The URL can be used to link to this page

Home My WebLink AboutOCTOBER 8, 2013 MINUTESCITY COUNCIL MAYOR WILLIAM D. SESSOMS, JR., At -Large VICE MAYOR LOLLS R. JONES, Bayside - District 4 GLENN R. DAVIS, Rose Hall - District 3 WILLIAM R. DeSTEPH, At -Large ROBERT M. DYER, Centerville - District 1 BARBARA M. HENLEY, Princess Anne - District 7 JOHN D.MOSS, At -Large AMELIA ROSS-HAMMOND, Kempsville - District 2 JOHN E. UHRIN, Beach - District 6 ROSEMARY WILSON, At -Large JAMES L. WOOD, Lvnnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - JAMES K. SPORE CITY ATTORNEY MARK D. STILES CITY ASSESSOR - JERALD D. BANAGAN CITY AUDITOR - LYNDON S. REMIAS CITY CLERK - RUTH HODGES FRASER, MMC CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA 8 October 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 MANAGER'S BRIEFINGS - Conference Room - 1. STRATEGIC PLAN TO END HOMELESSNESS Andrew Friedman, Director, Housing and Neighborhood Preservation Tim McCarthy, Chairman, BEACH Community Partnership 2. AQUARIUM — Agreement Amendment Lynn Clements, Director, Museums 3. PAID LEAVE FOR CITY EMPLOYEES Regina Hilliard, Director, Human Resources 4. ARREARS PAYROLL — City Council Discussion II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. INFORMAL SESSION A. B. C. - Conference Room - CALL TO ORDER — Mayor William D. Sessoms, Jr. ROLL CALL COUNCIL RECESS TO CLOSED SESSION 3:00 PM 5:30 PM VI. FORMAL SESSION - City Council Chamber - 6:00 PM A. CALL TO ORDER — Mayor William D. Sessoms, Jr. B. INVOCATION: Reverend James Parke, Jr. (Retired) C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF THE CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL and FORMAL SESSIONS September 24, 2013 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. MAYOR'S PRESENTATIONS 1. NATIONAL COMMUNITY PLANNING MONTH — Proclamation 2. OCEANS 12 Ray Toll, Chairman I. PUBLIC HEARINGS 1. Byrne Memorial Justice Grant Allocation 2. Community Legislative Agenda J. ORDINANCES/RESOLUTIONS 1. Resolutions AUTHORIZING distribution of the Preliminary Statement and providing the Master Supplement re the 2013 issuance of $46,060,000 in Water and Sewer System Revenue Bonds 2. Ordinance to AUTHORIZE the City Manager to execute an AMENDMENT to the Agreement between the City and the Virginia Aquarium and Marine Science Center Foundation, Inc. re construction of an "Aerial Adventure Attraction" 3. Ordinance to ESTABLISH a Capital Project, "Thalia Station Revitalization and Conversion" for an EMS station and to TRANSFER and APPROPRIATE $735,000 from other projects DISTRICT 5 - LYNNHAVEN 4. Ordinance to APPROPRIATE donated funds of $600 for improvements to Fire Station No. 01 DISTRICT 5 - LYNNHAVEN 5. Ordinance to ACCEPT and APPROPRIATE Grant funds from Edward Byrne Justice Assistance: a. $15,120 to the Sheriff b. $32,000 to the Police c. $62,117 to Parks and Recreation for Youth Opportunities K. PLANNING 1. Application of STEPHEN L. and LYNETTE M. ROHRING, for a Variance to the Subdivision Regulations, §4.1 (m)(1) of the City Zoning Ordinance (CZO) pertaining to right-of-way width for streets and a Special Exception, under the Form -Based Code, for a nonconforming structure at 423 20th Street DISTRICT 6 — BEACH RECOMMENDATION: APPROVAL 2. Application of BEACH MUNICIPAL FEDERAL CREDIT UNION/SISTERS II, LLC for a Conditional Change of Zoning from AG -2 Agricultural to B-2 Community Business, re construction of a full service Credit Union at 2440 Princess Anne Road DISTRICT 7 — PRINCESS ANNE RECOMMENDATION: APPROVAL 3. Application of COMMONWEALTH PROPERTIES/1B APT LAND, L.C. for a Conditional Change of Zoning from A-18 Apartment to Conditional A-36 Apartment re at 4585 Wicklow Place DISTRICT 3 — ROSE HALL RECOMMENDATION: APPROVAL 4. Applications of REED ENTERPRISES at Holland and Dam Neck Roads: DISTRICT 7 - PRINCESS ANNE a. Conditional Change of Zoning from AG -2 Agricultural to Conditional B-2 Business b. Conditional Use Permit: automobile repair and bulk storage RECOMMENDATION: APPROVAL 5. Application of SANDPIPER, LLC/JERRY J. COLLIER for a Conditional Change of Zoning from B-2 Community Business to Conditional H-1 Hotel at 4800 and 4802 Alicia Drive DISTRICT 4 — BAYSIDE RECOMMENDATION: APPROVAL M. APPOINTMENTS PARKS and RECREATION COMMISSION N. UNFINISHED BUSINESS O. NEW BUSINESS P. ADJOURNMENT ***************************** PUBLIC COMMENT Non -Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers ********************************** 2015 HEALTHCARE PLAN City Council/School Board Joint Meeting November 5th — 3:OOPM 2013 CITY HOLIDAYS Veterans Day - Monday, November 11 Thanksgiving Day & Day after Thanksgiving November 28 & Friday, November 29 Christmas Eve (half dui) - Tuesday, December 24 Christmas Day - Wednesday, December 25 ***************************** If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 ******************************** 10/8/13 st -1 - VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia October 8, 2013 Mayor William D. Sessoms, Jr., called to order the City Council's Informal Session, in the City Council Conference Room, Tuesday, October 8, 2013, at 3:00 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, James L. Wood and Rosemary Wilson Council Members Absent: None October 8, 2013 -2 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166 3:00 P.M. Mayor Sessoms introduced Andrew Friedman, Director — Housing and Neighborhood Preservation, and Tim McCarthy, Chairman — BEACH Community Partnership. Mr. McCarthy expressed his appreciation to the City Council for the support on their initiative to the Strategic Plan to End Homelessness. Together, with the Department of Housing and Neighborhood Preservation, much work has been done on this for the past few months to finalize the Strategic Plan to End Homelessness. VIRGINIA BEACH STRATEGIC PLAN TO END HOMELESSNESS Mr. McCarthy advised this Plan is a "moment of great synergy, collaboration and compassion" in addressing the issue of homelessness in the City. The City offers wonderful amenities and is a City for the New Millennium. The Plan is one of vision and hope for the City to deal with the most vulnerable amongst us. With the City Council 's support, significant efforts have been made and we have created a climate to successfully end Homelessness. Pastor Ray Yorkman is going to chair the fundraising effort for the new Housing Resource Center. PURPOSE OF BRIEFING • Provide City Council with overview and opportunity to provide feedback on draft Strategic Plan to End Homelessness • Changes to plan can be incorporated prior to consideration on October 22nd VIRGINIA BEACH HOUSING & NEIGHBORHOOD PRESERVATION ti1� BXA Cff Bringing an End to All City Homelessness October 8, 2013 -3 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) The City has a long history of helping the Homeless by taking an active role in addressing the issue since 1984. Virginia Supportive Housing has raised over 90% of the 10 -MILLION funding for the most recent decision to support Crescent Square. Most recently, Vice Mayor Jones, Council Lady Ross -Hammond and Mr. McCarthy attended the Opening of the new Cedar Grove Apartments, (one and two bedroom) providing "homes " for formerly homeless Veterans, single persons or families. This Project was created by Virginia Beach Community Development Corporation. Mr. McCarthy expressed his appreciation to the Faith Based organizations and the City for their efforts to end Homelessness and he looks forward to continue addressing this issue. Mayor Sessoms thanked Mr. McCarthy and BEACH Community Partnerships for their continued efforts and support. CITY'S LONG HISTORY OF HELPING THE HOMELESS WO The city has taken an active role in addressing homelessness since 1984 with non-profit, faith -based and regional partners. Some highlights include: • Winter Shelter program in operation since at least 1984 • Lighthouse Center opened in 1997 • First Continuum of Care submitted in early 2000's • First Council -adopted plan: Ten Year Plan to End Homelessness in 2007 • Cloverleaf Apartments opened in 2008 • Cedar Grove Apartments opened on Sept. 26, 2013 Mr. Friedman expressed his appreciation to Mr. McCarthy for his leadership. He has graciously volunteered his time for more than twenty-five (25) years. Mr. Friedman distributed a Draft of the Strategic Plan to End Homelessness. October 8, 2013 -4 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) Mr. Friedman advised it is important to understand Homelessness and the many reasons why families or individuals become homeless. UNDERSTANDING HOMELESSNESS • There are many reasons why families and individuals become homeless: job loss, mental illness, family breakup, inability to afford housing costs because of expensive health care costs, etc. • People move in and out of homelessness on an ongoing basis • There is not a single number of homeless people that we can house and say we have succeeded WHAT WE CAN DO: Get the best possible understanding of the different needs in our community, and act to address them The Department of Education defines homeless families to include those who are doubled -up, staying in hotels/motels or other precarious situations. Most recently, 790 students who are currently homeless were served by VBCPS. HOW MANY PEOPLE ARE HOMELESS IN VIRGINIA BEACH? * Based on 2013 Point -in -Time Count 456 Persons* • Sheltered: 389 • Unsheltered:67 Family Homelessness* • 63 households comprised of 200 people - 637 Students Served by VBCPS Project HOPE (2011-12) • Program supports children in homeless families • Students in Project HOPE include children in families who are at -risk of homelessness October 8, 2013 -5 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) The City has 91 individuals that are Chronic Homeless and 78 Veterans that are currently homeless. HOW MANY PEOPLE ARE HOMELESS IN VIRGINIA BEACH? * Based on 2013 Point -in -Time Count Chronic Homeless Individuals *: Continually homeless for a year or more; or have had multiple episodes of homelessness over the past 3 years • 91 individuals, or 20% of all homeless persons in Virginia Beach, were considered chronically homeless • Higher than national rate of 16% • Approximately 33% were unsheltered Veterans * • 78 veterans • Continue to be a priority for housing The City has the lowest number of Homeless persons compared to other Coastal Cities of the same size. HOW DO WE COMPARE TO OTHER CITIES? 2010 - HOMELESS PERSONS PER 10,000 OF GENERAL POPULATION 140 KW_ Virginia Beach 4 Virginia Beach (434,922) m Ocean City (167,857) w Ft. Lauderdale (1,759,132) it United States (301,461,533) ea Norfolk (236,071) . Myrtle Beach (501,134) - San Diego (1,297,618) Daytona Beach (580,076) Key West (74,024) October 8, 2013 -6 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) BACKGROUND & PURPOSE City Council adopted a 10 -Year Plan to End Homelessness in 2007 Required to continue receiving federal funds to address homelessness A community plan that defines how we'll all work together will increase our effectiveness and success The updated Plan incorporates a new comprehensive community approach to Homelessness: BACKGROUND & PURPOSE (CONT.) New Plan Title: from "10 -Year Plan" to "Strategic Plan" • Covers 2013-2018 • Will be revisited and updated on ongoing basis Updated plan will incorporate the following issues into a new comprehensive community approach to homelessness: • A study of the city's Housing Crisis Response System, completed earlier this year, recommended changes to the system of agencies and programs • In May, the City Council approved design funding for a Housing Resource Center to be located at 104 N. Witchduck Road • Federal regulations require certain changes to the city's homeless services system to be in effect by August 2014 October 8, 2013 -7 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) PLAN DEVELOPMENT PROCESS Housing Crisis Response System Study Federal Virginia Beach's Strategic Plan & Existing Ten - HEARTH Act Year Plan PLAN DEVELOPMENT PROCESS Virtual Town Hall BEACH Planning Forum: Committee Meetings: Aug. 5 — Sept. 5 Aug. 20 & Sept. 17** Public input meeting: Aug. 21 **The BEACH Community Partnership Planning Committee voted to endorse the plan at its Sept 17th meeting. October 8, 2013 -8 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) This Plan is intended to represent the vision of the entire Virginia Beach Community to end Homelessness as there are multiple funding sources; multiple agencies that deliver services and agencies that have their own missions and are faith driven. COMMUNITY PLAN & VISION Intended to represent the vision of the entire Virginia Beach community to end homelessness • Collective work of the BEACH Community Partnership, citizens, city government, and faith -based, nonprofit and private organizations • Intended to serve the needs of all who experience a housing crisis or homelessness including: families, individuals, youth, veterans and people transitioning from institutional living Realizing our personal and collective responsibility to our fellow man, we mobilize our community to prevent and end homelessness. We envision a future where everyone in Virginia Beach will be able to live in safe, decent and affordable housing. October 8, 2013 -9 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) The Plan provides guiding principles to prevent and end Homelessness by drastically reducing the occurrence and shorten the length of time of someone is homeless: GUIDING PRINCIPLES We can prevent and end homelessness in Virginia Beach for individuals and families. This means that we will drastically reduce its occurrence and shorten the length of time that people are homeless. Homelessness creates both direct and indirect costs to our community; ending homelessness will both reduce those costs and create other benefits for the entire community. We will end homelessness through the active collaboration of all sectors of our community. The BEACH Community Partnership represents our community's coordinated effort to do this. We must invest our efforts in solutions that are shown to be effective and sustainable. GUIDING PRINCIPLES (CONT.) We will work cooperatively with our local and regional partners to ensure that we do the most effective work with the lowest possible cost to taxpayers and other funders. Our regional work will focus on what can best be achieved together, while recognizing that some efforts require a local approach. We will focus on the prevention of homelessness, the diversion of people to other community and family supports; and helping people obtain permanent housing as quickly as possible; our programs will provide the least amount of assistance necessary to ensure housing stability. Our community will provide opportunities to help people avoid and end homelessness and we expect those who experience it to take maximum advantage of those opportunities. October 8, 2013 -10 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) GUIDING PRINCIPLES (CONT..) Our service system will be person -centered, ensuring that homeless families and individuals play an active role in defining their needs and wants and are supported to obtain services that best achieve those goals. We will use defined and measurable outcomes to determine what is most important to do and how we allocate money and staff and volunteer resources. The Plan has a number of Goals which are set forth below: GOAL 1: INCREASE LEADERSHIP, COLLABORATION, INNOVATION & CIVIC ENGAGEMENT IN OUR COMMUNITY EFFORTS Objectives: • 1.1: Strengthen the capacity of key public and private organizations to prevent and end homelessness. • 1.2: Increase community knowledge about homelessness, collaboration and successful interventions to prevent and end homelessness. • 1.3: Maintain and expand partnerships with all those who wish to be part of the effort. October 8, 2013 -11 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) GOAL 2: CREATE A COLLABORATIVE SYSTEM OF SERVICE DELIVERY AND ACCESS THAT EFFECTIVELY AND EFFICIENTLY CONNECTS PEOPLE TO SERVICES THAT MEET THEIR BASIC NEEDS AND SUPPORT HOUSING STABILITY Objectives: • 2.1: Adapt our current system to ensure that it incorporates all components required by the federal HEARTH Act using recognized best practices. • 2.2: Replace and enhance the services provided by the Lighthouse Center by creating a Housing Resource Center as the focus for our community's effort to end homelessness • 2.3: Mobilize and support the coordination of community providers, volunteers and institutions to create or strengthen networks that address critical components of the services system GOAL 2: CREATE A COLLABORATIVE SYSTEM OF SERVICE DELIVERY AND ACCESS THAT EFFECTIVELY AND EFFICIENTLY CONNECTS PEOPLE TO SERVICES THAT MEET THEIR BASIC NEEDS AND SUPPORT HOUSING STABILITY (CONT.) Objectives: • 2.4: Ensure that the system reaches and effectively serves all those in need, including special needs populations, using person -centered principles and practices. • 2.5: Continually enhance the professionalism, effectiveness and accountability of the services system. • 2.6: Provide appropriate shelter and survival assistance to ensure that the homeless are safe and protected as they transition from homelessness to stable housing. October 8, 2013 -12 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) GOAL 3: TO INCREASE AND MAINTAIN THE SUPPLY OF AND ACCESS TO PERMANENT, AFFORDABLE HOUSING Objectives: • 3.1: Continue to develop affordable housing units • 3.2: Avoid losses of existing affordable housing units through ongoing review of rehabilitation needs and financing and program requirements. • 3.3: Increase financial subsidies and other support for access to rental housing. • 3.4: Continue to create partnerships with non-profit and private sector housing developers for development of affordable housing. • 3.5: Ensure an adequate supply of housing that is appropriate for special needs populations. GOAL 4: DEVELOP SUSTAINABLE RESOURCES TO SUPPORT OUR ONGOING COMMUNITY EFFORT Objectives: • 4.1: Increase the availability of funding for proven assistance programs and new initiatives that end homelessness. • 4.2: Identify and obtain new non -monetary resources. • 4.3: Partner regionally and statewide in resource development in order to ensure a net increase in available funding. October 8, 2013 !II -13- CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) The Plan provides monitoring and evaluation to ensure success: IMPLEMENTATION, MONITORING AND EVALUATION Monitoring and Evaluation is Critical to Success • Quality data and objective review is critical to enhancing our work • We plan to solicit an outside entity to conduct an annual evaluation of progress on our plan • We plan to provide regular reports of success to help continue and enhance community support Below are the next steps: Receive City Council feedback today City Council resolution for your consideration on Oct. 22 Post -Council adoption: • Publish and announce plan • Develop detailed sub -plan if needed • Submit to HUD October 8, 2013 -14 - CITY MANAGER'S BRIEFING STRATEGIV PLAN TO END HOMELESSNESS ITEM #63166(Continued) Mr. Friedman expressed his appreciation to the City for their continued support and looks forward to working with the community partners to address and end Homelessness. THANK YOU FOR YOUR TIME! For more information, contact: Andrew Friedman, (757) 385-5752 afriedma@vbgov.com Tim McCarthy mccarthyt@aol.com Mayor Sessoms thanked Mr. Friedman and the community partners for all their work to address and end Homelessness. October 8, 2013 -15 - CITY MANAGER'S BRIEFING AQUARIUM — AGREEMENT AMENDMENT ITEM #63167 3:36 P.M. Mayor Sessoms introduced and welcomed Lynn Clements, Director — Museums. Ms. Clements expressed her excitement to the proposed addition to the Virginia Aquarium. City` Council Presentation Virginia Aquarium & Marine Science Center Foundation Amendment to Agreement with the City of Virginia Beach October 8, 8013 Lynn Clements .