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HomeMy WebLinkAboutDECEMBER 15, 2020 SPECIAL SESSION MINUTES e ir mS Syo r +4 4 OEe °' OOq NATO VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia December 15, 2020 Mayor Dyer called to order the SPECIAL MEETING in the Virginia Beach Convention Center, Suite 5, Tuesday, December 15, 2020, at 12:05 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 Rouse, Guy K. Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None I 4 I 2 INTRODUCTION AND PURPOSE 12:14 P.M. Mayor Dyer welcomed Mary Jo Burchard, Founder and Principal Consultant — The Concord Leader Community. Ms. Burchard expressed her appreciation to City Council for inviting her to facilitate today's meeting. Ms. Burchard advised her role in today's meeting is to ensure every voice on City Council is captured and every concern heard. Ms. Burchard provided the plan for facilitation, indicating that after each briefing she will capture questions and requests for clarification from City Council Members to be used during the discussion at the conclusion of all briefings. Mayor Dyer thanked Ms. Burchard for her work to guarantee a successful and productive meeting. December 15, 2020 3 OBSERVATIONS AND COUNCIL-MANAGER PRIORITY IDENTIFICATION PROCESS 12:17 P.M. Mayor Dyer welcomed Patrick A. Duhaney, City Manager. Mr. Duhaney expressed his appreciation to City Council for their continued support: CITY MANAGER'S ■11111°111111111)1111611.1.11111611. I KEY OBSERVATIONS IN IIIIIPabick A.Duhaney ■ December 15,2020 ■ IN Here is an overview of the City's One Page Strategic Plan®(OGSP®), with the Strategies focusing on 21'Century Infrastructure, Safe&Healthy Community, Growing Economic Opportunities, Thriving Neighborhoods, and Innovation &Sustainable Government: City of Virginia Beach I One Page Strategic Plane(OGSP0) - FY 2021.2022 Our Mission:Tire city aI vrrgrnia Beam masts to enhance the economic,educational,social and physical quality of the Yi,ginla Beath comity ity and provide sustainable municipal services whim are valued by kdcauens. n 2021.22 OBJECTIVE: STANNIC: FT 2022 PLANT:1Dwrx Dale)IkwbaPnvdv S.B,D7 •WNtb succour new we w,.i _ la)Reduce ell Ihrough continwus onnaation,easur merit L.no Century lnfra.tructun ) shl Proactively ma re a.mpro . al Buildy 3cl r p Ma Andy ww g Pxtrc.s whw.e r and the OW,eaomic vitally for reaeenyts, bleu cess.*mwumod • nm..hnc d l love on n 4w.m mployeea,businesses.and visdws while investing nee..lc.••members of m. 141 common.4valuate•me,Ing mobility wk..,and invest In effkle ow-friendly,rale.wa"at err sustainable and reuhentinh,+nruclu.e. conmuncy afrocur•Acusons that get paoP.where they wont go(l GOALS: 1.See Meal,Cxnvrr•rrttlyl) caI Use won approachws to reducecrime m al nniroo 11 •IBaieaaneAna wer).pr.pxealo dthauro:eommumty 3h1 a meN lire.medical.end .genet men• e I) tyw neq wl•xun Pquel tr+a.I 3c1 C Bw enaSS dSSaf rvespadcwl,.MS homelessness rT the 4/30 Iyn Pro P a^Isms mJ :e)> reo/l sweat init.,.M.can enonnecMnou<ung sous)urv...with Ow aosI gm arc,. auppot1.Yw•d1) 3.Growing Eemyw•k OEPaaanrra() 341 Cm w4 towardae•caning*w e)war-round con d•sonstion I wetl tornm d 3[I c u.a and l•cairawrrn•surem In aveugk indun.yuctcr:I1 «a glx�ie 3c)r resew.e and proactive nu...a.m.II o(SWAM) Wo men.me gtimriw 3d1 lncr•au SWAM busrnes1,11 P mono try cm...11 eiwaawBGMy (W AM)Owned Businesses 4.Thawing NelglrpwMOYI I 441E s.xd update comp...naavaplan to Won.a.ve)wm.atwith rwirftohopd Gloaming Frarer•k pap. elew)d.eanmimirymae;Mdluinecemp)emenk.y. cnxna.• n Sass.11 40 and rra ah Spending range of ocr..I51 f13.3 tIP rd� wrvt will,aqui..o xeeasrogwlrypark obi Pns re.ew.u,clemoa.apl,cs and needs errand.,mnuaN awriiue�.•v.m•`a epralie our proved,and Camme.Nlp•rm)n raceme 1.N9 and recreatronalooporrunmes wp nmues unaa.•ne row.xis a.rg r g 4dlP7:na',nnYnodar....,on•pp.opnaulv.,d.Swer.,...nd cee,d S.Innovallre iSuwaln•IS.Goyemamt() sal E •cult,.of continuous improvement that•mbrares tecnrTohard Pornrro)rg tc Improve ilgovernment Mat l its for al,ellezuvely and sd)Ion .a retain•d,veru•ra used wanoaell Scl .met linen./ .dra[ureu.ev 3d1 teal N.tow n'rrdwy.d.,PwrkeeIYengag+me communSY on me menus mot r.npaacham ll December 15, 2020 4 OBSERVATIONS AND COUNCIL-MANAGER PRIORITY IDENTIFICATION PROCESS (Continued) Here is the background for Harry Kangis, General Manager- OGSP®: Harry Kangis 411 The One Page Solutions Team (j• / Co-Founder and General Manager • Independent Strategy Consultant for since 2001 • Focus on Executive Onboarding and Transition Acceleration • Portfolio Includes 100+Private Sector,Non- Profit and Local Government Customers JI,'i7 • 20+years in the Private Sector "j,`//;iffll i;;. ' / 1/ • MBA from The Wharton School of the University ! �l% it of Pennsylvania �;'(!�' " Wf,. • Passion for Family,Travel and Volunteerism Here is a diagram of the City's Strategic Plan Development Process: CITY OF VIRGINIA Initial Strategic Renewer` Drafting Assessment Strategic Pla"` BEACH STRATEGIC PLAN Capability Community Council DEVELOPMENT Assessment Input Approval PROCESS Deployment Mayor Dyer expressed his appreciation to Mr. Duhaney for his presentation. December 15, 2020 5 CARES ACT UPDATE 12:37 P.M. Mayor Dyer welcomed Kevin Chatellier, Director—Budget and Management Services. Mr. Chatellier expressed his appreciation to City Council for their support: CARES Act CRF Reconciliation & Reallocations Decemberi5,2020 Here is a status of City Council Locally Funded Fiscal Relief Initiatives: City Council Locally Funded Fiscal Relief Initiatives Initiative Budget Expended/Committed EDIP $1,5oo,00o s1,5oo,000 Utility Relief $4,000,000 $92,341 Real Estate and Per.Property Tax Relief $2,000,000 $520,853 Small Business Assistance si,000,000 si,000,000 United Way South Hampton Roads s8,000,000 s8,000,000* December 15, 2020 6 CARES ACT UPDATE (Continued) Here is an overview of Grant Reconciliation Actions taken by City Council: Grant Reconciliation Actions December 8,2020,Council Agenda Ordinance: Authorize the City Manager to release the reserve,realign and transfer CARES Act Coronavirus Relief Funds in Accordance with Actual Eligible Expenses through grant close-out period Authorize the City Manager to utilize eligible Public Safety salary expenditures to maximize the CARES Act grant Direct City Manager to provide final grant report of additional savings generated within the General Fund by seeking Public Safety salary reimbursement Obtain City Council direction and guidance on use of local appropriations 3 Here are the current CARES Act Grant Revised