City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00pm Closed Session 7:30pm Regular Session Tuesday, February 23, 2016 7:00 pm --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. Discussion or consideration of the investment of public funds where competition or bargaining is involved where, if made public initially, the financial interest of the governmental unit would be adversely affected, as authorized by Subsection 6. 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 7:30—Regular Session Invocation & Pledge to the American Flag- Vice Mayor Bowles 1. Consider approval of minutes of the February 9, 2016 Meeting. (2 mins) 2. Recognize City Employees who are eligible for Service Awards – January 1 through March 31, 2016 (10 mins) 3. Consider presentation of a Joint Proclamation with Henry County, recognizing Martinsville/Henry County General District Court Judge Edwin A. Gendron, Jr. on his retirement (5 mins) 4. Hear an update from Community Development staff regarding the Northside Community Development Block Grant project (10 mins) 5. Conduct a public hearing to consider a request for rezoning of 51 Lester Street and 49-Lot Lester Street from M-2 – Heavy Manufacturing District to C-2 – Central Business District (20 mins) 6. Consider approval on second reading of an ordinance reciting the expediency of the issuance of up to $10,000,000 principal amount of water and sewer revenue bonds for the City’s sewer interceptor project (10 mins) 7. Hear information regarding a proposed resolution directed to the Federal Energy Regulatory Commission (FERC) concerning the Prairie State Energy Campus project (10 mins) 8. Hear a presentation regarding development of an asset management plan for water and sewer (10 mins) 9. Consider adoption of a City Investment Policy (10 mins) 10. Consider approval of consent agenda (2 mins) 11. Comments by members of City Council. (5 minutes) 12. Comments by City Manager. (5 minutes) 13. Business from the Floor (not televised) This section of the Council meeting provides citizens the opportunity to discuss matters, which are not listed on the printed agenda. 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.  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from February 9, 2016 Council Meeting. Summary: None Attachments: February 9, 2016 Meeting minutes Recommendations: Motion to approve minutes as presented. February 9, 2016 The regular meeting of the Council of the City of Martinsville, Virginia, was held on February 9, 2016 in Council Chambers, Municipal Building at 7:30 PM. Council Members present included: Danny Turner, Gene Teague, Sharon Brooks Hodge, Jennifer Bowles and Mark Stroud. Staff present included: City Manager Leon Towarnicki, Clerk of Council Karen Roberts, City Attorney Eric Monday, Finance Director Linda Conover, Budget Analyst Mary Prillaman, and Police Chief Sean Dunn. Vice Mayor Bowles called the meeting to order and thanked Mayor Turner for turning the meeting over to her for the night. Following the invocation by Council Member Stroud and Pledge to the American Flag, Vice Mayor Bowles welcomed everyone to the meeting. Hear a report from Robinson, Farmer, Cox Associates on the City’s FY15 audit – David Hughes thanked the various departments that assisted in the audit. There are three reports included in the audit document. The complete report will be on file in the City Manager’s office. Council Member Hodge asked Mr. Hughes to address schedule 1 on page 137, specifically the $77,832 decrease on business taxes from the previous year. Linda Conover commented that there was $65,205.69 in refunds so when that is added back into those figures they would be 99.9% on budget. Consider approval of minutes from the January 26, 2016 meeting and the February 3, 2016 Special meeting – A motion was made by Mayor Turner to approve minutes from January 26, 2016 and February 3, 2016, the motion was seconded by Council Member Hodge. All Council Members voted in favor to approve both sets of minutes as presented. Hear an update regarding the Virginia Department of Veteran Services – Nicole Crews, Veterans Service Representative explained that their main office is in Danville but they have a branch site in Martinsville. There are 26 benefit offices in Virginia and all services are free. Virginia is the first and only state to go paperless; all claims are submitted electronically. Council Member Hodge asked if the electronic submission of claim forms has expedited the turnaround process for claims. Crews stated that the veterans would receive claims within 180 days vs 1 year previously and claims are not getting lost. The Martinsville site is located at 233 W. Commonwealth Boulevard in the Workforce