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HomeMy WebLinkAboutMARCH 26, 2024 - SPECIAL FORMAL SESSION ok ;9g't4 ,&Gri 40 :c LpL a'�` ,! 0, OUR h"10 'I VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 26, 2024 Mayor Robert M. Dyer called to order the CITY COUNCIL SPECIAL FORMAL SESSION in the City Council Conference Room, City Hall, on Tuesday,March 26, 2024, at 12:00 P.M. Council Members Present: Michael F. Berlucchi,Mayor Robert M.Dyer, Barbara M. Henley,David Hutcheson, Robert W "Worth"Remick Amelia Ross-Hammond,Jennifer Rouse, Joashua F. "Joash" Schulman, Chris Taylor, Vice Mayor Rosemary Wilson and Sabrina D. Wooten Council Members Absent: None 2 MAYOR'S CALL FOR SPECIAL FORMAL SESSION ITEM#7544 7 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINL4 BEACH CITY COUNCIL Tuesday,March 26,2024 12:00 P.M. City Council Conference Room 2034 Building 1, City Hall,2"d Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow the City Council to convene into a Closed Session at the conclusion of the regularly scheduled Formal Session where the following matters will be considered: • Publicly Held Property —District 2, District 2, District 2; District 2; District 6 • Personnel Matters - Council Appointments: Council, Boards, Commissions, Committees,Authorities,Agencies, Task Forces and Appointees At the conclusion of the Closed Session, the City Council will reconvene into Open Session for the purpose of certifying the Closed Session. Sincerely, Robert M.Dyer Mayor" cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office *Due to scheduling conflicts,Mayor Dyer advised the rirginia Beach City Public Schools(VBCPS) will present first. March 26, 2024 �O4 � L� Itz City of Virginia B cacti so,�'9�s ohm �p OV NAPOt' VBtKwx m ROBERT M."BOBBY"DYER MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23458-9000 (757)385-4581 FAX(757)3855899 March 21, 2024 BDYEROVBGOVCOM HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL Tuesday,March 26,2024 12:00 P.M. City Council Conference Room 2034 Building 1, City Hall,2nd Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow the City Council to convene into a Closed Session at the conclusion of the regularly scheduled Formal Session where the following matters will be considered: • Publicly Held Property —District 2, District 2, District 2; District 2; District 6 • Personnel Matters - Council Appointments: Council, Boards, Commissions, Committees,Authorities,Agencies, Task Forces and Appointees At the conclusion of the Closed Session, the City Council will reconvene into Open Session for the purpose of certifying the Closed Session. Sincerely, Robert M.Dyer Mayor cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office 3 CITY MANA GER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) VIRGINIA BEACH CITYPUBLIC SCHOOLS OPERATING& CIP ITEM#75448 12:01 P.M. Mayor welcomed Kimberly Melnyk, School Board Chair, Dr. Donald Robertson Jr., Superintendent, Jack Freeman, Chief Operations Officer and Crystal Pate, Chief Financial Officer Mrs. Melnyk expressed her appreciation to City Council for their continued support and distributed copies of the presentation, attached hereto and made a part of the record. Mayor Dyer expressed his appreciation to Mrs. Melnyk, Dr. Robertson, Mr. Freeman and Ms. Pate for the presentation. *City Council took a break from 1:50—1:59 P.M. March 26, 2024 2024/25 SCHOOL BOARD OPERATING BUDGET AND 2024/25 - 2029/30 CAPITAL IMPROVEMENT PROGRAM (CIP ) Kimberly Melnyk, School Board Chair Dr. Donald Robertson Jr, Superintendent Crystal Pate, Chief Financial Officer Jack Freeman, Chief Operations Officer 1 V I R G I N 1 A B E A C H C I T Y P U B L I C S C H O O L S Our Mission D _..... Eli► _ The v- irginia Beach City Public Schools in partnership with the * - RASE 51 entire community, will AND empower every -. ' — student to become a life-long learner who is rr , , , a responsible, ., productive and �. engaged citizen within w the global community. ANNE- - --- - - V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S { Our Vision Every student is i achieving at his or her maximum potential in an engaging, inspiring and challenging learning environment. ; e _e K V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S Our Core Values • Put Students First. • Seek Growth. .r • Be Open To Change. "' • Do Great Work Together. t • Value Differences. � I 0 N � BUDGET PRIORITIES 0go� • Identifying compensation solutions to attract and retain staff • Maintaining service levels for students, families, and staff Q1 • Preparing to implement new curriculum in ELA, math, and science Addressing facility maintenance and renovations • Continuing to improve safety and security measures --- --- -- V I P G I N I A B E A C H C I T Y P U B L I C S C H O O L S -J KEY TO SUCCESS - HIRING GREAT EMPLOYEES Facts: • VBCPS staffs over 10,000 employees. • Every year, we hire approximately 450 new teachers of which approximately 350 have no ties to this area. • Teachers are probationary for three years; after a successful three years, they earn continuing contract status and have many opportunities to change schools or divisions. Scenario: Each of you represents a top group of teacher candidates who have recently graduated with a Masters in Education. One group is from a collection of HBCU, and the other group is from several schools of education in Pennsylvania. I will serve as the recruitment manager who will be providing you with three offers from divisions in South Hampton Roads. Each offer is the same in terms of teaching responsibility (i.e., HS Math, MS English, Elementary). E A C H C I T Y P U B L I C S C H O O L S r VBCPS by the Numbers / L A • ll' 4TH LARGEST 59TH LARGEST 86 SCHOOLS AND 64,000+ 14,000+ SCHOOL DIVISION SCHOOL DIVISION CENTERS STUDENTS EMPLOYEES IN VIRGINIA IN THE U.S. - -- - V I R G I N I A B E A C H C I T U B L I C S C H O O L S --- VBCPS PROGRAMS Academies and Advanced Academic Programs Career & Technical Education • Entrepreneurship and Business Academy • Advanced Technology Center • Environmental Studies Program • Virginia Beach Technical and • Global Studies and World Languages Career Education Center Academy Gifted Education • Governor's STEM and Technology Academy • Old Donation School • Health Sciences Academy • Virginia Beach Middle School • International Baccalaureate Middle Years Other Programs Program • An Achievable Dream • International Baccalaureate Programs Academy • Legal Studies Academy • Dual Language Immersion • Mathematics and Science Academy ProgramGreen Run Collegiate Charter • Visual and Performing Arts Academy Pre-Kindergarten • Virtual VA I T Y P U B L I C S C H O O L DEMOGRAPHICS OVER A DECADE While total enrollment for VBCPS Section 504 7.00% declined over the last six years, the 6.00% 5.00% proportion of students requiring 4.00% additional supports continues to 3.00% 2.00% increase. 1.00% 0.00% 2013/14 2018-19 2023-24 Economically Disadvantaged English Language Learners Students with Disabilities Students 4% 14.00% 50% 40% 3% 13.00% 30% 2% 12.00% 20% 1% 11.00% 10% 0% 0% 10.00% 2013114 2018.19 2023-24 2013/14 2018-19 2023-24 2013/14 2018-19 2023-24 Source: VDOE Fall Membership Website -- - V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L I COMPASS To 2025 GO ��N ::. h 1i r®r . Educational Excellence .. � �� , ,� ,� , - o n 2025 PARTNERSHIPS WOPK"CE ODEPAiKJtJS - 2 . Student Well-Being o 0 "%"fj 1 0 o 3 . Student Ownershipof Learnin g SR10ENi OM4JFRSHW . STUJEhI WEtL6 4 . Exemplary, Diversified Workforce 13 01, , , ! � OV1 5 . Mutually Beneficial Partnerships 6. Organizational Effectiveness and Efficiency V I P G I N I A B E A C H C I T Y P U B L I C S C H O O L S V BC PS Graduate Profile CREATING aL ` s T FN P r 41t.Q O FUTURE Q� READY LEARNERS �fr We are committed to preparing every child to be future ready! &SoPersonallydally Pesponsible FUTURE READY - U B L I C S C H O O L S — --- -- -- - ---- - EDUCATIONAL EXCELLENCE v 2 E 1 4 , lk • On-time graduation rate exceeding f 4 + ' 1 95% • VBCPS outperformed local school + ,k divisions in reading, writing, and science SOLs and outperformed comparable divisions in reading, mathematics, and science SOLs for 2022-2023 Y • More than 60% of secondary students enroll in and are successful in advanced courses STUDENT WELL-BEING • More than 85% of students, parents, r and staff report our schools/departments are safe and welcoming w,f Expanded the availability of mental •, "` health resources for students and families • More than 60% of students report participation in extracurricular activities or clubs E A C H C I T Y P U B L I C S C H O O L S ------------ -------------------------- STUDENT OWNERSHIP OF LEARNING "" • Academic and career planning mapped from elementary school ' through graduation • 125 career and technical education • "' � . credentials available with more than 13,000 credentials earned last year y • More than 1 ,000 high school students participated in work-based and service learning in 2022-2023 ! � f y �� L A C i C I i Y P U B L I C S C H O O L S EXEMPLARY, DIVERSIFIED STAFF • More than 85% of staff report high levels of job satisfaction • More than 60% of staff have � advanced degrees or National Board Certification • Reduced health care premiums for staff by 40-50% • Implemented the largest employee ` compensation package I T Y P U B L I C S C H O O L S MUTUALLY BENEFICIAL wil PARTNERSHIPS + .Avow-, N • Engaging families through Family Outreach Representatives and Voice Groups • Implemented "Language Ambassador" volunteers to help welcome families • More than 85% of participating families satisfied with division 1 events, programs and resources 04" V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S ORGANIZATIONAL EFFECTIVENESS & EFFICIENCY " All schools accredited in 2023 • Established the Virginia Beach School Safety Task Force and expanded the School Resource i y Officer (SRO) program • Consistently recognized for excellence in financial reporting by vow professional organizations s -- - - --- --- - V i P G I N I A B E A C H C I T Y P U B L I C S C H O O L S OVERALL STANDARDS OF LEARNING PASS RATES BY SUBJECT HAMPTON LOADS CITIES Reading Writing Math Science History Virginia State 73 65 69 67 65 ChesapeakeJ N 78 72 77 74 74 Hampton 70 62 72 67 65 Newport News 59 53 56 53 45 Norfolk 61 49 50 55 50 Portsmouth 60 45 53 52 54 Suffolk 72 65 69 63 60 Virginia Beach 82 73 77 77 73 1 F� V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S - OVERALL STANDARDS OF LEARNING PASS RATES BY SUBJECT OTHER COMPARABLE SCHOOL DIVISIONS Reading Writing Math Science History Virginia State 73 65 69 67 65 Chesterfield County 71 63 65 65 64 Fairfax County 78 57 75 72 62 Henrico County 69 65 65 68 56 Loudoun County 80 81 76 74 80 Prince William 75 71 71 66 70 County Stafford County 71 51 65 65 64 Virginia Beach 82 73 r 771 77 73 Williamsburg - 77 70 75 72 70 James City County B E A C H C I T Y P U B L I C S C H O O L S THE VBCPS RETURN ON INVESTMENT • Facts: • VBCPS boasts the top-rated ES (Kingston) and MS (Old Donation) in Virginia • VBCPS Principal Sham Bevel was a finalist for the National MS Principal of the Year • Once again, VBCPS will have a National Blue Ribbon School • According to the latest Niche rankings: • VBCPS is the 5th (out of 131 ) best school division in VA; • 683,d (out of 10,932) best school division in the United States; • 11 th best place to teach in VA • Niche notes "These rankings reflect VBCPS's commitment to education, diversity, and overall excellence. The district continues to strive for educational excellence and student success." • For the 26th consecutive year our Finance department has received the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting and the Association of School Business Officials International's Certificate of Excellence in Financial Reporting • The cost of living in Virginia Beach is the highest in South Hampton Roads 1 T Y P U P L I C S C H O O L S Ilk -r. s 5eV ♦oe 6 Oct r_....