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Home My WebLink AboutAPRIL 26, 2016 WORKSHOP MINUTES ,ate. -1- n� fr,...,\#,,, � a�,e'S'L7 i Wiz) °#1,..,..„=0,0°- VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 26, 2016 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, April 26, 2016, at 4:30 P.M. Council Members Present: M. Benjamin Davenport, Robert M. Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: John D. Moss Out of town on business April 26, 2016 -2- ADD ON COLLEGE BEACH WEEKEND Mayor Sessoms acknowledged the amazing job of the entire City Staff for a job well done, specifically the Police Department. There was a large crowd at the Oceanfront and the Police Department did a great job at handling the situations that come with a large crowd. Mayor Sessoms expressed condolences for the Old Dominion Student that was killed at a `party house". It was stated on the news the house was rented using Airbnb with the owner of the home lives in China. This tragic event only reiterates the concerns expressed by this City Council. Council Lady Wilson advised a study is being conducted this Summer regarding Airbnb but, unfortunately no one from any municipality has been asked to serve on the committee. The City is not sure if someone from VML has been asked. Mayor Sessoms suggested the Council consider bringing the City's Delegation attention to the events from this past weekend and the real cause for concern regarding these type of rentals. Mayor Sessoms requested the City Manager prepare a letter to the Delegation for his signature. April 26, 2016 -3- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY AUDITOR 4:35 P.M. Mayor Sessoms welcomed Lyndon S. Remias, CPA, CIA. Mr. Remias expressed his appreciation to City Council for their continued support of the Department. Mr. Remias did not prepare a presentation but wanted to bring a few things to the City Council's attention. First, in the last Budget, City Council approved the funding for an additional Auditor and that was just filled earlier this month. Next, the Department is in the process of conducting the Audit of Human Services,per the City Council Resolution, and is hoping to have a report prepared next month. Lastly, the Department is fully funded and will spend the entire$32,000 in Operating Funds wisely. Mayor Sessoms expressed his appreciation to Mr. Remias and the entire Department for a job well done. April 26, 2016 -4- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY REAL ESTATE ASSESSOR 4:38 P.M. Mayor Sessoms welcomed Jerald D. Banagan, Real Estate Assessor. Mr. Banagan expressed his appreciation to City Council for their continued support: o � t til Real Estate Assessor Budget Workshop April 26, 2016 Jerald D. Banagan The Department's Operating Budget decreased from FY2015-16: Real Estate Assessor Operating Budget Program Unit FY 15-16 FY 15-16 FY 16-17 FY 16- Change FY 16 Amended FTE Proposed 17 FTE Amended to FY 17 Proposed Real Estate $3,234,174 34.0 $3,154,539 34.0 (79,635) (2.46%) Assessor Board of Equalization $9,043 0.27 $2,997 0.00 (6,046) (66 86%) Total $3,243,217 34.27 $3,157,536 34.0 $(85,681) (69.32%) April26, 2016 -5- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY REAL ESTATE ASSESSOR (Continued) 100%of the Department's Budget is from the General Fund with 92.1%expenditures for Personnel: FY 2016-17 Budget $248,632 7.9% Budget by Expense Category r Personnel ■Operations Below are the Department's Significant Issues: Real Estate Assessor's Significant Issues ➢ Maintaining existing staff and services. ➢ In addition to the Assessor's budget,is the Board of Equalization's budget of$2,997. Mayor Sessoms expressed his appreciation to Mr. Banagan and the entire Department for a job well done. April 26, 2016 -6- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION COMMISSION OF THE REVENUE 4:39 P.M. City Manager Hansen advised he received a phone call from the Phil Kellam, Commission of the Revenue, advising he is appreciative of the Budget and if there were any questions he would send the Deputy Commissioner up to provide answers. April 26, 2016 -7- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY 4:40 P.M. Mayor Sessoms welcomed Matthew B. Arvay, CIO. Mr. Arvay expressed his appreciation to City Council for their continued support: S�O S �,INtAeE,j�/i1 2 G }}� �a `v Communications and Information Technology Budget Workshop April 26, 2016 Matthew B. Arvay, CIO The Department's Operating Budget increased 5.87%from FY2015-16: ComIT Operating Budget General Fund Program Unit FY 15-16 Amended ®FY 16-17 Proposed FY 16-17 FTF Change eY 16 Amended to FY v Prope..a Multimedia ($3,912) 0 $0 0 53,912 -100% Mail Services $215,257 4 $216,189 4 $932 0.43% Business Center $986,218 12 $1,125,374 14 $139,156 14.11% Applications Support $8,522,728 55 $8,396,807 51 ($125,921) -1.48% Data&Info. Management $0 0 $972,978 9 $972,978 - Systems Support $6,774,293 38 $6,681,530 35 ($92,763) -1.37% Center for GIS $2,209,949 19 $2,234,981 19 $25,032 1.13% Telecom GF $1,742,175 13 $2,164,765 16 $422,590 24.26% Technology Services $1,502,347 13 $1,931,912 16 $429,565 28.59% Gen.Fund Subtotal $21,949,055 154 $23,724,536 164 $1,775,481 8.09% Capital Projects 1ST $471,339 4 $0 0 ($471,339) -100% • Internal Service Fund(Internal Customers) Telecom ISF $3,172,091 10 53,178,566 10 $6,475 0.20% Subscriptions ISF $3,615,091 0 $4,018,596 0 5403,505 11.16% ISF Subtotal $$8,787182 10 $7,197,162 10 $409,980 6.04% 