Building. Hear an update from Amanda Witt of the M-HC Chamber of Commerce regarding activities related to the City/C-PEG Small Business Development contract – Ms. Witt explained a $75,000 grant for Start Up Martinsville and said there is a one page application on the City website for anyone wanting to apply. They have partnered with Patrick Henry Community College for an 8-week entrepreneurial boot camp to qualify for this program. Friday, February 12, 2016 is the deadline for applications. Maximum prize amount is $20,000. They continue to add more events up Uptown including an Easter egg hunt and possibly a family movie day. There will be a Spring Fling in May similar to the annual OctoberFest. TGIF dates have been February 9, 2016 scheduled and improving the Farmers Market is a priority. By late March the microloan program will be ready to begin which is a 4-year commitment offered by a local businessman and matched by the Chamber. They are working on a written and electronic form detailing how to do business in the City. This form will contain streamlined information on a one page document to make doing business even easier. Council Member Hodge requested the microloan timeline be moved to the beginning of March so that it can be promoted during FastTrack. Vice Mayor Bowles questioned how residents could use EBT cards at the Farmers Market. Ms. Witt explained that every dollar the resident spends is matched to encourage healthy eating. The Incubator is about 90% full with no waiting list. Mr. Coleman of Spectrum Medical, Inc. sent a note thanking CPEG’s and the Chamber’s assistance; Council Member Teague highlighted parts of the letter detailing their appreciation for the assistance. Consider approval of a resolution authorizing a public hearing and approving related actions related to potential financing of the City’s sewer interceptor project – City Manager Towarnicki explained that the loan for $21.74million has been approved and will be awarded in 2 allotments. At loan closing the end of March, the City will already have close to $1million expended in the project. Mr. Towarnicki went over the projected schedule of ordinance adoption. To get a 30-year term with 0% financing is almost unheard of. Council Member Teague made a motion to approve the resolution; Council Member Stroud seconded the motion, all Council Members voted in favor to approve the resolution. February 9, 2016 Consider approval on first reading of an ordinance reciting the expediency of the issuance of up to $10,000,000 principal amount of water and sewer revenue bonds for the City’s sewer interceptor project – Council Member Teague made a motion to approve the ordinance on first February 9, 2016 reading, Council Member Stroud seconded the motion with a recorded vote as follows: Hodge, aye; Bowles, aye; Stroud, aye; Teague, aye; and Turner, aye. February 9, 2016 Hear finance report – Linda Conover referred Council to the revised copy provided then summarized the finance report. Hodge made a motion to approve the finance report as presented, Stroud seconded the motion with all Council Members voting in favor. February 9, 2016 Consider approval of consent agenda – A motion was made by Teague and seconded by Hodge to approve the consent agenda as presented, all Council Members voted in favor. February 9, 2016 Comments by members of City Council – Council Member Hodge referred to the audit and noted that in the past 10 years, this year was the highest percentage of property tax collection (page 170), the lowest collection year was 2012 at 89.72%, 2015 was 94.16%. She wanted to thank those who paid on time and City Attorney Monday for assisting in that collection process. She shared that local business may be interested in an event Thursday February 11, 2016 from 5:00-7:00pm at NCI business; this event allows business owners to meet and share what each can provide to build a strong business community. Council Member Stroud encouraged citizens to look out for their neighbors during the extreme cold temperatures. He said he is encouraged by the budget discussions that he’s heard so far. Council Member Teague acknowledged the passing of Carolyn Franck. He recognized Mr. Franck who was vital in the Tultex industry; the Francks showed us how to care for the community by providing a great business and contributed generously to the community. Mayor Turner acknowledged Johnny Carter, owner of the H&R Block franchise locally. He referred to the Power Sales Contract with American Municipal Power resolution regarding the evaluation of stock worth of the company, asking Council to approve the resolution. Council Member Teague expressed concern that the resolution was written by a group that was against