> Below is the Virginia Aquarium Foundation's Mission: Virginia Aquarium Foundation's Mission • To Support the Virginia Aquarium to: "Inspire Conservation of the Marine Environment through Education, Research, and Sustainable Practices • Public Private Partnership (27 Years) • Annual Contribution to City of Virginia Beach Virginia Aquarium Annual Operating Budget: $3.8 Million • Yearly Capital Contributions for Exhibits and Exhibit Maintenance • Sponsor Education Programming • Operate the Marine Animal Stranding Response Program October 8, 2013 -16 - CITY MANAGER'S BRIEFING AQUARIUM — AGREEMENT AMENDMENT ITEM #63167(Continued) In 2005, the City purchased 38 acres back of the Aquarium's Marsh Pavilion, which is a part of the proposed Project: • Agreement with City of Virginia Beach June 25, 2012 • City Purchased 38 Acres • Aquarium & Owls Creek Master Plan references "Park and Entertainment Land" In December 2011, the Owls Creek Master Plan was adopted. This Plan is a 1,200 acre Plan including a Park and Entertainment Land, and this Project is consistent with the Master Plan: Owls Creek Master Plan 1 0.5-5311.16 6 .361111.6 ViA4316165 601433111315611111,01.5 ROI,. 61111..666 CORM 13111.1111.111.1166 4 51.141. 563.116.41 MC /MOM 51611.111161 ou"665,5.51 6 16.66561/3.110.155611461,16536151336.1 5444661.651.3.6.151,56.3 . (.6.5351.0.51655111011036L1116111611501.6110/31363 11 46.1111163131614.51.1651 11 5.1111455113111.15511W11.131112 UMW. 13 ..46.551.666 546..5 06.66110113 15 16366641346.0.1.6.14511551111.311 11 53131111611.6566411.143.3 ROMEO 656}6.103151 666116 C115111511136 1651.14313515C3511.364131 6.6 (15.169016613.11115.63.416.1111. 21 651.1164 (13665411161. 50.151.3.55.4.1.1161566,11.1151,401116 Is Rens. mosel, 20 2001A20.00 .11151166.6116 5.5110314.1167 .51166 67 W.10.1511.06 1.16166511 October 8, 2013 -17 - CITY MANAGER'S BRIEFING AQUARIUM — AGREEMENT AMENDMENT ITEM #63167(Continued) This Project is proposed to be constructed at the corner of General Booth and Birdneck Boulevards: The Marsh Pavilion is 18 years old and will be undergoing renovation in the near future. The "Zip Lines" will go across Owls Creek and Outdoor Ventures Virginia Beach was selected as the vendor to provide this portion of the Adventure Park: October 8, 2013 111 -18- CITY MANAGER'S BRIEFING AQUARIUM— AGREEMENT AMENDMENT ITEM #63167(Continued) Technically, the City Manager could have approved this proposed Amendment to the Agreement; however, the Foundation is so excited about this project and wanted to keep City Council and the Citizens fully apprised of the project. The Foundation will maintain the Coastal Conservation Gardens. The Aquarium has preliminary approval from the Navy and is scheduled to meet with the Navy for final approval of the plans this week: • Add the terms "Attractions and Concessions" • Authorization to utilize portions of the 38 acre parcel October 8, 2013 -19 - CITY MANAGER'S BRIEFING AQUARIUM — AGREEMENT AMENDMENT ITEM #63167(Continued) The Open Space Committee has been fully briefed and endorsed this project. The Coastal Conservation Garden Site was partially purchased with Open Space funds and the Foundation will partner with Parks and Recreation. VIRGINIA AQUARFIUM Experience th8 Fun! Virginia Beach Parks and Recreation October 8, 2013 -20 - CITY MANAGER'S BRIEFING AQUARIUM — AGREEMENT AMENDMENT ITEM #63167(Continued) State-of-the-art Coastal Conservation Garden and Learning area with outdoor adventure activities focused on the beauty and diversity of the Owls Creek area. Public/non-profit partnership allows the Department of Parks and Recreation and the Virginia Aquarium Foundation to develop and maintain gardens and the Virginia Aquarium to own and operate an aerial adventure park that combines rope ladders, zip lines and rope bridges. AQUARIUM EXperienee the Fun! Virginia Beach .Parks and Recreation Viewing and Leisure on the Ground AQ. UpA Rr I. U. M Virginia Aquarium Foundation to fund portion of Coastal Conservation Gardens by Williams Family Fund Endowment. Maintenance of the Garden will be from the Proceeds of the Aerial Adventure Park, approximately $50,000 per year. Goal: Bring children and adults of varied physical abilities into direct contact with plant and animal life in the Owls Creek area and help them understand the importance of the environment. EXperienee the Fun! Virginia Beach Parks and Recreation Park access will be free and open to the public and will open in the Fall of 2014 October 8, 2013 -21 - CITY MANAGER'S BRIEFING AQUARIUM – AGREEMENT AMENDMENT ITEM #63167(Continued) The Adventure Park will be constructed in two (2) phases. Phase I of the Adventure Park is scheduled to open June 15th and will consist of Labyrinth—ages 5 -and up; Aerial Adventure Course; Training Course and Zip Lines across Owls Creek. Phase II will consist of the Adrenaline Tower and Thrill Hill; Parallel Zip Lines; Power Fan and Tree Top Canopy. ILLUSTRATIVE MASTER PLAN The Adventure Park at the Virginia Aquarium Vrwma Bnth rrpmr WPL LANDSCAPE ARCHITECTS LAND SURVEYORS CIVIL ENGINEERS Plans October 8, 2013 -22 - CITY MANAGER'S BRIEFING AQUARIUM – AGREEMENT AMENDMENT ITEM #63167(Continued) Aerial Adventure Park at the Virginia Aquarium • Open House August 26th • What is An Adventure Park—Accordinq to Participants........ Ms. Clements thanked City Council for their continued support of the Aquarium. She is excited to see this project move forward. Mayor Sessoms expressed his appreciation to Ms. Clements and her team that worked on this project. October 8, 2013 -23 - CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168 4:08 P.M. Mayor Sessoms introduced and welcomed Regina Hillard, Director — Human Resources. Ms. Hillard thanked City Council and stated she would provide an update on the Paid -Time -Off (PTO) Plan for Hybrid Employees: PAID -TIME -OFF (PTO) PLAN FOR HYBRID EMPLOYEES CITY COUNCIL BRIEFING OCTOBER 8, 2013 Ms. Hillard is looking for direction from City Council for the Preferred PTO Plan and language for a proposed Ordinance: October 8, 2013. Presentation Goals Determine: • Preferred PTO Option • Ordinance language required October 8, 2013 -24- CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168(Continued) PTO Plans are more prevalent in the private -sector; however, research indicates an upward trend of PTO in the public -sector. to 8.2013 Paid -Time -Off Plan • Combines certain leaves, such as sick leave and vacation, into one leave bank • More prevalent in the private sector • Upward trend of PTO in the public sector The PTO Plan is recommended for new employees hired after January 1, 2014, except for Public Safety Employees as they are exempt. October 8,2013 4 Common Elements of Paid -Time -Off (PTO) Programs • Accruals are typically based on service time and gradually increase with tenure • Annual carry-over of at least one-year accrual • Payout at 100% upon termination • Some offer "cash out" options verses annual carryover while still employed • Some PTO programs include other paid leave (e.g., holiday, bereavement) October 8, 2013 -25 - CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168(Continued) If a PTO Plan is not developed and implemented, then new employees hired after January 1, 2014, will have a higher benefits package than current employees. Below are some of the advantages of developing and implementing a new PTO Plan: October 8, 2013' New PTO Plan for Hybrid Employees • Significant Benefit Difference • Plan 1 & 2 Employees: Sick Leave Accrual for all illnesses • Hybrid: Short-term and Long-term Disability • New Paid -Time -Off Program • Sustainable • Does not exceed leave benefits of current employees • Encourages careful use of leave • Helps eliminate sick leave abuse • Aligned with best practices for employee time management The below proposal was presented to City Council on September 10`''. Although the leave accrual may be conservative compared to others, it does provide flexibility for employees to accrue enough PTO to cover short term disability (7 consecutive calendar day waiting period), 40 hours family sick leave and at least 40 hours vacation. .Oct 8.2013 Hybrid Employees Paid -Time -Off (PTO) Seryice Time 10 20+ Initial Proposal Monthly Accrual Accrual Per Year Hours Days Hours 10 15 120 Maximum Car over/Pa out Days/Hours on 12/31 25 200 12 18 144 28 224 14 21 168 31 248 16 24 192 34 272 October 8, 2013 -26 - CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168(Continued) Darker 8 Considerations Feedback from City Council • Encourage use of leave to enhance productivity and employee well-being • Balance service delivery with personal need for time off STD & LTD Plan Components (State Mandated) • Short-term disability after seven consecutive calendar day waiting period • Long-term disability after 125 days of short-term disability Recruitment • Remaining competitive in the market related to leave benefits • Attracting and retaining talent Based on the considerations, City Staff developed a Revised PTO Plan. The biggest differences are: changes to the service tiers to coincide with the current service tiers for annual leave; leaves the accrual the same but lessens the carryover by 80 hours per tier, making the carryover equal to the annual accrual. October 8,2013 Hybrid Employees Paid -Time -Off (PTO) Service Time 0 5 Revised Proposal Monthly Accrual Accrual Per Year I Maximum Car over/Pa out Hours Days Hours Days/Hours on 12131 12 18 144 18 144 14 21 168 21 168 16 24 192 24 192 18 27 216 27 216 October 8, 2013 -27 - CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168(Continued) Over Revised Proposal (Contd) • Advantages • Carryover provides flexibility after the initial service tier to take additional days (beyond 7 consecutive calendar day waiting period, 40 hours family sick leave and 40 hours vacation) as needed early in the new year • Provides employees the capacity to use some paid leave for FMLA intermittent use if necessary while retaining leave for vacation • Considerations • After the first year an employee who has reached the annual carryover would have to use/lose all accrued PTO annually while in the same length of service tier • Compared to the initial option, provides less of an ability to build leave to plan for future events or to cover family illness Based on conversations with Councilman Davis, below is an Alternative Proposal. This proposal retains the accrual; again with the acknowledgement that adjustments may be needed based on the market cities, but caps the annual carryover at fifteen (15) days per year. October 8, 22013'. 10 Service Time e<5 Alternative Proposal Monthly Accrual Accrual Per Year Maximum Carryover/Payout Hours Days Hours Days/Hours on 12131 12 18 144 14 21 168 16 24 192 18 27 216 15 15 15 15 120 120 120 120 October 8, 2013 -28 - CITY MANAGER'S BRIEFING PAID LEAVE FOR CITY EMPLOYEES ITEM #63168(Continued) October 0 2013 Alternative Proposal (cont'd) Advantages Lower carryover provides increased incentive to use leave • Lower carryover results in lower cost for payout upon termination or retirement Considerations After the first year an employee who has reached the annual carryover would have to use/lose all accrued PTO annually No recognition of service time in determination of carryover Compared to the prior options, provides less of an ability to build leave to plan for future events or to cover family illness May increase number of employees without enough leave early in the calendar year to cover waiting period and family sick leave • May be less competitive in the market Our market cities have not made determinations so the Ordinance language recommendation will allow PTO but will not provide specific language: October $ 361: Ordinance Language Recommendation: • Modify ordinance to allow PTO for hybrid employees in accordance with City policy Mayor Sessoms thanked Ms. Hillard for her work. October 8, 2013 -29 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169 4:38 P.M. Mayor Sessoms introduced and welcomed Patti Phillips, Director — Finance. Mrs. Phillips will be providing an overview and alternative solutions to achieving an Arrears Payroll: Alternative Solutions To Achieving An Arrears Payroll City Council Briefing October 8, 2013 Below is a Summary of Alternative Solutions: September 23;;2013 Summary of Alternative Solutions 1. Pay conversion pay for the 9 days employee is short in the conversion pay period to result in the same pay to each employee; the employee will see no change in pay, except the employee will receive the arrears pay when separating from the organization. • Cost of conversion pay ($5.8 million to GF, $1.3 to enterprise funds). Equivalent to 2.4% additional pay at separation. • Must be expensed in year of implementation 2. Treat additional 9 days as a no interest loan, to be withheld from the final pay at separation • Must obtain signature of each employee acknowledging the 9 days as a loan that will be repaid at separation • Difficult to administer and educate; creates air of suspicion 3. Pay employees for 6 days only during conversion with no loan and no conversion pay • Will be hardship to many; may drive employees to incur costs (short-term loans) 4. Put all new hires in arrears, and leave all others on same basis as now. • After 3-4 years the city can consider moving the remaining employees to arrears Will put burden on payroll and departmental payroll staff — two payroll processes - three pay plans Does not reduce risk of payroll failure 5. Move pay date 1 day at a time over a 15-18 month period until 9 days In arrears is achieved. • The pay check will be the same as currently, only eventually 9 days later • City may need to pay one health care premium for the employee, for 1.delayed payment (Less than $600,000). • Gradual changing of pay dates will be confusing to employees and impact on automatic banking payments — creates air of suspicion • Administratively simple • W-2 impacted but not VRS retirement or VRS costs — results in delay of 9 days at separation 2 October 8, 2013 -30 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169(Continued) Converting to Arrears—Alternative #5: Moving the pay date 1-2 days incrementally • Beginning Feb 2014 move the pay date in small increments. • Goal — pay date nine days in arrears —shifts pay date to 9th and 24th of each month. • Pay period end date remains the same at the 15th and last day of the month. EXAMPLE OF TRANSITION TO ARREARS y D: an, Jan 15 Jan 1-15 0 Jan 31 Jan 16 — Jan 31 Feb 14 Feb 1 — Feb 15 Mar3 Feb 16 Feb 28 0 3 Mar 18 Apr 3 Mar 1 — Mar 15 Mar 16 — Mar 31 3 3 Apr 18 May 5 Apr 1 —Apr 15 Apr 16 —Apr 30 3 5 May 21 Jun 6 May I — May 15 May 16 —May 31 6 6 Jun 23 Jul 8 Jul 23 Jun. 1 — Jun. 15 Jun. 16 — Jun 30 Jul 1 — Jul 15 8 r Aug 8 Jul 16 — Jul 31 8 Aug 25 Sep 9 Aug 1 —Aug 15 Aug 16 —Aug 31 10 9 Sep 24 Oct 9 Sep 1 Sep 15 Sep 16 — Sep 30 9 Oct 24 Nov 10 Oct 1 — Oct 15 Oct 16 — Oct 31 9 10 Nov 24 Dec 9 Nov 1 — Nov 15 9 Nov 16 —Nov 30 9 Dec 24 Jan 9, 2015 Dec 1 — Dec 15 9 Dec 16 - Dec 31 9 October 8, 2013 -31 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169(Continued) 2014 Calendar January a'iCl BIENUUNUM �ft JSa Y.• I Oto 0111=1111111111111MUI ,. ia® m1rlU • AliIIIMENUill EDIENIURBIN MEM November roh. r, January 2015 1 Below are advantages of the Incremental Approach: Advantages of Incremental Approach !edifieesdnaoY r r rtc majn Programming required payroll system. . Accomplishes goat !by end ofcalendar year 2014. ty conversion Jul 2015 Se s'conditions for bi-week October 8, 2013 -32 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169(Continued) Below are the disadvantages of the Incremental Approach: clay ribti rt tO h in 1 • _hould d yi h h e a rnployees ma it a king l bill paytng!arrangements wilt noedto: be rescheduled; . mpioyees' flexible benefit and United Way deductions will be les: planred`for2014; could result in costs not covered. Fixes pay dates as 9th and 24th versus 15th and last day each month. Staff recommends Alternative #1: Staff Recommendations • Alternative #1 Pay conversion pay for the 9 days employee is short in the conversion pay period to result in employees receiving their same pay; the employee will see no change in pay, and will receive pay after separation according to the arrears schedule. • No Hardship • Cost: General Fund Enterprise Funds $5.8 million 1.3 million $7.1 million • Savings Annually > Reduced overtime and special pay $1,500,000 > Productivity gains for PALS 326,800 > Saved LWOP and separation pay adjustments 25,000 Total $1.851.800 > Payback: 4.1 years October 8, 2013 -33 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169(Continued) ARREARS — Conversion pay — Alternative #1 • Arrears reduces risk of not processing a payroll for all employees. • Will reduce payroll adjustments by 75%. • $3 million to be appropriated from General Fund Balance, remainder from existing FY14 salary appropriation. • Investing in arrears is a prudent use of tax payer dollars to correct our largest administrative function. Below is the Arrears Timeline: ;''September 23,12013 Arrears Timeline ity Council Approve Arrears Conversion • Appropriate $3 million from 2013 Fund Balance Appropriateimplementation costs of $450,000 from fund balance. 