-r ay jvn jug auk g5,0 11 154,��O 'I BUDGET DEVELOPMENT OVERVIEW v ! p r 1 N I A B E A C H C I U P L I C S C H O O L S BUDGET CHALLENGES Employee Compensation/Benefits Higher Local Composite Index (LCI) State funding only increased $545,000 over the amended FY 2023/24 budget Increasing costs based on inflation �• Federal Elementary and Secondary Emergency Relief (ESSER) funding expires IIIII September 30, 2024 V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S 2023 JLARC Study . +25% • Virginia school divisions receive +14% .5% +18% less K-12 funding per student than +4% __ the 50-state average, the regional 1596 "% average, and three of Virginia 's five bordering states • SOQ formula systematically underestimates division compensation costs Virginia 50 state South Virginia border states • Formula does not account for (actual) average Atlantic ei age higher needs students; SOURCE)ARC anatysrs of NCES data,ad)us;ea lu<cost of labor undercounts students in poverty - --- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S PREEMPTIVE MEASURES FOR REVENUE CHALLENGES Net decrease in School Operating fund positions (57.0 FTE) FTE State Category Description Change Instruction Enrollment changes, increased staffing ratio from 21 .25:1 to 21 .75:1 (80.3` for middle and high school, and other staffing changes Admin, Attendance and Family Outreach Representative (1 .2), Payroll Assistant ( '), PBIS (2.8) Health Coach (4.0), Clinic Assistant (2.0), and other staffing changes (-1 .0) Pupil Transportation No changes 0.0 Operations and Maintenance Additional elementary security assistants (15.0), school security 22.6 officers (6.6), and other staffing changes (1 .0) Technology Coordinator of Virtual Learning from ESSER (1 .0), additional 3.5 Instructional Technology Specialist (1 .5), and other staffing changes (1 .0) TOTAL (57.0) E A C H C I T Y P U B L I C S C H O O L S PREEMPTIVE MEASURES FOR REVENUE CHALLENGES • Reduced department budgets by over $ 1 .48 million • Reduced each school's budget by 5% • Reduced the cost of site-assigned substitutes • Transferred contracted services with Communities in Schools Hampton Roads to the ALL In Virginia grant • Reduced the cost of various contracts by renegotiating terms ---. _- V ! q � 1 N i A E E A C H C I T Y P U B L I C S C H O O L S BALANCING TO THE 20 REDUCTION Description Remove replacement school buses $2,386,383 Extend the maintenance cycle for landscape services $478,571 Reduce general maintenance line item $135,046 Cut central office temporary employment agreements $546,023 Cut FEV Tutoring $450,000 Cut Unified Insights $1981772 Cut 8.5 central office positions $664,117 Additional Staff Cuts $789,630 Secondary Assistant Principals (4.0) Library Media Assistants (3.0) Instructional Technology Specialist (1 .0) Technology Support Technician (1 .0) V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S ESSER, INFLATIONARY, AND REQUIRED EXPENSES Description ® . . Elementary English as a Second Learner TEA from ESSER $21 ,853 English as a Second Language Teacher from ESSER 2.0 $190,704 Math Coaches from ESSER 7.0 $659,568 Secondary Summer Performing Arts Camps TEA from ESSER $3,203 Concurrent stipends from ESSER $81 ,814 Panorama SEL software from ESSER $68,000 Coaches pay to support professional learning from ESSER $113,463 Translation and Interpretation Services from ESSER $110,000 Virtual VA tuition from ESSER $1 ,000,000 Coordinator Virtual Learning from ESSER 1 .0 $150,905 CHKD Bridge program services from ESSER $200,000 Google Workspace from ESSER $278,162 - -- - -- -- - -- - -- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S ESSER, INFLATIONARY, AND REQUIRED EXPENSES Description IFTE Amount Increased local match for Virginia Preschool Initiative grant based on calc tool $621 ,772 Increased local match for Algebra Readiness grant based on calc tool $4,557 Increased transfer to Green Run Collegiate $509,322 Increased transfer to Athletics fund $596,418 Increased the additional class allowance to $8,500 from $5,600 SB approved $183,254 2023 Increased the budget for extended school year (ESY) personnel (e.g., teachers, $929,265 interpreters, nurses, teacher assistants, office associates, security assistants, etc.) Increased contract for SECEP tuition $690,378 Increased contract for student transportation to private day facilities $667,650 . . Increased contract for speech language therapy services $440,160 Increased contract for occupational therapy $331 ,200 -- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S ESSER, INFLATIONARY, AND REQUIRED EXPENSES Descri-ption ® . Increased costs for assistive technology and visual equipment to meet student $22,893 IEP needs Additional middle school Reading Teachers/Specialists as required by the 14.0 $1 ,392,085 Virginia Literacy Act Increased costs for instructional supplies, technology supplies and equipment for $10,000 Section 504 [Increased costs for homeless education taxi expenses (McKinney-Vento) $600,000 Increased costs for student address verification software $2,554 Increased costs for TRAEP $138,850 Increased costs for online substance abuse intervention program (SAIP) $6,000 Additional computer supplies due to increased hearing cases $4,200 Increased costs for NNAT and CogAT gifted assessments $74,000 Increased costs for WHRO $54,669 Increased costs for outside legal counsel and litigation $110,000 V I R G I N I A B E A c F U B L I C S C H O O L S ESSER, INFLATIONARY, AND REQUIRED EXPENSES Description Increased costs for professional development for auditors $5,467 Increased costs for AED batteries, pads, and cabinet replacements $44,900 Increased costs for architectural and engineering services $25,000 Increased costs for general maintenance $600,000 Increased costs for maintenance parts and supplies $400,000 Increased costs for custodial supplies $350,000 Increased costs for Grounds Services $478,571 Increased costs for physical network fiber maintenance $80,000 Increased costs for network security devices $200,000 Increased costs for Edupoint Synergy $120,000 Nearly $12.6 million just to continue providing the services VBCPS has provided over the past few years E A C H I T Y P U B L I C S C H O O L S -- ADDITIONAL ITEMS INCLUDED • 2.0% compensation increase that was effective January 1 , 2024 (not applicable for FY 2024/25) • Step increase to the teacher pay scale ( 1 .5%) • Step increase to the unified pay scale (1 .0% or 1 .5% depending on years of service) • Change to minimum wage for the lowest wage employees to $ 15.00 • Change to VRS Hybrid voluntary contributions - - - - --- V I R G I N I A B E A C H C 1 7 F' U B L I C S C H O O L S School Board Operating Budget = All Funds Other Funds 5.7% Categorical Grants 11.8% qk6k Green Run School Operating $948,858,720 Collegiate Categorical Grants 0.4 Rio ��' g $136,146,902 Green Run Collegiate $4,873,251 Other Funds $65,930,966 a • • $17155,809,8391 School Operating 82.1% -- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S SCHOOL OPERATING FUND REVENUE SUMMARY Other Local Revenue Change from Federal 0.4% Source 1.6% FY24 Amended State Sales Tax Federal $1 ,244,107 9.7% State $4,458,967 Atli Sales Tax ($3,914,454) Local Contribution $12,831 ,400 $948,858,720 Other Local $489,197 School Reserve $(333,591) State 38.4% Local Contribution Revenue assumptions for the State and Sales Tax were made using the 49.9% Governor's Introduced 2024-2026 Budget mor V I R G I N I A B E A C H C I P U B L I C S C H O O L S SCHOOL OPERATING FUND BY STATE CATEGORY Technology 4.7% Operations and Maintenance 12.0% • IFY 2024/25 Pupil Instruction $695,422,704 Transportation Admin, Attendance and 5.2% Health $45,075,974 Pupil Transportation $49,458,681 YAK Operations and Maintenance $114,371 ,331 Administration, Attendance and Technology $44,530,030 Health 4.8% • '� •4: 1 Instruction 73.3% " I T Y P U B L I C S C H O O L S --- SCHOOL OPERATING FUND EXPENDITURES BY TYPE Materials and Supplies Capital Outlay Other Charges 3.7% 0.1 3.0% Transfers to Purchased Other Founds Personnel Services Services 1.7/� $588,030,233 5.6% Fringe Benefits $226,338,368 Purchased Services $53,254,898 Other Charges $28,221 ,690 Materials and Supplies $35,072,441 Fringe Benefits Capital Outlay $1 ,422,265 23.9% Transfer to Other Funds $16,518,825 Personnel Services 62.0% -- - -- ---- ---- V I R G I N I A B E A C H C 1 7 U B L I C S C H O O L S - .' QWN YY� • rn n + r r ,�� v'a ^,♦ .�. ice, 'Yi, «r ill I� �I , .. r • - i �d It CAPITAL IMPROVEMENT PROGRAM T Y P U B L I C S C H O O L S - - - -- -- Inflation Historic and Projected Inflation Rates 20.0% 16.0% 12.0% aq it 8.0% ✓ a' ai 4.0% 0.0% ■ Historic PPI Inflation Rate Projected Inflation Rate -4.090 2021 2022 2023 2024 2025 2026 2027 2028 2029 PPI: Producer Price Index : Projected Inflation: Identified for School Construction-National Data Derived from historical VDOE Inflation Rates using comparisons Source:U.S. Bureau of Labor Statistics with other commercial construction projections V I P G I N I A B E A C H C I T Y P U B L I C S C H O O L S - Loss of Buying Power Since 2009 Historical and Projected CIP Budget Appropriations with Historical Producer Price Index (PPI) Annual Inflation Rate Target Gap and Projected Construction Inflation s175.9 5165.6 5155.9 5146.8 5138.0 5128.9 ti ,f ^ N CO Nf 00 00 OD 10 ti ti N ,�• 5(50.0) 5(100.0) v 8 O 5(150.0) 'moo �� 1~ �,� N* �ti ��0 y'� �� ,�A ,�O ,�ti ,y1, ,�'y ,gyp .�y .fib .�•� ,�0 ,�A IS, 44 1 h� h+ y, yi ya y, ya ya y� ha y, ya yi yi y, yi Data in Millions of Dollars Wppropnabons Target Gap Historic PPI [IFY 09/10-FY28/29 Estimated Cumulative Buying Power Loss: $900.2 Million - VIRGINIA B E A C H C I T Y P U B L I C S C H O O L S -- - Maintenance Needs Approved FY23- 24 CIP - School Modernization / Replacement Program HVAC CIP 1-o18 Reroofing CIP 1-o19 Various CIP 1-020 HVAC System Conditions_ Roof Systems Condition Foundation Repairs 24. 23.9% ADA Improvements 14.1% Bleacher Replacements Type Fir,?Ala•m Replacements vafies Gym Floors Library/Media Centers $75 million- 20.0% Avetage Lighting $97 million Alp cycles t Locker Removal Year Life Masonry Repair Press Box Replacement Stage Rigging a Unsatisfactory ■Fair Adequate •Optimum .Unsatisfactory Fair .Adequate optimum Emergency Renovations 2 10.7% — 31hf6-year estimated needs =55.2% — (,)3.1�,4 0 stimated thuds = 27.2% — ;35.2�D of 6 vear estimated needs to kee with life le replacements to keep with6 lere la,rments to keep upv.ith'ife-cvclereplacements - --- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S 6-Year CIP Funding FY 24/25 - 29/30 $70.0 $63.8 S61.8 $61.3 $61.8 561.8 $61.8 560.0 $56.8 560.4 $50.0 S44.8 548.0 $50.4 $40.0 S30.0 $20.0 S19.0 $13.3 $il_4 $10.0 $8.3 SS.a 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 ■Total CIP o Maintenance ■ New CorEstruction - V ! R C i N I A B E A C H C I T Y P U B L I C S C H O O L S __ Proposed FY24-25CIP — Funding Summary FY 2024125 - FY 2029?30 Capital Improvement Program (CIP) Superintendent's Proposed -March 12. 