will only 169 occur during emergency conditions such as, but not limited to, natural disasters. 170 171 BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 172 BEACH: 173 174 That the City of Virginia Beach will commit to remaining in SPSA upon the expiration of 175 the current Use and Support Agreement, with all assets except the transfer stations remaining 176 the property of SPSA. 177 178 BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 179 BEACH: 180 181 That the City Manager is directed to undertake all necessary actions to effectuate the 182 provisions of this Resolution, with a view toward the continued existence of SPSA as the 183 provider of solid waste disposal for the region after the expiration of the current Use and 184 Support Agreements on January 24, 2018. Such actions shall include: (1) participating in 185 negotiations of a Memorandum of Understanding with other SPSA members, and thereafter 186 participating in negotiations of a new Use and Support Agreement with SPSA, with both the 187 said Memorandum of Understanding and Use and Support Agreement containing terms 188 materially in accordance with the foregoing provisions of this Resolution; (2) and such other 189 and further actions as may be necessary or advisable or as are directed by the City Council. 190 191 192 Adopted by the City Council of the City of Virginia Beach, Virginia on the 9th day 193 of April , 2013. 194 195 196 197 5 198 199 200 201 202 203 204 I APPROVED AS TO CONTENT: 205 CA -12484 206 March 26, 2013 207 R-3 APPROVED AS TO LEGAL SUFFICIEN Y: AP- ,i) City Attorney's Office -73- Item -VII-I.3 ORDINANCES/RESOLUTIONS ITEM #62 710 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, ALTERNATE VERSION, BY CONSENT, Resolution to SUPPORT preservation of the Historic Cavalier on the Hill Hotel with incentives to Purchasers Voting: 9-0 Council Members Voting Aye: Glenn R. Davis, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M Dyer Council Members Abstaining: William R. "Bill" DeSteph April 9, 2013 ALTERNATE VERSION 1 A RESOLUTION IN SUPPORT OF OFFERING 2 INCENTIVES TO PROSPECTIVE PURCHASERS TO 3 PRESERVE THE HISTORIC CAVALIER ON THE 4 HILL HOTEL 5 6 WHEREAS, the Cavalier Hotel was built in 1927 on a hill overlooking the 7 beaches of the Town of Virginia Beach, and has been a signature landmark in the City 8 of Virginia Beach that has contributed character to and enhanced the beauty of the City 9 and has been a source of pride for its residents; 10 11 WHEREAS, a 2012 court order required the corporate owner of the Cavalier 12 Hotel to be dissolved, and a receiver was appointed to take control of the hotel and its 13 other assets and sell them; 14 15 WHEREAS, the Cavalier Hotel is being marketed for sale by the receiver and 16 bids to purchase the hotel are being received through April 25, 2013; 17 18 WHEREAS, the Cavalier Hotel is being marketed for sale in three parcels: (1) the 19 12.5 -acre site on the west side of Atlantic Avenue, upon which sits the 1927 original 20 hotel (the "Cavalier on the Hill"), (2) the 6.1- acre oceanfront hotel complex built in 1973 21 (known as the "Oceanfront Cavalier"), and (3) a 2.5 -acre site immediately south of and 22 adjacent to the Cavalier on the Hill developed with tennis courts and a parking lot; 23 24 WHEREAS, if the Cavalier on the Hill structure is demolished, the City would lose 25 an icon that represents the City's historic architecture and culture; 26 27 WHEREAS, preserving the Cavalier on the Hill structure as a piece of Virginia 28 Beach's history will be an enduring enhancement to the quality of life in the City of 29 Virginia Beach; and 30 31 WHEREAS, the City Council is committed to working with a potential buyer, with 32 the goal of preserving the Cavalier on the Hill by providing incentives to redevelop the 33 property in a way that will maintain its historic architectural features. 34 35 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 36 OF VIRGINIA BEACH, VIRGINIA: 37 38 1. That the City Council, on behalf of the citizens of Virginia Beach, strongly 39 supports preserving the Cavalier on the Hill structure, the lawn leading up the hill from 40 Atlantic Avenue, and the serpentine walls, driveway, and other improvements leading to 41 the entrance to the hotel from Cavalier Drive; 42 43 2. That the City Council wishes it to be known that if the potential purchaser 44 of the Cavalier on the Hill is able to: (a) add the Cavalier on the Hill to a local, state or 45 federal historic register; and (b) preserve the Cavalier on the Hill structure, the lawn, 46 and the other features and improvements described in paragraph 1, then the City will 47 consider all reasonable ways to support development of the remaining lands, including 48 offering its support as follows: 49 50 i. Support for historic tax credits, through official designation on the 51 National Register of Historic Places or Virginia Landmarks Register; 52 or certification by the Virginia Department of Historic Resources; 53 ii. Targeted local tax relief through City Council action (Le., real 54 property, business license, business property, etc.); 55 iii. Cost participation for necessary roadway, utility, stormwater, and 56 other infrastructure improvements; 57 iv. Cost participation in the potential extension of the existing public 58 Oceanfront Boardwalk to include the Oceanfront Cavalier property; 59 v.. Cost participation in project design and master planning; 60 vi. Providing local economic development grants based upon new job 61 creation and investment (as further described on the Web at: 62 http://www.vesvirginiabeach.com/doing-business-in-virginia- 63 beach/pages/incentives.aspx); 64 vii. Assistance with Obstruction Evaluation (OE) submission to Federal 65 Aviation Administration (FAA) as required by the City Zoning 66 Ordinance; 67 viii. Fast -tracking of permitting process for site development and 68 construction permits. 