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Home My WebLink AboutMARCH 10, 2015 WORKSHOP MINUTES g41A BE,44A 440Y,DAZ 1414441.117 • r It: VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 10, 2015 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, March 10, 2015, at 4:00 P.M. Council Members Present: M. Benjamin Davenport, Robert M. Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: Amelia N. Ross-Hammond -2- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM 4:00 P.M. Mayor Sessoms welcomed Phil Davenport, Director — Public Works. Mr. Davenport expressed his appreciation to City Council for their continued support. Today's presentation will provide an update to the Stormwater CIP: ftl‘ 11 1 Stormwater Management Update to City Council k March 10, 2015 u Below is an overview of today's presentation: (.1\ Overview • FY12-15 Stormwater Utility Increases & Fund Summary • Functional Components • Summary • Discussion k z March10, 2015 -3- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) • FY12-15 Stormwater Utility Increase & Fund • Summary • 3 This provides the FY2012-2015 Stormwater Utility Increase and Fund Summary: FY12-FY15 Stormwater Resourcing Project/Program Funding Coal Rpuired FY12 FY13 FY14 FY15 Nob, North Lake Holly(CIP 7-005) $1711 $3.2211 .50 Restores FY11 cut(Committed thin 2020) South Lake Holly)CIP 7-015) $12.7M $4.98M .80 Restores FY11 cut(Committed this 2020) Cape Henry Beach Drainage $50M $6.9M 1.00 1.50 Restores FY11 cut(Committed thin )CIP 7-151)(E Shore Dr Drainage) ($71M( (558M) 2018) Stand-up Two(2)Off-Road $1.7M $.85M .90 .90 Increases response to cltizen Ditch Crews requests Stand-up Additional Pipe $311 $.eM .90 Increases response to citizen Structure Crew(Cave-in) requests for infrastructure restoration Lake Management(CIP 7-152) $84M $3.25M 2.00 1.00 1.06 Restores FY12 cut/Initiates a 100 (pond/lake/canal dredging) year Maintenance Cycle Neighborhood Infrastructure $37M $7.25M 1.550 1.35 1.55¢ Prevents FY12 cull Initiates en 180 Rehabilitation)CIP 7-004) year Maintenance Cycle Partial Debt Serviced Stormwater Enhancements $8M $857K .350 .550 .950 Prevents FY12 cut Sub-basin retrofits(CIP 7-183) Begins to address Chesapeake TMDL Stormwater Pump Maintenance 8 $3.011 $50ns .300 .20 Initiates a Maintenance,Repair and Repair(CIP 7-412) Replace Program Oceanfront Stormwater Facilities $1.5M $250K .20 Initiates a Monitoring.Maintenance Maintenance)CIP 7-411) end Repair Program Virginia Stormwater Management Initiates a Program to meet the State Program(VSMP)Compliance 1.70 VSMP Compliance Requirements TOTAL 7.50 50 ny 1.70 4 March10, 2015 -4- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Below is the FY2015 Fund Summary: FY15 Fund Summary • SWU Generates $39,062,647 Annually • 1 Cent per Year= $897,867 • ERU's (FY 15) = 245,991 • ERU Annual Fee = $158.05 • ERU Daily Fee = $0.433 5 The Sources of Fees are provided below: tW Sources of Fees zx x.b..bi Of.bmP 1 Residential lot=1 ERU(equivalent residential unit) 6 1 ERU=2,269 square feet of impervious area Marchl0, 2015 -5- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) This provides the twenty-five (25)year Bonds that have been issued with the Total Debt Service payments for FY17 Proposed Budget of approximately$3.1-Million: TN f. '` Stormwater Debt Debt Amount Interest Rate Debt Service Payments(FY16) 2010B Storm $5,520,000 2.607% Water Revenue Refunding Bonds 2010A Storm $17,860,000 3.171% $1,747,655 Water Revenue Bonds 2015 Storm Water $23,500,000 2.871% $1,357,556 Revenue Bonds Total $46,880,000 $3,105,211 7 Truw ' ti, , �f Stormwater Debt Year Authorized Authorized and Series 2015 Remaining Unissued Bonds Authorized and Unissued 2006 $ 448,400 $ 448,400 $0 2008 $6,000,000 $ 6,000,000 $0 2011 $16,300,000 $16,300,000 $0 2013 $12,500,000 $751,560 $11,748,440 2014 $9,000,000 V0 $9,000,000 Total $44,248,440 $23,500,000 $20,748,440 8 March10, 2015 -6- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The sale of the remaining $20.7- Million in authorized and Unissued Debt will allow for the following changes in financial strategy for the program: .µ : Stormwater Capital Financing Strategy Change • CIP has been funded at high levels from pay-go • Proposing to reduce pay-go and increased bond funding • Allows for increased capacity to fund CIP projects • Allows additional cash to fund street sweeping 1 expansion v___ . , 4i1.1..,,,,,,,,i, Functional Components 10 March 10, 2015 -7- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The program consists of three (3) major functional components, they are: Flood Control, Water Quality and Operations and Maintenance: ��a Program Overview . g • Functional Components Flood-Control o w,ater§Quality c Oper,-atio $....8i Maintenance 11 For example, Flood Control projects include Water Quality measures and often resolve on-going Operations and Maintenance issues; Water Quality projects contribute to system effectiveness, keeping pipes and channels clean; and, effective Operations and Maintenance of the system preserves Flood Control capacity and enhances Water Quality measure efficiency. All three are done in concert to meet citizen expectations and to maintain compliance with State and Federal Mandates: Three Major Components Fully Integrated Water Flood Control Quality - Operations & Maintenance 12 March10, 2015 -8- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Using a combination of Operating Budget funds and Capital Improvement Plan with debt service the program's total financial resources total nearly$58-Million allocated as follows: •- '_ FY15 Resource Allocation t `i ttt Operating and CIP Flood Control 22% $13,014,976 Total Program Water Quality 22% $12,459,804 1 $57,873,659 Operation and Maintenance 56% $32,398,879 - OOP Flood Control 22% Operations& Maintenance 56% 13 • ‘rar----/- -- Flood Control Water \ /Flood Control Quality i '?