City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00 pm CLOSED SESSION 7:30 pm regular session Tuesday, January 14, 2014 7:00--Closed Session 1. 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 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. C. Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. D. A personnel matter as authorized by Subsection 1. 7:30—Regular Session Invocation & Pledge to the American Flag-Mayor Kim Adkins 1. Consider approval of minutes of October 22, 2013, November 12, 2013, November 18, 2013. (2 mins) 2. Recognition of outgoing Martinsville City Commonwealth Attorney, Joan Ziglar. (5 mins) 3. Hear update from Eric Deaton, Market President for LifePoint’s South Central VA market. (10 mins) 4. Hear update from Robbin Hall-West Piedmont Business Development Center. (10 mins) 5. Hear update from Lisa Fultz-Workforce Investment Board. (10 mins) 6. Hear update from M-HC Economic Development Corporation. (10 mins) 7. Consider setting public hearing for special use permit for 1006 Independence Drive on a recommendation from Planning Commission. (5 mins) 8. Consider approval of updated prioritized list of projects for the 2014 Regional Comprehensive Economic Development Strategy Update (CEDS) and authorize staff to provide the information to the West Piedmont Planning District Commission. (10 mins) 9. Consider schedule for FY15 budget process. (3 mins) 10. Consider approval of consent agenda. (Part A and Part B) (5 mins) A. Finance appropriations B. Commissioner of Revenue Tax Refunds 11. Business from the Floor This section of the Council meeting provides citizens the opportunity to discuss matters, which are not listed on the printed agenda. In that 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 and state name and address; (2) state the matter that they wish to discuss and what action they would like for Council to take; (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 will be asked to leave the podium. Persons who refuse to comply with the direction of the presiding officer may be removed from the chambers. 12. Comments by members of City Council. (5 mins) 13. Comments by City Manager. (5 mins)  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes of City Council meetings October 22, 2013, November 12, 2013, and November 18, 2013. Summary: None Attachments: October 22, 2013 minutes November 12, 2013 minutes November 18, 2013 minutes Recommendations: Motion to approve minutes as presented October 22, 2013 The regular meeting of the Council of the City of Martinsville, Virginia, was held on October 22, 2013, 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 Gene Teague, Mark Stroud, Danny Turner and Sharon Brooks Hodge. Staff present included: Leon Towarnicki, City Manager, Brenda Prillaman, Linda Conover, Eric Monday, Eddie Cassady, Ted Anderson, Jeff Joyce, and Mike Scaffidi. 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 Sharon Brooks Hodge, seconded by Gene Teague, with the following 5-0 recorded vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye, Turner, aye, Council convened in Closed Session, for the purpose of discussing the following matters: (A) Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. (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 Mark Stroud, seconded by Sharon Brooks Hodge, with the following recorded 5-0 vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye; Turner, aye, Council returned to Open Session. Board appointment action taken: (1) A motion was made by Gene Teague, seconded by Danny Turner, with a 5-0 vote, to appoint Smith Chaney, 55 General Longstreet Court, to a 4 year unexpired term on the Transportation Safety Commission ending 12/31/14. (2) A motion was made by Mark Stroud, seconded by Sharon Brooks Hodge, with a 5-0 vote, to appoint the following three persons to the Board of Zoning Appeals: Cristy Geneva Reynolds, 731 Craig St.-5 year unexpired term ending 9/12/15; Page Brockenbrough, 907 Clarke Rd.-5 year full term ending 9/26/18; Michael Allen Hendricks, P. O. Box 3266, Martinsville-5 year unexpired term ending 9/22/14. Following the invocation by Mayor Kim Adkins and Pledge to the American Flag, the Mayor welcomed everyone to the meeting. The Mayor recognized Boy Scout Sam Dickerson who was present working toward his Eagle Scout badge. The Mayor announced that information will be running on the MGTV screen during the televised meeting with a number to to call VEC Manager directly for jobs information. Proclamation-Domestic Violence Awareness Month: Mayor Adkins presented the proclamation to representatives of Citizens Against Family Violence. Property Maintenance Staff Update: Ted Anderson and Andy Powers presented the following information regarding the property maintenance process and staffing: Process Timeline Summary Consequences of Current Staffing Backlog October 22, 2013 Comparisons Possible Backyard Process Going Forward-Recent Issues Martinsville Henry County Radford Danville Population 15,416 54,151 16,408 43,055 Square Miles 12 382 9.5 43.9 PM/Nuisance ½ 0 2 Rental 3 Pm 2 Rent Inspectors 2 Nuisance PM Code Yes No Yes (rental) Yes Nuisance Ord. Yes Not by Yes Yes inspections Full Time Atty. No Yes Yes 2 (3?) Staff Recommendations PM Inspections 60 0 231 1800 Nuisance Insp. 587 0 3 3,809 Backyards No No No Yes (no warrants) Proactive No No Yes (rental) Yes Council discussion: potential for shifting some of the responsibilities to other departments; continued interest in developing a backyard policy and possibly declaring properties as public nuisance; process streamlining may require redistributing duties to other staff; asked for updates on average time in resolving complaints at Council Neighborhood meetings; Council asked the City Manager to take the