City Council

AGENDA-CITY COUNCIL--CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:30 p.m. regular session Tuesday, July 24, 2012 Invocation – Council Member Mark Stroud Pledge to the American Flag 1. Consider approval of Council meeting minutes of May 8, 2012. (2 mins.) 2. Recognition of city staff for receiving the Certificate of Achievement for Excellence in Financial Reporting for the City of Martinsville by the Government Finance Officers Association of the United States and Canada (GFOA) for its FY2011 Comprehensive Annual Finance Report. (5 mins.) 3. Hear an update on the Martinsville High School renovation project. (20 mins.) 4. Hear a discussion of options concerning studying reversion. (20 mins.) 5. Hear a report on possible future options for the Henry Hotel. (20 mins.) 6. Discussion of schedule and locations FY13 City Council Neighborhood meetings. (10 mins.) 7. Consider approval of consent agenda. (2 mins.) A. Accept & appropriate budget adjustments. 8. Business from the Floor This section of the Council meeting provides citizens the opportunity to discuss matters that are not listed on the printed agenda. Since the Council meetings are broadcast on Martinsville Government Television, the City Council is responsible for the content of the programming. Thus, any person wishing to bring a matter to Council’s attention under this Section of the agenda should: (1) come to the podium, state name and address; (2) state the matter they wish to discuss and Council action requested; (3) limit remarks to five minutes; (4) refrain from making any personal references or accusations of a factually false and/or malicious nature. Persons who violate these guidelines will be ruled out of order by the presiding officer and asked to leave the podium. Persons who refuse to comply with the direction of the presiding officer may be removed from the chambers. 9. Comments by members of City Council. (5 minutes) 10. Comments by City Manager. (5 minutes) 11. Items to be considered in Closed Session, in accordance with the Code of Virginia, Title 2.2, Chapter 37—Freedom of Information Act, Section 2.2-3711(A)—Closed Meetings, the following: A. A personnel matter as authorized by Subsection 1.  City Council Agenda Summary Meeting Date: July 24, 2012 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes of City Council May 8, 2012 meeting. Summary: None Attachments: May 8, 2012 minutes Recommendations: Motion to approve minutes as presented May 8, 2012 The regular meeting of the Council of the City of Martinsville, Virginia, was held on May 8, 2012, in Council Chambers, Municipal Building, at 7:30 PM, Closed Session beginning at 7:00PM, with Mayor Kim Adkins presiding. Council Members present included: Mayor Kim Adkins, Vice Mayor Kimble Reynolds, Mark Stroud and Danny Turner. Gene Teague was absent. Staff present included: Leon Towarnicki, Interim City Manager, Brenda Prillaman, Eric Monday, Linda Conover, and Dennis Bowles. Mayor Adkins called the meeting to order and advised Council will go into Closed Session. In accordance with Section 2.1-344 (A) of the Code of Virginia (1950, and as amended) and upon a motion by Danny Turner, seconded by Kimble Reynolds, with the following 4-0 recorded vote: Adkins, aye; Reynolds, aye; Stroud, aye; and Turner, aye, (Teague-absent) Council convened in Closed Session, for the purpose of discussing the following matters: (A) A prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facilities in the community as authorized by Subsection 5, (B) Appointments to boards and commissions as authorized by Subsection 1. At the conclusion of Closed Session, each returning member of Council certified that (1) only public business matters exempt from open meeting requirements were discussed in said Closed Session; and (2) only those business matters identified in the motion convening the Closed Session were heard, discussed, or considered during Session. On a motion by Kimble Reynolds, seconded by Mark Stroud, with the following recorded 4-0 vote: Adkins, aye; Reynolds, aye; Stroud, aye; and Turner, aye, Council returned to Open Session. Action taken: On a motion by Kimble Reynolds, seconded by Danny Turner, Council re- appointed Jennifer Gregory, 1528 Mulberry Rd., to a four-year term on the Planning Commission ending 6/30/16. Following the invocation by Mayor Kim Adkins and Pledge to the American Flag, the Mayor welcomed everyone to the meeting and noted adjustments to the agenda that the Westside report will be postponed to a later agenda and there will be no closed session at the end of the meeting. Minutes: On a motion by Mark Stroud, seconded by Kimble Reynolds, Council approved the minutes of the March 27, 2012 meeting. Recognitions: Mayor Adkins presented