OF THE NEWPORT NEWS CITY COUNCIL

2400 WASHINGTON AVENUE

7:30 P.M.

 

PRESENT:       Joe S. Frank; Madeline McMillan; Sharon P. Scott; Joseph C. Whitaker; Charles C. Allen; and Herbert H. Bateman, Jr.--6

ABSENT:         William F. Haskins--1

1.                   The invocation was rendered by Reverend Isabel Steilberg, St. Paul Episcopal Church.

2.                   The Pledge of Allegiance to the Flag of the United States of America was led by Councilwoman Madeline McMillan.

MOTION MADE BY VICE MAYOR ALLEN; SECONDED BY COUNCILMAN BATEMAN; AND CARRIED UNANIMOUSLY TO EXCUSE COUNCILMAN HASKINS FROM THIS MEETING.

            3.         Public Hearings

(a)                Conditional Use Permit CU-07-222, First Community Church

Mayor Frank presented AN ORDINANCE GRANTING CONDITIONAL USE PERMIT NUMBER CU-07-222 FOR THE HEREINAFTER DESCRIBED PROPERTY FOR THE PURPOSE OF ALLOWING AN ADULT CARE RESIDENCE ON A SITE ZONED C2 GENERAL COMMERCIAL DISTRICT.  He advised this granted a conditional use permit for the operation of an adult care center on a 1.12 acre parcel zoned C2 General Commercial located at 6034 Jefferson Avenue. The Planning Commission voted 9:0 to recommend to City Council the approval of this conditional use permit application, and the City Manager concurred with the recommendation.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Councilman Whitaker moved adoption of the above ordinance; seconded by Councilman Bateman.

Vice Mayor Allen inquired about the use of the wording “adult care residence,” as opposed to “day care center.” Ms. Sheila McAllister, Assistant Director, Department of Planning, explained the definition of “adult day care center” fell in the category “adult care resi-

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3.         Public Hearings Continued

(a)       Conditional Use Permit CU-07-222, First Community Church Continued

dence.” “Adult day care center” was mentioned in the first condition of the ordinance, with certain hours of operation. Vice Mayor Allen inquired about the residents. Ms. McAllister replied that day residents were allowed, not overnight residents.

 (b)       Conditional Use Permit CU-07-224, Lucas Creek Associates

Mayor Frank presented AN ORDINANCE GRANTING CONDITIONAL USE PERMIT NUMBER CU-07-224 FOR THE HEREINAFTER DESCRIBED PROPERTY FOR THE PURPOSE OF ALLOWING THE OFF-PREMISE SALE OF ALCOHOL IN AN ESTABLISHMENT OF LESS THAN 1,600 SQUARE FEET ON A SITE ZONED C1 RETAIL COMMERCIAL DISTRICT. He advised this granted a conditional use permit for the off-premise sale of alcohol in an establishment of less than 1,600 square feet on a 0.63 acre parcel zoned C1 Retail Commercial located at 13670 Warwick Boulevard. The Planning Commission voted 9:0 to recommend to City Council the approval of this conditional use permit application, and the City Manager concurred with that recommendation.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Councilman Bateman moved adoption of the above ordinance; seconded by Councilman Whitaker.

(c)        Conditional Use Permit CU-07-225, David R. Flynn, Contract Purchaser for Stephen J. Williams

Mayor Frank presented AN ORDINANCE GRANTING CONDITIONAL USE PERMIT NUMBER CU-07-225 FOR THE HEREINAFTER DESCRIBED PROPERTY FOR THE PURPOSE OF ALLOWING A LODGE, FRATERNAL OR SOCIAL ORGANIZATION ON A SITE ZONED R7 MEDIUM DENSITY MULTIPLE-FAMILY DWELLING DISTRICT.

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3.         Public Hearings Continued

(c)        Conditional Use Permit CU-07-225, David R. Flynn, Contract Purchaser for Stephen J. Williams Continued

He advised this granted a conditional use permit for a Lodge (Veterans of Foreign Wars) on a 0.69 acre parcel zoned R7 Multiple Family Dwelling located at 21 Forrest Drive. The Planning Commission voted 9:0 to recommend to City Council the approval of this conditional use permit application and the City Manager concurred with that recommendation.

            Mr. David Flynn, Contract Purchaser for Stephen J. Williams was available for questions.

Councilwoman Scott inquired whether this project had been presented to the public for input and whether anyone had spoke in opposition. Mr. Flynn replied that the neighbors adjacent to the property had been approached. He indicated that the Planning Commission held a public hearing, but there were no speakers expressing opposition to the project. He noted that no opponents were present at this City Council Meeting.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Councilman Whitaker moved adoption of the above ordinance; seconded by Councilman Bateman.

