City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 6:30 pm Closed session 7:30 pm Regular session Tuesday, March 8, 2016 6:30 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. Appointments to Boards and Commissions as authorized by Subsection 1. b. 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. 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- Council Member Stroud 1. Consider approval of minutes of the February 23, 2016 Meeting. (2 mins) 2. Hear an update from Amanda Witt of the M-HC Chamber of Commerce regarding the Community Business Launch project (10 mins) 3. Hear information regarding GO Virginia and the designation of regional councils across the state (10 mins) 4. Hear an update from the City’s Human Resources Office regarding hiring trends (10 mins) 5. Hear a presentation from the Police Department regarding their 2015 Annual Report (10 mins) 6. Hear a presentation from Community Development staff regarding the City’s Architectural Review Board and Historic District designation (20 mins) 7. Hear a staff update regarding City purchasing policies and procedures (10 mins) 8. Consider approval on first reading of an ordinance authorizing the issuance of up to $10,000,000 principal amount of water and sewer revenue bonds of the City of Martinsville, Virginia and providing for the form, details, and payment thereof, related to the City’s sewer interceptor project (10 mins) 9. Consider approval of consent agenda (2 mins) 10. Comments by members of City Council. (5 minutes) 11. Comments by City Manager. (5 minutes) 12. 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: March 8, 2016 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from February 23, 2016 Council Meeting. Summary: None Attachments: February 23, 2016 Meeting minutes Recommendations: Motion to approve minutes as presented. February 23, 2016 The regular meeting of the Council of the City of Martinsville, Virginia, was held on February 23, 2016, in Council Chambers, Municipal Building, at 7:30 PM, Closed Session beginning at 7:00pm. Council Members present included: Danny Turner, Gene Teague, Sharon Brooks Hodge, Jennifer Bowles and Mark Stroud. Staff present included: City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts, City Attorney Eric Monday, Finance Director Linda Conover, Budget Analyst Mary Prillaman, Public Works Director Jeff Joyce, Director of Electric Durwin Joyce and Police Chief Sean Dunn. Vice Mayor Bowles 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 a motion by Mayor Turner, seconded by Council Member Hodge, with the following 5-0 recorded vote: Vice Mayor Bowles, aye; Council Member Stroud, aye; Council Member Teague, aye; Mayor Turner, aye; and Council Member Hodge, aye; Council convened in Closed Session for the purpose of discussing the following matters: (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, and (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 the Session. On a motion by Turner, seconded by Hodge, with the following 5-0 recorded vote in favor to return to Open Session: Mayor Turner, aye; Council Member Teague, aye; Vice Mayor Bowles, aye; Council Member Hodge, aye; Council Member Stroud, aye. Following the invocation by Vice Mayor Bowles and Pledge to the American Flag, Bowles welcomed everyone to the meeting. Consider approval of minutes from the February 9, 2016 meeting – on a motion by Council Member Stroud and seconded by Council Member Hodge with a 5-0 vote in favor, Council approved the February 9, 2016 minutes as presented. Recognize City Employees who are eligible for Service Awards – January 1 through March 31, 2016 – City Manager Towarnicki recognized the following employees for their years of service. He congratulated them and thanked them for their service. February 23, 2016 Consider presentation of a Joint Proclamation with Henry County, recognizing Martinsville/Henry County General District Court Judge Edwin A. Gendron, Jr. on his retirement – Vice Mayor Bowles read the proclamation recognizing Judge Gendron. Judge Gendron said it was an honor and a pleasure to serve as Judge in the City court and he had enjoyed working with the staff. 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 – public hearing was opened with no response and then convened to a future date. Hear a presentation regarding development of an asset management plan for water and sewer – City Manager Towarnicki summarized the asset management plan and its benefit to the City. When the plan is developed, it will continuously be updated and used as a tool for February 23, 2016 budgeting. He introduced Lori Kroll of Draper Aden. Mrs. Kroll said it was an honor to present Council with a progress report of the asset management plan. Asset management is an important tool in planning the future infrastructure of the City. Ms. Kroll presented a PowerPoint detailing the asset management program including local need, stages of implementation, asset management process, state of assets, levels of service, criticality, life cycle costs and long term fundraising strategy. Mrs. Kroll provided the updated plan which was shared with Council Members digitally. The plan will need to be updated yearly. Council Member Teague stated that he appreciated the plan but