a proclamation recognizing Public Service Recognition Week 2012. Setting public hearing for school board appointments: On a motion by Kimble Reynolds, seconded by Mark Stroud, with a 4-0 vote, Council agreed to set the public hearing for May 22, 2012 for the purpose of receiving/interviewing citizens interested in appointments for two 3-year positions beginning July 1, 2012 and ending June 30, 2015 to the City’s School Board. Electric Projects update: Utilities Director Dennis Bowles presented information on the Prairie State Project in response to questions as well as information regarding the AMP Iberdrola Renewables Blue Creek Wind project for Council’s consideration. After discussion, Council agreed that the Blue Creek Wind Project be placed on the May 22, 2012 agenda for further consideration and an AMP representative will be asked to attend that meeting to provide more information. May 8, 2012 PART bus funding commitment: Leon Towarnicki presented the following information: the Piedmont Area Regional Transit system has been in operation in Martinsville and Henry County since January 2009. PART is funded by federal, state, and local money, and Martinsville-Henry County’s share of the funding was $22,742 (each) in FY12 as part of an overall budget of about $220,000. However, funding from the Commonwealth’s Department of Rail and Public Transportation for FY 2013 is being reduced. Taking into consideration the reduction in State funding and other PART budget adjustments, the projected local funding for FY13 is $64,440 to be split equally ($32,220 each) between Henry County and Martinsville. DRPT has requested a letter from the City indicating a commitment of local funding for FY13. Ridership numbers have increased significantly. On a motion by Kimble Reynolds, seconded by Mark Stroud, with a 4-0 vote, Council approved city funding FY13 for PART. There was discussion as to the company approaching businesses to contribute funding that are benefitting from the bus traffic and that will be presented to RADAR. Resolution regarding Line of Duty: Leon Towarnicki presented the following information: During a review of the City’s insurance program for liability, workers’ compensation, property loss, and Line of Duty Act coverage, quotes for coverage were obtained and VACoRP was determined to be the best option for the City. In order to change providers and to include the recently required Line of Duty Act coverage, it ise necessary for Council to adopt a resolution opting out of coverage automatically provided through the Virginia Retirement System and to adopt a resolution to join the Virginia Association of Counties Self- Insurance Risk Pool. The second resolution also authorizes the City Manager to execute such agreements as may be necessary for workers’ compensation and LODA coverage. In its 2010 session, the Virginia General Assembly established a new Line of Duty Act Fund with VRS as the investment manager. Localities that have eligible hazardous duty professionals on a paid or voluntary basis may choose to May 8, 2012 participate in this fund or choose to self-fund. Due to the proposed increases from the VRS plan, staff recommends the City opt-out of the VRS fund and join VACoRP to self-fund claims at significant cost savings. On a motion by Kimble Reynolds, seconded by Mark Stroud, with a 4-0 vote, Council adopted the two resolutions and authorized the City Manager to execute the necessary documents. Update on addressing littering issues: Leon Towarnicki briefed Council on procedures in the city to handle litter issues and introduced Liz Stanley of Gateway Streetscape Foundation. Ms. Stanley reported on numerous projects underway to assist in cleaning up the community and grants being pursued to assist in getting cameras. After Council discussion, Council asked that the City Attorney re- draft the city littering ordinance making it a Class I misdemeanor for Council’s consideration at a future meeting. Consent agenda: On a motion by Kimble Reynolds, seconded by Mark Stroud, with a 4-0 vote, Council approved the following consent agenda: BUDGET ADDITIONS FOR 5/08/12 ORG OBJECT DESCRIPTION DEBIT CREDIT FY12 General Fund: 01102926 436443 Federal Grant - ARRA - Efficiency Retrofit Grant -65,858 01431162 508220 City Hall Maintenance/Physical Plant Expansion -65,858 Correction from previous month - Grant Reimb. 