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HomeMy WebLinkAbout06-12-2018 WORKSHOP MINUTES ate. -attl *Cit- o�ywn 9 Gp OUR MI'n° VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia June 12, 2018 Mayor Louis R. Jones called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, June 12, 2018, at 4:00 P.M Council Members Present: M Benjamin Davenport, Robert M Dyer, Barbara M Henley, Mayor Louis R.Jones, Shannon DS Kane, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: Jessica P.Abbott Sick John D. Moss Out of Town—Navy Business 2 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE 4:00 P.M. Mayor Jones welcomed Dustin Rinehart, Director — State and Local Government Affairs, Port of Virginia. Mr. Rinehart expressed his appreciation to City Council for their continued support: Port ofVirginia Update Virginia Beach City Council Update June 8,2018 VIRGINIA A sr«wm dr w This map shows all of the Terminals in Virginia: OUR TERMINALS •• MARYLAND tl � rm.., • WEST VIRGINIA _ _+ E 1 DE . .. ..s..awy .Aal'� vw KENTUCKY a1 VIRGINIA[� •-` ....a.,, �•KichApKl VIRGINIA 2 June 12, 2018 3 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) Here is the Port of Virginia's Mission. Port ofVirginia's Mission Guided by our company values,The Port of Virginia will achieve our shared vision of operational excellence,fiscal responsibility, and sustainable growth. Above all,we will remain responsible members of the ,4— . communities we serve,a valuable resource ff to our customers,an excellent place to work, and an economic engine for the ,* region. ', , r R� A C.IMI PORI Of siawama d r��a,�w •,-VIRGINIA The size of ships increased 69%in the past five (5)years: Vie lase a hhtoly of wdcoanp bio ships A 69%increase in size in under five years. a w I2014:8,500TEUs ,pan r :2015:9,000 TEUs 2016: 10,500 TEUs Milili:=4111. ''... 2017(May):13,098 TEUs ,,l•.. 'I 2017(July): 13,300TEUs 2017(Aug):14,400TEUs 38I01N,.'9(Gw(q( June 12, 2018 4 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA- UPDATE (Continued) The next several slides detail the 2018-19 planned improvements as a result of a $320-Million investment: THE NEW NORMAL 90%OF CARGO at THE PORT OFVIRGINIA is CARRIED BY THREE ALLIANCE ' 1 L t_ GROUPS R.. \s. ' •• 1 IHE PORI OF sra.,,,n:,,,,,b„ow 5 -VIRGINIA The improvements will increase the Port's capacity to over 1-million containers: VIRGINIA INTERN01NAL GATEWAY -,yam,- - '- .. Increases cap..R'' ;:,,,,,,:•4 '` .A,.- s Expanded rail operation .s+.; _/ .- FG Extended berth t ,.. 4.,3,2a. :... 4 new Ship to Shore cranes ;44, CIHi PORI OF I ''''"", '''''',ow �'-VIRGINIA June 12, 2018 5 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) Here is an Overview of the NIT South Expansion: NIT SOUTH EXPANSIOT' • ` • Increase capacity by 0 c 40CF,005ntainers "• - 1►r 2018:first stacks complete Ott 202,0:all 30 stacks complete s +1.e1,;' 350 million investment eVIRGINIA I f s'""°'dT 7 Here is an Overview of the four(4)phases of the project: A MINDFUL APPROACH �• /• 4081-410 �.� ._:'74a�. - • PHASE 1B _ -•. • Ot: PHASEIA .. J : - --�f a•'•"�r„•+`� s • �=�.. Allp THE PORT Of I se.a�as oir Tanana.,VIRGINIA 8 June 12, 2018 6 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) The 40%increase of containers, results in 286,000 new jobs across the state: I ,000,000 ADb TIO t„AL C ONTAI S 4 6 • • . SE)' Or•i 1.4,1A4)44: I • * T Azo a. t•. Alf rt4' 286,000 NEW JOBS ACROSS THE STATE ,- r a ,� $38 BILLION IN SPENDING NIP $1.I BILLION IN NEW STATE&LOCAL TAXES 4,6, > ,/ NI/IAI IF I Source£ ,.0 Impacts mm pef Veg.Mee industry 2013 Raymond A Mason School of Business WWII am&Mary WI VIRGINIAsrmwda dr o,. 9 The timeline below shows the progressive increase to 1-Million containers: 3 yeas To tooals.One mllioa coitus. We are budding the capacity for greatness.Every day. Apr 18 May 18 Jun 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec18 Jan 19 Feb 19 Apr 19 1111711'171111(11,11,7,11,11M, P'uerA0d1 VIG VIG VIG NIT VIG VIG NIT NIT VIG II6aw1kIt 0116 Stacks Rail Stacks Stacks Wharf Stacks Stacks Stacks Rail 24-26 Bundle 18-20 7-9 Done 10-12 13-15 16-18 Bundle &1a' #1 VIG #2 CRMG &VIG Stack VIG Stacks 1 STS 21-23 online NIT NIT NIT NIT NIT Stacks Stacks Stacks Stacks Stacks 22-27 28-30 19-21 1-3 4-6 =alaiminmSep/Oct 19Dec 19 Jan 20 Apr 20 May 20 imiimminsim June 12, 2018 7 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE • (Continued) Here is an Overview of the Port of Virginia's impact on the economy: HOW WE'RE MOVING THE ECONOMY 62% 1.34 million containers for Fiscal Year to Dace 2018 35% N n '1- 012 M �n os. 17% 111111 o co v v 3%oclio Volumes are Vessel calls are 7 up 3.9% n down 5.3% over FYTD 2017over FYTD 2017 Truck Rail Barge RMT Barge +6.6%over -0.7%over +5.4%over Wean mowed FYTD 2017 FYTD 2017 FYTD 2017 almost 23'000 cm rs this 11 yrzr. We are the East Coast's leading rail port 121%growth over market growth in Fiscal Year 2017 laual4I8l , WE ARE THE EAST COA •BAL GAT:• 56,650 containers - •1� MaYGfnitl 25.650 containers ..11111.11111.11111 k VIRGINIA 12 June 12, 2018 8 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) Here are the locations the Port of Virginia reaches by rail: QUICK ACCESS BY RAIL /� YIR6NU 1 s*"""""-- 13 Here is an Overview of the Port of Virginia's impact on commerce this Fiscal Year: r We are Catalysts for Commerce rklnk together to drive Virginia's Economy:FiscalYear-to-Date 2018 • .. 