69 70 3. In addition to the foregoing support, the City Council will consider an 71 application conforming to the criteria set forth in Section 2 above for a conditional 72 change of zoning of the property currently zoned RT -1 Resort Tourist District to,OR 73 Oceanfront Resort District. The City Manager is hereby directed to establish an ad hoc 74 staff committee that will, prior to a potential purchaser's submission of a bid, 75 confidentially review and evaluate any prospective plans of development that a potential 76 purchaser makes available and will inform the submitting party of staffs analysis of the 77 plan with regard to its compliance with the City's goals for the future use and 78 development of the property, which may result in the City's support of an application for 79 a conditional change of zoning. The ad hoc staff committee shall be available for such 80 confidential review and evaluation up to two days prior to the date of the acceptance of 81 bids by the court appointed receiver. 82 83 4. That the City Council authorizes the City Manager to meet with 84 prospective purchasers of the Cavalier Hotel properties to discuss potential avenues to 85 redevelop such properties in a manner consistent with this resolution. 86 87 Adopted by the City Council of the City of Virginia Beach, Virginia, this 9th 88 day of April , 2013. 2 APPROVED AS TO LEGAL APPROVED AS TO CONTENT: SUFFICIENCY: ,,,k/m;4/ )L.73-e3trot City Attorney's Office City Manager's Office CA12555 R-5 April 9, 2013 \\vbgov.com\dfsl \applications\citylawprod\cycom32\wpdocs\d026\p015\00062863.doc 3 THE CAVALIER HOTEL .1201 A tAN1IC AV1N )L VIRGINIA UEACFi, vIR(H Ili PPO`rRTUIti1Y OVERVIEW CBRE Hotels and DJM Realty have been retained as exclusive brokers for Charles R. Goldstein, in his capacity as Receiver for The Disthene Group, Inc., and its subsidiaries for the sale of the historic and iconic Cavalier Hotel on the Oceanfront of Virginia Beach, Virginia. The complex consists of the original seven -story 115 -room Cavalier on the Hill, the 282 -room Oceanfront Hotel, an employee housing building (currently used for storage), a single family residence and a freestanding commercial building. The complex straddles the junction of Atlantic Avenue and Pacific Avenue. It is the northern gateway to the resort strip of Virginia Beach. The Cavalier property has a total area of 21.2 acres. This includes three parcels: The Oceanfront Hotel which is situated on 6.151 acres and has direct ocean frontage of approximately 568 feet; the Cavalier on the Hill encompassing 12.5 acres; and the Tennis Court/ Church Lot parcel which encompasses 2.549 acres. The complex is being offered unencumbered by brand, debt or management contract and can be purchased as individual parcels or in its entirety. CBREIHotels DJM ReRity ♦CI*TWW OfOInRRS ARM,* MAMMY The historic Cavalier on the Hill was built in 1927 and contains 115 rooms, 17,600 SF of meeting and function space, and an indoor pool. The hotel sits atop the highest point at the oceanfront at approximately 30 feet in elevation. The land area surrounding the hotel runs from Pacific Avenue back to Holly Road. It has approximately 1,026 frontage feet on Pacific Avenue and 664.19 frontage feet on Holly Road. The Oceanfront Hotel opened in 1973 and contains 282 rooms, 32,878 SF of meeting and function space, a fitness center, outdoor pool and both below -grade and surface parking. This site has one of the longest frontages on the oceanfront in the entire resort strip. These hotels sit at the most northern and desirable end of the resort strip. The City of Virginia Beach would be very supportive of a master plan redevelopment of the entire site. The size and location of this complex provides a purchaser the unique opportunity to redevelop the site into a very special destination. It is only confined by limitations of a purchaser's imagination. The current zoning is Oceanfront Resort for the Oceanfront Hotel, and RT -1 for the Cavalier on the Hill and its surrounding land. The Oceanfront Resort zoning is fora, based and allows a high degree of flexibility. There is no density limitation. RT -1 zoning allows the development of approximately 3,600 hotel rooms, which should offer significant trade-off for any rezoning for other uses. Both parcels have a height limitation of approximately 200 feet, but new development requires approval of the Federal Aviation Administration due to its radar coverage. There is limited new supply in this market. A 168 -room Hilton Garden Inn is under construction on the oceanfront at 34th Street and Atlantic Avenue. The City of Virginia Beach has been promoting a Conference Center hotel to be developed adjacent to their 525,125 SF convention center, but as of now they have not chosen a developer. ROPERTY OVERVIEW PARCEL PARCEL NUMBER PARCEL SIZE ['UMBER OF ROOMS YEAR BUILT t i -R S ( i ORRIC)OR IMPROVEMENTS ARKING FRANCHISE Cavalier On The Hill 24189518530000 12.5 acres 115 1927 7 stories and basement, interior corridor Historic hotel, 17,600 SF of meeting and function space, including a 3,500 SF ballroom, indoor swimming pool, two-story residence, two-story apartment building and