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Home My WebLink AboutAPRIL 30, 2024 SPECIAL FORMAL SESSION MINUTES S a bsf&cry t s� r N� Op WIN NA210' VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 30, 2024 Mayor Robert M. Dyer called to order the CITY COUNCIL SPECIAL FORMAL SESSION in the City Council Conference Room, City Hall, on Tuesday,April 30, 2024, at 4:01 P.M. Council Members Present: Michael F. Berlucchi, Mayor Robert M. Dyer, David Hutcheson, Amelia Ross-Hammond, Robert W "Worth"Remick, Jennifer Rouse,Joashua F. "Joash" Schulman, Chris Taylor, Vice Mayor Rosemary Wilson and Sabrina D. Wooten Council Members Absent: Barbara M. Henley—Arrived at 4:08 P.M. 2 MAYOR'S CALL FOR SPECIAL FORMAL SESSION ITEM#75614 "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,April 30, 2024, at 4:00 P.M. City Council Conference Room 2034 Building I -2nd Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to conduct a PUBLIC BRIEFING regarding the FY2024-25 RESOURCE MANAGEMENT PLAN— Non Departmental Budgets, CITY COUNCIL DISCUSSION ON PROPOSED FY2024-25 RESOURCE MANAGEMENT PLAN and Council Comments, as listed in the published agenda. At 6.00 p.m., the City Council will reconvene in the City Council Chamber to consider Ordinance/Resolution regarding Collective Bargaining as listed in the published agenda. If you wish to make comments via WebEx during the meeting, please follow the two-step process provided below: 1. Register for the WebEx at: htWs:llvbzov.webex.com/weblinklregisterlr83l a6e5l a3f7O2896630df73 flaf657 2. Register with the City Clerk's Office by calling 757-385-4303 prior to 5:00 p.m. on April 30, 2024. This Special Formal Session will be broadcast on Cable TV, virginiabeach.go and Facebook Live. Citizens are encouraged to submit their comments to the City Council prior to the Special Formal Session via email at CityCouncil(act�vbgov.com. Sincerely, ��j�tc/ Robert M.Dyer Mayor" cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office April 30, 2024 0 U' � �' s City of Vi rginia B each 2 9,FS s O� OF ov NX00 virginiabeach.gov ROBERT.M."BOBBY"DYER MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VIRGINIA 23456-9000 April 25, 2024 CELL:(757)749-4659 bdver(ravkgov.com 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,April 30, 2024, at 4:00 P.M. City Council Conference Room 2034 Building I -2"d Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to conduct a PUBLIC BRIEFING regarding the FY2024-25 RESOURCE MANAGEMENT PLAN—Non Departmental Budgets, CITY COUNCIL DISCUSSION ON PROPOSED FY2024-25 RESOURCE MANAGEMENT PLAN and Council Comments, as listed in the published agenda. At 6.00 p.m., the City Council will reconvene in the City Council Chamber to consider Ordinance/Resolution regarding Collective Bargaining as listed in the published agenda. If you wish to make comments via WebEx during the meeting,please follow the two-step process provided below: 1. Register for the WebEx at: https://vbgov.webex.com/weblink/register/r831 a6e51 a3f702896630df73ff9af657 2. Register with the City Clerk's Office by calling 757-385-4303 prior to 5:00 p.m. on April 30, 2024. This Special Formal Session will be broadcast on Cable TV, virainiabeach.z and Facebook Live. Citizens are encouraged to submit their comments to the City Council prior to the Special Formal Session via email at CiUCouncil(a,vb off. Sincerely, Robert M.Dyer Mayor cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Office Communications Office 3 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#75615 4:03 P.M, Mayor Dyer welcomed Kaitlyn James, Deputy Director and Kevin Chatellier, Director — Budget & Management Services. Ms.James expressed her appreciation to City Council for their continued support: FY 1Non-Departmental AprilPr get Kaitlyn James VB The next two (2)slides provide an overview of the FY2024-25 Programmatic Budget: FY 2024-25 Programmatic Budget Emgoyee Spttki Benefits Be3o,ul Gta^t Bmefin Nlministratbn $],891.50] N.30],169 CW 3% Leaxa kEepeMen[Hnarckl knirea % $I9a,6]< $3,]80,869 VeNtle Prykaeme L VeNd B,,% b. $1,63o,Olp 3% YWlic Defender Aykppkmmt $soo,00D B<.enue wBn6nraemmH Is,mi9zs Sox oMwmpmn Boaas rr,nxt $9,303,688 April 30, 2024 4 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#75615 (Continued) Programmatic Operating Budget t . Regional Grants $4,040,441 $3,407,169 ($633,272) -15.7% Regional Grant-VB Rescue Squads* - $800,000 $800,000 - Hampton Roads Transit $8,669,484 $9,103,688 $434,204 5.0% Community Organization Grants $707,960 $498,966 ($208,994) -29.5% Benefits Administration $735,538 $735,538 - 0.0% Employee Special Benefits $7,641,502 $7,891,502 $250,000 3.3% Local Vehicle Registration $1,610,000 $1,610,000 - 0.0% Leases $3,780,869 $3,780,869 - 0.0% Vehicle Replacements $6,000,000 $6,000,000 - 0.0% Public Defender Pay Supplement $500,000 $500,000 - 0.0% Computer Replacements $3,087,214 - ($3,087,214) -100.0% Subscriptions $9,805,644 . ($9,805,644) -100.0% Independent Financial Services $188,638 $194,674 $6,036 3.2% Committee Trust Fund - $1,248 $1,248 - Revenue Reimbursements $13,474,044 $15,001,925 $1,527,881 11.3% Total $60,241,334 $49,525,579 ($10,715,75S) -17.8% *In Fy 2023-24 this grant was included in EMS'Operating Budget Here are the Regional Organizations who receive City funds: Regional Organization Funded via Agreements/Memorandums of Understanding Hampton Roads Alllance $459,470 $459,470 - - HamptonRoadsPlanningDistrictCommission* $546,462 $546,462 - - Hampton Roads Workforce Council $114,418 $113,903 ($515) -0.5% Hampton Roads Military and Federal Facility Alliance $229,014 $227,693 ($1,323) -0.6% Sister Cities/Sister Cities Dues $50,890 $50,880 - Public Defender Salary Stipends $500,000 $500,000 - Old Dominion University $70,000 $70,000 Total $1,970,244 $1,968,408 ($1,836) -0.1% 'Amount may change following final HRPDC vote.Final amount will be known in late May April 30, 2024 5 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#75615 (Continued) Regional Organizations Non-MOU Driven Funding Eggleston $24,500 Virginian Wesleyan $441000 Lynnhaven River NOW $178:202 Tidewater Community College $5,880 Eastern Virginia Medical School $450,349 Hampton Roads Chamber of Commerce $9,800 STOP Inc. $13,426 Virginia Dare Soil Conservation $7,840 USO $19,600 Virginia Beach SPCA $29,400 Museum of Contemporary Art-Education Grant $132,300 Students on the Swim $19,600 Virginia Arts Festival $343,000 Court Appointed Special Advocates $47,040 Hampton Roads Pride $9,800 American Red Cross $19,600 Elizabeth River Project $19,600 Square One $51,940 Virginia Symphony $24,500 Virginians for High-Speed Rail $9,800 Navy League $20,825 Virginia African American Cultural Center $49,000 Virginia Center for Inclusive Communities $1,960 Southeast 4-H $9,800 Total $2,738,261 Requested but Not Funded Grant Requests • Court Appointed Special Advocates-$27,000 • EVMS-$30,096 • Southern Tidewater Opportunity Project-$11,680 • USO- $29,000 • Virginia Beach SPCA-$20,000 • Lynnhaven River Now-$10,000 • Oceana Volunteer Fire Department- y500,000 • Foodbank-$550,000 • Boys and Girls Club-$250,000 • Tidewater Arts Outreach -$10,000 • MOCA-$575,000 • Senior Services of Southeastern VA-$163,283 t April 30, 2024 6 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#756I5 (Continued) The next two (2)slides provide an overview of Community Organization Grants(COG)and Awards: Community Organization Grants (COG) • Encourages non-profit agencies to provide services that affect the quality of life of residents • Awarded organizations must submit financial and service delivery reports • Only non-profit organizations are eligible • Funding must serve only Virginia Beach residents • Organizations must apply annually for grant funding • Funded at$498,966 for FY 2024-25, a decrease of$208,994 from prior year FY 2023-24 COG Awards Foodbank of Southeastern Virginia and the Eastern Shore $ 50,000 Jewish Family Service of Tidewater,Inc. $ 50,000 Legal Aid Society of Eastern Virginia,Inc. $ 30,000 The River Ellis Foundation $ 7,960 Trails of Purpose $ 50,000 YWCA of South Hampton Roads $ 65,000 Armed Services YMCA of Hampton Roads $ 40,000 Bays and Girls Clubs of Southeast Virginia $ 25,000 Chesapeake Care INC $ 10,000 Endependence Center INC $ 25,000 Horizons Hampton Roads $ 10,000 Judeo-Christian Outreach Center $ 75,000 Latinos in Virginia Empowerment Center $ 15,000 PIN Ministry $ 60,000 Samaritan House $ 5,000 Seton Youth Services $ 30,000 Senior Services of Southeastern Virginia $ 75,000 Stand Up for Kids $ 40,000 Together We Can Foundation $ 20,000 YMCA of South Hampton Roads $ 25,000 Total $ 707,960 April3O, 2024 