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HomeMy WebLinkAboutAUGUST 27, 2019 SPECIAL FORMAL SESSION MINUTES 1111A•BF.q s o`4cs& °m vn'�6so�� `. �1F :.pUR HPT0 VIRGINL4 BEACH CITY COUNCIL Virginia Beach, Virginia August 27, 2019 Mayor Robert M. Dyer called to order the CITY MANAGER'S BRIEFINGS in City Council Chambers Tuesday,August 27, 2019, at 2:00 P.M Council Members Present: Jessica P.Abbott,Michael F. Berlucchi, Mayor Robert M.Dyer, Barbara M. Henley,Louis R.Jones,John D. Moss, Aaron R. Rouse, Guy K. Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None 2 CITY MANAGER'S BRIEFINGS INDEPENDENT INVESTIGATION MONTHLY UPDATE 2:00 P.M. Mayor Dyer welcomed Lyndon Remias, City Auditor and Arnette F. Heintze, CEO—Hillard Heintze. Mr. Remias expressed his appreciation to City Council for their continued support. Mr. Remias advised the contract for the independent investigation was awarded to Hillard Heintze forty (40) days ago, this is the first monthly update. Mr. Remias advised as the liaison to Hillard Heintze, he has had full cooperation from the City Manager's Office and all directors, who have been asked to provide documentation or information relevant to the investigation. Mr. Remias turned the brief over to Mr. Heintze. Mr.Heintze expressed his appreciation to City Council and all of the staff who have been fully cooperative. Mr. Heintze advised a toll free number and email address for public outreach has been established, with over ninety emails and fifty phone calls received to date. There have been four listening sessions held with the public and employees with weekly site visits. Mr. Heintze advised through data requests, the investigators have received ten hours of police body camera footage, 2.62 GB of documents, and 115 GB of emails and attachments; totaling approximately 9,835 documents to index and analyze. Mr. Heintze advised investigators conducted ninety interviews;forty-seven have been with Building 2 employees and an additional twenty-three are scheduled. Mr. Heintze advised any individual or group is encouraged to contact the toll free number or email information they would like to provide, adding there is an interest to hear from everyone who has points to make concerning a toxic environment. Mayor Dyer expressed his appreciation to Mr. Remias and Mr. Heintze for the brief. Mayor Dyer called for a short break for Council Members to move to the City Council Conference Room for the remaining City Manager's Briefings. August 27, 2019 3 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT 2:22 P.M. Mayor Dyer welcomed Sylvia Nery-Strickland, Chair. Mrs.Nery-Strickland expressed her appreciation to City Council for their continued support: Prepared by Presented in NirginiaBeatfi Annual Report 2019 7Cuman Rights Commission 1 1 tI t ,K_ R ak44 -1 1 Sylvia Nery-Strickland, Chairperson ) '• Aug.20,2019 Here is the Mission of the Human Rights Commission (HRC): Alt Our Mission 410, The Virginia Beach Human Rights Commission (HRC)exists to advocate for the human rights of City of Virginia Beach residents. The objectives of the HRC are: • To institute, conduct and engage in educational programs 'NY \,..4 • To serve as a forum for discussion of human rights issues and to propose solutions for improvement of human relations • To provide assistance to persons who believe their I rights have been violated 2 August 27, 2019 4 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Here is the history of the HRC: Our History Following civil unrest of Labor Day - 1989, the City of Virginia Beach appointed the Fellowship Committee in the aftermath. t - Fast forward to 2019,the HRC is now a 19-member commission with active liaisons and community partnerships. The City of Virginia Beach is the first municipality in Hampton Roads to support an HRC. 3 Here are the Commissioners: Meet Our Commissioners Sylvia Nery-Strickland,Chairperson Dr. Virginia Jenkot, Vice Chairperson Beatriz Amberman Carla Hesseltine Joe Burnsworth Rajeeb Islam David Calliott Emiliano Fortunato "Dojo"Orencia Cheryll Caalim,Student Luis Rivera, MA Ed. Bro. LaKendrick Coburn El,G.S., D.M. Teresa Stanley Ron Taylor Thomasine Cubine Frances Knight Thompson Nicholas DiNonno,Student Jamal Gunn Allison White Rabbi Israel Zoberman 4 August 27, 2019 5 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Here are the HRC supporting staff members: Meet Our Staff LIAISONS City Council ADMINISTRATION Mayor Robert Dyer Councilman Michael Berlucchi Regina S.Hilliard Human Resources Director Virginia Beach Police Department Deputy Chief Tony Zucaro Roderick Ingram Deputy City Attorney Virginia Beach Sheriff's Office Lt.Lois Thompson Mary Graessle HR/Employee Relations Manager Virginia Beach Public Schools LaQuiche Parrott,Ed.D. Kelly Borger HR Office Assistant Virginia Beach School Board Dottie Holtz Tracie Liguid HR/HRC Liaison Minority