City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00 pm Closed Session 7:30 pm regular session Tuesday, September 22, 2015 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. Appointments to boards and commissions as authorized by Subsection 1. b. Discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body, as authorized in Subsection 3. 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. 7:30—Regular Session Invocation & Pledge to the American Flag- Vice Mayor Jennifer Bowles 1. Consider approval of minutes from September 8, 2015 Council meeting (2 mins) 2. Hear overview of September 21, 2015 Druid Hills/Uptown area Neighborhood tour and meeting (10 mins) 3. Recognition of Kris Bridges, Deputy Building Official awarded the 2015 Virginia Building and Code Officials Association Award (5 mins) 4. Present a Proclamation honoring the Garden Club of Virginia, recognizing the Martinsville Garden Club, and proclaiming Thursday, October 15, 2015 as “Garden Club of Virginia Day” in Henry County and the City of Martinsville (5 mins) 5. Consider adoption of a Resolution designating October as Virginia Artisan Month and October 2-11, 2015 as American Craft Week (5 mins) 6. Presentation of Proclamation recognizing October, 2015 as Domestic Violence Awareness Month (5 mins) 7. Hear update from 911 Center Director, J.R. Powell on the CodeRed Alert System (15 mins) 8. Hear a report prepared by Davenport & Company, LLC. Regarding an analysis of the City’s debt/debt capacity (10 mins) 9. Consider authorizing & execution of agreement on Water Meter replacement project and to seek financing options (15 mins) 10. Hear finance report (15 mins) 11. Consider approval of consent agenda. (5 mins) A. Re-appropriations for FY16 B. Health Department Re-appropriation 12. 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. 13. Comments by members of City Council. (5 minutes) 14. Comments by City Manager. (5 minutes)  City Council Agenda Summary Meeting Date: September 22, 2015 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes September 8, 2015 Council meeting. Summary: None Attachments: September 8, 2015 meeting Recommendations: Motion to approve minutes as presented. September 8, 2015 The regular meeting of the Council of the City of Martinsville, Virginia was held on September 8, 2015 in Council Chambers, Municipal Building at 7:30pm, Closed Session beginning at 7:00pm with Mayor Danny Turner presiding. Council members present: Mayor Danny Turner, Vice Mayor Jennifer Bowles, Council Member Gene Teague, Council Member Sharon Hodge and Council Member Mark Stroud. Staff members present included: City Manager Leon Towarnicki, City Attorney Eric Monday, Clerk of Council Karen Roberts, Superintendent of Water Resources Andy Lash, Police Chief Sean Dunn, Assistant City Manager Wayne Knox, Sheriff Steve Draper, Public Works Director Jeff Joyce, and Major Laura Hopkins. Mayor Turner called the meeting to order and advised Council would go into Closed Session. In accordance with Section 2.1-344 (A) of the Code of Virginia (1950, and as amended) and upon motion by Council Member Teague, seconded by Council Member Hodge with the following recorded 5-0 roll-call vote: Council Member Hodge, aye; Vice Mayor Bowles, aye; Council Member Stroud, aye; Council Member Teague, aye; Mayor 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. At the conclusion of the Closed Session, each returning member of Council certified that (1) only public business matters exempt from opening 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 the Session. On a motion by Vice Mayor Bowles and seconded by Council Member Stroud with the following 5-0 roll-call recorded vote: Stroud, aye; Turner, aye; Teague, aye; Bowles, aye; Hodge, aye; Council returned to Open Session. Invocation and Pledge to the American Flag –Council Member Gene Teague. Approval of minutes from August 25, 2015 Council meeting - On a motion by Council Member Teague, seconded by Council Member Hodge, with a 5-0 vote, Council approved the minutes of the August 25, 2015 meeting. Consider adoption of a Council Resolution requesting reimbursement from the Virginia Department of Corrections of a share of costs related to certain projects at the City Jail facility Addendum – Sheriff Draper updated Council on projects including the emergency generator power project to the jail which is complete, the September 8, 2015 study on jail space, and the security system upgrade. Council Member Teague made a motion to adopt the Resolution requesting reimbursement for project costs from the Virginia Department of Corrections; Vice Mayor Bowles seconded the motion, all Council Members voted in favor to adopt the resolution. Sheriff Draper also showed Council Members an article in the Law and Order magazine recognizing the Martinsville City Sheriff’s Department for winning the car design contest. Consider approval of a 5-year extension to the transfer station contract the City has with First Piedmont Corporation- City Manager Towarnicki described the current contract including the tipping fees and provisions that allowed the tipping fee to be modified on an annual basis. At $60 per ton, the City began to look at other options including recycling, and had discussions with Rockingham County about their landfill along with Pittsylvania & Franklin Counties. After those discussions, First Piedmont was able to lower the tipping rate. With the renewal of the contract and the lower tipping fee, the City will save approximately $25,000 per year. Other options regarding wastewater sludge could also be more economically feasible. Waste to September 8, 2015 energy was $60 per ton with guaranteed tonnage but the City could not guarantee that tonnage over the next five years and will discuss again in the future. Council Member Teague asked for confirmation that this will lock in the tipping fee and the operational fee for the next five years. Council Member Stroud commented that the current recycling program is handled very well and asked where we stand on the sludge press. Towarnicki explained that an investigation