1110312:1111111111111/=31103111111102/E31011111113=1111110123 April 26, 2016 -8- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) 77%of the Department's Budget is from the General Fund with 56.2%expenditures for Personnel: ComIT Budget- Fiscal Year 16-17 Budget by Fund Capital Reserves $944,180 $141,642 ■General Fund ar Internal Service Funds 3.1% \ 0.4% Budget by Expense Category Operating Person ' $12,469,30 I 8 40.3'4 f 517,366,56 8 ;r' z'`L" 56.2% a Personnel ■Operating Capital •Reserves 3% of the Capital Improvement Program is dedicated to technology; however, there are eighteen (18) projects that were requested but not funded, totaling$54.5-Million: Capital Improvement Program FY 2017-FY 2022 Total City CIP Funding—FY 2017 to FY 2022 CIT CIP Funding FY 2017—FY 2022 Condi 3% Family&Youth Opp. 5. Pe k,&Nto<r eet in, Utilities pualite Education& 22% Lifelong Learning $ Cultural&gacraatbnal $ Opp. Schools 18% Economk Vitality 5. OualityPhysical Environment Roadways 525,2767ea 36% quality O E.Ith.bn - $16,679,655 6 Safe Communnn IMIMMINIEM - - 5- 510,000,000 $10000000 90,000.000 10 Active CIT CIP Projects with$9.13M of funding programmed in FY17 18 Projects were requested but not funded totaling$54.5M April26, 2016 -9- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) The Business Relationship Management (BRM) focuses on bridging the gap between IT and other Departments: Business Relationship Management(BRM) S-1.Create a Business Relationship Management(BRM)function within Come'. Proactively engages with other City Departments to learn their respective business issues and problems and work collaboratively with Comil staff in planning,design,deployment and enhancement of IT applications and IT services. BRMI 2016 Transformational Leadership Award ClobaIBRM Community Excellence Award Winner Advise Influence Trusted Advisor Strategic Partner tta, CITIZENS CITY SERVICES to Demand BRM Supply i111111 . „, IT began working with the Department of Human Services last year on ways technology can assist in achieving the Strategic Plan: Business Relationship Management(BRM) and Department of Human Services (DHS) rm/35 02/35 as/sr gats 01/16 N/16 au/1g 0!/16 q1/1] pHs Engagement OHS FHchonk Ream*Implementation DHS Current Landscape OHS Strategic A:Newmem Olennina Engaged at Strategic and Operational Levels Electronic Records Management ✓ Conducted a landscape assessment ✓ Aligned DHS to enterprise Lasencche solution ✓ Developed a strategic technology plan ✓ Implemented scanning to meet state timelines Reduce duplication and inconsistencies in ✓ Assisted with internal process improvements data ✓ Led to the removal of numerous boxes of paper ✓ Access database remediation analysis is underway a Business Intelligence for timely data driven decisions I CIO,BRM and Data Scientist scheduled to meet with DHS in May April 26, 2016 -10- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) Business Relationship Management(BRM) 01/55 03/15 [—CZ. 4Mts Qt/1B 03/16 0a/t6 1716 03/07 OMS Engagement I OMS Mann.Retools Implementation DMS Curtent landscape DNSStralaalc Assessment Planning BRM:VB50 MOU VBSOCurrent ndwpe 1/13S0 Str-iiWgin Assessment Planning BRM EMS BMWIlMr,BR BRM PU r BPM MM BRM Finance Below are a few of the Significant Issues: Master Technology Plan-Significant Issues 5-4.Reorganize Comm to support a service-centric bslness model. ComIT's current organization structure needs be realigned to support a service-centric and customer-focused model. This change in organizational structure must be implemented to enable other service-related transformation initiatives volving resources and improvement in internal processes. 5-6.Modernize R job classes and specifications. Nearly half of ComiT's technical workforce working under a set of Systems Analyst or Programmer Analyst job spec ificat o s that have not beenc sed since 1990.Additionally,most of the City's current IT job classifications/series are radically misaligned with roles needed ina service optimized and customer-centric IT organization.Both of these issues will continue to negatively impact ComIT's ability to attract and retain IT staff in a competitive market. i New Organizational Structure for ComIT is complete ✓ New lob Families and Job Descriptions have been reviewed and accepted by HR;next step is to submit to City Manager for approval Master- .y Technology ➢ Staffing Gap plan y ✓ ComIT current staffing positions=168(FV16) �n/�f.• tr • Represents 2 of total city staff • • Gartner recommended ComIT be at f 3°of total city staff or:;._positions • Virginia Government Peer group average was 2 84%of total city staff or 198 positions • Total Government Peer group average was 2.76%of total city staff or 191 positions April 26, 2016 -11- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) Looking Ahead-Public Safety Public Safety Advisory B s j Membership:City Manager,CIO,ECCS Director,EMS Director,Fire Chief Police Chief and Sheriff ;• Activity Timeline: ✓ Charter ratified February 2016 I Public Safety Steering Committee established September 2015 I Public Safety Business Relationship Management Team launched in October 2015 ✓ The Board has been expanded to include VBSO.A formal MOU for IT Services was signed in March 2016 41119WPIPPIP. e .. ✓ As strategic partnerships are developed,Office of the FD Commonwealth's Attorney and the Courts will be included in the Public Safety Community of Interest Looking Ahead-Public Safety IPS Program - Timeline k _ 'i. M/3015 01/3016 03/0016 03/2016 04/2016 01/2017 02/2017 03/2011 06/2017 Orion:AgenYWeb n;nH/;nterfzr, Testing/Train;ng , rI 1 CAU/Records Mhaatlen CAD:Con Application(Including DECCAN) Provivonin8 Testing Training UD:Interfaces Design/Devebp/DepbY Testing ' ,/i Follow-op E ..