1101917 442402 Categorical Other State - Confiscated Assets - C Atty 163 1221082 506105 Comm Atty - Conf Assets State 163 1101917 442401 Categorical Other State - Confiscated Assets - Police 471 1311085 506078 Police Dept - Conf Assets State 471 appropriation of state asset forfeitures 01100909 490801 Recovered Costs - Senior Citizens 1,604 01714212 501300 Senior Citizens - Part-time Wages 1,056 01714212 502100 Senior Citizens - Social Security 66 01714212 502110 Senior citizens - Medicare 15 01714212 506049 Senior Citizens - Vehicle Fuel 467 Transportation Grant & Class Fees 01100908 480420 Donations - Senior Citizens 850 01714212 506016 Senior Citizens - Program Supplies 850 Health Fair Donations Total General Fund: -62,770 -62,770 May 8, 2012 Capital Reserve Fund: 16102926 436443 Federal Grant - ARRA - Efficiency Retrofit Grant 65,858 16577367 508140 City Hall Maintenance/Physical Plant Expansion 65,858 Energy Efficiency Grant Reimbursement 16102926 436443 Federal Grant - ARRA - Efficiency Retrofit Grant 334,142 16577367 508140 City Hall Maintenance/Physical Plant Expansion 334,142 Energy Efficiency Grant Reimbursement Total Capital Reserve Fund: 400,000 400,000 Refuse Fund 09100909 490104 Recovered Costs 8,750 09425302 503140 Landfill - Professional Services - Engineering 8,750 HC share of Solid Waste Management Plan Cost Total Electric Fund: 8,750 8,750 Electric Fund 14102926 436440 Federal Grant - ARRA - Energy Efficiency Grant 143,545 14565340 503140 Electric - General Exp. - Prof. Serv.-Eng & Arch 143,545 Hydro Plant Efficiency Grant Reimbursement Total Electric Fund: 143,545 143,545 Business from floor: Ural Harris, 217 Stuart St.-budget comments; Tiffani Lory, 816 Mulberry- asked that Council not rezone Spruce St.; Eric Monday, Mulberry-announced that VA Living Magazine named Carlisle School the best private school in southwest VA. There being no further business, the meeting adjourned at 9.25 pm. _______________________________ __________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor  City Council Agenda Summary Meeting Date: July 24, 2012 Item No: 2. Department: City Manager Issue: Recognition of city staff for receiving the Certificate of Achievement for Excellence in Financial Reporting for the City of Martinsville by the Government Finance Officers Association of the United States and Canada (GFOA) for its FY2011 Comprehensive Annual Financial Report. Summary: The Certificate is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The CAFR has been judged by an impartial panel to meet the high standards of the program including demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and user groups to read the CAFR. This achievement was attained through the collective efforts of the Finance Department staff, the full cooperation of other city departments and our auditing firm, Robinson, Farmer & Cox. The GFOA is a nonprofit professional association serving approximately 17,000 government finance professionals. Attachments: None Recommendations: Formal recognition of the Finance Department Staff and present the award to staff in attendance. Linda Conover Kathy Dodson Lisa Holiday Mary Kay Washington  City Council Agenda Summary Meeting Date: July 24, 2012 Item No: 3. Department: City Manager Issue: Hear an update on the Martinsville High School renovation project. Summary: At the Martinsville School Board’s meeting on June 28th, a contract was awarded to Blair Construction of Gretna, Virginia for the high school renovation project. Due to higher than anticipated bids, it was necessary to make revisions to the project scope to reduce cost. An update on the project will be presented at the meeting. Attachments: None Recommendations: None/no action required. Presentation is for information purposes only.  City Council Agenda Summary Date: July 24, 2012 Item No: 4. Department: City Attorney, City Manager Issue: Hear a discussion of options concerning studying reversion. Summary: A discussion of the process and studies required by law before municipal reversion may be considered will be presented at your meeting. Attachments: none Recommended Action: Set date for public comment concerning the possibility of proceeding with studies.  City Council Agenda Summary Date: July 24, 2012 Item No: 5. Department: City Attorney, City Manager Issue: Hear a report on possible future options for the Henry Hotel Summary: The City purchased the Henry Hotel at foreclosure auction. Redevelopment of the property has yet to occur and the City must consider its options moving forward. Attachments: Memorandum Recommended Action: Discuss and consider next steps. Staff recommendations are contained in the Memorandum. MEMORANDUM TO: Honorable Mayor Adkins and Members of Council FROM: City Attorney, City Manager RE: Henry Hotel DATE: July 18, 2012 The City purchased the Henry Hotel, a 1920s structure which had been subsidized housing since the 1980s, in 2009. The City purchased the building, with the majority of funding being loaned by the Harvest Foundation, because a community development corporation did not exist. Negotiations with the Harvest Foundation at that