recommendations and do some analysis and bring back recommendation to Council. Due to the lateness of the hour, the Mayor asked for Business From the Floor comments before going forward with remainder of agenda. Comments from Business From the Floor: Shelby Wyatt-expressed her concerns regarding the recent injury to her son at a Martinsville Middle School football game. Mayor Adkins reported Council will hear an update from school officials on this issue at the November 12 Council meeting. Telecommunications Staff Update: Director of Telecommunications Department, Mike Scaffidi, presented the following update: 60 $250,000.00 Current customer base 50 $200,000.00 40 $150,000.00 30 GROSS Custome NET $100,000.00 20 10 $50,000.00 0 $0.00 2009 2010 2011 2012 2009 2010 2011 2012 y CUSTOMER BASE Government savings-cost comparison Obstacles x Sixteen Customers in Waiting y City Telephone Ports y BACKBONE - FIBER BUILD x Three Existing Customers Awaiting Upgrades Ń 432 Phone and Data ports x $15,120.00 - CLEC Customary Charge Ń Time Consuming x Goal 20 New Customers by Calendar January 2015 x Per month per port (without special features) Ń Expensive x $ 2,484.00 - Monthly MINet Operation Cost x Per month per port (includes all features) x Contract Labor y PROJECTED INCOME x Lack of Specialized Equipment y School Telephone Ports x January 2014 y RESOURCES (future) x Exceed $230,000.00 Gross Income Ń 247 Phone and Data ports x $8,645.00 - CLEC Customary Charge Ń Sales Executive x January 2015 x Per month per port (without special features) Ń Construction Crew x Exceed $300,000.00 Gross Income x $ 1,420.00 - Monthly MINet Operation Cost x Per month per port (includes all features) October 22, 2013 Refuse Staff Update: Jeff Joyce, Public Works Director, presented the following update on the Refuse Fund for first quarter FY14: y Residential and commercial solid waste collection y Bulk trash and brush collection programs The City provides refuse collection for approximately Recyclables are collected and marketed from the y 8 yard container rental program 6,000 residential customers and approximately 135 following operations. y Post closure care of the closed landfill commercial customers. The program includes rental of 8 y Drop-off collection center on Market Street y Recycling and reuse program yard collection containers and bulk/brush collection y Bulk trash collection program y Power generation from landfill gas at the closed programs. The refuse fund also includes the post closure y Office and mixed paper collected from City offices. landfill care and maintenance of the closed landfill as required y Metal cans collected from the Jail and school by VDEQ regulations. cafeterias. y Wood waste collected by various City departments y Surplus and waste materials from the City Shop and Power Generation from LFG Generator Garage. y Christmas trees collected and ground into mulch Other items such as milled asphalt and broken concrete are reused by the Public Works, Water Resources, and Parks & Recreation departments. Council comments: Turner-welcomed race fans to the community; Stroud-encouraged blood donations and bone marrow donations and wishes for good racing weather this week; Hodge-appreciated work done on property maintenance report and urged use of the data to improve the system. City Manager comments: Mr. Towarnicki reported on VML award received for Depot Street project and thanked city staff members who worked on this project; reported statistics on PART bus ridership noting that this service is definitely meeting a need as seen in the increase in ridership. There being no further business, the meeting adjourned at 9:45 pm. _______________________________ __________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor November 12, 2013 The regular meeting of the Council of the City of Martinsville, Virginia, was held on November 12, 2013, 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 Gene Teague, Mark Stroud, Danny Turner and Sharon Brooks Hodge. Staff present included: Leon Towarnicki, City Manager, Brenda Prillaman, Linda Conover, Eric Monday, Eddie Cassady, and Chris Morris. 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 Gene Teague, seconded by Mark Stroud, with the following 5-0 recorded vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye, Turner, aye, 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) Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. 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 Sharon Brooks Hodge, seconded by Mark Stroud, with the following recorded 5-0 vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye; Turner, aye, Council returned to Open Session. Action taken: A motion was made by Gene Teague, seconded by Sharon Brooks Hodge, with a 5-0 vote, to authorize the City Manager to execute the following covenant with the New College Foundation regarding the DHCD funds for development of Baldwin Block: November 12, 2013 Following the invocation by Mayor Kim Adkins and Pledge to the American Flag, the Mayor welcomed everyone to the meeting. She introduced Mr. Chris Collins from Senator Kaine’s office who gave a brief update on Commonwealth Crossing noting that the Senator supports the project and wants it to move forward. Mayor Adkins also noted that a banner giving information on jobs through the VEC will be scrolling on the MGTV screen throughout the meeting. Minutes: On a motion by Mark Stroud, seconded by Danny Turner, with a 5-0 vote, Council approved the minutes of the September 10, 2013 meeting. City Schools update on providing emergency medical serve at school athletic events: Chairman of Martinsville City School Board, Robert Williams, reported on current EMS services at school athletic functions and noted the schools will continue to