Estimates for City-wide needs: CARES Act Grant Revised Estimates for City-wide needs: is Allocation CARES Act CRF Grant 2^d Allocation CARES Act CRF Grant July Actual Expenditures Oct loth Actual Expenditures Total Funding $39,258,497 Total Funding $39,258,497 Medical Expenses (21,362) Remaining Balance S Public Health (12,081,636) Established Local Compliance with PH (4,412,635) Reserve $39,258,497 Economic Support* (5,931,775) United Way/EMS (lo,000,000) Total Expenditures (29,326,197) VBCDC (i,800,000) Remaining Balance S 9,932,30o Remaining Balance S27,458,497 4 December 15, 2020 7 CARES ACT UPDATE (Continued) Here are the Total Pandemic Relief Reserve Amounts, with a remaining Reserve of$31.4-Million: Total Pandemic Relief Reserve Amounts Oct zo City Council Action: $27.5 million Pandemic Relief Reserve Dec 8 City Council Action: $ 9.9 million Residual Grant Close-out Total Pandemic Relief Reserve= $37.4 million City Manager Contingency Reserve: ($6 million estimated) PPE needs until end of fiscal year Enhanced Cleaning needs IT Needs(License,Subscription) Economic Support needs Remaining Total Pandemic Relief Reserve= $31.4 million Here are some CARES ACT Considerations as it pertains to Budget Guidance: Consideration as Part of Budget Guidance As a locally funded reserve,City Council has additional flexibility Use without CARES Act restrictions No utilization deadline Pandemic will continue to have impact on the local economy and FY 2020-21 Operating Budget Continue to monitor federal conversations about additional relief Within the Budget Guidance section of presentation,ideas and discussions to date regarding the possible use of the Pandemic Relief Reserve are included Mr. Chatellier continued to the next presentation. December 15, 2020 8 BUDGET GUIDANCE 12:55P. M. Budget Guidance FY 2021-22 Process December 15, 2020 Here is the plan for upcoming Budget Guidance Meetings: Budget Guidance Meetings First Meeting-High Level February Retreat-More Detailed Third Guidance Meeting- City Manager one-on-one with members of City Council December 15, 2020 9 BUDGET GUIDANCE (Continued) Here are considerations for the Budget regarding Revenues: Revenues Do not anticipate any general government tax rate increases Review departmental fees for services or programs to ensure they remain competitive Long term revenue growth of 3%typically required to maintain services and operations 9 Here is an overview of Revenue Dedications: Revenue Dedications Maintain existing City Council policies dedicating various revenue streams (School Funding,TIP,TAP,Open Space,etc.) Non- Tax local Dedicated TIP Fund TAP Fund EDIP I Open Space Rate General Fund Amusement 10% 10% Hotel Tax 8% 2% 5% 1% Hotel Flat Tax $2 $1 $1 Restaurant Meal Tax 5.5% 3.5% 1.06% 0.5% 0.44% Cigarette Tax(per 75< 54C 5C 16C pack) December 15, 2020 10 BUDGET GUIDANCE (Continued) Here is the History of Real Estate and Personal Property Tax Rates between FY 04 and FY 21: History of Real Estate and Personal Property Tax Rates Real Personal Estate Property FY04 $1.2200 $3.70 FY 05 $1.1964_ $3.70 FY06 $1.0239 $3.70 FY 07 $0.9900 $3.70 FY 08 _ $0.8900_ $3.70 FY 09 through FY 10 $0.8900 $3.70 FY 11 through FY 12 $0.8900 $3.70 FY 13 $0.9500 $3.70 FY 14 $0.9300 $3.70 FY 15 $0.9300 $4.00 FY 16 through FY 17 $0.9900 $4.00 FY 18 through FY 19 $1.0025 $4.00 FY 20 through FY 21 $1.0175 $4.00 Here is an overview of the ERU rate increases,previously approved by City Council, through FY 2025-26: Enterprise Revenues Continue Stormwater project planning based on City Council's approved ERU rate increases through FY 26 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 49.3C 52.8C 56.3C 59.8C 63.3C 66.8C Each 14 of the ERU fee generates approximately$922k Water and Sewer-No rate adjustment necessary at this time Waste Management Each si of the Waste Management fee generates approximately si.5 million Look to possibly right-size revenues within enterprise funds to ensure critical services and assets are well maintained December 15, 2020 11 BUDGET GUIDANCE (Continued) Here is the history of Waste Management Revenue Sources between FY 12 and FY 21: Waste Management Revenue Sources f50,000, o $450o0.ouo f15,000Aoo fao,000 FYu FY 23 FYa4 FY 05 FY 26 FY 27 FY 28 FY 29 FY 20 FY ra WM Fee -GF Support •71P Transfer 'SPSA 'Mrsc Here is the history of Waste Management Expenditures between FY 12 and FY 21: Waste Management Expenditures f5o.aoa.�a f;7oo,00o f4704,000 fa,ao4.000 f4So0o,o00 _—T---t 6 o to 6 # .- sa,aos.000 s3,232,42 111 _i 0f;__� yoo �^,. tuo0 —oo —oo — -- so — FYu FY 23 FYa4 FY05 FY 26 FY 27 fY08 FY to FY 20 FY as Personnel •Operating "Capital •CaptaIeod9et Adj. 14 December 15, 2020 12 BUDGET GUIDANCE (Continued) Here are the Waste Management Fund Highlights: Waste Management Fund Highlights Waste Management Currently Comment Monthly Fee S25/Month=$37.4 million per yr CAFR Unrest.Fund Balance s9.7 million Equal to 3 month spend Recapitalization sa.9 million(FY as Adopted) Goal 7-year replacement Currently ii-i5 year Budget Drivers SPSATipping Fee S57 per ton Potential to go up in January SPSA disposal tonnage(1.5%) 3.46,000 tons=s8.3 million Potential$1.2 million increase Other cost increases - Example,personnel,fringe,ISF,etc. is Here are the Baseline Expenditures: Baseline Expenditures Maintain existing programs and services being offered Maintain funding to support maintenance efforts of Citywide assets and infrastructure Seek efficiencies to improve or enhance services and set performance standards at direction of City Manager 16 December 15, 2020 13 BUDGET GUIDANCE (Continued) Here are the proposals to address Employee Compensation in the Budget: Compensation Pending economic recovery, provide consideration to Compensation increase of 2 to 3% If market salary survey is approved, potential for some adjustments Maintain existing policies in place to address compression issues Maintain existing workforce development programs for Public Safety Minimum wage increase and the impact across pay ranges Here are some Key Focus Areas for the Budget: Some Key Focus Areas Review CIP projects to ensure funding is in line with City Council priorities Disparity Study implementation-further review and evaluate for potential needs ShortTerm Rental program-review and evaluate additional needs Resort Management Office-continue to support and further enhance the resort area per the September i resolution Opening of Burton Station will require staffing of Fire and EMS 18 December 15, 2020 14 BUDGET GUIDANCE (Continued) Here are some Key Focus Areas regarding