2. Staff begin to plan payroll; 3. Go Live Window organize and implement arrears Oct. 22, 2013 Nov. 1, 201 May 15 -June 30, 2014 10 Mayor Sessoms thanked Ms. Phillips and invited City Council's discussion. Councilman DeSteph suggested going to Bi -Weekly Pay and Arrears at the same time as he is uncomfortable separating the two. Councilman Dyer stated this is a critical point as the new hybrid employee comes on board after January 1, 2014, and he is not in favor of waiting another year for action. Councilman Dyer referenced a letter from Lyndon Remias, City Auditor, dated March 14, 2013, and a Memorandum from Thomas M. Leahy, Director — Public Utilities, dated April 5, 2013. Mr. Leahy recommended implementing Arrears -Based Payroll with Bi -Weekly Pay Period. October 8, 2013 -34 - CITY COUCNIL DISCUSSION ARREARS PAYROLL ITEM #63169(Continued) Council Lady Wilson does not feel we have given Option #2 enough consideration. When employees leave the City the majority of them have leave accrued. This will avoid employees having to change payment dates and unnecessary hardships on the employees. Council Lady Wilson suggested employees enter into a "Loan Agreement" if they do not have unused leave upon separation from the City. Councilman Davis advised that technically employees will be losing a pay period during the year but really it is just a shift of nine (9) days. Councilman Davis advised he does not fully understand if the $7.1 -MILLION as a real cost. Mayor Sessoms advised this is an accounting procedure. This cost will actually not be taken from the General Fund but will show as an accrual -based debt. Councilman Davis asked what it would take to go to bi-weekly pay. Ms. Phillips advised in order to go to bi-weekly pay periods the City must also have an arrears -based payroll. The implementation costs were approximately $1 -MILLION when we last discussed the proposal with City Council. Councilman Moss advised although the $7.1 -MILLION is an accrual accounting basis, it does mean the City is setting money aside for other purposes and not to be used for other opportunities. Mayor Sessoms stated the funds will be set aside and not expended in one year but over a period of time as needed when employees separate from the City. Ms. Phillips reiterated Staff's recommendation is to take $5.8 -MILLION from the General Fund and $3 -MILLION from the Fund Balance. Councilman Moss would like the break-out of the accounts from which those funds will come that make up the difference. Councilman Moss wants to see the budget items. City Council should expect to see the reduction for the savings realized. Councilman Dyer inquired of the City Attorney if every employee would be required to enter into a Loan Agreement as suggested by Council Lady Wilson. The City Attorney advised the Loan Agreement would be necessary should City Council choose Option #2. October 8, 2013 -35 - Councilman Dyer confirmed Part -Time Employees are currently paid in arrears. If the City is looking long term in improving efficiencies and effectiveness, this would generate some positive impact after implementation. Mayor Sessoms expressed concern regarding the loss of pay periods and reduction of W -2s. This reduction could impact an employee's ability to obtain a loan and that is troubling to him. Mayor Sessoms recommended supporting the Staff's Recommendation. October 8, 2013 -36 - CITY COUNCIL LIAISON REPORTS 5:01 P.M. ITEM #63170 Council Lady Henley will be bringing forward a request from the Transition Area ITA on October 22, 2013, seeking direction from City Council. October 8, 2013 -37 - CITY COUNCIL COMMENTS 5:02 P.M. ITEM #63171 Council Lady Henley visited the site of the Nimmo Parkway Road Project last Tuesday and was very impressed. City Council made a good decision back in 1986/1987 when they approved this project. She attended the 10th Anniversary of the Princess Anne Library on Saturday and realized what a positive impact this road project will have on a large area of the City. She requested the City look at the impacts the road project will have on City Agencies and suggested putting together a Task Force. She also would like to look at the environmental impacts this road project will have on the "Holland Swamp". October 8, 2013 -38 - CITY COUNCIL COMMENTS ITEM #63172 Councilman Moss advised FEMA published the new flood maps and requested a briefing with the old map, the new map and the number of new residents that are now in the Flood Zone. October 8, 2013 -39 - CITY COUNCIL COMMENTS ITEM #63173 Councilman Moss attended the recent "Fire Fighter of the Year" Celebration and learned that some Pump Trucks have four (4) Firefighters while others only have three (3). Councilman Moss suggested rather than adding to the top line number of employees, the City look at where we can take risks in other departments to reduce the risk the City is taking in Public Safety, reallocating some full time employees. October 8, 2013 -40 - CITY COUNCIL COMMENTS ITEM #63174 Councilman Moss requested the date for the Health Care Briefing. City Manager advised it is tentatively scheduled for November 5th. Mayor Sessoms advised he just heard from Chairman Edwards and the Briefing will be delayed a week or two because November 5th is Election Day. October 8, 2013 -41- CITY COUNCIL COMMENTS ITEM #63175 Councilman Moss requested updated information regarding the impacts the Federal Government Shutdown is having on the City. October 8, 2013 -42 - CITY COUNCIL COMMENTS ITEM #63176 Councilman Moss requested a status update on using Old Dominion University and Virginia Tech University as academic resources for Strategic Growth Area assessments. City Manager Spore advised the City has not pursued that as yet as it has not been able to get on the "radar screen "; however, it will be done shortly. October 8, 2013 -43- CITY COUNCIL COMMENTS ITEM #63177 Councilman Moss requested information regarding the command and control of the 2"a infant death involving Child Protective Services. Councilman DeSteph advised he met with the Director of Child Protective Services and Deputy City Manager Cindy Curtis. The new Director has done a great job in making positive changes and will be presenting this information to City Council in the near future. October 8, 2013 -44 - CITY COUNCIL COMMENTS ITEM #63178 Councilman Moss requested the date for the upcoming 5 -Year Forecast and City Manager Spore advised it is scheduled for November 19th Councilman Moss suggested the information from the recent State of the Region Report be incorporated. Councilman Moss referenced an article in the Virginian Pilot regarding the Hampton Roads Regional Sewer. For places like the City that has maintained their Capital Stock, the Regional Proposition does not offer the City very much except bills for communities that have neglected their sewer infrastructure. October 8, 2013 -45 - CITY COUNCIL COMMENTS ITEM #63179 Council Lady Wilson, along with Mayor Sessoms and Vice Mayor Jones, attended the Ground Breaking of the Chesapeake Bay Foundation Building, which is the most environmentally advanced building in the world. This will be a huge attraction for the City. October 8, 2013 -46 - CITY COUNCIL COMMENTS ITEM #63180 Vice Mayor Jones invited City Council to drive down Haygood Drive and the newly opened Wesleyan Drive. This project has been needed for a long time. Vice Mayor Jones expressed his appreciation to the City Manager and his Staff for moving this project forward. October 8, 2013 -47 - CITY COUNCIL COMMENTS ITEM #63181 Council Lady Ross -Hammond expressed her appreciation to the Mayor, City Manager and the Commonwealth's Attorney for their attendance at the Kempsville Citizens Advisory Committee's meeting. Kempsville is focused on enhancing Historic Kempsville to bring back the character of the area. October 8, 2013 -48 - CITY COUNCIL COMMENTS ITEM #63182 Council Lady Ross -Hammond met and worked with the Developer of the recent car wash Application regarding the traffic concerns expressed by the neighbors. The Developer, Dan Bartley, advised he met with City Staff and walked through the Plan to confirm everyone is on the same page regarding efficiencies of the traffic flow. City Staff confirmed the traffic can take a left across the double yellow line and will not be forced to turn right and go into the Larkspur Neighborhood. Council Lady Ross -Hammond is comfortable in moving this project forward for City Council's consideration. October 8, 2013 -49 - CITY COUNCIL COMMENTS ITEM #63183 Councilman Uhrin advised the Virginia Gentleman held the JT's Walk this past weekend and raised $1.3 - MILLION. October 8, 2013 -50 - CITY COUNCIL COMMENTS ITEM #63184 Councilman DeSteph recently visited Old Dominion University's Virginia Beach Campus and was very impressed with the programs being offered. October 8, 2013 -51- CITY COUNCIL COMMENTS ITEM #63185 Councilman DeSteph requested City Manager Spore have Dr. Koch provide the State-of—the-Region Briefing to City Council in the near future. October 8, 2013 -52 - CITY COUNCIL COMMENTS ITEM #63186 Councilman Dyer expressed his appreciation to Deputy City Manager Hansen for the Staff's work on the Lynnhaven Eleven (11). This project will significantly improve public safety access and response time. October 8, 2013 -53 - AGENDA REVIEW SESSION 5:20P.M. ITEM #63187 BY CONSENSUS, the following shall compose the CONSENT AGENDA: A. ORDINANCES 1. Resolutions AUTHORIZING distribution of the Preliminary Statement and providing the Master Supplement re the 2013 issuance of $46,060,000 in Water and Sewer System Revenue Bonds 2. Ordinance to AUTHORIZE the City Manager to execute an AMENDMENT to the Agreement between the City and the Virginia Aquarium and Marine Science Center Foundation, Inc. re construction of an "Aerial Adventure Attraction" 3. Ordinance to ESTABLISH a Capital Project, "Thalia Station Revitalization and Conversion " for an EMS station and to TRANSFER and APPROPRIATE $735,000 from other projects DISTRICT 5 - LYNNHAVEN 4. Ordinance to APPROPRIATE donated funds of $600 for improvements to Fire Station No. 01 DISTRICT 5 - LYNNHAVEN 5. Ordinance to ACCEPT and APPROPRIATE Grant funds from Edward Byrne Justice Assistance: a. $15,120 to the Sheriff b. $32, 000 to the Police c. $62,117 to Parks and Recreation for Youth Opportunities October 8, 2013 -54 - AGENDA REVIEW SESSION ITEM # 63187(Continued) BY CONSENSUS, the following shall compose the PLANNING BY CONSENT AGENDA: J. PLANNING 1. Application of STEPHEN L. and LYNETTE M. ROHRING, for a Variance to the Subdivision Regulations, §4.1 (m)(1) of the City Zoning Ordinance (CZO) pertaining to right-of-way width for streets and a Special Exception, under the Form -Based Code, for a nonconforming structure at 423 20th Street DISTRICT 6 — BEACH 2. Application of BEACH MUNICIPAL FEDERAL CREDIT UNION/SISTERS II, LLC for a Conditional Change of Zoning from AG -2 Agricultural to B-2 Community Business, re construction of a full service Credit Union at 2440 Princess Anne Road DISTRICT 7 — PRINCESS ANNE 3. Application of COMMONWEALTH PROPERTIES/1B APT LAND, L.C. for a Conditional Change of Zoning from A-18 Apartment to Conditional A-36 Apartment re at 4585 Wicklow Place DISTRICT 3 — ROSE HALL 4. Applications of REED ENTERPRISES at Holland and Dam Neck Roads: DISTRICT 7 - PRINCESS ANNE a. Conditional Change of Zoning from AG -2 Agricultural to Conditional B-2 Business b. Conditional Use Permit: automobile repair and bulk storage 5. Application of SANDPIPER, LLC/JERRY J. COLLIER for a Conditional Change of Zoning from B-2 Community Business to Conditional H-1 Hotel at 4800 and 4802 Alicia Drive DISTRICT 4 — BAYSIDE COUNCILMAN MOSS WILL VOTE VERBAL NAY ON ITEM#1 re "hardship" October 8, 2013 -55- ITEM#63188 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 PUBLICLY -HELD PROPERTY: Discussion or consideration of the, acquisition of real property for public purpose; or of the disposition of publicly -held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3). Acquisition/Disposition of City Property: Centerville District October 8, 2013 I -56- ITEM#63188 (Continued) Upon motion by Councilman Dyer, seconded by Councilman Uhrin, City Council voted to proceed into CLOSED SESSION at 5:24 P.M. Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None (Closed Session 5: 24 P.M. 5:47 P.M.) October 8, 2013 -57 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL OCTOBER 8, 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, October 8, 2013, at 6:00 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, James L. Wood and Rosemary Wilson Council Members Absent: None INVOCATION: Reverend James Parke, Jr. Retired 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 natter 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. October 8, 2013 III -58- 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 she is a Real Estate Agent affiliated with Prudential Towne Realty ("Prudential"). 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 August 13, 2013, is hereby made a part of the record. October 8, 2013 Item -VI-E CERTIFICATION -59- ITEM #63189 Upon motion by Councilman Dyer, 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: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 111 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 #63188 Page 56, 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. R Hodges Fraser, MC ity Clerk October 8, 2013 Item -VI -F.1 MINUTES -60- ITEM #63190 Upon motion by Councilman Dyer, seconded by Councilman Uhrin, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of September 24, 2013. Voting. 11-0 Council Members Voting Aye: William R. "Bill" DeSteph, Glenn R. Davis, 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -61 - ADOPT AGENDA FOR FORMAL SESSION ITEM #63191 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION October 8, 2013 -62 - Item -VI-H.1 MAYOR'S PRESENTATION ITEM #63192 NATIONAL COMMUNITY PLANNING MONTH Mayor Sessoms introduced Jack Whitney, Director — Planning, and presented him the Proclamation declaring October 2013 "COMMUNITY PLANNING MONTH". Mayor Sessoms expressed his appreciation to the Planning Department for contributing their time and expertise to the improvement of the City. October 8, 2013 I -63- Item -VI-H.2 MAYOR'S PRESENTATION ITEM #63193 OCEANS 12 Ray Toll presented a Certificate of Appreciation from Marine Technology Society to Mayor Sessoms and expressed his appreciation to Sally Noona, Lynn Clements and Jim Ricketts for their assistance in planning such a successful conference. The Conference was host to over 2,000 individuals, representing over 35 Countries. The Marine Technology Society recently voted, unanimously, to bring the conference back to the City. October 8, 2013 -64 - Item -VI-I.1 PUBLIC HEARING ITEM #63194 Mayor Sessoms DECLARED A PUBLIC HEARING: BYRNE MEMORIAL JUSTICE GRANT ALLOCATION There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. October 8, 2013 -65 - Item -VI-I.2 PUBLIC HEARING ITEM #63195 Mayor Sessoms DECLARED A PUBLIC HEARING: COMMUNITY LEGISLATIVE AGENDA Thom Prevette, 1804 Churchside Lane, Phone: 496-0893, spoke in SUPPORT of the Community Legislative Agenda's expansion of Medicaid Act. Mr. Prevette advised this is not just about expansion. Medicaid needs to be reformed. This expansion will allow health care providers a better alternative to implement health care for low income and disadvantage persons. The more this very complex issue is addressed, the better the Country will be and ultimately the health care costs will stabilize and, hopefully, reduce. There being no other speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. October 8, 2013 -66 - Item —VI -J ORDINANCES/RESOLUTIONS ITEM #63196 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED, IN ONE MOTION, BY CONSENT 1, 2, 3, 4 AND 5a/b/c of the CONSENT AGENDA, composed of Ordinances, Resolutions and the Planning Applications. Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -67- Item-VI-J.1 ORDINANCES/RESOLUTIONS ITEM #63197 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Resolutions AUTHORIZING distribution of the Preliminary Statement and providing the Master Supplement re the 2013, issuance of $46,060,000 in Water and Sewer System Revenue Bonds Voting: 11-0 Council Members Voting Aye: William R. "Bill" DeSteph, Glenn R. Davis, Robert M. Dyer, Barbara M. Henley, John D. Moss, Vice Mayor Louis R. Jones, , Amelia N. Ross - Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 I RESOLUTION AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE BY THE CITY OF VIRGINIA BEACH, VIRGINIA, OF ITS WATER AND SEWER SYSTEM REVENUE BONDS, SERIES OF 2013 WHEREAS, the City of Virginia Beach, Virginia (the "City"), proposes to issue its Water and Sewer System Revenue Bonds, Series of 2013, in an amount not to exceed $46,060,000 (the "Bonds"), pursuant to the Tenth Supplemental Resolution amending the City's Master Water and Sewer Bond Resolution, originally adopted February 11, 1992, as amended from time to time thereafter (the "Tenth Supplemental Resolution"); WHEREAS, in connection with the adoption by the Council of the City (the "City Council") of the Tenth Supplemental Resolution, there have been presented to or otherwise made available to this meeting drafts of the following documents: (a) Notice of Sale, to be dated on or about October 18, 2013 (the "Notice of Sale"), of the City relating to the advertisement of the public offering of the Bonds; (b) Preliminary Official Statement, to be dated on or about October 18, 2013, of the City relating to the public offering of the Bonds, including, as an Appendix, the Financial Feasibility Study prepared by Red Oak Consulting, a division of ARCADIS U.S., Inc., to be dated on or about October 18, 2013 (collectively, the "Preliminary Official Statement"); and (c) Continuing Disclosure Agreement, to be dated on or about October 29, 2013, pursuant to which the City will agree to undertake continuing disclosure obligations pursuant to Rule 15c2-12, as amended (the "Rule"), promulgated by the Securities and Exchange Commission (the "SEC"), for the benefit of the holders of the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA, AS FOLLOWS: 1. The City Manager, in collaboration with Public Resources Advisory Group, the City's financial advisor (the "Financial Advisor"), is authorized and directed to take all proper steps to advertise the Bonds for sale substantially in accordance with the form of Notice of Sale attached hereto, which is approved, provided that the City Manager, in collaboration with the Financial Advisor, may make such changes in the Notice of Sale not inconsistent with this Resolution as he may consider to be in the best interest of the City. 2. The City authorizes the distribution of the Preliminary Official Statement in form deemed "near final" as of its date, within the meaning of the Rule of the SEC, to prospective purchasers of the Bonds, with such completions, omissions, insertions and changes as may be approved by the City Manager. Such distribution shall constitute conclusive evidence of the approval of the City Manager as to any such completions, omissions, insertions and changes and that the City has deemed the Preliminary Official Statement to be near final as of its date. 3. The City Manager, in collaboration with the Financial Advisor, is hereby authorized and directed to approve such completions, omissions, insertions and other changes to the Preliminary Official Statement necessary to reflect the terms of the sale of the Bonds and the details thereof appropriate to complete it as an official statement in final form (the "Official Statement") and to execute and deliver the Official Statement to the purchasers of the Bonds. Execution of the Official Statement by the City Manager shall constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes and that the Official Statement has been deemed final by the City as of its date within the meaning of the Rule. 4. The Mayor, the City Manager and such officer or officers of the City as either may designate, any of whom may act, are hereby authorized and directed to execute the Continuing Disclosure Agreement, the form of which is approved, with such completions, omissions, insertions and changes that are not inconsistent with this Resolution. 