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Record of Proceedings

Chesapeake City Council Meeting and Work Session - April 8, 2025

City Council — Tuesday, April 8, 2025
BodyChesapeake, Virginia
SessionCity Council
DateTuesday, April 8, 2025
StatusFILED
Video Record
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2:03

Thank you, Ms.

2:03

Mayor.

2:04

Two items for your consideration uh and discussion tonight.

2:06

Uh first is uh the annual update from Chesapeake Transportation System, and I'll be turning that um item over to uh Mr.

2:13

Sorry to introduce the team and then second we'll continue the discussion on the enhanced uh public safety budget.

2:20

So uh turn it over to public works director sorry.

2:23

Uh thank you, Mr.

2:24

Manager.

2:25

Uh good evening, Mayor, uh Vice Mayor and members of the council.

2:28

It's a pleasure to be here tonight to give you an update on the Chesapeake Transportation System operating results for fiscal year ending June thirtieth, twenty twenty four.

2:36

Uh we have our city team uh here with us uh tonight, so uh led by Belinda Malone, our CTS administrator.

2:44

Uh we're also joined by uh our consulting team uh to my right is Sean Eckert, managing director of Raymond James uh Financial to the far right, and then beside me is Dave Cunho, director of traffic and revenue forecast.

2:59

We're having a hard time.

3:00

It sounds a little muffled.

3:01

Maybe if you get a little bit closer to the mic, maybe is this better.

3:05

Yes, sorry.

3:05

Okay, very good.

3:06

Um so I'll I'll now turn the presentation over to Sean Eckert to lead us through tonight's presentation.

3:14

Uh good afternoon, Mr.

3:15

Mayor, members of council.

3:17

Always a pleasure to be here to uh assist with the Chesapeake Transportation System uh update.

3:23

Uh as Mr.

3:24

Sorry mentioned, we'll be reviewing results primarily from the fiscal year end of June thirtieth, twenty twenty-four.

3:31

Uh a few highlights for uh the results for that fiscal year.

3:36

Uh toll revenue on the Chesapeake Expressway was up just slightly from the prior year, while toll revenue on Dominion Boulevard increased by seven point eight percent.

3:48

Overall the system's uh revenue for the year was up by one point three million or three point seven percent from the prior year.

3:57

Operating expenses increased by thirteen point eight percent over the prior year, uh primarily due to uh some updates of contracts related to uh revenue collection from the toll facilities.

4:12

Uh so operating expenses were up but not up as much as was forecast, so that was favorable.

4:19

Um investment income is also increased significantly on CTS reserve funds in recent years for fiscal year twenty-four.

4:27

That investment income was four point eight million, which is a significant increase from where had it had been uh the years prior.

4:36

Um a few other key developments in July of 2024, uh the uh CTS toll revenue bonds or a portion of them were refinanced to lower interest rates, resulting in a savings of about two and a half million dollars per year for the next three years.

4:53

Uh we also had feedback from the credit rating agencies on the bond ratings.

5:00

Uh SP upgraded its credit rating on the CTS senior bonds to a double A minus.

5:05

Uh so at this time uh both SP and Fitch rate the bonds double A minus.

5:11

That's the first time those bonds have been rated that highly by both agencies uh in the past.

5:18

Uh just a little more detail on that bond refinancing.

5:21

Um again, that was accomplished last summer.

5:25

We refinanced 78, uh we issued 78 million of of bonds to refund the portion of the 2012 A bonds.

5:35

The resulting savings was a total of 7.8 million dollars in reduced future debt service that will primarily be realized by the system uh over the next three fiscal years at about two and a half million dollars per year for those three years, and then a very small amount of savings uh for the remaining uh life of the bonds through 2047.

5:58

I'm gonna turn it over to Dave Cunio now to talk through some of the uh the traffic trends on the system over the past year.

6:05

Thank you, Sean.

6:07

Um the next few slides just gonna walk through a bit of the details of the traffic and revenue performance.

