HomeMy WebLinkAboutOCTOBER 11, 2022 FORMAL SESSION MINUTES r t A Bic.,y 4°dC
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VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
October 11, 2022
Mayor Robert M. Dyer called to order the CITY COUNCIL MEETING in the City Council Conference
Room, City Hall, on Tuesday, October 11, 2022, at 2:31 P.M
Council Members Present:
Michael F. Berlucchi, Linwood O. Branch, Mayor Robert M. Dyer,
Barbara M. Henley, N. D. "Rocky"Holcomb, Delceno C. Miles, John D.
Moss, Guy K. Tower, Vice Mayor Rosemary Wilson and Sabrina D.
Wooten
Council Members Absent:
Aaron R. Rouse-Arrived at 2:39 P.M
2
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
2:32 P.M.
Mayor Dyer welcomed David Rose, Senior Vice President—Manager of Public Finance and Kyle Laux,
Senior Vice President—Davenport& Company. Mr. Rose expressed his appreciation to City Council for
their continued support:
DAVENPORT IN
PUBLIC FINANCE
City of Virginia Beach, Virginia
Debt Management&Planned Capital Funding Strategies/Next Steps
cwa
Virginia Beach
Introduction
> Davenport&Company LLC("Davenport"),headquartered in Richmond,Virginia with offices in Virginia
Beach and other Hampton Roads communities,is a 160+year old,independent,privately-owned
investment advisory firm.
> Davenport serves as an independent,Financial Advisor to more cities,counties and towns in Virginia than
all other Financial Advisory firms.
> Davenport has been working alongside Virginia Beach(the"City")Staff over the preceding months to
review the City's overall financing strategies,plans,and policies,with specific focus on Tax-Supported Debt
(i.e.Charter Bonds,Public Facility Revenue Bonds,and Referendum-Authorized Flood Mitigation G.O.
Bonds)and its resulting effect on the City's credit standing and debt capacity.
OIIBNP9RT,
October 11, 2022
3
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Purpose of the Meeting XB
1. One of the three National Credit Rating Agencies(Moody's,which currently rates the City's outstanding
debt)is in the process of updating it's rating criteria and methodology regarding local governments,such
as the City.
2. The City's debt-related financial policy guidelines are roughly 30 years old and should be revisited.
• Davenport reviewed the City's Adopted Financial Policies and will provide recommendations of
proposed amendments in order to update these policies to reflect the most current credit rating
criteria and"best-practices".
3. In addition to the City's recently approved referendum in support of Flood Mitigation Projects,the City has
a myriad of other capital projects that City Council has expressed a desire to consider undertaking(i.e.
schools,strategic economic development,tourism,parks and recreation,local infrastructure,aquarium,
among others).
• Davenport has analyzed the City's current and projected debt capacity/affordability and will identify a
range of additional capital funding the City can responsibly bear.
• Debt Capacity refers to compliance with debt-related financial policies and industry wide'best-practices'.
• Debt Affordability refers to the cash-flow impact of debt on current and future annual budgets.
DAVENPORT III
Here is the Credit Rating Background:
Credit Rating Background XB
> The City enjoys'Aaa'credit ratings from all three of the National Credit Rating Agencies(the"Rating
Agencies").These credit ratings serve as a barometer for the Financial,Economic,Demographic,and
Management standing of the City.
> These'Aaa'credit ratings are the highest possible credit ratings a local government can achieve.
basun Fitch
Top Tier'Highest Possible ( Aaa AAA AAA I
Rating" - —
Aa1 AA+ AA+ (Highest)
2n°Tier"Very Strong" Aa2 AA AA (Middle)
Aa3 AA- AA- (Lowest)
Al A+ A+ (Highest)
3r°Tier"Strong" A2 A A (Middle)
A3 A- A- (Lowest)
Co^s'cered
4"Tier"Adequate Baal BBB+ BBB+ (Highest) Irvestrient
Capacity to Repay" Baal BBB BBB (Middle) Grade
Baa3 BBB- BBB- (Lowest)
Below
5'-l0'"Tiers'Below -vestment
Investment Grade" BB,B,CCC,CC,C,D G-ace
DAVENPORT "",a•••••pnr,C,••,,..a.Moody•.••.a„�.•. •••e,•.,.,..,..,. •-- - —
October 11, 2022
4
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Credit Rating Overview
Vigpnia Bear}I
> The City's credit ratings reflect distinct credit strengths including:
• "Sizeable,growing,and diverse tax base benefiting from stabilizing institutional presence;
• Comprehensive financial policies and conservative budgeting practices;and
• Manageable overall fixed cost burden."
> While the City is not in the position to receive a credit rating upgrade,Rating Agencies(in this case
Moody's)provide a series of factors that the City should continue to monitor in order to reduce the
possibility of a credit downgrade,as follows:
• "Deterioration of fund balance or liquidity resulting in reduced financial flexibility;
• Material increase in debt burden;and
• Significant contraction in tax base and weakened resident income levels."
f1r/OVf•M7r boas Macey•If*.Mow*Geri Om 41a40 M'M 2021
Here are the City-Specific Challenges:
City-Specific Challenges V13
> The City has identified a robust borrowing program in support of the Adopted Capital Improvement
Program('CIP").The borrowing programs involved consist of:
• Charter Bonds and Public Facility Revenue >,
Bonds("PFRB"); Tax-Supported 7
• Recently-approved Referendum for Flood
Mitigation($567.5*million in Charter Bonds);
• Stormwater Revenue Bonds;and
Self-Supporting
• Water&Sewer Revenue Bonds.
• The City is undertaking a historic amount of capital investment for generational projects.As such,it will
continue to be a challenge to prevent compromising the City's'Aaa'standing while minimizing the burden
on future City budgets.
�t�p ^rnr w M1eie"Oum eVlmwea nr a•wae a w w/%I S inllbn n CMn«loM•n waseM1 a IIooE aepan GOp[L owe a n«e•solw.Mr w nroI mN a,
IJAON T vaea•.ra..w+INnPaera wlan+n a.w.,ea
October 11, 2022
5
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Mr. Rose turned the presentation over to Mr. Laux to provide an overview of the City's Self-Imposed
Financial Policies:
Self-Imposed Financial Policies
VRgid6limb
> The City has established debt-related financial policies in order to maintain"best-practice"financial
management and minimize the overall debt burden.These policies include:
Polhey/Metnc Not to Excec'
Net Debt to Per Capita Income - 6.5%
Net Debt to Assessed Real Estate Value - 3 5%
Debt Service to General Government Expenditures - 10%
Net Debt Per Capita - $3,000
• These metrics were originally established in 1992.
• Debt Service to General Government Expenditures was most recently modified in 2006.
• Net Debt Per Capita was most recently modified in 2016.