Business Council Frances Knight Thompson S HRC Commissioners have volunteered a combined total of 2,122 hours: Volunteer Hours To fulfill their commitment,Commissioners volunteered for about 2,122 hours, creating an estimated savings of$52,406. � u n 6 August 27, 2019 6 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) This picture shows Commissioners attending City events with special recognition to James Parke who passed away April 21, 2019: Volunteering 44 yam, tSfr 'a -- rt -I .._ >, _ ...a 7 The next two (2)slides are an overview of Recommendations to City Council: Recommendations to City Council • City of Virginia Beach Disparity Study • 70th Anniversary of the United Nations + w } F Resolution Proclamation "1-4 P • Oceanfront Entertainment Programming ' Prior to Week 17 • LGBTQ Month Proclamation 11! • Proclamation for"Season of Non-Violence 8 August 27, 2019 7 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Recommendations to City Council (cont.) General Assembly Legislative Items Requested: • Solution to Coastal Flooding,Greenhouse Gas Initiative • Expansion of the Virginia Human Rights Act • Full funding Driver's Privilege Card for Undocumented for the STEP-VA program At,4 • Limited Driver Privilege Card for Undocumented P ; Immigrants Ih • Non-Discrimination in Public Employment and Housing • Diversity on the Circuit Court Bench 9 In recognition of Human Rights Day, HRC hosted a Human Trafficking Forum to discuss how human trafficking is defined, its impact on Hampton Roads and how the community can participate to end trafficking: Sponsored Events • Trip to the National Museum of African American History and Culture,Washington,D.C. • "Human Trafficking:Hidden in Plain Sight"Community Forum&Reception,Meyera E. Oberndorf Central Library. c • 10 August 27, 2019 8 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Here are a few of the HRC Supported Events: Supported Events • "Freedom from Fear through Civic Engagement" Community Conference,Chrysler Museum. • Homelessness Awareness Week. • "Summit Against Hate,"Sandler Family Campus. • "Virginia Immigrant/Latino Advocacy Day," _ Virginia General Assembly,Richmond. if • "Day of All People,"Virginia General Assembly, , Richmond. �` • "The Art of Humanity:In Honor of the Season for Nonviolence,"Little Theatre of Virginia Beach. 11 On June 6, 2019, HRC co-sponsored the May 31' Tragedy Remembrance Service at Rock Church and provided "VB Strong"wristbands to the victims'families, remembrance attendees and City employees: Supported Events - VB Remembers VB Remembers • v h+ as .e. 4 fir* - 40001, 12 August 27, 2019 9 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) HRC participated in the Mental Health Awareness Month campaign held at the Norfolk Scope: Supported Events-Mental Health Awareness Month conditions - ft Youcanhelp._, "^ fsix n sma, kneed x amdes ab when helping a�h mental heakh co dnim - 1 i N ` Tfaeare many I rgf(..mrfries ,f anawR®en ., ;, Ore in five L O Americans Ins =!.,,, s 4,a_ 'IintMa lifetime. ______._. 13 Here is a look at the Annual Programming: Annual Programming Independent Observer Program OBSERVER OVERVIEW III Of 1'•1 V •Commundy members i r HRC Awards Program •Human Rights Commission , _ •Pasta)leaders fable BY THE NUMBERS . •seatada CIVIC league I 70 Individuals registered - '•- •Mayor's African American Roundtable V 82 individuals attended •va Beach lmerdennmmabural '96 observer shifts schedu.ed _ �' tg Monsters sters conference 86 observer shifts filled y•sp ft R •lesson aaviwry cormm�sron 16]surveys received LE °. av . 1 During Something in the Water festival Si ■ - i, 4 is f — �I �j{n,a ale"�. 1! 14 August 27, 2019 10 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Here is an overview of HRC's operational areas: How We Operate COMMITTEES MEMBERSHIP • Awards • Virginia Association of Human Rights • By-Laws/Policy • Community Alliance Partnership ADDITIONAL PARTNERSHIPS • Forums/Dialogue • Virginia Museum of Contemporary Art • Joint Oceanfront • City of Virginia Beach Office of • Mental Health Cultural Affairs • Nominating • Public Information 15 The next two (2)slides provide an overview of Human Rights Inquiries: Human Rights Inquiries TYPE OF REQUEST/COMPLAINT BASIS OF REQUEST/COMPLAINT us Rene Otte' 23% Other public 16 August 27, 2019 11 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Human Rights Inquiries State Agency Referrals Local Agency Referrals Adult Protective Services City ADA Facilities Manager Indigent Defense Commission City Manager's Office Regional Housing Hotline Dir,of Housing in Norfolk Virginia Bar Association Human Services, Norfolk Virginia Coalition of Latino Organizations Human Services,Virginia Beach HRC Commissioners Federal/National Referrals Housing Resource Center Bi's Wholesale Corporate Legal Aid Society of Eastern Virginia Equal Employment Opportunity Commission Private