6:15

And so this slide shows the monthly trends in in toll revenues, and what you could see on the top with the Chesapeake Expressway is there's a very pronounced seasonal profile of the revenue uh during the the peak summer where there's a higher toll rate for the peak summer weekends, toll revenues are are higher.

6:38

Um, and this this happens year over year.

6:41

Uh looking at the performance of fiscal year 24 versus the prior years, um it was pretty similar is as uh Sean had mentioned overall the expressway's revenue was slightly up year over year, uh, but for some of the the months, and and you could see uh for example in in June, the blue line, which was fiscal year 2023, was was slightly above uh fiscal year 2024.

7:08

I'll get into the peak weekend a little bit more later.

7:12

Uh so the performance of the expressway and its seasonality um it differs from Dominion Boulevard, which is is pretty stable and consistent throughout the year.

7:24

Um you could see those levels um generally uh consistent through the year.

7:30

What you could see looking at fiscal year 2024 is that for 11 of the 12 months it was higher than the prior year, and that's reflecting the fact that toll rates increase every year by 5%, leading to an increase in traffic, give or take a little bit if if sorry, increase in revenue, give or take if if traffic trends are a little different.

7:54

So on the next slide, uh this looks in greater depth at the uh Chesapeake Expressway and the peak summer weekend trends.

8:05

And so what this shows is sort of weekend by weekend, how the revenues compared, uh blue from this summer of 2023 and green for the summer of 2024.

8:20

Um and you could see there's some fluctuation weekend to weekend, gets influenced uh you know by weather and and some other events.

8:30

But in overall, when you look at the numbers along the bottom, you could see that the summer of 2024 uh had revenues that were um you know almost 5% lower than the prior summer.

8:44

And this follows a trend uh where the the highest revenue for those peak we summer weekends was in um the summer of 2021, which was really right at the height of during COVID when people were going to the outer banks.

9:02

It was uh you know, a good uh vacation spot, um keeping social distance, and so uh there's been a bit of a just sort of trending back to normal uh that's happened with the peak weekend traffic, and that's also um we're seeing the effect that of the peak weekend traffic, there's a greater share of the traffic that's paying by the discount, which the expressway has uh a discount program that uh people can enroll in, and it provides a substantial discount to their toll rate.

9:36

And so that is also influencing a bit of the the revenue collections during those peak summer weekends.

9:45

Um we really want to try to demonstrate that the Chesapeake Expressway though is still uh uh uh performing the objective for which it was uh constructed, um, and that is to provide the the route for the traffic increases that happened on those peak summer weekends.

10:06

And so what the slide shows is on the left uh the daily traffic levels in March, and on the right in August, and the the lines uh start with the orange for the expressway, the blue is Battlefield Boulevard right parallel to the the toll plaza on the expressway, and then that yellowish, which which adds them together.

10:31

And when you compare the two months, you could see that in the summer weekends in August where the traffic levels really spike up, that spike is is primarily being using the expressway.

10:48

So the expressway is serving that uh added increase in traffic that we get during the peak summer weekends, whereas the the weekdays are pretty similar in the traffic on the expressway and battlefield uh throughout both both months.

Discussion Breakdown — Share of Meeting
Procedural███████████████████████████████████████39%
Pending Litigation████████████████16%
Public Safety████████████12%
Transportation Safety███████7%
Budget Equity Analysis███████7%
Public Engagement███3%
Planning And Development██2%
Fiscal Sustainability██2%
Animal Welfare██2%
Summary of Proceedings

Chesapeake City Council Meeting and Work Session - April 8, 2025

The Chesapeake City Council held a work session from 4:30 p.m. to 5:42 p.m. followed by a regular meeting beginning at 6:30 p.m. on April 8, 2025, in City Hall Council Chamber. The work session covered the Chesapeake Transportation System financial update and enhanced public safety budget priorities. The regular meeting featured a public hearing on the effective tax rate increase, approved a telecommunications franchise for Crown Castle, adopted a consent agenda containing routine items, passed several ordinances, heard public comments on city services, and concluded with nominations to the Planning Commission and a closed meeting. A notable action occurred when Council voted 8-1 to censure Council Member Ward for a closed session confidentiality breach.