evaluate procedures for appropriate responses. Council asked that the City Manager and School Superintendent further discuss options and costs for providing emergency medical care. Resolution approval regarding Uptown Paving Project: On a motion by Gene Teague, seconded by Danny Turner, with a 4-1 vote (Hodge voting nay), Council approved the required resolution for the Uptown Paving Project-Phase 1-Revenue Sharing Agreement with VDOT FY15: November 12, 2013 Council Member Hodge explained her nay vote was because taxpayers deserve to have their streets paved in their neighborhoods. Adoption of VDOT Six Year Improvement Program FY15-FY20: City Manager Leon Towarnicki briefed Council on the formal list of street construction priorities required annually for inclusion on VDOT’s Six-Year Improvement Program noting that previously, the City had designated repairs to the Commonwealth Boulevard Bridge as its top priority, with construction of the remaining leg of Liberty Street from Clearview Drive south to Commonwealth Boulevard as its second priority, followed by work along Fayette Street from Pine Hall Road west to the Norfolk and Western Railroad underpass. On a motion by Gene Teague, seconded by Mark Stroud, with a 5-0 vote, Council approved the following list for FY15-FY20: 1.Reconstruction of the Commonwealth Boulevard Bridge over the Norfolk Southern Railway, Structure #1803. 2.Complete the remaining leg of the Liberty Street (Route 174) improvement project consisting of improvements to Liberty Street from Clearview Drive south to Commonwealth Boulevard; Specific Projects as identified in the 2035 Rural Long-Range Transportation Plan VA 174 from North York Street to North Longview Street Short-term widen to five lanes. CURRENTLY UNDER CONSTRUCTION 3.Widen and realign the section of Fayette Street (Route 57) from Pine Hall Road west to the Norfolk and Western Railroad underpass including curb, gutter, and sidewalk. Also, as a second phase, replace the Norfolk and Western Railroad underpass and widen and realign the section of Fayette Street (Route 57) from the Norfolk and Western Railroad underpass to the corporate limits including curb, gutter, and sidewalk. Specific Projects as identified in the 2035 Rural Long-Range Transportation Plan Fayette Street under Norfolk Southern Railroad Long-term widen to four lane facility and replace underpass. Specific Project as identified in the 2020 Martinsville-Henry County Small Area Urban Transportation Plan Fayette Street under Norfolk Southern Railroad Long-term widen to four lane facility and replace underpass. 4.Endorsement for the Interstate 73 project. Specific Projects as identified in the 2035 Rural Long-Range Transportation Plan I-73 from North Carolina State Limit to Franklin County Limit (Henry County) Long-term construct new facility, four lanes with median. Priority 1-Completion of I-73 from the Patriot Centre to the North Carolina State Limit. Priority 2- Completion of I-73 from the Patriot Centre to the Franklin County Limit. I-73 from VA 40 to VA 635 (Franklin County) Priority 3- Long-term construction new facility, four lanes with median. 5.Endorsement for completion of U.S. Route 58 westward to its intersection with Interstate 77. Specific Projects as identified in the 2035 Rural Long-Range Transportation Plan US 58 / US 220 at bridge over Smith River Mid-term replace westbound direction with two lane structure. US 58 West at VA 684 (Carver Road) Mid-term implement access management to clearly define access points to gas station along US 58 and VA 684. Continue to monitor intersection for impact of rumble strips along westbound approach. Consider signalization, when warranted, to provide gaps for Carver Rd and Friendly Church Rd traffic. Long-term lower roadway profile of westbound approach. US 58 from Floyd County Limit to VA 600 (Patrick County) Long-term widen to four lanes with median. US 58 from East US 58 Bypass to West US 58 Business (Patrick County) Long-term widen to four lanes with median. US 58 Business at US 58 Bypass (Jeb Stuart Bypass) (Patrick County) Short-term relocate stop control on southbound approach of the connector road from US 58 Bypass to US 58 Business (Jeb Stuart Highway). Long-term reconstruct intersection to improve connectivity. US 58 from West Ramps Blue Ridge Parkway to East US 58 Bypass (Patrick County) Long-term widen to four lanes with median. November 12, 2013 Finance Report: Finance Director Linda Conover gave the following finance report which was approved on a motion by Gene Teague, seconded by Sharon Brooks Hodge, with a 5-0 vote: FY13 – Year End Revenues & Expenditures; Combined Balance Sheet; Projected Fund Balance With the final audit review about 99% complete, FY13 is all but officially closed. The attached reports reflect these figures, which are not expected to change. Exclusive of School and Special Revenue funds, actual revenues were $58,965,447, representing 98.3% of the receipts anticipated of $59,957,500. Included in those receipts, Local Sales/Use Taxes received from the Commonwealth were $1,886,892.41, which was 99.4% of what was anticipated during the FY14 budget process. Utility Fund revenue receipts averaged 97.5% of anticipated amounts for the year. At year’s end, actual expenditures were $64,390,585, representing 93.3% of amounts anticipated during the FY14 budget process. This occurred due in part to lower fuel costs and incomplete projects. These projects should be completed with re-appropriated funds as proposed this evening. At the end of FY13 total combined fund balance is $21,126,274 a decrease from FY12 of $5,646,236. The unassigned Fund Balance is $3,939,301 for non-utility funds and $10,467,030 for utility funds, for a total of $14,406,331. Adjusted for proposed re-appropriations