the Hillard Heintze Recommendations after the May 31 st Tragedy: Some Key Focus Areas (cont'd) Hillard Heintze Recommendations some of which include.... Security Division within Office of Emergency Management-$94ok Efforts to centralize functions within Human Resources-$1.1.million Enhanced crisis training for employees and public safety-s400k City facility security enhancements i9 Here are some Key Focus Areas regarding Police Recruitment and Retention: Some Key Focus Areas (cont'd) Police Recruitment and Retention $7.5 million one-time statewide supplement of S99 Funding in FY zi from the Commonwealth ofVirginia Intended for recruitment and retention of sworn officers and support costs for criminal justice reform Virginia Beach's share will be known later this month or in January Maximize use of funding to implement initiatives and look to further fund initiatives in FY zz 10 December 15, 2020 15 BUDGET GUIDANCE (Continued) Here are some Key Focus Areas regarding Stormwater and Flood Control: Some Key Focus Areas (cont'd) Stormwater Continue to address Stormwater needs throughout the City Subsequent presentation today will focus on how to address city-wide flood control needs Explore alternative methods of project delivery and project timelines Work with City Council on determination of November 2021 Stormwater Bond Referendum ]1 Here are some Pandemic Relief Reserve Considerations: Pandemic Relief Reserve Considerations Consideration of any initiative previously discussed CIP Ditch and Canal Maintenance Public Defender Supplements-Dec 8 Briefing Virginia Aquarium Foundation Equipment- Dec 8 Briefing 22 December 15, 2020 16 BUDGET GUIDANCE (Continued) Here are scenarios for the Projected Deficit: Five Year Forecast Projected Deficit Baseline FY 22 Deficit ($24.9 million) Release Revenue Reserve $3.3.5 million Not Include 3%Comp $12.0 million These two actions would effectively eliminate the baseline deficit; however, still yet to evaluate additional needs by departments for existing services. 23 City Council Direction or Guidance 14 Mayor Dyer expressed his appreciation to Mr. Chatellier for the presentation. December 15, 2020 17 BOND REFERENDUM OVERVIEW 1:22 P.M. Mayor Dyer welcomed David Bradley, Deputy City Manager, Leisha Pica, Program Manager—Jacobs Engineering, Toni Utterback, Stormwater Engineering Center Administrator—Public Works, Phil Koetter, Interim Director—Public Works and Kaitlyn James,Budget and Management Services Administrator. Mr. Bradley expressed his appreciation to City Council for their continued support: TIM STORMWATER BOND REFERENDUM December 15,2020 Here is the Agenda for the presentation: Agenda J • Referendum Logistics • Flood Control ■ Stormwater Implementation Gap Analysis ■ Operations and Maintenance • Funding Scenarios and Debt Implications ■ Next Steps December 15, 2020 18 BOND REFERENDUM OVERVIEW (Continued) Here is the process for a Referendum: Referendum Logistics ■ Council can request a referendum by simple majority(6 votes) ■ Referendum for November 2021 must be filed to Circuit Court by August 13,2021 ■ After referendum passes,General Obligation(GO)Bonds will require 8 votes for authorization ■ Follow up ordinances(e.g.,appropriation and revenue)will be necessary to implement the program Here is the Currently Approved Plan with rate increases approved through FY 2026: Currently Approved Plan ■ 3.54 annual Stormwater Equivalent Residential Unit(ERU)fee increase through FY 2026 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 49.34 52.8¢ 56.34 59.84 63.3¢ 66.8¢ ■ 2.54 of the Real Estate tax is dedicated to Stormwater Operations within the General Fund ■ Funds$410.4 million Capital Improvement Plan(FY 2022 through FY 2027) 4 December 15, 2020 19 BOND REFERENDUM OVERVIEW (Continued) Here is the explanation for Tier 1 and Tier 2 Project designations: Tier 1 and Tier 2 Projects ■ Tier 1-These projects include those that are in progress and deemed higher priority due to their location in high-risk areas for street and structural flooding ■ Tier 2-These projects are"2nd Phases"of Tier 1 projects or those that are currently less defined ■ As initial referendum debt is retired,the bonding authority can be used to address Tier 2 projects Mr. Bradley turned the presentation over to Ms. Utterback: FLOOD CONTROL Toni Utterback, P.E. Stormwater Engineering Center Administrator December 15, 2020 20 BOND REFERENDUM OVERVIEW (Continued) These maps show areas with the risk offlooding, with red representing the highest probable areas for loss: Adaptation Focus Areas .i14 'r �0.� �1Set 71 4..1N),. • 4 r 88%of City's Here are a few of the Preliminary Assumptions if a Stormwater Bond Referendum were to occur: Preliminary Assumptions • Adoption of the referendum will accelerate some projects • Alternative Project Delivery Methods such as Design/Build,Construction Manager at Risk,etc may be considered • Several of the projects must be completed sequentially ■ Impact on neighborhoods due to major construction activities considered in determining project schedules s December 15, 2020 21 BOND REFERENDUM OVERVIEW (Continued) The next three(3)slides provide an overview of Tier 1 Flood Control Projects Schedules and funding requirements: Tier 1 Flood Control Project Schedule Existing Major Flood Control Projects in the CIP Estimated Total Additional Funding Construction Start Project Cost Needed to Complete Central Resort District•24th Street Culvert $5.200.000 $5.100 000 July 2024 Central Resort District Drainage Improvements $92,800.000 892.000,000 July 2027 Eastern Shore Drive-Phase I.Section 1F Improvements $1 560.000 81.560.000 July 2024 Eastern Shore Drive-Phase I.Section SG Improvements $940,000 $940,000 July 2024 Eastern Shore Drive-Poinciana Pump Station $8.200,000 $8,200,000 July 2024 Princess Anne Plaza Golf Course Conversion 883.600,000 $41.285,750 July 2022 Princess Anne Plaza North London Bridge Creek Pump Station $68.900.000 816,023,700 July 2022 The Lakes.Flood Barriers 33,600,000 $3,600,000 July 2024 The Lakes•Holland Road Gate 38,507.000 $4,548,000 July 2024 Windsor Woods Flood Barriers $14,000,000 $14,000,000 Juy 2024 Windsor Woods Pump Station _ 840,250,000 88,105.050 July 2024 Total $327,557,000 8195,362,500 Accelerated Major Flood Control Projects Fully Funded in FY21CIP Estimated Total Additional Funding Construction Start Project Cost Needed to Complete Eastern Shore Drive-Elevate Lynnhaven Drive $3 600.000 $3.600.000 July 2025 Windsor Woods•Thalia Creek/Lake Trashmore Improvements 85.200.000 85.200,000 July 2023 Total $8,800,000 