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#75615 (Continued) FY 2023-24 Elderly and Disabled Tax Relief Threshold Exemption Enrolled Tax Relief $0-$56k 100% 4,265 $12,350,755 $56k-$60k 80% 202 531,038 $61k-$65k 60% 193 382,409 $66k-$69k 40% 129 170,935 $70k-$74k 20% 66 42,359 $96k Freeze 262 763,472 Total 5,117 $14,240,968 • Since 1973 Virginia Beach has provided tax relief options • Since 2011,local governments have been granted authority to determine all financial eligibility standards • Per recommendation by 2015 Task Force,thresholds adjusted by average percentage increase in single family home • Example:current Tax Freeze$96,405 increased by 6.12%to$102,305 for FY 2024-25 Annual Adjustments and Benchmark Threshold Exemption $0-$59k 100% $60k-$64k 80% $65k-$69k 60% $70k-$74k 40% $75k-$78k 20% $102k Freeze I Newport Virginia Beach:Chesapeake i Hampton Norfolk News i Portsmouth Suffolk Max Income for 100%Relief $59,837 $22,000 - $28,611 $25,000 $21,000 $56,391 Max Income for Tiered Relief $78,408 $62,000 - $67,000 $25,000 $30,000 $73,740 Home Value Cap No No - Yes No No Yes Max income for Freeze $102,305 - $62,000 - - $50,000 - $10,000- $75,000- Max Financial Assets $350,000' $350,000 $200,000 $350,000 $200,000 $175,000 $330,497 Deferral Program No No Yes Yes Yes No No 'excludes dwelling&no more than 10 acres of property April 30, 2024 8 CITY COUNCILS BRIEFING FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) NON-DEPARTMENTAL BUDGETS ITEM#75615 (Continued) Questions & Discussion Mayor Dyer expressed his appreciation to Ms.James and Mr. Chatellier for the presentation. April 30, 2024 9 CITY COUNCIL DISCUSSION PROPOSED FY 2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 4:33 P.M. Council Member Rouse commended City Manager Duhaney and Mr. Chatellier for their work on the proposed budget to use attrition savings and redirecting capacity from dedications to ensure the Fire Department can increase staffing and give employees salary increases. Council Member Rouse advised she understands the budget reflects the Body's values as a whole and each Council Member must negotiate and reconcile their priorities to adopt the budget that best meets the City's needs. Council Member Rouse advised she is prepared to support the proposed budget as it maintains services for citizens and supports staff but expressed concern on the impacts of lowering the Real Estate Tax two (2) cents from $0.99 to $0.97. Council Member Rouse advised she is concerned how the reduction will impact fully funding schools and City priorities such as flood mitigation, addressing sea level rise, and completing important CIP projects-all of which are experiencing significant cost increases. Council Member Rouse is also concerned for residents who rent their homes and will not have any tax relief and would like the Body's support to direct the City Manager to identify opportunities for tax relief that is available to taxpaying residents who do not own their home to be considered during the next budget process. Council Member Schulman concurred with Council Member Rouse and expressed his appreciation to City Manager Duhaney and staff for bringing forth a balanced and thoughtful budget with a two percent reduction rather than the higher reductions initially considered as they would have created additional difficult choices. Council Member Schulman advised he is sensitive to criticism from residents who expressed the two cent Real Estate Tax reduction only benefits those who have real estate and for those who also own commercial real estate will see the benefit twice which does not provide tax relief for those who rent and may need it the most. Council Member Schulman requested City Manager Duhaney work with Budget and Management Services to target tax relief for those citizens and suggested looking at untapped existing alternative revenue sources not being used. Council Member Wooten advised last year she requested finding other opportunities within the City's programs that would provide additional tax relief and believes this is an ongoing request. Council Member Wooten advised she has asked where the proposed two (2) cent reduction came from and was told there was no definitive decision answer. Council Member Wooten advised she remembers being told at the City Council Retreat it would be what the Body