City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00pm Close Session 7:30pm Regular Session Tuesday, March 28, 2017 7:00 – Closed Session 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. 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 Lawson 1. Consider approval of minutes from March 10 and 11, 2017 Strategic Planning Session and March 14, 2017 Council Meeting (2 mins) 2. Hear an overview of the March 27, 2017 Northside/Chatham Heights area neighborhood tour and meeting (10 mins) 3. Presentation of proclamation recognizing April as Sexual Assault Awareness Month (5 mins) 4. Consider adoption of a Resolution recognizing April as Fair Housing Month and expressing the City’s pledge to provide equal housing opportunities for all citizens (10 mins) 5. Consider approval of a resolution authorizing a public hearing and approving related actions related to potential financing of the City’s sewer interceptor project (10 mins) 6. Conduct two public hearings required under the exemption ordinance enacted in January 2007 for two organizations requesting local tax exemption and consider granting the requested exemption (15 mins) 7. Hear an update from the Martinsville-Henry County Economic Development Corporation (15 mins) 8. Hear an update on planned route changes related to the addition of a third bus and route to the local transit system (15 mins) 9. Consider a request by the Virginia Municipal League to submit nominations for membership on the VML 2017 Policy Committees (10 mins) 10. Consider approval of consent agenda (2 mins) 11. Business from the Floor This section of the Council meeting provides citizens the opportunity to discuss matters, which are not listed on the printed agenda. Thus, any person wishing to bring a matter to Council’s attention under this Section of the agenda should: (1) come to the podium and state name and address; (2) state the matter that they wish to discuss and what action they would like for Council to take; (3) limit remarks to five minutes; (4) refrain from making any personal references or accusations of a factually false and/or malicious nature. Persons who violate these guidelines will be ruled out of order by the presiding officer and will be asked to leave the podium. Persons who refuse to comply with the direction of the presiding officer may be removed from the chambers. 12. Comments by members of City Council. (5 minutes) 13. Comments by City Manager. (5 minutes)  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from March 10 and 11, 2017 Strategic Planning Session and March 14, 2017 Council Meeting. Summary: None Attachments: March 10 and 11, 2017 Strategic Planning Session minutes March 14, 2017 Council Meeting minutes Recommendations: Motion to approve minutes as presented. March 10-11, 2017 Strategic Planning Session A City Council Strategic Planning Session for the City Council of Martinsville, Virginia, was held March 10 and March 11, 2017 at West Piedmont Business Development Center, Martinsville, beginning at 5:00 PM on Friday, March 10, 2017, with Mayor Gene Teague presiding. Council Members present at the Friday, March 10, 2017 session included: Mayor Gene Teague, Vice Mayor Chad Martin, Council Member Sharon Hodge, Council Member Jennifer Bowles, and Council Member Kathy Lawson. City employees present included: City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts, and David Dickerson of Business Results Training. School Board members present included Victor Correa, Donna Dillard, Eric Hruza, Lawrence Mitchell, and Joan Montgomery. Additional school personnel included School Superintendent Zebedee Talley, Executive Director of Administrative Services Travis Clemons, Executive Director of Special Education and Student Services Paulette Simington, Assistant Superintendent of Instruction Angilee Downing, and Clerk of Board Janie Fulcher. Media present included Mickey Powell of the Martinsville Bulletin. Those in attendance created a verbal agenda to hear the school board’s vision, match the vision with the City Council’s vision for education, and revisit the Strategic Plan and update. Mayor Teague and Council Member Hodge requested that the school board go through each budget line item and detail priorities. Superintendent Talley and board members confirmed there is a priority list that members go by. Board members have met and gone through the budget line item by line item. Council Members request more transparency on decisions made on line item priority. Hodge requested additional planning sessions especially after new Council Members and School Board Members have been added to evaluate educational progress and not just money during budget planning. Attendees suggested additional planning sessions be scheduled in October, pre-budget in February or March and another post-budget after schools release for the year. Those meetings would be in addition to the School Board update at the Council Meeting in October. Council Members asked for a report on the School Board’s status on achieving goals. Council recessed at 8:00PM to reconvene the following morning at 8:00AM Saturday, March 11, 2017. The Saturday March 11, 2017 session began at 8:15AM. Council Members present included: Mayor Gene Teague, Vice Mayor Chad Martin, Council Member Sharon Hodge, Council Member Jennifer Bowles, and Council Member Kathy Lawson. City employees present included: City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts, and David Dickerson of Business Results Training. Media present included Mickey Powell of the Martinsville Bulletin. City Manager Towarnicki summarized the key issues and budget concerns for each department. Mayor Teague asked that all changes made at this meeting be brought to a future Council meeting. Council Member Lawson suggested that Council review the Strategic Plan again with the school board in October. March 10-11, 2017 Council Members suggested an update meeting after the budget around July or August then another meeting in January or February to go through the plan each year. Council Member Hodge made a motion to adjourn; Mayor Teague seconded the motion with all Members voting in favor David Dickerson will provide Council with consolidated information collected at the two day session and updated Goals and Initiatives sheets for their review. At the conclusion of Saturday’s session at 11:00AM, Council adjourned the planning session. ________________________________ ________________________________ Karen Roberts Gene Teague Clerk of Council Mayor March 14, 2017 The regular meeting of the Council of the City of Martinsville, Virginia was held on March 14, 2017 in Council Chambers, Municipal Building, at 7:30 PM with Mayor Gene Teague presiding. Council Members present included Gene Teague, Chad Martin, Jennifer Bowles, Sharon Hodge and Kathy Lawson. Staff present included City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts, Human Resources Director Kathy Vernon, Human Resources Generalist Travis Hodge, Commissioner of Revenue Ruth Easley and Police Chief Sean Dunn. Mayor Teague called the meeting to order. Following the invocation by Council Member Bowles and Pledge to the American Flag, Teague welcomed everyone to the meeting. Consider approval of minutes of the February 28, 2017 Council Meeting – Council Member Lawson made a motion to approve the minutes as presented; Council Member Bowles seconded the motion with all Council Members voting in favor. Read a Proclamation acknowledging March 2017 as Women’s History Month – Mayor Teague read the proclamation which was presented to Council Member Bowles, Council Member Hodge, and Council Member Lawson. Teague also recognized Ruth Easley. Council Member Bowles thanked Council Member Hodge and Council Member Lawson for their leadership rolls and paving the way for her to serve on City Council. Recognize Citizen’s Academy graduates – Assistant City Manager Wayne Knox explained the Citizen’s Academy and said the course was interesting and educational, focusing on City government and other City departments and their responsibilities. The attendees were able to March 14, 2017 meet Council Members and other City employees and ask specific questions. Knox said he looks forward to future Citizen’s Academy courses and hopes to have another in the fall. Knox and Mayor Teague recognized course participants and presented them with a certificate. Council Member Hodge thanked them for participating and encouraged them to look into serving on one of the Boards and Commissions vacancies. Council Member Bowles thanked them for taking interest in the government. City Manager Towarnicki thanked Knox for overseeing the training. Mayor Teague and Vice Mayor Martin also thanked them for participating. Council Member Lawson said the residents had very good questions. Ms. Billie Coles spoke on behalf of the attendees, stating that it was one of the most informative events she had attended and feels that every citizen should participate in future sessions. Towarnicki said it had been discussed previously about televising the sessions but they wanted to ensure that the training was informal and attendees were comfortable asking questions. Consider setting a public hearing as required under the exemption ordinance enacted in January 2007 for consideration of the organization’ local tax exemption requests – Commissioner of Revenue Ruth Easley summarized the details provided to Council previously, referencing the exemption ordinance enacted by Council in 2007. Easley said there are two exemption request applications that would need Council’s approval. The Exemption Review Committee has met and the next step would be a public hearing regarding the exemption request. Council Member Lawson made a motion to set the public hearing for March 28, 2017; Council Member Hodge seconded the motion with all Council Members voting in favor. March 14, 2017 Hear an update from the City’s Human Resources Office regarding a summary of application/hiring data from 2016 – Human Resources Director Kathy Vernon presented a PowerPoint with steps taken by the HR department on recruiting, applications, new hire demographics, and employee turnover statistics. Mayor Teague asked how many employees had left the City for increased salaries; Vernon said most that left for another job resigned for higher pay and/or better benefits. Council Member Hodge asked if employees could be groomed in-house for upcoming vacancies left by retiring employees. Vernon explained that was done when possible. Vernon summarized the employee census. Hodge expressed concern with only 12% African American employees stating that it does not “mirror” the community. City Manager Towarnicki said they were open to suggestions to increase the opportunity to attract minorities to City vacancies and said it