the project from the beginning and he feels that some statements are not accurate. He would prefer AMP Ohio to provide response before he feels comfortable approving the resolution and he asked the City Manager to obtain additional information from AMP to ensure the numbers provided on the resolution are valid. Council Member Hodge stated that there is time for additional research to meet deadline. Mayor Turner made a motion to approve the resolution; no second was made so the motion was tabled until the February 23, 2016 meeting. February 9, 2016 Vice Mayor Bowles said that the Millennials of Martinsville and Henry County are still taking donations for Flint, Michigan residents. She read a proclamation recognizing African- Americans who have served as elected representatives on the City Council. Council Member Teague reflected on his years serving with those previous Council Members. Hodge says this is the first time that there was more than one African-American serving on council at one time and she felt that it is an important representation of the community that is 45% African- American. Comments by City Attorney – City Attorney Monday asked residents to show concern for their neighbors and for their pets and stated that it is illegal to leave pets outside in cold temperatures for more than 15 minutes at a time. Comments by City Manager – City Manager Towarnicki recognized Monday February 15, 2016 as Presidents day so the Municipal building will be closed. He referred to an article in the paper regarding a City employee charged with embezzlement; he provided assurance of the practices and policies in place to prevent this activity from happening. He detailed the elaborate practice of checking what is charged to credit cards and stated that in addition to this practice, the City tries to hire good people that can be trusted. He said the process did work in this case but because the credit card cycle is monthly that it was not detected until the practice was implemented at the end of the billing cycle. Mr. Hughes with Robinson, Farmer, Cox Associates confirmed that the policy the City has in place is adequate. Towarnicki said a comment was made that the City had stopped the cruise-in but that was inaccurate. There are steps to holding special events so the City would need someone to February 9, 2016 sponsor these events and comply with codes and regulations to hold future cruise-ins. The City has not received a request this year for a cruise-in event. Business from the Floor (not televised) – Joseph Martin stated that he feels very positive as a small business owner about the future of Martinsville. He would like to remind Council that fluoride leaches lead from pipes, referencing the problems from Flint, Michigan. He asked council to review the noise ordinance and said there is nothing referencing vibration/percussion. Monday says the noise ordinance dates back to the 1970s when industrial noise was expected and welcomed. Ural Harris, 217 Stewart Street, stated his disappointment that Council did not support the Mayor on the AMP resolution. Council Member Hodge stated that she asked for additional clarification and was not voting for or against the resolution until she had time to review additional information. Council Member Teague said he did not feel that it was fair to present Council with information immediately before the Council meeting without giving them time to verify the information provided was accurate and complete. There being no further business, a motion was made by Mayor Turner to adjourn the meeting, the motion was seconded by Council Member Hodge with all Council Members voting in favor. The meeting adjourned at 9:02pm. ______________________________________ ______________________________________ Karen Roberts Danny Turner Clerk of Council Mayor  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 2. Department: Human Resources Issue: Recognize City Employees who are eligible for Service Awards – January 1 through March 31, 2016. Summary: The Service Award Program is designed to build individual morale and show appreciation to the long-service employee for their faithful service to the City of Martinsville. Attachment: Listing of City Employees who are eligible for the service award for the third quarter of FY 15-16. TO BE READ BY MAYOR. NO ACTION NECESSARY. SERVICE AWARD RECIPIENTS THIRD QUARTER - FISCAL YEAR 15-16 FOR THE PERIOD OF JANUARY 1 THROUGH MARCH 31, 2016 YEARS OF NAME DEPARTMENT SERVICE BLAINE ADKINS WATER RESOURCES 5 CHRIS BELL POLICE DEPT 5 RYAN EMBERSON ELECTRIC 5 ROY DONAVANT WATER RESOURCES 10 DAN HOWELL FIRE DEPARTMENT 20 DAWN VAUGHN POLICE DEPT 20 JIMMY ASHWORTH FIRE DEPARTMENT 20 SHEILA CLARK TREASURER 20 ANDY