---- operations& Maintenance 14 March10, 2015 -9- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) These are the Flood Control Recent Accomplishments representing almost$28-Million: !� Flood Control Recent Accomplishments CIP Project Name Cost Completed 7-902 61st Street Pump Station and Drainage $18.000,000 8/31/2012 7-010 Elizabeth River Shores $2,100,000 10/31/2012 7-016 South Lake Holly Watershed-Section III $2,300.000 9/30/2013 1 7-151 Eastern Shore Drive Interim Drainage Improvements $125,000 1/31/2014 IIS Ocean Park Tidal 8 Rainfall Flooding Evaluation 8 Interim l 7-063 Improvement $500,000 6/30/2014 7-005 North Lake Holly Drainage Improvement-Section II $4,700,000 12!31/2014 Totals $27,725,000 15 The requested Flood Control Program FY2016 Budget is $5.35-MILLION. The funding will be used to support the following thirteen (13) CIP projects. Specifics regarding each project are identified in the next several slides: tr- ,CFY 16 Requested — Flood Control 7-400 Aragona Drainage Improvements 7-036 Baker Road Culvert&Ditch Improvements 7-037 Bellamy Manor Outfall Ditch 7-030 Citywide Sea Level Rise/Recurrent Flooding Analysis 7-402 College Park/Level Green Drainage Improvements 7-151 Eastern Shore Drive Drainage 7-035 Lawson Forest Drainage 7-413 Neighborhood SW Infrastructure Improvements II 7-005 North Lake Holly Watershed 7-024 Southern Canal/Lead Ditch and Culvert Improvements 7-016 South Lake Holly Watershed 7-038 Thoroughgood Drainage 7-028 Windsor Woods Drainage 16 March10, 2015 -10- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Aragona Drainage Improvements is scheduled for completion in June 2019, totaling$2.4-Million: Flood Control 7-400 Aragona Drainage Improvements _' — Storm drain {~ : 4 . improvements to address severe roadway and • F-j ? property flooding �, throughout Aragona �''r Village - Completion in June 2019 1 - �, �., $2.4M 17 Baker Road Culvert and Ditch Improvements are in the acquisition phase totaling$450,000: Flood Control 7-036 Baker Road Culvert & Ditch Improvements z - Storm drain pipe and ditch improvements from Baker Rd.to Diamond Spring Rd. north of Northampton Blvd . - Coordinating with Burton . I Station SGA - Acquisition phase 5450 K is March10, 2015 -11- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Bellamy Manor Outfall Ditch is scheduled for completion in June 2016, totaling$750,000: • Flood Control '" • \ 7-037 Bellamy Manor Outfall Ditch - Drainage improvements to the existing primary drainage system within Bellamy Manor ° —Under design -Completion in June 2016 $750 K 19 Citywide Sea Level Rise/Recurrent Flooding Analysis and Study is a three (3) year study of major watersheds within the City, totaling$3-Million: 44). � Flood Control 7-030 Citywide Sea Level Rise/Recurrent Flooding Analysis and Study - First phase Lynnhaven River watershed - Identify the probable extent of SLR/RF impacts - Evaluate appropriate adaptation strategies in the vulnerable areas; and - Develop Implementation Plan $3.O M 20 March10, 2015 -12- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) College Park/Level Green Drainage Improvement Project is scheduled for completion in June 2019, totaling$1.6-Million: ,T, , Flood Control 7-402 College Park/Level Green Drainage t Improvements • Drainage improvements of neighborhood storm a "", , drain system , 1 • Design begins FY 2015 • Completion in June 2019 If* $1.6 M 21 Eastern Shore Drive Drainage Project is continuing with design and acquisition for Phase I and II; however, construction will not move forward pending the results of the three (3)year Citywide Sea Level Rise/Recurrent Flooding Analysis and Study: T,f li. Flood Control 7-151 Eastern Shore Drive Drainage • Drainage study July 2012—June 2014 • Total project cost >$70M • Phase I and II design & acquisition underway • Construction pending outcome of SLR study i , - hc -4, ,,:-., r_ , __ I $17.7 M _- 22 March10, 2015 -13- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Lawson Forest Drainage Project is scheduled for completion in the Fall, totaling$1.0-Million: `�- Flood Control 7-035 Lawson Forest Drainage „or,'" t — Neighborhood drainage improvements — Existing storm drain systems cleaned and evaluated - Completion in Fall 2015 • $1.0 M - r 23 This provides an overview of the Neighborhood Stormwater Infrastructure Improvements II project: Flood Control 7-413 Neighborhood Storm Water Infrastructure Improvements II Current Projects Completed Projects • 24th-1/2 Street Drainage Imp'ts •Ocean Park Drainage Imp'ts • Indian River Rd. and Muddy •Southside Rd.Drainage Imp'ts Creek Rd.Culvert Imp'ts •Oak Street Drainage •Goodspeed Road •Cosgrove Drainage Imp'ts 41 , $8.0M 24 .°. _. March10, 2015 -14- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) North Lake Holly Watershed is scheduled for completion in June 2018, totaling$17.9-Million: gTT , Flood Control 7-005 North Lake Holly Watershed Legend Completion in June 2018 Completed _ Section I-A $1.43M $1 l 9 M Section I-B $2.47 M # Section II $4.7 M "fon Advertise for Construction Section IV $z of M 114 � '� - Const.512015-5/2016 Y I t'• �� ^r Under Design -Section I-C s1.81 M 1 ,... Const.9/2016-6/2018 Section III $3.99 M .✓t -4..,`'{ Covet.5/2016-6/2018 -!'- tai 25 South Lake Holly Watershed is scheduled for completion in November 2018, totaling$14.7-Million: . % Flood Control 7-016 South Lake Holly Watershed Legend Completed Completion in Section III $2.3 M Const.912013 November 2018 Under Construction • Section II $3.91 x /' Const.9/2014-2/2017 Section I $0.60 M C Const.912014-2/2017 iry 1h Under Design t,.�, Section IV ss.oax A „� t�1 4°� Const.5/2016-1112018 $14.7 M 26 March10, 2015 -15- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) This provides an overview of the Southern Canal/Lead Ditch and Culvert Improvements: M.