MINUTES OF REGULAR MEETING

OF THE NEWPORT NEWS CITY COUNCIL

HELD IN THE CITY COUNCIL CHAMBERS

2400 WASHINGTON AVENUE

PRESENT: Joseph C. Whitaker; Charles C. Allen; Herbert H. Bateman, Jr.; Joe S. Frank; William F. Haskins; Madeline McMillan; and Sharon P. Scott ----7

1. The Invocation was rendered by Pastor Carl Morant, Antioch Christian Center.

2. The Pledge of Allegiance to the Flag of the United States of America was led by Councilman Whitaker.

(a) Subdivision Ordinance Text Amendment SO-07-14

Mayor Frank presented AN ORDINANCE TO AMEND AND REORDAIN APPENDIX B., SUBDIVISION REGULATIONS, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE VIII., REQUIREMENTS AND STANDARDS OF DESIGN, SECTION 8-03, STREETS, SUBSECTION 8-03.5, CUL-DE-SAC. He advised this amended the City’s subdivision ordinance to allow the City’s Director of Engineering to waive the requirement for a cul-de-sac when a suitable alternative was more appropriate. The Planning Commission voted 8:0 to recommend to City Council the approval of this subdivision ordinance amendment, and the City Manager concurred with that recommendation.

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

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

Abstention: Frank (Has a law client that may benefit from the change in the ordinance.)

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

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

Abstention: Frank (Has a law client that may benefit from the change in the ordinance.)

(b) Authorization to Acquire Property – 15220 Warwick Boulevard

Mayor Frank presented AN ORDINANCE TO AUTHORIZE THE ACQUISITION OF CERTAIN REAL PROPERTY HEREINAFTER MORE PARTICULARLY DESCRIBED, SITUATE, LYING AND BEING IN THE CITY OF NEWPORT NEWS, VIRGINIA, AS PART OF THE NORTH DISTRICT RECREATION CENTER PROJECT AND PROVIDE FUNDS FOR THESE PURPOSES. He stated this authorized the acquisition of property located at 15220 Warwick Boulevard and the execution of any and all documents necessary to effectuate the purchase. This was a +/- 0.29 acre parcel of undeveloped land owned by Albert C. Pulliam that was located adjacent to City-owned land that was designated for development of the new North District recreation center. This particular parcel was identified during the site planning process as desirable for the new facility. The City’s Director of Parks, Recreation and Tourism supported the acquisition to accommodate the recreation center. A professional appraisal of the parcel determined its fair market value to be $40,000, which was the proposed purchase price. It was currently assessed for tax purposes at $25,100.

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

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

Councilman Haskins moved adoption of the above ordinance; seconded by Councilwoman McMillan.

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

(c) Sale of City-owned Property at 1140 27^th Street to Matthew L. Bradley, Sr.

Mayor Frank presented AN ORDINANCE 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, INCLUDING DEEDS, NECESSARY TO EFFECTUATE THE CONVEYANCE OF CERTAIN CITY OWNED PROPERTY TO MATTHEW L. BRADLEY. He explained this authorized the sale of City-owned property located at 1140 27^th Street, to Matthew L. Bradley, Sr., and the execution of any and all documents necessary to effectuate the conveyance. This proposed sale was in response to an offer from Mr. Bradley to purchase this twenty-five foot vacant lot. Mr. Bradley owns the adjacent 37.5 foot lot at 1142 27^th Street and wished to combine the two lots together in order to build a single family dwelling. The parcel proposed for sale to Mr. Bradley was acquired by a Circuit Court order due to delinquent taxes. The proposed sale price was $10,000, which was the assessed value.

Vice Mayor Allen moved closure of the public hearing; seconded by Councilwoman McMillan.

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

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

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

(d) Lease of City-owned Property to Menchville Marine Supply Corporation

Mayor Frank presented A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST, ON BEHALF OF THE CITY OF NEWPORT NEWS, VIRGINIA, THAT CERTAIN MENCHVILLE MARINA LEASE BY AND BETWEEN THE CITY OF NEWPORT NEWS, VIRGINIA, AND MENCHVILLE MARINE SUPPLY CORPORATION DATED THE 25^TH DAY OF SEPTEMBER 2007. He advised this authorized the execution of a lease of Parcels 1 and 2 at the Menchville Marina to Menchville Marine Supply Corporation. Menchville Marine Supply Corporation had leased these two parcels from the City since June 1, 1996 and the most recent lease expired on May 31, 2006. This proposed lease had a one-year initial term and the remainder of the lease contained essentially the same terms and conditions as the last lease, except the rental rate increased from $650.31 to $1,000 monthly. The lessee’s lease payment was current; leasehold taxes were paid; and, his insurance requirements had been met.