Attorney FBI Civil Rights Division Samaritan House Facebook Bullying Prevention Hub Virginia Beach Police Dept. Sedgwick Claims 17 Members of HRC continually monitor the City to address concerns before becoming a human rights issue: Human Rights Battle Group .fir rii* ■•■■ •t'*414ki. t ;! ill , 18 August 27, 2019 12 CITY MANAGER'S BRIEFING HUMAN RIGHTS COMMISSION ANNUAL REPORT (Continued) Contact Information For more information www.vbgov.com/hrc www.facebook.com/HRC4VB hrc@vbgov.com 757.385.1158 S ilk • • fit; HRC monthly meetings are open to the public and ll held at 4 p.m.the second Thursday of each month. Go to www.vbgov.com/hrc for schedule of locations. M3FIC VIRGINIIA RFACM HUMAN RIGHTS COM4SAON 18 Mayor Dyer expressed his appreciation to Mrs. Nery-Strickland for the presentation. August 27, 2019 13 CITY MANAGER'S BRIEFINGS MEDICARE ELIGIBLE RETIREE DENTAL 2:39 P.M. Mayor Dyer welcomed Linda Matkins, Director of Benefits — City/Schools Consolidated Benefits Office. Ms.Matkins expressed her appreciation to City Council for their continued support: �err Dental Plan Retiree Eligibility City Council,Aagust 27,2019 itfitY Here is the agenda for today's presentation: Discussion ► New Dental Plan Options for Medicare-Eligible Retirees ► Historical Dental Plan Retiree Eligibility ► Changed Dental Plan Environment ► Plan Comparison ► Enrollment ► Next Steps August 27, 2019 14 CITY MANAGER'S BRIEFINGS MEDICARE ELIGIBLE RETIREE DENTAL (Continued) Here is an overview of New Dental Plan Options for Medicare-Eligible Retirees: New Dental Plan Options for Medicare-Eligible Retirees ► MetLife TakeAlong Dental ► Offered to employer sponsored plan members ► Competitive plan design and rates ► Available to any member leaving our plan for any reason • Medicare Marketplace Dental Plans ► Ameritas,Cigna,Humana,MetLife,Renaissance Dental ► Outreach to members prior to becoming Medicare eligible . Free counseling with highly trained advisors for selection of dental plans in addition to Medicare plans . Free assistance throughout the year with questions or problem resolution . Website tools for plan comparison and selection Healthcare.gov r Anthem,Delta Dental,Dominion National,Renaissance,The Guardian Life Here is an overview of Historical Dental Plan Options for Medicare-Eligible Retirees: Historical Dental Plan Retiree Eligibility ► Pre-2004 ► Pre-Medicare eligible retirees were offered dental coverage if they had coverage as an employee at the time of retirement k Dental coverage was not offered to Medicare-eligible retirees ► January 2004 ► In mid-January,appeal from Medicare-eligible retirees led to change in eligibility ► Rationale for change Individual dental plan options were limited " ea ► HMO dental options with limited provider networks made it difficult to get appointments vN . No employer contribution provided for dental coverage . No perceived cost to administer plan for Medicare-eligible retirees ► 57 Medicare-eligible retirees were offered coverage and 34 retroactively enrolled August 27, 2019 15 CITY MANAGER'S BRIEFINGS MEDICARE ELIGIBLE RETIREE DENTAL (Continued) Here is an overview of Changed Dental Plan Environment: Changed Dental Plan Environment ► Expanded individual dental plan options ► MetLife TakeAlong Dental ► Medicare Marketplace ► Healthcare.gov ► Significant Increase in Enrollment-2,433 Medicare Eligible Retirees Enrolled as of July 2019 ► Higher premiums for actives and retirees by 2.6%(8.6%rather than 6.0%)for 2020 renewal if Medicare-eligible retirees included in eligibility ► Liability to OPEB(Other Post Employment Benefit)trust(a valuation has not been requested to determine cost) ► Addition to online enrollment platform resulting in$2.60 per member per month MAN Here is the Plan Comparison: Plan Comparison Dental Plan/Rate Comparison Medicare-Eligible V0Mettife Gold MetlifeTakeAlong Plan Design Active&Retirees Medium Option Calendar year Maximum Coverage leer Person) $1,300 $1,500 Individual Deductible(Annual) $50 $50 iamity Deductible(Annual) $150 $150 Preventive&Diagnostic Selves 100% 100% Balk RestornNetervices 80% 80% Major Restoraive SeMres 50% 50% Orthodontia Covered R01 feve! Orthodontia Lifetime Max $1,00C R/0, 2020 MettgeTate0long ' MonthlyRates(ActivesBlendedwithpre- VB Metttle Medium Option Medicare and Medicare Eligible retirees) Gold Zip 23456• _ Subsciber Only $34.21 $33.36 • Subscriber Child $53.54 $66.02 Subsratber+CAileren $73.26 $92.04 Subscriber+Spouse $73.26 $66.02 x Family $107.35 $97.04 ..ws�wme,mr axn,w wrtk a>^�.a�n.a. August 27, 2019 16 CITY MANAGER'S BRIEFINGS MEDICARE ELIGIBLE RETIREE DENTAL (Continued) Here are the Enrollment totals: Enrollment Dental Enrollment Medicare-EY*We Retirees' City Sehoot Gold Retiree Retiree Total Gold Employe Onh 466 962 240E Employee&Minor a 12 20 Emploree&OdGen 0 1 1 Employee&Spmee 212 dM 621 Employee 6 Family 6 6 10 TOT.,Gold 