not already designated as non-spendable, restricted, committed or assigned, unassigned non-utility funds are $3,049,036, and utility funds are $10,354,118. All City funds in the Central Depository Account at June 30th were $15,989,344.26. Staff report on cash reserve policies: Finance Director Linda Conover briefed Council on the recommended Cash Reserve Policies for Electric, Water and Sewer Funds. To help ensure financial stability, timely completion of capital improvements, and enable the utilities to meet requirements for large unexpected expenditures, a minimum cash reserve policy should be established. While minimum cash reserves attempt to quantify the minimum amount of cash the utility should keep in reserve, the actual cash reserves may vary substantially above the minimum and is dependent upon several risk factors for the utility. Cash reserve policies and guidelines are established to ensure that enough cash exists for timely payment of bills; both short- and long-term financial health of the individual utilities; stable rates for customers; ability to fund unanticipated cost contingencies; and identifying the amount and timing of future bond issues. Adopting a cash reserve policy meets a significant factor for bond rating agencies. After discussion, Council asked that Cash Reserve Policies be prepared for the Refuse Fund and MINET Fund for Council consideration in order for Council to have a Comprehensive Fund Balance and Cash Reserve Policy in place going into budget preparations. Consent Agenda: On a motion by Gene Teague, seconded by Mark Stroud, with a 5-0 vote, Council approved the FY14 Budget with re-appropriation of FY13 funds and the regular monthly FY14 consent agenda: November 12, 2013 BUDGET ADDITIONS FOR 11/12/13 FY14 General Fund: 01101918 443403 State Grants - Local Emer Mngmt Program Grant 7,500 01334122 506131 Safety - LEMP Grant Supplies 7,500 Local Emergency Management Program Grant 01100908 480420 Misc. Revenue - Donations-Sr. Citizens 100 01714212 506016 Senior Citizens - Program Supplies 100 Donation for Holiday Tea Program 01100909 490801 Recovered Costs - Senior Citizens 3,023 01714212 501300 Senior Citizens - Part-time Wages 1,944 01714212 502100 Senior Citizens - Social Security 120 01714212 502110 Senior Citizens - Medicare 28 01714212 506049 Senior Citizens - Vehicle Fuels 931 Transportation Grant - July through September 01101918 443312 4,360 01311085 506082 Police Dept - Byrne/JAG Grant Expenses 4,360 Grant funds 01101917 442810 Categorical Other - State - Highway Projects 155,206 01413151 508220 Thorofare Construction - Physical Plant Expansion 155,206 November 12, 2013 Reimbursement-Liberty St Project 01101918 443156 State Grants - VDEQ - Environmental Assessments 15,300 01812242 503143 Miscellaneous Expense - Environmental Evaluations 15,300 Brownfield Restoration - VBAF-12 01100909 490104 Advance/Recovered Costs 7,792 01812245 506833 Uptown Master Plan - Supplies-North Lawn 7,792 Reinvestment of gateway refund 1101917 442402 Categorical Other State - Confiscated Assets - C Atty 138 1221082 506105 Comm Atty - Conf Assets State 138 1101917 442401 Categorical Other State - Confiscated Assets - Police 399 1311085 506078 Police Dept - Conf Assets State 399 Asset Forfeiture Proceeds Total General Fund: 193,818 193,818 School Federal Grants Fund: 20102926 401038 Title I 1,047,796 86011100 561120 Instructional S&W 316,776 86011100 561151 Instructional S&W Aides 180,900 86011100 562100 Social Security 38,072 86011100 562210 Retirement 63,553 86011100 562300 Insurance 67,402 86011100 562400 Life Insurance 5,922 86011100 562520 Disability 592 86011100 563000 Purchased Services 147,010 86011100 565503 Travel 50,000 86011100 566013 Materials & Supplies 141,384 86012160 561120 Admin S &W 27,234 86012160 562100 Social Security 2,083 86012160 562210 Retirement 3,478 86012160 562300 Insurance 3,044 86012160 562400 Life Insurance 324 86012160 562520 Disability 21 20102926 436738 Title IIA 120,654 86111100 561120 Instructional S & W 43,599 86111100 562100 Social Security 3,335 86111100 562210 Retirement 5,568 86111100 562400 Life Insurance 519 86111100 563000 Purchased Services 62,560 86111100 562300 Health Insurance 5,074 20102926 436583 Title III 10,349 86311100 563000 Purchased Services 800 86311100 565503 Travel 1,298 86311100 566013 Materials & Supplies 8,251 20102926 435838 Title VI Rural Ed 40,027 86411310 561120 Instructional S & W 20,000 86411310 562150 Social Security 1,586 86411310 563000 Purchased Services 18,441 20102926 417338 Title VIB IDEA Pre School 5,702 86611100 561120 Instructional S&W 5,000 86611100 562100 Social Security 310 86611100 562150 Medicare 73 86611100 566013 Materials & Supplies 319 20102926 402738 Title VIB Flow Through 500,131 86511100 561120 Instructional S&W 147,307 86511100 561151 Instructional S&W Aides 209,176 86511100 562100 Social Security 22,102 86511100 562150 Medicare 5,169 86511100 562210 Retirement 41,566 86511100 562300 Insurance 40,592 86511100 562400 Life Insurance 4,242 86511100 562520 Disability 452 86511100 562750 retirement Credit 3,957 86511100 563140 Purchased Services 19,000 86511100 565503 Travel 1,000 86511100 566013 Materials & Supplies 5,568 20102926 428738 21st Century Community Learning 160,000 86901100 563000 Purchased Services 130,880 86901100 565503 Travel 10,580 86901100 565240 Communications 1,200 86901100 566000 Supplies 17,340 Total School Federal Grants Fund: 1,884,659 1,884,659 School Fund: 18102926 404838 Perkins Voc Ed 54,180 73101100 563000 Purchased Services 1,000 November 12, 2013 73101100 565503 Travel 11,000 73101100 566000 Materials 42,180 Total School Fund: 54,180 54,180 Discussion of 2014 Legislative Agenda: Council reviewed the previous year’s City Legislative Agenda and discussed