-- Flood Control $3.2 M 7-024 Southern Canal/Lead Ditch $300 K annually I Wad I and Culvert Improvements o' . r '. ' Completed OK Princess Anne Rd./Morris Neck Rd 1 ;r : Under Construction 1 Head River Rd �,-,% Crags Causeway Indian Creek Rd II Indian River Rd I,- 4 ill,. Future Construction � c: Muddy Creek Rd LEGEND Before After oProposedDitch s Culvert Improvements Completed ',r 0 Improvements 27 Thoroughgood Drainage is scheduled for completion in December 2015, totaling$870,000: Cr% Flood Control IIM 7-038 Thoroughgood (CO Drainage ;7- - Drainage S••„14 el, .0 • $870 K improvements of neighborhood storm drain system — Under construction '''"4 '1040.?-' —Completion in December 2015 ' y 28 March10, 2015 -16- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Windsor Woods Drainage Project preliminary design should be complete in June 2015 with the first phase to include improvements to Presidential Canal. Currently, $8.2-Million is allocated; however, it will take approximately$30-Million to complete: Flood Control 7-028 Windsor Woods Drainage Rt 'li��s'�_✓ �'Jt 1,,kEOft - Drainage improvements to �e4w11 ��,,,, alleviate wide spread 4 `E" $8 2 M repetitive storm water • to A • flooding - Under preliminary design— �r,: r • completion June 2015 • — First Phase will include improvements to Presidential Canal — Budget to Complete$30 M Rosa neer Clubhouse 29 This provides the FY2016-2021 Program Review, totaling$80-Million: Storm Water FY 2016-21 Program Review - Flood Control FY 2016 CIP Proposed Anticipate;: Project Total Budget Corn pletrm 7400000 Aragon Drainage Irrprovemants 2880800 625,000 06/30/19 7036000 Baker Road Culvert 8 Ditch k provements 458000 0 11/30/16 7037000 Bellamy Manor Outfall Ditch 758000 300,000 06/30/16 7030000 Cityw de Sea Level Rise/Recurrent Flooding Analysis 3.000.000 0 01/30/18 7402000 College Park/Level Green Drainage Improvements 1,598887 273,687 06/30/19 7151000 Eastern Shore Drive Drainage-Phase I 17339.356 0 Not Fully Funded 7035000 Lawson Forest Drainage 1,080,000 0 11/30/15 7413000 Neighborhood SW Infrastructure Improvements II 7,998995 1,458,066 Annual 7005000 North Lake Folly Watershed 17,871,135 300.000 06/30/18 7016000 South Lake Holly Watershed 14,738,000 900,000 11/30/18 7024000 Southern Canal/Lead Ditch and Culvert Improvements 3,250,000 300.000 Annual 7038000 Thoroughgood Damage 870,000 0 12/31/15 7028000 Windsor Woods Drainage 8,200.000 1,200,000 Not Fully Funded Report Total 79,907,173 5,356,753 30 March]0, 2015 -17- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) V".1) L i Water Quality Water /Flood Control Quality • operations& Maintenance i31 These are a few of the Water Quality Program Drivers: Water Quality Program Drivers l• Federal Clean Water Act — NPDES / MS4 Permits —TMDL's • State Stormwater Laws & Regulations • VSMP • E &S • Virginia Beach Citizens' Expectations • Environmental Committees and Organizations 32 March10, 2015 -18- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) These are the Water Quality Recent Accomplishment, representing almost$1.65-Million: Water Quality Recent Accomplishments CIP Project Name Cost Completed 7-414 Lynnhaven Middle School BMP Retrofit $100,000 12/31/12 7-183 Municipal Manna Pump-Out Conversion $200,000 12/31/12 7-183 Larkspur Middle School BMP Retrofit $400,000 12/31/13 7-410 Southern River Bacterial Source Identification $200,000 06/30/14 7-153 MO Dam Creek Bacterial Source Identification $600,000 10/31/14 7-183 Private Boater Pump-Out Program $150,000 10/31/14 Total= $1,650,000 33 i TRecent Accomplishments „..„...,,i Larkspur Middle School Lynnhaven Middle School Lynnhaven Municipal Marina - - i Boater Pump-out 34 March10, 2015 -19- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The Capital Improvement Plan currently includes the following Water Quality Projects for FY 2016: Water Quality Program Review 7-406 Elizabeth River TMDL Implementation Plan 7-153 Lynnhaven Watershed Restoration 7-410 Southern River TMDL Implementation Plan 7-414 Storm Water Quality Enhancements II 7-027 SWM Master Planning,Analysis,and Inventory 7-159 Water Quality Participation Projects(USACE,State) 35 The Elizabeth River is also part of the Chesapeake Bay Watershed. The City is developing an Improvement Plan: f Water Quality `,LPg)^TH .RSD 7-406 Elizabeth River TMDL yImplementation Plan • R*sfotaOwr River • i • — Elizabeth River impaired by bacteria, PCBs,nutrients,sediment fluabNh w... — Develop improvement plan • — Public participation,education and f y information — Target Stormwater retrofits,bank stabilization and wetland creation • — Woodstock Cove $200 K annually - ` 36 March10, 2015 -20- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The Lynnhaven River is a high priority Watershed located in the Chesapeake Bay. The City is working to address the Total Maximum Daily Load(TMDL) and the Improvement Plan: %i Water Quality 7-153 Lynnhaven — Address Lynnhaven TMDL and its Watershed Restoration improvement plan — Dey Cove — Mill Dam Creek stream bank restoration — Municipal marina pump out — No Discharge Zone — New Federal Authority— "Lynnhaven River Basin { , Ecosystem Restoration" • — Wetlands restoration — Oyster reef creation $800 K annually — Bank stabilization 3, The Southern River Watershed includes the Back Bay, North Landing and Northwest River secondary watersheds. There are permit requirements to implement projects and programs to address local TMDLs for these waterways and this CIP will be used to meet those requirements: Water Quality 7-410 Southern River • • " TMDL Implementation nib_ r Plan — Meeting implementation required by new VPDES permit and TMDL — Public participation,education and - ^^ information — Watershed monitoring analysis,study, design and construction of retrofits $200 K annually38 March10, 2015 -21- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The Stormwater Quality Enhancements II Project serves as a catch-all for several projects including: fr,,,.T.) Water Quality 7-414 Storm Water Quality Enhancements II — Funds storm water quality City wide —Dry weather field screeningPI w >- — Illicit discharge detection and *Q4 a elimination —Boater education and pump out W, program C3 — Owl Creek Boater Pump-out to ,,.