• The Rating Agencies periodically review/update the criteria they use to rate local governments such as the
City.The Rating Agencies have updated their criteria multiple times since the City's Policies were
established/adopted.
i> Note:Moody's is currently in the process of reviewing/updating its credit rating criteria regarding local
governments.(See Appendix for additional detail)
5lo.,u r.tyn wx.
DAVENPORT ftc. ouiry.Crw.Ot.r.un/mrt omK m le.w
nAt clr.w..f
The City's Tax-Supported debt totals roughly$900-Million:
Existing Tax-Supported Debt Profile
\'ir3;inie 5C4d'
• The City's Tax-Supported debt currently totals roughly E900 million.It is repaid rapidly(i.e.10-year payout
ratio of approximately 75%).12'
✓ The City's Water and Sewer Enterprise Fund and Stormwater Utility Enterprise Fund are both self-
supporting Utility Enterprise Funds that do not rely on the General Fund support.As such,they do not
count against the City's"Tax-Supported"debt ratios.
Tax-Supported Debt ProfileIlt
2023 99987897 36.490,159 136.478057
• 31600 2024 94.304 239 31.9974 126.174.212
8140 0 .25 83 710 117 27.570.540 111.280.757 31%
2026 _74.241103 23.620077 97.8613a0 39,
f 120 0 2027 68.955.666 20.180 326 59.115 992
11000 2028 64.564.719 17.107.348 81672.066
2029 maw.814 14.469.763 68.328 578
380 0 2030 50.098.8. 12..3.3. 62152.134 65%
2031 17.09p p00 9886 5e 1 56.976.561
$600 2032 42475.000 6.100.969 50.575969 7e-
2033 39785000 8.491311 46.276114 8!"
37
f40 0 11111111111
'''"a1 a3 .2036 2�2 645000 2824 3078'213 2s 734 31 -90
120f
er n s p tv e;;R; ; .I i i 2036 21920.000 1437.925 23.357925 _98%_.
RR R R£ R R 1039 17.565.000 e69 700 18474 700 07%
2040 17.565000 480.125 18.085.125-
■Prrocv l .1ntema -2041 4.745000 142250 4.887.250 _99%-
2042 4.740.000 47.400 4.787.400 100%
.,.c,n n�M�.o,..�,a...,,.a w+or.�no•l o.n.m...a,o�.a"e.a nr.W...aKroni ww.a"l
DA1'FN PORT us so.,a on._.sut"m.nt.W e,C4,surf
October 11, 2022
6
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
The next few slides provide Existing Debt Ratios:
Existing Debt Ratios 1/13
Debt Service to General Government Expenditures Virginia
Category Commentary
• Existing Debt Service vs.Expenditures
LxSupported DlbtServiAvs.Exoend±ft s FY 2023 6 32`-
:1oa
ACM
• General Government Expenditures(1)
toe
• FY 2023 $2 158.740.980
IIIIII
ao+
.os
• Rating Agency Criteria for General Obligation Credits
i o, defines categories of Debt Service to Governmental
ME
Expenditures■■.—— Expenditures as
now p •
a R R R Ti R R . Very Strong(Aaa). <8.00%
Strong(As) 8 01%-15.00%
Fasting DBw Upend Writs roes 10. . Moderate(A). 15.01%-25.00%
Very Poor(Baa) >35 00%
IOW
Y..b.rt«a cow.cte.Y tY sl.aa,m ck..
IWENPO il�Fr:on r.D85MuroNs�]sa-)c sac PO,Gar Y,tr lu.umdu ro.:.. •
��� �/n.w�ctRlTI
Existing Debt Ratios
Net Debt to Assessed Real Estate Value
Category Commentary
• Existing Debt vs Assessed Value
Tax-Supported Debt vs Assessed Value . Fr 2023 115%
one • Assessed Valuer
aw
FY 2023 $69 634 327 30C
251
gas • Rating Agency Criteria for General Obligation Credits
tas defines categories of Debt to Assessed Values as-
te" . Very Strong(Aaa) <0 75%
gas
am 11111'',,�������_ • Strong(Aa) 0.75°A-1.75%
• Moderate(A) 1 75'i-4 00%
=Exaltng Debt vs Assessed vawe Poliq-3 5% Very Poor(Baa). >4 00%
Y.Y.
-Yo•q.Gtno peg Yttq.,r+eucn Serra
nAVEtrEr
. ill rY 103)N,wM t,ut ttr GY SYY•uumK to�a)M•n.,...
October 11, 2022
7
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Existing Debt Ratios
Net Debt Per Capita sma
Tax-Supported Net Debt Per Capita
Category Commentary
S5020 • Existing Net Debt Per Capita
P�w s
FY 2023 F, -
Pa m0
81600 • Population..
f1O00 . FY 2023 464
t�o0
1111111,I■11M..— • Net Debt Per Capita is no longer a primary
t0 consideration for the Rating Agencies
am basting Debt Nor CSO$. -CHy Pok.7•$3.000
DAVENPORT° a.._.,<,•.mR._ _,._s...._.,
Existing Debt Ratios
Net Debt to Per Capita Income Virginia
Tax-Supported Net Debt to Per Capita Income
/O" Category Commentary
60 t • Existing Net Debt to Per Capita Income
sox
i FY 2023. 2 61`.-
t0.
D0` • Per Capita Income.
sm
tv F1 2023 $66 269
, - g; Ho • Net Debt to Per Capita Income is no longer a primary
f m a - R R R € t2 R R �C consideration for the Rating Agencies
M5dser%Debt a room*P4rPO. —ClryPOW-•a%
DAVENPORT® uirra02)Pert ca..MOW*Men pet ws ..,c eF•.avis...wy
October 11, 2022
8
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#733 79
(Continued)
The next three (3)slides provide Peer "Aaa"Comparatives:
'NBPeer`Aaa'Comparatives
Direct Net Debt as%of Full Value
Direct Net Debt as%of Full Value
ay p.a Bean, J
.--(Current City Policy'
mm3aa Ma cam_teen 1 1
we.. ,a.aaa.McOe• 13
Vagr:a Aaa Utes Meow OEM
feb CNolCh 37
Fs Fla 19
Virginia'Aaa Cities(Moody s)
Chewed. ZI:21
ver". l o
cxuoelea ae ai
00 10 20 30 40
Percent CO
Sown M .MFPI.CmFwe 404 rewM�ar�4D4 Ma,.ai narxmaDon�06 JG,3G:li
DAVENPORT a,nwwa w.cme..w aroc..0 wwr4n.ewe aoo 000 xe wo.D,•lo,.mw.4 Dew
Peer`Aaa'Comparatives
Debt Service as%of Operating Expenditures WakesM.a
Debt Service as%of Operating Expenditures
Ve r.Beacn G3 _ a Current City Policy•
Iratmel Aae(1ra Medan EISI
KpaeAr CO3es MCAT, 79
Varna Aae Fries Medm
veae
Fart_ 90 Ti]
Virginia'Asa'Cities(Moody's) snow ao
U krloam Fee 5 9_
'°eia{sle 60__
00 60 100 16.0 200
PM0e01x1
Sewea Yooe,.MFM Dwea+e M n mWm4en�Ga/d0/]0331
DAVENPORT` "au 4 a»ea.ea wt.ro:ee.n.e w1.« 0...;o000 a..aa.a.«,KM.ea.