of processes was done and a viable option was identified but with every project like that there is a price. Jeff Joyce explained the details of the current contract provision, the changes in the new contract, additional changes including yearly rate adjustments, terms of the agreement and operating hours, reduced cost for disposal of municipal solid waste (MSW), and reduced cost for disposal of sludge. Vice Mayor Bowles made a motion to approve the 5 year contract beginning January 1, 2016, Council Member Stroud seconded the motion, all Council Members voted in favor. September 8, 2015 Hear an update on FY15 refuse collection and also general information on current policies and procedures – Jeff Joyce explained the refuse collection, dumpster rental and collection, bulk and brush pickup, and recycling programs. Mayor Turner stated that one of the problems he’s seen is that some uptown businesses will put their trash out at the end of the day on Saturday and it could get scattered before pick up the following Monday. City Manager Towarnicki explained that is partly due to cleaning services working in those businesses after hours but the Public Works department tries to identify those businesses and work with them to avoid this from happening. City Manager Towarnicki said that exceptions have been made to assist residents in extenuating circumstances such as storm cleanup or when a freezer full of food stops working. Mayor Turner suggested that residents contact the Sheriff’s Department if they have a fallen tree before contracting someone to clean up the wood; the Sheriff’s Department works with a program through Social Services for residents who burn wood for heat in the colder months. Mr. Joyce also explained the live Christmas tree pickup and bagged leaf collection in addition to the sweeper that does leaf and street cleanup. Code does not allow residents to burn piles of leaves or blow leaves or grass clippings into the street. Vice Mayor Bowles wanted to thank them for working with residents on the bulk trash pickup. Mayor Turner questioned if there was some way to keep animals out of trash. Mr. Joyce said code states that trash should be put out the morning of collection and if residents choose to leave trash out overnight then they should leave it in garbage cans with a lid to prevent animals from getting in the trash. City code also requires that trash cans should be removed from the curb by sundown and they are not allowed to be moved back to the curb until the next scheduled collection day. Council Member Stroud wanted to September 8, 2015 thank Public Works on the ADA curbing and paving on Cleveland Avenue; he stated that the jobs were handled well by all crews. City Manager Towarnicki stated that if it were not for inmate labor assisting the refuse crews, the City would probably need to hire 4-5 additional employees which would drive the costs up significantly. The inmates used on all work crews come through the jail annex and go through an elaborate screening process before they are allowed to assist the Public Work crews; these inmates are good people who made a mistake but they want to work and they work hard. Council Member Hodge expressed that she has mixed feelings and in her opinion the City is taking advantage of incarcerated people. Council Member Stroud responded that these workers volunteer for the work and are paid a nominal fee, he stated that if it weren’t for this work opportunity those inmates would be sitting idle. September 8, 2015 Consider approval of consent agenda – On a motion by Council Member Teague, seconded by Council Member Hodge, with a 5-0 vote, Council approved the following consent agenda: September 8, 2015 Business from the Floor – Patrick Wright, 1201 Spruce St – wanted to let Council know that he just returned from Myrtle Beach and when he’s more informed he would give his opinion. Ural Harris, 217 Stewart St – requested an explanation of AMP Ohio, an explanation of rates and why the contractor walked off the job. City Manager Towarnicki stated that there was an Electric Utility update due within the next month and it could be explained at that time. Comments by members of City Council – Council Member Stroud – sends his condolences to the Ward and Parker Families and those affected by the tragedy at Smith Mountain Lake. Council Member Hodge – recognized the West End Working Group which has become a non-profit organization and have started renovation on the first of two homes located on 508 and 610 Fayette Street that were donated to them. She thanked Mr. Knox for helping this organization and keeping them going. City Attorney Monday explained that there has been a change in taxation on non- marketable properties and he would discuss this with Assistant City Manager Knox. September 8, 2015 Council Member Teague – requested an update on the Planning Session schedule and the School Board meeting. Vice Mayor Bowles – would like to wish Council Member Teague a Happy Birthday. Mayor Turner – asked the City Manager to contact VHL and attempt to have Mel Cartwright, Sr. nominated back to the Hall of Fame. He suggested a memorial for Allison Parker in the Uptown area. He also announced that Tuesday is Nascar Day in Uptown Martinsville and will include a Nascar Chase Driver. Mayor Turner recognized Mamie Nunn of Barrows Mill Road and wished her a Happy 100th birthday. Comments by City Manager – Tuesday, September 15, 2015 is Nascar Day with a media question and answer event in Council Chambers with a Chase driver to be announced beginning at 3:00pm. A key to the City will be presented to the Chase Driver and a short parade will follow beginning around 3:30pm on Church Street. Speedway hotdogs and music will be provided at 37 East Main Street. Regarding strategic planning for FY17, budget numbers are being calculated and he is planning to have a joint session with the school board. Strategic planning over the summer has been difficult to plan with the facilitator’s schedule. Within the next two weeks, Council will be provided a summary of what was discussed at the previous strategic