- — Rudee Inlet Watershed Retrofit FjV Study 's - Turtle Lake Retrofit(Chesapeake ET-0 Bay TMDL) Public Information $ 1.7 M annually 39 The Stormwater Management Master Plan was created in the 1990's. Public Works is working to update the Plan to ensure the City is meeting regulatory compliance standards: .0,-,,i; ,.....___ Water Quality 7-027 SWM Master ,,Y,,• .':A- ,y Planning,Analysis, and - '� ,;�_, Inventory l Al-1 - Maintain existing Citywide model and update inventory r — Embarked on new stormwater `'47 :< master plan for entire City > — Update Inventoryy 64 1"",...7 bZ — Focus and emphasis on regulatory water quality s,':,.i. L ,'S , requirements — GIS based — Ultimate goal i iC:14C4. --" ='''.41. ' 41?- - Identify opportunities for system improvements — Regulatory compliance $8.6 M 40 March10, 2015 -22- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Below are the specifics regarding the Water Quality and Restoration Participation project: C) Water Quality $100 K annually Picture from i'::".*,. ..,,, , .;.:7 phragmites - harvesting report -r-p, '...w.-I 7-159 Water Quality Participation Projects(USACE, VA) — Provides matching funds for State and Federal stormwater quality grants&programs on a 50/50 basis — Funding studies of oyster reefs and dredging usage for compliance with TMDL's 41 The requested FY2017 Budget is just over $4.2-MILLION for this CIP, consisting of these six (6) projects: ".. � Storm Water FY 2016-21 Program Review — Water Quality CIP FY 201b Project Total Budget 7406000 Bizabeth River TMJL Implementation Ran 2,000,000 200,000 7153000 Lynnhaven Watershed Restoration 9,206,480 809,068 7410000 Southern River TMDL hlplementation Ran 2,000,000 200,000 7414000 Storm Water Quality Enhancements II 16,179,704 1,402,694 7027000 SWM Master Ranning,Analysis,and Inventory 8,570,906 1,500,000 7159000 Water Quality Participation Projects 1,886,499 100,000 Report Total 39,843,589 4,211,762 42 March10, 2015 -23- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) 56%of the CIP is allocated for Operations &Maintenance: f.T r - E Operations and Maintenance Water ,./) ,Flood Control Quality1 I , •perations & Maintenance 43 Operations and Maintenance • Funding Overview • Accomplishments & Requirements • Resourcing I Backlog 1 44 March10, 2015 -24- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) This provides the specific information for the FY2015 Stormwater Operating and CIP Budgets: ` Operations FY15 Operating & CIP Budget Dams, BMP/WC) Stormwater Spillways, Inspection Pipe • Stormwater Pipe Lake Weirs 3% Maintenance Maintenance 2% f24% Maintenance 14% • Off-Road Ditches • Roadside Ditches Pump • Street Sweeping Stations 5% • Cave-in Repairs • Pump Stations • Lake Maintenance Cave-in Repairs• OH-Road Dams,Spillways,Weirs 17% Street Roadside • BMP/Water QualityDitches R° lde 21% Sweeping Dehes Inspection 5% 9% Total FY15 Funding:$32,398,879] 45 Here are the specifics regarding the Stormwater Pipe Maintenance: (WStormwater Pipe Maintenance .)Stormwater Pipe:Approximately 2200 miles • • Scoping includes: • Large neighborhood system rehabilitation • Stormwater system condition assessment W • Aging infrastructure&strategic planning • Asset information management • • Isolated system failure repairs Capability: • Current cycle-180 years($5.2M/yr) (FY11:550 years) • Rehabilitation cycle goal:100 years($10M/yr) • Typical design life:50 years Accomplishments: • Neighborhood Pipe Rehabilitation Accomplishments: - FY13:Princess Anne Plaza,13.1 Miles,Cost:$5.5M - FY14:Aragona,12.9 Miles,Cost:$2.8M - FY15:Green Run,18.9 Miles Under Const.,Estimated Cost:$2.8M 46 March10, 2015 -25- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The Stormwater Infrastructure Rehabilitation and Improvements project includes these seventeen (17) projects totaling$6.57-Million each year: A 1 Stormwater Pipe Maintenance CIP 7-416 SW Infrastructure Rehab & Improvements Neighborhood Est. Pop. Cost Const. $6.57M annually Green Run 1970s 19,000 $4M FY15 Glenwood 1980s 10,000 $3M FY16 Pine Ridge/Hunt Club/Middle • Oaks/Strawbridge 1980s 6,000 $1.5M FY16 Kings Grant 1960s 9,000 $2M FY17 F* Magic Hollow 1970s 10,000 $2M FY17 "),P6, Fairfield 1970s 6,000 $2M FY18 Southgate 19805 3,000 $1M FY18 Ocean Lakes 1980s 7,000 $2M FY19 Windsor Woods 1960s 5,000 $2M FY19 _.W Indian Lakes 1970s 8.000 $2M FY20 Salem Woods 1980s 6,000 $2M FY20 ~-- Salem Lakes 19805 10,000 $1M FY21 Red Mill Farms 1980s 19,000 $2M FY21 Lagomar 1980s 4,000 $1M FY21 Malibu 1960s 5,000 $1M FY22 Foxfire 1990s 5,000 $1M FY22 Courthouse Estates 1990s 8,000 $2M FY22 47 Here are the specifics regarding the Off Road Ditch Maintenance Plan: A Off Road Ditch IVA Maintenance Plan Council Districts Off Road Ditch Miles of Ditch Mainlonancs Program with Milos by Fiscal Year Bayside-12.0 YEARS) MILES Beach—13.7 --FY14: (F,J) 21 4.11 Centerville-4.6 —FY15 (13,1.1) 23 • !) Kempsville—14.6 FY16. (C.N) 16 —FY17: (0,1.1 25 Lynnhaven-5.4 —FY18 (E,10 17 1 Princess Anne—90.9 —Fv19. (A,1) 10 Rose Hall—9.6 —FY20. (0,01 17 —FY21. m.P) 23 TOTAL 152 48 March10, 2015 -26- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) rct.-,.,x,4, Off-Road/Roadside Ditch Maintenance Off-Road Ditches: 152 total miles _ - Capability(3 crews) " • Current Cycle:15 years,10 miles/year , • Goal Cycle:8 year cycle,19 miles/year -- Accomplishments • FY12-FY14:13.9 Miles = . 