88,800,000 Tier 1 Flood Control Project Schedule Major Flood Control Projects Identified in Southern Watershed Estimated Total Additional Funding Conatruction Start Project Cost Needed to Complete Pungo Ferry Road Improvements S16.120.000 816,120,000 July 2025 Sandbridge/New Bridge Intersection Improvements 87,990,000 $7,990.000 July 2028 Stormwater Green Infrastructure 340,000,000 $39.175,000 July 2025 Total 864.110,000 S63,285,030 Newly ldentified Major Flood Control Projects- Estimated Total Additional Funding Construction Start Lake Bradford/Chubb Lake Area Project Cost Needed to Complete Chubb Lake/Lake Bradford Outfall $78 200.000 $78.200.000 July 2026 Church Point/Thoroughgood BMP and Conveyance Improvements $35,900,000 835,900,000 July 2028 Total 8114.100,000 31141.00,000 December 15, 2020 22 BOND REFERENDUM OVERVIEW (Continued) Tier 1 Flood Control Project Schedule NewlyIdentified Flood Control Projects from Linkhorn Bay Master Plan Estimated Total Additional Funding Construction Start Project Coat Needed to Complete First Colonial Road and Oceans Boulevard Drainage Improvements 52.325.000 $2.325000 July 2023 Seatack Neighborhood Drainage Improvements 52.400 000 $2.400,000 July 2023 Total $4,725,000 54,725,000 SLR Project in Southern Watershed Estimated Total Additional Funding Construction Start Project Coat Needed to Complete West Neck Creek Bodge City-Wide SLR Strategy $69.000.000 $69,000.000 Jul),2028 Total 589000,000 569,000,000 Total Bond Referendum Tier 1 Flood Control Projects Total $588,292,000 c The next two (2)slides provide a look at Tier 2 Flood Control Projects with their funding requirements: Tier 2 Flood Control Projects J Estimated Total Additional Funding Major Flood Control Projects-Subsequent Phases Project Cost Needeeded''-, Eastern Shore Done Drainage Phase II $20.000 000 520.000.000 Princess Anne Plaza Little League Ballfrelds Relocation 53.800.000 53.800.000 Princess Anne Plaza Northgate 8e115elds Conversion $6,200,000 $6.200.000 Princess Anne Plaza Drainage Improvements Phase II-Storm Drainpipe Project. 539400.000 535.400.000 The Lakes Drainage Improvements Phase II-Storm Drainpipe Projects $5.700 000 S5.700.000 Windsor Woods Drainage Improvements Phase II-Storm Drainpipe Projects $58.860.000 $SB 86C'- Total 5129,980,000 5129.96. - Estimated Total Additional Funding Lake Bradford/Chubb Lake Area-Addmonal Projects Project Cost Needed to Complete Bradford Pond Outfall $35 100 000 535.100 00C Hollis Rd and Shore Dove Drainage Improvements $26,300.000 526,300.000 Lake Bradford/Chubb Lake 532.000.000 521.159.000 Northampton Blvd Drainage Improvements $10,200,000 510.200,000 Total 5103,e00,000 592,759.000 December 15, 2020 23 BOND REFERENDUM OVERVIEW (Continued) Tier 2 Flood Control Projects Additional Flood Control Projects from Linkhorn Bay Master Plan Estimated Total Additional Funding Project Cost Needed to Complete Eastern Beechwood Gardens Drainage Improvements $10.630.000 610.63.; Western Oceans Gardens Drainage Improvements $14.520,000 $14.520.000 Total 825,150,000 S25,150,000 Unidentified Projects Resuhl rig from Watershed Analyses(ESTIMATED COSTS) F-arojectd Total Addfedtol oaring Project Coat Nestled to Complete Atlantic Ocean Watershed Stormwater Projects $ $6 755 000 Elizabeth River Watershed Stormwater Projects $12800000 $11.435.000 Little Creek Watershed Stormwater Projects 88.600.000 87,600.000 Lynnhaven River Watershed Stormwater Projects 829,800.000 328.020,000 Southern Rivers Watershed Stormwater Projects 815.900,000 $8.700.000 Total 874,355,000 $62,510,000 Total Tier 2 Flood Control Projects Total $333,065,000 $310,379,000 AIM Here is are some of the Benefits of Funding and Accelerating Flood Control Projects: Benefits of Funding and Accelerating Flood Control Projects • Protection against flooding from 10-year storm - Street Flooding Reduced • Protection against flooding from 100-year storm - Structure Flooding Reduced • Protection against 1.5-ft Sea Level Rise for majority of projects • Reduced flood insurance rates 14 December 15, 2020 24 BOND REFERENDUM OVERVIEW (Continued) Here are the Operating Budget Impacts for an increase in Flood Control projects: Flood Control Operating Budget Impact ■ Increase in project load would require additional resources to include: - 6 Engineers - 4 Construction Inspectors - 2 Right of Way Agents - 4 Contracts Specialists/Administrative Technicians FY 2023 FY 2024 1 FY 2025 FY 2026 FY 2027 $1.50M $1.40M $1.43M $1.49M $1.52M Ms. Utterback turned the presentation over to Ms. Pica: STORMWATER PROGRAM IMPLEMENTATION GAP ANALYSIS Leisha Pica,Jacobs Engineering Group December 15, 2020 25 BOND REFERENDUM OVERVIEW (Continued) Here is some background on the presenter: Who is Leisha Pica? • 28 years experience ■ Professional Civil Engineer • Former Utility Deputy Director -ll . , . , • Capital Program Manager • Utility Management Consultant liv, _., ■ Engineer Bond Reports • Jacobs'Global Technology Leader for Wastewater Planning Here is the Scope of Work for Gap Analysis including the Activities and Results&Recommendations: Scope of Work for Gap Analysis Activities Results&Recommendations Prepare Technical 045 • Outdated/inefficient procedures and processes Memorandum • Organization enhancements to expedite program delivery Forecast Stormwater 03 , • Critical path activities associated with delivering the Program Needs Task FY22-FY27 Stormwater CIP • Areas for improved information and knowledge sharing Interview Select City Staff &Consu 02 i • Procurement strategies to expedite program delivery Task • Resource allocation planning for Stormwater CIP implementation Assess Recent Stormwater Program Performance • Key performance indicators appropriate for 01 developing a baseline and monitoring Task December 15, 2020 26 BOND REFERENDUM OVERVIEW (Continued) Here is an overview of the six (6)Preliminary Findings: Preliminary Findings r. 01 02� 4 0 , Excellent Duration for Non- 20-30% Opportunity Improve understanding implementing standardized staffing for reporting of needed projects project vacancies streamlining internally and system longer than _ impacting funding externally improvements average delivery approach for capacity projects Here are the Next Steps, with Step 1 already in progress: Next Steps • © Forensic analysis of historical stormwater program delivery—in progress © Recommendations for expediting stormwater bond projects © Suggestions for garnering public support of bond referendum December 15, 2020 27 BOND REFERENDUM OVERVIEW (Continued) Ms. Pica turned the presentation over to Mr. Koetter: OPERATIONS AN D MAINTENANCE Phillip Koetter, P.E. Interim Public Works Director This table provides the Maintenance Costs of Existing Infrastructure: Maintenance Costs of Existing Infrastructure I Additional J Program current Current Desired Funding 95 yr so yr zs n zon tsvr lztt l0rr err srr 2rr Funding/YR Cycle Cycle Required for Desired cycle Primary Sequin5227M ®® -$3.4M ������®®®� Infrastructure baroeerneab Canal Program $500K ERI® $15M O $5006 ®==eCEIaaa IMP Maintenance $10M ® 20rr. $200K aa_�aevaaa Enhanced Neighborhood bhabMUWa $1.2 M >90 yr. ® $8.5 M $400 K $4.0 M a1=s$10.9 M®$30.7 M 0re.4mMF diftb hbbrtwrea $1.65 M ®® $350K eaaeaaaao$350 K Sternw3 ar Puma Statham $1.25M ®® - avaaoaaaee Lake Management $4.95M EMI 90yr. •$39 M ®®aaaaevaa SWbnhcetceeacebbbalatbe $5.75M _EN '$750K avaaavaaaa CIP Ted $18.57M Funding Need '$18.6M 'Accounts for FY 22-FY 27 Maintenance Funding Reductions Due to ERU Reduction December 15, 2020 28 BOND REFERENDUM OVERVIEW (Continued) This table provides the additional funding necessary to meet the Desired Maintenance Cycle: Accelerated Existing Maintenance Costs Current Desired Additonal Funding Maintenance Maintenance Required Per FY To Cycle Cycle Achieve Accelerated Maintenance cle Primary System Infrastructure Improvements 12 Yr. 8 Yr. $3,400,000 Canal Program 95 Yr. 25 Yr. $1,500,000 BMP Maintenance 25 Yr. 20 Yr. $200,000 SW Infrastructure Rehab 95 Yr. 60 Yr. $750,000 Enhanced Neighborhood Rehabilitation 60 Yr. 15 Yr. $8,500,000 Oceanfront Facilities Maintenance 5 Yr. 2 Yr. $350,000 Lake Management 95 Yr. 50 Yr. $3,900,000 Total $18,600,000 23 Here are the projected Maintenance Costs for New Infrastructure: Maintenance Costs - New Infrastructure1 • Additional&Future SWPS$1.1M/YR • Drainage Improvement Projects$3M/YR - Ashville Park - Central Resort - North London Bridge - Culvert Improvements - Sherwood Lakes - Windsor Woods - Windsor Woods Pump Station and Tide Gate _ College Park/Level Green - Cape Story Tide Gates - The Lakes - Lynnhaven Colony - Poinciana - Eastern Shore Drive Drainage • BMP Non-CIP Funded$1M • Roadside Ditch$1M • Roadway Associated Drainage Maintenance$2M December 15, 2020 29 BOND REFERENDUM OVERVIEW (Continued) Here are the projected Maintenance Capital Costs for New Infrastructure: Maintenance Capital Costs - New Infrastructure J • Rehabilitation and Maintenance on 60-Year Cycle$500K/YR - Central Resort - Culvert Improvements - Windsor Woods - College Park/Level Green - The Lakes • Stormwater Pump Stations 15-Year Cycle$750K/YR - Ashville Park - North London Bridge - Sherwood Lakes - Windsor Woods Pump Station and Tide Gate - Cape Story Tide Gates - Lynnhaven Colony • Total annual increase needed$9.35M Mr. Koetter turned the presentation over to Ms. James: FUNDING SCENARIOS AND DEBT IMPLICATIONS Kaitlyn James Budget Administrator December 15, 2020 30 BOND REFERENDUM OVERVIEW (Continued) There is an 8Q increase in Real Estate Tax Dedication needed for Debt Service of 20-Year Bonds: Real Estate Tax Dedication 20-Year Bonds Debt Service Debt Service +Existing Debt Service +Staffing 0&M +AS O&M $455.3 M Referendum Debt Service 3.91 3.91 3.94 Additional Resources to Support Program 0.2* 0.24 0.24 $18.6 M 0&M for Existing Infrastructure 2.64 2.64 $9.35 M 0&M for New Infrastructure 1.34 Total Real Estate Dedication Needed 4.1$ 6.7$ 8.04 Real Estate dedication would be in addition to the existing 2.54 Stormwater Real Estate dedication as well as the 3.54 yearly ERU increase,approved by City Council,through FY 2026. gig-j11111111111111111111111W There is a 10.1 Q increase in Real Estate Tax Dedication needed for Debt Service of 10-Year Bonds: Real Estate Tax Dedication 10-Year Bonds Debt Service Debt Service Debt Service *Staffing Q&M°g +All O&M $455.3 M Referendum Debt Service 6.04 6.0$ 6.0$ Additional Resources to Support Program 0.24 0.2¢ 0.24 $18.6 M 0&M for Existing Infrastructure 2.64 2.64 $9.35 M 0&M for New Infrastructure 1.34 Total Real Estate Dedication Needed 6.24 8.8$ 10.14 Real Estate dedication would be in addition to the existing 2.54 Stormwater Real Estate dedication as well as the 3.54 yearly ERU increase,approved by City Council,through FY 2026. December 15, 2020 31 BOND REFERENDUM OVERVIEW (Continued) Here are the City's current Debt Metrics: Debt Metrics Metric Policy •nnual Debt Service to General Government Expenditures No greater than 10% Net Debt to Estimated Full Value of Taxable Property No greater than 3.5% Net Debt Per Capita No greater than$3,000 Net Debt Per Capita to Per Capita Personal Income No greater than 6.5% 29 Here is a look at the Impact on Debt Metrics for a 20-Year Term Bond: Impact on Debt Metrics 20-Year Term FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 • nual Debt Service to General Government Expenditures 8.9% 9.0% 9.0% 8.9% 9.1% 9.3% 9.1% 9..'• Net Debt to Estimated Full Value of Taxable Property 2.4% 2.3% 2.1% 2.0% 1.8% 1.7% 1.5% 1.4'. Net Debt Per Capita r S3 338 $3,189 $3.036 $2,793 $2,726 $2,553 $2,534 Net Debt Per Capita to Per Capita Personal Income 5.4t 5.2% 4.9% 4 5% 4 1% 3.9% 3.6% 3.2'• • Baseline Assumptions - Currently Adopted CIF'Program - Referendum related Bond Issuances every year for six years - 3.5%interest rate - 4.10 Real Estate Tax increase 30 December 15, 2020 32 BOND REFERENDUM OVERVIEW (Continued) Here is a look at the Impact on Debt Metrics for a 10-Year Term Bond: Impact on Debt Metrics 10-Year Term FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 '�FY 2029 FY 2030 Annual Debt Service to General Government Expenditures 9.0% 9.3% 9.5% 9.5% 9.8% 10.2% 10.0% 9.:• Net Debt to Estimated Full Value of Taxable Property 2.4% 2.3% 2.1% 2.0% 1.8% 1.7% 1.5% 1.4'. Net Debt Per Capita 63,437 33.338 33.189 3 3.036 $2,703 $2,726 $2,553 $2. Net Debt Per Capita to Per Capita Personal Income 5.4% 5.2% 4.9% 4.5% 41% 3.9% 3.6% 3.2' • Baseline Assumptions - Currently Adopted CIP Program - Referendum related Bond Issuances every year for six years - 3.5%interest rate - 6.24i Real Estate Tax increase The Bond Referendum cannot address Sea Level Rise projects, and could be reserved to address Tier 2 Projects: Closing Thoughts I • Referendum generally does not allow City to address sea level rise • As GO debt is retired,retired debt is included in the Charter bond calculation - these amounts can provide increased debt capacity for future projects • This bond authority could be reserved and utilized by a future City Council as capacity for Tier 2 projects and/or sea level rise • City Council discussion with Financial Advisors on debt metrics and bond