696 13114 20E0 City School Silver Retiree Retiree Total Silver EmployeeOnlv 23 166 229 Employee&Neer 0 2 2 Employee&0,ddren 0 0 0 Employee Spouse 43 16 121 Employee&family 0 1 TOTAL Scher 117 230 363 I TOTAL ALL p1ArGl 9131 feel 2633I •a,pfwt29.2019 Here are the Next Steps: Next Steps Active Employees/Pre-Medicare Eligible Retirees Medicare-Eligible Retirees ► MetLife dental contract renewal for 2020 with a Implement MetLife TakeAlong Dental 6%rate increase(not to include Medicare- Plan eligible retirees) a Finalize 2020 dental plan: a Provide communication and assistance • Open enrollment communication to Medicare-eligible retirees for 2020 materials finalized,printed and released plan election ✓ Website revisions(Consolidated Benefits Office,vbgov.com/benefits,Benefitfocus a Implement Medicare Marketplace(go- communications portal) live date to be determined)for retiree • Program rates into WISE and InSITE and access to online resources and _ Benefitfocus enrollment platform counselors to assist with Medigap, P. Rates updated with VRS for system Medicare Advantage,Medicare Part D, programming for premium deductions dental and vision plans August 27, 2019 17 CITY MANAGER'S BRIEFINGS MEDICARE ELIGIBLE RETIREE DENTAL (Continued) I YE- = t Questions k Linda C.Matkins,Director of Benefits -a;:+ _ linda.matkins@vbschools.com 4Kit rT 757-263-6917 10-`+ ` Mayor Dyer expressed his appreciation to Ms. Matkins for the presentation. August 27, 2019 18 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING 3:01 P.M. Mayor Dyer welcomed Andrew Friedman, Director—Housing and Neighborhood Preservation and Steve Lawson, Chairman—Lawson Companies. Mr.Lawson expressed his appreciation to City Council for their continued support: The Future of Affordable Housing in the City of Virginia Beach Presentation to the ;..,, Virginia Beach City Council August 27, 2019 •..:.:,:r by Steve Lawson •LAWSON To set a goal, "The Real Question", must be answered: ? The Real Question ? What do we want our City to look like in 10, 20, or 30 years? l_ I-1-®-1 Afti AA • The same?Or better? �� I • Similar people? � 11 • Attract new people? 1 • Or dig a moat around our castle? =C My answer: • I would like Virginia Beach to be a place that my 11-year old would like to stay or return to if he leaves... Caveat required: For this or any other goal to be realized,we need to ...and be a place where he and address the changes that we know are on the horizon his ceneraticn can afford to live LAWSON August 27, 2019 19 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Here is the Agenda for Today: rrel Agenda for Today • Changes that we know are on the horizon • The need for affordable housing • Econ 101: supply and demand • Economic realities of building affordable housing • Our city's opportunity (and responsibility) it 44,LAWSON AIL Here is an overview of David Dixon, author of Suburban Remix: poi Changes That We Know Are On the Horizo What David Dixon Calls "The New Norm 101" David is a city planner and author well known for helping create new,mixed-use urban districts in both cities and suburbs • David leads planning and urban design for4-1 Stantec's Urban Places office in Boston • When The American Institute of Architects awarded him the Thomas Jefferson Medal, they praised David for"a lifetime of significant achievement in creating livable • Y' neighborhoods,vibrant civic spaces,and vital downtowns" s. :` tl etii • Residential Architecture magazine also named I P David to their Hall of Fame aEsxE` 'owlu oixo; 'Ar LAWSON August 27, 2019 20 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Mr. Lawson provided three(3)points made by David Dixon: Changes That We Know Are On the Horizo £a; What David Dixon Calls "The New Norm 101" Demographics SWri 0 Economics , __ t i B Disruptive Changes , � , '' et 1 rT ro s y -v ® LAWSON ti Millennials are the largest generation contributing to$1.6-Trillion in student debt: P Demographics... Data Does Not Lie Everybody's Talking About the Millennials was--•- $1 .6T • Millennials are the single largest generation „, In 2019 EVER • Born between 1981 and 1996,so ages 23 to 38 i.,. p/ • They are delaying marriage,delaying kids, ( - +1 30% and not buying houses • Student debt is at record levels • May be the first generation in U.S. history to ____....a.._„ $700B economically fare worse than their parents €i In 2009 Student Debt ha •LAWSON DOUBLED in t • August 27, 2019 21 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) The next two (2)slides provide an overview of the challenges Millennials face with the high cost of housing and college expenses: P Demographics... Data Does Not Lie Everybody's Talking About the Millennials Rent • When entering the workforce,Millennials pay the highest rents of any prior generation,with a 2017 average of$1,358 , • By comparison,Gen-Xers paid monthly rent of just$850(in