Councilman Haskins moved closure of the public hearing; seconded by Councilwoman McMillan.

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

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

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

Councilman Haskins moved adoption of the Consent Agenda, Items B through C, both inclusive, as shown below; seconded by Councilman Bateman.

(b) City Code Amendment – Increase in Threshold Amount for Small Purchases

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 2-554.1, OPEN MARKET PROCEDURE FOR PURCHASES OF FIFTY THOUSAND DOLLARS, OR LESS. This Ordinance amended the City Code to increase the current threshold amount for small City purchases. This proposed amendment increased the small purchase authorization from $1,000 to $2,500 per transaction.

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

(c) Resolution in Memoriam – John William Hornsby, Jr.

A RESOLUTION IN MEMORIAM FOR JOHN WILLIAM HORNSBY, JR. This resolution recognized Mr. John Williams Hornsby, Jr., for his involvement in community service to include serving as Mayor of Newport News from 1970 to 1974.

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

Councilman Whitaker moved adoption of Consent Agenda, Item A, as shown below; seconded by Councilman Haskins.

(a) Minutes of Regular Meeting of September 11, 2007

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

Abstention: Scott (Was not present at the Regular Meeting of September 11, 2007.)

5. Recodification of Chapter 31 of the City Code Pension and Retirement

AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 31, PENSIONS AND RETIREMENT, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, AND TO ADOPT NEWPORT NEWS EMPLOYEES’ RETIREMENT FUND (NNERF) AMINISTRATIVE POLICY 1000.1. This recodified the Pension and Retirement Section of the City Code to clarify current language, remove inconsistencies and remove obsolete provisions; as well as approve associated Administrative Policy 1000.1. The City’s Retirement Board approved this recodification at its June 28, 2007 meeting, and recommended its approval by City Council. The most significant changes being proposed were: 1) Retiree’s survivor death benefit would be changed from the prorated $3,300 benefit that decreased annually to a minimum of $550, to a fixed lump sum of $3,300; 2) The elimination of the $3,300 lump sum death benefit for vested terminated-employees; 3) The lump sum death benefit payment to a surviving spouse could be transferred to a qualifying tax-deferred account; 4) A social security disability award would no longer result in a change in the partial disability award under the City pension plan; 5) Vested-terminated members who were not receiving a retirement benefit, but were reemployed, would not have their retirement benefits recalculated as if they had been separated from City employment and reemployed; 6) School employees who were Virginia Retirement System (VRS) members would no longer be eligible for a disability benefit under the City system; 7) Elimination of the provision that allowed a school VRS member to receive a 100% retirement benefit from the City when retiring before the age of 55; and 8) Elimination of the reliance on the VRS average final salary in the calculation of the City retirement benefits.

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

Ms. Darnice Person-Carey, Virginia Education Association, 3111 Big Bend Drive, Chesapeake, VA 23321, representing the Newport News Education Association (NNEA), thanked City Council for their support and noted concerns related to the proposed changes to the City’s retirement plan for educators. She felt the proposed changes would impact current and prospective employees. She asked that the City grandfather current employees, and allow them a grace period to use or forfeit their benefits. She asked that impacted individuals be educated about the changes so that they understand what was at stake in order to make the best decision based on their individual situation. Educators in the Newport News Public School (NNPS) system seemed very confused about the proposed changes and how they affected employees. Ms. Person-Carey stated the members of the NNEA supported City Council in the decisions they made, and believed City Council would make the best choice for all.

Mayor Frank felt that the school employees, affected by the changes, were notified appropriately. City Manager Hildebrandt stated, according to his knowledge, Dr. Ashby Kilgore, Superintendent of NNPS, sent out the same information he sent out to City employees explaining, in detail, the different changes that were being proposed.

Mayor Frank asked that City Manager Hildebrandt explain the impacts and why the changes were being proposed. City Manager Hildebrandt understood the concerns voiced by the NNEA were regarding the City supplement that was paid to teachers who retired from the NNPS before age 55. The proposed change eliminated the provision that allowed a school VRS member to receive a 100% retirement benefit from the City when retiring before age 55, thereby discouraging teachers from retiring and going to another locality to teach. 