a leased single -story garage 215 parking spaces Oceanfront Hotel 24189660850000 Additional Parcel 24189534250000 6.2 acres, with 568 feet of 2.5 acres ocean frontage 282 with private balconies N/A 1972 N/A 11 stories and basement, interior corridor Oceanfront Hotel, 32,900 SF of meeting and function space, including a 16,320 SF ballroom, outdoor swimming pool and fitness facilities 135 above -ground parking spaces, and 35 below - ground parking spaces Surface parking and two clay tennis courts 101 parking spaces Offered free and clear of any franchise or management agreement 111 _L, i Viiaitlf Pan-. . E •'�__%R;r www.cbremarketplace.com/TheCavalier Known as 'America's First Region", the Virginia Beach MSA includes the independent cities of Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, and Suffolk, as well as other smaller cities, counties and towns of Hampton Roads. Virginia Beach is the most populous city in Virginia, and the 41st largest city in the United States with a population of 437,994 according to the 2010 Census. The area is situated near the middle of the Eastern seaboard, providing businesses access to more than two-thirds of the US population within a 750 -mile radius. This region's strategic mid-Atlantic location, relatively low-cost business environment, and educated workforce have contributed to a diversified economy. Virginia Beach has a strategic central location, only 110 miles southeast of Richmond, the state capitol, 200 miles south of Washington, DC and 250 miles south of Philadelphia. The Virginia Beach region is easily accessible by its interstate system. Interstate 264 extends west from the oceanfront, and intersects with Interstate 64 on the east side of Norfolk. Interstate 64 is the major east/west interstate connecting the East Coast to the Mississippi River corridor. Additionally, Norfolk International Airport handled more than 3.1 million passengers in 2012, placing it in the top 15% of airports nationwide in number of passengers served annually. The airport is currently served by American, Continental, Delta, Southwest, United Express and US Airways. Nearly 100 nonstop flights depart daily to destinations including Atlanta, Chicago, Dallas, New York, Orlando and Washington, D.C. The resort city is home to 38 miles of beaches, 79 miles of scenic waterways and a three-mile boardwalk. Virginia Beach has attracted over five million visitors with over S1.0 billion in tourism expenditures between 2008 and 201 1 . Percen RevPAR Change LODGING MARKET The Virginia Beach hotel market performed well from 2006 through 2011. A sample set of competitive full- service and select -service properties experienced only modest single digit declines in RevPAR during the recent US financial crisis according to Smith Travel Research (STR) data. Additionally, a full recovery is underway as evidenced by RevPAR growth of nearly six percent in 2012 for the Norfolk -Virginia Beach tract according to STR. • This remarkable trend is attributed, in part, to the market's balance of lodging supply and demand. In fact, the 141 -room Hampton Inn, which opened in 2009, is the most recent hotel to open in the market. • Hotels in the market also benefit from a diverse local economy that includes the following sectors: • Tourism - the area's coastal location attracts hundreds of thousands of visitors with its famous three-mile boardwalk and 38 miles of beach front; • Military - the presence of four military bases; • Higher educational institutions - Virginia Beach is home to the satellite campuses for Virginia Tech and the University of Virginia; • Companies - Businesses such as Sentara Medical Group, SAIC, Stihl, and GEICO provide year-round lodging demand. • A recovery appears eminent with RevPAR growth around the mid to upper single digit level for year to date November 2012. Full -Service Hotel ADR & RevPAR $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $o MARKET PERFORMANCE Oq 0 \(:) .•\, .N� fiO�a�O�Oa ADR RevPAR Occupancy 70% 65% 11 60% 55% 50% 45% 40% ear Percent Occupancy Change Average Daily Rate Percent Change 2006 2007 2008 2009 2010 2011 65.8% 66.3% 61.8% 60.3% 57.9% 59.0% 0.8% -6.9% -2.3% -4.1% 1.9% $138.44 $145.81 $152.12 $150.37 $157.91 $163.48 5.3% 4.3% -1.1% 5.0% 3.5% $91.14 $96.74 $93.94 $90.74 $91.42 $96.43 6.1% -2.9% -3.4% 0.7% 5.5% CAGR YTD Nov '10 YTD Nov ' 1 1 YTD Nov '12 60.2% 61.8% 62.3% -2.2% 3.4% 1.1% 2.6% 0.8% $160.52 $166.00 $173.22 3.4% 4.4% $96.70 $102.65 6.1% $108.00 5.2% ;rt. " fc.v.( .. , www.cbremarketplace.com/TheCavalier 1" N f 1 • CBREHoteIs 150 West Main Street, Suite 1 100 Norfolk, VA 23510 www.cbrehotels.com DIEM 11\ ealty —A GORDON BROTHERS GROUP COMPANY - 445 Broadhollow Road, Suite 224 Melville, NY 11747 www.djmrealty.com ";(1? (f f it'r,nd FIGS o Virginia Inc_ this iniormnticn hos been obtained irorr, sources believed reliable We bow; not verified it and make no guarantee, warranty or representation about it_ Any prajenions, opinions, r ssonrf.tiv , or ermontet sod are for excn ogle only and do nor represent the current or future perirnnonce of the property_ You end your advisors should conduct o careful, independent investigation of the property to determine to you+ sotisfanloa,I. ;ottot litr et ill; 1 : i erty your aceds. Filmes herein e,c the property of their respective tremors ors end use of Mese irreces v,itheut the express Written a;n'_eet Of the c„nr r is prohibited. OUGLAS HENtt CBRE Hotels 757.228.1813 doug.henkel@cbre.com .EVVIS C. MILLER CBRE Hotels 404.923.1269 lewis.c.miller@cbre.com MIKE MAI LAI DJM Realty 631 .92 7.0045 mmatlat@djmrealty.com ANDREW V.,,r'U;.Pr., : CBRE Hotels 202.585.5576 andy.wimsatt@cbre.com 1OM IVES CBRE Hotels 404.923.1270 tom.ives@cbre.com BILL DESTEPH COUNCILMAN - AT -LARGE In Reply Refer to: 0049100 City of Virgirzia 13ac1-1 April 9, 2013 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Section 2.2-3115(F), Code of Virginia Dear Mrs. Fraser: VBgov.com PHONE: (757) 496-4646 CELL: (757)339-6105 BDESTEPH @ VBGOV.COM Pursuant to the Virginia Conflict of Interests Act, Section 2.2-3115(F), Code of Virginia, I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote a resolution in support of incentives to prospective purchasers to preserve the historic Cavalier on the Hill hotel. The property is located near the intersection of Atlantic Avenue and 42nd Street. 