October 11, 2022
9
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
'NBPeer`Aaa'Comparatives
1'nassigned Fund Balance as%of Revenue vb.�..�
Unassigned Fund Balance as%of Revenue
v.b•aear.l,> Current Policy:8%to
12%of the following
year's projected
Mcnw Aw 111ep wears
revenues.
wr on Aea Canoes Medan mg
Vaa',n ae.ones Me bon
store 343
Virginia'Aaa'Cities(Moody's) — /of. 11Henna nE
ApnA+'bca u4 _—_
a..ar.r. u2 1
0.0 50 100 150 200 250 300 050 400
R.ocrx r:,�
eoMw WM.a woo o.apav Mos/mom,ono..Iwnool.formnw 406/30y20111
.11 swap.Na CA.vap ano census aoonYlon.pow 300 000 9aa NpaNn M weroonal.41
DAVENPORT 0 21.•n0 a.wp.wa w m n 2022 ertne.n ana.nawNa reat,a n0000t caanaa
tag
Tax-Supported Borrowing Program 71/453
\'vyiria Beach
> In support of the City's Adopted CIP,the aggregate TaxSuppor16d Borrowingpl 8m
Tax-Supported borrowing program contemplates 3400
financing roughly$1.75 billion over the next decade. boo
s400
> This compares to the historical issuances of the City '260
over the previous decade totaling over 885
approximately$810 million. "So
• The dollar value of identified projects has t1U" 11111111m.111_
increased materially due in part from general t50
inflation in addition to the inter-generational 2023 2024 2026 2026 1077 X00 2020 2030 2031•2033
Flood Mitigation Program. aorw■PFA6•npm
A 8 C D.A+B+C
Total $ 538.439.030 646.381.888 567.500.000 175.3 888-
2023 - 120.000.000 137.273.027 257.273.027
2024 130.000000 � -_.---130.000.000
2025 160.000.000 160.000.000
2026 130 000000—T_- 80.294.308 210.294 308
2027 _ - - 160.000.000. - 160.000000
2028 -_ 130.000.000 - 234.114 860 364 114.860
2029 • 184 473 342 - 184.473.342
2030 111 972 004 115.817 805 227 789 809
2031 15 808 526 - 15.808.526
2032 36 467 026 - - 36 467 026
2033 - 6.100.000 - 6.100.009
DANTNPORT® Guns acs RI!nawae.d.eu.pan. I,CA,sun Hood...,>n<e ann.ni.,....nn.,a.tn..moos on mot.o noa. Spa.AI
October 11, 2022
10
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
The next two (2)slides summarize the Flood Mitigation Funding Strategy:
Flood Mitigation Funding Strategy
Virginia Brad:
City Staff and Jacobs Engineering Group("Jacobs")prepared an initial spending timeline for Flood
Mitigation Projects and built in potential cost escalations to build in the potential for inflationary pressures
(roughly 30%increase factored in below).
Flood Mitigation Spending Estimate
�f ifiG 0
traoc Estimate for Inflation Cost
Woe Escalation(Roughty 30%)*
f IrKO
;E u
;.t]c . ' ' ' ' I a1
Initial Spending Estimate
s�o
xa.r..a�n�.x�n nit.war m�e xav aun an3i�..,�
•a.,Sae M,na flamer •Fa amge y lnfisoo.•(oA f„r4non
As the plan spans over roughly a decade(in which timing and costs will inevitably shift),the estimated
spending translates into a borrowing program that the City may want to consider using interim financing that
will transition into permanent financing.
■ Interim financing is a strategic borrowing tool the City should consider utilizing as it provides funds
when spending actually occurs and allows the City to incrementally increase debt service.
DAVENPORT an ''M"t'on ammxen a...na,y and anateuto onana
Flood Mitigation Funding Strategy(cont.)
Visiim Ili ad
> Given the likelihood of inflation-related cost escalation on flood projects over the next decade,the City
should consider a variety of tools and strategies to manage the impact to debt capacity and debt
affordability.
> To the extent inflationary pressures persist as is currently projected,the initial revenue source identified to
fund the Flood Mitigation Program may not be sufficient under the City's traditional method of financing.
> Davenport recommends a thorough and careful review of projected flood expenditures versus currently
identified revenues.
• This can be initiated late calendar year 2022 leading into the FY 2024 budget process.
DAVENPORT
October 11, 2022
11
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
This slide highlights the need to update the City's Debt Policies:
Revisiting the City's Debt Policies Vi3
Virginia Beata
➢ The City's Debt Policies were originally established in 1992 and two of the four policies have not been
updated since.
> Rating Agencies place a heavy emphasis on Net Debt vs.Assessed Value and Debt Service vs.
Governmental Expenditures.
The Rating Agencies no longer use Net Debt Per Capita and Net Debt to Per Capita Income in their
respective evaluations.
Rating Agencies do put an emphasis on total liabilities(i.e.fixed costs of a local government).As such,
they incorporate long-term debt,leases,annual pension costs,and other post-employment benefits
("OPEB")costs.
• Davenport recommends the City consider amending its Debt Policies to coincide with the most recent
"best-practices"of the Rating Agencies.
DAVENPORT In
The next few slides provide Existing and Proposed Amendments to Debt Policies:
Existing and Proposed Amendments to Debt Policies
Policy/Metric I xisting Policy Amended Policy
Net Debt to Assessed Real Estate
Value Not to exceed 3.5%. Not to exceed 3.0%.
Debt Service to General
Not to exceed 10.0%. Not to exceed 10.0%.
Government Expenditures
Fixed Costs to General N/A. Not to exceed 20.0%.
Government Expenditures
10-Year Payout Ratio N/A. Remain above 50%.
Net Debt Per Capita Not to exceed$3,CC0. Discontinue the policy.Outdated
and no longer applicabie.
Net Debt to Per Capita Income Not to exceed 6.5%. Discontinue the policy.Outdated
and no longer applicable.
- Note:Davenport recommends that these policies are reviewed annualy for compliance and every three to
four years for conformity with"best-practices".