issuances • Discussions between staff and Council will remain ongoing through 2021 32 December 15, 2020 33 BOND REFERENDUM OVERVIEW (Continued) City Council will need to provide direction for staff moving forward: Future Council Direction • Total amount of referendum • Projects to be included • Real Estate Tax rate dedication amount • Financing Choices - Assumed term of bonds - Assumed issuances - Assumed interest rate • Debt metric thresholds 41016111111111111.. Mayor Dyer expressed his appreciation to staff for the informative presentation. BREAK 2:05—2:14 P.M. December 15, 2020 34 CITY COUNCIL DISCUSSION 2:15 P.M. Mayor Dyer welcomed back the facilitator, Mary Jo Burchard to begin the City Council Discussion. After the Discussion,Ms.Burchard provided a conversational overview of all key points, which is attached hereto and made a part of the record Mayor Dyer expressed his appreciation to Ms. Burchard for assisting City Council in a constructive, and meaningful discussion. December 15, 2020 CONCORD LEADER BACKGROUND and EXECUTIVE SUMMARY During the City Council Workshop held on 10-27-2020 members of the Council expressed concern about a growing sense of disconnection and low clarity on their strategic direction and priorities for the coming year. A workshop was scheduled for December 15, 2020 to gain a fundamental sense of direction and priorities moving into the new year. City Manager Patrick Duhaney was also asked to provide his report and introduce a summary of his intended strategic plan. It was determined that due to the limited time and the scope and gravity of the content that needed to be covered, this workshop needed a facilitator for the budget guidance discussion. On December 11, 2020, Mayor Dyer called for the Special Meeting to be delivered by Electronic Communication Means. The first portion of the meeting included presentations on: (a)the City Manager's Report and One-Page Strategy Plan, (b)the CARES Act, (c) Budget Guidance details, and (d) the Stormwater Bond Referendum. Simple clarifications were addressed immediately, and more detailed requests for clarification were captured for use during the facilitated discussion. This Summary Report for the December 15, 2020 City Council Workshop solely highlights the key discussion points for each of the prescribed topics for the Facilitated Discussion portion of the meeting. (The meeting in its entirety was livestreamed and recorded and can be accessed HERE.)The focus of this workshop discussion was to establish clarity for the Council members and to create a shared initial understanding of the basic framework and priorities for the coming year's budget planning. Voiced "agreement" indicated acknowledgement of sufficient initial information to provide guidance in these early stages. Thus, any stated "agreement" or "disagreement" summarized in the following report solely relates to the general direction and focus of the topics in these early stages, rather than an affirmation or rejection of topics themselves. Council input therefore focused on (a) requesting or providing clarification or additional information on a topic, or (b) suggesting specific points to discuss and explore further as details on a topic emerge. The summary report includes a content summary of the discussion in following sections: PART 1 (pp. 2-7) BUDGET GUIDANCE initial conversation, including input on: • PAGE 2: Baseline Revenues (responding to slide 9) • PAGE 3: Enterprise Revenues (responding to slides 12-15) • PAGE 4: Baseline expenditures (responding to content from Slide 16) • PAGE 5: Compensation (responding to slide 17) • PAGES 6-7: City Council Priorities + Focus Areas (responding to slides 18-22) PART 2 (pp.8-9) STORMWATER BOND REFERENDUM initial conversation; discussion was limited to clarifying details RE: Projects Included (responding to slides 9- 13), although a single recommendation was submitted in the initial presentation, RE: Financing Details (slides 27-31). Wage Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER Part 1 : BUDGET GUIDANCE Following the initial Budget Guidance presentation, a single clarification was proposed for future discussion: General Fund Reserves are currently at 12%; in future discussions, can we consider allocation options for any extra funds in the General Fund Reserves? For the Facilitated Discussion, input was requested through a roll-call invitation to weigh in if any specifics particularly resonated, needed clarification, or caused concern, or if they wished to add a point for future Council discussion on the topic. Stated "agreement" referred to the general direction and focus of the information delivered in the early stage, rather than the details themselves; silence did not imply dissent. The following is a summary of the key themes that emerged from the Councilmembers' responses. BASELINE REVENUES (responding to slide 9) CLARIFICATION: • Regarding the tax rate increase, what assumptions are we starting with? o Answer: Budget team works closely with the Assessor's office. The initial number guiding the real estate estimate is 3%, but again, this is just an initial number. Right now, we are just looking more for general guidance from Council, as the official number has not been established. CONCERNS+ ISSUES FOR DISCUSSION: • Establishing fee rate based on assessor's predictions:The rapid pace of real estate turnover may be a short-lived phenomenon and could create an artificial "demand" that could compromise assessment rate predictions. This could have long-term impact on citizens if fees are based on temporarily inflated numbers. • Stormwater fees: Bullet #2 of Slide 9, which suggests a "review of departmental fees for services or programs to ensure they remain competitive" caused concern regarding stormwater fees. Specific concerns that Council wishes to discuss further: o If the fees are increased, can we provide relief elsewhere? o Can we find alternative funding sources beyond fees? • General fund reserves: Reserves are currently at 12%. We need directional discussion to determine disbursement strategy for any additional general fund reserves that move above target. Wage Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER ENTERPRISE REVENUES (responding to slide 9) CONCERNS + ISSUES FOR DISCUSSION: This discussion was solely focused on (a) stormwater fees and (b) revisiting unfunded projects and impact of these decisions. Storm water fees: Consensus is that this is an issue of top priority for discussion. (this is discussed further on PAGE X) o It looks like the entire stormwater