5. The officers of the City are hereby authorized and directed to execute, deliver and file all certificates and documents and to take all such further action as they may consider necessary or desirable in connection with the issuance and sale of the Bonds, including without limitation (a) execution and delivery of a certificate setting forth the expected use and investment of the proceeds of the Bonds to show that such expected use and investment will not violate the provisions of Section 148 of Code, and regulations thereunder, applicable to "arbitrage bonds," (b) making any elections that such officers deem desirable regarding any provision requiring rebate to the United States of "arbitrage profits" earned on investment of proceeds of the Bonds, and (c) filing Internal Revenue Service Form 8038-G. The foregoing shall be subject to the advice, approval and direction of bond counsel. 6. To ensure compliance with federal tax law after the Series 2013 Bonds are issued, the City Manager, Director of Finance and other officers of the City are authorized and directed to apply the Post -Issuance Compliance Policies and Procedures adopted by Council on March 13, 2012 to monitor the use of the proceeds of the Bonds, including the use of the projects financed with such proceeds, and to monitor compliance with arbitrage yield restriction and rebate requirements. 7. The Director of Finance is authorized to direct the City Treasurer to utilize the State Non -Arbitrage Program of the Commonwealth of Virginia ("SNAP") in connection with the investment of the proceeds of the Bonds, if the City Manager and the Director of Finance determine that the utilization of SNAP is in the best interest of the City. The City Council acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the City in connection with SNAP, except as otherwise provided in the SNAP Contract. 8. Any authorization herein to execute a document shall include authorization to deliver it to the other parties thereto. 9. All other acts of the officers of the City that are in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bonds are hereby approved and ratified. 10. This Resolution shall take effect immediately. Adopted by the Council of the City of Virginia Beach, Virginia, on the 8 `° day of October, 2013. APPROVED AS TO CONTENT: Finance Depai liiient 12630868v4 APPROVED AS TO LEGAL SUFFICIENCY: City Att • Lice fll CITY OF VIRGINIA BEACH, VIRGINIA TENTH SUPPLEMENTAL RESOLUTION SUPPLEMENTING AND AMENDING RESOLUTION ADOPTED FEBRUARY 11, 1992, ENTITLED "MASTER WATER AND SEWER REVENUE BOND RESOLUTION PROVIDING FOR THE ISSUANCE FROM TIME TO TIME OF ONE OR MORE SERIES OF WATER AND SEWER SYSTEM REVENUE BONDS OF THE CITY OF VIRGINIA BEACH," AS PREVIOUSLY SUPPLEMENTED AND AMENDED, TO PROVIDE FOR THE ISSUANCE AND SALE OF UP TO $46,060,000 OF WATER AND SEWER SYSTEM REVENUE BONDS, SERIES OF 2013, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND THE FINANCING OF THE COST OF IMPROVEMENTS TO THE CITY'S WATER AND SANITARY SEWER FACILITIES ADOPTED ON OCTOBER 8 , 2013 1 TABLE OF CONTENTS Page ARTICLE I TENTH SUPPLEMENTAL RESOLUTION 1 Section 10.101 Tenth Supplemental Resolution. 1 Section 10.102 Meaning of Terms; Definitions 1 Section 10.103 Reference to Articles and Sections 2 ARTICLE II 2013 PROJECT 2 Section 10.201 Authorization of 2013 Project 2 ARTICLE III ISSUANCE AND SALE OF SERIES 2013 BONDS 3 Section 10.301 Issuance and Sale of Series 2013 Bonds 3 Section 10.302 Details of Series 2013 Bonds 3 Section 10.303 Book Entry System. 3 Section 10.304 Registrar. 4 Section 10.305 Form of Series 2013 Bonds 5 Section 10.306 Security for Series 2013 Bonds 5 Section 10.307 Application of Proceeds. 5 ARTICLE IV REDEMPTION OF SERIES 2013 BONDS 5 Section 10.401 Optional Redemption Provisions. 5 Section 10.402 Mandatory Redemption. 5 Section 10.403 Selection of Series 2013 Bonds for Redemption. 6 Section 10.404 Notice of Redemption. 6 ARTICLE V FEDERAL TAX PROVISIONS 7 Section 10.501 Limitation of Use of Proceeds. 7 Section 10.502 Rebate Requirement 7 Section 10.503 Calculation and Payment of Rebate Amount. 8 ARTICLE VI MISCELLANEOUS 8 Section 10.601 Limitation of Rights. 8 Section 10.602 SNAP Investment 9 Section 10.603 Severability. 9 Section 10.604 Effective Date. 9 Appendix A - Description of the 2013 Project A-1 Appendix B - Form of the Series 2013 Bonds B-1 (i) TENTH SUPPLEMENTAL RESOLUTION SUPPLEMENTING AND AMENDING RESOLUTION ADOPTED FEBRUARY 11, 1992, ENTITLED "MASTER WATER AND SEWER REVENUE BOND RESOLUTION PROVIDING FOR THE ISSUANCE FROM TIME TO TIME OF ONE OR MORE SERIES OF WATER AND SEWER SYSTEM REVENUE BONDS OF THE CITY OF VIRGINIA BEACH," AS PREVIOUSLY SUPPLEMENTED AND AMENDED, TO PROVIDE FOR THE ISSUANCE AND SALE OF UP TO $46,060,000 OF WATER AND SEWER SYSTEM REVENUE BONDS, SERIES OF 2013, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND THE FINANCING OF THE COST OF IMPROVEMENTS TO THE CITY'S WATER AND SANITARY SEWER FACILITIES WHEREAS, the Council (the "Council") of the City of Virginia Beach, Virginia (the "City"), adopted a resolution on February 11, 1992 (the "Master Resolution"), providing for the issuance from time to time of water and sewer revenue bonds to finance the cost of improvements and extensions to its water and sanitary sewer system; and WHEREAS, the Council desires to issue pursuant to the Master Resolution up to $16,087,666 of the $17,000,000 water and sewer system revenue bonds authorized by an ordinance adopted by the Council on May 12, 2009, up to $27,000,000 of the $27,000,000 water and sewer system revenue bonds authorized by an ordinance adopted by the Council on May 10, 2011, and up to $2,972,334 of the $27,000,000 water and sewer system revenue bonds authorized upon an ordinance adopted by the Council on May 8, 2012, and to sell such bonds in one or more issues in a collective amount equal to $46,060,000; and WHEREAS, the City is not in default under the Master Resolution or in payment of the principal of or interest on the Outstanding Bonds (as defined in the Master Resolution); BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: ARTICLE I TENTH SUPPLEMENTAL RESOLUTION Section 10.101 Tenth Supplemental Resolution. This Tenth Supplemental Resolution is adopted pursuant to and in accordance with Section 1101(g) of the Master Resolution. All covenants, conditions and agreements of the Master Resolution shall apply with equal force and effect to the Series 2013 Bonds (as hereinafter defined) and to the holders thereof, except as otherwise provided herein. Section 10.102 Meaning of Terms; Definitions. All capitalized terms used herein and not defined either in this Section or elsewhere in this Tenth Supplemental Resolution (including the recitals hereto), shall have the meanings ascribed to such terms in the Master Resolution. The following terms shall have the following meanings in this Tenth Supplemental Resolution. "2013 Project" shall mean the acquisitions, improvements, extensions, additions and replacements to the System as described in Article II. "DTC" shall mean The Depository Trust Company, New York, New York, a securities depository, as holder of the Series 2013 Bonds, or its successors or assigns in such capacity. "Rebate Amount" shall mean the excess of (a) the future value of all nonpurpose receipts with respect to the Series 2013 Bonds over (b) the future value of all nonpurpose payments with respect to the Series 2013 Bonds, in each case calculated under Section 9.503 pursuant to the requirements of Section 148 of the Code, or such other amount of arbitrage required to be rebated to the United States of America under Section 148 of the Code. "Rebate Amount Certificate" shall have the meaning set forth in Section 9.503. "Registrar" shall mean The Bank of New York Mellon Trust Company, N.A., as paying agent and bond registrar for the Series 2013 Bonds. "Series 2013 Bonds" shall mean the Water and Sewer System Revenue Bonds, Series of 2013, in the amount to be issued in accordance with the provisions of Article III. "Series 2013 Debt Service Reserve Requirement" shall mean an amount equal to the debt service reserve securing the Series 2013 Bonds established in accordance with the Master Resolution. "Tenth Supplemental Resolution" shall mean this Tenth Supplemental Resolution, which supplements the Master Resolution. Section 10.103 Reference to Articles and Sections Unless otherwise indicated, all references herein to particular articles or sections are references to articles or sections of this Tenth Supplemental Resolution. ARTICLE II 2013 PROJECT Section 10.201 Authorization of 2013 Project. The Council has authorized the acquisitions, improvements, extensions, additions and replacements to the System described on Appendix A, which are part of the approved capital improvement program of the City. 2 111 ARTICLE III ISSUANCE AND SALE OF SERIES 2013 BONDS Section 10.301 Issuance and Sale of Series 2013 Bonds. The City hereby provides for the issuance of water and sewer system revenue bonds in a principal amount up to $46,060,000, consisting of up to $16,087,666 of the $17,000,000 water and sewer system revenue bonds authorized by an ordinance adopted by the Council on May 12, 2009, up to $27,000,000 of the $27,000,000 water and sewer system revenue bonds authorized by an ordinance adopted by the Council on May 10, 2011, and up to $2,972,334 of the $27,000,000 water and sewer system revenue bonds authorized by an ordinance adopted by the Council on May 8, 2012, which such bonds shall be issued and sold pursuant hereto. The proceeds thereof shall be used to pay the Cost of the 2013 Project. All such bonds shall constitute Bonds, as defined in the Master Resolution. Section 10.302 Details of Series 2013 Bonds. (a) Subject to the provisions of paragraph (d) below, the Series 2013 Bonds shall be designated "Water and Sewer System Revenue Bonds, Series of 2013," shall be numbered R-1 upward, shall be dated, shall be in an aggregate principal amount not to exceed $46,060,000, shall bear interest at rates, payable semiannually on such dates and shall mature in installments on such dates and in years and amounts, all as determined by the City Manager to be in the best interest of the City. (b) Principal of the Series 2013 Bonds and the premium, if any, thereon shall be payable to the holders upon the surrender of such Bonds at the principal corporate trust office of the Registrar. Interest on the Series 2013 Bonds shall be payable by check or draft mailed to the holders as of the 15th day of the month prior to each interest payment date, at their addresses as they appear on the registration books kept by the Registrar. (c) Except as otherwise provided herein, the Series 2013 Bonds shall be payable, executed, authenticated, registrable, exchangeable and secured, all as set forth in the Master Resolution. (d) The Series 2013 Bonds shall be sold by competitive bid, and the City Manager shall receive bids for the Series 2013 Bonds and award the Series 2013 Bonds to the bidder providing the lowest "true" or "Canadian" interest cost, subject to the following limitations. The Series 2013 Bonds shall (a) have a "true" or "Canadian" interest cost not to exceed 5.25% (taking into account any original issue discount or premium on the Series 2013 Bonds, (b) be sold to the purchaser at a price not less than 100% of the principal amount thereof and (c) mature no later than the year 2038. Section 10.303 Book Entry System. Initially, one Series 2013 Bond certificate for each maturity will be issued to DTC, which is designated as the securities depository for the Series 2013 Bonds, or its nominee, and immobilized in its custody. Beneficial owners of the Series 2013 Bonds will not receive physical 3 delivery of the Series 2013 Bonds. So long as DTC is acting as securities depository for the Series 2013 Bonds, a book entry system shall be employed, evidencing ownership of the Series 2013 Bonds in principal amounts of $5,000 or multiples thereof, with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. Interest on the Series 2013 Bonds shall be payable in clearinghouse funds to DTC or its nominee as registered owner of the Series 2013 Bonds. Principal, premium, if any, and interest shall be payable in lawful money of the United States of America by the Registrar. Transfer of principal and interest payments to participants of DTC shall be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The City and the Registrar shall not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that (a) DTC determines not to continue to act as securities depository for the Series 2013 Bonds by giving notice to the City and the Registrar discharging its responsibilities hereunder, (b) the Registrar or the City determines that DTC is incapable of discharging its duties or that continuation with DTC as securities depository is not in the best interest of the City, or (c) the Registrar or the City determines that continuation of the book entry system of evidencing ownership and transfer of ownership of the Series of 2013 Bonds is not in the best interest of the City or the beneficial owners of the Series 2013 Bonds, the Registrar and the City shall discontinue the book entry system with DTC. If the Registrar or the City fails to identify another qualified securities depository to replace DTC, the Registrar shall authenticate and deliver replacement bonds in the form of fully registered certificates to the beneficial owners or to the DTC participants on behalf of beneficial owners, substantially in the form as set forth in Appendix B, with such variations, omissions or insertions as are necessary or desirable in the delivery of replacement certificates in printed form. The Series 2013 Bonds would then be registrable and exchangeable as set forth in Section 204 of the Master Resolution. So long as DTC is the securities depository for the Series 2013 Bonds (a) it shall be the registered owner of the Series 2013 Bonds, (b) transfers of ownership and exchanges shall be effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants, and (c) references in this Tenth Supplemental Resolution to holders of the Series 2013 Bonds shall mean DTC or its nominee and shall not mean the beneficial owners of the Series 2013 Bonds. Section 10.304 Registrar. The selection of The Bank of New York Mellon Trust Company, N.A. as paying agent and bond registrar for the Series 2013 Bonds is approved. 4 Section 10.305 Form of Series 2013 Bonds. The Series 2013 Bonds shall be in substantially the form set forth in Appendix B with such variations, omissions and insertions as may be necessary to set forth the details thereof pursuant to Article II of the Master Resolution and Article III hereof. Section 10.306 Security for Series 2013 Bonds. The Series 2013 Bonds shall be issued pursuant to the Master Resolution and this Tenth Supplemental Resolution and shall be equally and ratably secured under and to the extent provided in the Master Resolution with the Prior Parity Bonds, any Bonds that may be issued under the Master Resolution, any Parity Double Barrel Bonds that may be issued and any Parity Debt Service Components that may be incurred, without preference, priority or distinction of any obligations over any other obligations; provided, however, the Debt Service Reserve Fund will secure only the Bonds. Section 10.307 Application of Proceeds. The proceeds of the Series 2013 Bonds shall be applied as follows: (a) If other City funds are not utilized for such purpose, the amount of Series 2013 Bond proceeds necessary, together with amounts on deposit in the Debt Service Reserve Fund, to equal the total Debt Service Reserve Requirement for all Series of Bonds having a Series Debt Service Reserve Requirement, including the Series 2013 Debt Service Reserve Requirement, shall be paid to the Fiscal Agent and deposited into the Debt Service Reserve Fund. (b) The balance of the proceeds shall be retained by the City and deposited in a General Account in the Construction Fund to be used to pay the Cost of the 2013 Project and to pay expenses incident to issuing the Series 2013 Bonds. ARTICLE IV REDEMPTION OF SERIES 2013 BONDS Section 10.401 Optional Redemption Provisions. The Series 2013 Bonds may be subject to redemption prior to maturity at the option of the City on or after dates, if any, determined by the City Manager, in whole or in part at any time at redemption prices equal to no greater than 100% of the principal amount of the Series 2013 Bonds, together with any accrued interest to the redemption date. Section 10.402 Mandatory Redemption. The Series 2013 Bonds may be subject to mandatory sinking fund redemption prior to maturity in years and amounts, upon payment of 100% of the principal amount thereof to be redeemed plus interest accrued to the redemption date, as may be determined by the City Manager. 