47 m Businesses jet Morethan � announced they �y�^ ��� � , "S were locating or , �t � }x '-��`' '�` expanding theft y._ - Q ' business in Vii gin;a. - K' .pp . jobs `P 1.3 Rr +y'r- '' ka ; s 2.4 lobs created I billion million across Vugnaa •:. vested act nss tAe sq ft eu�, nnweatu kit June 12, 2018 9 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA- UPDATE (Continued) Forty-seven (47) businesses either located or expanded since July 1, 2017, as a result of the Port's growth: WE ARE SPARKING GROWTH ACROSS THE COMMONWEALTH 0 New business announcement O Existing business expansion Ifo • 47 businesses either located or expanded their �� 0 business in Virginia since July 1,2017 •v• A reinvigorated Richmond APO AI r Marine Terminal is helping •Ir O •1 spark growth v • •O 12 SWVirginia's port users %Or ID- 4014 expanded this year. If As or Fr 11io.ieie 1y1�[�IIIyI 11116 ri. r 14 Global Technical Systems is one of many businesses increasing due to the growth of The Port of Virginia: Virginia Beach Global lechnicalnew, Systemselectro-mechanical is investingenergy$54sto.7rage millionsystein ma manufacturing operation-creating 1.110 new jobs 4,4 r . ` • 4t, .r.3 .Ill roily yignNu June 12, 2018 10 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) Here are the City's Top 10 Port Users: City's Top 10 Port Users Company STIHL Inc • Total$837,502,500 of cargo Haynes Furniture OHL NEXCOM • 163,528 tons of cargo flowing Hermes Abrasives to/from the City ofVirginia Beach Pinnacle International Freight Capitol Foundry ofVirginia through the port Haulotte US TTS Worldwide American Borate Y IRGINIA fI S'••""dT 17 Mr. Rinehart explained the opportunity for Grants to be awarded for future projects and encouraged the City to submit requests: lot Nos " 1111 _-_-�— R-�-fi=r , - p.THE VIRGINIA I Stewards dTamar 18 June 12, 2018 11 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA- UPDATE (Continued) Here are a few of the City's Organizations supported by the Port of Virginia: STEWARDS OF TOMORROW oa Communities VBIFH l In Schools 00EFfsfikiti - c ) c *Jf' * Z s * *1 licr SitiCE 191's 1. - � VIRGINIA AQUARIUM Val I -"m-- The Port's Mobile Unit assisted during College Beach Weekend: Vie ore there when our rommunity needs us the most Z', 1Nf POAIoi i O$ ' r* tw Our Marine Incident Response Team(MIRT) From coordinating dive team, creatgng and strateginlly placing disaster recovery bailers.to our routine pail iupauon nreglonsaI commrttees.MIRT's 24-7-365 mission is helping to supplement the area's Is responders•gnat antes contmuny of open t,aia and olkv the kind d insight necersary to keep the port and art comm��005 sate and sustauublr. Ixtvoalor 51„�rdselTnn,�nw '-YIRGINII I 20 June 12, 2018 12 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA — UPDATE (Continued) INVESTING IN THE FUTURE _.A! __ �� Y^ '.,��..S.:b•:-tea sf. _ 6i�_�r 9�'_+a. INE PORI OF sYewa,e2 oTr,...c. VIRGINIA 2/ Here are the East Coast Port Depths: EAST COAST PORT DEPTHS WON so'eeepe��.g mmpl«e��Sepeember 2016 5 �- 1110New York/Newt S2 1B i./roeto(roughly sexl<a<.aue6x ea tom„na.q Jersey Bahe o9 tl 5' 2t _ 50/50 SI lB tool mot --' �Bakimpre 50/50 COMPLETE Charleston •The Port of Virginia 52 mYaWaY WM 2016 ( I 50155 •sewn.a+ma($22m w..,rszn5n lei) as 1ppnnpire 202 rr..+ .a$port..d$3 SIP 201 iW.dee a IlSaCE FYI)won,.6x mnw.cew •Cmm.mnn m B.0* mw uGY pr Savennell ` -•Charleston 45/52 4T..nra.e In WARM 2012 -W pp prao.a$20224 d<wtn bon0,<� �•Savannah 42147• 0.e.rw,00(00n.v..mne.p.S2010..d.ar.ba m,a,sn.c.e Jacksonville 40/47 name sa meals mrnpon Y Snpmnl.r 2015 -$2200,mol ma($1120,FU61a Morn Dade( R weer$n laderY pp Miami 50/50 glip THE VIRGINIA ( Stewards dT 20.aw 22 June 12, 2018 13 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) The Channel improvements will reduce the impact to US Navy operations due to congestion-related channel closures and allow two-way traffic: NO' 1•1_ _,-ARBOR DEEPENING &WID G(' !r: -' . 00 55.. .iir.... / T S, iii . , •OSx 3 %.,,,, COCA sr.saamr o.o,. 23 There is a pilot program which pumps the dredged sand back on the beach which will help reduce costs: Investing in Virginia Beach III ' _ Beneficial Sediment Reuse _ i g, 1 1 ,..14 ift • a ` VIRGINIA 24 June 12, 2018 14 CITY COUNCIL'S BRIEFINGS PORT OF VIRGINIA - UPDATE (Continued) Here is an Overview of the Future Craney Island Marine Terminal: FUTURE CRANEY ISLAND MARINE TERMINAL .� ems • 522 acre state-of-the-art terminal , `. • 8,400 ft of wharf;7 berths ' • 28 Suez class container cranes • On-dock intermodal rail access by CSX&NS • 5 Million TEU Capacity IWIRT Of I s7•wam dr o. VIRGINIA Irk. - fillk IKEP : EACL AR 4111 - YIR` PATH FORWARD l IVIERGINIAPORE OE s''''''''..ra,dr Mayor Jones expressed his appreciation to Mr. Rinehart for the informative presentation. June 12, 2018 15 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE 4:22 P.M. Mayor Jones welcomed Bill Gambrell, Chairman — Historic Preservation Commission. Mr. Gambrel! expressed his appreciation to the City Council for their continued support. Oil Virginia Beach Y Historic Preservation Commission City Council Update Bill Gambrell, Chair June 12, 2018 Here is an Overview of the Commission: Historic Preservation Commission Overview Commission — Active and Productive J • Last Report to Council was in September 2016 • Appreciate continued support for Historic Preservation especially Council Liaison RosemaryWilson • Barry Frankenfield and Planning Department very supportive • FT Historic Preservation Planner position funded FY18 • • Commission has focused on advocacy,raising awareness and encouraging public participation June 12, 2018 16 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) Public Meeting attendance