(d)        Conditional Use Permit CU-07-223, Auto Properties Hall Ford, LLC

Mayor Frank presented AN ORDINANCE GRANTING CONDITIONAL USE PERMIT NUMBER CU-07-223 FOR THE HEREINAFTER DESCRIBED PROPERTY FOR THE PURPOSE OF ALLOWING AN AUTOMOBILE SALES/NEW CAR DEALERSHIP AND AUTOMOBILE SALES, USED CAR DEALERSHIP ON A SITE ZONED C2 GENERAL COMMERCIAL DISTRICT. He advised this granted a conditional use permit for the operation of a new and used automobile dealership on a 0.07 acre parcel zoned C2 General Commercial located at 12896 Jefferson Avenue. The Planning Commission voted 9:0 to recommend to City Council the approval of this conditional use permit application, and the City Manager concurred with that recommendation. 

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3.         Public Hearings Continued

(d)        Conditional Use Permit CU-07-223, Auto Properties Hall Ford, LLC Continued

Mr. Ray Suttle, Jr., Jones, Blechman, Woltz and Kelly, representing the applicant, was available for questions.

Councilwoman McMillan referenced a May 11, 2007 memorandum from the Department of Engineering, who did not support the reduction of the 30 foot transitional area to 0 feet as requested in the application, and inquired whether the matter had been resolved based on the staff’s recommendation. Mr. Suttle responded that the matter had been resolved.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Councilman Whitaker moved adoption of the above ordinance; seconded by Councilman Bateman.

(e)        Subdivision Ordinance Amendment SO-07-13, City of Newport News

Mayor Frank presented AN ORDINANCE TO AMEND AND REORDAIN APPENDIX B, SUBDIVISION REGULATIONS, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE V., PROCEDURE FOR MAKING AND RECORDING PLATS, SECTION 5-02, PRELIMINARY DEVELOPMENT PLAN. He advised this amended the City’s Subdivision Ordinance Text to require the City’s Director of Engineering to submit preliminary development plans to appropriate State agencies having review and approval authority within ten business days of receipt of such plans. The Planning Commission voted 9:0 to recommend to City Council the approval of this Subdivision Ordinance Amendment.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Mayor Frank noted this was a requirement due to a change in the State law, requiring that the Virginia Department of Transportation (VDOT) review all site development plans as part of its analysis of traffic impacts.

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3.         Public Hearings Continued

(e)        Subdivision Ordinance Amendment SO-07-13, City of Newport News Continued

Councilman Whitaker moved adoption of the above ordinance; seconded by Councilwoman Scott.

(f)        Rights-of-Way Acquisition – Richneck Road Improvements Project

Mayor Frank presented AN ORDINANCE TO AUTHORIZE THE ACQUISITION OF CERTAIN REAL PROPERTIES HEREINAFTER MORE PARTICULARLY DESCRIBED, SITUATE, LYING AND BEING IN THE CITY OF NEWPORT NEWS, VIRGINIA, TO IMPLEMENT THE RICHNECK ROAD IMPROVEMENTS PROJECT, PHASE I, AND PROVIDE FUNDS FOR THESE PURPOSES. He advised this authorized the acquisition, including condemnation if necessary, of the rights-of-way needed for Phase I of the Richneck Road Improvements Project. The authorization involved sixteen parcels needed for rights-of-way and one easement to accommodate the construction of this phase of the project. Phase I extended from Jefferson Avenue to Shields Road and consisted of widening the street to twenty-six (26) feet of asphalt pavement with concrete curb and gutter and sidewalk on one side. The project realigned the street with smooth curves and eliminated the existing roadside ditches. The funding needed for these acquisitions was available from previously approved appropriations.

Councilwoman Scott moved closure of the public hearing; seconded by Councilman Whitaker.

Councilwoman McMillan inquired whether the owners of the property to be acquired had been notified. City Manager Hildebrandt confirmed that all property owners had been notified.

Councilwoman Scott moved adoption of the above ordinance; seconded by Councilman Whitaker.

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3.         Public Hearings Continued

(f)        Rights-of-Way Acquisition – Richneck Road Improvements Project Continued

Vice Mayor Allen inquired about the applicability of eminent domain under the revisions passed by the Virginia General Assembly. City Attorney Katz responded that the City was obligated, as a result of the State law, to give notice to all, and to hold a public hearing. Previous to the amendment, the City was not required to advertise or hold a public hearing, but had to place the item on a City Council agenda for City Council consideration. Mr. Katz noted there were no other changes that required the City to do anything differently for the acquisition of the rights-of-ways for the parcels involved in this project. Vice Mayor questioned whether the City could enforce eminent domain to acquire the right-of-way should an owner not be willing to sell. The City Attorney concurred and added that would be a determination for the Courts to decide a value. This was a project with public purpose, which the State law allowed the City to pursue for acquisition.

4.         Consent Agenda

Councilwoman Scott moved adoption of the Consent Agenda, Items A through G, both inclusive, except E, as shown below; seconded by Councilman Bateman.