DAVFNPORT
October 11, 2022
12
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Amended Projected Debt Policies(Incorporating CIP)
Debt Service to General Government Expenditures Beath
Category Commentary
• Projected Debt Service vs.Expenditures
Debt Service vs.Exoenditures V FY 2023 6 43%
°n
b Ds • General Government Expenditures11.
ao+-
FY 2023 $2 158 740.980
• Rating Agency Criteria for General Obligation Credits
E
���� i Very Strong(Aa4 <8.00%
k R R R R RkC�C t
• Strong(Aa) 8 01%-15 00%
nyo.+urtr Ee n[xa.eas.ssy
115.440Pronoun ft. r,r s. Ww... Moderate(A) 15 OS%-25 00%
a. nc 1..tyn,or 1,rgwnYu.n
�xr rrs.
• Very Poor(Baa) >35.00%
FY.23 EapMwrM pond.0y Cq aurc
Assumes 31•c**,0«yn•r
SW**.{Paa•C.**la Genera,0EY**an Crean
Amended Projected Debt Policies(Incorporating CIP) NN3
Net Debt to Assessed Real Estate Value Virginia lead
Category Commentary
• Projected Debt vs.Assessed Value
Net Debt vs.Assessed Value . FY2023 152`0
4.
air • Assessed Value13)
�e►
FY 2023 $69 634.327 300
u.
20a
• Rating Agency Criteria for General Obligation Credits
15+ 'Iiiii
III
defines categories of Debt to Assessed Values as
10•
Very Strong(Aaa) <0.75%
Ob%
ooa iiIII1iiiiii,, ,,.
, Strong(Aa) 0.75%-1.75%
a�r.«.arwa •• Moderate(A) 1 75%-4 00%
.+440 Pp..MID QrroM A.rowl.14.3 we.
�r+maaanmewa.++r�.�owu r Very Poor(Baa) >4 00%
=1
N,aes 4rr0•d10 3
Fr,3 nsseSJea S."
mes J1 AV•oath oar renr
N^opus�•2r:a Id Ge+r•'Ltrgn,�n^reatt
DAVENPORT
October 11, 2022
13
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Amended Projected Debt Policies(Incorporating CIP)
Fixed Costs Ratio
Fixed Costs Ratio
Category Commentary
• Projected Fixed Cost Ratio
max Fr 2023 13 20
• General Government Expenditures(1)
FY 2023 $2.158,740,98C
,w R R p p #
v i R R R E i i R Q i z i n F, • The Rating Agencies consider fixed costs below 20%
to be strong
E, Atts-nee Parana es rsoctml.nta IIIIMIrwra cs n r a s„ma
•send MN.I.Its_f4epdeY'f emmliry04MPfRe I.es is .ere
.+tied FARO RS es iidpe(M OM el LtseNPwae
ten-raved P. 20s
- ss,sn.ureS per Cry Stan.5ume0 tO gr..3 0%anmgly
ertvon end OPEB OCSU Sourced from FY2021 Au.end aswmep to.0,•3 0%ann.,
a.e_[..,e soh^.•^.er..n„r M.T,e::+-e.a�a a..e
DAVENPORT
Amended Projected Debt Policies(Incorporating CIP)
io-Year Payout Ratio
10-Year Pffout Ram
par u.
Category Commentary
eom
SOS' • Projected 10-Year Payout Ratio
Tqq
US - FY 2023
ti.
SO Oa • RatingAgencies
Ag typically consider a payout ratio a'.
or above 50%to be strong
1nM
rlR
f,OL
`BaSeO on eats,Sept per Statements and Wcumnu prwmM OY city sUfl
Propos.debt refs...Co...arts City nntOrm.patb[C-s a 20 seers kv<�
..-.a•.-.,r ¢ ,:tn.n{n�mlundmg 9trat«Ifor me FpoS Mrt`tm Proparr,
EWE NPOR'T am ..
October 11, 2022
14
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Here are Concluding Observations/Recommendations:
Concluding Observations/Recommendations \43
VirEinia Reads
The City's amended financial policies would provide capacity to shoulder additional debt(to the extent
capital projects are identified),while maintaining"best-practice"debt management in line with updated
rating methodologies.
• In addition,the City has the capacity to fund in the range of$250 million of Tax-Supported projects
while maintaining compliance with the updated financial policies;and
• This range of borrowing should have little to no impact to debt affordability if managed strategically.
The success of the Flood Mitigation Program will require annual review of project spending,timing,cost
escalation,etc.in order to minimize or eliminate the need for additional revenues.
DAVENPORT■
Concluding Observations/Recommendations(cont.)
Acknowledging that the City's CIP has grown substantially compared to recent history,periodically updating
the Rating Agencies with updated information continues to be integral to protecting the City's hard-earned
Credit Ratings.
> Davenport recommends the City revisit capital budgeting practices and procedures in an effort to achieve
a more efficient funding plan of capital projects.
• Davenport recommends the City Leadership meet with the National Credit Rating Agencies later this Fall to
review our proposed funding plan(s),timing of such,and proposed amendments/enhancement to existing
Financial Policy Guidelines.
DAVENPORT' ---
October 11, 2022
15
CITY COUNCIL'S BRIEFINGS
CITY OF VIRGINIA BEACH DEBT MANAGEMENT PROFILE
ITEM#73379
(Continued)
Mr. Laux turned the presentation over to Mr. Rose to provide the Potential Next Steps:
Potential Next Steps :NB
Date Event/Task
October 11,2022 Davenport briefing to City Council on Debt Management&Planned Capital Funding
Strategies
October/November 2022 Incorporate input feedback.and guidance from City Council and Staff involving
recommendations on Financial Policy Guidelines
City Leadership/Davenport meet with Rating Agencies to discuss potential changes to
December.2022 Financial Policy Guidelines and borrowing implementation timing of Charter Bonds Public
Facility Revenue Bonds.and Flood Mitigation Program
Brief City Council on meeting with Rating Agencies and seek additional guidance and
Early January,2023
direction for the implementation of any changes
January,2023 Potential consideration of an agenda request and resolution to update and modify the
City's Debt Management Policies
Incorporate Debt Management Policies and financial strategies into the development of
January-March.2023 the City Manager s FY 2023-24 Proposed Operat,ng Budget and Capital Improvement
Program
DAVENPORT I
Mayor Dyer expressed his appreciation to Mr. Rose and Mr. Laux for the presentation.
October 11, 2022
16
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
&NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
3:15 P.M.
Mayor Dyer welcomed Kathy Warren, Deputy Director—Economic Development. Ms. Warren expressed
her appreciation to City Council for their continued support:
: V
d ._--.
VBCDC & NAMI Potential Sites Proposal
City Council Public Briefing October 11, 2022
Kathy Warren, Deputy Director, Department of Economic Development AB
Here is the Background:
Background
• VA Beach Community Development Corporation(VBCDC)and the
National Alliance for Mental Illness(NAMI)are interested in developing
an affordable housing community that also provides services for those
living with mental illness.
• In the Fall of 2021,VBCDC/NAMI approached the City of Virginia Beach
to request assistance in identifying alternative potential sites for this
project, after the initially pursued site fell through.