doubled between 2017 and 2018: Public Meetings and Publicity • Commission held Public Meetings in 2017 and 2018 • 65 persons attended in 2017 • 110 persons attended in 2018 • Publicity • Planning Department staff develops news releases 3_*. • Newspaper and TV media have run numerous stories related to research grant projects;local state and national registers; ' historic markers and more. Nineteen (19) Grants were awarded totaling$31,640 during FY 2016-2018: Research Grant Program • City Council supported initiative • 19 grants totaling$31,640 awarded FY16—FY18 • Ground-breaking research,especially regarding the history of our African-American communities VIM r • Awards include 6 state highway markers,local history curriculum development,numerous research papers,oral history interviews,and website and video development covering a diverse range of topics June 12, 2018 17 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) The Courthouse Village and Municipal Center were added to the National Register of Historical Places: Virginia Landmarks Register National Register of Historic Places • Two National Register Historic Districts- Honorary Recognition Ail tab- • Oceana Neighborhood(September 2017)-the city's first residential National Register historic —isimiEgigi ` district - i,- • Courthouse Village&Municipal Center-currently pending placement on the National Register Iii - • One Preliminary Information Form Submitted jc to determine eligibility Vivo n \ • Cavalier Shores Neighborhood(December 2017)- `.. .d determined to be eligible for listing;Nomination project underway. Nineteen (19) new properties have been added to the Virginia Beach Historical Register since 2016: Virginia Beach Historical Register 19 Properties added since Sept. 2016 74 now listed • Whitehurst-Buffington House • Ewell Farmhouse 813 Simpkins Lane _,�-_,.. • 216 Cavalier Drive • Jefferson Manor Motel 3300 Pacific Ave.• 429 26th Street • 318 27th Street 4_iii- - • 13 National Register properties ifir,,,, Commission pursued an initiative to add all NRHP properties and we have achieved 100% June 12, 2018 18 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) Here are the current and planned State Historic Highway Markers: Historic Markers Ko®N State Historic Highway Markers TROROW�OOD JR. " Dedicated in 2017 • Col.John Thorowgood Jr. e_ "` • Cape Henry Railroads Funded by 2016 Research Grants Planned Dedications in 2018 • Skirmish at Kemps Landing • Camp Ashby POW Camp • Meeting of the Three Commanders . - - Funded by 2017 Research Grants Here is an Overview of how students are selected for recommendation to the Historical Preservation Committee: Student Members Student Involvement Growing " 2017/18 ' • 10 Students Interviewed V • 2 Appointments by Council • Student Leaders Committee established ca ' Met w/Gov.Northam and legislators Made local entries for Clio app • Led activities at Strawberry Festival booth 2018/19 • 7 Students Interviewed for the 2 appointments June 12, 2018 19 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) Here is the basis for the Historic Preservation Program: Certified Local Government (CLG) Basis for our Historic Preservation Program • Planning Dept.takes the lead to meet requirements • Two new Historic and Cultural Districts established (first since 1996) • Historic Resources surveys are underway—Planning staff received $18,700 grant for one of them Honoring Our Heritage _ - • Native American Heritage Month 2015, 2016 and 2017 t • • African American Heritage Month 2018 June 12, 2018 20 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) Here is an Overview of the Commission's work on the Cavalier Hotel: Cavalier Hotel • HPC Cavalier Hotel Task Force assisted with incentive development • City holds Preservation and Green Space s - easements • Listed on National Register of Historic `` _ £ 1 Places 2014 # '• • One of the largest state Historic Rehabilitation tax credit projects ever • Re-opened in March 2018 The Commission will provide recommendations to the City Council this fall regarding the Princess Anne County Confederate Monument: Princess Anne County Confederate Monument • Sept. 2017-HPC received public comment • Dec. 2017- HPC formed Princess Anne County Confederate Statue Roundtable(PACCSR)formed to assist with formulating recommendations T • Jan. -May 2017-monthly PACCSR meetings held • Summer 2018-PACCSR to hold public input mtg. • Summer 2018-PACCSR to craft recommendations for HPC • Fall 2018-HPC to provide recommendations to City Council June 12, 2018 21 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) The Commission has completed the Princess Anne County Courthouse Historical Structure Report and recommends this report be accepted as a general guide for future maintenance and repairs: Princess Anne County Courthouse Historic Structure Report -µms ?