(a)        Minutes of Work Session of June 12, 2007

(b)        Minutes of Special Meeting of June 12, 2007

(c)        Minutes of Regular Meeting of June 12, 2007

(d)        HOME Program Loan for Great Oaks Apartments Renovation Project

APPROVING FUNDING FOR GREAT OAKS APARTMENTS IN THE CITY OF NEWPORT

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4.         Consent Agenda Continued

(d)        HOME Program Loan for Great Oaks Apartments Renovation Project Continued

NEWS. This resolution authorized a loan of $400,000 from the City’s Federal HOME Program as a local match to leverage private financing for the Great Oaks Apartments Renovation Project. The Newport News Redevelopment and Housing Authority (NNRHA) controlled 100% of the management in the entity that owned this apartment complex and would continue to serve as the owner-operator. The source of the proposed local match was the HOME Program, from which the City received an annual allocation through the U. S. Department of Housing and Urban Development. This renovation project involved extensive improvements focusing on accessibility and sustainability. The approval of this HOME loan to Great Oaks Apartments, LLC ensured that the planned renovation project was viable, and maintained the apartment complex as a resource for lower income elderly residents.

(f)        Amendment to Peninsula Health Center Lease

A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST ON BEHALF OF THE CITY OF NEWPORT NEWS ANY AND ALL DOCUMENTS NECESSARY TO EFFECTUATE AND IMPLEMENT AN AMENDMENT TO THE DEED OF LEASE BETWEEN THE CITY OF NEWPORT NEWS, VIRGINIA, AND THE COMMONWEALTH OF VIRGINIA, DEPARTMENT OF HEALTH FOR THE IMPROVED REAL PROPERTY IDENTIFIED AS 416 J. CLYDE MORRIS BOULEVARD, NEWPORT NEWS, VIRGINIA. This resolution authorized an amendment to renew the lease of the Peninsula Health Center to the Commonwealth of Virginia, and the execution of any and all documents necessary to effectuate this transaction. The Peninsula Health Center building, and associated property, located at 416 J. Clyde Morris Boulevard, with the then current lease to the Commonwealth of Virginia expiring on June 30, 2007. This amendment provided a new five-year term lease, with the maximum annual escalation rate for operational costs increasing from 3% to 5%. All other terms of the lease remained unchanged.

(g)        Incorporation of Recent State Code Changes into City Code

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 13, BUILDING REGULATIONS, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE II., UNIFORM STATEWIDE BUILDING CODE, DIVISION I., GENERALLY,

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4.         Consent Agenda Continued

(g)        Incorporation of Recent State Code Changes into City Code Continued

SECTION 13-23, ADOPTED; GENERAL CONSTRUCTION STANDARDS.

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 2, ADMINISTRATION, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE XX., DEPARTMENT OF PURCHASING, DIVISION 1., GENERALLY, SECTION 2-554, GENERAL PROCEDURE; SECTION 2-554.1, OPEN MARKET PROCEDURE FOR PURCHASES OF THIRTY THOUSAND DOLLARS, OR LESS.

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 26, MOTOR VEHICLES AND TRAFFIC, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE IV., OPERATION OF VEHICLES GENERALLY, SECTION 26-72, DRIVING WHILE UNDER INFLUENCE OF ALCOHOL OR DRUGS; ADOPTION OF STATE LAW.

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 1, GENERAL PROVISIONS, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, SECTION 1-2, RULES OF CONSTRUCTION AND DEFINITIONS.

These ordinances incorporated recent minor State Code changes into the City Code pertaining to the uniform Statewide Building Code, open market procedure for purchasing prosecution of traffic court cases, and rules of construction and definitions. These changes were made by the recent General Assembly, and would bring the City Code into conformity with State law.

(e)        Social Services Department Name Change

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 34, SOCIAL SERVICES, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA. This amended the City Code to change the name of the Department of Social Services to the Department of Human Services. This departmental name change reflected the new management concept of integrating human services under single management. The human services agencies represented a cross section including Social Services, Healthy Families, the Comprehensive Services Act Office, and the Virginia Cooperative Extension Office. The integration of these services established a seamless array of human services to better serve the needs of citizens in a comprehensive manner. The name “Human Services” reflected the complexities of the families served and the need to have a well-coordinated human services system to meet changing needs in the most efficient and effective manner possible.

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4.         Consent Agenda Continued

(e)        Social Services Department Name Change Continued

Vice Mayor Allen moved adoption of the above ordinance; seconded by Councilman Whitaker.

Councilwoman McMillan indicated that she did not feel that the City should incur the costs of changing the Department’s name at this particular time. She noted nothing had been included in the City Council packet concerning the costs that would be incurred by changing the Department’s name, the letterhead, the business cards, the signs on the buildings and the assorted sundries. Councilwoman McMillan disagreed with the change and felt this was not the proper time to change the name of the Department since the City was trying to watch its spending.