Consent Calendar

  • Refund: Damuth Services Inc. – $19,697.84 approved.
  • Resignations: Cory Wolfe from the Stormwater Committee and Dr. Robert Schnarrs from the Chesapeake Hospital Authority accepted.
  • Grants accepted and transferred:
    • $2,056 from Virginia DMV for Selective Enforcement-Alcohol Grant (Police).
    • $104,000 from Virginia DCJS for Operation Ceasefire Grant (Police).
    • $15,035 from Virginia DCJS for Crisis Intervention/Marcus Alert Grant (Police).
  • Mutual Aid Agreements: Resolution authorizing the City Manager to enter into fire/EMS mutual aid agreements with Camden County, NC, and Elizabeth City, NC.
  • Budget Transfer: $343,163 transferred within the FY 2025 Parks, Recreation and Tourism operating budget to align salaries.
  • All consent items approved unanimously (9-0).

Public Comments & Testimony

  • Public Hearing – Effective Tax Rate Increase (Non-Planning Item A): Eight citizens spoke in opposition to any tax rate increase, emphasizing rising assessments, fixed incomes, and the burden on retirees and seniors. Speakers included Brennan Waters, Lee Damore, William Warren, Vic Nicholls, Donna Ivins, Jeff Morganthaler, Glennor Broderick, and Sallyanne Harris. No action was taken; the hearing was for input only.
  • Public Hearing – Crown Castle Franchise (Non-Planning Item B): Vic Nicholls spoke, raising concerns about transparency and the financial details of the franchise. The franchise was awarded unanimously.
  • Citizens’ Comments on Agenda Items Only: Vic Nicholls commented on the mutual aid agreements, Boards/Commissions nominations, and the Greenbrier Area Plan initiative.
  • Non-Agenda Speakers: Five citizens addressed the council:
    • Carolyn White (Pughsville Civic League): Discussed boundary disputes between Chesapeake and Suffolk, alleging gerrymandering and urging resolution.
    • Vic Nicholls: Called for transparent budget data and opposed an indoor gun range in favor of youth programs.
    • Julie Prosper (Chesapeake Animal Services Advisory Board): Supported additional animal shelter staff, noting that over 900 animals were euthanized in 2024 due to staffing shortages.
    • Pamela Brandy (Pughsville Civic League): Raised issues about drainage projects, boundary mapping, and Dominion Energy tax district errors on her bill.
    • Tommy Hart (self): Detailed a lengthy grievance about police and FBI mishandling of a murder investigation, claiming delayed response and false accusations.