• i,__ #tl• Commission requested funds in FY16 .i _u l i ( • Commonwealth Architects performed the study - Y • Know more about the building than ever before • Has changed significantly over time ' • Structurally stable • HPC recommends that this report be accepted as a r general guide for future maintenance and repairs I-1I Here are the Projects for 2018-2019: Projects For 2018/2019 Cape Henry Historic Site • Lighthouse restoration project • 100th consecutive annual observance of the First Landing National Register Nominations • CompleteCavalier Shores nomination 4# • Develop recognition signage for historic districts City Council • ConfederateCavaliMonument Recommendations Research Grants • Accept Completed FY17 and FY18 projects • Award FY19 project grants June 12, 2018 22 CITY COUNCIL'S BRIEFINGS HISTORIC PRESERVATION COMMISSION- UPDATE (Continued) Projects For 2018/2019 Complete CLG Initial Historic and Cultural District Standards and Requirements Guidelines • Coordinate with City architect and property owners ••• • Produce draft document �4 - City-wide Resource Surveys # • Complete Archaeological Assessment(northern half) D _ • Complete Reconnaissance Level Architectural Survey rvsi Update(northern half) —I • Initiate Archaeological and Architectural studies in city's southern half Update Historic Resources Management Plan • Hold public input sessions and produce draft document Questions? r '1 ' kms / s}'r ...k.,710177:, rosi ot .:. _.mss• 0 Mayor Jones expressed his appreciation to Mr. Gambrell for the informative presentation and to everyone on the Commission for their hard work and dedication to the City. June 12, 2018 23 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS 4:52 P.M. Mayor Jones welcomed Lyndon Remias, City Auditor. Mr. Remias expressed his appreciation to the City Council for their continued support: Audit of the Marketing and Sale of City Real Estate -_ Presentation to City Council Tuesday,June 12,2018 Lyndon S.Remias,City Auditor Here is the Purpose and Scope of the Audit: Purpose and Scope The purpose of the audit was to determine compliance with City policies and proper conduct over the marketing and sale of residential real estate acquired by the City under the Accident Potential Zone-One(APZ-1)/Clear Zone (CZ)Program. The scope of the audit covered marketing and sale of the residential real estate acquired by the City from 2008 through April 6,2018. June 12, 2018 24 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) The Objectives of the Audit are outlined below: Objectives vsto - The objectives of the audit were to determine whether 4413. the: City real estate acquired through the Base Realignment and Closure(BRAC)Program were properly disposed according to City Council and management's decisions. City real estate sales were adequately marketed to ensure that interested parties were given equal opportunity to participate. Bid proposals were adequately safeguarded to ensure the confidentiality and integrity of the process. Bidder selection process was properly performed to ensure the absence of preferential treatment to any party. City sold real estate at prices that were reasonable and provided the best value for taxpayers. Here is the Background of the 2005 BRAC Commission: Background -In response to the 2005 BRAC Commission's condition to remove Naval Air Station(NAS) Oceana from the list of base "r- closures,City Council adopted T�r_ theAPZ-t/CZ Program(BRAC Program),a comprehensive plan {' to stop additional encroachment P • - and reduce existing encroachment around NAS -Oceana. The City deemed this program more effective and fair to - affected property owners than _ invoking the power of eminent domain to condemn houses and other incompatible uses. •uni ion converted o a Nei June 12, 2018 25 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) The table below shows the Navy's land use recommendations for new development within the CZ and APZ-1 areas: The table below shows the Navy's recommended land use compatibility for new development within the CZ and APZ-1 ar Table 1•Air Installations Compatibility Use Zones Land Use Compatibility in Accident Potential Zones-Residential ';. a APL-1 • Single-family dwellings No No Semidetached dwellings No No Attached dwellings Ho No Attached dwellings/townhouses No No Multi-family dwellings No No Dormitories and other group Quarters No No Hotels end motels No No Mobile home pyla No No Other residential No No The City determined that the APZ-1/CZ Program best addressed the needs of all stakeholders(e.g.Navy,property owners)in that it reduces density while preserving the stable neighborhoods within APZ-1 for land owners that did not want to sell. This Program is made up of three (3) components: The program is made up of three components: APZ-1 Ordinance: Prohibited new development deemed incompatible with military flight operations at NAS Oceana. APZ-1 Acquisition Program:Allows the purchase of residential properties at cost that the properties would have retained if the APZ-1 Ordinance had not been adopted. Roll Back Plan: Incorporates aspects of acquisition as well as retention and disposition of properties. June 12, 2018 26 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is an Overview of the Disposition Committee: Disposition Committee The city created the disposition committee to (or . evaluate each acquired property. Whenever possible,an r ` ;:, acquired property is • ` retained for public use to I 1 , �• protect and enhance the .L�. • health,safety,welfare,and 'L i quality of life of persons ' ' , 1 L.,14112 around the neighborhoods. — The need for future roadway projects, neighborhood parks,and open space are among the Rebuilt House in APZ-1 Neighborhood factors considered when _ retaining the properties. The Chart shows how the BRAC Program reduced the number of zoned dwellings: BRAC Program Illustration aw: Certks.,,,,Obentiallyby the Oly Ord'".* 0L1-—1 —,... A M •• s+.ea.a:�a anm prt enrcd ll114. ' tl_._ tae _ ted..n.Mr ^rye - Acquisition rwo vacant pmpettks t -.