Councilwoman McMillan voiced concern that school employees felt City Council was changing the rules. She understood that the school system was included in all discussions the City had regarding the proposed changes to the retirement system. She inquired about the process that was used, and felt it was the responsibility of the School Board, not City Council, to make sure the questions and complaints of their employees were addressed. She stated the City coordinated the changes with the School system, and indicated it was unfair to City Council to have to address school employee complaints. City Manager Hildebrandt stated that City staff presented the details of the changes and how it affected employees of the City and Schools to the School Board at its April 11, 2007 meeting. He stated Superintendent Dr. Kilgore supported the changes and indicated a school representative on the Retirement Board was involved in the discussions. City Manager Hildebrandt introduced the Chairman of the Newport News Employees Retirement Fund, Philip Hatchett, to give brief details about the revisions.

Mr. Hatchett stated the recodification of Chapter 31 took over 30 months to complete. He assured City Council that the recodification had been reviewed in detail by all concerned parties. Dr. Kilgore and her office were involved in making sure that the statute protected school employees.

Mayor Frank explained that the changes in Chapter 31 that dealt with school employees who were VRS members were necessary in order to discourage teachers from retiring from NNPS before age 55. He explained teachers would retire from NNPS before age 55, seek employment in another locality and collect the City’s retirement, which was the equivalent of the City’s supplement plus what VRS allotted them. The present ordinance gave teachers an incentive to leave the NNPS and go to another locality to work.

Mr. Hatchett agreed that teachers were leaving the NNPS system to seek employment in other localities. They were going to teach in other jurisdictions, but under the City Code, they were deemed retired. The Committee wanted to make sure that the extra supplement of 2% offered by the City was guaranteed to every employee whether they worked for NNPS or the City.

Councilwoman Scott inquired whether the only persons impacted by the ordinance were those who were retiring and going to other localities to work.   Mr. Hatchett replied that was correct and noted none of the recodification language cut benefits; the recodification increased benefits. He stated the recodification was reviewed and approved by the City’s Actuary, and came to City Council with the full support of the Newport News Retirement Board, the City Manager’s office and the Superintendent of Schools.

Councilwoman Scott suggested the changes be clarified and explained in more detail to school employees. Mr. Hatchett stated everyone had worked to assimilate the information over the last six months. He stated the City Manager’s office was adamant that the information went out before the Board’s approval to give adequate time for employees to voice their concerns. He would be happy to explain the changes to anyone who did not understand.

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

Councilwoman McMillan moved adoption of Items A through C, both inclusive, as shown below; seconded by Vice Mayor Allen.

(a) Juvenile Services Drug Court Grant

A RESOLUTION APPROPRIATING FUNDS FROM FEDERAL FUNDS ($133,000.00) TO JUVENILE SERVICES DRUG COURT GRANT ($133,000.00). This resolution appropriated $133,000.00 of the Federal Grant Revenue for the City’s Juvenile Drug Court Program. This grant represented the City’s sixth year of participation in this federal program. The local program assisted juveniles and their families in becoming productive members of the community. The Juvenile Drug Court used a non-adversarial approach within the justice system. There was no local grant match required for participation in this grant program.

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

(b) Selective Enforcement and Occupant Protection Grant

A RESOLUTION APPROPRIATING FUNDS FROM FEDERAL REVENUE ($27,206.00) AND LOCAL REVENUE ($5,441.00) TO SELECT ENFORCEMENT/DUI ($32,647.00). This appropriated $27,206.00 of Federal Grant Revenue and $5,441.00.00 of Local Grant Match from the City’s Fiscal Year 2008 Operating Budget for the Police Department’s Selective Enforcement and Occupant Protection Program. This grant revenue would assist the Police Department in providing overtime funding for police officers to conduct checkpoints, provide roving and saturation patrols, and traffic related training. No other local funds, other than the noted local match, were needed to operate this program.

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

(c) Virginia Foundation for the Humanities Grant

A RESOLUTION APPROPRIATING FUNDS FROM LIBRARY – VFH GRANT REVENUE FROM THE COMMONWEALTH ($1,500.00) TO LIBRARY – VFH GRANT ($1,500.00). This appropriated $1,500.00 of Grant Funding from the Virginia Foundation for the Humanities for use by the City’s Public Library System. These monies were granted to the City specifically to cover the costs associated with the printing of programs for author Amy Tan’s appearance at the Ferguson Center for the Arts. The author’s appearance at the Ferguson Center included a free author talk and book signing. The City’s public library system provided the in-kind match for this grant utilizing current resources. No other local funds were required for this grant.