City Manager Hildebrandt assured City Council that the City would be frugal in this change. He added that the Director of Human Services had agreed not to order stationery or business cards until all on hand had been used. He further added that any confusion would be minimal.

5.                   Adult Detention Facility Expansion Project

A.        Appropriation of Funds

A RESOLUTION APPROPRIATING FUNDS FROM FY 2007 BONDS AUTHORIZED AND ISSUED – PUBLIC BUILDINGS ($2,500,000.00) AND RESERVE FOR SPECIFIC PROJECTS ($1,500,305.00) TO JAIL ANNEX ($4,000,305.00). This resolution appropriated $4,000,305.00 from Fiscal Year 2007 Bonds Authorized and Issued for the Adult Detention Facility Expansion Project. Funding for this project was programmed in the City’s Capital Improvements Plan. This project involved renovating the old Juvenile Detention Center into an Adult Detention facility. This was a two-story building consisting of 38,800 square feet which was vacated upon the completion of the new Juvenile Detention Center. This project allowed an increase of 52 beds to the rated capacity of the Public Safety Building. In addition, this project would provide nine special purpose beds, activity areas, classrooms, indoor and outdoor recreation, and a visitation room. The existing underground tunnel, which connected the Public Safety Building and the existing Juvenile Detention Center, would also be renovated.

Councilman Bateman moved adoption of the above resolution; seconded by Councilman Whitaker.

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5.         Adult Detention Facility Expansion Project Continued

A.        Appropriation of Funds Continued

B.         Award of Bid

Vice Mayor Allen moved to award the bid for construction of the Adult Detention Facility Expansion Project to Virtexco in the amount of $3,439,345.00; seconded by Councilwoman Scott. The City’s Department of Engineering completed its due diligence and recommended the award.

6.         Employee Leave Program Revisions

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 2, ADMINSTRATION, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE IV., EMPLOYEE BENEFITS, DIVISION 2., PAID PERSONAL LEAVE, SECTION 2-110, MAXIMUM ACCRUAL AND CARRY-OVER OF PAID PERSONAL LEAVE; AND SECTION 2-111, LEAVE EXCHANGE AND ADDING A NEW SECTION, NAMELY: SECTION 2-110.1, CARRY-OVER OF PAID PERSONAL LEAVE.

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 31, PENSIONS AND RETIREMENT, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE II., EMPLOYEES’ RETIREMENT FUND, DIVISION 4., CREDITED SERVICE, SECTION 31-35, CREDITED SERVICE GENERALLY.

These ordinances amended the City Code to revise certain provisions of the Employee Leave Program, effective July 1, 2008. The revisions did not alter the City’s flexible employee leave policy that had been in effect, and which continued to serve well to attract and retain a quality workforce. The changes ensured that employees used their personal leave and slowed the growth of the City’s leave liability, as well as lessened the financial impact on the City’s Retirement Fund. The carryover of personal leave would cap at 400 hours, which would, over time, eliminate the high balances of personal leave for employees who retired. 

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6.         Employee Leave Program Revisions Continued

Councilwoman McMillan moved adoption of the above ordinances; seconded by Vice Mayor Allen.

Mayor Frank requested that the City Manager provide a description of what was done to explain these changes to City employees.   City Manager Hildebrandt replied that while the proposal was in development, the plan was shared with all Departments, who shared the same with its employees. There was input at this stage. A brochure was sent out to each employee, explaining the proposal and the basis for the same. He felt the changes had been communicated well throughout the organization.

7.         Authorization of Loan by Hampton-Newport News Community Services Board for Completion of the Central Campus

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT NEWS, VIRGINIA, PURSUANT TO VIRGINIA CODE SECTION 37.2-504.A.11 AUTHORIZING THE HAMPTON-NEWPORT NEWS COMMUNITY SERVICES BOARD TO INCUR CERTAIN BORROWING OBLIGATIONS. This resolution approved a loan of $3.5 million by the Community Services Board Property Company, Inc. to complete the funding needed for the Hampton-Newport News Community Services Board (CSB) central campus. The State Code required approval by the governing bodies that were served by the respective community services boards of any loan applications made by the boards. The CSB originally borrowed $17.5 million as tax free, bond induced, bank qualified financing for the purchase and development of its new campus, with the knowledge that it would need to borrow additional funds to complete the project. The Bank of America pre-approved this new loan using equity in the campus for security. Also included in this approval request was City Council’s approval for an existing $2.5 million line of credit, which had not been used, but was considered the Board’s safety net. There was no liability on the part of the City for these transactions.

Mr. Charles Hall, Director, Hampton-Newport News Community Services Board, was available for questions.