<t^`I awree I y.tire yhree Mgt,units.11,.d m�ly •*Imbed ���ssssiiii Rol Back: 011e- !i/e. fslsposttirl B Rebuild Fay ram�h Acqulrcdprapertksmmbined Results. and so,as two sink-family Density It Reduced bya Net of Seven Incompatible DwelIIne'.. .._I bu,Winpsires Neighborhood Integrity Is Maintained 16 prevented and I rolibacyl June 12, 2018 27 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is an Overview of the results from the BRAC Program: BRAC Program Results Prior to the BRAC Program's implementation in 2005,there were 4,520 existing and potential incompatible residential dwelling units in the APZ-1 and CZ areas. As of the first quarter of 2018,the City was able to reduce that number by 1,292 dwelling units(net of 39 single-family rebuilds)through: APZ-1 Ordinance-909 dwelling units prevented Acquisition and Roll Back-383 dwelling units removed � x BEFORE AFTER i� \. P i 248 London Street SIN: 2407-02-1454 June 12, 2018 28 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) r ilk BEFORE AFTER I; III ii 40 London Street PIN: 2407-02-3405 BEFOREAFTER r .„:, fi r k t a 4 e :' I®.1 11.11._1 It-d -- ,_17 Reuben Street Current GRIN: 2407-02-8707 former GPINs: 2407-02-8738 & 7758 June 12, 2018 29 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is an Overview of the Request for Proposal(RFP)Process: RFP Process Public Works Real Estate receives all Request for Proposals (RFP)and compiles them for presentation to the Disposition Committee,the Special Real Estate Acquisition Disposition t (SPREAD),and the City Council. SPREAD oversees the processes for acquisition and disposition of real estate. The purpose of the SPREAD meeting is to further evaluate the proposals made by the Disposition Committee and to make sound recommendations to City — Council. The information discussed in the SPREAD meeting is subsequently presented in a formal City Council session.City Council makes the final decision as to which company or individual is awarded the contract to purchase and build on theerro P P >Y• Here is an Overview of the Finding 1: Finding 1: RFP Did Not Expressly Include. Individuals As Potential Bidders • The sale of City real estate acquired through the APZ-1 Acquisition Program for construction of single-family homes is conducted through the Request for Proposal(RFP)process. Construction of a single-family dwelling must adhere to stricter building requirements and deadlines. The RFP is worded to solicit proposals from building contractors or developers who have a Virginia Class A or B contractor license only. The wordings in the proposal inadvertently disqualifies other willing participants who do not have the requisite building license yet are willing to work with those who have them. June 12, 2018 30 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) RFP Sales for Rebuilding Single-Family Houses Number of Percentage Purchaser Properties (rounded) 1.Ocean Bay Homes/BRIBRA Building 44 50% 2.Bishard Homes 19 22% 3.Murray Homes 10 11% 4.Cashvan Homes 9 10% 5.Franciscus Homes 6 7% Tr: 6.individuals 0 0% .r Total 88 100% • e 39 net rebuilds after properties combined Here is the Recommendation for Finding 1: Recommendation - Management should revise the wording in the RFP to ensure that participation is open to all interested parties as intended in the program. June 12, 2018 31 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is an Overview of the Finding 2: Finding 2: Deficiencies In The Receipt Of Bid Proposals - Bid proposals for an active RFP usually arrive at the Public Works Real Estate Division in the final two days of the submission deadline.The designated staff member: Documents the receipt using a date-stamp machine,affixing it on the package. Solely opens the package after the submission deadline. We reviewed a sample of 10 RFPs,comprising 30 properties,and found the following: Two RFPs did not have any of the bidders'packages and proposals. Thus,we could not: Trace the bid price and other relevant information to their proposals to validate them.Management stated that the documents might not have been retained because the RFPs were beyond the document retention period. However,we deem it was not the case since other documents related to the two RFPs were still available. Verify if proposals were received within the deadline. Accepting late submissions may indicate preferential treatment and improper practices. : In one RFP,one of the four packages was opened the day before the May 30,2013 deadline;the main page was stamped May 29, 2013. wer June 12, 2018 32 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is the Recommendation for Finding 2: Recommendation Management should keep all pertinent documents related to the sate of City real estate,including date-stamped packages and proposals,until no longer necessary or according to the applicable document retention policy. Include in the Proposal Requirements section of the RFP that bidders should place their documents in a sealed envelope. If delivered without an envelope,Public Works should provide one and,as much as possible,request the bidder to place the documents inside and then seal the envelope to protect the confidentiality of the proposal. _ The designated staff member should open the package only after the submission deadline in the presence of another employee,as I, witness. Annotate the time and date of opening the package on • the main page of the proposal,accompanied by signatures from both employees. It was determined that the process was properly and appropriately conducted in accordance with City policies: Conclusion • Based on our analysis and tests of transactions for the sale and marketing of City residential real estate in the APZ-1 area acquired under the