additions and deletions. City Attoirney Eric Monday will prepare a draft with Council’s suggestions from tonight’s meeting for final approval at the November 26, 2013 Council meeting. Business from the Floor: Ronnie Durand, 106 Sherwood Place, expressed concerns about billing procedures in Commission of Revenue’s office regarding property he owns. Chad Martin thanked Council for their follow up on the concerns with Mrs. White’s issues. Council comments: Teague-condolences to Brock family; Stroud-reported he served on committee for VA Department of Emergency Services. City Manager comments: Mr. Towarnicki commended the Fire Department Honor Guard for their professionalism during services for the late Chief Jerry Brock There being no further business, the meeting adjourned at 9:10 pm. _______________________________ __________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor November 18, 2013 A special called meeting of the Council of the City of Martinsville, Virginia, was held on November 18, 2013, in Council Chambers, Municipal Building, Closed Session beginning at 3:00PM, and regular session scheduled at 7:00PM, with Mayor Kim Adkins presiding. Council Members present included: Mayor Kim Adkins, Vice Mayor Gene Teague, Mark Stroud, Danny Turner and Sharon Brooks Hodge. Staff present included: Leon Towarnicki, City Manager, Brenda Prillaman, Linda Conover, Eric Monday, and Eddie Cassady. 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 Sharon Brooks Hodge, with the following 5-0 recorded vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye, Turner, aye, Council convened in Closed Session, for the purpose of discussing the following matter: (A) Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. 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 Gene Teague, seconded by Mark Stroud, with the following recorded 5-0 vote: Adkins, aye; Teague, aye; Stroud, aye; and Hodge, aye; Turner, aye, Council returned to Open Session for regular session at 7:09pm. The Mayor welcomed everyone to the meeting and reported there will be no public comment period at this meeting, but a reversion public comment session will be scheduled for the next meeting. She also noted that all reversion documents will be posted on the city website and will be available for public viewing at the public library as well as in the City Manager’s office. Reversion presentation: City Manager Leon Towarnicki presented the following information: The cost to provide services for the citizens of A feasibility study for the consolidation of Martinsville continues to increase, while revenue does Martinsville City and Henry County School Divisions not. Balancing the budget requires use of fund An evaluation of the prospective financial impact of balance, increasing rates and fees, or significant the City of Martinsville’s transition to town status reductions in service (or combinations of all 3). Financial forecast for the period FY2014 to FY2019 Continued use of fund balance to balance the annual budget is unsustainable. for the City of Martinsville Reversion allows the possibility of consolidation of certain like services (schools and constitutional functions) with those currently provided by Henry County. The study identifies financial benefits related to a Cost savings resulting from a reduction of 11.5 consolidated school system coming from two main administrative positions areas – personnel (reduction of positions and pay Financial impact of merging 2 different pay scales – scale changes) and application of the Local there is an approximate 4% difference between City Composite Index (LCI). The LCI determines a school and County School pay scales (City is approximately division’s ability to pay education costs fundamental 4% lower). to the State’s Standards of Quality, which in turn The City of Martinsville has a lower LCI than Henry determines the level of State aid for local County. Under the State’s Consolidation Incentive Program Legislation, the lower index may be used to education. determine state aid of a consolidated system for a period from 5 to 15 years after consolidation. November 18, 2013 Combination Combination Combination Combination Combination Combination 1 2 3 4 5 6 Combinations of costs/cost savings that generate City to HC City to HC Median Pay Median Pay HC to City HC to City the largest amounts are likely to be the most Pay Scale Pay Scale Scale Scale Pay Scale Pay Scale controversial. ($431,527) ($431,527) $466,466 $466,466 $1,501,335 $1,501,335 Full Use of Use of Full Use of Use of Full Use of Use of Potential additional costs savings could come from Mart LCI Median LCI Mart LCI Median LCI Mart LCI Median LCI integrating transportation services, operation and $1,230,197 $612,686 $1,230,197 $612,686 $1,230,197 $612,686 maintenance, school nutrition, fiscal affairs, and Reduction of Reduction of Reduction of Reduction of Reduction of Reduction of Positions Positions Positions Positions Positions Positions others. $1,035,000 $1,035,000 $1,035,000 $1,035,000 $1,035,000 $1,035,000 Estimated Estimated Estimated Estimated Estimated Estimated Savings Savings Savings Savings Savings Savings $1,833,670 $1,216,159 $2,731,663 $2,064,152 $3,766,532 $3,149,021 In comparison to the City of Martinsville, the Town of The County of Henry would experience an increase Martinsville would experience a substantial reduction in revenues of approximately $26 million and an in operational expenses of approximately $28 increase in expenditures of approximately $27.3 million. million. To generate revenues to balance with operational Services shifted to Henry County are primarily those expenses, Town property tax rates could be of the Constitutional Offices (Sheriff, CA, Courts, proportionately reduced substantially