� Follow-op CAD:11.pn,Ong Identification/Revkw' Develop/reit Ilemsh:Con Appikation Including Microsoft Data Warehouse and enacting Pr I WPr001603mg/RR /Testlng y Tnpkig ' Records:Mbrfxes Design/Devebp/Deploy --- w �✓ Polbwup / Records:Dab Conversion • ; d Plan Records:Reprtlrg IONNIONIO April 26, 2016 -12- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) Looking Ahead- Public Safety ➢ Oceanfront Cameras 1111- ✓ 29 Cameras have been purchased and delivered ✓ Genetec software has been installed and configured • Same software in use by VBCPS and will allow view access into city and school cameras ✓ Initial construction to be completed by December 2016 ar.• •uT ty.jr ➢ Intelligent Voice Radios ✓ 3,400 Public Safety radios being replaced t ✓ Project completion is slated for July 2016 t Looking Ahead-Next Generation Network TASK DATE Hardware Received February 2016 Kickoff Meeting February 2016 iS4 Optical Core Fiber Construction March-June 2016 Optical Core Facility Preparation April 2016 •� Optical Core Hardware Installation June—July 2016 NGN Training May—July 2016 I FECC�. FS7 Optical Core(6 sites)Complete July 2016 �• x' Sub Rings(69 sites)Complete July 2017 ' ( • DPI 810. '82 April 26, 2016 -13- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION INFORMATION TECHNOLOGY (Continued) Questions? Mayor Sessoms thanked Mr. Arvay and the entire Team for their work. April 26, 2016 -14- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE 4:52 P.M. Mayor Sessoms welcomed Patti Phillips, Director—Finance. Mrs. Phillips expressed her appreciation to City Council for their continued support: s i:gy _ 6r. Finance Budget Workshop April 26, 2016 Patricia A. Phillips, Finance Director The Department's Operating Budget increased 13.7%from FY2015-16: Finance Operating Budget Program Unit FY 15-16 fY 15-, FY 16.17 FY16 Amended 16 I Proposed -17 abuse FY16 FTE #T# "7b FM; . Directors Office $738,106 6.0 $759,218 6.0 $21,112 2.9% LV Registration $363,000 0.0 $297,000 0.0 ($66,000) (18 2%i Comptroller $1,701,292 19.0 $1,699,940 19.0 ($1,352) (0.1%) Payroll $846,314 10.0 $849,808 10.0 $3,494 0.4% Purchasing $1,172,270 13.0 $1,219,749 13.0 $47,479 4.1% General Fund $4,820,982 48.0 $4,825,715 48.0 $4,733 0.1% Risk Mgmt ISF $15,811,126 7.0 $18,671,619 7.0 $2,860,493 18.1% Capital Projects $180,562 2.0 $172,079 2.0 ($8,483) (4 7%) Total $20,812,670 57.0 $23,669,413 57.0 $2,856,743 13.7% April 26, 2016 -15- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE (Continued) 20.4%of the Department Budget is from the General Fund with 77.3%of expenditures for operations: FY 2016-17 Budget Capital Project ISF 0.7% General Fund F.;.....S1 1=1.1Budget by Fund or Revenue Risk Management ISF 78.9% ...::.. Reserves 1.6% Personnel 21.1% General Fund Risk Management ISF •Capital Project ISF Budget by Expense Category Personnel ■Operations Reserves and Transfers Below are the Department's Significant Issues: Finance Significant Issues • SWaM Procurement Programs: Policies and processes • Biweekly Payroll: Planned for May 2017 • Risk Management Fund: Increased funding by$2.8 million; General Assembly Action on fee schedule • Triple A bond rating: Constant review to maintain • Policy Development:Travel,Hiring Retirees,Close out,Procurement • Efficiency through Process Improvement:Training • Financial Systems Modernization: Planning replacement of 18 year old system originally implemented when there was no"Wi-Fi" Need more efficiency,intuitive functionality. Cornerstone of a Well-Managed Government • Staff Resources Manage process improvement and system functional accuracy. 30%core staff reduction over last 22 years. • State level involvement: LODA and VRS April 26, 2016 -16- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE (Continued) Taylor Adams, Purchasing Agent,provided an overview of the SWaM Procurement Program: SWaM Procurement Program • City Council aspirational goal of 10%for Minority Businesses — Actual FY2015:4.85%of overall expenditures(8%:goods and services;2%: construction)Total of$14.1 Million — First 6 Months of FY2016 over 5%overall expenditures — In FY16,City made its first annual services construction award to a minority contractor for$542,000 — Many other successes this year including IT,Light Rail, Parks&Recreation • Contractors Institute • Hampton University Initiative • Procurement Opportunities Committee • Changes in procurement requirements to reduce burden of bidding (80/20 rule) Biweekly Payroll ➢Second Step in transforming to a modern pay system ✓ First step was Arrears in May 2014 ➢Target date is May 7,2017 • Workweek and pay periods line up ➢ No conflicts with year end work and benefits enrollment Budget includes$1.2 million to provide a short term supplement to employees to transition to a biweekly pay system ➢Communications and Education ➢Will brief Council in more detail in about a month April 26, 2016 -17- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE (Continued) Risk Management Division Internal Service Fund • Departments are charged for their share of Risk Management Costs each year based on their actual experience • Serves as internal insurance company for City — Coverage for all City-owned real property Over$1 B in assets. — Workers Compensation:Self-insured