today's __=-Tz. dollars)at the same stage in life • The Silent Generation paid under$500 a month +++ Homeownership •+:+ir:+T_ ;�.,;::F„ • The few Millennials that are buying their first homes today will pay Ailtir" 39%more than baby boomers taking the same step in the 1980s •LAWSON Demographics... Data Does Not Lie Everybody's Talking About the Millennials Getting a degree • When millennials were born,tuition at public 4-year colleges was just$3,190 per year(adjusted for inflation) • Now that they have grown up and enrolled in college,tuition has risen 213%to today's cost of$9,970 per year osir LAWSON August 27, 2019 22 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Millennials and Baby Boomers will be the two largest generations that define the future of the housing market: sx ,a Demographics... Data Does Not Lie • But they are just part of the story • The US is growing both younger and older 1990-2010 2010-2030 351065 ■ui0er35 B oer65 • The Millennials and the Baby Boomers are going to define the future of housing 05 A.LAWSON The demand for traditional single-family homes is declining: Demographics... Data Does Not Lie • Traditional single family market— two parents with ion_ ■ t�� kids — is shrinking aozrosc • US households with kids is projected to drop to 25%by 2025 11111 209E II • By 2025 two-parent 0 households with children will 1970 2015 2025 represent only about 10%of all US households +T: 1.4 f .�LAWSON August 27, 2019 23 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) The US is oversupplied in single-family homes and undersupplied in multi family homes: Demographics... Data Does Not Lie • Housing Demand is Shifting tri • For the next 2 decades about 80% of net new households will be EN MN singles and couples 62 is 4,of US household.lad al US households are • But there is a huge mismatch as04.+ter magnill Valh urana ___ between the existing housing stock =_- and what new households will Co'`' _-_-t. desire _`-- • The US is over oversupplied in : . single-family and undersupplied in 01,14 multifamily V fit •LAWSON This chart shows the increase in families moving to urban areas: o Economics... Drives Everything ulaeu Higher income I families are sa sat moving to nil cities II® 1 won, +SS% : • Urban housing SwDl.l values are rising faster than the $uaa"•.::•f- •••••••• •suburbs: Eft suburbs swots• +33% ',': M•rcus•nd Malichap —., �LAWSON amco .cle August 27, 2019 24 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Here is an overview of Arlington County: p Economics... Drives Everything Arlington County Arlington County Tax Revenue from Walkable Urban Places • Has 7 walkable urban places 60%(WalkUPs),representing 11%of its 50% 5010Q/ landmass 40% 30% • In the 1980's,this land was 20% generating roughly 20%of county 10% �__ tax revenue(and falling) 0% • By 2016,this same land was 1980'S 2016 generating more than 50%of tax ,k.. revenue(and rising) • The school participation rate for multifamily developments in these WalkUPs 1/13'h t to found in nei hoods of for-sale single-family homes. These multifami ool taxes,but not sending kids to school ,.•.. •441.LAWSON o Economics... Drives Everything For the good: • Replacing a retail strip with a three-to six-story mixed-use development increased taxes per acre by a factor of 8 to 25 times(which far outweighs any additional infrastructure and service costs) For the bad: _rs • Poverty is moving to the Suburbs • Virginia Beach's share of the MSA's highest-income and middle-income households fell from 2000 to 2014 • Households with incomes below$20,000 was the only income category that saw an increase 4 LAWSON August 27, 2019 25 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Autonomous Mobility requires 60%less parking space: 8 Disruptive Changes The Autonomous Mobility Revolution is real ✓ • Personal Autonomous Vehicles i ! • Shared Autonomous Vehicles(SAVs) Predictions: I • By 2022 SAVs will be in mass production • By 2025 60%of vehicles will be connected 't - 511 EMI Implications: • Less parking needed-Autonomous parking requires 60%less space • We are currently at"Peak Parking" • More dense areas will benefit first and the most .€MVO LAWSON Here are the Takeaways: jr Changes That We Know Are On the Horizo Takeaways tDemographics: • 80%of new households will be singles and couples • There is a huge mismatch between the existing housing stock and what new households want um Economics: • Higher incomes are now preferring more urban locations • More dense, urban-style development pays lots of taxes 4, Disruptive Changes: :wow • More dense, urban areas will benefit first from autonomous mobility-and disproportionately as well ,.