2024 1 001 Renovations and Replacements- ' Ener Mana ement'Sustainabilft 32.865,000 32.865.000 15,325.000 2.500.000 2,660.000 2.820,000 3.000.000 3.180.000 3,380.000 1-002 Tennis Court Renovations-Phase li 3.400.000 3.400,000 2 0000000 200 000 - 210 000 NNNNNNNNNNN225 000 240 000 255 000 270 000 1-015 Princess Anne High School Replacement' 727.789.000 125.535.717 113.640.71711 500 000 1 400 000 1 000 1 300 000 4 975 000 1.420 1-016 Energy Performance Contracts- Phase II 52,540.000 52.540.000 35,000,000 2.500.000 2,660,000 2,820,000 3,000,000 3,180.000 3,380.000 1 017 Renovations and Replacements- Grounds-Phase III 32.387.886 32.387.886 18.337.886 2.000,000 2.130.000 2.260,000 2,400.000 2.550,00 0 2.710,000 1-018 Renovations and Replacements- HVAC-Phase 111 246.422.146 246.422.146 67,392.146 25.500.000 27.100.000 28.800,000 30.600.000 32.500.000 34.530,000 1 010 Renovations and Replacements- Rero vats -Phase III 98,124.260 98,124.260 36.324.260 8.800.000 9,360.000 9,940.000 10.560.000 11.220.000 11.920.000 1 020 Renovations and Replacements- Various-Phase III 45.435,854 45.435.854 26.835.854 2.650.000 2.820,000 2.990.000 3.180.000 3.370.000 3.590.000 1.022 Elementary School Playground Equipment Replacement 4,574,737 4.574.7371 2.834.737 250,0001 260.000 280.000 300.0001 320.000 330.000 1 027 Renovations and Replacements- Safe School Improvements 2.190.000 2,190.000 .,,tns�I�O 200,000�11111 210 000 220.000 240mmommaiiiwl .000 250 000 270.000 1 028 B.F.Williams:Bayside 6th(Grades 4- 6)Replacement, 118.331.000 118.331.000 71,816.000 17.500,000 11,890.000 10.145.000 6.980.000 0 0 1-029 Bayside High School Replacement' 1.499,018,000 5,936.507 5,936.507 0 0 0 0 011 0 1-033 Comprehensive Long Range Facilities Master Planning Update 800.000 800.000 0 200,000 1300.000 0 0 0 0 1-030 Payroll System Replacement 10.382.407 10.382.407 10,382.407 01 0 0 0 0 0 1-031 School Bus 8 White Fleet Replacement 7.713.000 7.713,0001 7.713.000 0 0 0 0 0 0 1-032 Telephone System Replacement 7,266.223 7,266.223 7,266.223 0 0 0 0 0 GRAND TOTAL(all projects) 2,889,239.513 793.904,737 421,604.737 63.800.000 61.300.000 61.800.000 61.800.000 61.800,UUO 61.800.000 TARGETS 63.800.000 61.300.000 61.800,000 61.800.000 61.800.000 61,800,000 DIFFERENCE 0 v u v v v Vote-'Aopropnations To D3-e` includes reversion runds approved by City Council on Nov.21,2023.excludtng 311.000.000 which are included in'Year 1 2024-2025' Vote 'Total Project Cos'for=rincess Anne HS Replacement considers a bid in 2043.Addditional funding would be needed to accomplish this. Vote:'Total Project Cost for Bayside HS Replacement considers a bid in 2050.Addditional funding would be needed to accomplish this. 'Total Project.cost:new construction amount is pally based on 2023 Educational Specifications. Educational Specifications and the associated designs will be reviewed under a separate process With the School Board which may result in a Change in square footage and cost.*yew con stivction projects wit not go out for bid wit+out.School Board approval separate front this CIP. B E A C H C I T Y P U B L I C S C H O O L S - - Proposed FY24-25CIP - Funding Source School Board Funding Sources Virginia Beach City Public Schools FY 2024/25 - FY 2029/30 Capital Improvement Program (CIP) Superintendent's Proposed - February 6, 2024 Charter Bonds 32,300,000 32,300,000 32,300.000 32,300.000 32,300.000 32,300,000 Public Facility Revenue 15,000,000 12,000.000 12,000.000 12,000.000 12.000.000 12,000,000 Bonds PayGo 3.000,000 4,000,000 5,000.000 6,000,000 7,000,000 7,500,000 InteresVSale of Property 0 0 0 0 0 0 Energy Performance 2,500,000 2.500,000 2,500.000 2,000.000 2,000.000 2,000.000 Contracts Funding State Construction Grants 0 0 0 0 0 0 School Special Reserve 11.000,000 10.500,000 10,000,000 9,500,000 8,500,000 8,000,000 Fund Balance"Reversion Total 63.800,000 61.300,000 61,800.000 61,800.000 61,800.000 61,800.000 Note:?h,s Fund,ng Source includes reversion funds approved by City Council on Nov.21.2023. V I R G I N I A B E A C H C I T Y P U B L I C S C H 0 0 L S — Projected Debt Services Requirements Maximum estimated debt service is projected to reach roughly$62 million in FY 2034. This is approximately$12 million above the Current Debt Service Budget. ■ Requires an average annual incremental increase in the debt service budget forged consecutive years beginning in FY 2029 of$2.0 million (or roughly 0.2% of the FY 2024 School Operating Budget annually). =Existing Debt Service —Proposed Debt Service —Current Debt Service Budget $80 $70 $60 $50 $40 $30 _.. Q c� $10 S- 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 DAVENPORT W "w-mYv__to ttWwn_e r wi,n...rn m.,. fpm t�E3C C�timntes. --- - -- V I R G I N I A B E A C H T P U B L I C S C H O O L S Proposed FY24-25CIP - School Modernization / Replacement Program Projects in the CIP Original Construction Difference Total Constriction (R; Replacement Opening Date Complete Opening Date vs Project Cost Started fhv1) Modernization Construction (Millions Complete 2043 Princess Anne HS f'R; 1954 2047 93 727 8 2026 BF Williams ES:Bayside 6th (R) 1961r1957 2029 72 118 3 2066 Ba yside HS (R) 1964 2059 95 1499 0 Avera e Total1 87 2345 1 Projects Proposed School Proposed Difference Total Construction fR) Replacement Original Construction Opening Date vs Project Cost Started (M) Modernization Opening Date Complete Construction Willions) Complete 2065 Princess Anne ES 1964 2067 113 TBD 2069 Holland ES 1968 2071 103 TBD 2077 First Colonial HS 1966 2080 114 TBD 2091 Kempsville HS 1966 2094 128 TBD 2096 Kempsville MS 1969 2098 129 TBD 2105 Bayside MS 1969 2108 139 TBD 2110 Independence MS 1974 2113 139 TBD 2120 Lynnhaven MS 1974 2123 149 TBD 2125 Horth Landing ES 1975 2127 152 TBD 2127 Green Run ES 1976 2129 163 TBD 2132 Fairfield ES 1976 2134 158 TBD 2136 'A'hite Oaks ES 1978 2137 159 TBD A;era e?Total 136 These dates estimated based on current levels of funding inflated 6.21% annually starting FY31 I T Y P U B L I C S C H O O L jo. a ,i VBCPS Plays a • Workforce Development Critical Role in • Attracting Businesses The Future • Innovation and Entrepreneurship Economic Growth • Community Development of Virginia Beach • Partnerships with Local Businesses ---- V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S --- - --- i UESTIONS I '- -- -- - V I R G I N I A B E A C H C I T Y P U B L I C S C H O O L S - -- -- J w 4 CITY COUNCILS BRIEFING SPRING BOND AND DEBT ISSUANCE UPDATE ITEM#75449 1:59 P.M. Mayor Dyer welcomed David Rose, Senior Vice President, and Manager of Public Finance—Davenport & Company. Mr. Rose expressed his appreciation to City Council for their continued support and distributed copies of the presentation, attached hereto and made a part of the record. Mayor Dyer expressed his appreciation to Mr. Rose for the presentation. March 26, 2024 DAVENPORT PUBLIC FINANCE City of Virginia Beach, VA General Government Plan of Finance & Debt Structure Considerations '4mm #*. March 26, 2024 Member NYSE FINRAISIPC Background / Overview BEACH'A Davenport & Company LLC ("Davenport") serves as Financial Advisor to the City of Virginia Beach (the 41 City"). In December 2023 Davenport presented a series of capital funding scenarios to illustrate potential debt capacity and affordability impacts of funding the City's Tax-Supported Capital Improvement Programs. The City is moving forward with the public issuance of bonds in support of several of these Tax-Supported Capital Programs to fund previously approved capital projects. The issuances contemplated herein will maintain compliance with Adopted Financial Policy Guidelines and the associated debt service payments have been incorporated into the Proposed FY 2025 Budget. The bonds will be issued via two separate Tax-Supported borrowing programs: 1. Charter ("General Obligation") Bonds; and 2. Public Facility Revenue Bonds. r- The City enjoys "Aaa" credit ratings from all three rating agencies. DAVENPORT ,=_PUBLIC FINANCE March 26,2024 City of Virginia Beach.VA 1 jL AftI GtY OF Interest Rate EnvironmentIrax-Exempt t I �►CH�" p Interest rates for highly-rated, tax-exempt borrowers, remain at historically favorable levels. 20-Bond Index(Since 1980) 20-Bond Index(Since May 2020) 14.0% 4.5% 12.0% 4.0% 10.0°/1 3.5% 8.0% 3.0% 6.0% 2 4.0% .5% 2.0% 2.0'Y, 0.0% 1.5% O N E (0 00 O N �t 0 00 O N It CO 00 O N It (D c0 O N E O O O O 11 1-1 ri r i r i ci N N N N N N M M M M M M :I- It 00 00 00 c0 00 O 0) M M 07 O O O O O ri .i 1i r-I 1-i N N N N N N N N N CV N N N N CV N N N N N N N N N N N N 0) O 0) 0) 0) 0) 0) 0) 0) 0) 0 O O O O O O O O O O O O T ' 1 1 . Q j �, Q j j 0. j c-I c-I c-I ci r•1 c--I ci c-I c-I N N N N N N N N N N N N N cc a) O M c6 (6 a) O c6 c6 (0 O O ro M O O M O Gr cA z cA z The 20-year interest rates above show the Bond Buyer's"20-Bond Index"which consists of 20 tax-exempt bonds with an average rating of'Aa2'/'AA'(Moody's/S&P)that mature in 20 years.The 20-Bond Index serves as a general indicator of prevailing interest rates for tax-exempt borrowers.Updated as of 03/15/2024. DAVENPORT ,® PUBLIC FINANCE March 26.2024 City of Virginia Beach.VA 2 CITY OF VIRGINIA Charter ("General Obligation") Bonds BEACH The upcoming General Obligation Bond issuance will provide financing to both reimburse previous expenditures and fund future capital expenditures for General and School needs. ➢ The funding for the Flood Protection Program aligns with the capital planning from December 2023 and provides funds for estimated expenditures through FY 2025. i The General, School, and Flood portions will all be financed over 20 years. Estimated2024 General Obligation Bonds Uses of • $ 148,000,000 General CIP Projects 10,000,000 School CIP Projects 158,000,000 Subtotal - General and Schools --------------------------------------- 118,000,000 Flood CIP Projects --------------------------------------- $ 276,000,000 Total General Obligation Financing DAVENPORT ,= PUBLIC FINANCE March 26,202z- City of Virginia Beach.VA 3 VI'I OF 'A Public Facility Revenue Bonds BEACH -�� BEACH r The upcoming Public Facility Revenue Bond issuance will provide financing for both the Tourism Investment Program ("TIP") and Schools Projects. ■ The majority of the TIP funds are earmarked for the Atlantic Park Project. ■ School CIP Projects consist of Energy Performance Contracts which were originally appropriated as Public Facility Revenue Bonds. The TIP and School portions will be financed over 20 years. Public2024 : • • Estimated Uses of • $ 156,000,000 TIP CIP Projects 10,000,000 School CIP Projects $ 166,000,000 Total Public Facility Revenue Financing DAVENPORT , PUBLIC FINANCE March 26,2024 City of Virginia Beach.VA 4 ^ GTV OF Refunding Opportunities BEACH �� , BEACH ➢ Davenport routinely reviews and monitors the City's existing debt profile for refinancing opportunities. y Interest rates are at historically favorable levels. r Davenport has identified the potential opportunity to refinance several series of outstanding General Obligation and Public Facility Revenue Bonds for debt service savings purposes. The City would have the potential opportunity to refund the outstanding debt in order to: 1. Reduce the interest rate on the bonds to achieve debt service savings. 2. Without extending the final maturity of the bonds. r The industry standard benchmark for a successful refinancing is 3.0% Net Present Value Savings as a percentage of the par amount of the bonds refunded. ■ The General Obligation refunding candidates equate to approximately $54.4 million outstanding - 3.0% Net Present Value savings is approximately $1.6 million (or roughly $160k annuallyfor 10 years). ■ The Public Facility Revenue refunding candidates equate to approximately $29.6 million outstanding - 3.0% Net Present Value Savings is approximately $900k (or roughly $90k annually for 10 years). Y The refundings are subject to current market conditions on the day of the sale(s) and will only be issued if savings thresholds are met. DAVENPORT , IUBLIC FINANCE March 26.2024 City of Virginia Beach,VA 5 ^; CITY OF Next Steps -eta.