Discussion Items

  • Work Session – Chesapeake Transportation System Financial Update:
    • Toll revenue on the Chesapeake Expressway was up slightly; Dominion Boulevard revenue increased 7.8%. Overall system revenue rose $1.3 million (3.7%) for FY ending June 30, 2024.
    • Operating expenses increased 13.8% primarily due to toll collection contract updates.
    • Investment income reached $4.8 million.
    • Bond refinancing in July 2024 saved approximately $2.5 million per year for three years; S&P and Fitch upgraded CTS senior bonds to AA-.
    • The Toll Facilities Advisory Committee recommended no unscheduled toll rate adjustments; the next Expressway peak weekend increase is scheduled for May 2026.
    • Council discussed a vetoed state bill that would have provided secondary road improvement funding.
  • Work Session – Enhanced Public Safety Budget:
    • The City Manager presented prioritized public safety needs:
      • Priority A (cost ~$4.9 million): Second set of structural firefighting gear for all members, five animal service staff, Rescue 15 staffing, water tanker trucks, police technology enhancements, and Medic 11 staffing.
      • Priority B (cost ~$3.8 million): Fire EMS data analyst, Station 4 replacement debt service, Station 14 replacement, and Fifth Precinct replacement debt service.
    • Unfunded future public safety needs totaling over $134 million were noted.
    • Council members requested additional items for consideration: study for a sportsplex, summer youth work program, victim witness grant funding, Great Bridge Battlefield & Waterways Museum operating support, and a conference center financial breakdown.
    • Funding options presented:
      • Option A: Use $500,000 existing budget capacity.
      • Option B: Increase real estate tax 2¢, redirect 8¢ from mosquito control to public safety (~$10M/year).
      • Option C: Increase real estate tax 2¢, reduce personal property tax 8¢ (~$7.4M/year).
      • Option D: No tax rate changes, redirect 8¢ from mosquito control (~$2.5M/year) plus budget capacity.
      • Option E: Redirect utility project funding from TIFF to utility enterprise.
      • Option F: Enhanced revenue enforcement by Commissioner of Revenue.
    • Council directed staff to refine options and return April 15 for a straw poll.
  • Regular Meeting – Crown Castle Telecommunications Franchise: Approved unanimously for a 20-year term with a 20-year renewal option; limited to a route from the Public Safety Operations Center to Campostella Road and South Military Highway.
  • Regular Meeting – Solid Waste Penalty Change (Item 6): Ordinance changing penalty for weed and debris violations from criminal to civil, approved 9-0.
  • Regular Meeting – Arbitrage Rebate Payment (Item 7): $2.6 million from Debt Service Fund restricted balance to pay rebate liability for 2020 Series A & B bonds, approved 9-0.
  • Regular Meeting – Auxiliary Grant Program (Item 8): Accepted $117,821 in state grant funds and transferred $29,455 from General Fund contingency to Social Services, both approved 9-0. 8A was approved as an emergency.
  • Unfinished Business: Council Member Ritter requested staff explore converting additional code violations from criminal to civil penalties (e.g., agricultural setbacks). Council Member Newins suggested developing guidelines for when criminal penalties are appropriate. Ritter also called for a deep dive on solid waste and recycling financial impacts.
  • New Business – Greenbrier Area Plan (Item A): Initiating resolution approved 9-0 to refer to Planning Commission for consideration of amendments to the 2035 Comprehensive Plan to incorporate the Greenbrier Area Plan and Design Guidelines (approx. 12 square miles).
  • Pughsville Boundary Discussion: City Attorney and City Manager reported progress in negotiations with Suffolk, with a tentative agreed boundary line to be presented at a future work session, followed by public hearings and court approval.

Key Outcomes

  • Consent Agenda and all Regular Agenda items approved unanimously (9-0).
  • Telecommunications franchise awarded to Crown Castle (9-0).
  • Planning Commission interviews set for April 15, 2025, at 4:00 p.m. for nominees Clayton Spruill (nominated by Council Member King) and Thomas Retnauer (nominated by Council Member Smith) to fill an unexpired term ending December 31, 2025.
  • Greenbrier Area Plan initiating resolution approved (9-0).
  • Closed Meeting convened at 8:02 p.m., reconvened at 9:38 p.m. for four statutorily authorized purposes (litigation, property acquisition, economic development, board appointments).
  • Motion to censure Council Member Ward for breaching closed session confidentiality passed 8-1.
  • Budget discussion continues: Staff will present funding options and cost estimates for additional council requests at the April 15 work session; budget adoption scheduled for May.
  • Council Member Ritter requested an agenda item to oppose Dominion Energy's cost recovery request before the State Corporation Commission.
  • Council discussed South Norfolk road resurfacing delays due to concurrent utility work; staff assured that roads will be repaired after utility projects are completed.