• This proposal was presented to City Council in Closed Session on
February 8, 2022.
• City Council provided direction to staff to conduct research and identify
any sites that met the criteria for VBCDC/NAMI's proposal.
• Staff identified two potential sites, one of which VBCDC/NAMI prefers.
Economic Development I VBCDC 8 NAMI Potential Sites I October 11.29Z2 - 2
October 11, 2022
17
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
& NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
Request for Direction on Next Steps
• Direction needed:
• City Council discussion on the preferred site
• If desired, when should public engagement begin with the
surrounding community?
• If desired, should VBCDC and NAMI take next steps to apply for
funding for March 2024 through Virginia Housing and provide
direction on site control, planning and rezoning.
Economic Development I VBCDC&NAMI Potential Sites I October 11,2022 _ _ _ 3
The next two (2)slides provide an overview of the VBCDC&NAMI Proposal:
VBCDC & NAMI Proposal
• VBCDC proposes to develop a mixed-income, mixed-use affordable project
in collaboration with NAMI Coastal Virginia, a non-profit organization who
provides free services and programs for persons living with mental illness.
• VBCDC will own and provide management and maintenance services and
NAMI will be the anchor lessee for the office space(regional headquarters).
• Approximately 10-15%of the units would be reserved for low-income
persons with mental illness. The remaining units are anticipated for
households earning up to 80%of the area median income.
• The project would include:
• 45-60 affordable, mixed-income rental units(1, 2, and 3 bedroom)
• Office space for NAMI's regional headquarters
Economic Development I VBCDC&NAMI Potential Sites I October 11 2CO2 _imai 4
October 11, 2022
18
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
&NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
VBCDC/NAMI Site Criteria
• 1.5 to 5 acres to develop a mixed-use project with up to 60-units
• Zoned B-4 or compatible to rezone to B-4 (Mixed-Use District)
• Located outside of>75 dB noise zone AICUZ
• Consistent with the policies of the Comprehensive Plan
• Located near or on a transit route
• Close to amenities and medical facilities
or,T Deveicp—ert I VBCDC 8 Po 5 11.2022 5
Here is a map of two (2) City-Owned Sites Identified:
City-Owned Sites Identified V,
t Y
i
1. 5858 & 5876 Burton Station d .
Rd. (3 +/-AC. two parcel
assembly site - District 4)
2. GPIN: 1494744346 (corner $
of Nimmo Pkwy & Princess c t
Anne Rd. 3.5 +/-AC., Pk*s-
F f
District 2) 4
d
Economic Development I VBCDC 8 NAMI Potential Sites I October 2022+410 ���'
6
October 11, 2022
19
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
&NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
The next two (2)slides provide an overview of Potential Site—Burton Station Road:
Potential Site - Burton Station Rd
Location Parcel Preliminary Review Land Value
Size Assessment
5858&5876 Burton 3 AC • Meets the intent of the Burton $176,200
Station Rd.(two Station SGA ($88,100 per
parcel assembly— • Y.mile from transit line parcel)
District 4) • Zoned R5D staff may be supportive
of B-4
• Walking distance to amenities
Assumptions 45-60 dwelling units would require+l-0 75 acre for the building and+/-1 0 acre for 90-126 parking
spaces plus 15-20%of the site area for stormwater management
Economic Development I VBCDC 8 NAMI Potential Sites I October11.
Potential City Site - Burton Station Rd
UNTON STATION VILLAGE
i' \
r.w-., i q /
t• l'kt if'''''3--- -;---\'-
S\-,..,,.
•
��tt r BURTONrSTATION. es-
o`'
E fi'jf/0 `S VILLAGE%�� r.
f ; nod / � -
It
Economic Development I VBCDC 8 NAMI Potential Sites I Oc ---•— 0 - 8
October 11, 2022
20
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
& NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
The next two (2)slides provide an overview of Potential Site—Nimmo Parkway&Princess Anne Road:
Potential Site — Nimmo Pkwy & Princess Anne Rd
Location Parcel Preliminary Review Land Value Assessment
Size
1494744346(corner 3.5 AC • Within the Princess Anne County $161,500
of Nimmo Pkwy& Courthouse Historic and Cultural District
Princess Anne Rd, &Courthouse Corner Suburban Focus
District 2) Areas
• Zoned AG2,Located adjacent to A18
zoning district
• 1/mile from transit line,amenities and
medical facilities
• Vehicular access must be from rear of
property with connection to Nimmo
Pkwy
Assumptions 45-60 dwelling units would require+/-0 75 acre for the building and+/-1 0 acre for 90-126 parking spaces plus 15-
20%of the site area for stormwater management
Economic Development I VBCDC&NAMI Potential Sites I October 11.2022 iii
iiiiii
Potential Site — Nimmo Pkwy & Princess Anne Rd
Comprehensive Plan
Recommendation:
•etfM w
d 1lr•
2016 Comprehensive Plan
Suburban Focus Area 2.2A:.3 `
• Recommended Uses include ='
low-rise,low-intensity office -
and service uses that are „'
attractively designed with VA 2 2 • •
reverse frontage access. .
Residential dwellings, mixed
with such uses is appropriate. "•"'"t't
•I Nrt•Yt r10Y
l•[ItfO•N•I f
Roadway access recommendation SFA 2.2 and SFA 2.3
Economic Development I VBCDC&NAMI Potential Sites I October 11,2022 10
liman
October 11, 2022
21
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
&NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
" 65-70 dB Aircraft Noise Zone
NMCourthouse Historic&Cultural District
a / r/ z%, / // ,
off. , ,,, .,e,./2,,,, ,,,,,,,t/ 27/ //' ,e,' ///.
i.,04P,&.:114, ;• -^
, , //,
,„,%,,. br,
,-:„.. ,-. „ ,,,,;,,,, / i
Economic Development I VBCDC&NAMI Potential Sites I October 11,2022 - •
Here is the Request for Direction on Next Steps:
Request for Direction on Next Steps
• VBCDC & NAMI prefer Nimmo Pkwy & Princess Anne Rd site
• Direction needed:
• Council discussion on this preferred site
• If desired, when should public engagement begin with the surrounding
community?
• If desired, should VBCDC and NAMI take next steps to apply for
funding for March 2024 through Virginia Housing to include:
• Site Control
• Site Plan Approval
• Rezoning
Economic Development l VBCDC&NAMI Potential Sites I October 11,22.?' 1 2
October 11, 2022
22
CITY COUNCIL'S BRIEFINGS
VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION(VBCDC)
&NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI)PROPOSAL
ITEM#73380
(Continued)
Discussion
Economic Development I VBCDC 8 NAMI Potential Sites[October 11,2022 13
Mayor Dyer provided direction to continue with public engagement, based on the Body's consent, and
expressed his appreciation to Ms. Warren for the presentation.
October 11, 2022
23
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
3:48 P.M.