BOITNOTT POLICE DEPT 25 CORETHA GRAVELY POLICE DEPT 25 ROY PRILLAMAN SHERIFF'S DEPARTMENT 25 DOUG WOOD WATER PLANT 35  City Council Agenda Summary Date: February 23, 2016 Item No: 3. Department: City Council Issue: Consider presentation of a Joint Proclamation with Henry County, recognizing Martinsville/Henry County General District Court Judge Edwin A. Gendron, Jr. on his retirement. Summary: Martinsville/Henry County General District Court Judge Edwin A. Gendron, Jr. retired effective January 31, 2016. In recognition and appreciation of his service to both localities, a Joint City/County Proclamation will be presented to Judge Gendron. Attachments: Joint Proclamation Recommendations: The Mayor will read the Proclamation and present same to Judge Gendron. The Henry County Board of Supervisors will be taking a similar action at their meeting also on Tuesday, February 23, 2016. PROCLAMATION – RECOGNIZING THE HONORABLE EDWIN A. GENDRON, JR. UPON HIS RETIREMENT WHEREAS, The Honorable Edwin A. Gendron, Jr. has served as Judge of General District Courts in Henry County and Martinsville since March 25, 2005; and WHEREAS, Judge Gendron has retired from service effective January 31, 2016; and WHEREAS, During his tenure, Judge Gendron served Henry County and Martinsville in an exemplary manner, working with law enforcement, attorneys, and citizens, administering the requirements of the Court in a fair, impartial, and compassionate manner; NOW THEREFORE, on this 23rd day of February, 2016, the Henry County Board of Supervisors and the Martinsville City Council hereby join in proclaiming their thanks and appreciation to the Honorable Edwin A. Gendron, Jr. for his dedication and service to our community, and offer our best wishes for a long and happy retirement. ______________________ _____________________ Jim Adams, Chairman Danny Turner, Mayor Henry County Board of Supervisors Martinsville City Council  City Council Agenda Summary Date: February 23, 2016 Item No: 4. Department: Community Development Issue: Hear an update from Community Development staff regarding the Northside Community Development Block Grant project. Summary: Community Development staff will provide a brief update on the status of the Northside CDBG project that is currently underway. Attachments: None Recommendations: No action needed - presented for information purposes only.  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 5. Department: Community Development Issue: Conduct a public hearing to consider a request for rezoning of 51 Lester Street and 49-Lot Lester Street from M-2 – Heavy Manufacturing District to C-2– Central Business District. Summary: The former manufacturing facility (according to the State/Federal Historic district nomination was the 1907 Gravely Pin Factory, 1930s Novelty Furniture Company, and American of Martinsville), which is located on the corner of Depot Street and Lester Street is outdated for a manufacturing use and has been vacant for a number of years. Sylvan Road Partners LLC is requesting a rezoning of this property and adjacent lot, 49 Lot Lester, to C-2 (to avoid spot zoning), which would enable it to become a multi-family housing development. This use is allowed by-right in C-2. The 2010 Uptown Master Plan cites the need to “Create housing opportunities that bring 24-hour life and diversity,” including “attract residents to live in Uptown – students, professors, artists, and attract…empty nesters and young professionals.” According to the Comprehensive Plan, one of the Housing Recommendations is to “continue to market the Uptown area as a residential neighborhood for the more urban-minded, middle-income and upper-income residents,” and “market the area as a desirable and affordable place for retirees to locate,” as well as “develop additional renter-occupied, multi-family units for low- to moderate-income families.” A multi-family development could address all of these recommendations. Sylvan Road Partners has worked in Martinsville before doing business as Landmark Development Corp. on the Martinsville Lofts complex on Rives Road. Attachments: Property Sheets Other Information Recommendations: Staff recommends that Council approve the rezoning to allow a higher and better use of a current vacant property. Housing and Urban Development Income Thresholds The development will have income limits of 60% of the Area Median Income – see below. Martinsville city MSA: Non-Metropolitan Median Income: $45,600.00 Click on a column header for sorting. Two Percentage One (family of) Three Four Five Six Seven Eight 30% $11,770.00 $15,930.00 $20,090.00 $24,250.00 $28,410.00 $30,800.00 $32,950.00 $35,050.00 40% $14,880.00 $17,000.00 $19,120.00 $21,240.00 $22,960.00 $24,640.00 $26,360.00 $28,040.00 $21,250.00 $18,600.00 50% ($10.21/Hr $23,900.00 $26,550.00 $28,700.00 $30,800.00 $32,950.00 $35,050.00 ($8.94/Hour) – 1 person working) $25,500.00 $22,320.00 60% ($12.26/Hr $28,680.00 $31,860.00 $34,440.00 $36,960.00 $39,540.00 $42,060.00 ($10.73/Hr) – 1 person working) 80% $29,750.00 $34,000.00 $38,250.00 $42,500.00 $45,900.00 $49,300.00 $52,700.00 $56,100.00 Non-Adjusted Income Limits for Martinsville city Percentage: 50% 80% 100% 150% Income: $22,800.00 $36,480.00 $45,600.00 $68,400.00 Chief Dunn, in looking at calls for service to 900 Rives Road, the Loft Apartments I found 57 total calls for service for 2015. My research shows that only 2 Incident Based Reports were generated during 2015. The reports generated were for a simple assault and a larceny from a vehicle. I found no major violent crimes reported for the year. For an apartment complex of this size it appears that management is doing a good job of screening residents and managing their tenants. The following is a list of calls that were responded to by our officers and how many times they responded for each type call: Improperly Parked Vehicles, 15 Loud Noise, 9 Disturbance Calls, 9 Follow Up Investigation, 4 Suspicious Person, 3 Threating Phone Calls, 3 Miscellaneous,3 Larceny from Motor Vehicle,2 Warrant Service, 2 Well Being Check,2 Vandalism,1 Hit & Run,1 Domestic,1 Disorderly Conduct,1 Dog Call,1 Robert A. Turner Lieutenant Martinsville Police Department 55 West Church Street Martinsville, VA. 24112 City of Martinsville Printed From Archive File Prop Sheet: 12/07/2015 MAP# 33 (03 )B /08 ACCT# 000010800 ADDRESS 51 LESTER ST LEGAL DESCRIPTION W/S OF LESTER ST CODES Classification 15 Zoning M-2 District 3C19 Property Use MT15 Assessor JCD OWNER Name Address Date Deed Book Consid. Current FIRST UNITED METHODIST CHURCH 146 E MAIN ST MARTINSVILLE, VA 24112-2814 1/09/1998 DB 255/479 275000 Prev 1 TRUSTEES J R J INVESTMENT CORPORATION C/O BRENDA LAMBERT PO BOX 40 AXTON, VA 6/01/1989 DB 186/396 200000 Prev 2 AMERICAN FURNITURE CO INC 240 DB 096/306 Vst Date H S/D Date PlatRef B/P Date Nmber Descrption %C Tax Date Amount BOE ACTIVITY 9/06/2012 5/21/2010 GM1000001 Dte FOR SALE BARNETT Land REMARK 04/07/2014 325000 WEBSITE Impv PROPERTY DESCRIPTION BUILDING VALUATION Res'l C'cial Y 2 STR WAREHOUSE Model: M/H? Item Description Size Rate $ Value Building Characteristics 2 STR WAREHOUSE Split Level? Split Foyer? Central Heat? Cental Air? Stories 2.00 Rms Bedr. Baths F/P. Chim. Roofing BUILT UP Exterior BRICK Cond. FAIR Foundation CONC Basement NONE Flooring CONCRETE Interior C/B Fuel GAS Property Factors Pub Watr WatrFrnt No Road Paved Topo: Pub Sewr Septic Crb/Gutr Gravel Soil: Well UG Utl Sidewlk Dirt Loca: Grade Yr Assessed 2013 Yr Built 0000 Yr Remod Total Grd 1.00% Replcmnt: SUMMARY OF IMPROVEMENTS LAND VALUATION Description Size Rate Grad Dep Func Econ $ Value Description Size Rate Adj $ Value 2 STR 72400 WAREHOUSE TAXABLE: 1/2 UNDIVIDED INTEREST 97799 SF 2.841 AC VALUE = 123750 SF $68,700 1 68700.00 68700 PER MAP GM 1000001 Land 1: x 2013 2015 Land 2: x I: 68700 -0.03% 68700 1.00 L: 72400 +0.02% 72400 1.00 MKT: 141100 -0.01% 141100 Total Size: Value: 72400  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 6. Department: Finance Issue: Consider approval on second reading of an ordinance reciting the expediency of the issuance of up to $10,000,000 principal amount of water and sewer revenue bonds for the City’s sewer interceptor project. Summary: The City proposes to issue water and sewer revenue bonds for the purpose of assisting in the acquisition, construction, renovation, and equipping of sewer system repairs, replacements, and capital improvements, and for certain costs of issuance of the Bonds, all for municipal purposes not to exceed $10,000,000 in principal amount. Approval of this ordinance is required as an element of financing the project. Attachments: Copy of ordinance Recommendations: Motion to approve the ordinance on second reading with roll call vote. Future expected actions related to this issue includes approval on first reading of the Authorizing Ordinance at Council’s March 8 meeting, and conduct a Public Hearing followed by approval of the Authorizing Ordinance on second reading at the March 22nd meeting.  