BRAC program,we determined that the process was properly and appropriately conducted in accordance with City policies. • We would like to thank the management and staff of the Department of Public Works and the City Attorney's Office for their cooperation and responsiveness to our requests during our audit as well as their receptiveness to questions, recommendations,and suggestions. June 12, 2018 33 CITY COUNCIL'S BRIEFINGS MARKETING AND SALE OF CITY REAL ESTATE—AUDIT RESULTS (Continued) Here is an excerpt from the Response to the Audit of the Marketing and Sale of City Real Estate dated May 23, 2018: Management's Response Excerpt from Response to the Audit of the Marketing and Sale of City Real Estate dated May 23,2018: "The recommendations to(1)amend the RFP language to expressly include individual applicants,and(2)modify RFP intake procedures are acceptable.These recommendations have already been incorporated to • better enhance our business practices." "We take great pride in our ability to be accountable, transparent and professional for services we provide to the City and our customers.We always welcome recommendations to improve upon them." Questions Mayor Jones expressed appreciation Mr. Remias for the informative presentation. June 12, 2018 34 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION 5:10 P.M. Mayor Jones welcomed Andrew Friedman, Director - Housing and Neighborhood Preservation. Mr. Friedman expressed his appreciation to the City Council for their continued support: \B- Neighborhood vatin FY 2018-2019 Federal Funds Briefing 6 I , ii i 0, it City Council Briefing -June 5.2018 Andrew M.Friedman Director Here is an overview of the Department's Mission: Overview The Department of Housing and Neighborhood Preservation seeks and utilizes available funding from Federal and state funding sources,along with funds provided by City Council,to achieve our mission of: .Expanding affordable housing opportunities .Promoting vibrant,well-maintained neighborhoods Making homelessness rare,brief and nonrecurring 2 June 12, 2018 35 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here is an Overview of the History and Context of Federal funding received: History and Context >Since 1974,the City has received Federal funding for housing, community development and homelessness programming. ,The State of Virginia has also provided various types of funding for these purposes City Council has provided matching,administrative and most recently,program funding,especially for homelessness The Dept.of Housing and Neighborhood Preservation has applied for,administered,and utilized funds as they have become available 3 Here are the Federal Funding Requirements: Federal Funding Requirements Administrative Use Restrictions j Funding Requirements Oversight Requirements Multi year plans Allowable uses and Deadlines for Review/approval who can benefit are commitment of plans specified Annual action plans There are not any Deadlines for Review or designated expenditure monitoring of organizations that programs and must receive funding administrative requirements Environmental The City has Use of Federal City's external review discretion in how and financial systems in auditor reviews where to use funds, addition to City one program in and who should systems depth each year receive them, consistent with regulations Reporting requirements using HUD systems a June 12, 2018 36 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here are the Sources and Allowable Uses for Federal funding: Sources and Allowable Uses Source Uses and Restrictions Limitations Community Rehabilitation of affordable housing;community 20% Development development activities in neighborhoods;public administration; Block Grants services for low income,homeless,or special needs 15%services (CDBG) persons;no ongoing income supports;generally not new construction HOME Rehabilitation or construction of affordable housing; 10% direct housing subsidies administration; 1 5%must go to a "CHDO"** Emergency Homelessness 7.5%admin Solutions Grant (ESG) Housing This is a regional grant to provide housing 3%admin;7%to Opportunities opportunities for people with AIDS or HIV;it serves project sponsor for People with people from here to James City County administration AIDS(HOPWA) **See appendix slides for more details on this Sources and Allowable Uses (2) Source Uses and Restrictions lhnhations Housing Rental subsidies to low income households; Admin fees Choice locality establishes priorities for who is served; earned per Voucher— houses must pass inspection month Section 8 Continuum of Funds programs to address homelessness that Care(CoC) are aligned with Federal priorities and the local plan State CoC Funds programs to address homelessness that are aligned with state priorities and the local plan State Rental Rental subsidies for people with disabilities Admin fees Assistance. earned per Program month 6 June 12, 2018 37 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here is an Oveview of the City's Role in Approval of Grants: City Roles in Approval of Grants Source City Manager and Council Review and Approval Steps Federal Community All funds included in department's budget Development Block Grants proposal;ordinance to authorize CM to (CDBG) submit annual plan HOME Program Emergency Solutions Grant (ESG) Housing Opportunities for People with AIDS(HOPWA) Housing Choice Voucher—aka All funds included in department's budget Section 8 proposal;ordinance to authorize CM to submit annual plan Federal Continuum