1I • FY15:3.8 Miles(YTD) Holland Rd at Barberry Rd Before • Production Factors: z - VSMP regulations -- Weather • " - Heavy Vegetation - , '' Roadside Ditches:450 total miles • Average 45 miles/year .. , • FY12-FY14:134 miles maintained '' ``s • Current cycle-10 years -4,.........,libHolland Rd at Barberry Rd After 49 Here are the specifics regarding the Street Sweeping program: f Z ti) Street Sweeping Street Sweeping Inventory:Over 2500 Curb Miles - Capability: Sweeping Schedule(Chesapeake Bay and Atlantic Ocean): I • Residential Sweeping(Lynnhaven Watershed) - 18 month cycle • Arterial Sweeping(major roadways) - 60-90 day cycle • Oceanfront Sweeping 10; '�� - 7 nights per week,May to September _ • Town Center Sweeping - One night per week - Accomplishments: • FY12-FY14:16,978 CY of Material Removed - Goal: I • The Street Sweeping Program targets water quality and works to maximize TMDL responsiveness. 50 March10, 2015 -27- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) c„., ,:„ Cave-In Repairs Capability(5 crews): Service • 5 in-house crews FY Requests —700 work orders per year 11-12 1434 Accomplishment: • Average of 870 work orders 12-13 1701 over the last three years 13-14 945 Backlog: 14-15 YTD 457 • Current Cave-In Repair Backlog:450 ' 9 \',,,,;,,,1*.'"e " Y Here are the specifics regarding the Pump Stations at the Oceanfront: l Pump Stations CIP 7-411 Oceanfront Stormwater Facilities Maint. Project includes inspection,design,rehabilitation $0.5M annually &repairs to the storm drainage infrastructure under and around the boardwalk Accomplishments(FY13-FY15): I ill • Inspected submerged oceanfront outfalls at i;+Ilii i. 16th,42nd,and 79th Street,Inspection Cost tt{ $200,000F ! 1, • Cleaned and CCTV main trunk line from Rudee Inlet to 16th Street,Cost$100,000 • Completed 1,000 feet of Joint Sealant ;', - Repairs,Construction Cost$45,000 , • Must maintain an"Acceptable rating from j , _ USAGE during annual inspection of ` h - oceanfront stormwater facilities ' r:'' 52 March10, 2015 -28- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) F(4) , Pump Stations es CIP 7-412 Storm Water Pump Station Modifications Project to perform rehabilitation and major $0.75M annually maintenance modifications to the City's storm water pump stations. _ Accomplishments(FY12—FY15): • Pump Station Conditions Assessment Report,Cost$107,000 Fl I ri • Performed 5 year overhaul and inspections at 16th and 42nd Street,Cost$300,000 • Cape Story repairs,modifications,and r,.- i 4"„ • pump replacement,Cost$460,000 r • Implementing SCADA into 16 Storm Water 1 .,11 , 1 11 Pump Stations,Construction currently ongoing,Estimated Project Cost$500,000 4 � 0. 53 The CIP and Operating Budgets play into maintenance of the lake systems. The City is responsible for maintaining 492 lakes and the greatest maintenance need is dredging to restore the lakes to healthy depths. The Department developed annual services contracts with a dredging contractor and design team to move these projects more efficiently: . Lake Maintenance CIP 7-415 Lake Management II $4.95M annually BMP Maintenance Dredging Capability: yrs # • ASC Contractor&Design team for efficiency • Prequalify Contractors Accomplishments: - �- • Dredged approximately 53,455 cubic yards rfli - !r (FY12 to FY15 YTD) - ` :',, • Top 50 priority lakes programmed to be completed by 2026 -Brigadoon Lake#2 • FY11-950 year cycle time • FY15-95 year cycle time `-` .,,..,441 Scoping includes: .+Y • Lake dredging maintenance +�J • Dam and/or spillway repairs &maintenance K, • Inlet/outlet repairs&maintenance ,, • Shore/bank tree removal&maintenance '." Cinnamon Ridge Lake 54 March10, 2015 -29- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) This is the top fifty(50) based on silt depth with lake in similar areas grouped together: CO) Lake Maintenance CIP 7-415 Top 50 Lakes Dredging List TOTAL COST CONSTRUCTION RANKING ASSET DESCRIPTION ESTIMATE START(FISCAL YEAR) 1 CINNAMON RIDGE/TIMBERLAKE $1,654,557.38 2014. ,.. 2 BRIGADOON LAKE#2 $1,621,335.00 201481111.. 3 BRIGADOON LAKE#8 $ 445,969,00 2014( 4 SALEM LAKES#2 $1,772,859.09 2014. 5 BRIGADOON LAKE#1 $ 285,315.00 2014 6 BRIGADOON LAKE#3 $ 469,890.00 2014. 7 BRIGADOON LAKE#4 $ 25901000 2014'. 8 BRIGADOON LAKE#5 $ 200,365.00 2014, 9 BRIGADOON LAKE#6 $ 323,085.00 20154 10 BRIGADOON LAKE#7 $ 188,350,00 2017 11 GREEN RUN LAKE#2 $1,698,804.72 2010 12 GREEN RUN LAKE#3 $1,086,248.04 2010 13 GREEN RUN LAKE#4 $ 312,458.04 201411.1114 GREEN RUN LAKE#5 $ 340,498.59 2D17 15 BROOKSIDE#1 $ 170,800,00 201'7 16 GREENVIEW LAKE $ 234,578.09 2017 17 CENTRE POINTE#1 $ 210,281.87 2017~( 55 f Lake Maintenance CIP 7-415 Top 50 Lakes Dredging List TOTAL COST CONSTRUCTION RANKING ASSET DESCRIPTION ESTIMATE START(FISCAL YEAR) 18 CENTRE POINTE#2 $ 144,212.74 2017 19 LYNNHAVEN WOODS LAKE#1 $ 154,179.20 2017 ,„„ 20 STRATFORD CHASE#1 $ 266,000.00 2017411t 21 STRATFORD CHASE#2 $ 380,400.00 2017( 22 STRATFORD CHASE#3 $ 178,600.00 2017411 23 TURTLE LAKE $1,838,863.91 20184. 24 LEVEL GREEN 1 $ 325,800,00 201&(4 25 LEVEL GREEN 2 $ 298,000.00 2018A. 26 KINGS LAKE SOUTH $ 806,615.30 2017 27 WEST LAKE PEMBROKE 52,550,400.00 2020 28 SOUTHGATE LAKE#1 $ 319.937.55 2021 29 SOUTHGATE LAKE#2 $ 295.941.65 2021 30 SOUTHGATE LAKE#3 $ 542,87053 2021 31 THREE OAKS LAKE#1 $ 489.320,00 2021 32 SABRE STREET EXTENDED#2 $ 398.777.40 2021 33 ROCK CREEK#1 $ 205,600.00 2021 34 ROCK CREEK#2 $ 582.088 04 2022 56 March 10, 2015 -30- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) A---"(''''');.. Lake Maintenance CIP 7-415 Top 50 Lakes Dredging List TOTAL COST CONSTRUCTION RANKING ASSET DESCRIPTION ESTIMATE START(FISCAL YEAR) 35 ROCK CREEK#3 $1,776,047.73 2022 36 SALEM VILLAGE#2 $ 368,960.00 2022 37 GLENWOOD LAKE#7 $ 530,750.00 2023 38 LAKE PLACID#3 $ 209,523 60 2023 39 CHIMNEY HILL#1 $ 931,881.33 2023 40 CHIMNEY HILL#2 $ 804,650.00 2024 41 REEDTOWN(LAKE)AKA WISHART LAKE $1,287,222.00 2025 42 INDEPENDENCE PH 4A $ 161,800.00 2025 43 LAKE#2(GREAT NECK AREA) $ 681,738.49 2025 44 JOHN B.DEV $ 452,128.05 2025 45 ROSEMONT FOREST#5 $ 269,360.00 2025 46 ROSEMONT FOREST#B $ 327,600.00 2025 47 LAKE#4(THOROUGHGOOD AREA) $1,337,930.00 2026 48 LAKE RIDGE AREA LAKE#1 $ 354,803.72 2026 49 DODD DRIVE LAKE $ 274,366 85 2026 50 HOLLAND WOODS LAKE $ 674.031.01 2026 57 The City also provides operation and maintenance offifty-eight(58)dams and spillways in the lakes: ,,: Dams and Spillways Inventory:58 dams/spillways , '.