- ►CH Date Event/Task Tuesday, March 26 Davenport presents Plan of Finance to City Council. (Today) City Council Meeting: • City Council considers approval of General Obligation and Public Facility Revenue Tuesday, April 16 Bonds. • (Note: The Virginia Beach Development Authority's approval is also a requirement for the Public Facility Revenue Bonds) Weeks of April 15 and 22 Meetings with the National Credit Rating Agencies in Virginia Beach. May 14 and May 15 General Obligation and Public Facility Revenue Bond sales via competitive bidding in the Public Credit Markets. Interest rates locked in. June 4 and June 5 General Obligation and Public Facility Revenue Bond closings. Funds advanced to the City. DAVENPORT ,® PUBLIC FINANCE _ March 26,2024 City of Virginia Beach,VA 6 CITY OF VIRGINIA BEACH 20 vs. 3o-Year Financial Considerations DAVENPORT , PUBLIC FINANCE March 26.2024 City of Virginia Beach.VA 7 CITY Of IN Debt Structure Considerations = % BEACHIA ➢ Davenport was requested to summarize the pros and cons of issuing debt over a 30-year term vs. 20-year term for Tax- Supported capital projects. ➢ The City's longstanding historical practice has been to issue debt over 20 years with a level principal repayment structure. ➢ Issuing debt over 30 years for one, or a series of, "Generational Projects" could provide a strategic tool to reduce the budgetary impact when undertaking historic capital objectives but would need to be vetted/analyzed to ensure compliance with City policies and best practices for "Aaa" rated local governments. ➢ Davenport would advise against issuing 30-year debt for the entirety of the City's Tax-Supported CIP. Credit Positive Credit Challenge • Accelerated retirement of principal / Higher annual payment/ reduced increased future debt capacity. budgetary flexibility. 20 Year Financing . Lower interest rate. For "Generational Projects", the useful life of asset may not be commensurate • Less interest paid over the life of the loan. with repayment term. • Lower annual payment/ increased • Delayed retirement of principal / reduced budgetary flexibility. future debt capacity. 30 Year Financing • Potential to spread the cost of • Higher interest rate. "Generational Projects" across the useful • More interest paid over the life of the life of such projects. loan. DAVENPORT ,® PUBLIC FINANCE _ March 26.2024 City of Virginia Beach.VA 8 VIRGINIA Debt Structure Considerations (cont.) BEACH •- !Structure Level Principal Levelilk �Irincipal Level Debt Service For discussion purposes, True Interest Cost 3.22% 1 3.61% 3.77% Davenport has provided a Total Debt Service $ 132,488,250 j $ 154,222,850 j $ 168,546,700 current market estimate to Year Debt Service Payment Debt Service Payment Debt Service Payment 1 8,729,250 ' 7,289,100 5,616,750 compare 20- ear vs 30- ear 2 8,506,500 7,134,600 5,617,500 debt structures on a sample 3 8,283,750 ; — 6,980,100 ; 5,619,500 4 8,061,000 6,825,600 5,617,500 $100 million borrowing. 1 — 1 6 5 7,838,250 6,671,100 5,616,500 6 7,615,500 1 6,516,600 1 5,616,250 7 7,392,750 6,362,100 I 5,616,500 True Interest Cost ("TIC") is 8 7,170,000 ; 6,207,600 ; 5,617.000 the effective fixed interest 9 6,947,250 6,053,100 5,617,500 10 6,719,500 I 5,898,600 1 5,617,750 rate for the life of the I - , -- 11 6,497,000 I 5,744,100 I 5,617,500 borrowing. 12 6,274,500 5,589,600 5,616,500 13 6,052,000 5,435,100 5,619,500 14 5,829,500 5,280,600 5,621,000 15 5,607,000 I 5,121,100 I 5,620,750 16 5,384,500 j 4,966,850 5,618,500 17 5,162,000 4,812,600 5,619,000 18 4,984,000 1 4,689,200 1 5,619,200 19 4,806,000 j 4,565,800 j 5,619,200 20 4,628,000 4,442,400 5,618,800 21 - 4,319,000 5,617,800 22 - 4,195,600 i 5,616,000 23 - j 4,072,200 j 5,618,200 24 - 3,948,800 5,619,000 25 - 3,825,400 5,618,200 26 - I 3,702,000 1 5,620,600 27 - j 3,578,600 1 5.620,800 Note:The current market estimates to the right are 28 - 3,455,200 5,618,600 based on market conditions as of 03/20/2024. 29 - 3,331,800 5,618,800 Results are preliminary,subject to change. — 30 - 1 3,208,400 1 5,616,000 DAVENPORT , PUBLIC FINANCE March 26.2024 City of Virginia Beach.VA 9 CITY Of VP Disclaimer BEACHiA ��� BEACH The U.S. Securities and Exchange Commission (the "SEC") has clarified that a broker, dealer or municipal securities dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of municipal securities should be subject to municipal advisor registration. Davenport & Company LLC ("Davenport") has registered as a municipal advisor with the SEC. As a registered municipal advisor Davenport may provide advice to a municipal entity or obligated person. An obligated person is an entity other than a municipal entity,such as a not for profit corporation,that has commenced an application or negotiation with an entity to issue municipal securities on its behalf and for which it will provide support. If and when an issuer engages Davenport to provide financial advisory or consultant services with respect to the issuance of municipal securities, Davenport is obligated to evidence such a financial advisory relationship with a written agreement. When acting as a registered municipal advisor Davenport is a fiduciary required by federal law to act in the best interest of a municipal entity without regard to its own financial or other interests. Davenport is not a fiduciary when it acts as a registered investment advisor, when advising an obligated person, or when acting as an underwriter, though it is required to deal fairly with such persons, This material was prepared by public finance, or other non-research personnel of Davenport. This material was not produced by a research analyst, although it may refer to a Davenport research analyst or research report. Unless otherwise indicated,these views(if any)are the author's and may differ from those of the Davenport fixed income or research department or others in the firm. Davenport may perform or seek to perform financial advisory services for the issuers of the securities and instruments mentioned herein. This material has been prepared for information purposes only and is not a solicitation of any offer to buy or sell any security/instrument or to participate in any trading strategy. Any such offer would be made only after a prospective participant had completed its own independent investigation of the securities, instruments or transactions and received all information it required to make its own investment decision, including,where applicable, a review of any offering circular or memorandum describing such security or instrument. That information would contain material information not contained herein and to which prospective participants are referred. This material is based on public information as of the specified date, and may be stale thereafter. We have no obligation to tell you when information herein may change. We make no representation or warranty with respect to the completeness of this material. Davenport has no obligation to continue to publish information on the securities/instruments mentioned herein. Recipients are required to comply with any legal or contractual restrictions on their purchase, holding,sale,exercise of rights or performance of obligations under any securities/instruments transaction. The securities/instruments discussed in this material may not be suitable for all investors or issuers. Recipients should seek independent financial advice prior to making any investment decision based on this material. This material does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal,tax, regulatory and accounting advisors,the economic risks and merits, as well as the legal,tax,regulatory and accounting characteristics and consequences,of the transaction. You should consider this material as only a single factor in making an investment decision. The value of and income from investments and the cost of borrowing may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions or companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance and estimates of future performance are based on assumptions that may not be realized. Actual events may differ from those assumed and changes to any assumptions may have a material impact on any projections or estimates. Other events not taken into account may occur and may significantly affect the projections or estimates. Certain assumptions may have been made for modeling purposes or to simplify the presentation and/or calculation of any projections or estimates,and Davenport does not represent that any such assumptions will reflect actual future events. Accordingly,there can be no assurance that estimated returns or projections will be realized or that actual returns or performance results will not materially differ from those estimated herein. This material may not be sold or redistributed without the prior written consent of Davenport. Version 01.01.24 AS I KL I DR DAVENPORT ,® PUBLIC FINANCE March 26,2024 City of Virginia Beach.VA 10 5 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 2:28 P.M. Mayor Dyer welcomed Monica Croskey,Assistant City Manager. Ms. Croskey expressed her appreciation to City Council for their continued support: Virginia Aquarium Update Monica D.Croskey,Assistant City Manager March 26,2024 1.11 or VRGM,A 92Ae', city Manager THE EXPLORATION • The City has been on a deliberate path of M evaluating how best to position the Virginia Aquarium to meet its mission - \r< while remaining realistic about the City's financial obligations,myriad of capital infrastructure needs,and taxpayer , affordability • Council has been requesting and leveraging quantitative and qualitative data to inform discussions March 26, 2024 6 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Here are highlights from data gathered: Qualitative and Quantitative Data Gathering-Highlights January 10,2023 Aquarium Director presentation to Council master plan(expansion and renovation) April 18,2023 Aquarium Director budget presentation to Council Council requested information on alternative ownership models Spring 2023 Council requested information on reduced scope for capital project August 15,2023 CIVIC)presentation on reduced scope and alternative ownership models Council requested:further explore market/alternative ownership models,gauge community sentiment,and meet with Foundation September 2023 Leadership met with Foundation Third-party administered statistically significant random-sample survey Issued RFI November 14,2023 CIVIC)closed session debrief November 17,2023 Staff met with Foundation December 2023 VAQ employee town halls Media response/release including survey results February 2024 Onsite visits with RFI Responders March 2024 Onsite visits debriefs with firm and Foundation Chair March 29,2024 City Council closed session debrief The next few slides provide the background on the existing operation model: Recap: Existing Partnership Model Highlights City of Virginia Beach Foundation • Pay for,own,operate and maintain the Purchase and own the Virginia Aquarium's Virginia Aquarium(including its animal population and exhibits buildings and grounds)as a City department Raise money through fundraising to support operations,capital investment, the stranded animal response program, conservation,and scientific research efforts • Fund and run Virginia Aquarium educational programs March 26, 2024 7 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Recap The Situation Addressing the Situation • VAQ key assets at end of useful • Status quo-unsustainable life • Reduced scope$50M -$75M • Documented through public briefings and media that exhibits • Original$200M -$300M have been intermittently down renovation and expansion over the past couple of years+ Aquarium needs capital • Alternative partnership model investments Addressing the Situation: Status Quo FY24 City currently subsidizes the Aquarium Budget(City) —$7.4M each year Operating Expenditures' $16,021,491 Utilities" $1,960,720 CIP Appropriations $2,818,940 • City currently allocates$2M a year for Debt Service(estimated principal) $621,741 capital investment at the Aquarium Expenditures Total $21,422,792 Operating Revenue $12,983,794 Aquarium has capital needs Admission Tax $944,125 Sales Tax $147,523 Real Estate Tax _ Funding anything over$2M a year Revenue Total $13,975,444 requires Council to cut/reduce other capital projects,decide to not invest in Difference ($7,447,348) other priorities,or increase revenue 'excludes indirect costs ••FY23 actual costs March 26, 2024 8 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Addressing the Situation: $50M - $75M FY24 Budget(City) Operating Expenditures' $16,021,491 $5M-$7.5M more in annual debt Utilities— $1,960,720 service payments CIP Appropriations $2,818,840 Debt Service(estimated principal) $621,741 Creates new spaces for the animals Expenditures Total $21,422,792 • City would need to address what Operating Revenue $12,983,794 happens to existing aging infrastructure Admission Tax $944,125 Foundation's fundraising efforts may Sales Tax $147,523 reduce amount needed in debt Real Estate Tax Revenue Total $13,975,444 Anything over current funding level requires Council to cut/reduce other Difference capital projects,decide to not invest in `excludes indirect costs other priorities,or increase revenue ••FY23 actual costs Addressing the Situation: $200M - $300M FY24 Budget(City) Operating Expenditures" $16,021,491 $2OM -$3OM more in annual Utilities- $1,960,720 debt service payments CIP Appropriations $2,818,840 Debt Service(estimated principal) $621,741 Creates parking deck,new spaces, Expenditures Total $21,422,792 and addresses existing aging infrastructure Operating Revenue $12,883,794 Admission Tax $944,125 Foundation's fundraisin&efforts may Sales Tax $147,523 reduce amount needed In debt Real Estate Tax Revenue Total $13,975,444 Anything over current funding level requires Council to cut/reduce other capital projects,decide to not invest Difference in other priorities,or increase 'excludes indirectcosts revenue ••FY23 actual costs March 26, 2024 9 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Addressing the Situation: Broader City Scan Unfunded Needs and Delayed/Deferred Projects -------_-..