meeting. A Neighborhood Tour and Neighborhood Meeting will be held Monday, September 21 at Forest Hills Church beginning at 7:30pm. Outstanding Military Veteran Award nominations are being accepted and forms are available on the Martinsville City website, the Henry County website, the County Administrator’s office and in the City Manager’s office. The deadline for nominations is October 15, 2015 and the award will be presented Wednesday November 11, 2015 Presentation regarding a possible project involving replacement of City water and electric meters, and conversion of City street lighting to LED lighting – City Manager Towarnicki stated that last November and December Council was presented the possibility of meter replacement and street light replacement. Meetings have been held with Johnson Controls this past year about the possibility of these projects. Whit Blake of Johnson Controls shared a presentation explaining these projects including current challenges and project objectives of water and electric meter replacement. Johnson Controls has done studies of the current water meters. John Gunn confirmed that the older the meter and the increased amount of water September 8, 2015 that flows through it makes the meter more likely to be inaccurate, he stated that commercial meters are typically not as accurate as residential meters. Mr. Blake explained the advantages of the new proposed water meters for residential and commercial locations. Electric meters throughout the City are older and require manual reading; new meters would be more accurate and could be read digitally. Remote disconnect gives the Electric Department the option to disconnect the meter through the system without sending a worker to the residence or business. Mr. Blake continued by explaining the AMI-Flex Net system and how it could detect leakage and provide alarms that could signal hot sockets and possible meter tampering. All information would be stored on a server at City Hall and protected by firewalls. The meters could still be manually read when necessary. City Manager Towarnicki acknowledged that there is a high rate of meter tampering in the City; not only is this stealing from the City but this is a dangerous act. Mr. Blake explained a study which focuses on collectors mounted to water towers; readings would be transmitted by radio frequency then hardwired to transmit information back to the City server on an hourly basis. Mr. Blake explained the benefits of the Meter Data Management system (MDMS). An additional energy conservation issue he suggested was changing the street lights to LED, stoplights would not be affected. Savings for these projects will generate enough savings for a self-funding project. City Manager Towarnicki explained that the municipal building project included digital controls of heating and air, lighting updates to lower wattage has been completed and is doing exactly what it was projected to accomplish in terms of energy savings. Implementing these new meters would require fewer employees which would be included in cost savings. There is also the option where customers can see usage and information online with this new meter program. Mr. Blake shared the O&M savings, capital avoidance and the measurement and verification plan. Council Member Hodge questioned what would happen to the employees if the new system is implemented and asked if positions would be cut. City Manager Towarnicki explained that those employees would be moved to another vacant position if possible. Council Member Hodge asked for the life span of the smaller meters. Mr. Blake and Andy Lash stated that the residential meters would need to be replaced in approximately 20 years. This project brings additional benefits to the City and the residents, the implementation would be well planned and as seamless as possible, adding that there would be community meetings, press releases, door hangers, notification of water outage, etc. to keep September 8, 2015 residents informed. The process of changing the water meter would only take 5-10 minutes and the crews would not leave the location until water is flushed and back on. Council Member Hodge suggested that some residents may have concerns about the signals from the water tower transmitters. Mr. Blake explained that education, information and public relations is important to Johnson Control’s and the crews that will be replacing the meters. They are also looking at improvements at the Wastewater plant and treatments there. City Manager Towarnicki confirmed that Johnson Controls would provide complete slides to Council Members and the accuracy of meter testing. Council Member Teague would like to see what would be available to residents online. September 8, 2015 September 8, 2015 September 8, 2015 September 8, 2015 City Manager Towarnicki said this topic would be added to an upcoming agenda to discuss funding and if Council would like to proceed with the project. There being no further business, a motion was made by Vice Mayor Bowles to adjourn the meeting at 9:45pm, the motion was seconded by Council Member Hodge; all Council Members voted in favor. ___________________________________ ___________________________________ Karen Roberts Danny Turner Clerk of Council Mayor  City Council Agenda Summary Meeting Date: September 22, 2015 Item No: 2. Department: City Council Issue: Hear an overview of the September 21, 2015 Druid Hills/Uptown area Neighborhood Tour and Meeting. Summary: Mayor Turner will give this update. Attachments: None Recommendations: No action required  City Council Agenda Summary Date: September 22, 2015 Item No: 3. Department: City Manager Issue: Recognize City Deputy Building Official, Kris Bridges on his selection by the Virginia Building and Code Officials Association for receipt of he Jack. A. Proctor Meritorious Service Award for Building Officials. Summary: At the annual Virginia Building and Code Officials Association Conference held earlier this month, City Deputy Building Official Kris Bridges was selected to receive the prestigious Jack A. Proctor Meritorious Service Award for Building Officials. The award is presented annually at the VBCOA conference and recognizes outstanding service, professionalism, and achievement among code officials. Mr. Bridges has been with the City since 2001 and is frequently cited for his thorough knowledge of the building codes and willingness to assist in developing solutions regarding code compliance issues. Attachments: None. Recommendations: No Council action needed.  