Mayor Dyer welcomed David Jarman, P.E. —Public Works. Mr. Jarman expressed his appreciation to City
Council for their continued support:
.. _--,--
City Council 1, 1)13.,,,,,,,,„.....
Public Works
Briefing
ClP Update -,a- 4
David Jarman, P.E.
ROADWAYS
oct 11,2022
Here is the Overview:
Overview NB 2
PIIIIIIIIIW
I. Recently Completed Projects
II. Projects in Construction
III. Upcoming Projects(12-Month Forecast)
IV. Challenges
k
f i
if
October 11, 2022
24
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
The next several slides provide an update on Recently Completed Projects:
3
I. Recently Completed
Projects
Recently Completed Projects Transportation \B 4
• Nimmo Parkway Phase IIA
(CIP#100328,Council District 2)
Extension of Nimmo Parkway to the Jones&Cabacoy
Veterans Care Center,construction of a new roundabout at
the intersection of Nimmo Parkway and West Neck Road,
street lights,landscaping,and storm water management
constructed wetlands. Project was completed in March 2022
hilt ii Parkd)iy P>!eiSae PA •
for a total cost of$3M
-3
sv
•
Roundabout looking south __ ""_• �� '
October 11, 2022
25
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Recently Completed Projects Operations NB 5
• Rehabilitation of Pungo Ferry Bridge
(CIP#100328,Council District 2)
Rehabilitation of Pungo Ferry Bridge includes;concrete deck
repairs,epoxy deck overlay,replacement of the expansion
joints and bearing plates,and spall and crack repairs to the
beams. Project was completed in March 2022 for a total cost
of$3.85M
Pungo Ferry Bridge •t`
•
t
•
Safety NSA Epoxy Overlay 'tteck{Repairs$ _
Recently Completed Projects Transportation & 'tti3 6
Operations
-" `� • Lake Edwards Parking Lot
—x• _ (CIP#100423.034,Council District 4)
Rehabilitation of 2 parking areas to provide formal parking
-•!`� - spaces and drainage improvements. Project was brought
forward by HNP and PW/SWR. Project was completed in
April 2022 for a total cost of$235K
Lake Edwards Parking Lot
law
•
After Construction Before Construction
October 11, 2022
26
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Recently Completed Projects Transportation NB
Pw,
- • Independence Boulevard Sidewalk
45 tcir=�° (CIP#100328,Council District 3&4)
' ➢Added 5-foot concrete sidewalk along the west side of
Independence Boulevard from the 1-264 West on-ramp to Baxter
Road,and the north side of Baxter Road from Independence
Boulevard to Alicia Drive,a total distance of approximately 0.4
miles.
The project was completed in April 2022 for a total cost of$1.57M
Ntorthof l 264 WB offramp ($790K TAP funding)
III
s
Niffof the 1-264 overpass r tinder the 1-264 overpass South of'the overpass looking to Baxter
Recently Completed Projects Transportation \ 8
• Pacific Avenue Corridor Improvements
(CIP#100423 ,Council District 6)
Constructed pedestrian safety improvements along Pacific
_ Ave from 10th St to 40th St,including signage,crosswalks,
median refuge
> Work substantially complete,several sign/steel items were
PifK Ave/36tn 5t looking south unable to be shipped until late Aug(these are being installed
now)
> Project was substantially completed in May 2022 for a total
cost of$1.01M($470K HSIP funding)
.fi •
-
+�. {� - '
Pacific Ave/36th St looking north
October 11, 2022
27
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
The next several slides provide an update on Projects in Construction:
Projects in Construction Transportation &
9
Operations
■ High Visibility Backplate Replacement
(CIP#100423.024,Citywide)
Installation of high visibility backplates on - :. ill c C,
existing signal heads tit Ci .:. a .
a
Construction completed in August 2022 t `
Total cost of$725K S623K HSIP funding) Jo
-1+ It
-111
- j -,
. •. .
-
Backplate installation at Dam Neck/London Bridge
10
II. Projects In
Construction
L.
October 11, 2022
28
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Projects in Construction Transportation 11
rd;K wmt,
r• • Princess Anne Road Phase VII
(CIP#100318,Council District 2,5)
t,-:• > 4-lane divided roadway from General Booth to Fisher Arch
��.t.
➢ Turn lane construction at General Booth is complete
<,_<- Projected completed in Sept 2022, currently finishing up
1 ' punch list items and closeout
.,,
'' c , Total cost of$38.6M($15M RS funding)
111.1
Left turn tine at Gene f4eooth/Princess Anne Princess bnne/Newsteadlookfng west Pond#I near Nimmo Church Lane",
Projects in Construction Transportation NB 12
rnic wort.
• Providence Road Sidewalk
(CIP#100322,Council District 1&3)
, 5 ft sidewalk on Providence Rd from Kempsville to Indian '
Lakes/Churchill
Working through utility conflict with storm pipe installation
, Construction 30%complete,projected completion Spring 2023 - •°-' - "t , -
, Total cost of$971K($638K TAP funding)
. ...— : ..,
t
ie
SW MN installatiiiii Providence i'r`ovidence Rd/Cresthaven Lane 3 3Vkience/Indian Lakes excavation iik,
October 11, 2022
29
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Projects in Construction Transportation \13 13
Pbhhc w r S
j j • Indian River Rd/Providence Rd Intersection Improvements
�• : it (CIP#100218,Council District 1&7)
.0104 - Signal,sidewalk,and pedestrian improvements
- _ - Eliminating the trap lane on Indian River Rd
'-•, .'.-: - Some delays with signal pole and cabinet equipment delivery
•
Total cost:$3.15M,Construction: 60%Complete,Projected
b ti6:tt Providence/Indian River Completion. 12/22
•1 ) i
...----#
pwwn!Miw. 7,.). ,. -
SSglewalk replacement at Sunnysidepf, Entrance replacement at Exxon
Projects in Construction Transportation \, .
.Worts
• Laskin Road Bridge Replacement&Laskin Road Phase 1-A
(CIP#100240/100242,Council District 6)
VDOT managed project,8-lanes on Laskin Rd,6-lanes on First Colonial to 1-264
Total Project Cost: $141.7M,Current Status: 50%Complete
Estimated Completion: Spring 2023(will likely be delayed to Spring 2024)
t
..
Ilimmist
New curb line on Laskin Road ,4 Laskin Road bridge over Linkhorn Bay Surcharging on west side of tliqAifili
October 11, 2022
30
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Projects in Construction Transportation \ .
p;
n , • First Colonial RdNa.Beach Blvd Intersection Improvements
IIP _t64 f (CIP#100183,Council District 6)
��l� * r». - Intersection improvements to include adding left&right turn
, 0 .' Virginia Beach Blvd,- '- lanes,multi-use path,and new signals
i:4:1:5-T 1 _ , Total cost:$34M,NTP: 6/22,Completion: 11/25(3.5 years)
~ `ii - ``A
k -
_ O I71E17
t . ' Va.8.2-'Lich-67v:... . . irt" , ! '-77"'. ,....., __=. .,..