time agreed that a CDC would be the appropriate entity to own the building, but since one did not exist at that time, the City would hold title, to be transferred once the CDC came into existence. Phoenix CDC was formed in 2010 and has yet to accept title to the Henry Hotel. The Hotel was acquired out of foreclosure proceedings. The reason for the acquisition was that the Henry, one of the largest and most prominently located structures in Uptown Martinsville, was an essential building to have rehabilitated as part of any revitalization of uptown Martinsville. It was also believed that the primary use of the building at that time—subsidized housing—was not compatible with the revitalization plan for Uptown. Acquisition by the City (or CDC) would ensure that the Henry would be redeveloped in a manner compatible with the vision for Uptown. Since that time, that City has maintained the building at an approximate annual cost of $55,000.00, and the Phoenix CDC, while studying the issue of rehabilitation, has been unsuccessful in formulating any viable plans. The options for the Henry hotel are: 1. Renegotiation of existing leases. Both current leases for two businesses (insurance office and restaurant) on the main floor are currently month-to-month. These leases could be renegotiated to better reflect and offset the current costs to operate the building. At present the refrigerators in the restaurant require upgrades, and the building’s roof is in need of repair. Any significant increase in rent could negatively impact these two existing businesses. 2. Mothballing the building. If the two tenants vacate, utility services could be essentially shut down or minimized. The building’s roof will still require attention. 3. Demolition of the building. 4. Listing for sale on the open real estate market. The sale could be subject to restrictive covenants to ensure future redevelopment of the building is consistent with Uptown revitalization efforts.  5. City actively seeking a private developer, with or without City partnering, to redevelop the building using all available incentives, including historic tax credits. 6. Further discussion of transferring title to the Phoenix CDC. The Harvest Foundation is a necessary party to these discussions. City staff believes that actually holding title to the building would provide a greater incentive to Phoenix to redevelop the property. Staff recommends: (1), proceeding either in whole or in part to (2), if either or both tenants vacate. (3) is not recommended. Staff also recommends that (4) , (5) and (6) be undertaken immediately, with (4) and (5) to be discontinued if (6) comes to fruition. (6) is the preferred result.  City Council Agenda Summary Meeting Date: July 24, 2012 Item No: 6. Department: City Manager Issue: Discussion of schedule and location FY13 City Council Neighborhood Meetings Summary: Neighborhood Focus Meetings have been held for several years giving citizens the opportunity to voice concerns to Council about issues in their neighborhoods. During the past fiscal year, following a 5:30 pm neighborhood tour on the second Monday, the Neighborhood Council meeting was held at 7:30 pm on the same Monday. During the past fiscal year (FY12) , neighborhood meeting were as follows: Druid Hills/Uptown –September at Forest Hills Presbyterian Church Southside area-November at Wesley Mem. Methodist Church Northside/Chatham Heights-February at Clearview Wesleyan Church Westside-April at Albert Harris School If Council desires, staff will make contacts to firm up locations in these areas for the Council meetings in September, November, February, and April as was done in the past year. Attachments: None Recommendations: Direct staff to coordinate meetings and locations.  City Council Agenda Summary Meeting Date: July 24, 2012 Item No: 7. Department: Finance Issue: Consider approval of consent agenda. Summary: The attachments amend the FY12 Budgets with appropriations in the following funds: FY12: General Fund: $5,345 – Seizure Funds & Grants Water Fund: $19,642 – Grant Reimbursement Attachments: Consent Agenda 7-24-12.xls Recommendations: Motion to approve consent agenda.  BUDGET ADDITIONS FOR 7/24/12 ORG OBJECT DESCRIPTION DEBIT CREDIT FY12 General Fund: 01102926 436401 Federal Confiscated Assets - Police Dept. 124 01311085 506079 Police Dept. - Federal Asset Forfeitures 124 appropriate seizure funds 01101917 442701 Categorical Other State - Fire Programs Fund 5,221 01321102 506110 Fire Dept. - State Grant - Fire Programs 5,221 Grant funds Total General Fund: 5,345 5,345 Water Fund: 12101918 443306 Grants - State - WSAG Lanier Rd Project 19,642 12541311 508220 Water - Physical Plant Expansion 19,642 Grant Reimbursement Total Water Fund: 19,642 19,642