City Council Agenda Summary Date: September 22, 2015 Item No: 4. Department: City Manager Issue: Present a proclamation honoring the Garden Club of Virginia, recognizing the Martinsville Garden Club, and proclaiming Thursday, October 15, 2015 as “Garden Club of Virginia Day” in Henry County and the City of Martinsville. Summary: The Martinsville Garden Club will be hosting The Garden Club of Virginia Board of Governors which consists of the Executive Committee and the presidents of the 47 Garden Clubs across the State of Virginia, for meetings to be held at NCI on October 13, 14, and 15. A presentation of the Courthouse project will be made by the GCV Restoration Committee on October 15. Henry County and the City of Martinsville will be presenting a joint Proclamation to members of the Martinsville Garden Club in recognition of the work done by their organization, and will also proclaim Thursday, October 15, 2015, as Garden Club of Virginia Day in Henry County and Martinsville. Attachments: Joint Martinsville and Henry County Proclamation Recommendations: No Council action needed. Representatives of the Martinsville Garden Club will be present to accept the Proclamation.  PROCLAMATION Establishing October 15, 2015 as “Garden Club of Virginia Day” in Henry County and Martinsville WHEREAS, the Garden Club of Virginia, was founded in 1920 when eight local gardens clubs came together to use their collective strength to celebrate the beauty of land, to conserve the gifts of nature and to challenge future generations to build on this heritage; and WHEREAS, the Garden Club of Virginia is an active association of forty-seven garden clubs, whose members collectively form a group of more than 3,300 civic leaders from around the Commonwealth; and WHEREAS, the Garden Club of Virginia values the conservation of our natural resources, the restoration of historic gardens and landscapes, and the education of its members and the general public; and WHEREAS, the Martinsville Garden Club will host the Garden Club of Virginia’s Board of Governors Meeting on October 13 -15, 2015 in Martinsville-Henry County, Virginia, bringing hundreds of people to our community; and WHEREAS, observance of this occasion allows the opportunity for our community to extend the appreciation it feels for the valuable contributions made by the Garden Club of Virginia toward the beautification of our all communities of the Commonwealth: NOW, THEREFORE, BE IT PROCLAIMED, on this 22nd Day of September, 2015 that the Henry County Board of Supervisors and the Martinsville City Council establish Thursday, October 15, 2015 as “Garden Club of Virginia Day” in Henry County and Martinsville, and welcome members of the various clubs from around the Commonwealth to our community. Furthermore, the Board of Supervisors and City Council extend their highest praise and commendation to the membership of the Garden Club of Virginia for its service to our communities. ____________________________ _________________________ H.G. Vaughn, Chairman Danny Turner, Mayor Henry County Board of Supervisors Martinsville City Council  City Council Agenda Summary Meeting Date: September 22, 2015 Item No: 5. Department: Community Development Issue: Consider adoption of a resolution designating October as Virginia Artisan Month and October 2-11, 2015 as American Craft Week. Summary: The Artisan Center of Virginia (ACV) has partnered with organizations, business owners, artisans, craftsmen, and agri-artisans to establish the Smith River Artisan Trail in Martinsville and Henry County. The ACV has asked the City of Martinsville to endorse its proclamation designating October as Virginia Artisan Month and the week October 2-11 as American Craft Week. Attachments: Resolution Recommendations: Staff recommends that Council adopt the resolution.  RESOLUTION By Martinsville City Council For ENDORSEMENT OF VIRGINIA ARTISAN MONTH & AMERICAN CRAFT WEEK PROCLAMATION WHEREAS, the culture of the Virginia artisan inspires appreciative audiences for its unique work and distinctive way of life; and, WHEREAS, the production and use of handmade arts and artisan-agricultural goods invoke an intimate lifelong relationship of value and appreciation for the work of highly skilled individuals; and, WHEREAS, Virginia’s artisans link past, present and future as they reconcile “meaning” with “making” through traditional practices and innovations; and, WHEREAS, the state of Virginia currently hosts 27 community-connected and developing artisan trails representing 39 counties and 12 cities across the Commonwealth that are strengthening our economy through a connective community Artisan Trail Network; and, WHEREAS, the Virginia’s artisan industry, comprises an estimated 4,500 businesses, to include but not limited to individual studios, farms, aquaculture, art venues, market venues and supporting cultural sites in both the private and nonprofit sector; and, WHEREAS, the Smith River Artisan Trail in Martinsville-Henry County, is a part of the statewide Artisan Trail Network, and, WHEREAS, artisans and agricultural artisans contribute significantly to strong local and creative economies; and, WHEREAS, the creative economy is an effective avenue toward entrepreneurial opportunities and the diversification of local economies undergoing transition; and, WHEREAS, artisan education research shows that the arts help to foster discipline, creativity, imagination, self-expression, and problem solving skills while also helping to develop a heightened appreciation of beauty and cross-cultural understanding; and, WHEREAS, many artisan acquired skills are transferrable into Virginia’s manufacturing and