__ •Insufficient funds to meet additional funding requests for existing and new Orofe<[s totaling more than$634 million , _:.�, F.._ W r _ •Ind u ing Flood Rotection Section requested need grows to$991 .._.�.�, mil ion City's debt metrics and capacity shared with Virginia Beach City Public Schools Recap The Situation Addressing the Situation •VAQ assets end of useful life • Status quo-unsustainable • Documented through public • Reduced scope$50M -$75M briefings and media that exhibits have been • Original$200M -$300M intermittently down over renovation and expansion the past couple of years + Aquarium needs capital • Alternative partnership model investments March 26, 2024 10 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) The next few slides summarize research completed for Alternative Partnership Models: Alternative Partnership Models Research Reviewed partnership models for 32 of 57 U.S. aquariums accredited by the Association of Zoos&Aquariums and 13 accredited zoos Private Entity,27% Nonprofit&Private Entity,7% Nonprofit Operates& Govt Owns,29% Nonprofit Standalone, 20% March 26, 2024 11 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Observations: Changes in Model Used • Center of Aquatic Sciences at Adventure Aquarium:Private Entity"acquired Adventure Aquarium." Sacramento Zoo:In 1997,as City funding continued to decrease,the Sacramento Zoological Society took over financial and daily management of the zoo from the City of Sacramento. • Birmingham Zoo:"With so many financial demands on the city taking precedence and no leadership when it was needed most,the Zoo lost accreditation by the Association of Zoos&Aquariums.In 1999 Mayor Richard Arrington led the way for the privatization of the Zoo,recruiting strong community leaders to serve as the first Board of Directors of a new organization,Birmingham Zoo,Inc.(BZI).The new organization established a transitional funding package with contributions from four government entities to support BZI during its first five years of operation.BZI is now in its nineteenth fiscal year as a private,non-profit organization" • Seattle Aquarium:"Opened in 1977,the Seattle Aquarium was owned and operated by the City of Seattle Department of Parks and Recreation until 2010,when the nonprofit Seattle Aquarium Society assumed its management—a model used by most leading zoos and aquariums across the country." • Atlanta Zoo:"In 1984,a series of highly publicized events revealed deteriorating conditions at the Zoo, prompting Parade magazine to label the institution as one of the top 10 worst in the nation.A subsequent investigation lost the Zoo its accreditation,and an outraged public demanded that the facility be closed.Mayor Andrew Young assembled an emergency crisis team.New governance followed in 1985,with the Zoo's privatization and the creation of the nonprofit Atlanta Fulton County Zoo,Inc." Alternative Partnership Models Virginia Beach monnot— March 26, 2024 12 CITY MANA GER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Here is an overview of the Media Coverage: Broader Awareness: Media Coverage Aquarium foundation sp rUtOr•Bvlaeen bedonefor$SOM.$75M,imtead of original amounla times that prior VapMa Beach e�palyM znrp Q?4 eptaro ror Ayrwriun.na rNip oin a possW¢ Vugmla Beech leaders welplt futMhp gpyons.<onsWer change of ownership for ApuarWm .y. Virgima Beech explores private ownership oplo.for V+rginia Aquarium Vnqinia Beach s esploring private ownership optiom for WgiAa Aque rum VB eaploring alternatwe ownership,operations)models for aquarium Virgmla Beach esplorinq new ownership options for Aqua rum.not,hng out a possible sale Virgima Beach rs espbriny prnme OKII!ltMp pptions uarium for Virginia Aq *'•-"'•+ Status:"RO Public Media wo w�w.yrbw... trsµ..n ,..-,.. ••. ••: roz ,......mw=w�.e.vpw. as�rwv REPORTS .. ....,�....... -_.::... .. r...w.eaeA.r.r:wn»s.<e.rw.- Balanced Media Coverage December 14,2023,WAVY "Currently,Virginia Beach taxpayers are subsidizing the "We are in the process right now of reworking our plans aquarium to the tune of almost$8 million a year.." for a scaled-back approach for the aquarium,"said Daniel Peterson,said Daniel Peterson,current chair of "But who other than the city could possibly write the check? the foundation..." The city manager's office is now tasked with trying to figure that out" "Peterson...said the foundation would consider a privatization of the aquarium,saying it would be "After looking at 32 of 57 U.S.aquariums accredited by the "foolish for us not to consider all potential options."' Association of Zoos&Aquariums and 13 accredited zoos,the city manager's office found only eight have the model Virginia "When it comes to his largest concern right now?It's Beach has,in which the nonprofit supports the mission and time."Peterson said,"If I have an exhibit that is going to philanthropic fundraising while the government owns and fail in two years and it's going to take two years to build. operates the facility." I don't have the luxury of waiting 6,12,18 months for the city to go through this exercise they are conducting and nothing comes of it" March 26, 2024 13 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) This slide provides three (3) main questions from Virginia Aquarium employees and the Foundation's recommendation for a reduced scope of$50-$75-Million: Employees + Foundation • Employees • How would employment be impacted if City transitions to new model • What happens to stranding response •. ..-..�..« ...mow.— ». .� program if City transitions to new model • When can they expect a decision to be made and communicated ,s _ ,• , • Foundation •. _� Reduced scope$50M-$75M _ � • Animal welfare,exhibits conditions ^""" "T^"• ••�'^" • Timing matters,desire for clarity The next two (2)slides provide an overview of community survey results: Community • Every method of scientific inquiry is subject to limitations and choosing among research methods inherently involves trade-offs' • Unlike focus groups,interviews,etc.,one of the trade-offs with survey research is data that are produced likely lack details or depth on the topic being investigated' • However,unlike focus groups,interviews,etc.representative sample surveys document that a perception is widespread enough to be observable in the general population and allow researchers to explore whether certain perceptions vary by people's attributes' • Surveys are an efficient way to collect information about a large group of people 'Penny S.Visser,Jon A.Krosnick,and Paull.lavrokas,'Survey Research."In Harry T.Reis and Charles M.Judd(Eds.)Handbook of Research Methods in Social Psychology.New York:Cambridge University Press,2002. March 26, 2024 14 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Community •Third-party administered survey VerySupportive" to Neutral $200M-$300M 77% • Random-sample, statistically investment valid 3'd party operator 72% 3rd party owner 61% • Demographically representative sample Roads • Stormwater/flooding • +/-4.4% margin of error at the • School buildings 95% confidence level Ranked as higher infrastructure priorities Alternative Partnership Models Market Interest March 26, 2024 15 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Here is an summary of the RFI issued in September: Market Interest - RFI • Issued RFI in September • A.Organization Profile 1. Company Name 2. Comp a ny Address 3. Brief company history and experience in the field 4. Company point of contact for RFI Response(Name,Title,Phone,Email) • B.Statement of interest to operate,lease,and/or purchase the Aquarium • C.list of zoos,aquarium,and/or entertainment attractions within Company's portfolio 1. If a zoo or aquarium is within the Company's current portfolio,please provide information on the operational and ownership model used for each zoo and/or aquarium. • D.Statement indicating willingness to demonstrate the organization's financial stability and financial capability to operate,lease and/or purchase the Aquarium upon request under mutually agreeable terms • Non-binding • Three firms expressed interest,two submitted formal responses z, Market Interest: Expressed Interest • Expressed interest • Currently learning more about the company 11� • Experience operating local government-owned aquarium 1 • St. Louis Aquarium • Children's Aquarium Dallas March 26, 2024 16 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Ripley Entertainment and Herschend Enterprises submitted formal responses: Market Interest: RFI Responders '� _ vrk HERSCHEND "01 TER 0'.prig SUPER JOG ME s. � tm The next three (3)slides provide an overview of Ripley Entertainment: Market Interest: Ripley Entertainment • Part of The Jim Pattinson Group K)M9 • 2"a largest privately-owned company in Canada JOG M SUPER • More than 49,000 employees • Ripley Entertainment • Owns,operates,and franchises +� awmuft RUY over 100 attractions under 12 brands in 10 countries Ch • Over 14 million guests each year TOM Tsui amom 'lurch 26, 2024 17 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Market Interest: Ripley Entertainment • Aquariums: EIII�VIt� p Myrtle Beach,SC �� Gatlinburg,TN Toronto,Ontario,Canada Aquarium of the Smokies(Gatlinburg,TN)since 2017 has been ranked by USA Today 10 Best t Readers'Choice as best or second-best aquarium in — North America • "Our mission is to provide a top quality,world class aquatic life facility that will foster environmental education,conservation,and research,while simultaneously providing entertainment for visitors of all ages.As a Green Power Participant,we are proud supporters of locally generated,renewable resources." n Market Interest: Ripley Entertainment • Aquariums: Year opened/acquired first 1997 Myrtle Beach,SC Aquarium Gatlinburg,TN •q Aquariums in portfolio 3 Toronto,Ontario,Canada N AZA-accredited 3 • Aquarium of the Smokies(Gatlinburg,TN)since Aquarium size range— 1.1M—LEM 2017 has been ranked by USA Today 10 Best gallons of water Readers'Choice as best or second-best aquarium in Experience w/acquisitions No North America Experience w/govt Yes Experience w/foundations No,but expressed "Our mission is to provide a top quality,world class openness to it aquatic life facility that will foster environmental education,conservation,and research,while Marine Science Center Yes simultaneously providing entertainment for visitors Stranding and rescue No of all ages.As a Green Power Participant,we are proud supporters of locally generated,renewable operations resources.' 