Virginia Beach

Local Wetlands Board

1

May 20, 2013 DCM Dave Hansen

Background 1997 Citywide Analysis

Too big, too long, unaffordable $30 - $40 million 2004-2005 Series of 4 Council Briefings

Four potential courses of action identified No formal Council action

2010 Several neighborhood requests for assistance Cost participation SSD concepts Those who receive benefit should pay for it

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Program Attributes

Individual neighborhood SSD’s, create specific scopes and timelines to

engineer, permit and construct 3 cycles of dredging over a 16 year project

Incorporates three levels of funding: City, Neighborhood, & Individual

Only waterfront owners receiving the benefit are included in the SSD

Incorporates City management: formulation, survey, design, permitting,

contracting, construction, maintenance and administration

Creates a viable and sustainable solution to reclaim navigation & improve

water quality

Establishes a reasonable timeline with visible results

Supports the City Council’s #5 Strategic Goal: Revitalize Neighborhoods

and Plan for the Future 3

Legal Authority

• VA Code §15.2-2403 Authorizes SSDs for navigation

• Minimum of 51% property owner approval

• Requires formal adoption by City Council for each SSD created to

support each neighborhood dredging project

• Council established 80% property owner approval

• Council adopted program in FY12 Operating Budget

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•City funding of the spur channel

•Neighborhood channel funded by SSD

• Individual funding of turn basins

• City management of project

• Economies of scale

• Defined schedule

•Reevaluates the SSD rate every 4th year

• Sunset duration 5

Fina

ncin

g St

rate

gy

3 Funding Sources

• Initial dredging: 2 years after SSD adoption

• Projected cycle: 7 years

• 2nd cycle anticipated at 70% of initial volume

• 3rd cycle anticipated at 50% of initial volume

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Year 9 16 2

1st Dredging 2ndDredging 3rdDredging

• Mechanical Dredging in the Lynnhaven

• Hydraulic Dredging in Rudee

• Evaluate for neighborhood dredged material transfer

• Develop City Dredged Material Transfer Site Network

• Deposition at City Disposal Area: Whitehurst Borrow Pit

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8 1

Lower Western Branch

Linkhorn Bay

Eastern Branch

Long Creek & Broad Bay

Crab Creek

V.B. Blvd.

Laskin Road

Control Areas for Locating and ConstructingMechanically Dredged Material Transfer Sites

Whitehurst Dredged Material Placement Area

Upper Western Branch

Thalia Transfer Station

Revised 5/25/11

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Dredged Material Transfer Sites

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To the extent private rights are necessary, owners will dedicate easements or enter into leases to allow full access during the project.

Each NNDSSD Project requires a full real estate team review, title assessment, and determination

Process for Creating an SSD Dredging Process

Initiation Discovery Analysis Adoption Pre-execution Execution

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2011 2012 2013

SSD

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

D

ec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

WBLR

1 Old Donation

3 Robin Hood Forrest

2 Bayville Creek

4 Thoroughgood

5 Chesopeian Colony

6 Harbor Point

7 Baycliff 8 Hurds Cove 9 Middle Plantation 10 Buchannan Creek 11 Shadowlawn

12 Witchduck

Neighborhoods In Play 1. Old Donation Creek 2. Bayville Creek 3. Shadowlawn 4. Chesopeian Colony 5. Harbour Point 6. Thoroughgood Cove 7. Middle Plantation - Gills Cove 8. Buchanan Creek 9. Hurds Cove 10. Thoroughgood (2) 11. Witchduck (2) 12. Witchduck Cove 13. Baycliff 14. Robin Hood Forest

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BAYVILLE

BAYCLIFF

MIDDLE PLANTATION

ROBINHOOD FOREST

CHESOPEIAN COLONLY

SHADOWLAWN

HARBOUR POINT

HURDS COVE

OLD DONATION

CREEK

BUCHANAN CREEK

WITCHDUCK

THOROUGHGOOD

RIVER HAVEN

Neighborhoods in Play

Old Donation SSD Established September 13, 2011 Bayville Creek SSD Established March 27, 2012 X Robin Hood Forest failed to reach 80% Chesopeian Colony, Shadowlawn & Harbor Point approved by Council to move to the Petition phase • Buchanan Creek, Thoroughgood and Middle Plantation in the analysis phase •Witchduck, Buchanan , and Hurds Cove in discovery • River Haven in initiation

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Neighborhood Projects Status

15

38.7¢

16

36.3¢

17

26¢

18

23¢

19

13¢

20

41.8¢

21

16.3¢

1st Dredging Cost Estimate • City Portion: $103,212 • SSD Portion: $393,480 • Individual Channels: $12,000 average • 1st Dredging cost for engineering and construction contracts could exceed $1 million • Includes design, permitting, contracting, construction, inspection, administrative costs, and navigation aids

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Life Cycle Estimated Costs City Portion

Cycle Volume Cost 1 2,667 CY $103, 212 2 1,867 CY $90,059 3 1,334 CY $90,523 5,868 CY $283,794

(includes 5% cost escalation)

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Life Cycle Estimated Costs SSD Portion

Cycle Volume Cost 1 10,330 CY $393,480 2 7,233 CY $348,920 3 5,167 CY $350,757 22,730 CY $1,093,157

(includes 5% cost escalation)

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Appropriations Schedule Cycle Year Design Construction 1 1 $100,000 2 $400,000 2 8 $88,000 9 $352,000 3 15 $90,000 16 $355,000 _____________ Total $278,000 $1,107,000

Neighborhood & City channels only = $1,385,000

25 $283,704 : $1.093,157 = 1 : 3.85

SSD Data

• Total SSD assessed value: $43,012,700

• 63 properties in the neighborhood district

• Each penny surcharge raises $4,301/year

• SSD rate covers costs for 16 year life: 16.3¢/$100 of the

FY11 assessed value

• Average property contributes $1017/year

• Review rate at end of every 4th year

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Timeline • 2 years from SSD adoption to first cycle of dredging for

engineering, permits, contracting – Sep 2013

• 2nd and 3rd cycles each 7 year thereafter

• Sunset in 16 years

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Year 9 16 2

1st Dredging 2ndDredging 3rdDredging

Risks: • Environmental permits

• Real estate dedication

• Real estate valuation changes

• Construction cost escalation assumption (5% annually)

• Property exemptions

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Conduct neighborhood information briefings Perform an initial assessment of the project parameters Provide a preliminary estimate of the SSD rate Await neighborhood feedback in support of the project Brief the City Council and obtain consent to develop the project Refine the neighborhood project parameters and the SSD rate Conduct a second neighborhood information meeting Validate willingness to reach 80% and issue petitions Execute documentation Conduct public hearing Prepare City Ordinance establishing SSD Obtain City Council decision

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Milestones for Establishing a Project

2013 Legislative Agenda - SB926

Unanimously approved by City Council Modification to existing language defining gov’t project

Easements NNDSSD

Validates Council’s belief these are government projects composed of 3 elements managed & constructed by the staff Follows processes of state and federal oversight of the permitting process Provides numerous opportunities for public input process Enables mitigation to be retained within watershed - in the local government mitigation bank at Pleasure House Point

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Supports the City Council’s #4 Strategic Goal: Revitalize Neighborhoods and Plan for the Future Responds to property owners request for assistance Creates a methodology where those who receive the benefit, pay for the benefit Establishes a way for civic leagues to create change Creates a viable, affordable, achievable way to reclaim navigable waterways while improving water quality

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