of Care Funds not in city budget except for directly (CoC) grant to DHNP;all other funds go directly to non-profit organizations;city coordinates plan preparation;approval by Governing Board;submitted by City. State CoC Funds go directly to non-profit organizations; process mirrors Federal process Here is the Funding History: Funding History — 44 Year Estimate Dyer S 5 HIIIDn in funding Source 1st year 7t years Annual Average Estimated Total CDBG 1974 44 2,675,000 117,700,000 ESG 1984 34 135,000 4,590,000 HOME 1992 26 1,200,000 31,200,000 Federal CoC 1992 26 1,000,000 26,000,000 HCV 1993 25 15,000,000 375,000,000 HOPWA 1996 22 1,000,000 22,000,000 State CoC 2014 4 250,000 1,000,000 State Rental Asst. 2017 2 1,000,000 2,000,000 Total all years/all sources $579,490,000 B June 12, 2018 38 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here are some Selected Accomplishments: Selected Accomplishments Revitalization of 10 Target neighborhoods—water,sewer, streets,drainage,housing rehabilitation,code enforcement Creation of VBCDC and major support for VBCDC's 400+units Owner-occupied rehabilitation financing for hundreds of VB low income homeowners Housing stability for thousands of households Development of regional efficiency apartment buildings Ongoing homeless services and housing s This chart provides the FY18-19 Funding for the Department of Housing and Neighborhood Preservation: OHNP flow of Funding (fY IS 19) 1111 4 44 © a + + + + a "ff, 7E:7 IfFf-: 7'7" 7E1 -,-.7. - 1E37E9 141 oil R77Waif i i i + w. w. c®®0 io June 12, 2018 39 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here are the Proposed Uses of FY18-19 Funding: Funding for FY 18-19/Agenda Item Programs Appropriated Actual Award Variance CGBG 1,824,317 2,000,832 176,515 HOME 788,573 1,122,655 334,082 ESG 160,042 164,230 4,188 HOPWA 1,345,472 1,524,127 178,655 Total 4,118,404 4,811,844 693,440 Note:Included in the ordinance but not included in the above chart is $39,161 for additional vouchers for previously homeless veterans. Proposed Uses of This Year's Funding Category al Activity CUBA Home Esg HOPWA Grand total Administration and Program Management 424,166 119,765 12,317 45,723 601,971 12% Services for Homelessness 330,541 151,913 482,454 10% Rental Subsidies 195,509 195,509 4% Housing Development or Rehab 807,381 807,381 15% Owner-occupied rehabilitation 631,319 631,319 14% Code Enforcement 614,806 614,806 13% HOPWA Programs 1,478,404 1,478,404 32% Total Federal 2,000,832 1,122,655 164,230 1,524,127 4,811,844 100% 12 June 12, 2018 40 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Here is an Overview of the HOME Program and Community Housing Development Organization (CHDO): Additional Information— The HOME Program and VBCDC .The following slides provide information relevant to Council's discussion about funding going to Second Act Communities,a subsidiary of VBCDC. If HOME Program and "CHDD's" - I .The Federal HOME program was established in 1992 .Includes a provision that 15%of funds MUST go to a qualified "Community Housing Development Organization"(CHDO). .A CHDO cannot be controlled by a governmental entity(ie city council) .Therefore,in 1992/3,DHNP asked VBCDC to establish a qualifying organization .VBCDC did that and the new organization,Virginia Beach Home,Inc.started receiving these funds .That organization was the predecessor of Second Act Communities 15 June 12, 2018 41 CITY MANAGER'S BRIEFING REVIEW OF FEDERAL FUNDING RECEIVED BY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) HOME Program and "CHDO's" - 2 The HOME program does NOT require that the funds go to any specific CHDO -In 1992 there were no other qualifying CHDO's,and so VBCDC's was the only option .Today there are also two others—Habitat for Humanity and Community Alternatives We have provided funding to them in recent years because Second Act has not had projects ready to be funded In FY 18-19,the approximate amount of funding that must go to a qualified CHDO is$18o,00o(15%of$1,197,655). Is Summary of Funding for VBCDC and Second Act and Predecessors 1986 to present Activity VBCDC Home/2nd Act/SVHC Total Acq&Rehab of Scattered Site Housing $ 5,631,264 $ 3,933,043 $ 9,564,307 Administration $ 893,453 $ 140,000 $ 1,033,453 Homeownership $ 1,455,540 $ 349,603 $ 1,805,143 Rehabilitation of Rental Housing already owned $ 1,615,322 $ 1,615,322 Transition Housing for Homeless Families $ 3,005,917 $ 3,005,917 Cedar Grove for Homeless Veterans $ 455,449 $ 455,449 Blznet for Special Needs $ 770,000 $ 770,000 ESG&HMIS $ 229,812 $ 229,812 Owner-occupied rehab $ 1,140,811 $ 1,140,811 TOTAL $ 15,197,568 $ 4,422,646 $ 19,620,214 NOTE:This is based on reports filed with HUD;however,HOME funding for 1992- 1996 is missing so actual totals are higher. Numbers should be considered close but ri not exact due to multiple steps involved in compiling,categorizing and analyzing. P P P 9. 