�+t A*, • LAWSON August 27, 2019 26 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Pei Agenda for Today V. Changes that we know are on the horizon • The need for affordable housing • Econ 101: supply and demand • Economic realities of building affordable housing • Our city's opportunity (and responsibility) 414 LAWSON Affordable housing is determined by the percent of Area Median Income (AMI). The City's AMI is $79,300: Actual Actual The Continuum of Income Ranges for Affordable Housing Income Income by Area Median Income(AMI) 4 Person 2 Person Housing Affordability Household Household 14096 F$111,020 $88,90+ Program or Type of Income Range 120% E $95,160 $76,20+ Housing by%of Area MPd'an Inromp 100% F�79,300 $63,50+ HUD Extremely Low 0%-30% i € 8o% Typical E- $63,440 $50,808 is) Income c Section 8 I HUD Very Low 31%•50% `m 60% Clients E- $47,580 $38,1+4 ), Income 40% E- $31,720 $25,404 HUD Low Income 51%-80% ; '--- LIHTC(Low Income 0%to 60% 20% E- $15,860 $12,704 Housing Tax Credit) fr Occurring 90%-120% TypicalI 4- So $+ NOAH(Naturally Approx. 0%1 1 HUD I HUD MD UHT( NOAH IextremwcI mL,w tow law ue� iH t•w, ,COTe ,nc•me o + Affordable Housing) Public loam.I ncu+ma an a nk Housing ___• Taxo-eelt a i r 1.6 _ •LAWSON Clients Program or Type of Housing August 27, 2019 27 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) There is a 45%affordability gap between the cost of housing and income: * The Need for Affordable Housing +65% Median rents vs.median household income.1960-2014 170% For many decades ,60„ incomes have , risen very little, r A but the cost '�°' housing continues "°" to go up 120% 110% 100%960 1970 1960 1990 2000 2010 Real merlon rent(indexed io 1960) Real amlreaee income(Mooed lo 1960) +2 0 Rya .0% M% 06% .7% .2% •1% Inewir LAW S 0 N ..r .._ aPartmentv�st Most increases in income goes to pay for housing costs: A The Need for Affordable Housing Less Housing for the Buck* /Real median personal income /Rent-adjusted median personal income 0 160 +42/ The St. Louis Fed illustrates it like this 120 80 +8% 1980 2000 2016 Source Federal Reserve Bank of St.Louis Most of the income •Index 1980.100 the last 30 years a N.LAWSON to pay for housi August 27, 2019 28 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) The next two (2)slides provide charts depicting the need for affordable housing in Hampton Roads: A The Need for Affordable Housing The%of cost-burdened renters has hovered around 50%since 2009-within a couple of%of the peak...even with the lowest unemployment rate we have seen in decades. Share of Renters with Cost Burdens in Virginia Beach-Norfolk-Newport News,VA-NC 60% 111 :: '- $; 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ite J C rift JONA CNENVOR , b, LAWSON * The Need for Affordable Housing ShareThe number of low- income renters in Hampton Roads grew t2 9.2%from 2011 to 2017 10 Vacancy rates are at 4 • historic lows for 2 Moderate and Lower 0 Quality apartments era toes 2035 mtb X09 EAO 2011 2012 2013 1014 X15 2016 20R 514 2015 uMiL.+hl. _112sur wwityl -3m*N8"Wk �IiSSdrpn�Ml 11 4.LAWSON August 27, 2019 29 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Here are the Takeaways: * The Need for Affordable Housing Takeaways So, I get it...its a problem, but why does it matter? Fairness- it's the right thing to do ! • Fundamentally,every family in our community should have the opportunity to find housing they can afford and have access to vital community resources • We need to build homes and apartments that are affordable to doctors and lawyers as well as our teachers,first responders,and restaurant •**`it servers +r • LAWSON A The Need for Affordable Housing Why does it matter? Economic Self-Interest • Our city's economic vitality depends on policies that lower housing costs and create a diverse work force • Lower housing costs mean that people can live where they work,which means less traffic,cleaner air for everyone,and less we have to spend on roads T- • Families with less money must spend a greater proportion of their incomes on housing,so they have less to spend on things like education ;:;°&. -- and health '' T Agal • Addressing the affordability problem will lead to better health Stir � outcomes,greater employment and education opportunities,more .:My" � y stable communities,and a stronger local economy ;4 * • LAWSON August 27, 2019 30 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) itI. k l Agenda for Today V• Changes that we know are on the horizon V • The need for affordable housing —) • Econ 101: supply and demand • Economic realities of building affordable housing • Our city's opportunity (and responsibility) A I 4,•LAWSON Here is an overview of the supply and demand for housing: ILI Econ 101: Supply and Demand Supply is limited, so prices go up... • Over the past eight years,U.S.housing Household Growth Haus ng construction has not kept pace with Percent Number Completions Difference household formation even though household (Millions) (Units,M) growth continues to edge down 1970s 2.4 1.68 1.70 24,800 • The undersupply is even greater if 1980s 1.3 1.13 1.49 364,400 obsolescence is factored into the equation 1990s 1.4 1.40 1.33 -72,300 • This undersupply has been a major itsi 1 1t.