5 Section 10.403 Selection of Series 2013 Bonds for Redemption. If less than all of the Series 2013 Bonds are called for redemption, the Series 2013 Bonds to be redeemed shall be selected in such manner as the City Manager or the chief financial officer of the City may determine to be in the best interest of the City. If less than all of the Series 2013 Bonds of a particular maturity are called for redemption, the Series 2013 Bonds to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar at its discretion may determine. The portion of any Series 2013 Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof. In selecting Series 2013 Bonds for redemption, each Series 2013 Bond shall be considered as representing that number of Series 2013 Bonds which is obtained by dividing the principal amount of such Series 2013 Bond by $5,000. If a portion of a Series 2013 Bond shall be called for redemption, a new Series 2013 Bond in principal amount equal to the unredeemed portion thereof shall be issued to the registered owner upon the surrender thereof. Section 10.404 Notice of Redemption. (a) The Registrar shall send notice of the call for redemption identifying the Series 2013 Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, (1) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to the holder of each Series 2013 Bond to be redeemed at his address as it appears on the registration books kept by the Registrar, (2) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to all organizations registered with the Securities and Exchange Commission as securities depositories, and (3) to the Electronic Municipal Market Access (EMMA) system (established by the Municipal Securities Rulemaking Board) or any other nationally recognized municipal securities information repository designated as such by the Securities and Exchange Commission. (b) In the case of an optional redemption, the notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, with an escrow agent no later than the redemption date or (2) the City retains the right to rescind such notice on or prior to the scheduled redemption date (in either case, a "Conditional Redemption"), and such notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded as described herein. Any Conditional Redemption may be rescinded at any time prior to the redemption date, and the Registrar shall give prompt notice of such rescission to the affected Series 2013 Bondholders. Any Series 2013 Bonds subject to Conditional Redemption where redemption has been rescinded shall remain Outstanding, and the rescission shall not constitute an Event of Default. Further, in the case of a Conditional Redemption, the failure of the City to make funds available on or before the redemption date shall not constitute an Event of Default, and the Registrar shall give immediate notice to all organizations registered with the Securities and Exchange Commission as securities 6 Ili depositories or the affected Series 2013 Bondholders that the redemption did not occur and that the Series 2013 Bonds called for redemption and not so paid remain outstanding. ARTICLE V FEDERAL TAX PROVISIONS Section 10.501 Limitation of Use of Proceeds. The City covenants with the holders of the Series 2013 Bonds as follows: (a) The City shall not take or omit to take any action or make any investment or use of the proceeds of any Series 2013 Bonds (including failure to spend the same with due diligence) the taking or omission of which would cause the Series 2013 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, including without limitation participating in any issue of obligations that would cause the Series 2013 Bonds to be part of an "issue" of obligations that are arbitrage bonds, within the meaning of Treasury Regulations Section 1.148- 10 or successor regulation, or otherwise cause interest on the Series 2013 Bonds to be includable in the gross income of the registered owners under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the United States of America any part of the earnings derived from the investment of gross proceeds of the Series 2013 Bonds. (b) The City shall not permit the proceeds of the Series 2013 Bonds or the facilities to be financed with such proceeds to be used in any manner that would result in either (1) 5% or more of such proceeds or the facilities being financed with such proceeds being considered as having been used in any trade or business carried on by any person other than a governmental unit as provided in Section 141(b) of the Code, (2) 5% or more of such proceeds or the facilities being financed with such proceeds being used with respect to any "output facility" (other than a facility for the furnishing of water) within the meaning of Section 141(b)(4) of the Code, or (3) 5% or more of such proceeds being considered as having been used directly or indirectly to make or finance loans to any person other than a governmental unit, as provided in Section 141(c) of the Code. (c) The City shall not take any other action that would adversely affect, and shall take all action within its power necessary to maintain, the exclusion of interest on all Series 2013 Bonds from gross income for federal income taxation purposes; provided, however, that if the City receives an opinion of Bond Counsel that compliance with any such covenant is not required to prevent the interest on the Series 2013 Bonds from being includable in the gross income of the registered owners thereof under existing law, the City need not comply with such restriction. Section 10.502 Rebate Requirement. The City shall determine and pay, from any legally available source, the Rebate Amount, if any, to the United States of America, as and when due, in accordance with the "rebate requirement" described in Section 148(f) of the Code and retain records of all such determinations until six years after payment in full of the Series 2013 Bonds. 7 Section 10.503 Calculation and Payment of Rebate Amount. (a) The City selects October 1 as the end of the bond year with respect to the Series 2013 Bonds pursuant to Treasury Regulation Section 1.148-1. (b) Within 30 days after the initial installment computation date, the last day of the fifth bond year (October 1, 2018), unless such date is changed by the City prior to the date that any amount with respect to the Series 2013 Bonds is paid or required to be paid to the United States of America as required by Section 148 of the Code, and at least once every five years thereafter, the City shall cause the Rebate Amount to be computed. Prior to any payment of the Rebate Amount to the United States of America as required by Section 148 of the Code, such computation (the "Rebate Amount Certificate") setting forth such Rebate Amount shall be prepared or approved by (1) a person with experience in matters of governmental accounting for Federal income tax purposes or (2) a bona fide arbitrage rebate calculation reporting service. (c) Not later than 60 days after the initial installment computation date, the City shall pay to the United States of America at least 90% of the Rebate Amount as set forth in the Rebate Amount Certificate prepared with respect to such installment computation date. At least once on or before 60 days after the installment computation date that is the fifth anniversary of the initial installment computation date and on or before 60 days every fifth anniversary date thereafter until final payment in full of the Series 2013 Bonds, the City shall pay to the United States of America not less than the amount, if any, by which 90% of the Rebate Amount set forth in the most recent Rebate Amount Certificate exceeds the aggregate of all such payments theretofore made to the United States of America pursuant to this Section. On or before 60 days after final payment in full of the Series 2013 Bonds, the City shall pay to the United States of America the amount, if any, by which 100% of the Rebate Amount set forth in the Rebate Amount Certificate with respect to the date of final payment in full of the Series 2013 Bonds exceeds the aggregate of all payments theretofore made pursuant to this Section. All such payments shall be made by the City from any legally available source. (d) Notwithstanding any provision of this Article to the contrary, no such calculation or payment shall be made if the City receives an opinion of Bond Counsel to the effect that (1) such payment is not required under the Code in order to prevent the Series 2013 Bonds from becoming "arbitrage bonds" within the meaning of Section 148 of the Code or (2) such payment should be calculated and paid on some alternative basis under the Code, and the City complies with such alternative basis. ARTICLE VI MISCELLANEOUS Section 10.601 Limitation of Rights. With the exception of the rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Tenth Supplemental Resolution is intended or shall be construed to give any person other than the parties hereto and the holders of the Series 2013 Bonds any legal or equitable right, remedy or claim under or in respect to this Tenth 8 Supplemental Resolution or any covenant, condition or agreement herein contained, this Tenth Supplemental Resolution and all of the covenants, conditions and agreements hereof being intended to be and being for the sole and exclusive benefit of the holders of the Series 2013 Bonds as herein provided. Section 10.602 SNAP Investment. The Council has received and reviewed the Information Statement (the "Information Statement") describing the State Non -Arbitrage Program of the Commonwealth of Virginia ("SNAP") and the Contract Creating the State Non -Arbitrage Program Pool I (the "Contract"). The Council acknowledges the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the City in connection with SNAP, except as otherwise provided in the Contract. Section 10.603 Severability. If any provision of this Tenth Supplemental Resolution shall be held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof. Section 10.604 Effective Date. This Tenth Supplemental Resolution shall take effect immediately. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: Pa t,,, ,„ a Finance Depal linent 9 APPROVED AS TO LEGAL SUFFICIENCY: APPENDIX A DESCRIPTION OF THE 2013 PROJECT CITY OF VIRGINIA BEACH, VIRGINIA WATER AND SEWER SYSTEM REVENUE BONDS SERIES OF 2013 The 2013 Project consists of extensions, improvements, enlargements, additions and replacements to the plants, systems, facilities, equipment or property owned, in whole or in part, acquired, operated or maintained by or on behalf of the City of Virginia Beach, Virginia, in connection with the collection, treatment or disposal of sanitary sewer and the supply, treatment, storage or distribution of water. The water system improvements include but are not limited to replacement of existing water mains, construction of new water mains, modification of existing pump stations and small line improvements. The sanitary sewer system improvements include but are not limited to construction of new gravity sanitary sewers, construction of new force mains, modification of existing pumping stations and construction of new pumping stations. A-1 APPENDIX B FORM OF SERIES 2013 BONDS Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. REGISTERED REGISTERED R- $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH Water and Sewer System Revenue Bond, Series of 2013 INTEREST RATE MATURITY DATE DATED DATE CUSIP cyo October 1, , 2013 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach, Virginia (the "City"), for value received, hereby promises to pay upon surrender hereof at the designated corporate trust office of The Bank of New York Mellon Trust Company, N.A. (the "Registrar"), or its successor, solely from the source and as hereinafter provided, to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely from such source, interest hereon semiannually on each April 1 and October 1, beginning April 1, 2014, at the annual rate stated above, calculated on the basis of a 360 -day year of twelve 30 -day months. Interest is payable (a) from the Dated Date, if this Bond is authenticated prior to April 1, 2014, or (b) otherwise from the April 1 or October 1 that is, or immediately precedes, the date on which this Bond is authenticated (unless payment of interest hereon is in default, in which case this Bond shall bear interest from the date to which interest has been paid). Interest is payable by check or draft mailed to the registered owner hereof at his address as it appears on the 15th day of the month preceding each interest payment B-1 date on registration books kept by the Registrar. Principal, premium, if any, and interest are payable in lawful money of the United States of America. Notwithstanding any other provision hereof, this Bond is subject to a book entry system maintained by The Depository Trust Company ("DTC") and the payment of principal and interest, the providing of notices and other matters will be made as described in the City's Blanket Letter of Representations to DTC. This Bond is one of an issue of $46,060,000 Water and Sewer System Revenue Bonds, Series of 2013 (the "Bonds"), of like date and tenor, except as to number, denomination, rate of interest, privilege of redemption and maturity, authorized and issued pursuant to ordinances and resolutions adopted by the City Council including a resolution adopted on February 11, 1992, as previously supplemented and as supplemented and amended by a resolution adopted on October 8, 2013 (collectively, the "Resolution"), and the Constitution and statutes of the Commonwealth of Virginia, including the City Charter and the Public Finance Act of 1991, to provide funds, together with other available funds, to pay the cost of the acquisition and construction of improvements and extensions to the City's water and sanitary sewer system (the "System"), as more fully described in the Resolution. The Bonds and the premium, if any, and the interest thereon are limited obligations of the City and are payable solely from the revenues to be derived from the ownership or operation of the System, as the same may from time to time exist, except to the extent payable from the proceeds of the Bonds, the income, if any, derived from the investment thereof, certain reserves, income from investments pursuant to the Resolution or proceeds of insurance, which revenues and other moneys have been pledged as described in the Resolution to secure payment thereof. The Bonds, the premium, if any, and the interest thereon are payable solely from the revenues pledged thereto in the Resolution, and nothing herein or in the Resolution shall be deemed to create or constitute an indebtedness of or a pledge of the faith and credit of the Commonwealth of Virginia or of any county, city, town or other political subdivision of the Commonwealth, including the City. The Bonds are issued under and are equally and ratably secured on a parity with the unpaid balance of the City's $1,405,031.36 Taxable Water and Sewer System Revenue Bond, Series of 1994, $7,500,000 Taxable Water and Sewer System Revenue Bond, Series of 1997, $6,200,000 Taxable Water and Sewer System Revenue Bond, Series of 1998, $28,000,000 Water and Sewer System Revenue Bonds, Series of 2002, $92,700,000 Water and Sewer System Revenue and Refunding Bonds, Series of 2005, $9,720,000 Water and Sewer System Revenue Bonds, Series 2010A-1, $55,280,000 Water and Sewer System Revenue Bonds, Series 2010A-2, $8,410,000 Water and Sewer System Refunding Revenue Bonds, Series 2010B (Tax -Exempt), and $24,950,000 Water and Sewer System Refunding Revenue Bonds, Series 2010C (Tax - Exempt) (collectively, the "Parity Bonds"), to the extent set forth in the Resolution. Reference is hereby made to the Resolution and all amendments and supplements thereto for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the City, the rights of the holders of the Bonds and the terms upon which the Bonds are issued and secured. Additional bonds ranking equally with the Bonds and the Parity Bonds may be issued on the terms provided in the Resolution. B-2 111 The Bonds maturing on and after October 1, 2024, are subject to redemption beginning October 1, 2023, in whole or in part at any time, at the option of the City, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed plus interest accrued and unpaid to the redemption date. Bonds maturing on October 1, , are required to be redeemed prior to maturity, in part, in accordance with the sinking fund requirements of Section 9.402 of the resolution adopted on October 8, 2013, on October 1 in years and amounts upon payment of 100% of the principal amount thereof plus interest accrued to the redemption date, as follows: Year Amount Year Amount The amount of the Bonds required to be redeemed pursuant to the preceding paragraph may be reduced in accordance with provisions of the Resolution. If less than all the Bonds are called for redemption, the maturities of the Bonds to be redeemed shall be selected in such manner as the City Manager or the chief financial officer of the City may determine to be in the best interest of the City. If less than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Bonds for redemption, each portion of $5,000 principal amount shall be counted as one bond for this purpose. If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed portion thereof will be issued to the registered owner upon the surrender hereof. The Registrar will cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, (1) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to the holder of each Bond to be redeemed at his address as it appears on the registration books kept by the Registrar, (2) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to all organizations registered with the Securities and Exchange Commission as securities depositories, and (3) to the Electronic Municipal Market Access (EMMA) system (established by the Municipal Securities Rulemaking Board) or any other nationally recognized municipal securities information repository designated as such by the Securities and Exchange Commission. Provided funds for their redemption are on deposit at the place of payment on the redemption date, all Bonds or portions thereof so called for redemption shall cease to bear interest on such date, shall no longer be secured as set forth in the Resolution and shall not be deemed to be outstanding under the provisions of the Resolution. B-3 The registered owner of this Bond shall have no right to enforce the provisions of the Resolution or to institute action to enforce the covenants therein or to take any action with respect to any Event of Default under the Resolution or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Resolution. Modifications or alterations of the Resolution, or of any supplement thereto, may be made only to the extent and in the circumstances permitted by the Resolution. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the 15th day of the month preceding each interest payment date. All acts, conditions and things required to happen, exist or be performed precedent to and in the issuance of this Bond have happened, exist and have been performed. This Bond shall not be valid or be entitled to any security or benefit under the Resolution until the Registrar shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. B-4 IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this Bond to be signed by the manual signature of its Mayor, to be countersigned by the manual signature of its Clerk, its seal to be impressed hereon, and this Bond to be dated the Dated Date. COUNTERSIGNED: (SEAL) Clerk, City of Virginia Beach, Virginia Mayor, City of Virginia Beach, Virginia Date Authenticated: B-5 CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within -mentioned Resolution. Registrar By Authorized Signature B-6 I ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto (please print or typewrite name and address including zip code of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within -mentioned Bond and all rights thereunder, hereby irrevocably constituting and appointing Attorney, to transfer said Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed NOTICE: Signature(s) must be guaranteed by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, Securities Broker/Dealer, Credit Union or Savings Association who is a member of a medallion program approved by The Securities Transfer Association, Inc. 12630866v4 B-7 (Signature of Registered Owner) NOTICE: The signature above must correspond with the name of the registered owner as it appears on the front of this bond in every particular, without alteration or enlargement or any change whatsoever. CONTINUING DISCLOSURE AGREEMENT This CONTINUING DISCLOSURE AGREEMENT dated October , 2013 (the "Disclosure Agreement"), is executed and delivered by the City of Virginia Beach, Virginia (the "City"), in connection with the issuance by the City of its $45,000,000 Water and Sewer System Revenue Bonds, Series of 2013 (the "Bonds"). The City hereby covenants and agrees as follows: Section 1. Purpose. This Disclosure Agreement is being executed and delivered by the City for the benefit of the holders of the Bonds and in order to assist the original purchasers of the Bonds in complying with the provisions of Section (b)(5)(i) of Rule 15c2-12, as amended (the "Rule"), promulgated by the Securities and Exchange Commission (the "SEC") by providing certain annual financial information and event notices required by the Rule (collectively, "Continuing Disclosure"). Section 2. Annual Disclosure. (a) The City shall provide annually certain financial information and operating data in accordance with the provisions of Section (b)(5)(i) of the Rule as follows: (i) audited financial statements of the City's water and sewer enterprise fund, prepared in accordance with generally accepted accounting principles; and (ii) the operating data with respect to the water and sewer system described in the City's Official Statement dated October _, 2013, entitled ["Ten Largest Utility Customers," "Rate History," "Water Resource Recovery Fees," "Water and Sewer Debt," "Water and Sewer Enterprise Fund Debt Service Requirements" and "System Operating Revenues, Expenses and Coverage."] If the financial statements filed pursuant to Section 2(a)(i) are not audited, the City shall file such statements as audited when available. (b) The City shall file annually with the Municipal Securities Rulemaking Board (the "MSRB") the financial information and operating data described in subsection (a) above (collectively, the "Annual Disclosure") within 180 days after the end of the City's fiscal year, commencing with the City's fiscal year ending June 30, [2014]. (c) Any Annual Disclosure may be included by specific reference to other documents previously provided to the MSRB or filed with the SEC; provided, however, that any final official statement incorporated by reference must be available from the MSRB. (d) The City shall file with the MSRB in a timely manner notice specifying any failure of the City to provide the Annual Disclosure by the date specified. Section 3. Event Disclosure. The City shall file with the MSRB in a timely manner not in excess of ten (10) business days after the occurrence of the event, notice of any of the following events with respect to the Bonds: (a) principal and interest payment delinquencies; non-payment related defaults, if material; unscheduled draws on debt service reserves reflecting financial difficulties; unscheduled draws on any credit enhancement reflecting financial difficulties; substitution of credit or liquidity providers, or their failure to perform; (f) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (g) modifications to rights of Bondholders, if material; (h) bond calls, if material, and tender offers; (i) defeasance of all or any portion of the Bonds; (j) release, substitution, or sale of property securing repayment of the Bonds, if material; (k) rating changes; (1) bankruptcy, insolvency, receivership or similar event of the City; (m) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (n) appointment of a successor or additional trustee or the change of name of a trustee, if material. Section 4. Termination. The obligations of the City hereunder will terminate upon the redemption, defeasance (within the meaning of the Rule) or payment in full of all the Bonds. Section 5. Amendment. The City may modify its obligations hereunder without the consent of Bondholders, provided that this Disclosure Agreement as so modified complies with the Rule as it exists at the time of modification. The City shall within a reasonable time thereafter file with the MSRB a description of such modification(s). Section 6. Defaults. (a) If the City fails to comply with any covenant or obligation regarding Continuing Disclosure specified in this Disclosure Agreement, any holder (within the meaning of the Rule) or beneficial holder of Bonds then outstanding may, by notice to the City, proceed to protect and enforce its rights and the rights of the holders by an action for specific performance of the City's covenant to provide the Continuing Disclosure. 2 (b) Notwithstanding anything herein to the contrary, any failure of the City to comply with any obligation regarding Continuing Disclosure specified in this Disclosure Agreement (i) shall not be deemed to constitute an event of default under the Bonds or the resolution providing for the issuance of the Bonds and (ii) shall not give rise to any right or remedy other than that described in Section 6(a) above. Section 7. Filing Method. Any filing required hereunder shall be made by transmitting such disclosure, notice or other information in electronic format to the MSRB through the MSRB's Electronic Municipal Market Access (EMMA) system pursuant to procedures promulgated by the MSRB. Section 8. Additional Disclosure. The City may from time to time disclose certain information and data in addition to the Continuing Disclosure. Notwithstanding anything herein to the contrary, the City shall not incur any obligation to continue to provide, or to update, such additional information or data. Section 9. Counterparts. This Disclosure Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. Section 10. Governing Law. This Disclosure Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Virginia. 12631717v1 CITY OF VIRGINIA BEACH, VIRGINIA Mayor, City of Virginia Beach, Virginia City Manager, City of Virginia Beach, Virginia 3 OFFICIAL NOTICE OF SALE CITY OF VIRGINIA BEACH, VIRGINIA $46,060,000 WATER AND SEWER SYSTEM REVENUE BONDS, SERIES OF 2013 Electronic bids only will be received by the City of Virginia Beach, Virginia (the "City"), in accordance with this Official Notice of Sale until 11:30 A.M., Local Time, on Tuesday, October 29, 2013 (the "Date of Sale") for the sale of $46,060,000* Water and Sewer System Revenue Bonds, Series of 2013 (the "Bonds"). In the case of a malfunction in submitting an electronic bid, facsimile bids will be allowed, as more fully described below. Immediately thereafter, the bids will be publicly announced, and the City Manager will act upon the bids by 3:30 p.m., Local Time. Unless otherwise defined in this Official Notice of Sale, all capitalized terms shall have the meanings as set forth in the Preliminary Official Statement, dated October , 2013 (the "Preliminary Official Statement"), containing information related to the Bonds. Bid Submission Solely as an accommodation to bidders, electronic bids via BIDCOMP/PARITY (the "Electronic Bidding System") will be accepted in accordance with this Official Notice of Sale. The City is using BIDCOMP/PARITY as a communication mechanism to conduct the electronic bidding for the sale of the Bonds. To the extent any instructions or directions set forth in BIDCOMP/PARITY conflict with this Official Notice of Sale, the terms of this Official Notice of Sale shall control. Each bidder submitting an electronic bid agrees (i) that it is solely responsible for all arrangements with BIDCOMP/PARITY, (ii) that BIDCOMP/PARITY is not acting as the agent of the City, and (iii) that the City is not responsible for ensuring or verifying bidder compliance with any of the procedures of BIDCOMP/PARITY. The City assumes no responsibility for, and each bidder expressly assumes the risks of and responsibility for, any incomplete, inaccurate or untimely bid submitted by such bidder through BIDCOMP/PARITY. Each bidder shall be solely responsible for making necessary arrangements to access the Electronic Bidding System for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Official Notice of Sale. Neither the City nor the Electronic Bidding System shall have any duty or obligation to provide or assure such access to any bidder, and neither the City nor BIDCOMP/PARITY shall be responsible for proper operation of, or have any liability for, any delays or interruptions of, or any damages caused by, BIDCOMP/PARITY. For further information about BIDCOMP/PARITY, potential bidders may contact BIDCOMP/PARITY at 1359 Broadway, 2nd Floor, New York, New York 10018, telephone (212) 849-5021. In the event of a malfunction of the Electronic Bidding System, facsimile transmission bids will be accepted up to 11:30 A.M., Local Time, on the Date of Sale. Bidders choosing to submit bids in the case of a malfunction by facsimile transmission shall use the following telecopier numbers for such transmission: (757) 385- 4302 or (757) 385-8894 (Attention: Patricia A. Phillips). Transmissions received after the deadline shall be rejected. It is the responsibility of the bidder to ensure that the bid is legible, that the bid is received not later than 11:30 A.M., Local Time, and that the bid is sent to one of the telecopier numbers set forth above. Illegible transmissions shall be rejected. The City's financial advisor, Public Resources Advisory Group ("Financial Advisor"), will, on behalf of the City, verify receipt of each bid submitted through facsimile transmission by contacting each bidder by telephone once the bid has been received. The City's Financial Advisor will in no instance correct, alter or in any way change bids submitted through facsimile transmission. Neither the City nor its Financial Advisor will be responsible for bids submitted by facsimile transmission not received in accordance with the provisions of this Official Notice of Sale. Bidders electing to submit bids via facsimile transmission will bear full and complete responsibility for the transmission of such bid. Each bid must be unconditional. * Subject to adjustment as set forth herein. H-1 Adjustment of Principal Amount Prior to Opening of Bids The preliminary aggregate principal amount of the Bonds and the preliminary annual principal maturities of the Bonds, each as set forth in this Official Notice of Sale, may be revised by the City before the receipt of bids. Any such revisions made prior to receipt of the bids will be published via TM3 Newswire (or some other municipal newswire recognized by the municipal securities industry) and via BIDCOMP/PARITY no later than 9:30 a.m. (Local Time) on the Date of Sale. In the event that no such revisions are made, the preliminary amounts will constitute the amounts that shall be used for the bid and award of the Bonds, subject to further adjustment, as described below. Adjustment of Principal Amount After Award The City reserves the right, after the award of the Bonds to the successful bidder, to increase or decrease, by up to ten percent (10%), the principal amount of the Bonds being offered hereby. Any such increase or decrease in the principal amount of particular maturities of the Bonds will be communicated to the successful bidder by 5:00 p.m., Local Time, on the Date of Sale. The dollar amount bid for the principal of the Bonds by the successful bidder will be adjusted, as necessary, to reflect any increase or decrease in the principal amount of the applicable maturities of the Bonds so adjusted, but the interest rates specified by the successful bidder for each maturity will not be altered. Such adjusted dollar amount bid will not change the successful bidder's compensation per $1,000 of par amount of the Bonds from that which would have resulted from the bid submitted. The successful bidder may not withdraw its bid as a result of any change made within the foregoing limits. Principal Redemption The Bonds will be limited obligation bonds of the City, dated the date of delivery, which is expected to be November 13, 2013 (the "Dated Date"), and will mature serially or be subject to mandatory sinking fund redemptions on October 1 in the years and amounts shown below. Due October 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Series of 2013 Bonds Amount Due October 1 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Serial Bonds, Term Bonds and Mandatory Sinking Fund Redemptions Amount* Bidders may provide in the bid form for all of the Bonds to be issued as serial Bonds or may designate consecutive annual principal amounts of the Bonds to be combined into Term Bonds. In the event that a bidder chooses to specify a Term Bond, each such Term Bond shall be subject to mandatory sinking fund redemption commencing on October 1 of the first year which has been combined to form such Term Bond and continuing on October 1 in each year thereafter until the stated maturity of such Term Bond. The amount redeemed in any year shall be equal to the principal amount for such year set forth in the amortization schedule above. Bonds to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall be selected by lot from among the maturities of the Term Bond being redeemed. Subject to adjustment as set forth herein. H-2 111 Description of the Bonds; Book -Entry Only System The Bonds will be issued by means of a book -entry system with no distribution of physical Bond certificates made to the public. One Bond certificate for each maturity will be issued to The Depository Trust Company, New York, New York ("DTC"), or its nominee, and immobilized in its custody. The book -entry system will evidence beneficial ownership of the Bonds in principal amounts of $5,000 or multiples thereof, with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. Bond certificates registered in the name of Cede & Co. will be deposited with DTC. Interest on the Bonds will be paid semiannually on October 1 and April 1, beginning April 1, 2014, and principal on the Bonds will be paid annually on October 1, beginning October 1, 2014, to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The City will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be prepared, executed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that case, either a successor depository will be selected by the City or Bond certificates will be prepared, executed and delivered. Optional Redemption The Bonds that mature on and after October 1, 2024, will be subject to redemption beginning October 1, 2023, in whole or in part at any time, at the option of the City, upon payment of the par amount of principal so redeemed plus interest accrued and unpaid to the redemption date. The Bonds that mature on and before October 1, 2023, are not subject to optional redemption. Security The Bonds are limited obligations of the City, payable solely from Pledged Revenues of the System, subject to the prior application thereof to the payment of Operating Expenses, and reserves therefor, as provided in the Resolution. Neither the faith and credit of the Commonwealth of Virginia nor the faith and credit of any county, city, town or other subdivision of the Commonwealth of Virginia, including the City, are pledged to the payment of principal of or interest on the Bonds. In the Resolution, the City covenants to fix, charge, collect and revise its fees, rates and other charges for the use of and for the services furnished by the System in each Fiscal Year so as to produce revenues sufficient to pay the cost of operation and maintenance, the cost of necessary replacements and improvements and debt service on the Bonds and on any other indebtedness of the City secured by such revenues, and to provide certain reserves therefor. Use of Bond Proceeds As described in more detail in the Preliminary Official Statement, the Bonds are being issued to provide funds for various water and sewer construction projects in the City and for certain costs of issuance related to the Bonds. Bidding Rules; Award of Bonds Bidders may only bid to purchase all of the Bonds. Bidders are invited to name the rate or rates of interest per annum which the Bonds are to bear in multiples of one -twentieth (1/20th) or one-eighth (1/8th) of one percent. All Bonds maturing on the same date must bear interest at the same rate. Any number of rates may be named, provided that (a) the highest rate of interest may not exceed the lowest rate of interest by more than 4.0 percentage points, and (b) the highest rate of interest stated for any maturity may not exceed 5.25% per annum, but in no event shall the "true" interest cost exceed 5.25%. No bid for less than 