project is based on fees. If it is not based on fees, how will we pay for it? ■ Can we consider using CARES Act monies to fund the project? ■ Can we consider making this a General Fund item —cap the current rate and move to General Fund? ■ What other alternative sources of revenue for stormwater (beyond fees) should be considered and pursued as priority? Reviewing and revisiting unselected/unfunded projects: o We need to know what did not get paid for in the last budget, and the impact of those decisions upon the City and community. Wage Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER BASELINE EXPENDITURES (responding to slide 16) CONCERNS + ISSUES FOR DISCUSSION: The top three concerns echoed in Council members' responses were related to (a) prioritization, (b) funding sources, and (c) exploring efficiencies. • Prioritization: o Until COVID reality subsides, it will impact funding priorities. We need to discuss this impact face to face. o We need to discuss how we evaluate/prioritize expenditures, and potentially re- prioritize of programs and services based on capacity to demonstrate their effectiveness/that they are working. o Programs and services need to be more than maintained. We need to be building to accommodate the growth we are experiencing. o Balance in the details: Evaluate spending priorities and create funding through efficiencies • Funding sources: o It all comes down to funding: How will we fund these programs and services? o What funding alternatives are we pursuing? What alternatives are yet to be explored and pursued? o Because of the importance of economic development, we need to minimize the weight of funding placed on citizens. We need further clarification on Tier 1 and Tier 2 expenditures on CIP moving forward. o Efficiencies as a funding source should be realistic. We will need to accept risk, but it should be measured risk, and we need to engage the public about this risk. • Exploring efficiencies: o Consider/discuss re-introducing opportunities for employees and citizens to give ideas for efficiencies, since they are on the front-lines and can witness small but scalable areas of waste and redundancy. o What cost-saving measures can we deploy? Looking forward to future specific recommendations Wage Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER COMPENSATION (responding to slide 17) CONCERNS+ ISSUES FOR DISCUSSION: Council was in agreement that this issue is a top priority for discussion, citing both staffing challenges and structural challenges related to compensation.The top discussion concerns echoed in Council members' responses were related to (a) framing the compensation discussion in terms of"TOTAL" compensation and (b) strategic use of the salary survey to remain market-competitive "TOTAL"compensation: o We need to be discussing and evaluating/comparing compensation to the outside market based on the total compensation package, rather than salary compensation alone. Many private sector jobs pay higher salary but lack job security, retirement, health insurance, etc. We need to make sure we are comparing "apples to apples." o We need to explore ways to increase incentives without increasing cost through more flexible policies that touch today's employee needs and values. o Training that increases employee contribution (grow our own SMEs) in hard-to- recruit skills can be both an employee incentive and a cost efficiency. For example, we need more employees trained in data analytics. We should explore training our own employees in data analytics to help the city understand itself. o We need to consider outsourcing options for areas deemed appropriate, to reduce costs and optimize compensation for functions that are most effective and efficient in-house. o Compensation discussion needs to include both City and School employee compensation. Salary survey: o We need to get all crucial details on the market salary survey results in time to consider them for the budget. We need to be able to compare what we are doing with the marketplace realities, keeping "total compensation" in mind. o We need to appreciate the employee perception of under-compensation while cultivating an awareness of the shared reality of being "undercompensated" within the private sector. "Total compensation" is key to the discussion and evaluation process. Wage Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER CITY COUNCIL PRIORITIES + FOCUS AREAS (responding to slides 18-22) CONCERNS+ ISSUES FOR DISCUSSION: This was an initial/introductory discussion of proposed key priorities and focused areas. Council input focused on (a) affirming topics that particularly resonated; (b) requesting or providing clarification or additional information on a topic, and/or (c) suggesting additional points to discuss and explore further as details on a topic emerge. Expressed "agreement" solely related to the general direction and focus of the topics in these early stages, rather than an affirmation of all details. The focus areas that were specifically affirmed and/or excited Councilmembers to see on the list included: (1) Stormwater needs/critical flooding needs (5 mentions); comments included: a. We are missing a discussion of outside funding for stormwater needs (state/federal grants, etc.) b. We need to discuss finding a dedicated person to identify outside opportunities and alternative funding sources. We can assess the risk of each opportunity and compete for outside funds. c. We need to be sure we balance funding between new programs and maintenance (2) Disparity study (5 mentions); comments included: a. How do we function as a government and as a community? We need to be intentionally inclusive. b. Consider impact of all policies and decisions on the City's diversity and inclusivity (3) Hilliard Heintz recommendations (4 mentions); comments included: a. Hilliard Heintz findings can provide reassurance and perspective to employees. b. We need to focus on rebuilding our infrastructure and our staff. c. The Hilliard Heintz recommendations should be a serious priority. (4) Short-term rental program review and evaluation (4 mentions); comments included: a. STR enforcement must be in place before Memorial Day. b. STR enforcement is necessary; it needs to be fair to all who are impacted. (5) Police Recruitment and Retention/Public Safety(4 mentions); comments included: a. Public safety compensation should be top priority b. We should consider restoring expansion with police department c. Public Safety should get special attention because it represents our key purpose