trade-based workforce; and, WHEREAS, artisans and agricultural artisans are integrated into every aspect of life in Virginia, including strengthening the economy, enriching civic life, driving tourism, and exerting a profound positive influence on the education of our children; THEREFORE, BE IT RESOLVED: The Martinsville City Council hereby expresses its support for the designation of the month of October as Virginia Artisan Month and the week of October 2-11, 2015 as American Craft Week as requested by the Virginia Artisan Center. Adopted this 22nd day of September, 2015. ________________________________________ Danny Turner, Mayor Attest: ________________________________________ Karen Roberts, Clerk of Council  City Council Agenda Summary Meeting Date: September 22, 2015 Item No: 6. Department: City Council Issue: Presentation of proclamation recognizing October, 2015 as Domestic Violence Awareness Month. Summary: Julia Scales, Citizens Against Family Violence Advocate will be present to accept the proclamation. Attachments: Proclamation Recommendations: Presentation only.  DOMESTIC VIOLENCE AWARENESS MONTH PROCLAMATION WHEREAS, domestic violence is a critical issue that is distressing the citizens of Martinsville on a daily basis. Domestic violence is not confined to any group of people but occurs across all socioeconomic and racial boundaries; and WHEREAS, domestic violence violates an individual’s privacy, dignity, security, and humanity, due to systematic use of physical, emotional, psychological, and economic abuse; and WHEREAS, one out of three American women will experience domestic violence at some point in her life, and WHEREAS, children from violent homes are more likely to be involved in violent criminal activity in the future than their non-abused peers; and WHEREAS, the celebration of October as domestic violence awareness month, enables survivors to share their stories of triumph over adversity. Citizens Against Family Violence will provide presentations, awareness activities and trainings in the community throughout the month of October. On October 17th, Citizens Against Family Violence will host the 2nd Annual Teaming Up Against Domestic Violence community basketball game. On October 29th, CAFV will host a panel discussion called Survivors’ Voices. The panel will comprise of local domestic violence survivors, sharing their stories of survival and triumph. NOW, THEREFORE, BE IT RESOLVED, that in recognition of the important work done by Citizens Against Family Violence, Inc. and for the empowerment of domestic violence survivors everywhere, I, Danny Turner, Mayor, designate the month of October 2015 as Domestic Violence Awareness Month in the City of Martinsville. ____________________________________ Danny Turner Mayor  City Council Agenda Summary Date: September 22, 2015 Item No: 7. Department: City Manager Issue: Hear an update from 911 Center Director, J. R. Powell on the CodeRed Alert System. Summary: The Martinsville-Henry County 911 Center recently implemented a Citizens Notification System called CodeRED. This system offers several features that can keep citizens of Martinsville or Henry County informed of emergency situations, weather warnings (tornado, thunder storm, flash flood), and is also a tool for officials to provide communications regarding a wide array of situations. Attachments: None. Recommendations: Presented for information purposes. No Council action needed.  City Council Agenda Summary Date: September 22, 2015 Item No: 8. Department: City Manager Issue: Hear a report prepared by Davenport & Company, LLC, regarding an analysis of the City’s debt/debt capacity. Summary: In conjunction with several significant projects moving toward an approval/implementation stage, City staff requested the City’s financial advisor, Davenport & Company, LLC, to conduct an analysis of the City’s current debt as well as the impact several pending projects could potentially have on the City’s debt structure. Representatives from Davenport & Company will attend the Council meeting to review the results of their analysis, and to answer questions Council may have. Attachments: None. The report will be provided to Council prior to the meeting. Recommendations: No Council action needed. The report is being presented for information purposes as Council moves forward with deliberations on a number of significant projects that will have City financial/budgetary implications.  City Council Agenda Summary Date: September 22, 2015 Item No: 9. Department: City Manager Issue: Consider authorizing staff to execute a performance contract with Johnson Controls covering details related to implementation of a project for the replacement of City water and electric meters, and conversion of City street lighting to LED. Summary: At the September 8 Council meeting, information was presented by Johnson Controls summarizing the results of efforts to develop a performance project for the replacement of City water and electric meters, and conversion of City street lighting to LED. The presentation outlined details of an approximate $7.5 million project, potentially funded by energy savings, additional revenue resulting from more accurate metering infrastructure, internal savings, and allocation of resources that would have been regularly committed for normal meter and lighting repairs/replacement. Some key advantages to City customers through an automated meter reading system were outlined including ability to quickly detect leaks and the ability of utility account holders to access account information. Project financing was developed around an estimated 3% interest rate. If Council approves execution of the performance contract, the next step in the process would be to review financing options and to secure project financing. Action by City Council will be required at a later date once financing details are determined. Attachments: None Recommendations: Staff recommends proceeding with the project, Council authorization to execute the Performance Contract, and approval to proceed with determining project financing.  