CITY OF MARTINSVILLE, VIRGINIA AN ORDINANCE RECITING THE EXPEDIENCY OF THE ISSUANCE OF UP TO $10,000,000 PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA, AND SETTING FORTH THE PURPOSE, IN GENERAL TERMS, FOR WHICH THE BONDS ARE TO BE ISSUED, THE MAXIMUM AMOUNT OF THE BONDS TO BE ISSUED AND THE MAXIMUM LENGTH OF TIME SUCH BONDS WILL BE OUTSTANDING Adopted on February 23, 2016 (second reading) {V0139941.1 004086-090365 } Be it Ordained by the Council of the City of Martinsville, Virginia: Section 1 - Findings and Determinations The City Council ("City Council") of the City of Martinsville, Virginia (the "City") proposes to issue bonds for the purpose of assisting in the acquisition, construction, renovation and equipping of sewer system repairs, replacements, and capital improvements, all for municipal purposes (together, the “Project”) and hereby finds and determines that: (i) the City is in need of funds to be used by the City for the Project including paying for costs of issuance of the Bonds (defined below); (ii) the obtaining of such funds will be for municipal purposes of the City, for the welfare of citizens of the City for purposes which will serve the City and its citizens pursuant to the authority of the City to provide funds for the City’s facilities for municipal purposes; (iii) the most effective, efficient and expedient manner in which to provide such funds to the City is through the issuance of water and sewer revenue bonds in an original principal amount not to exceed $10,000,000 to be issued by the City as further described herein (the "Bonds") to be used for the acquisition, construction, renovation and equipping of the Project and for certain costs of issuance of the Bonds; (iv) the issuance of the Bonds is within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness; and, (iv) the issuance of the Bonds is in the best interests of the City and its citizens. Section 2 - Description of the Bonds The City Council finds that it is expedient for the City to borrow money and issue the Bonds for the Project in a maximum amount not to exceed TEN MILLION DOLLARS ($10,000,000). The maximum length of time that the Bonds will be outstanding is thirty years. The form and details of the Bonds which are proposed to be issued will be more specifically set forth in a City Ordinance to be entitled “AN ORDINANCE AUTHORIZING THE ISSUANCE OF UP TO $10,000,000 MAXIMUM PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF, which will be introduced before the Council and considered for final passage following a public hearing on the issuance of the Bonds, as required by law. Section 3 - Further Actions Authorized The City Manager, Clerk of the Council, City Treasurer, City Attorney, Sands Anderson PC as bond counsel and all other officers, employees and agents of the City are hereby authorized and directed to take any and all such further action as shall be deemed necessary or desirable to facilitate consideration of the issuance of the Bonds. All actions of the City Manager, Clerk of the Council, City Director of Finance, City Attorney, bond counsel and all other officers, {V0139941.1 004086-090365 } employees and agents of the City in furtherance of the issuance of the Bonds and the financing of the Project are hereby approved and ratified. Section 4 - Invalidity of Sections If any section, paragraph, clause or provision of this Ordinance shall be held invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining portions of this Ordinance. Section 5 - Headings of Sections The headings of the sections of this Ordinance shall be solely for convenience of reference and shall not affect the meaning, construction, interpretation or effect of such sections of this Ordinance. Section 6 - Effective Date and Filing of Ordinance Council hereby declares in the public interest that this Ordinance shall become effective immediately upon its passage. A copy of this Ordinance, certified by the Clerk of the Council, shall be filed with the Clerk of the Circuit Court of the City of Martinsville, Virginia. {V0139941.1 004086-090365 } 2 The Members of the Council voted as follows on the foregoing Ordinance: Ayes Nays Absent Abstentions Adopted this 23rd day of February, 2016 (second reading). _________________________________ The undersigned Clerk of the City Council of the City of Martinsville, Virginia hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the City Council held on February 23, 2016, and of the whole thereof so far as applicable to the matters referred to in such extract. I hereby further certify that such meeting was a regularly called meeting and that, during the consideration of the foregoing Ordinance, a quorum was present. Dated this _____ day of February, 2016. ________________________________________ Clerk, City Council of City of Martinsville, Virginia {V0139941.1 004086-090365 } 3  City Council Agenda Summary Date: February 23, 2016 Item No: 7. Department: City Manager Issue: Hear information regarding a proposed resolution directed to the Federal Energy Regulatory Commission (FERC) concerning the Prairie State Energy Campus project. Summary: At the February 9 Council meeting, Mayor Turner presented a proposed resolution for adoption by Council, to be sent to FERC along with related Council comments pertaining to the announced sale of Peabody Energy’s 5.06% interest in the Prairie State Energy Campus project. Council requested staff to review the proposed resolution and report back at the February 23 meeting. Attachments: Copy of the proposed resolution. Recommendations: Additional information continues to be gathered and a report/review will be given at the meeting.  