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

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

Dr. Michael Edwards, 1135 – 36^th Street, Newport News, on behalf of the Southeast Community Day Planning Committee and Mr. Andrew Shannon, Event Founder and Organizer of the Annual Southeast Community Day and Festival, reported the good news in the Southeast Community of Newport News. He stated thousands were in attendance at the Southeast Community Day Parade held on September 8, 2007. Over 125 units participated, including 15 marching bands from Newport News, Hampton, Portsmouth, Southeastern North Carolina, and the Southeast Communities of Washington, D.C. To kick-off the event the Honorable Timothy Kaine, Governor of Virginia, delivered a powerful speech during the Presidential Reception, held Friday, September 7, 2007, reminding that it took children to help build a strong community. Mr. Curtis Blow performed at the after party held on September 8, 2007.   The Dr. Curtis W. Harris Jr. Solidarity Lunch, on Sunday, September 9, 2007, concluded the weekend’s events, and was an accurate reflection of how the festival enlivened human spirit and brightened the lives of the young and the young at heart. Dr. Edwards extended heartfelt appreciation to Mayor Frank for serving as the 2007 Parade Honorary Chairman and hosting the Presidential Reception, Governor Kaine for serving as the Presidential Reception Keynote Speaker, Councilman Bateman for serving as Honorary Festival Co-Chair, and Councilman Whitaker and Councilwoman Madeline for serving as Honorary Parade Marshals. He thanked all for their presence in what the Committee felt was the greatest parade and festival in the Community’s history. (A copy of Program, “Southeast Community Days: A Weekend Celebration,” is attached to these minutes.)

Mr. Philip Thatch, 655 Hamilton Drive, Newport News, noted concerns regarding purchase of property at 301 Buxton Avenue by the City for $125,000.00 from Mr. David Merryman. He indicated the property at 301 Buxton Avenue was purchased by Mr. Merryman, prior to him selling to the City, from Joyce B. Forrest on July 20, 2007. Mr. Merryman then had a discussion with Assistant City Manager Neil Morgan about selling the property to the City on August 14, 2007. Mr. Thatch inquired of Assistant Manager Morgan why the previous owner was not contacted about the purchase of the property prior to Mr. Merryman’s purchase. He stated Assistant City Manager Morgan replied that the previous owner was not contacted because of other pressing priorities. He inquired about the other pressing priorities. Mr. Thatch noted pictures of the property and indicated he did not see $60,000.00 worth of improvements to the building. He inquired whether Mr. Merryman received building permits for the work done to the property, and questioned the truthfulness of some of the statements made by the City Manager, Assistant City Manager Morgan and Mr. Merryman. He requested that an investigation be done into the matter. 

Mr. Thatch also inquired about a City project at the small boat harbor for a handrail on an existing wave screen at the cost of $587,777.77. He felt that was a lot of money for a handrail. He stated he went to the Department of Engineering where he was allowed to see the blueprint for the project and where the fishing area would be located. He was allowed to look at the project book and requested a copy so that he could review it entirely. The City employee who assisted him called his supervisor, who informed Mr. Thatch that he would not be able to show him anything else or offer any additional information, and instructed him to go to the City Attorney’s Office to file a Freedom of Information Request. Mr. Thatch stated this was a project approved by City Council that had been contracted out and yet, no one wanted to look into the details to see where all the money was going for a handrail. He indicated, as he stood at the project site and looked around, he noted the King-Lincoln Fishing Pier, less than 100 yards away, and the Monitor-Merrimac Fishing Pier, a mile away. There were three fishing piers within a mile from each other, but the City said no to the one at Deep Creek Harbor. He felt the handrail project was a waste of tax payer’s dollars.    

Mr. John S. Atkinson, 135 Sloan Place, Newport News, noted an Engineering Report by Fletcher & Associates Consulting Structural Engineers. (Copy of report is attached and made a part of these minutes.) He referenced a 1965 memo he received from City Attorney Katz that contained photo copies of the Warwick County Board of Supervisors document where various land owners, along what was to become Deep Creek Road, signed over their property interest to Warwick County. No property was conveyed, at least in the case of the Melzer lot, and no deed was filed. The 1927 document was not notarized and lacked several signatures of parties listed in the body of the document. The document did contain a granting clause signed by landowner, John E. Parker, which clearly stated that a condition had to be met by the County in return for taking Mr. Parker’s land, such as the County constructing a road that lead north to the public road that was now Harris Road. Mr. Atkinson reported the 1927 document was photo-copied in 1965 and had no page numbers and was very likely not complete. The document did not mention the pier at all, yet the pier had existed for more than 60 years. He felt a complete search of the minutes of the Board of Supervisors of Warwick County must be conducted to answer the question of whether or not the pier was a condition of the Melzer’s grant. The immediacy of the need to tear down the pier, seemed premature given the unknown status of the City’s obligation to maintain the pier. He stated the Engineering Study by Fletcher & Associates did not concur with the City’s study. Although, Mr. Fletcher was not a contractor he was familiar with the cost involved in pier construction, and felt the cost would not amount to the money that the City’s study claimed would be necessary to rebuild and/or repair the pier. He stated Deep Creek Pier was the only City pier in the vicinity of the James River Oyster ground that served the needs of working watermen and was the only pier that was part of the local economy. The Deep Creek Pier deserved far more consideration than it had received.