City Council Agenda Summary Meeting Date: Sept. 22, 2015 Item No: 10. Department: Finance Issue: Financial Report Summary: FY15 – As of 6/30/15 - Revenues & Expenditures; Combined Balance Sheet; Projected Fund Balance – Prior to Final Audit Exclusive of School and Special Revenue funds, actual revenues were $61,427,187, representing 98.8% of anticipated year-end figures through June 30, 2015. Recording 12 month of proceeds, Local Sales & Use Taxes collected through June 30th were greater than anticipated by $21,102, for total receipts of $1,921,102. Overall, Utility revenues averaged 97.04% of anticipated, with only the Refuse Fund exceeding its budgeted revenues by $49,173. Actual expenditures at year-end were $60,635,087, which represents 90% of the overall budget of $67,406,121. Re-appropriation requests for these funds are $1,492,299. Taking that into account, year-end expenses for these funds would have been $62,127,386 if all projects had been completed and all grants/donations spent, reflecting a 92.17% expenditure rate. As of June 30, the total Combined Fund Balance and Net Position was $17,997,854, a decrease from FY14 year-end of $1,633,374. The available cash-on-hand for all City Funds was $17,710,595, an 8.4% increase over the same time period last year. It is important to remember that the final audit process will begin September 28th, and there are still adjustments to be made. The numbers reported tonight are not the final financial reports for FY15. Amendments should be expected, although major variances are not anticipated at this time. Final audited reports will be presented to Council when all adjustments are made and reviewed for accuracy by staff. Attachment: Consolidated Revenues and Expenditures FY15 YE 9-16-15 Combined Balance Sheet FY15 YE 9-16-15 Projected Fund Balance FY15 YE 9-16-15 Recommendations: Motion to approve financial report.  City of Martinsville Consolidated Revenues and Expenditures FY15 - June 30, 2015 (prelim) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual General Fund Revenues $ 29,341,561 $ 29,365,372 $ 29,449,286 $ (107,725) 100.3% Expenditures 31,297,879 31,297,879 30,053,907 1,243,972 96.0% Excess (deficiency) of revenues over expenditures $ (1,956,318) $ (1,932,507) $ (604,621) (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Capital Funds Meals Tax Revenues $ 2,066,792 $ 2,066,865 $ 2,031,887 $ 34,905 98.3% Expenditures 2,224,415 2,224,415 2,198,094 26,321 98.8% Excess (deficiency) of revenues over expenditures $ (157,623) $ (157,550) $ (166,207) Capital Reserve Revenues $ 2,090,029 $ 2,090,088 $ 2,090,088 $ (59) 100.0% Expenditures 2,230,652 2,230,652 1,943,254 287,398 87.1% Excess (deficiency) of revenues over expenditures $ (140,623) $ (140,564) $ 146,834 TOTAL CAPITAL FUNDS: $ (298,246) $ (298,114) $ (19,373) (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Refuse Fund Revenues $ 2,154,507 $ 2,154,507 $ 2,203,680 $ (49,173) 102.3% Expenditures 2,560,135 2,560,135 1,702,933 857,202 66.5% Excess (deficiency) of revenues over expenditures $ (405,628) $ (405,628) $ 500,747 Telecommunications Fund Revenues $ 859,960 $ 859,960 $ 771,016 $ 88,944 89.7% Expenditures 871,808 871,808 726,895 144,913 83.4% Excess (deficiency) of revenues over expenditures $ (11,848) $ (11,848) $ 44,121 Water Fund Revenues $ 3,359,130 $ 3,359,130 $ 3,297,246 $ 61,884 98.2% Expenditures 4,090,272 4,090,272 3,018,987 1,071,285 73.8% Excess (deficiency) of revenues over expenditures $ (731,142) $ (731,142) $ 278,259 Sewer Fund Revenues $ 4,010,012 $ 4,010,012 $ 3,953,123 $ 56,889 98.6% Expenditures 4,448,450 4,448,450 3,968,768 479,682 89.2% Excess (deficiency) of revenues over expenditures $ (438,438) $ (438,438) $ (15,645) Electric Fund Revenues $ 18,268,308 $ 18,286,564 $ 17,630,862 $ 637,446 96.4% Expenditures 19,682,510 19,682,510 17,022,250 2,660,260 86.5% Excess (deficiency) of revenues over expenditures $ (1,414,202) $ (1,395,946) $ 608,612 TOTAL UTILITY FUNDS: $ (2,989,410) $ (2,971,154) $ 1,371,973 (Fund Bal contrib)  Consolidated Revenues and Expenditures FY15 - June 30, 2015 (prelim) Actual Remaining Difference Budget YTD Balance Budg vs. Actual Cafeteria Revenues $ 1,506,882 $ $ 1,615,983 $ (109,101) 107.2% Expenditures 1,526,882 1,450,006 76,876 95.0% Excess (deficiency) of revenues over expenditures $ (20,000) $ $ 165,977 Schools Revenues $ 22,703,598 $ $ 22,538,666 $ 164,932 99.3% Expenditures 22,899,604 22,354,849 544,756 97.6% Excess (deficiency) of revenues over expenditures $ (196,006) $ $ 183,818 Federal Programs Revenues $ 3,457,998 $ $ 2,463,914 $ 994,084 71.3% Expenditures 3,457,998 2,541,050 916,948 73.5% Excess (deficiency) of revenues over expenditures $ - $ $ (77,136) TOTAL SCHOOL FUNDS: $ (216,006) $ - $ 272,659 (fund bal contrib) Actual Remaining Budget YTD Balance Special Revenue Funds CDBG Fund Revenues (includes new Northside) $ 1,165,168 $ 169,009 $ 996,159 14.5% Expenditures 1,138,402 198,272 940,130 17.4% Excess (deficiency) of revenues over expenditures $ 26,766 $ (29,263) Housing Choice Fund Revenues $ 1,944,525 $ 1,327,307 $ 617,218 68.3% Expenditures 1,944,450 1,669,592 274,858 85.9% Excess (deficiency) of revenues over expenditures $ 75 $ (342,285) TOTAL SPECIAL REVENUE FUNDS: $ 26,841 $ (371,548) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual GRAND TOTALS: (excluding Schools & Special Revenues) Revenues: $ 62,150,299 62,192,498 $ 61,427,187 $ 723,112 98.8% Expenditures 67,406,121 67,406,121 60,635,087 6,771,034 90.0% Excess (deficiency) of revenues over expenditures $ (5,255,822) (5,213,623) $ 792,100 Local Sales/Use Taxes $ 1,900,000 $ 1,900,000 $ 1,921,102 $ (21,102) 101.1% The Budgeted Revenue amounts do not include any contributions from Fund Balance.  