Meeting Transcript

Thank you, Ms. Mayor. Two items for your consideration uh and discussion tonight. Uh first is uh the annual update from Chesapeake Transportation System, and I'll be turning that um item over to uh Mr. Sorry to introduce the team and then second we'll continue the discussion on the enhanced uh public safety budget. So uh turn it over to public works director sorry. Uh thank you, Mr. Manager. Uh good evening, Mayor, uh Vice Mayor and members of the council. It's a pleasure to be here tonight to give you an update on the Chesapeake Transportation System operating results for fiscal year ending June thirtieth, twenty twenty four. Uh we have our city team uh here with us uh tonight, so uh led by Belinda Malone, our CTS administrator. Uh we're also joined by uh our consulting team uh to my right is Sean Eckert, managing director of Raymond James uh Financial to the far right, and then beside me is Dave Cunho, director of traffic and revenue forecast. We're having a hard time. It sounds a little muffled. Maybe if you get a little bit closer to the mic, maybe is this better. Yes, sorry. Okay, very good. Um so I'll I'll now turn the presentation over to Sean Eckert to lead us through tonight's presentation. Uh good afternoon, Mr. Mayor, members of council. Always a pleasure to be here to uh assist with the Chesapeake Transportation System uh update. Uh as Mr. Sorry mentioned, we'll be reviewing results primarily from the fiscal year end of June thirtieth, twenty twenty-four. Uh a few highlights for uh the results for that fiscal year. Uh toll revenue on the Chesapeake Expressway was up just slightly from the prior year, while toll revenue on Dominion Boulevard increased by seven point eight percent. Overall the system's uh revenue for the year was up by one point three million or three point seven percent from the prior year. Operating expenses increased by thirteen point eight percent over the prior year, uh primarily due to uh some updates of contracts related to uh revenue collection from the toll facilities. Uh so operating expenses were up but not up as much as was forecast, so that was favorable. Um investment income is also increased significantly on CTS reserve funds in recent years for fiscal year twenty-four. That investment income was four point eight million, which is a significant increase from where had it had been uh the years prior. Um a few other key developments in July of 2024, uh the uh CTS toll revenue bonds or a portion of them were refinanced to lower interest rates, resulting in a savings of about two and a half million dollars per year for the next three years. Uh we also had feedback from the credit rating agencies on the bond ratings. Uh SP upgraded its credit rating on the CTS senior bonds to a double A minus. Uh so at this time uh both SP and Fitch rate the bonds double A minus. That's the first time those bonds have been rated that highly by both agencies uh in the past. Uh just a little more detail on that bond refinancing. Um again, that was accomplished last summer. We refinanced 78, uh we issued 78 million of of bonds to refund the portion of the 2012 A bonds. The resulting savings was a total of 7.8 million dollars in reduced future debt service that will primarily be realized by the system uh over the next three fiscal years at about two and a half million dollars per year for those three years, and then a very small amount of savings uh for the remaining uh life of the bonds through 2047. I'm gonna turn it over to Dave Cunio now to talk through some of the uh the traffic trends on the system over the past year. Thank you, Sean. Um the next few slides just gonna walk through a bit of the details of the traffic and revenue performance. And so this slide shows the monthly trends in in toll revenues, and what you could see on the top with the Chesapeake Expressway is there's a very pronounced seasonal profile of the revenue uh during the the peak summer where there's a higher toll rate for the peak summer weekends, toll revenues are are higher. Um, and this this happens year over year. Uh looking at the performance of fiscal year 24 versus the prior years, um it was pretty similar is as uh Sean had mentioned overall the expressway's revenue was slightly up year over year, uh, but for some of the the months, and and you could see uh for example in in June, the blue line, which was fiscal year 2023, was was slightly above uh fiscal year 2024. I'll get into the peak weekend a little bit more later. Uh so the performance of the expressway and its seasonality um it differs from Dominion Boulevard, which is is pretty stable and consistent throughout the year. Um you could see those levels um generally uh consistent through the year. What you could see looking at fiscal year 2024 is that for 11 of the 12 months it was higher than the prior year, and that's reflecting the fact that toll rates increase every year by 5%, leading to an increase in traffic, give or take a little bit if if sorry, increase in revenue, give or take if if traffic trends are a little different. So on the next slide, uh this looks in greater depth at the uh Chesapeake Expressway and the peak summer weekend trends.

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