compared to COR, and Treasurer) and Schools. current City levels, resulting in a reduction of approximately $28 million in revenues from property taxes and other local, state, and federal funds. Net gain in State school aid of $1.2 million from the As with the revenue analysis, as a general matter Davis School Study is included the amounts of City expenditures no longer Generally, the amounts of “City revenues” no longer performed by the Town but performed by the associated with a Town offered service have been County have been recognized on a dollar for dollar recognized in the study on a dollar for dollar basis basis as new expenses of the County. as new revenues of the County Staff and related expenses for all Constitutional Opportunities for School-related savings of offices are expected to transfer to the County. (Two approximately $600,000 noted by the Davis positions from the office of the COR whose transfer School Study are recognized. is not supported by State Compensation Board The Town of Martinsville would expend analysis are anticipated to be retained within the approximately $28 million less than the City of structure of the Town’s finance operations.) Martinsville Town will need to retain Treasurer-related functions The County of Henry is expected to expend since collections (utilities, taxes, etc.) will continue, approximately $27.3 million more after the possibly as a function of the Finance Department transition Calculations from the study show that assessing tax No estimates have been made regarding additional rates at approximately 7.4% of the City’s current office space that might be needed by the County rate for each class of taxable property will yield for employees, in particular Constitutional revenues sufficient, with other expected revenues, to employees. “balance” and “break even” with prospective expenditures. Also possible - there could be efficiencies and cost savings in the provision of County services to Town No estimates have been made with respect to the cost, if any, for transfer or use of general capital residents by elimination of certain positions or other facilities such as the jail or courthouse that might be expenditures. needed by the County November 18, 2013 In a transition from City to Town status, For a “break even” budget with revenues balancing Constitutional functions and City Schools becomes a expenditures, Town residents could see a reduction function of the County in property taxes while also realizing an increase in revenue available for a variety of Town projects, The Town of Martinsville would realize a decrease programs, and infrastructure improvements, as per in both revenue and expenses of approximately Council’s discretion. $28 million Other current City services such as Police, Fire, The County of Henry is expected to experience a Utilities, Public Works, Finance, General revenue increase of approximately $26 million, and Administration, etc. continue since these services will expenditures of approximately $27.3 million remain as a function of the Town. The Town can annex, whereas the City cannot. Should be noted the forecasts are for planning 1- Maintain status quo, tax rate remains revenue purposes and are not to be regarded as neutral, does not include capital or new debt, and accountant’s opinions of the present or future fully depletes fund balance (Table 5) financial position of the City. The forecasts are 2 - Maintains status quo but does not deplete fund based upon trends and assumptions, and their balance – maintains 10% cash balance margin validity depends upon the outcomes of future (approx $8M), does not include capital (Table 6) events. Modification will become necessary as City 3 - Includes capital funding and maintains 10% growth and development progresses, or if there are changes in market or other economic conditions. cash balance margin (Table 7) Projects of a fixed nature with a long service life. The schedule is reviewed annually and subject to Currently programming consists of arranging the modification – projects may be added, deleted, or projects in a time series schedule of anticipated rescheduled. implementation. Schedule is reviewed in light of 3 The total capital program during the planning major considerations: The City’s Comprehensive period (FY14 through FY18) contemplates capital Plan and City’s Goals & Initiatives; Considerations expenditures totaling $15.4 million. FY14 of the public health, safety, and general welfare of contemplated $3.55 million in capital expenditures. the City’s citizens, and the City’s fiscal capabilities FY2014 budget was used as the base year. The 5 years (2008 to 2012) of data for forecast forecast was prepared by applying prospective factors (Table 2) were used. annual rates of change to the detailed sources of Revenues are anticipated to remain approximately City revenue and objects of expenditure. constant at $71.3 million for the forecast period, No significant changes in revenue are anticipated. FY2014 through FY2019. No significant changes in expenditures are anticipated (other than normal increases). Expenditures are forecasted to grow from $75.5 There are no unanticipated non-recurring costs. million (FY14) to $78.2 million (forecasted FY19). New capital projects and any new debt service are not included nor is existing debt service beyond the budget year. Given the related parameters, revenue, and Maintains cash balance to meet operational and expense projections, the $17 million fund balance is minimum cash requirements (10%) forecast to be depleted by sometime in FY2018. Financial Forecast for the period FY2014 through This forecast is based upon past trends and their FY2019 – to continue to fund operations exclusive validity depends upon the outcome of future events. of