felt that it will be a difficult thing to cut jobs or ask residents for a tax increase to fund future repairs. Most of the projects previously and currently are handled on an “as needed” basis. Hodge said her first year on Council she expressed concern on how profits were spent on other things instead of reinvesting in infrastructure. She asked if this plan is focusing on new projects that will need repair in the future or is the focus on current issues that need repair soon. Kroll said the asset management program focuses on both. Kroll said this program is a mechanism to educate the public on City needs. Bowles stated that she feels this is a common sense plan and she fully supports it. She thanked Andy Lash for working on the computer program to support asset management details. Kroll said the focus has been on water and sewer so far but the next step is to work more closely with Public Works projects. Stroud agreed that the asset management program is a good plan and he felt encouraged that Martinsville is the first community in Virginia to present an asset management plan to DEQ. He agreed that Mr. Lash is an asset to the City. Hear an update from Community Development staff regarding the Northside Community Development Block Grant project - Wayne Knox provided an update on the Northside Grant project. Recently there was an interim compliance review which resulted in a good review but he stated that the project is progressing slower than scheduled due to lack of property owner response. The design work on Franklin Street and Dillard Street is complete and once contractors begin on Franklin Street then that area will be closed to thru traffic. He updated Council on properties that are to be remodeled or rebuilt. Hodge stated that a concern was that one of the contractors was behind. Knox confirmed that they have spoken to the contractor and rehab people and he feels that issue had been resolved. Hodge asked about the deficit from previous block grants and how they plan to prevent that from happening again. Knox says that little money has been spent and that the Finance department is monitoring it. Mr. Knox said completion date is expected by January 23, 2017. 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 – City Manager Towarnicki summarized the project funding. There are two more actions that will need to occur at the March meetings. A motion was made February 23, 2016 by Council Member Teague to approve on second reading of the ordinance, motion was seconded by Council Member Hodge with a 5-0 recorded vote: Hodge, aye; Bowles, aye; Stroud, aye; Teague, aye; and Turner, aye. Hear information regarding a proposed resolution directed to the Federal Energy Regulatory Commission (FERC) concerning the Prairie State Energy Campus project – City Manager Towarnicki referred to the copies provided to Council about the proposed resolution presented by Mayor Turner at the February 23, 2016 Council Meeting. Towarnicki said there was significant research done since the previous meeting and pointed out some discrepancies and differences. Hodge asked Towarnicki to further explain how he came up with the numbers. Mayor Turner disagreed with some of the information Towarnicki provided, stating February 23, 2016 that the City cannot sell without taking a loss. Teague says the City has only committed to purchasing power and said that he would support the revised resolution only because it is for assessment only. Vice Mayor Bowles read the resolution. Council Member Hodge made a motion to approve the resolution concerning the Prairie State Energy Campus Project, Mayor Turner seconded the motion with all Council Members voting in favor. February 23, 2016 Consider adoption of a City Investment Policy – Linda Conover explained the Investment Policy. She said this policy does not change anything they currently do, it just explains the procedure they already follow. Teague asked to make a suggestion to Item E on Page 1, February 23, 2016 requesting the Treasurer provide the investment reports to Council going forward. Hodge asked if we “shop” for best rates, Conover confirmed that the City sends out a request for proposals so they can lock in the best deals. A motion was made by Council Member Teague to adopt the Investment Policy with the requested change, Mayor Turner seconded the motion with all Council Members voting in favor. 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. Comments by members of City Council – Hodge attended the business matchmaking event, stating that it was a good event and she wanted to commend the EDC for a good job. She asked the City Manager to provide a report of how the City works with other local businesses. Teague mentioned Fast Track March 1 and 2, 2016 and said it’s a successful event for the community and noted the new location. Turner recognized Lonnie Carter who February 23, 2016 passed away earlier in the day. Turner asked if Martinsville was a community where the residents could pay for tickets with canned goods. Monday said he didn’t believe we had the authority to accept any other forms of payment other than cash. Hodge mentioned the fee added to a traffic ticket that went towards equipment for patrol cars and asked for research on how that would