100% of par plus accrued interest (computed on the basis of a 360 -day year and twelve 30 -day months) shall be considered. The City reserves the right to reject any or H-3 fll all bids (regardless of the interest rate bid), to reject any bid not complying with this Official Notice of Sale and, so far as permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process. Unless all bids are rejected, the Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale and submitting a bid which provides the lowest "true" interest cost to the City. True interest cost shall be determined for each bid by doubling the semiannual interest rate, compounded semiannually, necessary to discount the debt service payments from the payment dates to the Dated Date and to the price bid. If more than one bid offers the same lowest true interest cost, the successful bid will be selected by the City Manager by lot. Bids for the Bonds shall not be conditioned upon obtaining insurance or any other credit enhancement. If a bidder proposes to obtain a policy of municipal bond insurance or any other credit enhancement, any such purchase of insurance or commitment therefor shall be at the sole option and expense of the bidder, and the bidder must pay any increased costs of issuance of the Bonds as a result of such insurance or commitment. Any failure by the bidder to obtain such a policy of insurance shall not in any way relieve such bidder of its contractual obligations arising from the acceptance of its bid for the purchase of the Bonds. As promptly as reasonably possible after the bids are received, the City will notify the bidder to whom the Bonds will be awarded, if and when such award is made. Such bidder, upon such notice, shall advise the City of the initial reoffering prices or yields to the public of each maturity of the Bonds (the "Initial Reoffering Prices or Yields") and details regarding the anticipated use of a municipal bond insurance policy, if any, in connection with the Bonds. The successful bidder must reasonably expect to sell to the public 10% or more in par amount of the Bonds from each maturity at the Initial Reoffering Prices or Yields. All bids will remain firm for a period of no less than four hours after the time specified for the opening of bids. An award of the Bonds, if made, will be made by the City Manager within such four hour period or, with the express consent of the bidders, such longer time period as deemed necessary. Good Faith Deposit The successful bidder for the Bonds is required to submit a Good Faith Deposit in the amount of $460,000 payable to the order of the City of Virginia Beach in the form of a wire transfer in federal funds, as instructed by the City's Financial Advisor. The successful bidder must submit the Good Faith Deposit not later than 4:00 P.M., Local Time, on the Date of Sale. The successful bidder shall provide the federal funds reference number upon request of the City. If the successful bidder fails to comply with the terms of its bid, the Good Faith Deposit shall be retained by the City as full liquidated damages; otherwise, the amount thereof will be applied to the purchase price of the Bonds at the time of delivery. No interest on the Good Faith Deposit will accrue to the successful bidder. Delivery of the Bonds The Bonds will be delivered at the expense of the City, in New York, New York, through the facilities of DTC on or about November 13, 2013. Concurrently with the delivery of the Bonds, the City will furnish to the successful bidder without cost (a) a certificate dated the date of delivery of the Bonds, signed by the appropriate City officials and stating that no litigation of any kind is then pending or, to the best of their information, knowledge and belief, threatened against the City to restrain or enjoin the issuance or delivery of the Bonds and (b) certificates dated the date of delivery of the Bonds, stating that the descriptions and statements in the Official Statement (except in the sections entitled "Book -Entry System" and "Tax Exemption" and in the columns "Price/ Yield" and "CUSIP No." on the inside cover), on the date of the Official Statement and on the date of delivery of the Bonds, were and are true and correct in all material respects, did not and do not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such descriptions and statements, in light of the circumstances under which they were made, not misleading. Such certificates will also state, however, that such City officials did not independently verify the information indicated in the Official Statement as having been obtained or derived from sources other than the City and its officers but they have no reason to believe that such information is not accurate. H-4 Certificate of Winning Bidder The successful bidder must, by facsimile transmission or overnight delivery received by the City within 24 hours after receipt of the bids for the Bonds, furnish the following information to the City to complete the Official Statement in final form, as described below: A. The offering prices for the Bonds (expressed as the price or yield per maturity, exclusive of any accrued interest). B. Selling compensation (aggregate total anticipated compensation to the underwriters expressed in dollars, based on the expectation that all Bonds are sold at the prices or yields described in Subpart A above). C. The identity of the underwriters if the successful bidder is a part of a group or syndicate. D. Any other material information necessary to complete the Official Statement in final form but not known to the City. Prior to the delivery of the Bonds, the successful bidder shall furnish to the City a certificate in form acceptable to bond counsel, to the effect that the successful bidder has made a bona fide public offering of the Bonds at the initial public offering prices set forth in such certificate and that a substantial amount of the Bonds of each maturity were sold to the public (excluding bond houses, brokers and other intermediaries) at such initial public offering prices. Such certificate shall state that (1) it is made on the best knowledge, information and belief of the successful bidder and (2) 10% or more in par amount of the Bonds of each maturity was reasonably expected to be sold on the Date of Sale to the public at the initial public offering price (such amount being sufficient to establish the sale of a substantial amount of the Bonds). CUSIP Numbers It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with the terms of its bid. The City will assume responsibility for the expense of the initial printing of CUSIP numbers; provided, however, that the City assumes no responsibility for any CUSIP Service Bureau or other charges that may be imposed for the assignment of such numbers. All expenses in connection with the assignment of CUSIP numbers shall be paid by the successful bidder. It shall be the obligation of the successful bidder to furnish to DTC an underwriter questionnaire and to the City the CUSIP numbers for the Bonds within two business days following the date of award. Official Statement The City will furnish the successful bidder at the expense of the City a reasonable number of copies of the final Official Statement by the earlier of the closing date and seven business days from the date of the award of the Bonds, as specified in Rule 15c2-12, as amended, (the "Rule"), of the Securities and Exchange Commission (the "SEC") and the rules of the MSRB provided that minor delays in furnishing such final Official Statement will not be a basis for failure to pay for and accept delivery of the Bonds. Additional copies will be made available at the successful bidder's request and expense. The City assumes no responsibility or obligation for the distribution or delivery of the Official Statement to anyone other than the successful bidder. The successful bidder agrees to provide one copy of the Official Statement to the Municipal Securities Rulemaking Board using its Electronic Municipal Market Access System upon receipt of the Official Statement from the City and two copies of the Official Statement (with any required forms) to the MSRB or its designee no later than ten business days following the Date of Sale. The successful bidder shall notify the City as soon as practicable of (1) the date which is the end of the underwriting period (such "underwriting period" is described in the Rule), and (2) the date of filing the Official Statement with the MSRB or its designee. If the Bonds are awarded to a syndicate, the City will designate the senior managing underwriter of the syndicate as its agent for purposes of distributing copies of the Official Statement to each participating underwriter. H-5 Any underwriter executing and delivering a bid form with respect to the Bonds agrees thereby that if its bid is accepted it shall accept such designation and shall enter into a contractual relationship with all participating underwriters for the purposes of assuring the receipt and distribution by each such participating underwriter of the Official Statement, unless another firm is so designated by the syndicate in writing and approved by the City. Legal Opinion The approving opinion of Kaufman & Canoles, a Professional Corporation, Norfolk, Virginia, Bond Counsel with respect to the Bonds will be furnished to the successful bidder at the expense of the City and will state that the Bonds constitute limited obligations of the City, payable solely from Pledged Revenues, as defined in the Preliminary Official Statement, subject to the prior application thereof to the payment of Operating Expenses, and reserves established under the Resolution on a parity with other water and sewer system revenue bonds of the City. Federal and State Securities Laws No action has been taken to qualify the Bonds under the federal and Commonwealth securities laws. Tax Matters The Preliminary Official Statement contains a discussion of the effect of the Internal Revenue Code of 1986, as amended, on the exclusion from gross income of interest on the Bonds and also contains the proposed form of the opinion of Kaufman & Canoles, a Professional Corporation, insofar as it concerns such exclusion. Continuing Disclosure To assist the successful bidder in complying with the Rule, the City will agree, pursuant to the Continuing Disclosure Agreement, to provide certain annual financial information and operating data and notices of the occurrence of certain events. A description of this undertaking is set forth in the Preliminary Official Statement for the Bonds and will also be set forth in the final Official Statement for the Bonds (See Appendix G of the Preliminary Official Statement). Change of Date and Time for Receipt of Bids The City expects to take bids 011 the Bonds on Tuesday, October 29, 2013. However, the City reserves the right to postpone the date and time established for the receipt of bids. Any such postponement will be announced by the Thomson Municipal Newswire ("TM3"), or any other such service. If the receipt of bids is postponed, any alternative date for receipt of bids will be announced via TM3, or any other such service. Any bidder must submit a bid for the purchase of the Bonds on such alternative sale date in conformity with the provisions of this Official Notice of Sale, except for any changes announced via TM3, or any other such service used by the City for this purpose, as described therein. Additional Information For further information relating to the Bonds and the City, reference is made to the City's Preliminary Official Statement. The City has deemed the Preliminary Official Statement to be final as of its date within the meaning of the Rule, except for the omission of certain pricing and other information permitted to be omitted pursuant to the Rule. The Official Bid Form and the Preliminary Official Statement may be obtained from the City's Financial Advisor, Public Resources Advisory Group (telephone 212-566-7800). Dated: October , 2013 CITY OF VIRGINIA BEACH, VIRGINIA By: James K. Spore City Manager H-6 City of Virginia Beach, Virginia OFFICIAL BID FORM Electronic bids (or facsimile bids as provided in the Official Notice of Sale) must be submitted by 11:30 am, Local Time. To: City Manager October 29, 2013 Office of the City Manager Virginia Beach, Virginia 23456 On behalf of the firm(s) listed below and pursuant to the terms and conditions listed in the City's Official Notice of Sale, we offer to purchase the $46,060,000* Water and Sewer System Revenue Bonds, Series of 2013 (the "Bonds"), of the City of Virginia Beach, Virginia, dated the date of delivery, expected to be November 13, 2013. This offer is made for all of the Bonds and for not less than all, maturing on October 1 in the years shown below. The schedule of maturities and interest rates upon which this bid is based are as follows: Maturity Amount* Rate Maturity Amount* Rate 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 (CROSS OUT THE SERIAL BOND MATURITIES BEING BID AS TERM BONDS.) Term Bonds (Optional) Year of Maturity Total Principal Amounts First Year of Mandatory Redemption Rate (LEAVE BLANK IF NO TERM BONDS ARE SPECIFIED) We will pay $ , which is not less than $ or not less than 100% of par (representing a premium of $ ), and will accept delivery of the Bonds by means of a book -entry system at The Depository Trust Company, New York, New York. If awarded the bid, we will deliver by wire to the City or its designee $460,000 in good faith money by 4:00 p.m., Local Time, on the date of sale and apply such good faith money in accordance with the Official Notice of Sale against any loss resulting from the successful bidder failing to comply with the terms of this bid. The good faith money will be deposited and credited on the purchase price, and no interest will be credited on the good faith money to the successful bidder. The good faith money will be retained by the City as liquidated damages in case the successful bidder fails to accept delivery of and pay for the Bonds. The undersigned hereby acknowledges receipt and review of the Preliminary Official Statement referred to in the Official Notice of Sale. Respectfully submitted, (Name of Bidding Firm) (Authorized Signature) (Name & Phone Number of Contact Person) NO ADDITION OR ALTERATION, EXCEPT AS PROVIDED ABOVE, SHOULD BE MADE TO THIS BID. (NOTE - The following is stated for information only and is not part of this bid: The true interest cost of this bid, calculated in accordance with the Official Notice of Sale, is % (to six decimal places). A list of the members of our syndicate is attached.) Preliminary, subject to change. H-7 111 -68- Item-VI-J.2 ORDINANCES/RESOLUTIONS ITEM #63198 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to execute an AMENDMENT to the Agreement between the City and the Virginia Aquarium and Marine Science Center Foundation, Inc. re construction of an "Aerial Adventure Attraction" Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 111 1 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO 2 EXECUTE AN AMENDMENT TO THE AGREEMENT 3 BETWEEN THE CITY AND THE VIRGINIA AQUARIUM & 4 MARINE SCIENCE CENTER FOUNDATION, INC. 5 6 WHEREAS, the City of Virginia Beach ("City") and the Virginia Aquarium & 7 Marine Science Center Foundation ("Foundation") entered into an agreement entitled 8 "Agreement Between the City of Virginia Beach and the Virginia Aquarium & Marine 9 Science Center Foundation, Inc.," dated June 25, 2012 ("Agreement"); and 10 11 WHEREAS, the Agreement addresses the roles and responsibilities of the 12 parties with respect to the operation of the Virginia Aquarium & Marine Science Center 13 ("Aquarium"); and 14 15 WHEREAS, the City is the owner of an approximately 38 -acre parcel of 16 undeveloped land, which is located on Birdneck Road near its intersection with General 17 Booth Boulevard ("Park and Entertainment Land"); and 18 19 WHEREAS, City Council adopted the Virginia Aquarium & Owls Creek Area 20 Master Plan Report in December 2011 as a reference document to the City's 21 Comprehensive Plan ("Master Plan"); and 22 23 WHEREAS, the Master Plan includes a plan for the Park and Entertainment Land 24 to be developed as a botanical garden, a ropes course, zip lines or other outdoor 25 entertainment; and 26 27 WHEREAS, the parties desire to amend certain provisions of the Agreement to 28 authorize the Foundation to utilize a portion of the Park and Entertainment Land for the 29 purpose of causing the development and operation of a coastal conservation garden 30 and outdoor recreation facility, as proposed in the Master Plan. 31 32 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 33 VIRGINIA BEACH, VIRGINIA: 34 35 That the City Manager is hereby authorized to execute an Amendment to the 36 Agreement between the City and the Virginia Aquarium & Marine Science Center 37 Foundation, Inc., provided the terms of the Amendment are in substantial conformity 38 with the summary attached hereto, and in a form deemed satisfactory by the City 39 Attorney. Adopted by the Council of the City of Virginia Beach, Virginia, on the 8th day of October , 2013. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: e(k City fFi e Department of Museums & Historic C y Attome yO Resources CA12792/R-1/September 25, 2013 SUMMARY OF TERMS First Amendment to Agreement Between the City of Virginia Beach and The Virginia Aquarium & Marine Science Center Foundation, Inc. ("Agreement") Parties: Purpose: City of Virginia Beach ("City") Virginia Aquarium & Marine Science Center Foundation, Inc. ("Foundation") To amend certain provisions of the Agreement to authorize the Foundation to utilize a portion of the City -owned 38 -acre parcel of undevelopea land located on Birdneck Road near its intersection with General Booth Boulevard ("Park and Entertainment Land"). Terms: • With prior written permission of the City Manager, the Foundation is authorized to utilize such portion or portions of the Park and Entertainment Land as may now or hereafter be designated by the City Manager for the creation and operation of outdoor recreational attractions and educational facilities that complement the mission of the Virginia Aquarium & Marine Science Center ("Aquarium"). • The Foundation, either by itself or by using a third party contractor approved by the City Manager, is authorized to construct, operate, and maintain, or to contract for the construction, operation, and maintenance of, outdoor amusement and recreational attractions, including but not limited to one or more aerial rope courses, zip lines, challenge elements, elevated tree canopy walks, a children's labyrinth, and all related concessions ("Aerial Adventure Attraction"). • The Foundation is responsible for the construction and operation of the Aerial Adventure Attraction on so much of the Park and Entertainment Land as shall be approved in writing by the City Manager. • The Foundation shall consult and coordinate with the City's Parks and Recreation Department in designing and planning the Aerial Adventure Attraction. • If the Foundation desires to expand its authorized use of the Park and Entertainment Land beyond the use initially designated by the City Manager, the Foundation shall provide the City Manager with construction plans and supporting documentation for review and approval. The approval of a request by the Foundation to expand the Aerial Adventure Attraction is within the discretion of the City Manager, is subject to such terms and conditions as the City Manager may determine to be appropriate, and is not guaranteed. • A portion of the Park and Entertainment Land is to be developed by the City, in consultation with the Foundation, as a coastal conservation garden. The coastal conservation garden will be constructed by the City and utilized as a free amenity that is open to the public. The coastal conservation garden shall be maintained by or at the expense of the Foundation as an educational function of the Aquarium. • All other areas of the Park and Entertainment Land not consisting of approved attractions and concessions shall be maintained by the City. • The Navy was consulted and preliminarily approved the concept. The Foundation will be required to seek further approval on the final plans for the Aerial Adventure Attraction. • The Foundation shall include, in all contracts with third party contractors relating to the Aerial Adventure Attraction, language stating that contractors unconditionally agree to indemnify and save harmless the City. • The Foundation shall procure and maintain, or cause the selected third party contractor to procure and maintain, public liability insurance covering liability arising from the construction, operation, and maintenance of the Aerial Adventure Attraction with policy limits of not less than $1,000,000 combined single limits per occurrence. 2 -69- Item-VI-J.3 ORDINANCES/RESOLUTIONS ITEM #63199 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Ordinance to ESTABLISH a Capital Project, "Thalia Station Revitalization and Conversion " for an EMS station and to TRANSFER and APPROPRIATE $735,000 from other projects DISTRICT 5 - LYNNHAVEN Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 1 AN ORDINANCE TO ESTABLISH CAPITAL PROJECT #3- 2 037, THALIA STATION REVITALIZATION AND 3 CONVERSION, TO APPROPRIATE FUNDS, AND TO 4 TRANSFER FUNDS FROM CAPITAL PROJECTS #3-021, 5 FIRE AND RESCUE STATION - TOWN CENTER (THALIA), 6 #3-244 FIRE AND RESCUE STATION - CHESAPEAKE 7 BEACH, AND #8-005 WESTERN BRANCH LYNNHAVEN 8 RIVER MAINTENANCE DREDGING 9 10 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 11 VIRGINIA, THAT: 12 13 1. Capital Project #3-037, Thalia Station Revitalization and Conversion, is 14 hereby established in the FY 2013-14 Capital Improvement Program; 15 16 2. The following funds in the amounts shown are hereby transferred to 17 Capital Project #3-037: 18 a. $100,000 from Capital Project #8-005, Western Branch Lynnhaven 19 River Maintenance Dredging; 20 b. $85,000 from Capital Project #3-021, Fire and Rescue Station - Town 21 Center (Thalia); and 22 c. $50,000 from Capital Project #3-244, Fire and Rescue Station - 23 Chesapeake Beach; and 24 25 3. $500,000 from the fund balance of the General Fund is hereby 26 appropriated, with estimated revenues increased accordingly, to Capital Project #3-037 27 Thalia Station Revitalization and Conversion. Adopted by the Council of the City of Virginia Beach, Virginia on the 8th day of October 2013. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPOROVED AS TO LEGAL SUFFICIENCY: -2e c. Budget and Management Services CA12796 R-1 September 27, 2013 -70 - Item -VI -J.4 ORDINANCES/RESOLUTIONS ITEM #63200 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Ordinance to APPROPRIATE donated funds of $600 for improvements to Fire Station No. 01, DISTRICT 5 - LYNNHAVEN Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 1 AN ORDINANCE TO APPROPRIATE A 2 DONATION TO THE FIRE DEPARTMENT 3 GIFT FUND 4 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That a $600 donation from the Bayshore Circle of the Kings Daughters is hereby 9 appropriated, with revenue from donations increased accordingly, to the Fire 10 Department Gift Fund for the purpose of making improvements to Station 01. Adopted by the Council of the City of Virginia Beach, Virginia, on the 8th day of October 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: Budget and Management Services CA12789 R-2 September 20, 2013 City Attorney's Office -71- Item-VI-J.5a/b/c ORDINANCES/RESOLUTIONS ITEM #63201 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and APPROPRIATE Grant funds from Edward Byrne Justice Assistance: a. $15,120 to the Sheriff b. $32, 000 to the Police c. $62,117 to Parks and Recreation for Youth Opportunities Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE 2 GRANT FUNDS FOR LAW ENFORCEMENT 3 PURPOSES 4 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 1. That $109,237 is hereby accepted from the Edward Byrne Justice Assistance 9 Grant, through the United States Department of Justice, and appropriated, with federal 10 revenues increased accordingly, to the FY 2013-14 Operating Budget of each of the 11 following departments: 12 a. $32,000 to the Police Department for a training program on dealing with teens; 13 b. $15,120 to the Sheriff Department for mobile radios and camcorders; and 14 c. $62,117 to the Parks and Recreation Youth Opportunities Office for a summer 15 at -risk youth employment program. 16 17 2. That all contracted positions funded through this grant shall be conditioned upon 18 grant funding and provide for elimination upon the expiration of such funding. Adopted by the Council of the City of Virginia Beach, Virginia on the 8th day of October 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: a Budget and Management Servic•s CA12785 R-1 September 26, 2013 11 Item -VI-K PLANNING -72- ITEM #63202 1. STEPHEN L. and LYNETTE M. ROHRING VARIANCE 2. BEACH MUNICIPAL FEDERAL CREDIT UNION/ CONDITIONAL CHANGE OF SISTERS II, LLC ZONING 3. COMMONWEALTH PROPERTIES/1B APT CONDITIONAL CHANGE OF LAND, L.C. ZONING 4. REED ENTERPRISES CONDITIONAL CHANGE OF ZONING and CONDITIONAL USE PERMIT 5. SANDPIPER, LLC/JERRY J. COLLIER CONDITIONAL CHANGE OF ZONING October 8, 2013 -73- Item -VI-K PLANNING ITEM #63203 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED IN ONE MOTION, BY CONSENT, Items 1(MOSS VOTE VERBAL NAY), 2, 3, 4a/b and 5 of the PLANNING AGENDA. Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -74 - Item -VI-K.1 PLANNING ITEM #63204 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED/CONDITIONED, BY CONSENT, Application of STEPHEN L. and LYNETTE M. ROHRING, for a Variance to the Subdivision Regulations, §4.1 (m)(1) of the City Zoning Ordinance (CZO) pertaining to right-of-way width for streets and a Special Exception, under the Form -Based Code, for a nonconforming structure at 423 20th Street DISTRICT 6 — BEACH BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of STEPHEN L. and LYNETTE M. ROHRING, for a Variance to the Subdivision Regulations, §4.1 (m)(1) of the City Zoning Ordinance (CZO) pertaining to right-of-way width for streets and a Special Exception, under the Form -Based Code, for a nonconforming structure at 423 20th Street (GPIN 2427073938) DISTRICT 6 — BEACH The following conditions shall be required: SUBDIVISION VARIANCE: 1. The subject site shall be resubdivided substantially in accordance with the submitted preliminary Subdivision Plat entitled "RESUBDIVISION OF WESTERN 10' LOT 23, LOT 25, AND EASTERN 10' LOT 27" dated April 26, 2013, and prepared by Roemer Land Surveyors. Said Plat has been exhibited to the Virginia Beach City Council and is on file in the Virginia Beach Planning Department 2. A minimum of a fifteen (15) foot wide private utility easement for sanitary sewer benefiting Lot 25A, as shown on the submitted Resubdivision Plat, shall be shown on the final Subdivision Plat entitled "RESUBDIVISION OF WESTERN 10' LOT 23, LOT 25, AND EASTERN 10' LOT 27"; dated April 26, 2013, and prepared by Roemer Land Surveyors. 3. An engineered Sanitary Sewer Plan shall be submitted to and approved by the City of Virginia Beach Development Services Center prior to the approval and recordation of the final Subdivision Plat. 4. The applicant shall dedicate a 2' x 50' strip along the northern lot line to the City of Virginia Beach for the right-of-way of 201/2 Street. This shall be included on the final Subdivision Plat. 5. The following note shall be provided on the final subdivision plat: A Special Exception for Alternative Compliance per Section 7.3.1 of the Oceanfront Resort District Form -Based Code, regarding Street Frontage and Building Type, was approved by the Virginia Beach City Council on October 8, 2013. Per said approval, 201/2 Street is designated as a Beach Street Frontage Type. October 8, 2013 Ili -75- Item -VI-K.1 PLANNING ITEM #63204(Continued) ALTERNATIVE COMPLIANCE: 6. Except as modified by any other conditions below, the architectural design of the dwelling shall be substantially as shown on the submitted untitled Architectural renderings included in the Staff Report, which are on record at the City of Virginia Beach Planning Department. This condition includes the called -out materials and color scheme depicted on said renderings. 7. The footprint of the dwelling shall be no larger than 25' x 30' (excluding the porch) and no smaller than 20' x 25' and shall be situated on the site such that the narrowest facade faces 201/2 Street. 8. The front facade of the dwelling shall be located within the Build -To Zone as designated by the Form -Based Code for Beach Street Frontage; however, any deficiency of the minimum amount of building facade required to be in the Build -To Zone shall be compensated by foundation landscaping and a minimum of one small tree as defined by the City of Virginia Beach Landscaping Guide. 9. The porch shall be a minimum of eight (8) feet deep and shall extend for no less than 100% of the width of the building facade. 10. All hedges shall be maintained at a height between three (3) and four (4) feet tall. 11. A maintenance free privacy fence shall extend along the rear lot line. Said fence shall be 100% opaque from the ground up for a maximum of five (5) feet; the privacy fence may extend to a maximum of six (6) feet tall if semi-opaque from the five (5) foot to six (6) foot level. 12. The applicant shall make all street improvements as further required during Development Site Plan Review; this includes curb, gutter and pavement extending the width of the subject lot. 13. Tree canopy coverage shall consist of one (1) medium tree or two (2) small trees. Foundation landscaping shall meet the minimum requirements of the City of Virginia Beach Landscaping Guide. 14. All landscaping must be maintained in good health. All landscaping that fails to grow shall be replaced with a similar type of plant that conforms to the landscaping associated with the Plans approved with this application. 15. No mechanical equipment shall be visible from the public right-of-way or adjacent property owners. 16. The driveway shall not substantially exceed the minimum required area necessary to accommodate two (2) vehicles. Said driveway shall be constructed of a permeable material. 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 Eighth day of October, Two Thousand Thirteen October 8, 2013 -76- Item-VI-K.1 PLANNING ITEM #63204(Continued) Voting: 10-1 Council Members Voting Aye: Glenn R. Davis, William R. "Bill" DeSteph, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Amelia N. Ross -Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, James L. Wood and Rosemary Wilson Council Members Voting Nay: John D. Moss Council Members Absent: None October 8, 2013 -77 - Item -VI-K.2 PLANNING ITEM #63205 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED, BY CONSENT, Application of BEACH MUNICIPAL FEDERAL CREDIT UNION/SISTERS II, LLC for a Conditional Change of Zoning from AG -2 Agricultural to B-2 Community Business, re construction of a full service Credit Union at 2440 Princess Anne Road DISTRICT 7 — PRINCESS ANNE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of BEACH MUNICIPAL FEDERAL CREDIT UNION/SISTERS II, LLC for a Conditional Change of Zoning from AG -2 Agricultural to B-2 Community Business, re construction of a full service Credit Union at 2440 Princess Anne Road (GPIN 1494838108) DISTRICT 7 — PRINCESS ANNE The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. 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 Eighth day of October, Two Thousand Thirteen Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -78 - Item -VI -K.3 PLANNING ITEM #63206 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED, BY CONSENT, Application of COMMONWEALTH PROPERTIES/ IB APT LAND, L.C. for a Conditional Change of Zoning from A-18 Apartment to Conditional A-36 Apartment re at 4585 Wicklow Place DISTRICT 3 — ROSE HALL BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of COMMONWEALTH PROPERTIES/ 1B APT LAND, L.C. for a Conditional Change of Zoning from A-18 Apartment to Conditional A-36 Apartment re at 4585 Wicklow Place (GPIN 1477502700) DISTRICT 3 — ROSE HALL The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Eighth day of October, Two Thousand Thirteen Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -79- Item-VI-K.4a/b PLANNING ITEM #63207 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED//CONDITIONED, BY CONSENT, Applications of REED ENTERPRISES at Holland and Dam Neck Roads DISTRICT 7 - PRINCESS ANNE a. Conditional Change of Zoning from AG -2 Agricultural to Conditional B-2 Business b. Conditional Use Permit: automobile repair and bulk storage BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Applications of REED ENTERPRISES at Holland and Dam Neck Roads (GPIN 1495138628) DISTRICT 7 - PRINCESS ANNE a. Conditional Change of Zoning from AG -2 Agricultural to Conditional B-2 Business The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. b. Conditional Use Permit: automobile repair and bulk storage 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 unless located within the fenced bulk storage yard. 3. No outside storage of vehicles in a state of obvious disrepair shall be permitted unless located within the fenced bulk storage yard. 4. If the existing plant material around the storage yard does not meet the intent of Category VI Screening as reviewed by the Planning Department's Landscape Architect, the storage yard shall be enclosed with Category VI screening, as specified in the Landscape, Screening and Buffering Specifications and Standards for the City of Virginia Beach. 5. No tires for sale, merchandise or parts shall be displayed or stored outside. 6. Any lighting for the storage yard shall be limited to light packs installed on the building and fence, as well as pole lighting not to exceed a maximum height offifteen (15) feet. All lighting shall be shielded and directed downward to limit the amount of light overspill outside the property boundary. 7. A Photometric Plan shall be submitted at the time offinal Site Plan review. 8. A Landscape Plan shall be submitted at the time offinal Site Plan review. October 8, 2013 -80- Item-VI-K.4a/b PLANNING ITEM #63207 (Continued) This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Eighth day of October, Two Thousand Thirteen Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -81 - Item -VI-K.5 PLANNING ITEM #63208 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED AS PROFFERED, BY CONSENT, Application of SANDPIPER, LLC/JERRY J. COLLIER for a Conditional Change of Zoning from B-2 Community Business to Conditional H-1 Hotel at 4800 and 4802 Alicia Drive DISTRICT 4 — BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of SANDPIPER, LLC/JERRY J. COLLIER for a Conditional Change of Zoning from B-2 Community Business to Conditional H-1 Hotel at 4800 and 4802 Alicia Drive (GPINs 1477314350; 1477313360; 1477312456) DISTRICT 4 — BAYSIDE The following condition shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Eighth day of October, Two Thousand Thirteen Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -82 - ITEM VI -L APPOINTMENTS ITEM #63209 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: MICHAEL H. LEVINSON Unexpired Term + 3 Years to 08/31/2017 PARKS and RECREATION COMMISSION Voting: 11-0 Council Members Voting Aye: 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, James L. Wood and Rosemary Wilson Council Members Voting Nay: None Council Members Absent: None October 8, 2013 -83 - Item -V-M ADJOURNMENT ITEM #63165 Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 6:17 P.M. r l (4)(145/14/01(//11't' Amanda Finley -Barnes, CC Chief Deputy City Clerk __..._,.....____,..... ser, MMC William D. Sessoms, Jr. Mayor R h Hodges Fr City Clerk City of Virginia Beach Virginia October 8, 2013 -84 - PUBLIC DIALOGUE Christine Ross, 749 Whistling Swan Drive, 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 ". Bryan Stevenson, 621 Antioch Street, Phone: 966-0757, spoke in support of Backyard Hens. The group's support has grown tremendously and they now have 740 Facebook followers. The surrounding cities have adopted Ordinance for backyard hens. He requested one member of City Council support backyard hens and draft a City Ordinance for consideration. Jineil "J.J." Hayes, 825 18"' Street, graduated from Salem High School and is a United States Veteran. Recently, she has become homeless due to a nasty divorce situation. Ms. Hayes is requesting assistance to obtain adequate housing. Ivy Kennedy, 4956 Willow Point Drive, Phone: 495-4783, is concerned re VanGuard Landing's proposal for Disabled Housing in Virginia Beach. Ms. Kennedy believes small group homes are the right choice, which strengthens home care support. Holli Martin, 4165 Rainbow Drive, Phone: 339-5325, is a single mom who works two jobs to pay her mortgage and other bills. Ms. Martin expressed her outrage over her most recent Water Bill and requested assistance in understanding why the bill is so high. The PUBLIC DIALOGUE re Non Agenda Items concluded at 6:34 P.M. October 8, 2013