__ .14.....421'r' contributor to rising single-family home sales 2010s + 0.9 1.04 088 -160,200 prices and multifamily rents Overag 'e . •I'•Y- Adak r Rising land costs,increased labor costs, Source:csr<e Re,,,. �.s greater development regulations and many Qr 2019.'Average 160,200 fewer € other factors have also contributed to rising housing costs housing units than households... •LAW S O N per YEAR! August 27, 2019 31 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) The next two (2)slides provide an overview of the consequences zoning regulations have on housing: 1/1 Econ 101: Supply and Demand Suburban zoning restricts the supply of housing and is typically exclusionary and outdated: A recent report by the Brookings Institute notes that: • Land use regulation and local property taxes badly need a 21"century makeover • Low density,single-family housing will NOT accommodate population = T= growth • Far too many local governments still have zoning that prioritizes large- lot single family homes over townhouses,multifamily buildings,or mixed F T = residential-commercial structures TT' • For housing supply to grow,more localities need to update their zoning, building codes,and property taxes to allow and incentivize higher density housing,particularly near employment centers and +' transportation infrastructure + LAWSON Econ 101: Supply and Demand Harvard's Joint Center for Housing Studies notes "The most significant factors[affecting the supply of housing]are rising land prices and regulatory constraints on development" Our land use approval process is this regulatory constraint • It is hyper-local and hyper-political • It empowers the loudest voices in the room...and often the least `a informed • Rezoning for higher density almost always involves a battle r ._ • • Good development ideas get killed all the time ';�gff :. .?�:rT • This lengthens the time to build,raises risk,and thus increases tailir : cost • This is a disincentive for the industry to even try +14 •LAWSON 111 August 27, 2019 32 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) 112.1 Econ 101: Supply and Demand • Housing has always Be„Carson• ( 1.4" ) been a truly ©�u,�a bipartisan issue... ICYMI:@HUDgov is taking on the#NIMBYs I agree with @Noahpinion that we must look at increasing the supply of affordable housing • Now affordable by reducing onerous zoning regulations. housing is as well... Zoning laws are holding back America's cities. #YIMBY •LAWSON Here are the Takeaways: Econ 101: Supply and Demand Takeaways • Our land use policies effectively limit the supply of housing, which makes prices go up _ • We need to find ways for the community to build a much x Y more housing, both market rate and affordable �LAWSON August 27, 2019 33 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) rah Agenda for Today V • Changes that we know are on the horizon �• The need for affordable housing �• Econ 101: supply and demand 4 • Economic realities of building affordable housing • Our city's opportunity (and responsibility) •LAWSON The next three(3)slides provide an overview of the economic impact builders face: Economic Realities of Building Affordable Housing (And why it can't be done without a subsidy) ,1 t4 Builders do want to build more housing that is affordable • But the numbers simply don't work Lots of reasons why: Supply Side: • Rising land costs • Rising construction costs both iaoor and material • More development and construction regulations • Ye-y contentious and political lard Jse aporovat process Demand Side: I comes have not kept pace with the cost of hogs-g • T,LAWSON August 27, 2019 34 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Economic Realities of Building Affordable Housing (And why it can't be done without a subsidy) Tools We Use to Build Affordable Housing • LIHTC Equity (Low Income Housing Tax Credits) • HOME Et CDBG Funds • VHDA Mortgage Financing Et Below-Market Loans • Project-Based Housing Choice Vouchers (already wyr existing) y LAWSON Economic Realities of Building Affordable Housing (And why it can't be done without a subsidy) Other Possibilities • Density Bonuses • Real Estate Tax Relief • Impact and Permitting Fee Relief • Redevelopment of Underutilized Land Et Buildings ` • Utilize City-Owned Land summer • Public/Private Ventures LAWSON August 27, 2019 35 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Here are the Takeaways: i Economic Realities of Building Affordable Housing (And why it can't be done without a subsidy) Takeaways • Builders want to build more affordable homes and apartments • The cost of housing has risen faster than incomes for many decades411 • Higher density development lowers per unit land costs and makes housing more affordable • We need