work. Bowles congratulated the Martinsville Bulldogs on their win. She talked about Black History month and recognized previous African American City employees who had worked in the Police Department and School Board. She encouraged the younger generation to talk to their elders and learn their history. The Millinials of Martinsville and Henry County are close to their goal for the Flint Michigan donation. Comments by City Manager – Towarnicki mentioned that the City has two booths at the trade show including MiNET, Water Department and Fire Department at one and the Police Department at the other. Applications for the Start-Up Martinsville program received 18 applications. Those have been reviewed and boot camp classes begin February 25, 2016. He said at least 15 of those applicants were invited to attend the classes and awards would be made at the end of the program. City Attorney – City Attorney Monday addressed the bill that was referred to by Mayor Turner. Delegate Marshall put into the bill to authorize the creation of land bank authorities to manage delinquent or blighted properties. Business from the Floor (not televised) – Dianne Ennis, 1216 Knollwood Place – wanted to thank Council for putting the asset management plan together. There being no further business, a motion was made by Council Member Teague to adjourn the meeting, seconded by Council Member Hodge with all Council Members voting in favor. The meeting adjourned at 9:09pm. ______________________________________ ______________________________________ Karen Roberts Danny Turner Clerk of Council Mayor  City Council Agenda Summary Date: March 8, 2016 Item No: 2. Department: City Manager Issue: Hear an update from Amanda Witt of the M-HC Chamber of Commerce regarding the Community Business Launch project. Summary: Information will be provided regarding activities either completed or currently underway regarding the Community Business Launch project. Attachments: None Recommendations: No action needed - presented for information purposes only.  City Council Agenda Summary Date: March 8, 2016 Item No: 3. Department: City Manager Issue: Hear information regarding GO Virginia and the designation of regional councils across the state. Summary: The Virginia Initiative for Growth and Opportunity in Each Region (GO Virginia) was initiated by the Virginia Business Higher Education Council (VBHEC) and the Council on Virginia’s Future to foster private-sector growth and job creation through state incentives for regional collaboration by business, education, and government. Recognizing the harsh effect of deep federal budget cuts on a Virginia economy that is overly dependent on public-sector jobs, business leaders formed the GO Virginia campaign to work for regional cooperation on private-sector growth, job creation, and career readiness. The coalition favors state incentives to encourage effective collaboration among business, education, and government in each region, providing a framework for implementation of the private sector-focused strategies of leading business organizations and political leaders. The GO Virginia coalition is waging a statewide grassroots campaign to mobilize business and community leaders, partners in education and government, and interested citizens to work for state policies that will help secure a future of expanding opportunity for all Virginians. An important element of GO Virginia is the formation of 8 to 10 regional councils across the state, ideally grouped along similarities in transportation, economy, demographics, and other key regional interests. At the WPPDC Board meeting on February 25, the Board discussed the alignment of localities within the West Piedmont Planning District with possible options related to regional council formation. The matter is being placed on Council’s agenda for March 8 for further discussion. Attachments: Various materials related to this discussion Recommendations: No action required although it would be appropriate for Council to communicate to WPPDC its preferred regional council alignment. February 17, 2016 WPPDC/ P ( 16) 14 WEST PIEDMONT PLANNING DISTRICT COMMISSION Go Virginia Update: Regional Council Geographic Designations Background The Virginia Initiative for Growth and Opportunity in Each Region ( GO Virginia) was initiated by the Virginia Business Higher Education Council ( VBHEC) and the Council on Virginia' s Future to foster private- sector growth and job creation through state incentives for regional collaboration by business, education, and government. Recognizing the harsh effect of deep federal budget cuts on a Virginia economy that is overly dependent on public- sector jobs, business leaders formed the GO Virginia campaign to work for regional cooperation on private- sector growth, job creation, and career readiness. At this time, it appears the General Assembly is in the process of approving somewhere in the neighborhood of $ 39 million in state incentives to encourage effective collaboration among business, education, and government in each region, providing a framework for implementation of the private sector-focused strategies of leading business organizations and political leaders in both parties. A key component of the effort will be the designation