= .---'A v [.� ; Requirements: —r.-"L:--+ L t • Condition assessed on a 1 to 3 year cycle ,,... dependent on hazard rating x' 'v • Tabletop exercises reviewing emergency ( ,'e action plans required ,,,,I.:;' Accomplishments: • FY 14/15:Kingston Dam and Spillway Major Reconstruction , r --- 43 7 • FY 15/16:Regulatory Dam Assessment ." 's Backlog: -- • Update State regulated dams to meet om� State requirements 1� 58 March]0, 2015 -31- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) The Operation Department maintains the inventory of Stormwater BMPs and performs inspections required by the MS4 Permit as well as physical maintenance of these structures: F.� TBMP/WQ Inspections Responsibilities: BMP 2015 Inventory of • BMPs • Water Quality Support Type Public and Private • VSMP Support Infiltration 452 Ponds/Lakes 1394 BMPs: Filtration 21 • BMP as-built plan reviews Outlet Control 14 (75-100 annually) • BMP inspections(criteria varies Other 293 depending on BMP type). Total BMPs 2174 Average 785 per year. • BMP maintenance with minority contractors b , S, 4 • BMP compliance/enforcement '_ -a a 59 2 BMP/WQ Inspections Water Quality support: VSMP Support: • Spill responses&reporting • Assist with the permitting process • Fish kill response • Inspect land disturbing activities • Dry weather screening • Program documentation investigations • Assist inspection staff and • Industrial Site Inspections contractors on permit compliance. • Public Works&City facility/yard • Develop,implement,and maintain inspections program process work flows • Training of Citywide Staff 111 3l1-11/ ,I 60 March]0, 2015 -32- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Here is an overview of the Operations Backlog of projects: Operations Backlog FY11 FY15 Budget Category FY12-14 Backlog Backlog Stormwater Pipe Maintenance CIP 7-416 4.450 $37.0M $32.5M Off-Road Ditch Maintenance 1.80 $10.2M $11.5M Cave-In Repairs 0.9$ $18.0M $3.6M Lake Management II CIP 7-415 4.0$ $84.0M $82.3M Oceanfront Stormwater Facilities Maintenance I CIP 7-411 0.20 $1.5M $2.0M Stormwater Pump Station Modifications CIP 7-412 0.50 $3.0M $3.0M Total: $153.7M $134.9M 61 Here is an overview to Expand Street Sweeping Capabilities due to PayGo/Debt Adjustment: fi Expand Street Sweeping Capabilities due to PayGo/Debt Adjustment Street Sweeping Program • The Street Sweeping Program specifically targets water quality and works to maximize TMDL responsiveness and safer streets. • Sweeping Schedule: — Sweeping in Chesapeake Bay and Atlantic Ocean Watersheds • Reduce cycle time in residential neighborhoods to every 3 months • 12 Sweepers and 17 FTEs needed — First Year Cost:$2.1 Million — Second Year Cost:$2.4 Million - Third Year Cost:$2.8 Million •+".yl Y_I — Fourth and Subsequent Years' Cost:$1.5 Million 62 March10, 2015 -33- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Here is an overview of the Additional Projects to be Accomplished due to PayGo/Debt Adjustment: ,,, Additional Projects to be Accomplished due to PayGo/Debt Adjustment Project FY 16 7037 Bellamy Manor Outfall Ditch 300,000 7415 Lake Management II 594,372 7413 Neighborhood Storm Water Infrastructure Improvements-II 1,400,000 7411 Oceanfront Storm Water Facilities Maintenance 323,000 7023 Primary System Infrastructure Improvements II 1,500,000 7016 South Lake Holly Watershed 700,000 7412 Storm Water Pump Station Modifications 307,500 7416 SW Infrastructure Rehabilitation&Improvements II 775,128 7027 SWM Master Planning,Analysis,and Inventory 700,000 7028 Windsor Woods Drainage 400,000 7,000,000 63 i Summary • FY12-15 Stormwater Fee increases have allowed us to initiate an"effective"stormwater management program • Regulatory requirements are continuing to grow and add cost and time to getting work accomplished • Additional resources are required to tackle backlogs • SLR& Recurrent Flooding are emerging as potential large resource requirements 64 March10, 2015 -34- CITY MANAGER'S BRIEFINGS STORMWATER MANAGEMENT PROGRAM (Continued) Discussion Mayor Sessoms thanked Mr. Davenport and the entire Team for the hard work and dedication to the City. March]0, 2015 -35- CITY MANAGER'S BRIEFINGS STRIVING FOR EXCELLENCE 4:55 P.M. Mayor Sessoms welcomed James Spore, City Manager. Mr. Spore expressed his appreciation to City Council for their continued support and advised this Report provides an opportunity to catalog some of the organization's results in an effort to continue to improve operations and service offerings: Striving for E•X•C•E•L•L•E•N•C•E Virginia Beach: A Quality Government Organization dettig~gray h4r y r� i la un,�e��lilt` • ►r 2014 Below are the City's Efficiency Efforts: Virginia Beach Efficiency Efforts Current Efforts • Governor's Task force for Local Government Mandate Review • City Council Process Improvement Committee • Hampton Roads Partnerships Shared Services Project- Phase II ➢Virginia Beach ➢Chesapeake ➢Norfolk • ICMA Insights Benchmarking/Best Practices Project • Striving for Excellence Process 2 March10, 2015 -36- CITY MANAGER'S BRIEFINGS STRIVING FOR EXCELLENCE (Continued) Below are the City's Cost Savings for FY2014: Cost Savings • Automated Material Handling in Libraries $250,000 (Libraries,ComIT,Public Works) • Phase II Solid Waste Route Optimization $784,000 (Public Works) • Paperless e-Bill(Public Utilities) $130,000 3 Below is the City's Cost Avoided for FY2014: Cost Avoided • State Contract for Regulated Medical $ 1,500 Waste Costs(Human Resources,Occupational Health) • Agriculture Marketing Strategy(Agriculture) $ 15,179 • Reimbursement of Hurricane Irene $597,135 (Finance) March10, 2015 -37- CITY MANAGER'S BRIEFINGS STRIVING FOR EXCELLENCE (Continued) Below is the City's Funds Raised/Donations for FY2014: Funds Raised/Donations • Second Grade Students on the Swim(SOS) $ 16,500 (Parks&Rec) • Special Events Process Improvements(SGA) $ 