first$1.25 M — Automobile&Liability Insurance:Self-insured first$2M • Administer vehicle titles • Disaster Cost Recovery Coordinator:Recovered$839,430 in FY2015 • Subrogation of damages:Recovered$425,000+ • Coordinates information on take home vehicles • Increased funding in FY 17 by$2.8 million to mitigate deficit FY15 Risk Management Expenses (in Millions) Total Expense$17.2M* General and Auto -Administrative Liability Cliams Costs 5% Om" Insurance- Premiums Ala Workers' 4000/__Compensation Claims 73% sa.SM *Does not include increase in estimated liability of$5.4 M for future costs associated with current year claims and judgments April 26, 2016 -18- CITY MANAGER'S BRIEFINGS FY2016-201 7 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE (Continued) Workers Compensation is Major Expense • Catastrophic injuries in the public sector • City pays lost wages and medical to retirees approved for VRS job-related disability • Medical costs for injury are paid for life • Virginia is one of few states that does not have a fee schedule for Workers'Compensation • SB 631 creates fee schedule beginning Jan 1 2018 — City Council Legislative Agenda included this request • Negotiated some improvements in costs with some providers • Continuing to build a Safety Culture 2014 Prevailing Community Rate Report Comparison of Virginia with Neighboring States PRCODE/Ttaatmant State Avg.Coat PCTCODE/Treatment State Avg.Cort 99213 29891 VA' $12600 VA IAVG) $1,793.00 VA•' $105.00 VA(State) $3,510.00 Office Visits City of Va.Mach(W/C) $182.51 Surgery CNy of Va.Beach(WIC) $2,596.33 City of Va.Beach Group Health Ins. $72.61 City of Va.Beach Group Health Ins. $1,122.46 KY $78.00 KY $1,369.00 TN $10400 TN $1,319.00 MD $9300 MD $939.00 NC $67.00 NC 11 154.00 73721 62311 VA(AVG) 32,90400 VA(AVG) $632.00 VA(State) $2,137.00 VA(State) $600.00 Major Radiology City of W.Mach(W/C) $1,092.93 Pain Mgmt. thy of Va.Beach(W/C) $614.09 City of Va.Beach Group Health Ins. $567.78 City of Va.Beach Group Health Ins. $456.41 KY $694.00 KY $321.00 TN $44500 TN $191.00 MD $33000 MD $140.00 NC 76900 NC $377.00 97130 VA(AVG) $48.00 VA(State) $5200 Physical Medicine City of Va.Beach(W/C) $136.50 Heath $3600 TN $38 00 MD $41 00 NC (2600 'Average charge from claims against state ••Statewide Prevailing Community Bate by Community NOTE:Virginia Beach Group Health Insurance Rate obtained for Virginia Beach Consolidated Benefits Office 10 April 26, 2016 -19- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION FINANCE (Continued) Triple A Bond Rating • 48 bond issues outstanding to manage payments, security, IRS and SEC • Currently over $1.3 billion outstanding • Review for refunding opportunities • Communicating to three major rating agencies Conclusions • SWaM/Minority Business Procurement-Finance is leading efforts to establish communications,programs,coaching and mentoring. • Biweekly payroll and ERP Infrastructure–Modernization of our 20th century financial application(18 years old)to respond to 21st century demands for more intuitive functionality.Moving to a biweekly pay in May 2017 to address multiple needed outcomes— second step in improving the Payroll Operation. E invoicing,E procurement,financials are in the planning • Risk Management Fund–Current liabilities exceed$30M,with $8.4M in assets,with goal to be at 70%or$21M.Continuing to build a safety culture and implement changes in medical costs authorized by the 2016 General Assembly Mayor Sessoms thanked Ms. Phillips and the entire Team for their work. April 26, 2016 -20- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION GENERAL REGISTRAR 5:21 P.M. Mayor Sessoms welcomed Donna Patterson, General Registrar. Ms. Patterson expressed her appreciation to City Council for their continued support:1",%,'.', ,11 S4,-0. H. h _ Rv General Registrar Budget Workshop April 26, 2016 Donna Patterson The Department's Operating Budget increased 48.63%from FY2015-16:: General Registrar's Operating Budget Program Unit FY 15-16 FY 15-16 FY 16-17 FY 16-17 Change FY 16 Amended FTE ! Proposed FIE I Amended to FY 17 Proposed Voter Registration and $1,282,285 11.86 $ 1,905,803 12 $623,518 48.63% Elections Total $1,282,285 11.86 $1,905,803 12 $623,518 48.63% April 26, 2016 -21- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION GENERAL REGISTRAR (Continued) 95.6%of the Department's Budget is from the General Fund with 58.32%expenditures for Personnel: FY 2016-17 Budget $76,954, 4.04% *OM Revenue $1,819,1ss, ■State is General Fund Budget by Expense Category MI* ■Personnel ■Operations Below are the Department's Significant Issues: General Registrar Significant Issues ➢ Request that our part-time position be made full-time ➢ Provide more efficient customer service ➢ Provide more comprehensive voter outreach ➢ Building CIP for FY2017—2022 > Requesting a new building or modifications to existing building > Insufficient space in Building 14 and warehouse April26, 2016 -22- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION GENERAL REGISTRAR (Continued) Conclusions ➢ Presidential Election Year ➢ Increase in voter registration ➢ Increase in absentee voting ➢ Increase in ballot printing ➢ Increase in Election Day turnout ➢ Additional space requested for 2016 ➢ On-going Improvements ➢ Purchase additional laptops for use as electronic pollbooks ➢ Replace aging look-up devices with tablets ➢ Leasing/renting additional ballot scanners Mayor Sessoms expressed his appreciation to Ms. Patterson and the entire Department for a job