funding the capital program, the real estate tax The forecast is not to be regarded as the would need to increase incrementally from the accountant’s opinions of the present or future current $1.06/$100 of assessed value, to financial position of the City. $2.03/$100 in FY2019. Summary is highlighted in Table 5 Summary is highlighted in Table 6 November 18, 2013 Factors that could influence the rate change includes Using the same analysis and including costs related controlling and reducing City expenditure patterns to funding the City’s Capital Improvement Program, and/or programs. the real estate tax would need to increase Enhancing revenues attributable to City growth and incrementally from the current $1.06/$100 of development assessed value, to $2.11/$100 in FY2016, and Rate and fee increases for services rendered remain above $2/$100 through FY2019. Other tax rate adjustments. Summary is highlighted in Table 7 School consolidation is feasible and operation of a Voluntary settlement of reversion issues – consolidated system could result in savings over two negotiated settlement separately-operated systems. City transition to Town would result in shifting Constitutional Office functions and Schools to Henry County. Other “urban” services such as Police, Fire, and Utilities continues as Town functions. Town residents could pay less in taxes. Maintaining current City status will eventually result in service reductions, rate/fee increases, or combinations of both. Supplemental studies, additional information needed, Court petition is filed within 6 months of COLG clarifications, seek public comment/input report If decision to proceed, prepare supporting materials Three-judge court is appointed by Supreme Court for COLG proceedings, decisions regarding proposed terms & conditions of town status Court ruling in approximately 6 to 9 months Council resolution and supporting materials are filed Appeal to Supreme Court with COLG City can terminate process at any point up to 21 COLG conducts hearing, examines evidence, examines days after the court ruling. and cross-examines witnesses COLG files report of conclusions and findings If decision is made not to proceed, staff and Council will utilize the study materials to the fullest extent possible as the FY15 and subsequent year budgets are developed. Revisit Goals & Initiatives to ensure compatibility with City’s financial plan. Council decided to hold two public input sessions at the next two Council meetings on November 26, 2013 and December 10, 2013. Council Member Hodge questioned effects of reversion on voting districts. Vice Mayor Teague asked that the City Attorney give an overview at the next meeting of the legal steps to be taken if Council decides to go forward. There being no further business, the meeting adjourned at 7:55 pm. _______________________________ __________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 2. Department: City Council Issue: Recognition of outgoing City Commonwealth’s Attorney, Joan Ziglar. Summary: City Council will recognize outgoing City Commonwealth’s Attorney, Joan Ziglar, for her service to the City of Martinsville and the community. Attachments: none Recommendations: Presentation only.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 3. Department: City Council Issue: Hear update from Eric Deaton, Market President for LifePoint’s South Central Virginia market. Summary: Eric Deaton, Market President for LifePoint’s South Central Virginia market, will present an update on the recently formed South Central Market. This market includes Memorial Hospital of Martinsville and Henry County and Danville Regional Medical Center. Eric would like to share LifePoint’s vision for the market as well as highlight some of the great things going on at MHMHC. Prior to becoming Market President, Eric served as CEO of DRMC. He came to Danville as CEO in 2010 after leading Wythe County Community Hospital in Wytheville, VA and prior to that he was the CEO of Coastal Carolina Medical Center in Hardeeville, SC. Eric is known for his expertise in recruiting physicians and for collaborating with internal teams as well as community teams to improve the health and wellness of all in the community. Eric received his B.S. in Business Administration from Milligan College in Milligan, TN and his MBA from Bristol College in Bristol, TN. Attachments: none Recommendations: for information only.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 4. Department: City Council Issue: Hear update from West Piedmont Business Development Center. Summary: Robbin Hall will be present to give this update. Attachments: none Recommendations: for information only.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 5. Department: City Council Issue: Hear update from Workforce Investment Board. Summary: Lisa Fultz will be present to give this update. Attachments: none Recommendations: for information only.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 6. Department: City Council Issue: Hear update from Martinsville-Henry County Economic Development Corporation. Summary: Mark Heath will be present to give this update. Attachments: none Recommendations: for information only.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 7. Department: Community Development Issue: Consider setting a public hearing on a recommendation from the Martinsville Planning Commission for a special use permit for property located at 1006 Independence Drive, also known on the City’s Tax Map as 46(06)00/48X. Summary: The Planning Commission conducted a public hearing on November 21, 2013 on a request from Sharon Martin to approve a special use permit to operate a home child care, caring for up to twelve (12) children, as a home occupation. The Planning Commission voted to recommend to City Council that the special use permit be granted. Attachments: Letter of Recommendation from the Planning Commission. Recommendations: City Council set a public hearing for February 11, 2014 for consideration of this request with advertisement of public hearing for two weeks prior to public hearing.  