is a very competitive market with other neighboring areas also trying to diversify their employee pool. Council Member Bowles requested that information be expanded to all churches and not just minority churches. Vernon confirmed that every city employee was encouraged to attend the diversity training in September. Hodge asked if Vernon was aware of any reason why African American’s are not applying for jobs. Mayor Teague noted that the percentage of minority applicants has increased. Vernon detailed concerns regarding vacancies and employees set to retire, turnover and retiree health insurance and explained that counting constitutionals, there are 44 employees who could retire this year. March 14, 2017 March 14, 2017 Hear a staff update on Council’s strategic planning meetings scheduled for March 10 and 11, 2017 – City Manager Towarnicki updated Council on the strategic planning sessions involving City Council and School Board and staff. Towarnicki said there was good discussion and good points made. The strategic plan will be redrafted with requested changes and will be circulated to Council and the schools for any additional changes that need to be corrected. The final draft will be added to the City website for public reference. Mayor Teague thanked the staff and said it was a good opportunity for Council and schools to have dialogue. Vice Mayor Martin also thanked David Dickerson for facilitating the meetings. Business from the Floor – Melvin Smith, 614 E. Church Street spoke regarding the cruise-in and rumors that have circulated, stating that the reason the cruise-in was not being held any longer was due to lack of sponsorship to cover permits and insurance. Smith said that vendors stopped participating due to permits required by the Commissioner of Revenue’s office. Smith said sponsorships are needed to hold any cruise-ins in the future and feels that the City should not be responsible for anything other than parking. Smith said another concern was that the local restaurants appeared to raise prices during the cruise-in. Smith apologized for rumors related to City Council being responsible for the halt of the cruise-in. Mayor Teague suggested that he approach MURA or the Chamber for support holding future events. City Manager Towarnicki said originally the cruise-ins were started by the Public Works Director and organized by the Parks and Recreation department. Towarnicki stated that it was his understanding that interest in the cruise-in decreased and Saturdays are now occupied by other locations for their cruise-in events. The Parks and Recreation department is in discussions with MURA to possibly create an event in conjunction with the Martinsville race. Smith suggested possibly holding the cruise in on a Friday night or Friday evening if other locations are doing theirs on Saturdays. Hodge suggested collaborating with TGIF on Fridays. Vice Mayor Martin says he has pitched the idea to a nonprofit and could possibly include motorcycles. March 14, 2017 Patrick Wright, 1201 Spruce Street referenced the GED program that he was participating in and questioned Council’s investment in education and the GED program. Mayor Teague confirmed that the GED programs are funded through the school system. Sophia Esdaile wanted to invite students to the Harvest Youth Board meeting on March 16 at the New College Institute to present an overview of the Harvest Youth Board and future planning of events for the area. Ural Harris, 217 Stewart Street expressed concern on the budget shortfalls. He also noted homes being demolished and/or being put up for sale where residents are leaving the City. Harris said he feels that the schools were fully funded previously yet Council approved additional funds with no measurable results. Harris also brought up the reversion study and he asked Council not to spend any money on studies unless they plan to vote for it. The City infrastructure is falling apart and the financial problems have come from bad financial decisions. Comments by Members of City Council – Council Member Hodge was out of town during the last meeting but says she tries very hard to coordinate her work schedule with Council meetings. Hodge thanked the Chamber of Commerce for a successful Fast Track event. Council Member Lawson thanked Council Members and staff for a productive strategic planning work session and felt everyone communicated well. Council Member Bowles congratulated a local resident for his success in the local Hoop Shoot contest. Bowles said she attended the ribbon cutting at Infinity Acres and suggested residents check out what they have to offer. Lady Warriors had a successful season and everyone is proud of their accomplishments. She encouraged citizens to attend the Council meetings more often or contact Council Members with concerns or suggestions. Bowles offered condolences to the family of David Lee. Vice Mayor Martin congratulated the Carlisle Chiefs on their state championship. Martin reminded residents that the Martinsville Winter Warming shelter opens at the Salvation Army at 7:00pm on colder nights. Bowles requested that Pattie Farmer’s retirement reception be added to the Council Calendar. Mayor Teague thanked staff for working on the Council calendar. Teague reminded residents of the neighborhood meeting March 27, 2017. Comments by City Manager – Towarnicki requested that any Council Member that is unable