30,000 • Public Art(c„u„r,raff,) $250,000 Below is the City's New Grants Realized for FY2014: New Grants Realized • Growing our Future—Trees for Clean Water(Parks&Re) $ 6,250 • Virginia Dept.of EMS—Lifepak 15 Updates(EMS) $ 75,856 • Virginia Economic Development Access Fund— $ 453,000 Roadway(ED) 6 March10, 2015 • -38- CITY MANAGER'S BRIEFINGS STRIVING FOR EXCELLENCE (Continued) Below is the City's Ten Year Summary of Results: Ten Year Summary of Results City of Virginia Beach MOO 20:6 1007 2004 1009 2014 10.11 2012 2013 2014 Tom [I3,:sewed 92318 S6 4M 55718 53M $34M SI 7M $2.318 568.998 $2318 56.6M $38.9M ..rnneeaeee SIAM 2518 52918 53a6,1 53M $183 5411664 5846.700 $2.8 $3192 $31.918 F undralsIng 512.3M 5321669 526.618 53.884 5394112 52118 522.250 5560.350 9417.694 5406.500 511.588 Revenue 933/ 52.318 SIM $2763 5471,768 5624.337 S15M $571156 51.1M 5286,417 $9.5M 5191M New $518 $2294 $7.7M 5.1984 $6892 $1.918 55.2M $2710 51518 512.5M $113118 e34V 147 132 100 121 ul l04 82 80 1. 118technolop LLsn im pi-examen. 199 159 138 156 196 1.41 100 97 94 123 1.403 Number 24,503 23,000 21,553 19,354 .,186 17,982 20.020 16902 20.408 13.40/ 207.3C9 Value 5166 516.6M 514.918 51.3.2M 518.518 51970 519M 520M 520M 518.7M 5.17618 March 2015 7 Questions/Comments Virginia Beach Community For A Lime http://www.vbgov.co m/Rove rn ment/departments/city-manage r/Documents/2014SFX report.pdf Mayor Sessoms thanked the City Manager and his Staff for the "excellence"reported and for making Virginia Beach the "best City in the world". March10, 2015 -39- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD 5:10 P.M. Mr. Spore continued with the next presentation regarding the Economic Trends and Challenges Ahead: Economic Trends and the Challenges Ahead The New fiscal Reality March 10,2015 The components of Population Change are:Births, Deaths and Net Inflation: Population and Inflation Average Annual Growth Rates for Population & Inflation 15-20 80-90 90-00 00-10 10-14 proe«;on Population 4.13% 0.79% 0.30% 0.77% 0.57% Inflation-CPI 5.04% 2.92% 2.50% 2.04% 2.23% March10, 2015 -40- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Slower population growth, however, has not lessened the demand for services from citizens. The Demand for Services Index attempts to measure the demand for services citizens place on the City government. This demand is measured through the provision of selected governmental services, using 2000 as the base year. If demand grew equally with population, the index would remain at 100 through the entire time series. As the chart shows, the demand for services is growing about 77%above population growth since 2000: Demand for Services Index 190 180 170 160 150 140 130 120 0 111111111111 190 1 I 00 O1 02 03 04 05 06 07 08 09 10 11 12 13 14 The Average Annual Revenue Growth Rates reflect revenues for the General Fund, Special Revenue Funds, Schools and excluding the Enterprise Funds Average Annual Revenue Growth Rates 16.0% 14.0% 13.8% 12.0% 10.0% 9.4% 8.0% 6.0% 4.8% 4.0% 2.0% 1.5% -0.1%0.0% 80-90 90-00 00-10 10-14 15-20 -2.0% March10, 2015 • -41- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is the Average Annual Growth Rates by Major Categories of Revenues. It is important to note, every major category of revenue is underperforming since FY 2010: Average Annual Growth Rates by Major Categories of Revenues 80-90 90-00 00-10 10-14 15-20 Property Taxes 16.2% 5.9% 5.7% -0.3% 2.3% Consumer Revenues 16.5% 5.6% 4.1% 1.5% 2.3% Other Revenues 8.5% 5.0% 6.7% 1.3% 0.5% State 13.6% 6.6% 2.1% 0.1% 0.6% Federal 7.0% 9.3% 9.4% -3.7% -2.0% Total 13.8% 9.4% 4.8% -0.1% 1.5% The overall Budget has grown by a compound annual rate of 7.0%; however, a budget adjusted for only the growth in population plus inflation would have grown at a compound annual rate of 1.8%: Budget and Budget Adjusted for Population and Inflation 2,000 1.800 1,600 1,400 2 1,200 1,000 800 600 400 200 0 80 81 82 83 84 85 86 87 8889 90 91 92 9394 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 -Budget -Adj for Pop&Inflation March10, 2015 -42- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is the Relative Measures of Tax Burden: Relative Measures of Tax Burden Per Capita Expenditures R.E.Taxes as a%of as a%of Per Capita Median Household Income Income Virginia Beach 6.1% 3.1% Chesapeake 7.2% 3.3% Norfolk 8.6% 3.5% Portsmouth 9.1% 3.5% Suffolk 8.1% 3.9% Hampton 8.3% 3.9% Newport News 9.1% 3.3% This provides an overview of the Change in State and local Relationship:Reductions and Cost Sharing: Change in State and Local Relationship:Revenue Reductions and Cost Shifting Revenue at Historical Level-No Growth or Revenue Highest Year Amount FY 15 Funding Inflation Adjustment ABC Profits FY 00 1,210,809 - 1,210,809 Wine Tax FY01 608,410 - 608,410 599 Funding FY 00 15,791,352 10,936,280 15,791,352 Local Telecom Tax FY 06 28,233,483 24,633,483 28,233,483 Roadway Funding FY 01 25,719,000 - 25,719,000 School Funding FY09 364,471,728 322,657,768 364,471,728 $436,034,782 $358,227,531 $436,034,782 Reduction in Revenue ($77,807,251) Cost Shifting from State to City Lab Techs in Health Department (60,000) Indigent Burials (53,500) $91,202,471 Clerk of the Circuit Court (275,938) 7 'Y State Stormwater Mandate (1,800,000) Line-of-Duty (1,268,875) Health&Retiree for Constitutional Officers )9,936,907 ($13,395,220) March10, 2015 -43- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is the Measures of Income Growth since 1980-1990: Measures of Income Growth Annual Average Growth Rates 80-90 90-00 00-10 10-13 Median Household Income 6.3% 2.7% 2.8% -0.7% Adjusted for Inflation 1.5% -0.1% 0.4% -2.9% Census Bureau's Per Capita Income 7.1% 3.9% 3.1% 1.7% Adjusted for Inflation 2.2% 1.1% 0.7% -0.5% Here is the City's Pay Structure: City of Virginia Beach Pay Structure Current Pay Structure • Market-based system • Open pay ranges A-Each range has a minimum and maximum salary Employee salary may fall anywhere between minimum and maximum salary of the pay range ➢Open ranges provide flexibility in implementing pay increases ➢Merit Increases move employees through the pay range ➢Without merit increases salary compression occurs March10, 2015 -44- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Merit Goals • Goals: ➢4.5%merit increase every year ➢Employees reach pay range maximum within 10 years • Years providing 4.5%merit increase: ➢FY96-FY02 • Cost to provide 4.5%merit increase FY16: r$17.5M Here is the General and Merit Increase History for FY1996-201 5: General and Merit Increase History FY96-FY15 s VRS Offset z.3 / —.