focused on but does not recall being part of that decision, and since it will not provide solutions to address tax relief, she will continue to look for other tax relief opportunities. Council Member Ross-Hammond advised she was the one who suggested the two cent reduction during the City Council Retreat and there was no objection. Council Member Ross-Hammond recalled City Manager Duhaney responding that staff would look at that as a possibility and what possible cuts would be necessary. Council Member Ross-Hammond expressed understanding that the real estate reduction does not help those who do not own a residence just like reducing personal property taxes will not help those who do not own a car and is why this is a difficult issue. April 30, 2024 10 CITY COUNCIL DISCUSSION PROPOSED FY 2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 (Continued) Mayor Dyer advised the initial charge was to look at a revenue neutral budget, which would have required Departments to reduce their budget, but when it was learned it would cause draconian cuts and a loss of personnel, it gravitated from there. Council Member Wooten expressed that is a fair response, but she sees what the two (2) cent reduction looks like and would like to continue looking for other alternatives. Council Member Remick advised the two (2) cent tax reduction is regressive and challenged staff to find other ways to reduce taxes. Council Member Remick advised he has heard from residents in his district who have had their real estate assessment increase 20%—40%and while that means the value of their homes increased, it also dramatically increases their Real Estate taxes. Council Member Remick advised while he is sensitive to providing tax relief,he is also concerned about fully funding schools and stormwater mitigation, estimated to total $1-Billion by the time it is completed. Council Member Remick believes redirecting dedicated funds was a creative way to spread the burden and explained the Tourism Investment Program (TIP)Fund had$500,000 redirected with an additional 20%going to the admissions tax, which he supports. Council Member Remick advised over the next five (5) to seven (7)years, the TIP Fund will provide a total of$2.5-Million for the Atlantic Park project, $48-Million for Re Imagining Atlantic Avenue and$60-Million for the Rudee Loop project. Vice Mayor Wilson complimented City Manager Duhaney and staff for their work on the most extensive budget she has seen, beginning at the City Council Retreat where there were two(2)full days to focus on the budget with a great presentation and a lot of conversations. Vice Mayor Wilson advised the Real Estate tax fluctuates, recalling when she first came on City Council it was $1.22 and later went down to $0.89. The housing bust happened in 2008 and in 2012, the state cut $80 Million in educational funding. Vice Mayor Wilson advised that year the teachers needed salary increases so the Real Estate tax was increased six(6) cents, with four(4) cents going to schools and two (2)cents to transportation. Vice Mayor Wilson advised citizens have seen increases in assessments over the past few years, including her own increasing 68%over the past two(2)years. Vice Mayor Wilson advised assessments are not the same throughout the City, some had smaller increases in some areas and larger increases in other areas, with it averaging out to a seven (7)percent increase. Vice Mayor Wilson complimented staff again for their work to keep all City services in place and advised Schools will receive an additional$18-Million and is hopeful to work out any remaining concerns during reconciliation. Council Member Taylor expressed he is shocked how the budget process has gone and recalled that the Body was supposed to see what the budget would look like with increasing the Real Estate tax in one (1) cent increments from neutral to seven (7)cents and recalled Council Member Ross-Hammond proposing two(2)cents and that is what the Body went with. Council Member Taylor recalled the Body's conversation during the City Council Retreat to look at dedications, which was done, but now there is$1.5-Million for April 30, 2024 11 CITY COUNCIL DISCUSSION PROPOSED FY2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 (Continued) only Arts and Culture and believes the dedications should have