of regional councils tasked with reviewing proposals. It is envisioned that planning districts will work closely with and provide staff support to these regional councils which will have a majority of private sector appointees. A key consideration for the WPPDC and other planning districts is the geographical alignment with other localities in neighboring regions. Staff seeks the input from the Commission on this issue. Board Consideration Thursday, February 25, 2016, at 7: 00 pm at the offices of the West Piedmont Planning District Commission, 1100 Madison Street, Martinsville, VA David R. Hoback Executive Director  vl i 0 u a) I - Y N NI 0 o C v L I a) a) QJ N 0 0 C co O O al 0 0 Y 0 0. T C O --, a)- 0 0 7 4- 0. O O O C c Yo N a 0 a) ca L 4J Q O Q L V u cu a Q 0 O 0 u N W Q E E OC 0 o C CD 3 C a) 0 N L co E L. O Z E LA P.9 H O C as C O EN N O c Cr.) 0 u CD Ea a) J O Y L V NI a) 0 a) Y oO a)C o 0 0 0 u D C co . 0 co v.. O 0 0 0 O CC J 2 a Q N C I 0 a HC0 CC a CO v a— c ra fO a) a C c c 0 m 0 t 3 d N L 0. N O O 4:° O O d N V1 O 0. 2 a O— o 7 t an v— o? j O t 0 d, d I yl N N c N a CO o co a O O 0 O. a) L D CL) a o To. O C ° O N 02S . CI) 0 c , nI _ C CO N C— v N 4-. 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IIIIIIII Millin o E 0 IF 0 ;- \ '£\ S 2 « Q VI E §— 3 , 3E' a CU E CO co S 7 CU 2 0 o c 3 2 o a $ R \ E 2 k . k  1 z Zz LN M CL I-U J CC Iv, Ca ++ Cm • 4. 0 C 0 t L 4mi •— N o N N M z Q i a o o N z0 U N_ E a c E to I cc E 13 a o c.9 UU•— 0) ••— z c z z i r., H a W U CLCL s L 0 kci N p E LI- C s W z CLO a) ao n w Z E Z z E u+ z o m a a E u 0 vv) 0 O a) N z o F r- i D co CO 0 o ra ON Q U Z 0 O C o C v, W V CO COCO U z vI I-Z co w z hi s z n' J v) C 0 2 z O• O U U  City Council Agenda Summary Date: March 8, 2016 Item No: 4. Department: Human Resources Issue: Hear an update from the City’s Human Resources Office regarding hiring trends. Summary: Information will be provided regarding hiring trends related to efforts to fill vacant positions within the City’s workforce. Attachments: None Recommendations: No action needed - presented for information purposes only.  City Council Agenda Summary Date: March 8, 2016 Item No: 5. Department: Police Issue: Hear a presentation from the Police Department regarding their 2015 Annual Report. Summary: The Police Department has compiled information regarding departmental activities for calendar year 2015 into an annual report format and will present the information at the March 8 Council meeting. Attachments: None. Information will be presented at the meeting. Recommendations: This item is being presented for Council and public information purposes. No Council action is required.  City Council Agenda Summary Date: March 8, 2016 Item No: 6. Department: Community Development Issue: Hear a presentation from Community Development staff regarding the City’s Architectural Review Board and Historic District designation. Summary: Community Development staff will present information on the City’s Architectural Review Board (ARB) – the history of the ARB; Historic District designations; and the impact the ARB/Historic District designations have had since inception. Attachments: None. Information will be presented at the meeting. Recommendations: This item is being presented for Council and public information purposes. No Council action is required.  City Council Agenda Summary Date: March 8, 2016 Item No: 7. Department: Finance Department Issue: Hear a staff update regarding City purchasing policies and procedures. Summary: Information will be provided regarding the policies and procedures related to City purchasing. The City annually purchases thousands of dollars of materials, goods, supplies, services, professional services, and construction services. Frequent inquiries are made regarding how the City’s purchasing process works, and whether it is possible to direct more purchasing to in-City vendors. Purchasing staff will provide information on current operations as well as how interested vendors can access City purchasing needs and requirements. Attachments: None Recommendations: No action needed - presented for information purposes only.  City Council Agenda Summary Meeting Date: March, 8, 2016 Item No: 8. Department: Finance Issue: Consider approval on first reading of an ordinance authorizing the issuance of up to $10,000,000 principal amount of water and sewer revenue bonds of the City of Martinsville, Virginia and providing for the form, details, and payment thereof, related to 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 and Financing Agreement Recommendations: Motion to approve the ordinance on first reading with roll call vote. Future expected actions related to this issue includes conducting a Public Hearing followed by approval of the Authorizing Ordinance on second reading at the March 22nd meeting.  