well done. April 26, 2016 -23- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QULIATY ORGANIZATION HUMAN RESOURCES 5:25 P.M. Mayor Sessoms welcomed Patricia Greer, Acting Director—Human Resources. Ms. Greer expressed her appreciation to City Council for their continued support: 4 �r Y,, G t. 0``tiv„..7, Human Resources Budget Workshop April 26, 2016 Patricia D. Greer Acting Director of Human Resources The Department's Operating Budget decreased 1.13%from FY2015-16: Human Resources Operating Budget Change FY 15-16 FY 15-16 FY 16-17 FY 16-17 FY 16 Amended to FY 17 Program Unit Amended FTE Proposed FTE Proposed Director's Office 363,912 3 380,223 3 16,311 4.48% Employee Relations 570,644 7 519,703 7 (50,941) -8.93% Staffing&Compensation 1,171,694 16 1,161,536 16 (10,158) -0.87% Learning&Development 756,336 7 752,796 7 (3,540) -0.47% HR Police Services 113,370 1 114,586 1 1,216 1.07% Member 116,451 1 115,742 1 Communications (709) 0.61% Human Rights Commission 74,668 1 62,597 1 (12,071) -16.17% Occupational Safety 248,378 3 294,404 3 46,026 18.53% Occupational Health 946,851 8 911,636 8 (35,215) -3.72% Total $4,362,304 47 $4,313,223 47 $ (49,081) •113% April 26, 2016 -24- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION HUMAN RESOURCES (Continued) 100%of the Department Budget is from the General Fund with 82%of expenditures for personnel: Human Resources FY 2016-17 Budget by Expense Category $757,261 11111111111111. Personnel Operating Below are a few of the Department's Highlights: Human Resources Highlights ➢Strategic Workforce and Employment Plan ➢Employee Development: ➢New Supervisors' Boot Camp ➢Citywide Mentoring Program ➢Tuition Reimbursement: $250,000 April 26, 2016 -25- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION HUMAN RESOURCES (Continued) Human Resources Highlights >Taleo/Oracle(3 Modules) >Taleo Learn ➢iRecruit ➢Onboarding Below are the Department's Significant Issues: Human Resources Significant Issues:Current and Upcoming ➢Personnel Board Hearings >Increase in Requests for Safety Training ➢Retirement Eligibility Overall April26, 2016 -26- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION HUMAN RESOURCES (Continued) Compensation Proposal FY16-17 ➢All Full-time City employees ➢ July 1,2016-1%VRS Employee Contribution Offset ➢ January 1,2017 1%Merit Increase ➢All Full-time and Part-time ➢ 1.34%General increase July 1,2016 ➢Address Salary Compression Thank You • Mayor Sessoms thanked Ms. Greer and the entire Team for their work. April 26, 2016 -27- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY ATTORNEY 5:37P.M. Mayor Sessoms introduced and welcomed Mark Stiles, City Attorney. Mr. Stiles expressed his appreciation to City Council for their continued support: coU�� CT City Attorney Budget Workshop April 26, 2016 Mark D. Stiles The Department's Operating Budget increased 0.42%from FY2015-16: City Attorney $Change %Change I FY 16 FY 16 FY 15-16 FY 15-16 FY 16-17 FY 16-17 Amended Adjusted Program Unit Amended FTE Proposed FTE to FY 17 to FY 17 Proposed Proposed Legal Services $4,084,743 39.61 $4,067,393 40.61 -$17,350 Total $4,084,743 39.61 $4,067,393 40.61 -$17,350 -0.42% 4.6% 1 95.4% 0 Personnel O Operations April26, 2016 -28- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY ATTORNEY (Continued) City Attorney • 22 full-time and 1 part-time attorneys supported by 16 professional staff • Divided into five functional sections: s,w "' Real Estate;Litigation;Policy and $in s32oAdministration;Land Use;and Public Education • Represent and provide legal advice and services to all City departments,boards, commissions,employees and volunteers 6, • Provided or managed 41,154 legal 5100 5109s' - service hours in FY15 • 98%of legal services provided in-house `"" "13 "'° `"" at an average cost of$109 per hour • The average cost of all legal services provided was$114 per hour Below are the Department's Trends and Issues: Trends and Issues ' Budget essentially flat,slight reduction due to salary and benefit cost savings resulting from routine personnel turnover(retirement,etc.) ✓ Social Services Realigned attorney staffing to provide additional support in social services cases. No budget impact. • Freedom of Information Act Office Number and scope of FOIA requests continue to increase. Have investigated available software suite suitable for Citywide deployment would substantially enhance response efficiency first year cost of$37,200 and annual cost of$33,500 thereafter cost information was not available at time of budget submission and this item is not included in City Manager's budget • Public Education Proposing to add third full-time attorney under Cooperative Agreement to meet school division needs. No City budget impact paid in full by School Board. Authorization of additional FTE required. • For a more detailed discussion of the City Attorney's Office FY 2014-2015 performance,trends and achievements,see the 2015 Annual Report on the City Attorney Page at www.vbgov.com. April 26, 2016 -29- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY ATTORNEY (Continued) Below are a few of the Department's Accomplishments: City Attorney FY 2014-15 Accomplishments Freedom of Information Act:Responded to more than 400 requests,provided copies of more than 60,000 pages of documents and more than 120 audio files,and facilitated the inspection of thousands of additional records. ▪ Conflicts,Contracts,and Ordinances and Resolutions:Analyzed more than 100 potential or actual conflicts of interests