been given a holistic approach and discussed. Council Member Taylor advised there is untapped revenue, explaining since 2000, residents who own boats have not had to pay property taxes and there are approximately 12,000 boats, with 2,000 that can be considered as yachts. Council Member Taylor estimated the personal property taxes on a $30,000 vehicle to be between $800—$1,000, adding if the average cost of a boat is$30,000 there would be approximately$15-Million in revenue which has not been collected in 25 years. Council Member Taylor advised the proposed two (2) cent tax reduction is not actually a reduction but rather a two (2) cent cut from the current amount. Council Member Taylor asked what amount does the Real Estate Tax start with? Mr. Chatellier stated$0.9272. Council Member Taylor advised in the corporate and private sector, there is always a goal to be leaner and does not believe the City is as lean and efficient as it can be with personnel. Council Member Taylor believes if the previous Body would have increased the rate by 4.5 cents last year, as the public requested, there would have been more funds available to better address the inflationary costs seen this year. Council Member Taylor provided the amount of Food and Beverage Taxes each district contributed to the TIP Fund totaling $17.9-Million and expressed his belief that small business owners should not have to pay local taxes which go to the TIP Fund. Council Member Taylor advised the Body did not look at different approaches and needs to be bold by either setting the tax rate at$0.93 cents to provide real tax relief or increase it to $1.05 to address inflationary costs for flooding and stormwater mitigation, as the public requested. Council Member Taylor advised the flat rate of$0.92,is not a reduction and misleads the public. Council Member Taylor believes the Body has been fair but not strategic. Mayor Dyer advised the challenges the City is facing right now are the same as other municipalities such as inflation costs and affordable housing. Mayor Dyer acknowledged the budget is often contentious as there are different ways to approach it and reminded the Body how well the City rebounded after the COYID pandemic and had two (2) strong tourist seasons afterwards. Mayor Dyer advised the Body will have to be engaged during the reconciliation process and encouraged staff to look for new revenue sources going forward. Council Member Henley advised she would like to address the need for additional funding to hire more firefighters above the seventeen (17) included in the budget now in order to get closer to filling the sixty (60)current vacancies. Council Member Henley advised the class that recently graduated is going to help but she is hopeful the Body will support this request even if it is done in increments. Council Member Henley advised Emergency Management Services (EMS) is all voluntary and should not have to raise the money to purchase ambulances or be responsible for paying the City back if the funds are loaned. Council Member Henley believes there is a shortage of eight(8)ambulances and would like to see if two (2)could April 30, 2024 12 CITY COUNCIL DISCUSSION PROPOSED FY 2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 (Continued) be purchased and then develop a plan to provide more. Council Member Henley referenced the Victus Study and how it relates to the Interfacility Transition Area (ITA) and is included in the Comprehensive Plan but has not been implemented. Council Member Henley advised there is a lack of a specific and detailed Master Plan causing a barrier for the area to be utilized. Council Member Henley advised there is an opportunity to use the$1-Millionfrom Dominion Energy to plant trees but no plan on where to plant them and with approximately 3,000 acres in the ITA, it is an ideal place to plant the trees. The area is also ideal for passive and active recreation and aligns with the Economic Development plan for sports tourism. Council Member Henley understands it may be an obstacle to develop because of the different departments who are involved and was informed if an additional staff member was hired at$150,000, then staff could develop the plan. Council Member Henley advised she has had discussions about this and there is support from the ITA Committee, Active