, .,_
_ .� , r .=_
, . .
. ...:
. .
.. .
ockpiled water and sewer pipe s sS
Projects in Construction Transportation NB 16
• Sandbridge Road-Nimmo Parkway Phase 7A
(CIP#100356,Council District 2&5)
_ . Construction of a 2-lane roadway from Sandpiper Road west
1.1 miles,
,andbr CIp,,Rd\\'1 : Roadway will be raised to accommodate 100 yr flood
elevation plus 3.0 ft of seal level rise
Includes paved shoulders,geometric improvements,and
adaptive LED street lights
- -:. , . Total cost:$25.4M,NTP: 8/22,Completion: 8/25(3 years)
--art-. _ -1-
\V.. ,
Clearing in the"swamp , irrjbeitrli fnfitallet!tq help with clearing
October 11, 2022
31
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Projects in Construction Transportation NE 17
• West Neck Road Phase IV
(CIP#100483,Council District 2)
Construction of 2-lane road improvements,drainage,
_ shoulders,and street lights from Kellam HS south to Fountain
property curve,includes Shared Use Path to Eagles Nest Sub
Construction—25%complete
Total cost:$9.4M,NIP: 5/22,Com.letion: 11/23
West Neck Rd north ofre`t —
::iice�:i �p��""``F��yf Y�x�XXYYiiiffiVIESSOMMESNiI
18
III. Upcoming Projects
(12-Month Forecast)
October 11, 2022
32
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Upcoming Projects Transportation \, 19
� • Elbow Road Phase 2B&2C
;�,c,C� - °� 4i.-"; ` 'D ■ (CIP#100159/100160, Council District 2&7)
\r�e�P�. 11 �, 3
5. • ? Q •a : 1.3 miles of 4-lane divided roadway
, Includes 2ea new realigned 1000 ft long
Y-1.,. : bridges ii... 9
`� a�: :,� >- *,• ---..�' ;57 • - Includes 8 ft sidewalk,on road bike lanes,
s r - : ,.`.,.. landscaping,and LED street lights
�,Imo , r. w,
:.tor• •' } ,'o,. +''• . Total cost:$76.2M($50M state/federal funding)
f`> S' NTP: 4/23,Est.Completion: 10/26(2.5 years)
Stumpy Lake `�9
e>,.. •
Upcoming Projects Transportation NE 20
"" Independence Blvd/Columbus St Pedestrian
. t;,` I Improvements(CIP#100554, Council District 4)
- s . At-grade pedestrian crossing at Columbus Street/
..AT- Independence Boulevard intersection including
is •
_i .. -y 6 median pedestrian refuge across Independence
.;r-` . $ Blvd
- : Removal of one of the two southbound left turn
< lanes on Independence Boulevard to accommodate
"" �' _ pedestrian refuge
r
. Pedestrian signalization
. - .' " _• , Total cost:$511K($352K TAP Funding)
, NTP: 8/23,Est.Completion: 2/24(6 mo)
October 11, 2022
33
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Transportation & NB
Upcoming Projects Operations 21
Phase 6 shelters near Judicial Complex on Princess Anne • Bus Shelter Phases 5&7(CIP#100050.005/.007,
Council District 4)
ill
iiiii
its .,+�,,• '••; Phase 5:
Pleasure House Road/Shore Drive(HR Stop 93)
itliiir
, _...
w . Corporation Lane at Pembroke(HR Stop 106)
Independence Blvd/Wicklow Place(HR Stop 1430)
Independence Blvd/Columbus Street(HR Stop 1340)
Phase 7:
a - Virginia Beach Blvd/Byrd Lane(HR Stop 1111)
s 1111/ - - , Total cost:—$140K
a ,"
Iy� ; NTP: 1/23,Est Completion:6/23(5 mo)
'i
Ali r
p "}ielter near Princess
Anne/Dam Neck
Upcoming Projects Transportation \ 22
s.',;,nia Beach Blvd— _ • Potters Road Diet(CIP#100423, Council District 3,5,
' i" _ - _ =r &6)
• , Potters Rd will be reduced from 4 lanes to 2 lanes
r3 OP��. . « with bike lanes in each direction as well as center
I 47 % turn lanes
�cu. : �_ , Total cost:$856K($570K HSIP Funding)
i. •,� `� r, , , NTP: 1/23,Est.Completion: 1/24(1 year)
33
Y,V ...
,..-J,r 1. .
October 11, 2022
34
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Upcoming Projects Transportation \ 23
.: • Salem Road Sidewalk Phase 1
Aecf`\� -f :�' :Y (CIP#100423.026, Council District 7&10)
�epe� Rock Lake Loop . 5 ft wide sidewalk from Rock Lake Loop to Salem
S � - • : , `• : Lakes Blvd
" : : Includes curb&gutter and shoulder improvements
• I $ � :- Total cost:$840K($334K TAP Funding)
'tee-, .t•r1 -.-
;4.. NTP: 2/23,Est.Completion: 5/24(15 months)
it P.
s
Upcoming Projects Operations 24
Chii;h7Cgis
■ State of Good Repair Paving Projects
(CIP#100423.026,Various Council Districts)
FY21 CIP#100808
Includes milling and overlay for portions of S.Military
Hwy,N.Landing Rd,and Va.Beach Blvd
, Includes ADA ramp upgrades where necessary
P T' ; Total Cost$1.86M,NTP: Spring 2023,Est Completion:
•••'• . FY22 CIP#100806
Includes milling and overlay for portions of EB and
WB Va.Beach Blvd between N.Lynnhaven Rd and
Laskin Rd
Includes ADA ramp upgrades where necessary
Total Cost: $3.09M,NTP:Spring 2023,Est Completion:
6 mo.
October 11, 2022
35
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
25
TRANSPORTATION - VI. Roadways Challenges
Roadways Challenges
❖Inflation/Cost Increases
• Prices have continued to increase or remain elevated as _.ice
material suppliers are still unable to hold quotes and/or honor +�
delivery dates for certain materials M r
• Construction market remains stretched with large regional `J
projects still consuming resources
• Looking to add VDOT Special Provisions for Price Adjustments l:
to our contracts i
• Fuel(Opt-in provision tied to cost index)
• Steel(Opt-in provision,tied to cost index)
• Asphalt(included in bids,tied to cost index)
• These provisions will help normalize bids to reduce price
increases based on speculation - _-- _w
October 11, 2022
36
CITY MANAGER'S BRIEFINGS
TRANSPORTATION CAPITAL IMPROVEMENT PROJECT(CIP) UPDATE
ITEM#73381
(Continued)
Discussion
Public works
Mayor Dyer expressed his appreciation to Mr. Jarman for the update.