to explore creative ways to build affordable lit housing •LAWSON Z.1 Agenda for Today 14 Changes that we know are on the horizon V ' The need for affordable housing • Econ 101: supply and demand V • Economic realities of building affordable housing 4 • Our city's opportunity (and responsibility) LAWSON ifijj August 27, 2019 36 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) The City has taken proactive steps to supply affordable housing: 0 Our City's Opportunity (and Responsibilit We feel strongly that our city should create jobs • We have an entire department devoted to creating new jobs Housing is simply where those jobs go to sleep at night • We have taken some great steps in the right direction ,.;Tm • Strategic Growth Areas(SGA's) • Form-Based Zoning in the Resort Area 4. rr • Zoning support for a number of great new affordable housing communities :,:;�.:�•,,x;r • But are we as committed to building new housing as we are to adding • new jobs? +.+W se •LAWSON O Our City's Opportunity (and Responsibility) The opportunity for a city is to proactively create places that will attract people and investment • Why? - It will grow our local economy - It pays really well in tax revenue • Remember Arlington? • Zoning is the city's primary tool to do this. —_ It is the city's responsibility to allow enough housing to be built to avoid a shortage • Shortages raise prices, high prices create other problems „r= • This is a responsibility of all citizens,those who already own or rent as well as those who are looking to buy a new home or rent :fa a new apartment +:> •LAWSON August 27, 2019 37 CITY MANAGER'S BRIEFINGS THE FUTURE OF AFFORDABLE HOUSING (Continued) Here are the Takeaways: 0 Our City's Opportunity (and Responsibility) - a Takeaway We have a choice: Ignore the coming demographic and economic realities... OR... LAWSON 0 Our City's Opportunity (and Responsibilit Build upon the great . l- _'PPP' things the City has l already done and / — 0 fully embrace the ✓ �- idea of creating more , r. •0 housing of all types, 00 especially those that •" Y - t will be in demand in : rat :; .11 i. the future .. I �509 "-" } 4k LAWSON Mayor Dyer expressed his appreciation to Mr. Friedman and Mr. Lawson for the presentation. The Workshop concluded at 4:18 P.M. August 27, 2019 38 014 aFq or ' 4-S! S p,,_ r1 VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia August 27, 2019 Mayor Robert M. Dyer called to order the SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Conference Room, Tuesday,August 27, 2019, at 4:18 P.M Council Members Present: Jessica P.Abbott, Michael F. Berlucchi, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones,John D.Moss,Aaron R. Rouse, Guy K. Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None August 27, 2019 39 ITEM ILA MAYOR'S CALL FOR FORMAL SESSION ITEM#69540 Mayor Dyer read the Mayor's Call for the SPECIAL FORMAL SESSION: August 22, 2019 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL: Tuesday,August 27, 2019 City Manager's Conference Room Building 1, City Hall,2nd Floor 2401 Courthouse Drive Following the WORKSHOP SESSION, which begins at 2:00 P.M. on Tuesday, August 27, 2019, there will be a SPECIAL FORMAL SESSION to convene into CLOSED SESSION for the sole purpose of discussing Appointee Evaluations. Sincerely, s/ Robert M. Dyer Mayor" cc: City Manager City Attorney City Clerk Deputy City Managers Communications Office August 27, 2019 40 ITEM#69541 Mayor Robert M. Dyer entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purposes: PERSONNEL MATTERS: Discussion, consideration, or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees of any public body pursuant to Section 2.2- 3711(A)(1) • Performance of Council Appointees August 27, 2019 41 ITEM#69541 (Continued) Upon motion by Council Member Abbott, seconded by Council Member Rouse, City Council voted to proceed into CLOSED SESSION at 4:19 P.M. Voting: 11-0 Council Members Voting Aye: Jessica P.Abbott,Michael F. Berlucchi,Mayor Robert M.Dyer, Barbara M. Henley, Louis R. Jones,John D. Moss,Aaron R. Rouse, Guy K Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None Break 4:19 P.M.—4:25 P.M. Closed Session 4:25 P.M. — 7:10 P.M. August 27, 2019 42 ITEM II.D CERTIFICATION ITEM#69542 Mayor Dyer RECALLED the SPECIAL FORMAL SESSION to order at 7:10 P.M. Upon motion by Council Member Moss, seconded by Council Member Rouse, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 11-0 Council Members Voting Aye: Jessica P.Abbott, Michael F. Berlucchi, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones,John D. Moss,Aaron R. Rouse, Guy K. Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None August 27, 2019 43 ITEM HI ADJOURNMENT ITEM#69543 Mayor Robert M. Dyer DECLARED the City Council SPECIAL SESSION ADJOURNED at 7:11 P.M . s Chief Deputy City Clerk Amanda Ba es,MMC Robert M.Dyer City Clerk Mayor August 27, 2019