2. I have been asked to serve as an investor for one or more prospective purchasers of the property. 3. Although the City Attorney has advised me that the Act does not require me to abstain, I nevertheless wish to voluntarily disclose my interest in this transaction and abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. 2401 COURTHOUSE DRIVE, VIRGINIA BEACH, VIRGINIA 23456 Mrs. Ruth Hodges Fraser -2- April 9, 2013 Re: Abstention Pursuant to Section 2.2-3115(F), Code of Virginia Thank you for your assistance in this matter. Bill R. DeSteph Councilmember BRD/RRI -74 - Item -VII-I.4 ORDINANCES/RESOLUTIONS ITEM #62 711 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to EXECUTE a License Agreement with STARBUCKS CORPORATION re outdoor seating at 31 Ocean, 241 Laskin Road (DISTRICT 6 — BEACH) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LICENSE AGREEMENT 3 WITH STARBUCKS CORPORATION FOR THE USE 4 OF APPROXIMATELY FIFTY (50) SQUARE FEET 5 OF CITY -OWNED PROPERTY FOR AN OUTDOOR 6 SEATING AREA AT 31 OCEAN 7 8 WHEREAS, since 2008, Starbucks Corporation ("Starbucks"), has licensed from 9 the City an outdoor seating area of approximately fifty (50) square feet located 10 immediately in front of and under the roof -line of the Starbucks store located at 31 11 Ocean, 241 Laskin Road, Virginia Beach, Virginia (the "Licensed Area"); and 12 13 WHEREAS, Starbucks proposes to enter into a new license agreement for the 14 Licensed Area from the City for a one-year term with four one-year renewal options; and 15 16 WHEREAS, the Licensed Area would continue to be used by Starbucks as a 17 seating area for its customers, and for no other purpose; and 18 19 WHEREAS, the Strategic Growth Area/Resort Management Office recommends 20 that the City enter into a license agreement with Starbucks in accordance with the 21 Summary of Terms, attached hereto. 22 23 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 24 VIRGINIA BEACH: 25 26 That the City Manager is hereby authorized to execute a license agreement for a 27 one-year term with four one-year renewal options, between Starbucks Corporation and 28 the City, for the Licensed Area as shown on the plan attached hereto as Exhibit A and 29 made a part of this Ordinance, and in accordance with the Summary of Terms attached 30 hereto, and such other terms, conditions or modifications as may be acceptable to the 31 City Manager and in a form deemed satisfactory by the City Attorney. 32 33 Adopted by the City Council of Virginia Beach, Virginia on this 9th day 34 of April , 2013. Approved as to Content: Approved as to Legal Sufficiency: Strategic Growth Area/ City Attorney's Office Resort Management CA12553 vbgov.com\DFS 1Wpplications\CityLawProd\cycom32\W pdocs\D019\P015\00061680. DOC R-1 March 25, 2013 eZAAj 111 EN d0;k QQ kLIO HOV38 VINIO2IIA swm ILS4cZ VA'4oesg elulBii peoa uplsel 1472 uee3 6£ NOIS3O 321O1S ONI1SIX3 STORE Vk 08888 ' 1S 8 zg la non *1 mon I$I FURNISHING, FIXTURE, & EQUIPMENT PLAN 0 8 SUMMARY OF TERMS LICENSE FOR STARBUCKS CORPORATION TO USE 50 SQUARE FEET OF CITY -OWNED REAL PROPERTY AT 31 OCEAN LICENSOR: City of Virginia Beach LICENSEE: Starbucks Corporation, a Washington corporation PREMISES: 50 square feet of City -owned property located immediately in front of and under the roof -line of the Starbucks store located at 31 Ocean, 241 Laskin Road, Virginia Beach, Virginia 23451 TERM: May 1, 2013 through April 30, 2014 RENEWAL: Four optional one-year terms TERMINATION: City shall have right to terminate if necessary for a public purpose by giving sixty (60) days' notice. RENT: Year 1: Optional Year 2: Optional Year 3: Optional Year 4: Optional Year 5: $869.52 annually $895.61 annually $922.48 annually $950.15 annually $978.65 annually RESTRICTIONS ON USE OF LICENSED AREA: • Any live or recorded music played in the Licensed Area shall conform with the City's Cafe Guidelines for entertainment or live music. • Materials placed in Licensed Area must be approved by the City and no logos other than Starbucks' logo shall be permitted. • All items placed in the Licensed Area must be removed each night at the close of business. • No extraneous items such as menu boards, signs or portable heaters in the Licensed Area shall be permitted. • Solicitation for tips or the posting or dissemination of printed material in the Licensed Area is prohibited. \\vbgov. com\DFS I\Appl ications\CityLawProd\cycom32\W pdocs\DO 19\p015\00061679_DOC I -75 - Item -VII-I.5 ORDINANCES/RESOLUTIONS ITEM #62712 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to AMEND Section 2-108 of the City Code re the City's employment probation period Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 I 1 AN ORDINANCE TO AMEND SECTION 2-108 2 OF THE CITY CODE PERTAINING TO 3 PROBATION PERIOD OF EMPLOYMENT 4 5 SECTION AMENDED: § 2-108 6 7 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 8 BEACH, VIRGINIA: 9 10 That Section 2-108 of the Code of the City of Virginia Beach, Virginia, is hereby 11 amended and reordained to read as follows: 12 13 Sec. 2-108. - Probation period of employment. 