— _ .__�_s ____ t Merit Inc z -- - -- — ■General Increase ee,eceeeeeeeec6 see March10, 2015 -45- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is the General and Merit Increase History for FY1996-2015: Compensation History FY96-FY15 FY General Increase IncMreaserit e FY General Increase Merit Increase FY15(Oct) 2%(*1%VRS 0% FY04 0% 4.05% offset) FY14(Oct) 2%(*1%VRS 0% FY03 0% 3.50% offset) FY13 0%(+1%VRS 0% FY02 0% 4.50% offset) FY12 2.5% 0% FY01 0% 4.50% FY11 0% 0% FY00 0% 4.5% FY10 0% 0% FY99 0% 4.5% FY09 2.5% 0% MMM FY98 0% 4.5% FY08 1.5% 2% MEM FY97 0% 4.5% FY07 1.5% 3% MEI FY96 0% 4.5% FY06 0% 4.5% FY05 0% 3% - 'Structure Adjustments(adjustment of the minimum and maximum)were provided 1995-2005 to assist with market competitiveness.Structure adjustments did not provide an increase in employee base pay Here is a Summary of the recent Market Survey: Market Survey Summary • Prior Goal: Top of the market • Revised Goal: Remain competitive • Methodology: Comparison of benchmark midpoints • Surveyed Cities: ➢Norfolk ➢Chesapeake ➢Hampton ➢Newport News ➢Portsmouth March10, 2015 -46- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is the FY2016 Cost of Implementing Market: FY16 Cost of Implementing Market Total CostNumber of employee impacted 2.5%and more below Market $9,862,578 • l 1862 1115%and more below Market $4,251,437 1527 -.III 10%and more below Market $772,410 189 • The City implemented market adjustments each year between 1995-2002,2004,and 2011 • Market salary surveys have been conducted multiple times since 2004 but only implemented in 2011 • Market adjustments moved impacted classifications to a higher pay range but did not result in an increase in employees pay 1995-2004(increased earning potential); Employees in impacted classifications received a 5%pay adjustment with the market implementation of 2011 • Market adjustments without corresponding pay increases resulted in salary compression Here are the Costs to "Fix"Compression: Cost to "Fix" Compression Total Cost Number of Employees Horizontal $42M 4243 Vertical $994,500 151 March10, 2015 -47- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Here is an overview of the Compression Adjustment History: Compression Adjustment History FY Cost #of employees impacted FY15 $1.9M 3102 FY14 $768K 177 FY08 $3.9M 1141 FY07 $4.2M 1870 FY06 $1.4M 1638 FY05 $1.25M 1889 FY04 $1.03M 1579 FY03 $525K 900 FY02 $629K 835 FY98 $610K 300 Total Spent $16,212,000 Contributions for Health Care FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Employee Contributions $18.8 $19.7 $19.8 $19.6 $20.1 $20.6 $20.6 $21.0 $26.1 $34.7 Employer Contributions $56.2 $63.6 $74.4 $81.6 $83.8 $86.9 $88.9 $86.0 $93.7 $99.5 Health Fund Reserves Used $2.6 $0.0 $0.0 $0.0 $0.0 $0.8 $0.6 $12.0 $10.4 $3.2 Total Contributions $77.6 $83.3 $94.2 $101.2 $103.9 $108.3 $110.1 $119.0 $130.2 $137.4 March10, 2015 -48- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) This provides an overview of the Difference in Pay 2009-2015: Differences in Pay 2009-2015 2009 2015 Salary Increase Annual Salary Adjusted for Inflation Base Salary No Health/Dental $47,993 $52,733 $4,740/9.9% $46,899 Example 1 Base Salary $47,993 $52,733 $4,740/9.9% Employee Only— Healthcare/Dental $617 $1452 VRS $0 $1582 Net $47,376 $49,699 $2,323/4.9% $44,200 Example 2 Base Salary $47,993 $92,733 $4,740/9.9% Employee Family-Health Care/Dental $7024 $8,043 VRS $0 $1582 Net $40,969 $43,108 $2,139/5.2% $38,338 The Turnover Rate of employees with less than three (3)years is 22.82%: Turnover Rate FULL-TIME EMPLOYEE TURNOVER RATES turnover Rates 2009 2010 2011 2012 2013 2014 atWith Retirements 5.66% 6.49% 6.08% 6.43% 7.51% 8.08% Without Retirements 3.74% 4.05% 3.79% 4.16% 4.75% 4.90% Turnover of employees with less than 3 years of employment is 22.82%. March10, 2015 -49- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) VRS Contribution Rates 21.35% 16.48' 13.59% / 11.52% 10 801% 5 In FY 2015 the employer's VRS equals$50 million 0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 1E Here are a few important Compensation Facts: Compensation Facts • Since the market salary survey compensation philosophy was adopted in 1995 employees have received ten market adjustments • Compression has been addressed ten times and added more than$16.2 million to our salary costs;plus additional costs due to compounding adjustments by structure adj/merit increases/market adjustments,etc. • The average merit increase between FY96—FY08 was 3.97% • There have been no merit increases awarded since FY08 • Since 1995 the average compounded salary increase totals 92%(18%adjusted for inflation;0.8%each year) March10, 2015 -50- CITY MANAGER'S BRIEFINGS ECONOMIC TRENDS and CHALLENGES AHEAD (Continued) Takeaways 1. Downward Revenue Growth Trend 2. Slow Economic Growth Forecast—Next Five Years 3. Increased Demand for Services 4. State and Federal Funding Reductions and Program Mandates 5. Increased Total Compensation Cost Pressures Questions/Comments Mayor Sessoms expressed his appreciation to City Manager Spore for providing this informative presentation. March 10, 2015 -51- ADJOURNMENT Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 5:58 P.M. r, LAmanda Finley-Barnes, C Chief Deputy City Clerk _tet/moi ' th Hodges Fraser, MMC City Clerk March10, 2015