and provided written opinions and disclosure or abstention letters; reviewed more than 520 goods and services contracts for legal sufficiency;prepared over 200 ordinances and resolutions adopted by City Council. • Light Rail:Advised City Council and the task force,assisted with contract negotiations, and drafted the resolution to select the Locally Preferred Alternative for the City's Transit Extension Project. • ViBe Creative District Ordinance:Drafted the ordinance establishing the City's First Creative District. Also drafted an associated ordinance establishing"live-work"units as by-right uses in the City's Oceanfront Resort District. City Attorney FY 2014-15 Accomplishments(cont.) Arena:Worked with outside counsel and City staff,drafted the term sheet and transactional documents approved by Council for the private construction of an 18,000 seat sports and entertainment arena adjacent to the Convention Center. Neighborhood Dredging:Provided legal support for neighborhood navigational dredging projects and the establishment of related special service districts in several waterfront neighborhoods throughout the City. Beach Ownership Issues:Concluded final two cases establishing public's right to use and maintain Cape Henry Beach and filed suit to confirm same rights along Chesapeake Beach. ➢ Support for Human Services Mission:Concluded 310 child abuse and neglect cases,14 child protective services case and 40 adult protective services cases. • Public Education:Resolved four U.S Department of Education,Office of Civil Rights complaints and seven Virginia Department of Education discrimination complaints; reviewed 641 education related goods and services contracts and seven construction contracts;drafted a new Life Threatening Allergies Handbook and Training Protocols. Mayor Sessoms thanked Mr. Stiles and the entire Team for their work. April 26, 2016 -30- CITY MANAGER'S BRIEFINGS FY2016-201 7 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION BUDGET and MANAGEMENT SERVICES/ NON-DEPARTMENTAL 5:43 P.M. Mayor Sessoms requested City Council provide any questions to Ms. Whitesell due to the time constraints: 0. I-- -iNi) Budget and Management Services/Non-Departmental Budget Workshop April 26, 2016 Catheryn Whitesell Budget and Management Services Operating Budget Program Unit FY 15-16 FY 15- FY 16-17 FY 16- Change FY 16 Amended 16 FTE Proposed 17 FTE Amended to FY 17 I Proposed Budget and Management $1,576,592 15.0 $ 1,600,325 15.0 $ 23,733 1.5% Services April26, 2016 -3 1- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION BUDGET and MANAGEMENT SERVICES/ NON-DEPARTMENTAL (Continued) Regional Participation Organizations FY 2016-17 Organizations FY 2016-17 American Red Cross $10,000 Southeast 4-H $6,036 Court Appoint Special $48,000 Southeastern Tidewater $27,603 Advocate Builders Alliance Eastern Virginia Medical $441,694 Square One $53,000 School $400,000 Hampton Roads Chamber of $8,500 Tidewater Builders Alliance $63,000 Commerce Hampton Roads Economic $428,431 Tidewater Community $5,100 Development Alliance College Hampton Roads Military& $225,836 Virginia Arts Festival $260,000 Federal Facilities Alliance HRPDC-Membership $361,338 Virginia Beach SPCA $30,000 HRPDC-MMRS $90,334 Virginians for High Speed Rail $10,000 Navy League $21,250 Virginia Offshore Wind $5,000 Coalition Virginia Dare Soil&Water $8,000 Virginia Symphony $25,000 Conservation District USO Wounded Warrior Week $20,000 Vibes Board $15,000 Total$2,121,428 Community Organization Grant Allocation Organizations FY 2015-16 Organizations FY 2015-16 AidNow $2,500 Mother Seton House/Seton $15,000 Youth Shelters Beach Health Clinic $47,500 Samaritan House,Inc. $31,500 Cancer Care Foundation of $4,250 Senior Services of $55,000 Tidewater Southeastern Virginia Children's Health Investment $5,700 The Foodbank of $60,000 Program Southeastern Virginia Children's Hospital of the $25,000 Together We Can Foundation $15,000 King's Daughters,Inc. Endependence Center,Inc. $26,332 Virginia Beach Community $10,250 Development Corp. Judeo-Christian Outreach $50,000 Volunteers of America 41,094 Chesapeake,Inc. Legal Aid Society of Eastern $20,000 Virginia Total$409,126 Me Fr 201017 proposed budget hos recommended an increase of$90,874 fora total of$500,000. April 26, 2016 -32- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION BUDGET and MANAGEMENT SERVICES/ NON-DEPARTMENTAL (Continued) Revenue Reimbursement Tax Relief for the Elderly Veteran's Tax Relief $10,277,622 $3,599,695 • Funded an additional$637,000 in FY 2016-17 to address increased demand from qualified Veterans as well as overall property appreciation Reserve for Contingencies Purpose Amount Compensation $8,761,795 Regular $5,033,938 State Budget Reconciliation $1,000,000 Compression $2,100,000 Bi-Weekly Payroll Conversation $1,200,000 Energy Fuel $600,000 Health Insurance Reserve ($1,660,481) Neighborhood Dredging $810,000 Replacement of Totaled Vehicles $225,000 Future CIP Commitments $21,360,855 Future Commitments $40,972 Future Capital Projects $8,237,346 Parking Maintenance Reserve $29,497 Total $47,738,922 April 26, 2016 -33- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION BUDGET and MANAGEMENT SERVICES/ NON-DEPARTMENTAL (Continued) Debt Service Fund Name FY 2015-16 FY 2016-17 %Change General $49,682,686 $50,486,171 1.6% School Operating $45,224,509 $46,289,542 2.4% Parks&Recreation $3,774,676 $4,673,630 23.8% Tourism Investment Program $24,071,789 $22,795,037 -5.3% Agricultural