CITY OF MARTINSVILLE, VIRGINIA AN ORDINANCE AUTHORIZING THE ISSUANCE OF UP TO $10,000,000 PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF Adopted on March 8, 2016 (first reading) {V0140381.1 004086-090365 }  Be it Ordained by the Council of the City of Martinsville, Virginia: Section 1 Definitions Unless the context shall clearly indicate some other meaning, the following words and terms shall for all purposes of the Ordinance and of any certificate, resolution or other instrument amendatory thereof or supplemental thereto for all purposes of any opinion or instrument or other documents therein or herein mentioned, have the following meanings: “Act” shall mean the Public Finance Act, Chapter 26, Title 15.2 of the Code of Virginia of 1950, as amended. “Bond” or “Bonds” shall mean the City’s Water and Sewer Revenue Bond, Series 2016, in the aggregate principal amount of up to $10,000,000, authorized to be issued hereunder. “Bond Counsel” shall mean Sands Anderson PC or another attorney or firm of attorneys nationally recognized on the subject of municipal bonds selected by the City. “City” shall mean the City of Martinsville, Virginia. “City Charter” shall mean the City Charter of the City of Martinsville, Virginia, as amended. “Clerk” shall mean the Clerk of the Council or the Deputy Clerk of the Council. “Commonwealth” shall mean the Commonwealth of Virginia. “Council” shall mean the City Council of the City of Martinsville. “Financing Agreement” shall mean the Financing Agreement between VRA and the City related to issuance of the Bond for the financing of the Project. “Fund” shall mean the Virginia Water Facilities Revolving Fund. “Mayor” shall mean the Mayor or Vice Mayor of the City. “Paying Agent” shall mean the City Treasurer acting as Paying Agent for the Bond hereunder or the successors or assigns serving as such hereunder. “Project” shall mean specifically the acquisition, construction, renovation and equipping of sewer system repairs, replacements, and capital improvements, all for the City’s municipal purposes. {V0140381.1 004086-090365 } 1  “Registrar” shall mean the Paying Agent, or the successors or assigns serving as such hereunder. “System” shall mean the City’s water and sewer system. “VRA” shall mean the Virginia Resources Authority, as administrator of the Fund. Section 2 Findings and Determinations The Council hereby finds and determines that (i) the City is authorized to acquire, construct, operate and maintain water and sewer systems in the City (together, the “System”), which System is a revenue producing undertaking of the City (ii) the City is in need of funds to be used for the purposes of financing capital improvements, specifically the acquisition, construction, renovation and equipping of the Project, including payment of costs of issuance of the Bond; (iii) 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 and otherwise support the activities of the City and the City’s municipal purposes; (iv) the most effective, efficient and expedient manner in which to provide such funds to the City is through the issuance of a water and sewer revenue bond, Series 2016, in an aggregate original principal amount not to exceed $10,000,000 to be issued by the City as further described herein to be sold to VRA as administrator of the Fund, which has offered to purchase the same on certain terms and conditions pursuant to a commitment letter dated as of February 18, 2016 and the Financing Agreement (as defined herein); (v) the issuance of the Bond is within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness; (vi) the Project constitutes a water or waste system within the meaning of Title 15.2, Chapter 51, Section 15.2-5101, of the Code of Virginia, 1950, as amended (the “Virginia Code”) and a wastewater treatment (including sewage and wastewater collection) facility within the meaning of the term “Project” as defined in Section 62.1-224 of the Virginia Code, (vii) the Council desires to issue the Bonds under the provisions of the Act and the City Charter, and a duly advertised and conducted public hearing has been held with respect to the Bonds on March 22, 2016 and, (viii) the issuance of the Bond is in the best interests of the City and its citizens. The maximum length of time that the Bond will be outstanding is thirty years from the date of issuance of the Bond. The Council further hereby finds and determines that the probable useful life of the Project financed by the Bond is thirty years and that the Bond is payable and shall mature within the probable useful life of the Project. Section 3 Authorization, Form and Details of the Bond The Project, which shall constitute a part of the System, is hereby approved and the City is authorized to issue not more than $10,000,000 principal amount of water and sewer revenue bonds, Series 2016 (the “Bonds”) pursuant to the City Charter and under the Act. The Bonds shall mature no later than thirty (30) years from the date of their issuance and the Bonds shall not bear interest. The Bonds shall be issued in fully registered form, shall mature or be subject to {V0140381.1 004086-090365 } 2 mandatory sinking fund redemption on such dates and in such amounts as the City Manager or Assistant City Manager may approve and shall be subject to such optional and other redemption provisions as the City Manager or Assistant City Manager may approve. The proceeds from the sale of the Bonds shall be used to finance the Project. The Bonds shall be issued to VRA, as administrator of the Fund, pursuant to the terms, conditions and provisions of this Ordinance and the Financing Agreement and upon such other terms as may be determined in the manner set