to attend a meeting to please let him know in advance when possible so agenda items can be arranged appropriately. March 30 is the Annual Chamber Leadership Meeting and requested that Council Members RSVP at their earliest convenience. The new Tourism Director Sarah Hodges will have an informal meet and greet and he will update Council Members on those details. March 14, 2017 There being no further business, Council Member Hodge made a motion to adjourn the meeting; the motion was seconded by Council Member Bowles with all Council Members voting in favor. The meeting adjourned at 8:48pm. ______________________________________ ______________________________________ Karen Roberts Gene Teague Clerk of Council Mayor  City Council Agenda Summary Date: March 28, 2017 Item No: 2. Department: City Council Issue: Hear an overview of the March 27, 2017 Northside/Chatham Heights area neighborhood tour and meeting. Summary: A recap of the neighborhood tour and Northside neighborhood community meeting held at Chatham Heights Baptist Church at 1235 Chatham Road on Monday, March 27th will be given. Attachments: None Recommendations: This item is being presented for public information purposes – no action needed by Council.  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 3. Department: City Council Issue: Read and present a proclamation recognizing April as Sexual Assault Awareness Month. Summary: Staff from Southside Survivor Response Center (formerly CAFV) will attend Council’s meeting to provide comments regarding this issue, and to accept the proclamation. Attachments: Proclamation Recommendations: No action needed  PROCLAMATION MONTH OF APRIL AS SEXUAL ASSAULT AWARENESS MONTH WHEREAS, Sexual Assault Awareness Month is intended to draw attention to the fact that sexual violence is widespread and has public health implications for every community member of the City of Martinsville; and WHEREAS, Rape, sexual assault, and sexual harassment impact our community as seen by statistics indicating that one in five women will have experienced sexual assault by the time they complete college; and WHEREAS, Child sexual abuse prevention must be a priority to confront the reality that one in six boys and one in four girls will experience a sexual assault before the age 18; and WHEREAS, Staff and volunteers of Southside Survivor Response Center anti-violence programs in the City of Martinsville encourage every person to speak out when witnessing acts of violence however small; and WHEREAS, With leadership, dedication, and encouragement, there is compelling evidence that we can be successful in reducing sexual violence in the City of Martinsville through prevention education, increased awareness, and holding perpetrators who commit acts of violence responsible for their actions; and WHEREAS, The City of Martinsville strongly supports the efforts of national and state partners, as well as our local partner Southside Survivor Response Center, and of every citizen to actively engage in public and private efforts, including conversations about what sexual violence is, how to prevent it, how to help survivors connect with services, and how every segment of our society can work together to better address sexual violence, NOW THEREFORE, I, Gene Teague, Mayor, along with Martinsville City Council members join anti-sexual violence advocates and support service programs in the belief that all community members must be part of the solution to end sexual violence. Along with the United States Government and State of Virginia, I do hereby proclaim April, 2017 as “Sexual Assault Awareness Month”. ___________________________________________ Gene Teague Mayor  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 4. Department: Community Development Issue: Every year, the month of April is celebrated as Fair Housing Month. As has been the practice in past years, City Council approves a resolution proclaiming the month of April as Fair Housing Month in the City of Martinsville. Attachments: Resolution Recommendations: Motion to approve resolution  Council Members City Manager Gene Teague, Mayor Leon E. Towarnicki Chad Martin, Vice-Mayor City Attorney Jennifer Bowles Eric H. Monday Sharon Brooks-Hodge Clerk of Council Kathy Lawson Karen Roberts FAIR HOUSING RESOLUTION OF THE MARTINSVILLE CITY COUNCIL WHEREAS, the City of Martinsville strives to promote principles of Equal Housing Opportunity by prohibiting discrimination practices in the sale, rental and financing of housing and in implementing its housing and community development programs in a manner to affirmatively further the purposes of the fair housing laws; and WHEREAS, the basis for discrimination outlawed by the federal and state fair housing acts are race, color, sex, religion, national origin, handicap, age and familial status; and WHEREAS, the City of Martinsville believes persons of similar levels should have available to them a like range of housing opportunities and will work to promote equality and freedom of choice; now therefore, BE IT RESOLVED by the Martinsville City Council that, on this 28th day of March 2017, in recognition of April as Fair Housing Month, it does hereby pledge to work with its citizens in pursuit of the shared goal and responsibility for providing equal housing opportunities for all persons. ******* Attest: _______________________________ Karen Roberts, Clerk of Council March 