Reserve Program $3,089,564 $3,972,051 28.6% Central Business District South TIF $7,649,568 $7,786,521 1.8% Open Space SRF $2,571,781 $2,582,588 0.4% Water and Sewer Enterprise $24,803,483 $24,809,333 0.0% Parking Enterprise $688,054 $672,373 -2.3% Storm Water Utility Enterprise $3,398,368 $3,397,182 0.0% Total 164,954,478 167,464,428 1.5% Questions April 26, 2016 -34- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY MANAGER 5:43 P.M. Mayor Sessoms requested City Council provide any questions to Ms. Whitesell due to the time constraints: City of Virginia Beach 1,fi3 City Manager's Office Budget Workshop April 26, 2016 David L. Hansen City Manager City Manager's Office Operating Budget Program Unit FY 15-16 FY 15-16 ' FY 16-17 FY 16-17 Change FY 16 Amended FTE Proposed FTE Amended to FY 17 I Proposed City Manager's 1,933,606 12.0 2,171,424 14.0 237,818 12.3% Office Organization Development 293,503 3.0 273,639 3.0 Office Office of Volunteer 214,765 2.5 209,111 2.5 Resources Communications Office 1,476,246 16.5 1,503,426 16.5 27,180 1.8% Total 3,918,120 34.0 $4,157,600 36.0 $239,480 6.1% V April 26, 2016 -35- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY MANAGER (Continued) City Manager's Office FY 2016-17 Budget $251,434_ $2,628 6.0% 0.1% $3,903,538 93.9% e Personnel ❑Operations ■Capital Total Budget:$4,157,600 City Manager's Office Significant Issues City Manager's Office - New Deputy City Manager and Executive Assistant III position to provide oversight to public safety department's Office of Volunteer Resources — Continue to work with department's and the community to facilitate the use of this valuable resource — Collaborate in developing a community driven revitalization strategy V3 April 26, 2016 -36- CITY MANAGER'S BRIEFINGS FY2016-2017 RESOURCE MANAGEMENT PLAN(BUDGET) QUALITY ORGANIZATION CITY MANAGER (Continued) City Manager's Office Significant Issues ➢Organization Development Office — Strategic Planning — Support to Organizational Leaders — Change Management ➢Communications Office — Strategic Communications Plan Implementation — Establish live broadcast capability from the Virginia Beach Convention Center. J April 26, 2016 -37- CITY MANAGER'S BRIEFINGS VERTICAL COMPRESSION 5:44P.M. Mayor Sessoms welcomed Regina Hilliard, Interim Deputy City Manager. Ms. Hilliard expressed her appreciation to City Council for their continued support: SALARY COMPRESSION ;? When speaking of salary compression, it is important to specify if it is horizontal or vertical salary compression: SALARY COMPRESSION • Horizontal Salary Compression: less senior employees having the same or similar salary as compared to more senior employees within the same title • Vertical Salary Compression:subordinates having the same or higher salary than their supervisor April26, 2016 -38- CITY MANAGER'S BRIEFINGS VERTICAL COMPRESSION (Continued) The City has made these efforts to address salary compression: EFFORTS TO ADDRESS • Horizontal Salary Compression • First implementation: July 1997 • Adjustments provided seven years between 1997 and 2006 • Most recent:3-year plan • Vertical Salary Compression • First implementation: July 2006/July 2007 • Most recent: July 2013 CURRENT STATE VERTICAL COMPRESSION • 93 sworn supervisors are compressed by those in lower pay levels. • Police: 34 • Fire: 40 • EMS: 10 • Sheriff: 9 • The approximate cost of addressing: $732,000 • 103 non-public safety supervisors are compressed by those directly reporting to them. • The approximate cost of addressing:$958,000 April 26, 2016 -39- CITY MANAGER'S BRIEFINGS VERTICAL COMPRESSION (Continued) These are the implementation options: IMPLEMENTATION OPTIONS • Provide full salary compression adjustments FY'17 ($1.7m) • Provide salary compression adjustments over a two- year period ($850,000 each year) • Cap salary compression adjustments (ex:$5,000 cap: $794,000) OuQ0th1 m ? Mayor Sessoms expressed his appreciation to Ms. Hilliard for all of their work on this important issue. April 26, 2016 4G1�� Ac City of Virginia B each 141. A, J \�2 0 4.fs OF ODUR j AAoNS R N VQgQv.com WILLIAM D.SESSOMS,JR. MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9000 (757)385-4581 /� FAX(757)426-5699 April 26, 2016 WSESSOMS99VBGOV.COM Members of City Council Subject: FY 2016-17 Operating Budget and Capital Improvement Program Reconciliation Dear City Council Members: After lengthy discussions with you and listening to the public input at the various public meetings, town halls, public hearings and via email, we would like to recommend adopting the Operating Budget and CIP with the following adjustments: 1. For our dedicated city and school employees, we suggest two changes from the Proposed Operating Budget: a. For school employees, leadership from both the Schools and City have developed a plan to bring school employees' pay increase up to 3.34%,which is comparable to city employees. This is possible as a result of additional funding through the City/Schools Revenue Sharing Formula($1,280,440) and additional State revenue of$1,204,913 million. b. For city employees, $850,000 is set aside to address vertical salary compression which exists when subordinates make more money than the supervisor. This is the first year of a two year phase-in. 2. Provide $665,171 for 4 career medics and 4 fire fighters with supplies and equipment to the Creeds and Blackwater areas of the city. 3. $40,000 for additional Emergency Medical Technician Training. 