26 March 26, 2024 18 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) The next three(3)slides provide an overview of Herschend Enterprises: Market Interest: Herschend Enterprises • Founded by Jack and Pete Herschend in 1950's • Private,family-owned • Largest family-owned themed attractions organization in U.S. • More than 11,000 employees • Herschend Enterprises • Creates,develops,and operates 26 entertainment properties across North America • Over 14 million guests each year Market Interest: Herschend Enterprises • Aquariums: • Newport,KY(Cincinnati region) ' Camden,NJ(Philadelphia region) Vancouver,Canada II r Newport IAquarium and Camden Aquarium continuously listed in the USA Today Top 10 Best „ Aquariums by popular vote "Herschend is committed to its vision of Bringing t ; Families Closer Together®and its mission of „ Creating Memories Worth Repeating by producing wholesome,immersive family entrainment experiences.It is our preference to maintain and _ preserve the core values and operations of all our companies while infusing our culture of Leading " with Love®" March 26, 2024 19 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Market Interest: Herschend Enterprises ■� Aquariums: Year opened/acquired first 2008 Newport,KY(Cincinnati region) Aquarium Camden,NJ(Philadelphia region) #Aquariums in portfolio 3 Vancouver,Canada q AZA-accredited 3 Aquarium size range— 1M—2.5M Newport Aquarium and Camden Aquarium gallons of water continuously listed in the USA Today Top 10 Best Experience w/acquisitions Yes Aquariums by popular vote Experience w/govt Yes Experience w/foundations Yes "Herschend is committed to its vision of Bringing Families Closer Together®and its mission of Marine Science Center Yes,partnership with Creating Memories Worth Repeating®by producing non-profit wholesome,immersive family entertainment Stranding and rescue Yes,one of largest mammal experiences.It is our preference to maintain and preserve the core values and operations of all our operations rescue ops in world, companies while infusing our culture of Leading partnership with non-profit with Love®." r Alternative Partnership Models Responders Site Visits March 26, 2024 20 CITY MANA GER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) THE EXPLORATION: Sustainable Future • The City has been on a deliberate path of • Status quo-unsustainable evaluating how best to position the Virginia Aquarium to meet its mission while remaining realistic about the City's • Reduced scope$50M -$75M financial obligations,myriad of capital infrastructure needs,and taxpayer • Original$200M -$300M affordability. renovation and expansion • Council has been requesting and leveraging quantitative and qualitative • Alternative partnership model data to inform discussions. The last two (2) slides provide Potential Path Forward and Considerations for City Councils Discussion and Direction: Potential Path Forward Considerations Status quo:Continue Current Funding Continuation of-$7.4M subsidy • Major key assets are at end of useful life •Inevitable near-term need of emergency repairs and/or decommissioning exhibits •Concerns about condition of key assets and timeframe not addressed •Doesn't require establishing new partnership Increase investment:Original Scope Requires CIP reductions,decision to not invest in other priorities,and/or increase revenue, $20M-$30M more in annual debt service(Foundation fundraising could decrease amount) •Projected increase in economic impact and increased visits •Addresses aging infrastructure while also providing new exhibits and features •Doesn't require establishing new partnership Increase investment:Reduced Scope Requires CIP reductions,decision to not invest in other priorities,and/or increase revenue, $5M-$7.5M more in annual debt service(Foundation fundraising could decrease amount) •Doesn't completely address what happens to existing aging infrastructure •Doesn't require establishing new partnership Alternative Partnership:RFP Structured deadlines and timelines,less flexible •Likely takes longer 4 may unfavorably impact operations,staffing,market interest •Commitments on paper to be acknowledged •Reduces taxpayer obligation for funding an asset where a proven private market exists •Requires establishing new partnership •Owners'Representative Alternative Partnership:Competitive Direct Opportunity for agile deadlines—could go faster or slower Negotiations Nimble allowing for engagement and understanding of stakeholders'priorities and interests • Reduces taxpayer obligation for funding an asset where a proven private market exists • Requires establishing new partnership •Owners'Representative March 26, 2024 21 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM UPDATE ITEM#75450 (Continued) Council Discussion + Direction For consideration:Continue pursuing Alternatives to Consider alternative partnership model through competitive direct negotiations. • Current subsidy+avoids$5M-$30M in additional Status quo-unsustainable annual debt service • Most accredited aquariums and zoos not owned+ operated by gov't • Reduced scope$50M $75M Roads,flooding/stormwater school buildings • ranked as higher priorities 4 preserves debt capacity • Reduces taxpayer obligation where a proven Original$200M-$300M private market exists renovation and expansion Successful transitions have occurred with private entities preserving stranding programs,research, and educational efforts • Top accredited aquarium companies have expressed interest in partnering with Foundation and City Mayor Dyer expressed his appreciation to Ms. Croskey for the presentation. *City Council took a break from 3:43—3:51 P.M. March 26, 2024 22 CITY MANAGER'S BRIEFINGS PENDING PLANNING ITEMS ITEM#75451 3:51 P.M. Mayor Dyer welcomed Kaiden Alcock, Planning Administrator. Ms.Alcock expressed her appreciation to City Council for their continued support: PLANNING ITEMSJL VIRGINIA BEACH There is one(1)Planning Item scheduled for April 2"": SUMMARY - April 1. Lynnhaven Mail,LUC—District 3 1 Planning Item Scheduled for City Council's Consideration Conditional Use Permit(Outdoor Recreational Facility) Recommended for Approval by Planning Commission&Staff March 26, 2024 LYNNHAVEN MALL, LLC ITEM City Council:District 3 1 Location:701 Lynnhaven Parkway 1' Fi CONDITIONAL USE PERMIT(Outdoor Recreational Facility) Staff recommends Approval Planning Commission voted 10 to 0 to recommend Approval 3 VB J j. �I • A Conditional Use Permit request for an Outdoor Recreational Facility to operate a 40,000 square foot inflatable park, known as FunBox • Hours of Operation: 10:00 am to 7:00 pm,seven days a week • Operation will be seasonal between the months of March to September LYNNHAVEN MALL,llC 14 VQ > • Park consists of 4 inflatables with a concession stand Planning Comrnisvon amended Condition 2 to allow serving limited items amplified speakers&music • Park enclosed with a temporary 6-foot-tall chain link No known opposition fence covered with black mesh • Parking met on site 24 CITY MANA GER'S BRIEFINGS PENDING PLANNING ITEMS LYNNHAVEN MALL,LLC 15 There are thirteen (13)Planning 'I 'I / April SUMMARY — April 16tn 13 Planning Items Scheduled for City Council's Consideration 1. City of VirginiaBexh • An Ordinance to amend Section 11_1_of the Ci Zoning Ordinance oertainina to the definition of terms • Recommended for Approval by Planning Commission&Staff 2. Virginia8eachAVARE,LC—Distrid3 • Street Closure • Recommended for Approval by Planning Commission&Staff 3&4.Virginia EleMric&Power Compartydba Dominion Energy Virginia —Districts • Conditional Remnin�(Conditional B-2 Community Business District to Conditional I-1 Industrial District)&Conditional Use Permit(Bulk Storage Yard) • Recommended for Approval by Planning Commission&Staff S-9. Wycliffe Presbyterian Church&BHC,LLC—DisMct6 • Modrfioation of Conditions,Conditional Rezoninas(R-10 Residential[o Conditional O-1 Office&R-10 Residential to Conditional R-10),Subdivision Variances(Section 4.4(b)of the Subdivision Regulations for Parcel A)(Section 4.4(b)of the Subdivision Regulations for lot S) • Recommended for Approval by Staff&Denial by Planning Commission 6 March1 SUMMARY — April 16tn 13 Planning Items Scfieduled for City Council's Consideration 10. CarlR.Ellis,Jr—Oistrict8 • Subdivision Variance(Section 4.4(b)of tfie Subdivision Regulations) • Recommended for Approval by Planning Commission&Staff 11. Som Primitive,LLC—District6 • Modification of Proffers • Recommended For Approval by Planning Commission&Staff 12.Terry Moore Miffleton—Districts • Conditional Use Permit(Short Term RentaQ • Recommended for Approval by Planning Commission&Staff 13.CCWAppealforguildir�3—Oistrict2 • Appeal to Certificate of Appropriateness Recommended for Denial by Historical Review Board&Staff z Vf3 CITY OF VIRGINIA BEACH 1 An Ordinance to amend Section 111 of the City Zoning Ordinance pertaining to the definition of terms. 25 CITY MANA GER'S BRIEFINGS PENDING PLANNING ITEMS TEXT AMENDMENT Staff recommends Ap�royal Planning Commission voted 10 to 0 to recommend Approval s V8 March I • The proposed amendment is a housekeeping item to provide clarity and consistency within the Zoning Ordinance. • The following amendments to Section 111-Definitions are proposed: 1. Amend the definition of"Home Sharing" 2. Amend the definition of"Dwelling Unit" 3. Amend the definition of"Kitchen" 4. Add a definition of"Porch." Cltt OF VIRGINIA BEACH i 9 1. Amend the definition of"Home Shoring"to replace the term"dwelling"with"dwelling 26 CITY MANAGER'S BRIEFINGS PENDING PLANNING ITEMS unit;'a term that is defined and specific to the intention of the Ordinance 16 Home shanng A dwelling unit in which a 37 compensation for a period of le�s than thirty ro om 2. Amend the definition of"Dwelling Unit"to replace the term"housekeeping unit"with )consecutive days by an owner 38 utilizes the dwelling unit as his principal residence and occupies the'dwelling unit u n 39 any such rental period. "residence,"which is consistent with the intention of the Ordinance residence30 Dwelling unit,A "dwelling unit" is a room or rooms connected together, 32 permanent provisions for living,sleeping,eating,cooking and sanitation. CItt OF VIRGINIA BEACH 110 March I 2024 BRIEFINGS27 PENDING PLANNING ITEMS 3. Amend the definition of "Kitchen" to replace the term "housekeeping unit" with on fQf 48 Porch. A one two,or three-stor, structure attached to a building tQ shelter an 49 entrance or to serve as covered but unenclosed space "dwelling unit" and to specify that a kitchen must have permanent provisions for cooking 4. Add the definition of "Porch," currently only defined in the Form Based Code, to Section 111 of the Ordinance CITY OF VIRGINIA BEACH�11 VB VIRGINIA BEACH AVA RE, LLC TEM City Council:District 3 2 Location:Portion of the right-of-way east of 2375 Virginia Beach Blvd STREET CLOSURE Staff recommends Approval Planning Commission voted 10 to 0 to recommend Approval iz VB MarchI • Applicant proposes to close The remaining 813 sf of a 30-foot wide unnamed and unimproved right-of-way between Virginia ® Beach Blvd and Interstate 264(shown in blue) • On February 20,2024,City Council approved the closure of the majority of the unimproved right-of-way(shown in orange) • This portion of the request was referred back to Planning Commission for reconsideration due to an error in '`� advertisement VIflGIN1A BEACH AVA RE,LLC�13 �rV r, • Applicant proposes to Incorporate the closed portion into the existing automobile dealership parking lot to the west • No concerns raised during the Viewers Meeting • No known opposition ��p VIRGIN IA BEACH AVA RE,LLC 14 Yo MarchI 2024 VIRGINIA ELECTRIC & POWER COMPANY DBA DOMINION ENERGY VIRGINIA 3 & 4 City Council:District 5 Location:2585 Dam Neck Road CONDITIONAL REZONING (Conditional B-2 Community Business District to Conditional I-1 Industrial District) CONDITIONAL USE PERMIT(Bulk Storage Yard) Staff recommends Approval Planning Commission voted 10 to 0 to rernmmend Approval is VB • Rezoning request of 13.8 acres from Conditional B-2 to Conditional I-1 to '� - construct an office/warehouse �, _� �.