forth in this Ordinance. The issuance and sale of the Bonds in one or more series from time to time in accordance with this Ordinance is authorized. The Bonds shall be in substantially the form herein, with such appropriate variations, omissions and insertions as are permitted or required by this Ordinance and by the VRA. The Bonds shall be executed, for and on behalf of the City, by the Mayor or the Vice- Mayor of the City, either of whom may act, and shall have the corporate seal of the City impressed thereon, attested by the Clerk or Deputy Clerk of the City. The manner of execution and affixation of the seal may be by facsimile, provided, however that if the signatures of the Mayor or Vice Mayor are by facsimile, the Bonds shall not be valid until signed by the manual signature of the Clerk or Deputy Clerk. The Bonds shall be in substantially the form herein, with such variations, insertions or deletions as may be approved by the officer executing the Bonds on the City’s behalf. The City Treasurer is hereby appointed as the Registrar for the Bonds. “FORM OF BOND” ISSUE DATE: __________ _____, 2016 UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA $10,000,000 Water and Sewer Revenue Bond, Series 2016 THE CITY OF MARTINSVILLE (the “Borrower”), a public body politic and corporate of the Commonwealth of Virginia, acknowledges itself indebted and for value received, hereby promises to pay, solely from the revenues and other property hereinafter described and pledged to the payment of this Bond, to the order of Virginia Resources Authority (VRA), as Administrator of the Virginia Water Facilities Revolving Fund (the “Fund”), Richmond, Virginia, or registered assigns or legal representatives, the sum equal to the amount of principal advances made hereunder but not to exceed Ten Million and 00/100 Dollars ($10,000,000.00), with interest on the disbursed and unpaid principal balance from the date of each disbursement until payment of the entire principal sum. This Bond shall not bear interest. Commencing on ________ __, 20__, and continuing semi-annually thereafter on ________ 1 and __________ 1 in each year, principal due under this Bond shall be due and {V0140381.1 004086-090365 } 3 payable in equal installments, with a final installment due and payable on ____________, 20__, when, if not sooner paid, all amounts due hereunder shall be due and payable in full provided however, that if principal advances up to the maximum authorized amount are not made, the principal amount due on this Bond shall not include such undisbursed amount. However, unless the Borrower and VRA agree otherwise in writing, until all amounts due hereunder shall have been paid in full, less than the full disbursement of the maximum authorized amount hereunder shall not postpone the due date of any semi-annual installment due hereon, or change the amount of such installment. In addition, if any installment of principal is not received by the holder of this Bond within ten (10) days from its due date, the Borrower shall pay into the Fund, a late payment charge in an amount equal to five percent (5.0%) of such overdue installment. Principal is payable in lawful money of the United States. No notation is required to be made on this Bond of the payment of any principal on normal installment dates. HENCE, THE FACE AMOUNT OF THIS BOND MAY EXCEED THE PRINCIPAL SUM REMAINING OUTSTANDING. THIS BOND IS A LIMITED OBLIGATION OF THE BORROWER AND IS PAYABLE SOLELY FROM CERTAIN REVENUES TO BE DERIVED FROM THE OWNERSHIP OR OPERATION OF THE BORROWER’S WATER AND WASTEWATER SYSTEM AS THE SAME MAY FROM TIME TO TIME EXIST, WHICH REVENUES HAVE BEEN PLEDGED PURSUANT TO THE FINANCING AGREEMENT (HEREINAFTER DEFINED) TO SECURE THE PAYMENT THEREOF. NEITHER THE COMMONWEALTH OF VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE BORROWER, SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF THIS BOND OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES PLEDGED THEREFOR, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE BORROWER IS PLEDGED TO THE PAYMENT OF PRINCIPAL OF THIS BOND OR OTHER COSTS INCIDENT THERETO. This Bond is issued pursuant to the terms of the Financing Agreement between the Borrower and VRA dated as of March 1, 2016 (the “Financing Agreement”) to evidence a loan by VRA to the Borrower to finance the Project Costs (as defined in the Financing Agreement). The obligations of the Borrower under this Bond and the Financing Agreement shall terminate when all amounts due and to become due pursuant to this Bond and Financing Agreement have been paid in full. Reference is hereby made to the Financing Agreement and any amendments thereto for the definitions and provisions, among others, describing the pledge and covenants securing this Bond, the nature and extent of the security, the terms and conditions upon which this Bond is issued, and the rights and obligations of the Borrower and the holders of this Bond. {V0140381.1 004086-090365 } 4  The pledge of Revenues, as defined in the Financing Agreement, toward payment of the Bond in accordance with the terms of the Financing Agreement shall be on parity with the pledge of Revenues securing the Existing Parity Bonds, if any, as defined in the Financing Agreement and set