Vice Mayor Allen inquired whether there was direct liability. City Manager Hildebrandt replied there was no direct or indirect liability on the part of the City for these transactions. Vice Mayor Allen inquired about increases in the annual local supplement. City Manager Hildebrandt advised that any increases would be absorbed into the Community Services Board’s budget, but would not affect the City directly. Vice Mayor Allen inquired whether there

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7.         Authorization of Loan by Hampton-Newport News Community Services Board for Completion of the Central Campus Continued

was a cap on State money and that any additional expenses would be passed to the City. City Manager Hildebrandt responded there was no State cap, and the CSB generated a lot of money from fees for services and medicare charges. 

Councilwoman Scott inquired about the impact to the City’s credit rating or bond rating. City Manager Hildebrandt replied there was no affect on the City’s credit rating.

Councilman Whitaker moved adoption of the above resolution; seconded by Vice Mayor Allen.

8.         Sheriff Department’s Fiscal Year 2008 Classification and Pay Plan

AN ORDINANCE PROVIDING FOR THE ADOPTION OF A CLASSIFICATION AND PAY PLAN FOR EMPLOYEES OF THE NEWPORT NEWS SHERIFF FOR FISCAL YEAR 2008. This approved the Sheriff Department’s Fiscal Year 2008 classification and pay plan for sworn and civilian employees. This was an update of the FY 2007 pay plan for the Sheriff Department’s sworn employees, and for the first time, included civilian employees of the department. Employees would be eligible for salary increases based on their respective classifications, with non-ranking sworn employees receiving 6% increases, and ranking employees and civilians receiving 4%. The State would provide monies equal to a 4% increase based on State Compensation Board established salaries. The total cost for any additional salary provided by the City for all State funded or partially State funded positions for FY 2008 would total approximately $525,000.00.

Councilman Whitaker moved adoption of the above ordinance; seconded by Councilwoman Scott.

            A RESOLUTION APPROPRIATING FUNDS FROM PUBLIC UTILITIES (WATERWORKS) GENERAL OBLIGATION WATER BONDS AUTHORIZED AND UNISSUED ($4,445,200.00) TO WALKER’S DAM STABILIZATION PROJECT ($4,445,200.00). This resolution appropriated the monies needed for the emergency repairs of the

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Waterworks’ Walkers Dam in New Kent County, for the construction and engineering services for this stabilization project.

Councilman Bateman moved adoption of the above resolution; seconded by Vice Mayor Allen.

Councilman Bateman moved to award the bid for emergency repairs to Walker’s Dam to Seaward Marine Corporation in the amount of $3,819,234.00; seconded by Vice Mayor Allen.

10.        Warwick Boulevard Multi-Purpose Trail Project

                        A.        Appropriation of Funds

                        A RESOLUTION APPROPRIATING FUNDS FROM VIRGINIA DEPARTMENT OF TRANSPORTAION ($100,000.00) TO THE MARINERS’ MUSEUM MULTI-PURPOSE TRAIL PROJECT ($100,000.00). This resolution appropriated $100,000.00 of State Revenue from the Virginia Department of Transportation (VDOT) for the Warwick Boulevard (Mainers’ Museum area) Multi-Purpose Trail Project. The City had been successful in obtaining approval of a Federal Congestion Mitigation Air Quality (CMAQ) Grant in the amount of $1 million for this project. The project involved the construction of a multi-purpose trail along the Mariners’ Museum property parallel to Warwick Boulevard. Construction of this trail would assist in the implementation of the City’s comprehensive sidewalk and trail plan.

Vice Mayor Allen moved adoption of the above resolution; seconded by Councilman Bateman.

            Ayes:    Frank, McMillan, Scott, Whitaker, Allen, Bateman

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10.        Warwick Boulevard Multi-Purpose Trail Project Continued

B.         VDOT Programming Resolution

                        A RESOLUTION REQUESTING CONGESTION MITIGATION AND AIR QUALITY PROJECT FUNDING FROM THE DEPARTMENT OF TRANSPORTATION FOR THE MARINERS’ MUSEUM MULTI-PURPOSE TRAIL PROJECT. This resolution requested that the Virginia Department of Transportation (VDOT) program for construction, the Warwick Boulevard (Mainers’ Museum area) Multi-Purpose Trail Project, using Federal Congestion Mitigation Air Quality Grant monies. This was the customary application required by VDOT to program and fund projects. Upon approval, VDOT would proceed with developing the required City/State Administration Agreement.

Vice Mayor Allen moved adoption of the above resolution; seconded by Councilman Whitaker.

            Ayes:    Frank, McMillan, Scott, Whitaker, Allen, Bateman

Councilman Whitaker moved adoption of Items A through D, both inclusive, as shown below, seconded by Councilman Bateman.