City of Martinsville Combined Balance Sheet FY15 - 6/30/15 Through 6/30/15 (prelim) CURRENT JUNE 30, 2014 TOTAL LIABILITIES FUND BAL & FUND BAL & DIFFERENCE FUND ASSETS* &RESERVES NET POSITION NET POSITION FROM FY14 GENERAL FUND $ 11,730,704 $ (4,537,103) $ 7,193,601 $ 7,798,221 $ (604,620) MEALS TAX $ 825,849 $ - $ 825,849 $ 992,056 $ (166,207) SCHOOL CAFETERIA $ 1,026,734 $ (61,163) $ 965,571 $ 799,593 $ 165,978 REFUSE COLLECTION FUND $ 9,493,687 $ (7,375,595) $ 2,118,092 $ 2,982,021 $ (863,929) TELECOMMUNICATIONS $ (51,152) $ (71,487) $ (122,639) $ (166,760) $ 44,121 WATER FUND $ 5,726,808 $ (4,790,001) $ 936,807 $ 821,173 $ 115,634 SEWER FUND $ 4,003,132 $ (3,585,089) $ 418,043 $ 513,129 $ (95,086) ELECTRIC FUND $ 15,353,264 $ (10,395,725) $ 4,957,539 $ 5,068,770 $ (111,231) CAPITAL RESERVE FUND $ 741,457 $ (134,786) $ 606,672 $ 459,838 $ 146,834 SCHOOL FUND $ 2,164,406 $ (1,980,588) $ 183,818 $ - $ 183,818 SCHOOL FEDERAL PROGRAMS $ 35,977 $ (121,566) $ (85,590) $ (8,454) $ (77,136) CDBG FUND $ 97,719 $ (150,749) $ (53,031) $ (23,767) $ (29,264) HOUSING CHOICE $ 53,448 $ (325) $ 53,122 $ 395,408 $ (342,286) TOTAL $ 51,202,033 $ (33,204,179) $ 17,997,854 $ 19,631,228 $ (1,633,374) RESERVED FUNDS INSURANCE TRUST FUND $ 266,878 $ - $ 266,878 $ 448,745 $ (181,867) INMATE TRUST FUND $ 135,469 $ (128) $ 135,341 $ 97,089 $ 38,252 Fiduciary Agency Funds: 05-SVRFA $ 19,100 $ (10,658) $ 8,442 $ 53,951 $ (45,509) 06-Dan River ASAP $ 470,734 $ (223,368) $ 247,366 $ 236,601 $ 10,765 15-PRCJTA $ 438,660 $ (8,381) $ 430,279 $ 493,591 $ (63,312) 30-BRRL $ 233,187 $ (28,936) $ 204,251 $ 199,255 $ 4,996 TOTALS: $ 1,161,681 $ (271,343) $ 890,338 $ 983,398 $ (93,060)  CITY OF MARTINSVILLE PROJECTED FUND BALANCE 06/30/2015 Unaudited - 9/16/15 Audited Fund projected projected included in Balance & Net Actual Actual exp Projected Fund Position Revenues Expenditures Budgeted Balance & Net Net (Decrease) 06/30/14 FY15 FY15 Depreciation Position 06/30/15 Increase GENERAL 7,798,221 29,449,286 30,053,907 7,193,600 (604,621) MEALS TAX 992,056 2,031,887 2,198,094 825,849 (166,207) CAPITAL RESERVE 459,838 2,090,088 1,943,254 606,672 146,834 TOTAL CAPITAL FUNDS 1,451,894 4,121,975 4,141,348 1,432,521 (19,373) REFUSE 2,982,021 2,203,680 3,067,609 0 2,118,092 (863,929) TELECOMMUNICATIONS (166,760) 771,016 726,895 (122,639) 44,121 WATER 821,173 3,297,246 3,181,612 0 936,807 115,634 SEWER 513,129 3,953,123 4,048,209 0 418,043 (95,086) ELECTRIC 5,068,770 17,630,862 17,742,092 0 4,957,540 (111,230) TOTAL UTILITY FUNDS 9,218,333 27,855,927 28,766,418 0 8,307,842 (910,491) CAFETERIA 799,593 1,615,983 1,450,006 965,570 165,977 SCHOOLS 0 22,538,666 22,354,849 183,817 183,817 SCHOOL GRANTS (8,454) 2,463,914 2,541,050 (85,590) (77,136) TOTAL SCHOOL FUNDS 791,139 26,618,563 26,345,905 1,063,797 272,658 CDBG (23,767) 169,009 198,272 (53,030) (29,263) HOUSING CHOICE 395,408 1,327,307 1,669,592 53,123 (342,285) TOTAL SP REV FUNDS 371,641 1,496,316 1,867,864 93 (371,548) TOTAL ALL FUNDS 19,631,228 89,542,067 91,175,442 0 17,997,854 (1,633,374)  Fund Balance Summary Total Funds: Total Category: Non-spendable: 1,184,170 Inventory 1,178,039 Prepaid Items - Gen Fund 6,131 Restricted: 0 Capital Proj - Meals Tax Fund 0 Capital Reserve Fund Project 0 Committed to: 2,628,528 CCBC 1,666,700 PART 28,725 Housing Choice 53,123 Cafeteria Fund 965,570 School Grants Fund -85,590 Assigned to: 1,432,521 Capital Reserve Fund 606,672 Unassigned Comparison to Policy Meals Tax Fund 825,849 Fund balance Variance Recommended to Policy Unassigned: 12,752,635 Non-utility Funds: 4,444,793 Non Utility Funds 3,051,327 1,393,466 Utility Funds: 8,307,842 Utility Funds 6,747,395 1,560,447 Total 9,798,722 2,953,913 Totals: 17,997,854 17,997,854 Additional Committed: Re-appropriations (if approved): Non-utility: Unassigned Comparison to Policy - after Re-approp General Fund: 566,639 Capital Reserve Fund: 257,410 Recommended Variance CDGB Fund: 918,572 Non-Utility Funds 3,051,327 407,771 School Operating Fund: 58,616 Utility Funds 6,747,395 892,197 1,801,237 Total 9,798,722 1,299,969 Utility: Refuse Fund: 69,000 Water Fund: 200,000 Electric Fund: 399,250 668,250  City Council Agenda Summary Meeting Date: September 22, 2015 Item No: 11. Department: Finance Issue: Appropriation Approvals Summary: Item #1 – The attachment amends the FY16 Budget with appropriations in the following funds: General Fund: $ 3,608 – Reimbursement Item #2 – Re-appropriation of Funds from FY15 to FY16 Budget by fund as follows: General Fund: $ 566,639 Refuse Fund: $ 69,000 Water Fund: $ 200,000 Electric Fund: $ 399,250 Capital Reserve Fund: $ 257,410 CDBG Fund: $ 918,572 School Fund: $ 58,616 Total Requests: $2,469,487 Item #3 – Consent for Health Department to re-appropriation remaining grant funding from FY15 in FY16 as matching funds. Attachments: Consent Agenda 9-22-15 Re-appropriations for FY16 9-22-15 Health Department Re-appropriation 9-22-15 Recommendations: Approve  BUDGET ADDITIONS FOR 9/22/15 ORG OBJECT DESCRIPTION DEBIT CREDIT FY16 General Fund: 01100909 490104 Advance/Recovered Costs 3,608 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 2,650 01331108 502100 Sheriff/Corrections - Social Security 164 01331108 502110 Sheriff/Corrections - Medicare 39 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 530 01331110 506200 Sheriff/Annex - Prisoner Allowance 225 Reimbursement from Henry County for litter pickup-July & August Total General Fund: 3,608 3,608  RE-APPROPRIATIONS FY15 TO FY16 DEPARTMENTAL REQUESTS ORG CODE OBJECT DEPARTMENT ACCOUNT DESCRIPTION DEBIT CREDIT GENERAL FUND 01103938 462101 Contribution From Fund Balance $ 566,639 01217078 506047 Sheriff - Courts Project Life Saver $ 13,077 rollover of prior years' appropriated donations 01221082 506001 Commonwealth's Attorney Office Supplies $ 7,846 additional comp board funds received late in the year 01221082 506105 Commonwealth's Attorney State - Confiscated Assets $ 4,436 forfeiture funds - carry-over 01221082 506079 Commonwealth's Attorney Federal - Confiscated Assets $ 6,402 forfeiture funds - carry-over 01221082 506118 Commonwealth's Attorney Local - Confiscated Assets $ 129 forfeiture funds - carry-over 01123035 501300 Commissioner of Revenue Part-time Wages $ 913 rollover of NCI intern funding 01123035 502100 Commissioner of Revenue Social Security $ 60 rollover of NCI intern funding 01123035 502110 Commissioner of Revenue Medicare $ 15 rollover of NCI intern funding 01311085 501206 Police Overtime - DMV Grant $ 