City Council Agenda Summary Date: February 23, 2016 Item No: 8. Department: City Manager Issue: Hear a presentation regarding development of an asset management plan for water and sewer. Summary: During the FY16 budget process, a brief presentation was made regarding an asset management plan being developed by the City with assistance from Draper Aden Associates. The water and sewer asset management plan has been completed and a brief presentation will be made summarizing key features of the plan, and how the plan will be used in the future. Attachments: None. Information will be presented at the meeting. Recommendations: This item is being presented for information purposes. No Council action is required.  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 9. Department: Finance Issue: Adoption of Investment Policy Summary: A written investment policy is the most important element in a public funds investment program. The essential purpose of government investment is to maximize interest income while preserving principal and maintaining sufficient liquidity to meet expenditure obligations. It describes the parameters for investing a government’s excess funds to achieve this goal, providing important direction to those charged with carrying out the policy. It provides the quality of decisions and demonstrates to rating agencies and the public that the government entity is well managed and is earning interest income suitable to its situation and economic environment. Therefore, as part of the City’s continuing efforts to adopt standard policies and procedures, and in order to meet significant factors for bond rating agencies and grant criteria, staff presents this policy for adoption by Council. Attachments: Investment Policy 2-23-16 Recommendations: Adoption of Policy  City of Martinsville Investment Policy Section 1. PURPOSE This policy is to document the investment strategy objectives of the City of Martinsville (“City”) and define the allowable investments and restrictions that must be followed by the City, as set forth by City Code and Commonwealth of Virginia Statutes. Section 2. POLICY A. In recognition of its fiduciary roll in the management of all City funds entrusted to its care, it shall be the policy that all funds be invested with the care, skill, prudence, and diligence to ensure that sound investments are made to protect the City’s financial position and provide for ample returns on the investments. B. The Virginia Security for Public Deposits Act regulates all deposits made by Treasurers. C. It is the responsibility of the Treasurer and the Finance Director to manage the investment program of the City such that the City meets or exceeds all statutes and guidelines governing the deposit and investment of public funds in Virginia, including the Investment Code of Virginia and the guidelines established by the State Treasury Board and the Governmental Accounting Standards Board (GASB). In addition, the City will comply with all provisions relating to the investments and deposits included in any Bond Indenture, Financing Agreement, or similar document. The investment officials should not engage in or profit from personal or business activities that are directly related to and could affect their decisions and responsibilities as investors of government funds. D. Investment officials acting within the scope of statutory authority and the terms of the investment policy are indemnified for their actions. E. The Treasurer will prepare reports to show the balance of all investment accounts. Section 3. OBJECTIVES A. The primary objectives of the investment strategy, listed in priority order, shall be as follows: 1. Safety – safety of principal is the foremost objective of the investment program. 2. Liquidity – the investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. Yield (Return on Investment) – the investment portfolio shall be designed with the objective of attaining a market rate of return throughout the budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Section 4. ALLOWABLE INVESTMENTS A. The following investment types are approved for use by the Treasurer in the investment of public funds, provided that the provisions of any Bond Indenture, Financing Agreement, or similar document are also satisfied: 1. U.S. Treasury Bills, Notes, Bonds, and other direct obligations of the United States Government. 