�r�° ■ building I_"�` i A Conditional Use Permit request for _ , � a Bulk Storage Yard to store � equipment used to support ' '",����- transmission Dominion Energy �� °`""` operations in the area Temporary access from Dam Neck Road until the future public roadway to the west,known as Twin Mills Road,is constructed VIRGINIA`ELECTRIC&POWER COMPANY DBA DOMINION ENERGY VIRGINIA i 16 �y --- March 26, 2024 I CITY AMNA GER'S BRIEFINGS PENDING PLANNING ITEMS INK mi 4= SA- • Applicant intends to meet the screening requirements through the retention of existing vegetation • The proposed office and bulk storage yard are compatible uses within the>75 d8 DNL noise zone of AICUZ • No known opposition VIRGINIA ELECTRIC&POWEfl COMPANY DBA DOMINION ENERGY VIRGINIA 11� VB WYCLIFFE PRESBYTERIAN CHURCH & BHC, LLC ITEMS City Council:District 8 5�9 Location: 1445 North Great Neck Road&2307 Millwood Road MODIFICATION OF CONDITIONS&CONDITIONAL REZONINGS(R-10 Residential to Conditional O 1 Office&R-10 Residential to Conditional R-10 Residential) &SUBDIVISION VARIANCES(Section 4.4(b)of the Subdivision Regulations) March Staff recommends Approval Planning Commission voted 5 to 5 to recommend Denial '»�% i 2024 31 CITY MANA I BRIEFINGS PENDING , PLANNING 17, Church seeks to remove a 3.88- __ acre parcel from the CUP for Religious Use,currently zoned R-10 • 2.43 acres proposed to be rezoned to Conditional O-1 Parcel , Parcel R Office r • 1.45-acre portion to be rezoned to Condonal R-10 • Shared private road proposed (Wycliffe Presbyterian Church Property) from Millwood Road 4 WVCLIFFE PflE56ttERiAN CHURCH&BHC,LLC 179 • Existing 3,522 sf building to be retained,proffers allow for a maximum 500 sf addition ���� Existing to pond to remain Cr (WVcliffe Presbyterian Church Property) • Landscape buffer provided adjacent to existing and proposed residential Lot width variance required due to existing 30-foot Dominion easement r-,. � - } Proffered uses include: - Medical/dental offices/clinics • Professional offices • Nonprofits Religious uses ��p WYCLIFFE PRESBYrEft1AN CRUNCH&BHC,LLC 120 !q • Proposed S-lot single-family subdivision • 10-foot landscape buffer and 6- !�� foot privacy fence proposed along Millwood and N Great Neck • Private road meets Fire Dept standards for access i • Parcels to be served by Public water/sewer from N Great Neck • Private trash collection • Flag lot proposed for Lot 5 to allow utility conneMions �JQ WYCUFFE PRESaVTERIAN CHURCH&aHC.1.LC 121 �g.! 'k a 3x�, • Subdivislon Ordinance typically requires 8%open space for proposed residential subdivisions with lot sizes ranging from 10,000 sf to 14,999 sf • As proposed,the R-10 portion would require 6,OS6 sf of open space to serve the 5 proposed lots • Applicant is requesting a cash in-lieu payment as allowed by Section 4.S(b)of the Subdivision Regulations since the required open space is less than Y acre wraIFFE PReserrERIAN cHuecH aRHc,uc I zz • S-foot-tall freestanding monument style sign proposed for Conditional O-1 Parcel only • 2 letters of concern&i9 letters of opposition received stating concerns related to lack of open space,flooding, stormwater,and use of existing building for office uses • 1 speaker in support&10 speakers in opposition at the Planning Commission hearing ��p V✓YCUFFE PRESBVTERIAN CHURCH&OHC,LLC 123 w_Y CARL R. ELLIS, JR ITEM City Council:District 8 1 O Location:2620 Broad Bay Road SUBDIVISION VARIANCE(Section 4.4(b)ofthe Subdivision Regulations) Staff recommends Approval Planning Commission voted 8 to 2 to recommend Approval ,4 �� • Request for a Subdivision Variance to Section 4.4(b)of Subdivision Regulations for Lot Width �:' �` Lot created by plat in March 1952,prior to ' � >-µ°� adoption of Subdivision&Zoning Ordinance � '"`�� Seeks to subdivide lot into 2 parcels both � ��� deficient in lot width by less than 2 feet �,.4 ��� Lot 8A—deficient by 0.97 feet � '' Lot 88—deficient by 1.49 feet � Per Section 4.1(m)of Subdivision Regulations a 50-foot right-of-way width is required, Broad Bay Road right-of-way is 40-feet • 5-foot right-of-way reservation proposed along Broad Bay Road prior to development of lots CARL.R.ELUS,JR.125 �• BORN PRIMITIVE, PLC ITEM 34 CITY MANA GER'S BRIEFINGS PENDING PLANNING ITEMS City Council:District 6 11 Location:Southeastern corner of the Intersection of Virginia Beach Boulevard&North Oceana Boulevard It March it MODIFICATION OF PROFFERS Staff recommends Approval Planning Commission voted 10 to 0 to recommend Approval 1 2024 • Requesting to amend proffers 2&3 of 2023 25-foot wide Category II landscape buffet Proffer Agreement to increase building height proposed(privacy fence+landscaping)— from 26 feet to 35 feet enhanced with mixture of large shrubs, understory trees,and canopy trees growing • 34,313 sf warehouse with 7,004 sf ancillary office between 12 to 35 feet at maturity space BORN PRIMRNE,LLC J 2R �iy1 35 CITY MA NA GER'S BRIEFINGS PENDING PLAAWING ITEMS ITEM#75451 �ss C""a .Jm mL— March .'4 • Proposed Elevations revised to add additional and larger windows to break up the mass of the exterior facade • Hours of operation:9:00 a.m.to 6:00 p.m.daily • No known opposition BORN PRIMITIVE,LLC 129 Y.0 I TERRY MOORE MIFFLETON City Council:District S 12 Location:303 Atlantic Avenue,Unit 403 CONDITIONAL USE PERMIT(Short Term Rental) 36 CITY MANA GER'S BRIEFINGS PENDING PLANNING ITEMS i A Staff recommends Approval Planning Commission voted 10 to D to recommend Approval V$ to 0 tee....., i 60 • Two-bedroom unit in the Dolphin Run Condominiums, T, One assign. We specifically for Unit 403 only • No past or current zoning violations for this unit • 1 parking space required(historical exemption granted) one space needed p• No known opposition TERRY MOORE MIFFLETON 131 s},7 March1 37 CITY MANA GER'S BRIEFINGS PENDING PLANNING ITEMS ITEM#75451 (Continued) 9S N'8� TERRY g1HSt n m � m f > A m TERRPCE PVE m J .N1NS10N Sr`IEdR PVE 1 0 �p � Short Term Rentals. P 0 �e STR Permits�60i •.• APPEAL PARTIAL DENIAL OF • 1 #23-11 ITEM City Council:District 2 13 Location:Building 3,2403 Courthouse Road APPEAL TO PARTIAL DENIAL FROM HISTORICAL REVIEW BOARD r 1 I � of•.. .. Historical Review Board voted 6 ..with 1 abstention to recommend.- March 26, 2024 • Appeal of partial denial from Historical Review Board(HRB)for the after-the-fact replacement of historic slate roof with new synthetic slate roof for COA#23-11 Jan.19,2022:HRB approved COA#21-20 for renovations to Building 3 • Scope excluded alterations or repairs to roof a _ - � j Nov.29,2023:Historic slate observed to have ' been removed from Building 3 ..i: -� Dec.4,2023:Application for after-the-fad_ "`�'-- approval for slate removal and replacement with synthetic slate - Dec.20,2023:HRB approval of opening modifications and denial of the removal of historic slate and replacementwith synthetic slate APPEAL:PARTIAL DENIAL OF COA q23-11 134 • HRB reasons for denial - Building 3 is a contributing resource to National Register District ���: Slate roof is major character-defining feature ;� ��� of Building 3 and is very prominent • Synthetic slate is an inappropriate • °�` replacement for natural slate: • Does not meet Secretary of Interior's 38 CITY AMNA GER'S BRIEFINGS PENDING PLANNING ITEMS 15"me if Standards for Rehabilitation B.iwmgUniformity of appearance u How material ages March • Shorter expected life span(30-50 years �� vs.60-120 years of natural slate) �� � � Proposed synthetic slate is different from `����` product used on City HaII and Building 2 which has since been discontinued APPEAL:PARTIAL DENIAL OF COA p23-11 135 �CiP I • Building 3 expected to have capacity "= to support the weight of a natural slate roof ) • Note:As cost is not included in criteria for approval of COAs per Sec. 1303(c)(1)of the Zoning Ordinance,it is not a factor considered by the Historical Review Board in their evaluation 39 CITY AMNA GER'S BRIEFINGS PENDING PLANNING ITEMS APPEAL:PARTIAL DENIAL Of COA#23-11 i 36 Mayor expressedhisappreciationIMs.Alcockforpresentation. March I 40 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) COMMONWEALTH'S ATTORNEY ITEM#75452 4:23 P.M. Mayor Dyer welcomed Colin Stolle, Commonwealth's Attorney. Mr. Stolle expressed his appreciation to City Council for their continued support: Here is the Organization Summary: Organization Summary 122.83 3 $14,402,888 March 26, 2024 41 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) COMMONWEALTH'S ATTORNEY ITEM#75452 (Continued) FY 2024-25 Programmatic Budget PROPOSED Forfeited Assets,$100,000, 1% General Fvnd,$: 95% Here is the Department Operating Budget: Department Operating Budget Program FY t Amended �—FY2024-25 F TE (100)General Fund Support: - - - - - - OCAGeneralFund $12,943,415 110.91 $13,772,758 111.91 $829,343 6,41% (270)Consolidated Grants - - - - - VictinnWitnessGrrant $533,865 11.92 $530,130 10.92 ($3,735) -0.70% Forfeited Assets $100,000 0 $200,000 0 0 - Tatal $13,577,280 122.83 $14,402,888 122.83 $825,608 6.08'. March 26, 2024 42 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) COMMONWEALTH'S ATTORNEY ITEM#75452 (Continued) The next two (2) slides provide Major Changes&Initiatives: Major Changes & Initiatives Implementation of VBPD and VBSO Body-Worn Cameras and in-car cameras increased the workload for CWA attorneys and support staff. Expected Victim Witness Grant decrease.FY24 grant funding faced a 10%reduction in funding. VOCA funds are projected in FY25 to be decreased by 41%across the nation. The impacts on our office,as well as other entities receiving these grants,will be far reaching. Changes to Virginia's jury sentencing process and discovery rules substantially increased workload for attorneys and paralegals in trial preparation and time in court. The Compensation Board of the Commonwealth of Virginia contracted with the National Center for State Courts to perform a comprehensive time study of the duties and responsibilities of all Commonwealth's Attorney Offices across the state.The study will help the Compensation Board and the Virginia Association of Commonwealth's Attorneys recommend an allocation of resources based on specific metrics. Working with the Virginia Beach Circuit Court,the Office of the Commonwealth's Attorney administers the Virginia Beach Drug Treatment Court,which is an alternative sentencing court related to adult drug offenders. Collectively,we are working to add additional specialty courts to include a Veteran's Court and a Juvenile Drug Court.These would also be non-traditional methods of resolving offenses aside from normal criminal proceedings. Initiatives Underway & Conclusion CWA taking on additional cases for prosecution,including school threats. CWA also received a 3-year grant to help fund the prosecution of misdemeanor concealed weapons charges. Working with the VBPD on a process to receive digital files so that we can move closer to a digital office. Ongoing project to scan major criminal case files,to save on physical space and assist in the easier retrievals of files. OCA focus on mental health with the Peer Support Program and service dog,Zuhey. Continuing to utilize technology to save time and money and increase efficiency. Mayor Dyer expressed his appreciation to Mr. Stolle for the presentation. March 26, 2024 43 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) CLERK OF THE CIRCUIT COURT ITEM#75453 4:29 P.M. Mayor Dyer welcomed Tina Sinnen, Circuit Court Clerk. Ms. Sinnen expressed her appreciation to City Council for their continued support: FY 2024-25 PROPOSED BUDGET �I Tina E.Sinnen,Clerk A Here is the Organization Summary: Organization Summary Number of Divisions Total FY 2024-25 Budget 57 6 $5,284,832 March 26, 2024 44 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) CLERK OF THE CIRCUIT COURT ITEM#75453 (Continued) FY 1 4 Budget co ., a,eae.ae o•e,u,n _ ,14 s<o.mo oo�„ ssax,rsa.m u.n wnaaFaMNrrer s•.oxx.aer.m �F Here is the Department Operating Budget: Department Operating Budget Program FY F F Amended FTE Proposed FTE State Funded FTEs& $3,927,857 52 $4,071,385 52 $143,528 3.7% Taxes/Benefits' City Funded FTEs& Taxes/Benefits $282,353 5 $310,678 5 $29,325 10.0% Contracted Manpower $35,000 N/A $40,000 N/A $5,000 14.3% Operating Expenses $107,076 N/A $137,520 N/A $30,444 2&4% Risk Management $617,572 N/A $601,707 N/A (S15,865) -2.6% Information Technology — N/A $123,542 N/A $123,542 100% Total $4,969,858 57 $5,2KO32 57 $914,974 as% '$2,827,907 In reaemxe from the state Compe—thn Board offsets IN;expense March 26, 2024 45 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) CLERK OF THE CIRCUIT COURT ITEM#75453 (Continued) The next two (2)slides provide Major Changes&Initiatives: Major Changes & Initiatives • The use of our E-Filing VA system on our court side where you can file civil and criminal case documents continues to grow within our community which significantly reduces the flow of traffic in the building and helps with the efficiency of our workload. • We were able to convert all of the Military Discharge documents (DD- 214s)from paper into our electronic recording system within a confidential folder, making our response time for answering questions and requests for certified copies much quicker for our Veterans. Initiatives Underway & Conclusion • We are getting ready to Install a new jury system to replace the one we haw:currently which I believe will help us to be more cost efficient,ease the current workload,and help us be more productive with the time we will save. In closing,I am wry thankful for my City,for realizing the care government senses that the Clerk's Office provides its citizens,and the importance of these services. •Some of those services consist of. remote access that we provide to our community with our on-line E-Recording system for land records(as you can imugime,it has been particularly helpful and necessary during these past pandemic years),and our Officer of the Coup Remote Access system which is a Supreme Court application for court filings.We also have our F.-fileVA system for the coon side which allows for the filing of civil and criminal documents.We also have our on-line Concealed Carry Permit program where someone can apply on-line for a first time conceal cany permit or a renewal permit.We continue striving to enhance our services by way of technology,and this is no easy task We continue to try and make our Supreme Court Case Management system borer for the legal community and community in general who depend on it.We continue with our court case information on electronic docket boards in the courthouse on the first floor and in front of each courtroom to help make it easier for the public to find out where they are supposed to be.We continue moving to become completely file-leas in our Civil Department as well as our Criminal Department.We will continue in our efforts to use common sense technology to be more efficient for our citizens.The technology in the Clerk's Office regarding land records and the more complicated court cases continues to be a very cost-effective component that greatly benefits our locality by not having to pay for these systems thereby reducing costs as well as aiding many City departments in the services their oticas off.Please keep in mind that just the maintenance alone on the land records system and the Supreme Court.systems costs right at$450,000 per year BUT currently there is absolutely NO cost to the locality,and hasn't been since 2009.in using or in paying for these systems.Now,more than ever,we know and have definitely experienced,that these systems are critical in providing services to the public. Mayor Dyer expressed his appreciation to Ms. Sinnen for the presentation. Due to time constraints the Circuit Court, Fire Department, Police Department and Emergency Management and Convention & Visitor's Bureau/Resort Management Office FY2024-25 Resource Management Plan (Budget)presentations will be re-scheduled for a later date: March 26, 2024 46 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) SHERIFF'S OFFICE ITEM#75454 4:35 P.M. Mayor Dyer welcomed Sheriff Rocky Holcomb. Sheriff Holcomb expressed his appreciation to City Council for their continued support: V .p. 0 �T .', e M* '.' �4p � r 94 Here is the Organization Summary: Organization Summary 536.4 11 $69,296,520 March 26, 2024 47 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) SHERIFF'S OFFICE ITEM#75454 (Continued) FY 2024-25 Programmatic Budget Workforce rrrc 2% ems:. �f Here is the Department Operating Budget: Department Operating Budget � M $Change %Change ZETA $2,573,145 16.81 $2,607,732 16.81 $34,587 1.34% CareMart $609,386 8.44 $617,378 8.44 $7,992 1.31% Workforce $1,707,760 13.22 $1,723,791 13.22 $16,031 0.94% Inmate Support $3,400,911 40.80 $3,201,063 38,80 ($199,848) (5.88%) Operations $56,326,079 457.13 $61,146,556 459.13 $4,820,477 8.56% r r 536.40 March 26, 2024 48 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) SHERIFF'S OFFICE ITEM#75454 (Continued) The next two (2)slides provide Major Changes&Initiatives: Major Changes & Initiatives • New Medical Vendor Contract in FY24 • Aging Facility • Shifted Sources of Financing for the Jail Initiatives Underway & Conclusion • Recruitment Efforts to Reduce Vacancies • Alternative Sentencing Programs • Expanding Our"Road to Hope" Programs • D.A.R.E. Mayor Dyer expressed his appreciation to Sheriff Holcomb for the presentation. March 26, 2024 49 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) EMERGENCY MEDICAL SERVICES(EMS) ITEM#75455 4:47 P.M. Mayor Dyer welcomed Chief Jason Stroud. Chief Stroud expressed his appreciation to City Council for their continued support: Here is the Organization Summary: Organization Summary Total FrEs Number of-DiVisions Total FY 2024-25 Budget 169.12 8 $26,422,442 March 26, 2024 50 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) EMERGENCY MEDICAL SERVICES(EMS) ITEM#75455 (Continued) FY 2024-25 Programmatic Budget PROPOSED Business Center,$844,774, General Operating Expenses, 3% $4,350,277,17% Administration,$1,157,632, 5% Emergency Services, $2,501,326,10% c,+5 > a 4 . �•� ,ystem.$12 768,212,51% Personnel,$976 304,4%' Training,Learning,and Development,$1,704,093. 7% Here is the Department Operating Budget: Department Operating Budget- General Fund Program FY r L L t Amended FTE Proposed FTE Business Center $746,340 5 $944,774 6 $98,434 13.19% Emergency Response System $13,371,896 117 $12,768,212 117 -$603,684 -4.51% Training,Learning,and Development $1,382,350 12 $1,704,093 16 $321,743 23.28% Marine Patrol $649,014 11.62 $651,252 11.62 $2,238 0.34% Personnel $436,685 5 $976,304 6 $539,619 123.57% Emergency Services $2,741,378 6 $2,501,126 6 ($240,252) (8.76%) Administration $775,640 5.5 $1,157,632 6.5 $381,992 49.25% Lifeguard Contract $2,023,728 - $2,023,728 - $0 0% General Operating Expenses $2,155,837 3 $2,326,549 0 $170,712 7.92% Total $24,282,868 165.12 $24,953,670 169.12 $670,802 2.76% March 26, 2024 51 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) EMERGENCY MEDICAL SERVICES(EMS) ITEM#75455 (Continued) Here is a Year-in-Review.- Year-in-Review • New EMS chief,2 deputy chiefs,accountant,recruiter, payroll specialist,8 captains and 30 career responders onboarded. • New programs to increase transparency,communications,engagement and member satisfaction put in place. • Included a reduction in volunteer duty requirements. „•,, ,, • Net gain of 17 new volunteers in 2023 • Net loss of 26 in 2021 and 41 in 2022 r • • New schedule model deployed and ambulance staffing stabilized • Demand period staffing went up to 16 ambulances vs.12-14. ETMrgsne, r►r 1rkWn'ti SWVKc.. The next two (2)slides provide an overview of EMS Staffing and Response: EMS Staffing and Response • 18 ambulances are needed as baseline staffing. • 1 per 3,000 calls-for-service 1 VOLUNTEER AMBULANCE i • To keep unit-hour-utilization consistently below 0.50 STAFFING • To have adequate geographic coverage and response time sea PROPLLERS 7,5 APPLICANTS • How many does it take to staff an ambulance? ,aaSTUDENTS • It takes 50 volunteers to staff 1 ambulance 24/7 65 INTERNS • It takes 10 career staff members to staff 1 ambulance 24/7 SOAIC' • So how many more responders do we need? t nAFM • We need to be able to staff 3 more ambulances 24/7 • 150 volunteers*,30 career*,or any combination thereof. *Does not account for those leaving the system during the year March 26, 2024 52 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) EMERGENCY MEDICAL SERVICES(EMS) ITEM#75455 (Continued) Why else is staffing so important? '6nn.genry s.MMf.cal Se<v¢ea Here are Major Changes&Initiatives: Major Changes & Initiatives • Need to establish adequate baseline staffing levels. • Recruitment and retention of both career and volunteer personnel. 11427I• Appropriate medical direction for the size and scope system. • Advancement of protocols,clinical programs,and patient outcomes. • Emotional, physical and mental health and well-being of members. • Sustainable funding for EMS and rescue squad needs. March 26, 2024 53 CITY MANAGER'S BRIEFINGS FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) EMERGENCY MEDICAL SERVICES(EMS) ITEM#75455 (Continued) New challenges and priorities • Upcoming pharmaceutical supply changes and systemi1mijacts. • Need to increase ambulance fleet size significantly. `u • 20 years of career EMS-retirements on the horizon. • Sustainable funding for rescue squad vitality,growth to meet demand, etc. Emnyc..cy Mayor Dyer expressed his appreciation to Chief Stroud for the presentation. March 26, 2024 54 CITY COUNCIL DISCUSSION/INITIATIVES/COMMENTS ITEM#75456 5:07 P.M. There were no City Council Discussion/Initiatives/Comments. March 26, 2024 55 ITEM#7545 7 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: PUBLICLY-HELD PROPERTY: Discussion or consideration of the, acquisition of real property for public purpose; or of the disposition of publicly-held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3). • District 2 • District 2 • District 2 • District 2 • District 6 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 March 26, 2024 56 ITEM#7545 7 (Continued) Upon motion by Council Member Berlucchi, seconded by Council Member Ross-Hammond, City Council voted to proceed into CLOSED SESSION at 5:08 P.M. Voting: 11 -0 Council Members Voting Aye: Michael F. Berlucchi,Mayor Robert M.Dyer, Barbara M.Henley,David Hutcheson, Robert W. "Worth"Remick Amelia Ross-Hammond,Jennifer Rouse, Joashua F. "Joash" Schulman, Chris Taylor, Vice Mayor Rosemary Wilson and Sabrina D. Wooten Council Members Absent: None Closed Session 5:08 P.M. —6:03 P.M. March 26, 2024 57 CERTIFICATION ITEM#75458 Mayor Dyer RECONVENED the Formal Session in the City Council Conference Room at 6:04 P.M. Upon motion by Council Member Berlucchi, seconded by Council Member Ross-Hammond, City Council CERTIFIED THE CLOSED SESSION TO BE INACCORDANCE 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: 10- 0 Council Members Voting Aye: Michael F. Berlucchi, Mayor Robert M. Dyer, Barbara M. Henley, David Hutcheson,Robert W. "Worth"Remick,Amelia Ross-Hammond, Jennifer Rouse, Joashua F. `Joash" Schulman, Chris Taylor, Vice Mayor Rosemary Wilson and Sabrina D. Wooten Council Members Absent: Jennifer Rouse—Stepped out during the vote March 26, 2024 G�N�BFAC ('s ? r J OF OUR N". 04s RESOL UTION CERTIFICATION OF CLOSED SESSION VIRGINL4 BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION,pursuant to the affirmative vote recorded in ITEM#75457 on Page 56 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. Amanda Barnes, AWC City Clerk March 26, 2024 58 ADJOURNMENT ITEM#75459 Mayor Robert M. Dyer DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at 6:04 P.M. Terri H. Chelius Chief Deputy Ci 7C1erk DA A 0 Amanda Barnes Robert M. Dyer City Clerk, MMC Mayor City of Virginia Beach Virginia March 26, 2024