9 9 Y 9• Mayor Jones expressed his appreciation to Mr. Friedman and the entire Department for their dedication to this effort. June 12, 2018 42 ADD ON SPORTS CENTER PPEA COMPREHENSIVE AGREEMENT 5:17P.M. Mayor Jones advised at the request of City Manager Dave Hansen, this item was ADDED to the Agenda. Mr. Hansen read the letter dated June 12, 2018, regarding the Sports Center PPEA Comprehensive Agreement, a copy of which is attached hereto and made apart of these proceedings. June 12, 2018 i 0 1.11A'BEA0 E City of Virginia. Beach % k .T, `22 8 OF 0UR NAS° VBgov.com OFFICE OF THE CITY MANAGER MUNICIPAL CENTER (757)385-4242 BUILDING 1,ROOM 234 (757)427-5626 FAX 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9001 June 12,2018 The Honorable Louis R.Jones and City Council Members Subject: Sports Center PPEA Comprehensive Agreement Dear Council Members: As you know, on July 25, 2017, the City solicited conceptual proposals for a Sports Center facility in accordance with our PPEA procurement procedures. After review of the conceptual submittals, we solicited detailed proposals from each development team and ultimately selected MEB General Contractors, Inc. (MEB) to enter into an Interim Agreement approved by Council in February. The primary purpose of the Interim Agreement was to select a site, develop 15% drawings and negotiate a guaranteed maximum price(GMP) for construction of the Sports Center and associated parking. I am pleased to report that we have reached that milestone! We recommend awarding the Design- Build Comprehensive Agreement to MEB for a GMP of $57,776,725 for the building and $10,364,322 for the associated surface parking. We plan to schedule an ordinance for your consideration approving the Design-Build Comprehensive Agreement at your July 10, 2018 formal meeting. The Design-Build GMP predominately provides for the construction of the facility and any fixed assets in the building. Most of the furniture, fixtures, and specialized equipment will be provided by the Operator, and the remainder will be provided by the Convention and Visitors Bureau. We expect to negotiate those terms and a long term operating agreement with Eastern Sports Management by September. The City's PPEA procedures require that details of the terms be posted for public viewing 30 days prior to the execution of the Comprehensive Agreement. We have posted the terms today, and if approved by you on July 10th, I will be able to execute the agreement on July 12, 2018. Details of the terms have been posted to the Sports Center section of the City's Purchasing Division website including a summary of terms,the construction budget, 15% drawings and the construction schedule. DCM Williams and team will provide an updated overview of the project during the Entertainment District briefing at your June 19, 2018 meeting. Thank you for your support of this project. We are poised to create a unique,world-class sports tournament experience like no other in the United States. Res ii INk,, David L. sen City Manager a> as • o'- 11111 32 25I . N Lo tF NI I — III H I- LL1 I _NI 1. F ^i _ { l I MI . ■ r ■ ,!, . 1 u ...1 III , ,,- : _ .ili 1,_ Me , -li; r 4 , ,__ . .„ .3h i : . a ill0 U - Q N i t a ell O ___, Q x fA 1j c▪a J i, R i a3 w > W m � d '-O. N LC 0 LTJ w _ 4 .65„, 5 0LD 0 + 63 I W PPEA COMPREHENSIVE AGREEMENT FOR THE DESIGN AND CONSTRUCTION OF THE VIRGINIA BEACH SPORTS CENTER SUMMARY OF MATERIAL TERMS Parties: City of Virginia Beach ("City") MEB General Contractors, Inc. ("MEB") Project Description: MEB will design and construct an indoor sports facility of approximately 285,000 square feet for court sports and an indoor articulated track with approximately 1100 surface parking spaces to attract out-of-market tournament business for the Virginia Beach Convention and Visitors Center. Design—Build Cost: Interim Agreement $ 2,336,971 Building Construction $ 54,352,700 Owner's Building Contingency $ 1,087,054 Building Subtotal $ 57,776,725 Parking and Site Construction $ 10,161,100 Owner's Parking Contingency $ 203,222 Parking and Site Subtotal $ 10,364,322 Total Project Cost $ 68,141,047 Construction Schedule: Preliminary site work& clearing AUG 2018 Parking construction commences NOV 2018 Building construction commences DEC 2018 Final completion NOV 2020 Virginia Beach Sports Center MEB General Contractors, Inc. PPEA RFP for the City of Virginia Beach CIP 9-041 Virginia Beach Sports Center Contract#PWCN-18-0079 Cost Proposal Form- Building Summary 6/11/2018 Div/Item Description Total Comprehensive Agreement - Detail Design Phase,Architecture and Engineering 2,352,900 -Special Inspections and Material Testing 77,500 - Building Permit and Utility Tap Fees 325,100 - Bonds and Insurance 1,216,500 - Preconstruction Services 197,700 1 General Requirements 2,616,500 2 Site Construction 1,308,700 3 Concrete 4,700,800 4 Masonry 367,300 5 Metals 514,500 6 Wood and Plastics 307,900 7 Thermal and Moisture Protection 720,800 8 Doors and Windows 1,127,300 9 Finishes 4,615,500 10 Specialties 399,900 11 Equipment 6,344,800 Furnishings Allowance(FF&E to Include Concessions Tables/Chairs and 12 Trainer/Medical Room FF&E) NA 13 Pre-Engineered Metal Building 12,098,000 14 Elevator 200,100 15 Mechanical 8,729,500 16 Electrical 6,131,400 Building Subtotal 54,352,700 Owners Contingency(2%of Subtotal) 1,087,054 Building Total w/Contingency 55,439,754 Interim Agreement Total 2,336,971 Total Building 57,776,725 Cost Proposal Form- Parking Lot Summary Div/Item Description Total Comprehensive Agreement - Detail Design Phase,Architecture and Engineering 329,900 -Special Inspections and Material Testing 16,500 - Bonds and Insurance 216,100 - Preconstruction Services 87,200 1 General Requirements 481,200 2 Site Construction 8,156,900 16 Electrical 873,300 Parking Lot Subtotal 10,161,100 Owners Contingency(2%of Subtotal) 203,222 Parking Total w/Contingency 10,364,322 Total Parking Lot 10,364,322 Total Project(Building + Parking Lot) 68,141,047 43 ADJOURNMENT Mayor Louis R.Jones DECLARED the City Council Workshop ADJOURNED at 5:25 P.M. Tern e ius Chief Deputy City Clerk / Amanda Barnes,MMC Louis R.Jones City Clerk Mayor City of Virginia Beach Virginia June 12, 2018