forth on Exhibit F thereto. The Borrower may incur additional indebtedness secured by a pledge of the Revenues pursuant to the terms of the Financing Agreement. Transfer of this Bond may be registered upon the registration books of the Bond Registrar. Prior to due presentment for registration of transfer, the Bond Registrar shall treat the registered owner as the person exclusively entitled to payment of principal and the exercise of all other rights and powers of the owner. This Bond is subject to optional prepayment to the extent and on the terms set forth in the Financing Agreement. If an Event of Default (as defined in the Financing Agreement) occurs, the principal of this Bond may be declared immediately due and payable by the holder by written notice to the Borrower. Notwithstanding anything in this Bond to the contrary, in addition to the payments of the principal provided by this Bond, the Borrower shall also pay such additional amounts, if any, which may be necessary to provide for payment in full of all amounts due under the Financing Agreement. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this Bond have happened, exist and have been performed. IN WITNESS WHEREOF, the Borrower has caused this Bond to be signed by its Mayor or Vice-Mayor, to be attested by the Clerk of the City Council, its seal to be affixed hereto and to be dated as of _______ __, 2016. CITY OF MARTINSVILLE, VIRGINIA SEAL By: ___________________________ Name: ________________________ Title: Mayor ATTEST: ________________________________ Clerk of the City Council {V0140381.1 004086-090365 } 5  ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto ____________________ whose address for registration purposes is _______________________ _____________________________________ the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints _______________________ to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Tax I.D. No. Dated:_______________________________ Transferee: _______________ Signature Guaranteed _____________________________ _____________________________ (NOTE: the signature above must correspond with the name of the Registered Owner as it appears on the front of this Bond in every particular, without alteration or enlargement or any change whatsoever.) {V0140381.1 004086-090365 } 6  SCHEDULE OF PRINCIPAL ADVANCES The amount and date of principal advances not to exceed the face amount hereof shall be entered hereon by an authorized representative of the Virginia Resources Authority, as Administrator of the Fund, when the proceeds of each such advance are delivered to the Borrower. Amount Date Authorized Signatures If any Bond has been mutilated, lost, stolen, or destroyed, the City shall execute and deliver a new Bond of like date and tenor in exchange and substitution for, and upon delivery to the Registrar and cancellation of, such mutilated Bond, or in lieu of and in substitution for such lost, stolen, or destroyed Bond; provided, however, that the City shall execute, authenticate, and deliver a new Bond only if its registered owner has paid the reasonable expenses and charges of the City in connection therewith and, in the case of a lost, stolen, or destroyed Bond (i) has filed with the Registrar evidence satisfactory to him or her that such Bond was lost, stolen, or destroyed and that the holder of the Bond was its registered owner and (ii) has furnished to the City indemnity satisfactory to the Registrar. If the Bond has matured, instead of issuing a new Bond, the City may pay the Bond without surrender upon receipt of the aforesaid evidence and indemnity. Section 4 Pledge of Water and Sewer Revenues The Bond shall be a limited obligation of the City and, except to the extent payable from the proceeds of the sale of the Bond or the income, if any, derived from the investment thereof, is payable exclusively from the Revenues (as defined in the Financing Agreement) of the City’s System which the City hereby pledges to the payment of the Bond pursuant to the terms of the Financing Agreement. The pledge of the Revenues securing the Bond shall be on parity with any Parity Bonds (as defined in the Financing Agreement) secured by such Revenues. {V0140381.1 004086-090365 } 7 Section 5 Application of Proceeds; Sale of Bond Proceeds derived from the sale of the Bond together with other monies available therefor shall be used to pay the costs of issuance and for the purposes specified in Section 2 of this Ordinance and otherwise used in accordance with the provisions of this Ordinance or an opinion of Bond Counsel. Section 6 Further Actions Authorized; Approval of Documents The Financing Agreement will be in substantially the form presented to and filed with the minutes of the meeting of this City Council at which this Ordinance is being adopted. The form of the Financing Agreement and the terms, conditions and provisions thereof are hereby approved by this City Council, and the Mayor, or City Manager, any of whom may act, are hereby authorized and directed to execute and deliver to the VRA the Financing Agreement in substantially such form, with such changes and amendments as the officer executing the same shall approve or as shall be necessary to satisfy VRA requirements, such approval to be