Transportation Advisory Committee, Green Ribbon Committee and Open Space Advisory Committee, who can help develop the plan without hiring any additional consultants. Council Member Henley suggested if a cross-country trail was developed at a low cost, it could generate revenue and is a golden opportunity. Council Member Henley advised her last request is for additional funding for the Indian River Road safety improvement project, there has been $500,000 appropriated but is estimated at$21-Million. Council Member Henley understands this is a difficult project and will take at least ten (10)years but emphasized it is important to start now and reminded the Body of how dangerous and critical the road is. City Manager Duhaney asked Council Member Henley for clarification if she is requesting to have the ITA's Master Plan included in the Reconciliation? City Manager Duhaney advised his concern is that staff is currently developing the Comprehensive Plan and it would be difficult to do both but could hire a consultant. City Manager Duhaney asked, if that is not the Body's desire, can it be completed after the Comprehensive Plan? Council Member Henley advised several existing plans are already incorporated in the Comprehensive Plan and believes it can be done simultaneously. Council Member Henley advised the ITA Plan is already done and just needs someone to look at the land and identify what has not been done and how to achieve it. Council Member Henley advised she has always believed timing is everything and now is the time. Council Member Taylor advised during this conversation he has heard two (2) Council Members ask to be cognizant of renters and explained not all renters are in the same position. Council Member Taylor advised since 2023, the military Base Allowance for Housing(BAH) rate increased by 8.7%and military with dependents saw an increase of 22.4%. Council Member Taylor advised he looked at apartment rental rates in District 8 and found a two (2) bedroom unit was $2,400 a month and calculated if two (2) E-3 military members rented that apartment, they would collectively receive a total of$4,100.00 and could split the rent. Council Member Taylor advised it is unlikely that people working in the City received an 8.7% increase in their salary and has not heard of anyone who has seen a decrease in their rent this year and is why he was hoping to have more of a substantial discussion about dedications and cautioned against generalizing the needs of renters. April 30, 2024 13 CITY COUNCIL DISCUSSION PROPOSED FY 2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 (Continued) $4,100.00 and could split the rent. Council Member Taylor advised it is unlikely that people working in the City received an 8.7%increase in their salary and has not heard of anyone who has seen a decrease in their rent this year and is why he was hoping to have more of a substituent discussion about dedications and cautioned against generalizing the needs of renters. Council Member Ross-Hammond expressed her appreciation to everyone who supported the Arts and Humanities funding dedication and believes there is a great return on investment and will allow more opportunities for others who want to be involved. Council Member Ross-Hammond advised she is a Council Liaison to the VB VA250 Committee and in order for the Committee to carry out celebration initiatives, they have estimated they will need$60,000 in funding to stay on par with what the other localities in the state are doing. Council Member Ross-Hammond advised the last request she has is for the Virginia Beach Sports Hall of Fame in which the Body received a presentation that included youth educational opportunities they have planned and are requesting$150,000. Council Member Ross-Hammond advised they did not receive any funding last year and the year before they were provided$50,000; she is hopeful to meet them in the middle with funding between $50,000-$100,000. Council Member Schulman echoed Council Member Henley's comments regarding the possible uses in the ITA for cross-country use and believes it should not be too difficult to do whether it is done by a consultant or staff and seems like low hanging fruit. Council Member Schulman suggested using some of the funding within the Southern Watershed Site Acquisition CIP and does not