2. U.S. Government agencies and instrumentality obligations that have a liquid market with a readily determinable market value. 3. Certificates of deposit or other deposits of financial institutions located within the Commonwealth and state-chartered banks under Commonwealth supervision provided such deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and collateralized as provided by the Virginia Security for Public Deposits Act. 4. U.S. dollar denominated Banker’s acceptances issued by a domestic bank, provided, however, that such financial institutions and state-chartered banks are rated by Moody’s Investor Services as P-1 or better and by Standard & Poor’s as A-1 or better. 5. Taxable obligations of the Commonwealth of Virginia and of its local governments and public bodies provided such obligations have a debt rating of at least “AA” or equivalent by Moody’s and/or Standard & Poor’s.  6. Repurchase agreements executed through Federal Reserve Member banks or Primary Dealers in U.S. Government Securities and collateralized by Treasury or Agency obligations, the market value of which is at least 102% of the purchase price of the repo. 7. The Commonwealth of Virginia Treasury Department’s Local Government Investment Pool (“LGIP”) and the Virginia State Non-Arbitrage Program. Section 5. DEPOSITS All City deposits are required to be insured under the Federal Deposit Insurance Corporation (FDIC) and collateralized and structured under the Virginia Security for Public Deposits Act, Section 2.2-4400 et seq. of the Code of Virginia. Local Treasurers are required to deposit all funds received as promptly as practical after receipt. Such deposits are to be made in the name of the City in a bank or savings and loan association authorized to act as depository therefore. Section 6. MATURITY RESTRICTIONS A. It is recognized that, prior to maturity date, the market value of securities in the City’s portfolio may fluctuate due to changes in market conditions. In accordance with the City’s primary investment objectives of liquidity and preservation of principal, every effort should be made to manage investment maturities to precede or coincide with the expected need for funds. B. Accordingly, the requirements established by the Code of Virginia and State Treasury Board guidelines are further restricted as follows: 1. Funds shall be invested at all times in keeping with the seasonal pattern of the City’s cash balances, as well as any other special factors or needs, in order to assure the availability of funds on a timely and liquid basis. Cash flow projections will be monitored and updated on an ongoing basis by the Treasurer and Finance Director. 2. The portfolio must be invested in securities maturing within five (5) years. If an investment may be redeemed by the City for its intended purpose without penalty within five (5) years, such investment shall be deemed in compliance with this maturity restriction. 3. Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding five (5) years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. Section 7. PROHIBITED SECURITIES Any security not specifically authorized in this Investment policy is expressly prohibited. Section 8. ADDITIONAL REQUIREMENTS & REVISIONS A. All securities purchased for the City shall be held by the City’s Treasurer, and must be in the City’s name. B. It is the City’s policy to require dual signatures for any cash transfers. The individuals authorized to transfer funds shall be those listed on the actual accounts. Renewal or “rollover” investment transactions may be authorized by the Treasurer and communicated to the Finance Director. C. Any modifications to this Investment policy shall be approved by the governing body of the City.  City Council Agenda Summary Meeting Date: February 23, 2016 Item No: 10. Department: Finance Issue: Appropriation Approvals Summary: The attachment amends the FY16 Budget with appropriations in the following fund: General: $ 18,533 – Recovered Costs Attachments: Consent Agenda 2-23-16 Recommendations: Approve  BUDGET ADDITIONS FOR 2/23/16 ORG OBJECT DESCRIPTION DEBIT CREDIT FY16 General Fund: 01100909 490137 Recovered Costs - Public Safety 18,533 01311085 501200 Police Dept - Overtime 3,381 01311085 502100 Police Dept - Social Security 210 01311085 502110 Police Dept - Medicare 49 01331108 501200 Sheriff Corrections - Overtime 13,834 01331108 502100 Sheriff Corrections - Social Security 858 01331108 502110 Sheriff Corrections - Medicare 201 Recovery of Off-duty Coverage Law Enforcement Total General Fund: 18,533 18,533