conclusively evidenced by his execution and delivery thereof. The Mayor, City Manager, City Finance Director, City Treasurer, City Clerk, bond counsel for the City and all other appropriate officers and employees of the City shall take all actions and execute all certificates and documents as shall be necessary to carry out the provisions of this Ordinance. All other actions of City officials in conformity with the purposes and intent of this Ordinance and in furtherance of the issuance and sale of the Bonds as authorized herein are ratified, approved and confirmed. City officials are authorized and directed to execute and deliver all certificates and other instruments considered necessary or desirable in connection with the issuance, sale and delivery of the Bonds pursuant to this Ordinance and the Financing Agreement and to do all acts and things necessary or convenient to carry out the terms and provisions of such documents. All ordinances, resolutions and proceedings in conflict herewith are, to the extent of such conflict, repealed. This Ordinance shall constitute the “Local Resolution” as such term is defined in Section 1.1 of the Financing Agreement. Section 7 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. {V0140381.1 004086-090365 } 8 Section 8 Headings of Sections, Table of Contents The headings of the sections of this Ordinance and the Table of Contents appended hereto or to copies hereof shall be solely for convenience of reference and shall not affect the meaning, construction, interpretation or effect of such sections of this Ordinance. Section 9 Effectiveness and Filing of Ordinance This Ordinance was presented to the Council and a public hearing concerning this Ordinance was held in accordance with applicable law by the Council at its meeting on March __, 2016. The Council hereby declares that this Ordinance shall become effective upon its passage as provided for in the Act and pursuant to Section 3 of Chapter 3 of the City Charter. A certified copy of this Ordinance shall be filed by the Clerk with the Clerk of the Circuit Court of the City of Martinsville, Virginia. The filing of this Ordinance with the Clerk of the Circuit Court of the City of Martinsville, Virginia shall be deemed to be the filing of an initial resolution or ordinance with such Court for all purposes of the Act. {V0140381.1 004086-090365 } 9  The Members of the Council voted as follows: Ayes Nays Absent Abstentions Adopted this ____ day of March, 2016. 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 March __, 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 March, 2016. ________________________________________ Clerk, City Council of City of Martinsville, Virginia {V0140381.1 004086-090365 } 10  TABLE OF CONTENTS Page Section 1 Definitions................................................................................................................1 Section 2 Findings and Determinations ...................................................................................2 Section 3 Authorization, Form and Details of the Bond ..........................................................2 Section 4 Pledge of Water and Sewer Revenues .....................................................................7 Section 5 Application of Proceeds; Sale of Bond ....................................................................8 Section 6 Further Actions Authorized; Approval of Documents.............................................8 Section 7 Invalidity of Sections ...............................................................................................8 Section 8 Headings of Sections, Table of Contents .................................................................9 Section 9 Effectiveness and Filing of Ordinance .....................................................................9 {V0140381.1 004086-090365 }  City Council Agenda Summary Meeting Date: March 8, 2016 Item No: 9. Department: Finance Issue: Appropriation Approvals Summary: The attachment amends the FY16 Budget with appropriations in the following funds: General: $ 20,960 – Recovered Costs School Operating: $ 14,535 – State Grant Attachments: Consent Agenda 3-8-16 Recommendations: Approve  BUDGET ADDITIONS FOR 03/08/16 ORG OBJECT DESCRIPTION DEBIT CREDIT FY16 General Fund: 01100909 490104 Advance/Recovered Costs 1,623 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 1,210 01331108 502100 Sheriff/Corrections - Social Security 75 01331108 502110 Sheriff/Corrections - Medicare 18 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 242 01331110 506200 Sheriff/Annex - Prisoner Allowance 78 Reimbursement from Henry County for litter pickup-January 01100909 490104 Advance/Recovered Costs 4,719 01812242 506089 County Ambulance Fuels 4,719 Reimbursements for fuels 01100909 490104 Advance/Recovered Costs 14,618 01812242 506067 Misc. Exp. - RADAR Transit Program 14,618 Reimbursements for fuel Total General Fund: 20,960 20,960 School Operating Fund: 18101918 418308 Project Graduation 14,535 71501100 561120 Instruction S & W 7,000 71501100 562100 Social Security 434 71501100 562150 Medicare 101 71501100 562800 Miscellaneous Expense 2,000 71501100 565511 Field Trips 5,000 State DOE Grant Award Total School Operating Fund: 14,535 14,535