believe the funds are limited to acquisition and could possibly be used for passive recreation. City Manager Duhaney advised the Department of Environmental Quality (DEQ) has reached out and advised their interpretation of use for the available CIP funds are constrained for acquisition rather than passive recreation. City Manager Duhaney advised he has requested to have their expectations sent in writing and will provide that information to the Body once received. Council Member Schulman acknowledged he understands and just wanted to share his support for that as well as the funding for the Virginia Beach Sports Hall of Fame. Council Member Remick advised last Friday he had a meeting with the Seatack Civic League, which he is a lifetime member of,and has additional budget requests for upgrades to both Seatack Park and the Seatack Recreation Center. Council Member Remick advised he included that initiative in his campaign two (2) years ago and would like to also include upgrading two (2)signs in the Seatack community to brick. Council member Hutcheson asked if the Body will have time to discuss the budget at the next meeting? City Manager Duhaney advised this part of the process is taking the proposed budget and modifying it to make it City Council's budget. City Manager Duhaney explained he has taken information he has gathered through discussions from Council Member's and shared it with the Vice Mayor in order to be reconciled April 30, 2024 14 CITY COUNCIL DISCUSSION PROPOSED FY 2024-25 RESOURCE MANAGEMENT PLAN(BUDGET) ITEM#75616 (Continued) with the adopted budget and supported by a majority of the Body. City Manager Duhaney advised the budget reconciliation meeting will be next Tuesday, on May 7h, when the reconciliation letter will be socialized and then the Body will be prepared for vote on May 14`h Vice Mayor Wilson advised tomorrow she will reach out to the City Manager and Budget Director work to on how to pay for as many requests that Council Members have shared but there are a lot of requests that cannot be funded. Vice Mayor Wilson explained there is a huge amount of work in drafting all of the Ordinances and balancing the budget and believes it is a good budget and is hopeful to have the Body's support. Vice Mayor Wilson advised next Tuesday the Body will discuss and present the reconciliation letter to the public and vote on the budget the following Tuesday. Council Member Taylor advised he would like to request funding $75,000 to the Great Neck Football League and $25,000 to each of the forty (40)youth sports leagues identified that are affiliated with the Parks and Recreation Department. Council Member Taylor advised he does not believe any new money is needed if funds are used from the dedicated funding sources he listed and shared at the City Council Retreat. Council Member Hutcheson advised there have been funding requests for the firefighters and would like to make sure this is time for further discussion. City Manager Duhaney advised the majority of the Body has expressed support for that funding and he will provide a plan on how to increase hiring possibly thirty (30)firefighters in the budget year with the understanding that some may be hired in July and more in January. City Manager Duhaney advised this is going to be an on-going cost which will need a funding source identified but he understands this is a priority for a majority of the Body. Mayor Dyer advised he believes approximately 22%of the budget goes towards unfunded mandates and requested information on what the total cost of unfunded mandates is after the budget is adopted. April 30, 2024 15 CITY COUNCIL DISCUSSION/INITMTIVES/COMMENTS ITEM#75617 5:50 P.M. Due to time constraints, there were no City Council Discussion/Initiatives/Comments. City Council took a break from 5:50 P.M. —5:58 P.M. April 30, 2024 16 V.A ITEM#75618 Mayor Dyer RECONVENED the Special Formal Session in the City Council Chamber at 6:00 P.M. to consider the vote for Collective Bargaining as listed on the published Agenda. The following registered to speak: Teresa Stanley, 143 Castilian Drive, Phone: 286-5858, spoke in SUPPORT of Collective Bargaining Kay Flohre, 1286 Brigantine Court, Phone: 718-1752, spoke in SUPPORT of Collective Bargaining Scott Miller, 5101 Cleveland Street,Phone: 705-3730, spoke in OPPOSITION