14 The probation period for employees other than sworn, non -certified police and 15 fire personnel shall be defined as the initial twelve (12) calendar months of employment 16 following an original employment or re-employment. The probation period for sworn, 17 non -certified police and fire personnel shall be fifteen (15) calendar months of 18 employment following an original employment or re-employment. However, the 19 probation period for all probation employees shall be extended one (1) pay period for 20 every fifteen (15) consecutive calendar days a probation employee is on injury leave, 21 suspension, leave without pay, or sick leave status, or performing transitional work due 22 to a temporary limited duty status resulting from injury or illness. Any salary change 23 which may occur upon completion of the probation period shall not become effective 24 until the first day of the pay period following such completion. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 9th day of April , 2013. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Human Resources CA12599 R-1 March 5, 2013 �,. 1 City AttVney's Office -76 - Item -VII-I.6 ORDINANCES/RESOLUTIONS ITEM #62713 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the 2013 Housing Choice Voucher Annual Plan, including the Revised Administrative Plan, and the City Manager to submit same to the U.S. Department of Housing and Urban Development (HUD) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE TO ADOPT THE 2013 HOUSING 2 CHOICE VOUCHER ANNUAL AGENCY PLAN 3 (INCLUDING A REVISED ADMINISTRATIVE 4 PLAN) AND TO AUTHORIZE THE CITY MANAGER 5 TO EXECUTE AND SUBMIT THE PLAN TO THE 6 U.S. DEPARTMENT OF HOUSING AND URBAN 7 DEVELOPMENT 8 9 WHEREAS, the City's Department of Housing and Neighborhood Preservation 10 ("DHNP") operates the federally -funded Housing Choice Voucher program ("HCVP"), 11 formerly known as the Section 8 Program; and 12 13 WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") 14 requires agencies that operate HCV programs to submit (1) an Annual Plan for each 15 fiscal year in which DHNP receives federal funding for its HCVP, and (2) a revised 16 Administrative Plan as applicable; and 17 18 WHEREAS, the purpose of the Annual Plan is to update HUD on the DHNP's 19 progress in achieving the goals stated in the five-year plan; and 20 21 WHEREAS, the purpose of the Administrative Plan is to describe in detail the 22 operational procedures of the HCVP in DHNP; and 23 24 WHEREAS, as required by HUD, DHNP has prepared the Annual Agency Plan 25 and an Administrative Plan; and 26 27 WHEREAS, the DHNP is also required by HUD to include a certification in the 28 Annual Plan demonstrating DHNP's compliance with applicable laws, and HUD rules 29 and regulations, in order to continue to operate the HCVP; and 30 31 WHEREAS, executive summaries of the Annual Plan and Administrative Plan 32 revisions are attached hereto, and a copy of both Plans are on file with the City Clerk. 33 34 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 35 VIRGINIA BEACH, VIRGINIA: 36 37 DHNP's Annual Plan and Administrative Plan revisions for the Housing Choice 38 Voucher Program are hereby ratified and adopted, and the City Manager is hereby 39 authorized and directed to execute and submit the Annual Plan to the U.S. Department 40 of Housing and Urban Development. 41 42 Adopted by the Council of the City of Virginia Beach, Virginia on the 9th day 43 of April , 2013. APPROVED AS TO CONTENT: Depa Neighb rhb CA12620 R-1 March 26, 2013 sing & Preservation APPROVED AS TO LEGAL SUFFICIENCY: Executive Summary 2013 Housing Choice Voucher Plans — Annual Plan Update and Administrative Plan Amendment Department of Housing and Neighborhood Preservation April 9, 2013 Federally -Required Plans for the Housing Choice Voucher Program The Virginia Beach Department of Housing & Neighborhood Preservation (VBDHNP) operates the Housing Choice Voucher Program (HCVP). This program provides funding for rental subsidies to nearly 2,000 households in Virginia Beach and, in some cases, in neighboring cities through the use of cooperative agreements for project -based housing developments. The U.S. Department of Housing and Urban Development funds this program and requires grantees to create and adopt the following plans: Plan Name Summary Purpose and Content Status Five Year Agency Plan Provides long term guidance for the program This plan was developed and adopted by Council in 2010 Annual Agency Plan Update Describes the agency's plan for the 2013 fiscal year, consistent with the five year plan Developed by staff and proposed for adoption by Council with this ordinance Administrative Plan Describes in detail how the HCV program will operate Amendments have been developed by staff and are proposed for adoption by Council with this ordinance Additional Detail on Plan Contents Five Year Agency Plan: This plan provides the long-term direction for the agency in operating the HCV program. No changes to this plan are proposed at this time. Annual Agency Plan Update: This plan must be submitted annually. As a HUD designated High -Performing Agency that operates only the Housing Choice Voucher Program, VBDHNP is only required to submit a