4. Provide $302,294 for 4 additional firefighters at the Lynnhaven Station to complete four men on a truck staffing of single apparatus stations. Reconcilia:ion of the FY 2015-16 Operating Budget and Capital Improvement Program April 26, 2015 Page 2 5. Restore city funding at FY 2016 levels for the Atlantic Waterfowl Museum ($13,033) and for the Lifesaving Museum ($14,908). 6. Restore $165,721 to maintain the hours of the City owned historic homes. (includes restoration of 2.47 FTEs) 7. Increase the funding for the Arts and Humanities Commission by $25,000 to address the increased demand for art grants through that program. 8. Restore library books and materials to its FY 2016 level ($105,651). 9. Provide $20,000 to the Parks and Recreation Foundation as a grant for the Student on the Swim program to match the School System's $20,000. 10. Provide a$50,000 grant to the Feed the Kids program. 11. Provide a $75,000 feasibility study grant for the African American Cultural Center. 12. Provide a $12,000 grant to the Men of Faith Program. 13. Increase funding by $372,657 for the Planning Department to hire 2 new HVAC Inspectors with vehicles and 2 new Development Project Liaisons to help citizens and businesses navigate the development and permitting processes. 14. Create a CIP project 3-115 "Judicial Center Maintenance" to address maintenance needs of the Judicial Center supported by a $2 increase in the Courthouse Maintenance Fee assessed for each civil action filed in court($254,678). 15. Reduce the Residential Parking Fee for employees from$20 a month to $10 a month per City Council action in April (revenue decrease of $91,438) and offset the loss of revenue by lowering a parking maintenance reserve and the professional services account. 16. In addition'to the funding sources identified in specific appropriation adjustments above, the following funding sources have been identified to offset the appropriations above: a. After review of the State's estimate for this revenue as well as recent trends,we recommend increasing the estimate of General Sales by$1,513,166. b. Based on final General Assembly action, increase 599 State Aid to Localities with Police Departments by$346,031. Reconciliation of the FY 2015-16 Operating Budget and Capital Improvement Program April 26, 2015 Page 2 c. Reduce funding to the Hampton Roads Economic Development Alliance by $28,431 per the revised agreement with this agency. d. Redirect the $1 million reserve set aside to address changes as a result of the State budget mainly for final numbers associated with the City/Schools Revenue Sharing Formula. h e. Reduce General Fund Reserve for Contingencies by $824,680 and various department overtime accounts by$279,567. The details for the funding sources and the adjustments are identified on the attachment. Please note that staff is still working with Schools to determine final category adjustments based on our recommendations above. We want to thank the public who came out to the various town hall meetings and public hearings to offer their comments on the FY 2016-17 Operating Budget and CIP as well as staff for their efforts to provide answers to our various questions. If you have any questions, please contact us directly. Sincerely, 6 .L/44,_ 4./al / sskttai 6C, William D. Sessoms, Jr., Mayor Louis R. Jones, ' e Mayor Attachment CITY Revenue Appropriations 1 HREDA reduction $ (28,431) 2 Fund 4 Paramedics and 4 Firefighters at Creeds/Blackwater $ 665,171 3 Fund 4 Fire Fighters for Company 20 Little Neck $ 302,294 4 Provide 2 Permits and Inspections HVAC Inspectors(and vehicles) $ 166,287 5 Provide 2 Development Services Center Project Liasons $ 206,370 6 First of Two Years for City Vertical Compression $ 850,000 7 Restore Libraries Books and Materials $ 105,651 8 Restore Funding for Atlantic Wildfowl Museum $ 13,033 9 Restore Funding for Lifesaving Museum $ 14,908 10 Restore Operating Hours for City owned Historic Homes(2.47 FTEs) $ 165,721 11 Provide a grant for Students on the Swim to be matched by School System $ 20,000 12 Provide a grant to Feed the Kids $ 50,000 13 Provide a Grant to the African American Cultural Center $ 75,000 14 Provide a Grant to the Men of Faith Program $ 12,000 15 Increase Arts and Humanities Funding $ 25,000 16 Increased training for EMTs $ 40,000 17 Eliminate Reserve for State Budget Reconciliation $ (1,000,000) 18 Increase Estimate for General Sales $ 1,513,166 19 Increase Estimate for State 599 Funding $ 346,031 20 Transfer Final School Funding Formula $ 1,280,440 21 Increase Estimate for Courthouse Maintenance Fee by$2 per Civil Charge $ 254,678 22 Transfer Courthouse Fees to CIP 3-115 "Judicial Center Maintenance" $ 254,678 23 Residential Parking Permit Reduction ($20 to$10 a month) $ (91,438) 24 Reduce Parking Maintenace Reserve($29,497)and Professional Services($61,941) $ (91,438) 25 Reduce General Fund Reserves for Contingencies to FY 2016 level of funding $ (824,680) 26 Reduce Overtime $ (279,567) Total Change in City Budget $ 2,022,437 $ 2,022,437 SCHOOLS Revenue Appropriations 26 Schools-Transfer from School Funding Formula $ 1,280,440 27 Increase Compensation to 3.34% $ 2,485,353 28 Increase State Revenue $ 1,204,913 29 Fund Balance School Textbook Fund $ 776 30 Increase Appropriations School Textbook Fund $ 776 Total Change in Schools Budget $ 2,486,129 $ 2,486,129 -41- ADJOURNMENT Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 5:55 P.M. Aman7 in'e 1 :• es,MMC Chief Deputy City Clerk Hodges Fraser, MMC City Clerk April 26, 2016