25,950 grant funding 01311085 506008 Police Vehicle Equip & Maint $ 4,897 incomplete project - slide-in unit/animal control 01311085 506078 Police State - Confiscated Assets $ 12,849 forfeiture funds - carry-over 01311085 506079 Police Federal - Confiscated Assets $ 88,365 forfeiture funds - carry-over 01311085 506082 Police Byrne/Jag Grant Program $ 4,785 grant funding 01311085 506118 Police Local - Confiscated Assets $ 400 forfeiture funds - carry-over 01311085 508165 Police Construction - Animal Shelter $ 314 donated funds 01311085 506061 Police Ammunition $ 1,200 incomplete order 01313090 506100 Transportation Safety Cmt Misc. Expenses $ 570 funding for high school anti-drunk driving campaign 01321102 506110 Fire Fire Programs $ 71,587 grant funding 01321102 503171 Fire Labor for Burn building $ 1,125 unspent reimbursements carried forward 01321102 506130 Fire Maintenance for Burn Building $ 3,714 unspent reimbursements carried forward 01322105 506114 EMS Four for Life $ 22,653 grant funding 01341135 506300 Inspections Demolition $ 82,000 continuing program to clean-up more properties 01413145 503185 Street Maintenance Prof.Service-Street Resurfacing $ 103,084 continuing program - paving 01413151 508220 Thorofare Construction Physical Plant Expansion $ 80,268 incomplete project - paving/uptown/sidewalks 01431162 506007 City Hall Operations Repair & Maintenance $ 5,000 emergency repairs - storm drainage system 01420152 508220 VDOT Reserve Physical Plant Expansion $ 25,000 incomplete project - uptown crosswalks REFUSE FUND 09103938 462101 Contribution From Fund Balance $ 69,000 09425302 503140 Landfill Prof. Service - Engineering $ 20,000 additional engineering & testing - comply w/DEQ requirements 09425302 508220 Landfill Physical Plant Expansion $ 49,000 additional monitoring wells & active gas extraction system (DEQ req'd) WATER FUND 12103938 462101 Contribution From Fund Balance $ 200,000 12543313 508220 Water Maintenance Physical Plant Expansion $ 200,000 incomplete project - water meter replacement ELECTRIC FUND 14103938 462101 Contribution From Fund Balance $ 399,250 14561336 505112 Electric Generation Purchased Power $ 319,000 14561336 503140 Electric Generation Prof. Service - Engineering $ 39,500 Hydro dam - relicensing expense 14563338 506007 Electric Maintenance Substation Maintenance $ 40,750 replacement of generator @ shop CAPITAL RESERVE FUND 16103938 462101 Contribution From Fund Balance $ 257,410 16575365 508085 Vehicles Sheriff - Jail $ 5,100 Incomplete Project - New vehicle and equipment 16575365 508035 Computer Software/HardwarCommissioner of Revenue $ 8,150 Incomplete Project - balance of 1st half new software 16576366 508055 Computer Software/HardwarInformation Services $ 60,400 additional hardware needs 16577367 508085 Physical Plant Expansion Sheriff - Jail $ 23,460 Incomplete Project - emergency generator & floor repairs Page 1 of 2  16577367 508670 Physical Plant Expansion Garage/Warehouse Complex $ 74,000 incomplete project - Paving of parking lots 16577367 508140 Physical Plant Expansion City Hall $ 81,800 Incomplete project - City Hall roof 16577367 508141 Physical Plant Expansion Senior Center $ 4,500 incomplete project - Senior center renovations CDBG FUND 47103938 462101 Contribution From Fund Balance $ 918,572 47823521 506324 Uptown Revitalization Façade Improvements-Construction $ 542 Continuing Grant-funded project 47835525 505370 Northside Neighborhood Administration $ 65,126 Continuing Grant-funded project 47835525 505371 Northside Neighborhood Acquisition $ 77,276 Continuing Grant-funded project 47835525 505372 Northside Neighborhood Clearance & Demolition $ 37,200 Continuing Grant-funded project 47835525 505373 Northside Neighborhood Owner Occupied Rehab $ 198,200 Continuing Grant-funded project 47835525 505375 Northside Neighborhood Owner Occupied Reconstruction $ 261,900 Continuing Grant-funded project 47835525 505601 Northside Neighborhood Homeownership Creation $ 104,600 Continuing Grant-funded project 47835525 505602 Northside Neighborhood Street Improvements $ 160,978 Continuing Grant-funded project 47835525 505603 Northside Neighborhood Flood Drainage Facilities $ 12,750 Continuing Grant-funded project TOTAL CITY FUNDS: $ 2,410,871 SCHOOL FUNDS 18100938 410510 Ops/Contrib from Fund Balance $ 58,616 81621310 563000 HARVEST - ELEMENTARY Purchased Services $ 6,000 grant funding 81621310 563142 HARVEST - ELEMENTARY Professional Development $ 4,800 grant funding 81621310 565503 HARVEST - ELEMENTARY Travel $ 21,000 grant funding 81621310 565800 HARVEST - ELEMENTARY Miscellaneous Expense $ 1,570 grant funding 81621310 566000 HARVEST - ELEMENTARY Materials & Supplies $ 1,200 grant funding 81621310 566013 HARVEST - ELEMENTARY Instructional Materials $ 600 grant funding 81631310 563000 HARVEST - SECONDARY Purchased Services $ 4,000 grant funding 81631310 563142 HARVEST - SECONDARY Professional Development $ 3,200 grant funding 81631310 565503 HARVEST - SECONDARY Travel $ 14,000 grant funding 81631310 565800 HARVEST - SECONDARY Miscellaneous Expense $ 1,046 grant funding 81631310 566000 HARVEST - SECONDARY Materials & Supplies $ 800 grant funding 81631310 566013 HARVEST - SECONDARY Instructional Materials $ 400 grant funding TOTAL SCHOOL FUNDS: $ 58,616 $ 58,616 TOTAL RE-APPROPRIATIONS FROM FY14 TO FY15 $ 2,469,487 Page 2 of 2 Health Department Re-appropriation Request for FY16 Due to the timing of budget requests, the Health Department submitted their FY16 funding request to the City prior to the General Assembly’s passage of new legislation in March. The adopted legislation provided an additional $110,000 in much-needed State-allocated general funds. However, in order to utilize these additional funds, they must be matched at the local level. The increased general funds have caused a match shortage of $9,648 for the City of Martinsville’s share of FY16 funding of the Health Department. At the end of FY15, they currently have left-over grant funds in the amount of $9,648.66. With Council’s consent, these left-over funds would be used to offset the additional local match shortage.