October 11, 2022
37
CITY MANAGER'S BRIEFINGS
CANNABIS REGULATION UPDATE
ITEM#73382
4:26 P.M.
Mayor Dyer welcomed Debra M. Bryan, Legislative Affairs Director. Mrs. Bryan expressed her appreciation
to City Council for their continued support:
Status of
Cannabis Regulation
in Virginia
�R ,,
City Council Briefing
Debra M.Bryan
Director of Legislative Affairs October 11,2022
Here is the Proposed Timeline for Retail Sales:
Proposed Timeline for Retail Sales
imi.4.10
2020 2021 2022 2023 2024
First Medical General Legislation Any legislation Onginal target
Use Dispensary Assembly aimed at authorizing date for
Opens legalized creating retail retail sales in authorization of
possession but sales 2024 must pass retail sales
not sales framework was General
defeated Assembly
2
October 11, 2022
38
CITY MANAGER'S BRIEFINGS
CANNABIS REGULATION UPDATE
ITEM#73382
(Continued)
The next four(4)slides provide an overview of the Cannabis Control Act and its oversight:
Cannabis Control Act
• Passed during 2021 Special Session
•Va. Code § 4.1-600 et seq.
• Created the Cannabis Control Authority
i
3
Cannabis Control Authority
• Board of Directors (5)
• Chief Executive Officer btiri
•Staff Members
Jeremy Preiss
Acting Head,Chief Officer
4
October 11, 2022
39
CITY MANAGER'S BRIEFINGS
CANNABIS REGULATION UPDATE
ITEM#73382
(Continued)
Cannabis Public Health Advisory Council
•21 members
• Provide guidance to the Cannabis Control
Authority
• Next Meeting December 6, 2021
5
The Cannabis Oversight Commission
• Made up of General Assembly Members
• Gathering information from other states
• Keeping informed of activity of the CCA and the
Industrial Hemp Extract task force
ill J a '1!
2-4414"1*‘
Octobcf 11, 2022
40
CITY MANAGER'S BRIEFINGS
CANNABIS REGULATION UPDATE
ITEM#73382
(Continued)
Here is, "What's Next for Virginia":
What's Next for Virginia?
• Cannabis Control Authority— meets w/City Council 11/1/22
• Task Force to Analyze Industrial Hemp Extracts and Other
Substances- Report due to General Assembly 11/15/22
• Cannabis Public Health Advisory Council — Report due to
General Assembly 1/11/23
• 2023 General Assembly Session —will something get
passed?
7
Questions? ,
•
Age
NJ
•
•
T 2
- •._
q �r
•
Mayor Dyer expressed his appreciation to Mrs. Bryan for the presentation.
October 11, 2022
41
CITY COUNCIL DISCUSSION/INITIATIVES
ITEM#73383
4:38 P.M.
Council Member Branch distributed copies of the proposed revised Ordinance, "Appropriate $1,000,000
to the City of Virginia Beach Development Authority for Roof Repairs and Renovations for the
Amphitheater", attached hereto and made a part of the record. Council Member Branch advised the
revision from the Ordinance considered on October 4, 2022, is to have the funding appropriated from the
TIP Fund instead of American Rescue Plan Act funding. Council Member Branch advised this Ordinance
will be considered on the next City Council Agenda,
October 11, 2022
REQUESTED BY COUNCILMEMBERS BRANCH AND MOSS
1 AN ORDINANCE TO APPROPRIATE $1,000,000 TO THE
2 CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY
3 FOR ROOF REPAIRS AND RENOVATIONS FOR THE
4 AMPHITHEATER
5
6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
7 VIRGINIA, THAT:
8
9 $1,000,000 is hereby appropriated from the fund balance of the TIP Fund to the
10 City of Virginia Beach Development Authority for roof repairs and renovations at the
11 Amphitheater.
Adopted by the Council of the City of Virginia Beach, Virginia on the day
of , 2022.
Requires an affirmative vote by a majority of all members of the City Council.
APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY:
.S!►V
B dget and Management S:rvices s i
CA15935
R-2(Moss&Branch Co-sponsors)
October 10, 2022
42
ITEM#73384
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 purpose:
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)
• Council Appointments: Council, Boards, Commissions,
Committees, Authorities,Agencies and Appointees
October 11, 2022
43
ITEM#73384
(Continued)
Upon motion by Council Member Miles, seconded by Council Member Tower, City Council voted to
proceed into CLOSED SESSION at 4:39 P.M.
Voting: 11-0
Council Members Voting Aye:
Michael F. Berlucchi, Linwood O. Branch, Mayor Robert M. Dyer,
Barbara M. Henley, N. D. "Rocky" Holcomb, Delceno C. Miles,
John D. Moss, Aaron R. Rouse, Guy K. Tower, Vice Mayor
Rosemary Wilson and Sabrina D. Wooten
Council Members Absent:
None
Closed Session 4:39 P.M. — 4:47 P.M.
October 11, 2022
44
CERTIFICATION
ITEM#73385
Mayor Dyer RECONVENED the Formal Session.
Upon motion by Council Member Moss, seconded by Council Member Branch, 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:
Michael F. Berlucchi, Linwood O. Branch, Mayor Robert M. Dyer,
Barbara M.Henley,N.D. "Rocky"Holcomb,Delceno C.Miles,John
D. Moss, Aaron R. Rouse, Guy K. Tower, Vice Mayor Rosemary
Wilson and Sabrina D. Wooten
Council Members Absent:
None
October 11, 2022
i�04 -
G,
\,t1,1.1„ce,e‘e.e..e.
A..: IN. 4 , "i.
e / i
4'Q bV
OF OUR NAZ0ON
RESOLUTION
CERTIFICATION OF CLOSED SESSION
VIRGINIA BEACH CITY COUNCIL
WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the
affirmative vote recorded in ITEM #73384 on Page 43 and in accordance with the provisions of The
Virginia Freedom of Information Act; and,
WHEREAS:Section 2.2-3712 of the Code of Virginia requires a certification by the governing body
that such Closed Session was conducted in conformity with Virginia law.
NOW, THEREFORE,BE IT RESOLVED: That the Virginia Beach City Council hereby certifies
that, to the best of each member's knowledge, (a)only public business matters lawfully exempted from Open
Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution
applies; and, (b) only such public business matters as were identified in the motion convening this Closed
Session were heard, discussed or considered by Virginia Beach City Council.
K---- 4, __________)
elius
Chief Deputy City Clerk
October 11, 2022
45
ADJOURNMENT
ITEM#73386
Mayor Robert M. Dyer DECLARED the City Council FORMAL SESSION ADJOURNED at 4:48 P.M.
Terri H. Chelius Robert M. Dyer
Chief Deputy City Clerk Mayor
October 11, 2022