of Collective Bargaining John Moss, 4109 Richardson Road, Phone: 636-1534, spoke in OPPOSITION of Collective Bargaining Kathleen Slinde, 5308 Roves Court, Phone: 373-5784, spoke in SUPPORT of Collective Bargaining Stephen Johnston, 2316 Enchanted Forrest, Phone: 310-1338, spoke in OPPOSITION of Collective Bargaining Dianna Howard, 1057 Debaca Court, Phone: 567-9021, spoke in OPPOSITION of Collective Bargaining Gretchen Heal, 101 West Main Street, Norfolk, Phone: 635-6055, spoke in OPPOSITION of Collective Bargaining Patricia Thebert, 3512 Stancil Street, Phone: 927-8615, spoke in SUPPORT of Collective Bargaining Jimmy Frost, 2240 Windom Place,Phone: 343-6768, spoke in OPPOSITION of Collective Bargaining Cody Conner, 3612 Malibu Palms Drive#104,Phone: 503-475-0970, spoke in SUPPORT of Collective Bargaining Perez Gatling, 965 Baker Road, Phone: 620-8391, spoke in SUPPORT of Collective Bargaining Mike Visque, 541 Engle Hard Drive, Phone: 901-5170, spoke in SUPPORT of Collective Bargaining Ellen Jaffe-Gill, 4661 Priscilla Lane, Phone: 215-359-7806, spoke in SUPPORT of Collective Bargaining Amaziah Cummings, 2511 Smithfield Road, Portsmouth, Phone: 434-3907, spoke in SUPPORT of Collective Bargaining Conrad Schesventer, 3706 Greenway Court, Phone: 719-2113, spoke in SUPPORT of Collective Bargaining Steve Cover, 1185 Kings Way Drive, Phone: 615-5265, spoke in SUPPORT of Collective Bargaining Brian Luciano, 315 Edwin Drive, Phone: 685-2659, spoke in SUPPORT of Collective Bargaining Bob Pizzini, 2412 Pacific Avenue, Phone: 412-5201, spoke in OPPOSITION of Collective Bargaining Bryan Gravely, 3970 Aeries Way, Phone:2 76-252-3 758, spoke in OPPOSITION to Collective Bargaining Andy Baan, 2711 Point Ana Drive,Phone: 708-5229, spoke in OPPOSITION of Collective Bargaining Max Gonano, 3000 Clarke Drive, Phone: 642-3776, spoke in SUPPORT of Collective Bargaining Fran Sansone, 3601 Presidential Circle, Phone: 831-9111, spoke in OPPOSITION of Collective Bargaining Keith Howell, 3749 South Boulevard, Phone: 917-8310, spoke in OPPOSITION to Collective Bargaining Brad Belton, 3325 Daytona Drive, Phone: 452-8133 spoke in SUPPORT of Collective Bargaining April 30, 2024 17 i!A ITEM#75618 (Continued) A motion was made by Council Member Wooten, seconded by Council Member Rouse, to ADOPT the Resolution to AUTHORIZE Collective Bargaining Voting: 5—5(MOTION FAILED DUE TO A TIE VOTE) Council Members Voting Aye: David Hutcheson, Robert W. "Worth"Remick, Jennifer Rouse, Joashua F. "Joash"Schulman and Sabrina D. Wooten Council Members Voting Nay: Michael F. Berlucchi, Mayor Robert M. Dyer, Barbara M. Henley, Chris Taylor and Vice Mayor Rosemary Wilson Council Members Abstaining: Dr.Amelia N. Ross-Hammond Council Members Absent: None * City Council did not take action on the Ordinance to DECLINE to AUTHORIZE Collective Bargaining and ADD Division 4 to City Code Chapter 2, Article III re create employee committees to enhance communications among the City Council, City Manager, and employees of the City regarding the terms and conditions of employment April 30, 2024 ��4G1Z.1IA $EA�� G� City of Virginia Beach Ss i OF OUR NNT%O Vftov mn DR.AMELIA N.ROSS-HAMMOND CELL:(757)840-0735 COUNCIL MEMBER EMAIL:arosshammond0vbaov.com DISTRICT 4 April 30, 2024 In Reply Refer to 0088016 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Virginia Code § 2.2-3115(F) Dear Mrs. Barnes: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declarations: 1. I am executing this written disclosure regarding the City Council's consideration of a resolution and an ordinance regarding collective bargaining. 2. Collective bargaining is a complex issue, and I have not had sufficient time to fully consider whether authorizing collective bargaining would be in the best interests of the City. Accordingly, I respectfully request that you record this declaration in the official records of the City Council. Thank you for your assistance and cooperation in this matter. Sincerely, Dr. Amelia Ross-Hammond Councilmember ARH/RRI 2401 COURTHOUSE DRIVE,SUITE 2116,VIRGINIA BEACH,VIRGINIA 23456 18 ADJOURNMENT ITEM#75619 Mayor Robert M. Dyer DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at 7.42 P.M. Terri H. Chelius Chief Deputy City Clerk A a Ba nes Robert M. Dyer City Clerk, MMC Mayor City of Virginia Beach Virginia April30, 2024