for existence as a government (6) Pandemic Relief Reserve Considerations (2 mentions); comments included: a. COVID will continue to impact our city. b. We need to make sure people are fed and small businesses need help to survive. (7) Resort management office (1 mention); Burton Station staffing (1 mention) 6 Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER Additional "big picture" comments related to Council's desired focus and priorities included discussion of: (a) focus on purpose/impact, (b) compensation, and (c) economic development. Below is a summary of the discussion points made in these key themes FOCUS ON PURPOSE/IMPACT: o We should begin with a focus on our primary purpose of existence as a government, which is to keep our people safe. Accordingly, public safety and stormwater need to be given priority attention. o Is discretionary money left?Are there places to reallocate money to mitigate risk for maximum impact? COMPENSATION: o We need to be more adaptive in compensation structure. o Rebuilding our staff means we need to determine how to best compensate across the board(total compensation). o We need a disciplined compensation structure that we can explain to the public. o Affordability for public safety and teachers should be considered when we discuss compensation. ECONOMIC DEVELOPMENT: o We need to have an innovative examination of how we approach economic development. o We need to look at both short-term and long-term solutions related to sustainable economic development. For example, a long-term challenge is that—though we have numerous colleges here, college graduates cannot find local jobs. We need to be looking for businesses that can provide career-level jobs and be high revenue sources in the community. o We have an advantage in solving our economic issues by the nature of where we are. o Strategic economic development can help create revenues to address needs o tourism/oceanfront development is crucial in our economic development plan o We need to address economic development wisely, spending money where it is needed most (metrics?) 7 I Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER Part 2: STORMWATER BOND REFERENDUM Because this was just an initial/introductory presentation, discussion was limited to clarifying details RE: Projects Included (responding to slides 9-13), although a single recommendation was submitted in the initial presentation, RE: Financing Details (slides 27-31). PROJECTS INCLUDED CLARIFICATIONS: Storm water Green Infrastructure. You will notice a Stormwater Green Infrastructure item in the southern watershed. This is something you have not seen before. If you are wondering how we could possibly invest that much money in green infrastructure project, here is the necessary background and funding information. • Background:This new project is essentially marsh restoration and SAV restoration, bundled with other things that can help flood mitigation in the Back Bay/North Bay areas in the short-term. At the time we adopted the 2019 budget in May, Dewberry agreed to conduct an additional study to see if the flooding could be in any way ameliorated somewhat in the Back Bay and North Bay areas. It was included in budget comments that they would proceed. During the summer of 2019, Dewberry conducted a series of focus groups of folks in the southern watershed who shared their ideas and questions related to flood mitigation. Dewberry looked at all the suggestions provided in the focus groups (e.g., considering an inlet, a major pump, siphons, marsh restoration, etc.). After extensive analysis, the preliminary results (released this last month, and included in draft form) suggested three major engineering solutions and a natural mitigation recommendation.The study determined that 2.7 billion cubic ft. of water would need to be displaced from Back Bay to the ocean for any of the engineering solutions to be possible. So we must consider these engineering options long-term solutions. However, marsh restoration and SAV (green infrastructure) restoration does offer some hope in the short term, and this was reflected in the Tier 1 flood control projects for the first time today. • Funding: Last year, we applied for a federal grant to begin some of that work. We did not get the funding last year, but we were awarded $135K this year to begin a pilot program with that.This Stormwater Green Infrastructure item in the Flood Control projects in the southern watershed is a very real opportunity to do something meaningful to help the Back Bay/North Bay areas with flood mitigation. Of course, the findings and recommendations are very preliminary, but once they have been refined in the next few months, this can become a great opportunity to get funding from other sources—particularly when we have existing funded projects (which this will be). Now that we have been awarded the $135K, we should be positioned to get more monies. Additionally, green infrastructure is a major component of the state Master Plan that Governor Northam is asking to be developed this year, and since we already have a funded project in progress, we should have more opportunities to compete for state funding as well. When we look at this with the partnering that we are allowed, it shows great promise and should encourage constituents that they were heard and we are making progress. Wage Concord Solutions, LLC Dr.Burchard@ConcordLeader.com CONCORD LEADER REQUESTED ADDITIONS: • Visually portray the risk mitigation. Legacy system won't address the current threat. We should be able to show the visual model comparisons to the public. • We are missing the articulated consequences of INACTION: o Initial loss o Long-term loss • Produce index scoring: How did the projects get selected? Show the science used for the determination. • Find a better way to communicate with the public to show how we are protecting their collateral. Residents want to see where previous funding has been spent, and progress made in flood mitigation. FINANCING DETAILS (slides 27-31)Though financing choices were not discussed, a single recommendation was made following the initial presentation. CONCERN/ISSUE FOR DISCUSSION: • Currently the assumed interest rate is 3.5%. However, since determination of a "conservative" rate can vary, an interest rate range is suggested. Wage Page Concord Solutions, LLC Dr.Burchard@ConcordLeader.com 35 ADJOURNMENT Mayor Robert M. Dyer DECLARED the City Council Meeting ADJOURNED at 4:21 P.M. Terri H. Chelius Chief Deputy City Clerk An da nes, MMC City Clerk December 15, 2020