Mr. David Kundis, 106 Church Road, Newport News, stated the questions and the lack of trust citizens had for City Council were due to the many closed door meetings that were frequently conducted and the fact that citizens were not kept up-to-date on what was going on. He stated citizens relied on City Council to check and balance the City Manager’s budget. No City, State or Federal entity could spend continually at the City’s present rate without consequences, thus the City had a billion dollar debt. The average household income slipped between 1999 and 2006, while taxes increased because of out of control spending, not because of improved or increased services. Mr. Kundis suggested to the City Manager, in early spring 2007, to do an across the board 10% cut in all areas, but the City Manager did not agree.  Citizens want City Council to reduce spending. He requested a written response from the City Attorney, Stuart Katz, on the legal procedure for recalling the Mayor and/or City Council members before the end of their terms.

Mr. L. T. Vaughn, 595 Snug Harbor Lane, Newport News, asked City Council to reduce City spending. He stated many concerned citizens, including the Real Estate Tax Relief Organization (RETRO), had been asking for the same thing, yet, nothing seemed to be happening. In fact, just the reverse was occurring. He stated it was City Council’s job to advise the City Manager to reduce spending, reject or amend projects that were too expensive, wasteful or not prudent. He asked City Council to do their job in a frugal, responsible manner. He read a letter he sent to the editor of the Daily Press regarding the City’s surplus. (A copy of the letter to the editor is attached and made a part of these minutes.) 

Ms. Laura H. Irby, 18 Davis Avenue, Newport News, stated if citizens appeared angry at City Council meetings it was because they were angry at themselves, as well as City Council members. She stated political power was in the hands of the citizens and bequeathed to local, state and federal elected officials.   If citizens become angry at themselves it was because they elected officials who voted for a regional taxing authority after being told not to by the citizens. Citizens were upset with themselves because they elected people who completely ignored what they had to say. She felt the City was no longer using fiscal conservatism that had once been a hallmark for the State of Virginia and the City of Newport News, where one paid for and sold properties for appropriate prices. She asked City Council to become fiscally conservative and change the way the budget and fiscal policies in the City were being handled.

Ms. Pixie Killebrew, representative of RETRO, 13 Hilton Terrace, Newport News, invited all members of City Council, all announced Candidates for City and State Offices and citizens of Newport News, who could affect their RETRO agenda for a tax rate for the coming budget year of $.93 per one hundred, to attend a public forum and voter registration drive on October 29, 2007 at 7:00 p.m. They were awaiting confirmation of their venue at Warwick High School. She stated the Public Forum was a non-partisan gathering and everyone would be given the same time to speak. Formal invitations would be forthcoming.

8. New Business and Councilmember Comments

City Manager Hildebrandt noted that the Engineering Report provided to City Council, by Mr. Atkinson, essentially confirmed what the City’s earlier Structural Engineer confirmed. The pier should to be demolished and replaced. He stated the issue was not whether the pier should be kept and repaired but whether or not the City replaced the pier and at what capacity and extent. He would provide information and the costs associated with replacing the pier to City Council, as part of the Capital Improvement Plan.

Mayor Frank presented a RESOLUTION OF RECOGNITION TO INSIGHT ENTERPRISES, INC., in recognition of their 30^th anniversary.

Councilman Haskins moved adoption of the resolution; seconded by Councilwoman McMillan.

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

Councilman McMillan extended congratulations and special wishes to Sergeant Lenore Whitehead on her retirement from the Newport News Police Department.

Councilwoman Scott wished a happy 40^th anniversary to Mike and Carol Karkuff, who were residents of the North District. 

Councilwoman Scott wished belated birthday wishes to Samantha Berkley, the Youth Advisor for the North District Town Hall meetings.

Mayor Frank extended birthday wishes to his granddaughter, Jessica Currin.

THERE BEING NO FURTHER BUSINESS,

ON MOTION, COUNCIL ADJOURNED AT 8:36 P.M.

Jennifer D. Walker, CMC                                                     Joe S. Frank