streamlined Annual Agency Plan Update that does not contain the level of detail required in the past. 1 Executive Summary 2013 Housing Choice Voucher Plans — Annual Plan Update and Administrative Plan Amendment Department of Housing and Neighborhood Preservation April 9, 2013 However, the Annual Agency Plan Update does contain a summary of progress in meeting the strategic goals as stated in the Five Year Plan. At a meeting on January 30, 2013, the Plan Update was reviewed with the Resident Advisory Board, which is comprised of participants in the Virginia Beach Housing Choice Voucher program. On February 5, 2013, the Annual Pian Update was made available to the public for the required 45 -day review period. A public hearing was held on March 26, 2013, and all comments received have been considered for inclusion in the final Plan Update. The approved Annual Agency Plan Update and the two required certifications must be electronically submitted to HUD not later than 75 days before the beginning of the city's July 1, 2013 fiscal year. Therefore, the Annual Plan Update is due on April 15, 2013. Housing Choice Voucher Program Administrative Plan: Staff has developed the following revisions to the plan for 2013: • Includes a change in the threshold amount for prosecuting fraud involving unreported income. Failure to accurately report income results in excessive rental subsidy payments. Persons determined to have willfully underreported income may enter into a repayment agreement for a period of up to 36 months. Amounts in excess of $2,400 will result in immediate termination from the Housing Choice Voucher Program and referral to the City Attorney for criminal prosecution. • Includes a provision for family members to serve as live-in aides, provided they meet all requirements consistent with HUD's definition of a live-in aid. • Adds HUD definition of a single person family. • Several minor format, grammatical, and organizational corrections and contained in the attached FY 2013 Annual Plan Update Summary of Administrative Plan Changes. Council approval is required for any revisions to the Administrative Plan. Once approved, the revised Administrative Plan will be made available for review, upon request, to Housing Choice Voucher Program participants and the general public. 2 FY 2013 Annual Plan Update Summary of Administrative Plan Changes Location Change/Issue Page 2-1 Add definition of Single person to family composition from CFR 5.403 which reads: "A single person family may be an elderly person, a displaced person, a disabled person and any other single person who is not elderly, displaced, disabled, or the remaining member of a tenant family. " Page 2-2 Live in Aide - Change language to allow relatives to serve as live-in aids provided they meet all elements of the live-in aide definition. Page 3-1 Applying for Admission -Language added to reflect option of taking on-line applications only. Page 3-5 Adds Tenancy Addendum to RFTA and Exit Package; Voucher With Tenancy Addendum Page 4-4,4-5 Preferences — elderly and or disabled families on fixed incomes assisted through the TBRA program may be awarded a voucher, provided they are in good standing, i.e., maintains dwelling unit, pays rent portion on time, no program violations on record. Page 4-7 Selection of applicants from the waiting list will be updated to reflect current procedures, specifically for SRO and NOAH unit occupancy. Page 6-10 Averaging Income and Conducting Interims - Threshold amount is $2400. Subsidy adjustments for Increases in income below under this amount will be made at the next annual re -examination. Page 10-4 HQS — Section G. 3. b. First Re -Inspection Failure - Should Read: "HAP payments to the landlord will be abated and/or client benefits will be suspended in accordance with the date indicated on the notice. Page 17-3 Section E. Guidelines for Repayment agreements should read: Repayment agreements will be executed between the city of Virginia Beach and the head of household/co-head, or head of household and spouse when the amount of indebtedness is $2400 or less. Debts exceeding that amount will be forwarded to the Commonwealth Attorney for prosecution under the fraud statutes. (New language added) Page 19-3 Project-based Vouchers - Section C - Removed language awarding higher points for projects with 25% or fewer units assisted. Page 19-31 Section Z. Added language to cover partnerships with area agencies in the use of project based vouchers in the development of regional housing projects. -77 - Item -VII-I.7 ORDINANCES/RESOLUTIONS ITEM #62714 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Resolution to APPOINT Dannielle C. Hall-Mclvor as Assistant City Attorney effective April 16, 2013 Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 A RESOLUTION APPOINTING DANNIELLE C. HALL - 2 MCIVOR TO THE POSITION OF ASSISTANT CITY 3 ATTORNEY 4 5 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That pursuant to § 2-166 of the City Code, Dannielle C. HaII-Mclvor is hereby 9 appointed to the position of Assistant City Attorney, effective April 16, 2013. 