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 8. Department: Community Development Issue: Consider approval of the updated City’s prioritized list of projects to be included in the Year 2014 Regional Comprehensive Economic Development Strategy and authorize the City Manager to provide this information to the U.S. Department of Commerce Economic Development Administration. Summary: The first step will be for all localities to begin planning and compiling their list of prioritized projects. A listing of the regional projects for the current CEDS (2013) is attached to prepare the list for next year (April 1, 2014- March 31, 2015). Due to the potential for projects that may be eligible for any additional federal economic development funding, our local projects list needs to be as comprehensive as possible. Council was provided with a complete copy of the regional projects list at the December 10, 2013 meeting for review and to give feedback to Community Development for any amendments to the Martinsville section. Attachments: Letter to U.S. Department of Commerce EDA Regional Project List 2013-2014 Recommendations: Motion to approve the Martinsville projects list section of the regional CEDS list with any staff and any Council amendments and to authorize the City Manager to provide this information to the U. S. Department of Commerce Economic Development Administration.  January 14, 2014 Mr. Willie C. Taylor, Regional Director U.S. Department of Commerce Economic Development Administration Philadelphia Regional Office The Curtis Center, Suite 140 South Independence Square West Philadelphia, PA. 19106 Dear Mr. Taylor: Whereas the local governing body of the City of Martinsville supports the West Piedmont Development District Designation, this is to advise that we have elected to be covered by the Year 2014 Comprehensive Economic Development Strategy for the West Piedmont Planning District in its capacity as an EDA Economic Development District. The projects included in the document’s prioritized project list have been endorsed by the local governing body at its meeting on January 14, 2014 for assistance in improving the economy of our area. On behalf of my community, thank you for the opportunity to participate in the Economic Development Administration’s Economic Development District Program. Sincerely, Leon Towarnicki City Manager cc: Aaron S. Burdick, WPPDC  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 9. Department: City Manager Issue: Consider a schedule for the FY15 budget process Summary: Staff has developed a schedule for the FY15 budget review process, a copy of which is attached. Attachments: FY15 budget preparation, presentation, and review process. Recommendations: None – presented for information purposes only.  FY15 BUDGET TIMELINE* ********************************************************** Monday, January 6th 5-year Capital Improvements Plan Due By Wed., January 22nd 5-year Capital Budget Review by Capital Committee Monday, February 3rd Line Item Budget Due: Revenues, Expenses, MBE Forms Monday, February 10th - Departmental Reviews Friday, February 21st Late Feb. to early March City Manager & Staff to review and complete revenue forecasts By Wed., March 26th Completed Draft Budget for staff review Week of April 7th City Manager presents Budget to Council April & May Budget Work Sessions Mid-May to Early June Budget Adoption by Council ********************************************************** *This schedule is subject to change.  City Council Agenda Summary Meeting Date: Jan. 14, 2014 Item No: 10-A Department: Finance Issue: Consider approval of consent agenda-Part A Summary: The attachments amend the FY14 Budget with appropriations in the following funds: FY14: General Fund: $1,019,072 – Reimbursements Capital Reserve Fund: $3,238 – Proceeds from Sales of Surplus Attachments: Spreadsheet Recommendations: Motion to approve appropriations as outlined.  BUDGET ADDITIONS FOR 1/08/2014 ORG OBJECT DESCRIPTION DEBIT CREDIT FY14 General Fund: 01101917 442810 Categorical Other - State - Highway Projects 1,019,072 01413151 508220 Thorofare Construction - Physical Plant Expansion 1,019,072 Reimbursement-Liberty St Project Total General Fund: 1,019,072 1,019,072 Capital Reserve Fund: 16100905 416209 Sale of Surplus Equipment 3,238 16572362 508127 Tools/Equipment - Park Maintenance 3,238 GovDeals sales of old mowing equipment Total Capital Reserve Fund: 3,238 3,238  City Council Agenda Summary Meeting Date: January 14, 2014 Item No: 10-B Department: Commissioner of Revenue Issue: Consider approval of consent agenda-Part B. Summary: Adjustment paperwork was submitted by the Commissioner of the Revenue office to the Treasurer on December 31, 2013. Because these adjustments were made to estimated assessments, which have subsequently been verified, the refund is not subject to interest calculation pursuant to City Ordinance 11-23(f) provided the refund is made within 30 days of the adjustment. (1) Consideration of amending the FY 2014 General Fund Budget and appropriating $4,726.21 to refund overpayment by Piedmont Diagnostic Radiology of business license taxes for license year 2009. (2) Consideration of amending the FY 2014 General Fund Budget and appropriating $6,237.72 to refund overpayment by Solid Stone Fabrics LLC of business license taxes for license years 2012 and 2013. Attachments: None Recommendations: Motion to approve two tax refunds as outlined.