A RESOLUTION APPROPRIATING FUNDS FROM FY 2007 BONDS AUTHORIZED AND ISSUED – DEVELOPMENT ($1,000,000.00) TO PARTIAL ACQUISITION OF 809 OMNI BOULEVARD ($1,000,000.00). This resolution appropriated $1,000,000.00 from Fiscal Year 2007 Bonds Authorized and Issued to partially fund the acquisition of the property at 809 Omni Boulevard by the City’s Economic Development Authority (EDA). The City’s EDA was the successful bidder in the sealed bid offering by State Farm Mutual Automobile Insurance Company of its building at 809 Omni Boulevard for the total purchase price of $3,501,000.00. The City’s interim Capital Improvements Plan contained a $1,000,000.00 allocation for economic development initiatives, which was the source of this appropriation. The EDA financed $2,000,000.00 under flexible terms from a local financial institution, and provided the remaining $501,000.00 necessary for the purchase from cost savings from City Center at Oyster Point capital projects. The EDA pursued acquisition of this property because a portion of it would be needed, in the future, for public infrastructure and to ensure the comprehensive and coordinated development of the City’s surrounding properties.

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11.        Appropriations Continued

                        Councilwoman McMillan indicated there had been a lot of publicity and comments regarding the price that the City bid for this property. She further indicated that she had shared her comments with the Director of Development and the Chair of the Economic Development Authority. Councilwoman McMillan stated that she did not want her vote to reflect the fact that she approved of the price the City paid for the property, but further stated that she understood why the City wanted to acquire the property. In fairness to the City Manager, she reminded that Mr. Hildebrandt had distributed a memorandum advising that the City would aggressively bid for this property, and there was time to comment at that time. Knowing and understanding the plans the City had for City Center, she accepted the fact that the EDA moved swiftly to acquire this property; however, she was distressed that this sent a message of the City’s priorities and focus, which seemed to dwell on City Center, and where its resources were directed. Councilwoman McMillan stated she felt strongly about this resolution and did not approve, but felt to vote against it would be non-productive.

                        Councilwoman Scott asked the City Manager to explain why the City paid so much for the property. She reminded, during their initial conversation, she adamantly opposed spending so much. She stated that she too would support the resolution, but did not feel the City should have paid $3.5 million. City Manager Hildebrandt responded that the process of acquiring the property was by sealed bid to State Farm, who owned the property. State Farm made it clear that the highest bidder would be able to acquire the property. State Farm set a minimum bid at $2.1 million. The City was aware there were a number of parties interested in acquiring the property. The City was interested in continuing to expand City Center, and this property would allow them to cover their investment and more. The EDA and the Development staff had looked at the property and felt the amount bid could be recovered in the future, once the property was ready for development. City Manager Hildebrandt stated the amount bid was the amount needed to be successful and was fair and recoverable in the future.

                        Councilwoman Scott mentioned that Ms. Florence Kingston, Director, Department of Development, added that the property would cost more if the City were to wait  to acquire the property later in the future for infrastructure. 

                        City Manager Hildebrandt added that the City owned all of the adjacent property and this would be a strategic piece of property for future development and would affect the value of the property owned around it.

                        Councilman Bateman expressed concern that this matter put the City in a competitive situation with the private sector. He asked that the City be considerate and thoughtful going forward, recognizing that these types of transactions not only impacted the private sector, but the commercial real estate community as well. He commented that businesses should not be chased out of Newport News. Councilman Bateman agreed that the City would have paid more for this property years from now and stated it was a key purchase.

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11.        Appropriations Continued

(b)        Additional Sanitary Sewer Repairs for Phase II of the Warwick Boulevard Widening Project

A RESOLUTION APPROPRIATING FUNDS FROM FUND BALANCE RESERVE FOR SPECIFIC PROJECTS ($830,000.00) TO WARWICK BOULEVARD FROM NUTMEG QUARTER TO NETTLES DRIVE SANITARY SEWER REPAIRS ($830,000.00). This resolution temporarily appropriated $830,000.00 from Fund Balance Reserve for Specific Projects for Additional Sanitary Sewer Repair Work needed for Phase II of the Warwick Boulevard Widening Project. This phase of the project, from Nutmeg Quarter to Nettles Drive, included 2,350 feet of rehabilitation work on the sanitary sewer system; however, additional repair work was discovered as being needed. Staff, along with VDOT, determined that these additional repairs should be accomplished during construction to eliminate disruption later, and be performed by the specialized contractor performing the originally scheduled sewer repair work. This additional work required a revised City/State agreement with VDOT which would subsequently be presented to City Council for approval.

A RESOLUTION APPROPRIATING FUNDS FROM GENERAL FUND RESERVES ($4,626,955.00) TO ERP SYSTEM ($4,626,955.00). This resolution appropriated $4,626,955.00 from General Fund Reserves designated for Information Technology Replacement for the purchase of an Enterprise Resource Planning (ERP) software project. This software system would replace the City’s core business software system, whose components ranged from 16 to 37 years old.   The component systems involved pertained to payroll/human resources, purchasing, accounting, and budgeting. This project would be the most significant change in the City’s business practices for the next 10 to 15 years. The City’s Steering Committee for this project had as its goal the implementation of the financial systems by July 2008, and the payroll/human resources portion by January 2009.