10 11 Adopted by the Council of the City of Virginia Beach, Virginia, on the 9th day of 12 April , 2013. APPROVED AS TO CONTENT AND LEGAL SUFFICIENCY: City Attorney's Office CA12621 R-1 March 26, 2013 -78 - Item -VII-I.8 ORDINANCES/RESOLUTIONS ITEM #62715 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and APPROPRIATE a $109,175 Grant from Virginia Department of Health Emergency Medical Services "Four -for -Life" program to EMS re rescue equipment and medical supplies Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE TO ACCEPT AND 2 APPROPRIATE FUNDS, TO PURCHASE 3 ADDITIONAL RESCUE EQUIPMENT AND 4 MEDICAL SUPPLIES 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That $109,175 is hereby accepted from the Virginia Department of Health, Office of 9 Emergency Medical Services and appropriated, with estimated state revenues increased 10 accordingly, to the FY 2012-13 Operating Budget of the Department of Emergency Medical 11 Services to purchase additional rescue equipment and medical supplies. Adopted by the Council of the City of Virginia Beach, Virginia on the 9th day of April 2013. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: 1' Management Services CA12616 R-1 March 19, 2013 1 -79- Item -VII-I.9 ORDINANCES/RESOLUTIONS ITEM #62716 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to APPROPRIATE $25,868 from EMS salvaged material sales re defibrillators for the Police Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE TO APPROPRIATE FUNDS TO 2 PURCHASE REPLACEMENT AUTOMATED 3 EXTERNAL DEFIBRILLATORS FOR THE 4 POLICE DEPARTMENT 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That $25,868 is hereby appropriated, with estimated revenues from sale of salvage 9 material increased accordingly, to the FY 2012-13 Operating Budget of the Department of 10 Emergency Medical Services to purchase replacement automated external defibrillators for 11 the Police Department. Adopted by the Council of the City of Virginia Beach, Virginia on the 9 th day of April 2013. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services CA12619 R-1 March 25, 2013 -80 - Item -VII-L 10a/b ORDINANCES/RESOLUTIONS ITEM #62717 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council ADOPTED, BY CONSENT, Ordinance to TRANSFER within the FY 2012-13 School Operating Budget to the School Technology Fund: a. $125,565 from the Instruction Classification b. $111,218 from the Administration Classification Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 AN ORDINANCE TO TRANSFER FUNDING 2 WITHIN THE FY 2012-13 SCHOOL OPERATING 3 BUDGET 4 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That $236,783 is hereby transferred within the FY 2012-13 Schools Budget in the 9 amounts set forth below: 10 11 1. $125,565 from the Instruction Classification of the School Operating Fund to 12 the School Technology Fund (106), and 13 14 2. $111,218 from the Administration Classification of the School Operating Fund 15 to the School Technology Fund (106). Adopted by the Council of the City of Virginia Beach, Virginia, on the 9th day of April , 2013. APPROVED AS TO CONTENT: Management Services CA12617 R-1 March 21, 2013 APPROVED AS TO LEGAL SUFFICIENCY: City Atto „s: Office t VIRGINIA BEACH CITY PUBLIC AHEAD OF THE CU School Board of the City of Virginia Beach 2512 George Mason Drive P.O. Box 6038 Virginia Beach, VA 23456-0038 (757) 263-1016 www.vbschools.com/schoolboard James G. Merrill, Ed.D., Superintendent SCHOOLS RVE Daniel D. "Dan" Edwards, Chairman District 2 — Kempsville William J. "Bill" Brunke, IV, Vice -Chairman District 7 — Princess Anne Beverly M. Anderson, At -Large Emma L. "Em" Davis, District 5 — Lynnhaven Dorothy M. "Dottie" Holtz, At -Large Joel A. McDonald, District 3 — Rose Hall Robert N. "Bobby" Melatti, At -Large Samuel G. "Sam" Reid, District 6 — Beach Elizabeth E. Taylor, At -Large Leonard C. Tengco, District 1— Centerville Carolyn D. Weems, District 4 — Bayside RESOLUTION REGARDING FY 2012-13 BUDGET AND REQUEST FOR CATEGORICAUFUND TRANSFERS WHEREAS, the City of Virginia Beach, Virginia's adopted Budget Ordinance for the current fiscal year appropriated funds to the School Board of the City of Virginia Beach, Virginia by major Category; and WHEREAS, the Code of Virginia §22.1-115, as amended, requires that technology -related expenditures be made in a separate Fund or Category; and WHEREAS, the School Administration has determined that a number of schools and departments have technology -related spending needs that require categorical/fund transfers to enable such purchases such as: printers, printer cartridges, computers, monitors, promethean boards, computer supplies, software, e -book readers, iPads, laptops, Kindles, and WHEREAS, the following budget transfers are recommended by the School Administration: • Total of $125,565 from Operating Fund 115 - Instruction to Technology Fund 106 • Total of $111,218 from Operating Fund 115 - Administration to Technology Fund 106 WHEREAS, these transfers are also necessary to appropriately expense and account for technology -related expenses; and WHEREAS, transfers between categories/funds must be approved by the City Council prior to expenditure of such funds by the School Board. NOW, THEREFORE, BE IT RESOLVED: That the School Board approves and affirms the above listed recommended uses of these funds; and FURTHER RESOLVED: That the School Board requests that the City Council approve the budget categorical/funds transfers shown above; and be it FINALLY RESOLVED: That a copy of this Resolution be spread across the official minutes of this School Board, and the Clerk of the School Board is directed to deliver a copy of this Resolution to the Mayor, each member of the City Council, the City Manager, and the City Clerk. Adopted by the School Board of the City of Virginia Beach this 19th day of March 2013 SEAL ATTEST: k eut•/m CiV M YON-ediA . Dianne P. Alexander, Clerk of the Board Daniel D. Edwards, Chairman CERTIFIED TO BE A TRUE AND CORRECT COPY Clerk, School Board of the City of Nirgiola Beach Item -VII-J PLANNING -81- ITEM #62 718 1. ROVING AUTO, INC. MODIFICATION OF CONDITIONS and KRIST ENTERPRISES 2. C. CHRIS MITCHUM and WILLIAMHOLDA/HOLDA ENTERPRISES, LP CONDITONAL USE PERMIT 3. NICHOLSON PROPERTIES, LLC CHANGE OF ZONING April 9, 2013 1 -82- Item -VII-J PLANNING ITEM #62719 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council APPROVED IN ONE MOTION, BY CONSENT, Items 2 and 3(DEFERRED INDEFINATELY) of the PLANNING AGENDA. Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -83 - Item -VII-J.1 PLANNING ITEM #62720 Howard Tabor, Applicant spoke in SUPPORT. Charles Champan, 105 Wigton Court, Phone: 681-4190, spoke in SUPPORT. Bob Elms, 266 Raintree Road, Phone: 486-6506, spoke in OPPOSITION. Lee McDaniel, 3804 Winsor Woods Boulevard, Phone: 340-0201, spoke in OPPOSITION. Upon motion by Councilman Uhrin, seconded by Council Lady Wilson, City Council DENIED, Application of ROVING AUTO, INC. and KRIST ENTERPRISES for a Modification of Conditions Nos. 2 and 5 (approved January 13, 2009) re motor vehicle sales and service to delete restrictions at 300 South Rosemont Road DISTRICT 6 - BEACH Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -84 - Item —VII -J.2 PLANNING ITEM #62721 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin, City Council APPROVED and CONDITIONED, BY CONSENT, Application of C. CHRIS MITCHUM and WILLIAM HOLDA/HOLDA ENTERPRISES, LP for a Conditional Use Permit re auto repair garage at 5898 Thurston Avenue DISTRICT 4 —BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of C. CHRIS MITCHUM and WILLIAM HOLDA/HOLDA ENTERPRISES, LP for a Conditional Use Permit re auto repair garage at 5898 Thurston Avenue (GPIN1459932574) DISTRICT 4 — BAYSIDE The following conditions shall be required: 1. All motor vehicle repairs shall take place inside the building. 2. No outside storage of equipment, parts or materials shall be permitted. 3. No outside storage of vehicles in a state of obvious disrepair shall be permitted. If vehicles in this condition require storage, then such vehicles shall be stored within the building. 4. No tires for sale, merchandise or parts shall be displayed or stored outside. 5. All parking spaces required by the City Zoning Ordinance (CZO) must be marked by painted striping on the side, including handicap spaces, in accordance with the Americans with Disabilities Act (ADA). 6. Streetscape landscaping, in accordance with the City of Virginia Beach Landscaping Guide, shall be installed along Thurston Avenue. This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Ninth day of April, Two Thousand Thirteen April 9, 2013 1 -85- Item -VII-J.2 PLANNING ITEM #62721 (Continued) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 -86- Item -VII-J.3 PLANNING ITEM #62722 Upon motion by Vice Mayor Jones, seconded by Councilman Uhrin City Council DEFERRED INDEFINITELY, BY CONSENT, Application of NICHOLSON PROPERITIES, LLC for a Change of Zoning from A-12 Apartment to Conditional I-1 Light Industrial re office -warehouse units at 405 Fountain Drive DISTRICT 6 — BEACH Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 I -87- ITEM VII -K APPOINTMENTS ITEM #62723 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: HEALTH SERVICES ADVISORY BOARD HISTORICAL REVIEW BOARD OLD BEACH DESIGN REVIEW COMMITEE April 9, 2013 -88 - ITEM VII -K APPOINTMENTS ITEM #62724 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: SHARON BROWN 3 year term 05/01/13 — 04/30/16 AUDIT COMMITTEE Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 -89- ITEM VII -K APPOINTMENTS ITEM #62725 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: BRYAN CUFFEE Development Authority Representative 1 year term thru 12/31/13 HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE (HREDA) Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -90- ITEM VII -K APPOINTMENTS ITEM #62726 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: LES WATSON Unexpired Term thru 12/31/14 HISTORIC PRESERVATION COMMISSION Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 1 -91- ITEM VII -K APPOINTMENTS ITEM #62727 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: LUIS RIVERA RABBI ISRAEL ZOBERMAN 3 Year Terms 04/01/13 - 03/31/16 HUMAN RIGHTS COMMISSION Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemafy Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -92 - ITEM VII -K APPOINTMENTS ITEM #62728 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: JAMES ALLEN FOX 3 Year Term 04/01/13 - 03/31/16 TRANSITION AREA/ITA CITIZENS ADVISORY COMMITTEE Voting: 10-0 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Barbara M. Henley, Vice Mayor Louis R. Jones, John D. Moss, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: Robert M. Dyer April 9, 2013 -93 - Item -VII-N ADJOURNMENT ITEM #62729 Mayor William D. Sessoms, Jr. DECLARED the City Council Meeting ADJOURNED at 6:22 P.M. Ana" �X4(._. Amanda Finley- am s, CMC Chief Deputy City Clerk uth Hodges Fraser, MMC William D. Sessoms, Jr. City Clerk Mayor City of Virginia Beach Virginia April 9, 2013 1 -94- PUBLIC DIALOGUE Christina Ross, 718 Grant Avenue, Phone: 905-0265, requested the City close the Abortion Clinics within the City by rezoning the properties, buying the buildings where they operate and/or declaring the clinics as "dangerous nuisances ". Noah Meyers, spoke in favor of backyard hens. Hens eat a number of insects and dangerous parasites. Hens are also every educational and helps teach kids responsibility. The Public Dialogue re Non Agenda Items concluded at 6:28 P.M. April 9, 2013