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11.        Appropriations Continued

(d)        Private Donations for the Court Appointed Special Advocate Program

A RESOLUTION APPROPRIATING FUNDS FROM CASA PROGRAM DONATIONS ($1,895.00) TO CASA PROGRAM ($1,895.00). This resolution appropriated $1,895.00 of private donations for the City’s Court Appointed Special Advocate Program. The CASA Program trained community volunteers to serve as advocates for children found by the court to be abused and/or neglected. This appropriation represented private donations that required no City match. These funds would be used to train CASA volunteers, special activities for CASA children, and for fundraising events.

12.        Citizen Comments on Matters Germane to the Business of City Council

                        Mr. David Kundis, 106 Church Road, Newport News, representing RETRO (Real Estate Tax Relief Organization) commented regarding the real estate tax relief initiatives. He reminded that RETRO’s position advocated relief from an increasing owner’s tax burden from real estate property taxes. He felt the City had unfairly reaped a tax windfall from booming real estate assessments, with the result driving people from their homes, discouraging newcomers from settling in the area, and driving the middle class out of town. RETRO further advocated a tax rate objective of $0.93 per $100 of assessed value, which would accommodate essential services and deliver a tax cut for the majority of the citizens. Mr. Kundis indicated that RETRO looked forward to a continued constructive relationship with the City.

                        Mr. Kundis questioned using the FY 2007 $13 million surplus earmarked for information technology upgrades and asked that it be used for further tax reductions. He requested a written response. Regarding the bid of $1.4 million over value for the property located at 809 Omni Boulevard to benefit future City Center expansion, Mr. Kundis inquired whether the City was considering expansion with a $.5 billion debt and $400 million in shortfalls. He questioned where the funds would come from. Mr. Kundis reminded that the Mayor and City Manager promised to continue looking for ways to reduce the budget, and inquired whether progress had been made and further requested a written response regarding what was being done. Mr. Kundis commended the City Manager regarding an article in the June 26, 2007 edition of the Daily Press regarding tax relief proposals, citing it as encouraging news. He reminded that immediate results were needed.

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Minutes of Regular Meeting

June 26, 2007

12.        Citizen Comments on Matters Germane to the Business of City Council Continued

                        Mr. Simon Edwards, 631-74^th Street, Newport News, distributed a petition, signed by the residents of the eastern block of 74^th Street between Madison and Marshall Avenues, to control vehicle traffic and speed in an effort to enhance the safety and quality of life for residents. Mr. Edwards suggested various traffic calming measures such as speed bumps, a traffic signal, guard railing to cut off use of the road as a cut through, and increased police presence.

City Council requested the City Manager have the Department of Engineering staff look into the matter, and requested the Chief of Police look into increased enforcement.

                        Mr. Terry Savage, 1001 Cherry Creek Drive, Newport News, commented on the Hampton Roads Transportation Authority. Mr. Savage inquired about the impact on the City of Newport News should the revenues of the Hampton Roads Transportation Authority not meet operational, administrative, and debt service costs in any particular year or years as a result of a terrorist attack, a major hurricane, or population decrease. He asked whether the Hampton Roads Planning District Commission (HRPDC) and the Metropolitan Planning Organization (MPO) remained as they were and whether the same people that served on the Authority would also serve on the HRPDC and the MPO. Regarding overlapping debt, Mr. Savage inquired whether there were guarantees in place that the Authority’s debt would not become in part, or a consideration of debt applied to the City of Newport News and as such, become a hindrance to the City and its ability to borrow money or borrow money at a favorable rate. Mr. Savage inquired, when projects were completed, whether non-contractual agreements would be made public.

                        Mayor Frank responded stating the only thing the Regional Transportation Authority was authorized to do was only what the State Legislature authorized in the Bill, i.e. six construction projects and a litany of taxes and fees. The Authority would have no discretion to pick and choose one or the other, nor to change the tax. There was some commitment to go back to the Legislature and try to get them to change some of the taxes that were unconscionable. Mayor Frank advised that the MPO and the HRPDC would remain as they were. They had missions and terms of planning, issues involving air quality and water quality, conservation, etc. The Chief elected officers of each of the twelve jurisdictions – cities and counties, would serve on the Authority. The staff was intended to be very small. The organization was not building, designing, or engineering the roads, but was a conduit to collect the money from the taxes and revenues to make sure it stayed here and was used to pay for the intended projects and not go to VDOT to get tied into another project. When people exited the referendum years ago, they complained that there were no elected people involved in the process. The idea the legislature had was designed to make sure the money raised in the area, stayed in the area, and was used to pay for certain projects. The legislature also said when the projects were paid for, the tolls and fees would come off. Hopefully, over time, the defects in the legislation could be addressed and improved.

                        Regarding the impact on Newport News should the revenues not meet operational costs, Mayor Frank responded there would be no impact, as it was an Authority issue and a State legislative issue, not a local government issue. The City would have no obligation to

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Minutes of Regular Meeting

June 26, 2007

12.        Citizen Comments on Matters Germane to the Business of City Council Continued

contribute any money. The revenues from the taxes and the tolls would be the only money collected.  Mayor Frank added as the Authority moved forward and tried to address various issues, a reserve fund would be put together.  

                        Regarding overlapping debt, the State Attorney General rendered an opinion indicating the debt was not overlapping. Bond rating agencies also indicated it would be counted as overlapping debt. There was no obligation on local government to contribute anything. The money came from the revenues generated by a fee system.

                        Mr. Savage suggested that the Authority set up an interactive web site allowing the public to ask questions and find out information. Mayor Frank indicated that he planned to suggest that a group of individuals be put together to meet with the legislature to address the most egregious parts of the legislation and have them improved and fixed by January.

                        Vice Mayor Allen added that the Hampton Roads Transportation Authority was not a local authority, but was a State created authority. By being so, the State carried the liability.

                        Reverend Marcellus Harris, 12720 Patrick Henry Drive, Newport News, represented the Coalition for Justice, advised that the Coalition took issue with the reports concerning the Harper shooting. He indicated that the Coalition had done everything peacefully, intelligently, constitutionally to bring attention to what it thought clashed with the findings in the reports. Reverend Harris further indicated the Coalition would continue to do so in an effort to find a peaceful and reasonable resolution and explanation to what seemed to be obvious. The Coalition would continue to legally exercise its rights and would seek a more reasonable explanation to this tragic situation. He asked that the members of the Coalition for Justice be characterized as peaceful, law-abiding citizens. Reverend Harris announced that the Coalition for Justice held a Press Conference and was offended to see the Chief of Police and other officers present. He reminded that the Coalition for Justice was not the enemy, but had the right to assemble, the right to free speech, and the right to ask questions. 

                        Ms. Kim Winn, 158 Coventry Lane, Newport News, suggested that there be some accountability for Officer Overton with regard to the Police shooting death of Robert Harper. She shared her personal interaction with Officer Overton, who treated her in an uncalled for manner during a routine traffic stop. Having read copies of the reports concerning the Harper shooting, Ms. Winn felt the reports were appalling, and did not support justice.

City Manager, Randy Hildebrandt, reported the release of the public report on the police officer involved shooting of Mr. Robert Harper that occurred on April 18, 2007. It was his belief that the criminal and administrative investigations conducted by the Newport News Police Department were thorough, objective, and professional. His report was a factual and accurate summary of the two investigations, and was available on the City’s web site. City Manager Hildebrandt advised that Mr. Howard Gwynn, Commonwealth’s Attorney, had announced his re-

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Minutes of Regular Meeting

June 26, 2007

13.        New Business and Councilmember Comments Continued

view and decision that the death of Mr. Harper was justified and that no charges would be brought against the police officers involved in the incident. Mr. Gwynn reached the conclusion after reviewing the criminal investigation prepared by the Newport News Police Department and after conducting his own independent investigation into the incident. City Manager Hildebrandt’s conclusions regarding the actions taken by the officers involved are as follows: (1) The officer that fired his weapon did so in compliance with departmental policy on the use of lethal force; and had sufficient reason to believe that his life and the lives of other officers were in danger; (2) The handling of this incident fell within the policies, procedures, and training of the Police Department involving the discharge of a service weapon, and that the discharge of this weapon was unavoidable; therefore no administrative action would be taken against the officers involved in the incident. As a result of the Department’s administrative investigation, Chief Fox advised that he would take certain actions to include: (1) a review of all training procedures; (2) a provision for additional training regarding arrest procedures involving a surety capias; and (3) to examine less lethal options that could be made available for police officers in the future.   City Manager Hildebrandt expressed his full support of the Chief’s decision on the actions that he would take. City Manager Hildebrandt further stated that this had been a difficult time for the family and friends of Mr. Harper, as well as the police officers involved and their families. It was his hope that the healing process would begin for everyone affected at the conclusion of the investigations.

Councilwoman McMillan thanked the Denbigh Kiwanis for sponsoring the Den-B-Que, a music festival and barbeque. She commended Mr. Carl Jackson, District Planner, Department of Planning, for assisting with the logistics and helped to make the event successful.

Councilwoman Scott congratulated the new commander of American Legion Post 368, Mr. James Holt, who was installed on June 23, 2007, and wished him well.

Councilman Bateman inquired about the availability of smaller trash cans for families that did not need or require larger cans, and the economic affect of the same.

THERE BEING NO FURTHER BUSINESS,

ON MOTION, COUNCIL ADJOURNED AT 8:44 P.M.

Mabel V. Washington, CMC                                          Joe S. Frank

            City Clerk                                                              Mayor

                                                                                  Presiding Officer

     A true copy, teste:

          City Clerk