28, 2017 Date Adopted 55 West Church Street, P. O. Box 1112, Martinsville, VA 24114-1112 276-403-5180 Fax: 276-403-5280 www.martinsville-va.gov  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 5. Department: Finance Issue: Consider approval of a resolution authorizing a public hearing and approving related actions related to potential financing of the City’s sewer interceptor project. Summary: The City is considering financing the acquisition, construction, renovation, and equipping of repairs, replacements, and capital improvements, all for municipal purposes through the issuance of the City's water and sewer revenue bonds in the outstanding principal amount not to exceed $11,740,000. Approval of this resolution is necessary for the City to initiate financing of the project Attachments: Resolution Recommendations: Motion and vote to approve the Resolution.  RESOLUTION AUTHORIZING PUBLIC HEARING AND APPROVING RELATED ACTIONS RELATED TO POTENTIAL FINANCING WHEREAS, the City Council (the "City Council" of the City of Martinsville, Virginia (the "City") is considering financing the acquisition, construction, renovation and equipping of sewer system repairs, replacements, and capital improvements, all for municipal purposes (together, the “Project”) through the issuance of the City's water and sewer revenue bonds in the outstanding principal amount not to exceed $11,740,000 (the “Bonds”). NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MARTINSVILLE, VIRGINIA: 1. The City Manager, Finance Director, City Attorney, bond counsel to the City and all other officers, employees and agents of the City are hereby authorized and directed to take such further action deemed necessary or desirable to facilitate consideration of the proposed Bonds, including but not limited to the publication and broadcasting of notice of a public hearing as required by law. 2. All actions of the City Manager, Finance Director, City Attorney, bond counsel, financial advisor and all other officers, employees and agents of the City in furtherance of the issuance of the Bonds, including applications for one or more loans from the Virginia Clean Water Revolving Loan Fund, are hereby approved and ratified. 3. This Resolution shall take effect immediately. {V0146528.1 004086-091400 }  CERTIFICATE The Members of the Council voted as follows on the foregoing Resolution: Ayes Nays Absent Abstentions \ Adopted this ___ day of ___________, 2017. _________________________________ 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 28, 2017, 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 Resolution, a quorum was present, and that such Resolution has not been repealed, revoked, rescinded or amended. Dated this _____ day of _________, 2017. ________________________________________ Clerk, City Council of City of Martinsville, Virginia {V0146528.1 004086-091400 }  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 6. Department: City Manager, Commissioner of the Revenue Issue: Conduct two public hearing required under the exemption ordinance enacted in January 2007 for two organizations requesting local tax exemption and consider granting the requested exemption Summary: Under the provisions of the Exemption Ordinance enacted by City Council in January 2007, any entity that does not clearly fall into any exemption category granted by the Code of Virginia must request an exemption approval from the City Council in the form of an exemption ordinance. In order for the exemption request to be considered by council as part of the annual budget deliberations, the requesting entity must have submitted an exemption application to the Commissioner of the Revenue by November 1, 2016. After notification by the Commissioner of the Revenue that two organizations submitted an application for determination for local tax exemption, the City Manager appointed a review committee consisting of himself, Vice-Mayor Bowles, the City Commissioner of the Revenue, the City Treasurer, and an accountant from the Finance Department to review the application received. Acts 4 Ministries Inc. and Life Stages Enrichment Services Inc. are the two organizations that submitted an application for a local exemption designation. Local exemptions granted by City Council are for all current and future property owned by the organization and used for the exempt purpose stated in the non- profit organization’s mission statement. Attachments: Review Committee Recommendation Exemption Guidelines Exemption Definitions Sample Motion Recommendations: Conduct public hearings and either grant or deny exemption request.  Exemption Review Committee Report March 1, 2017 The Martinsville City Manager appointed an Exemption Review Committee to consider the applications and make a recommendation for two non-profit entities that submitted a request for a local tax exemption to the Martinsville Commissioner of the Revenue. The review committee members were: Leon Towarnicki, City Manager; Jennifer Bowles, City Council Member; Ruth Easley, Commissioner of the Revenue; Cindy Dickerson, City Treasurer, and Mary Kay Washington, Staff Accountant Martinsville Finance Department. The Exemption Review Committee met on March 1, 2017 to review the requests and submit the following report and recommendations: Applicant: Act 4 Ministries, Inc. Organization Mission Statement: To meet both the physical and spiritual needs of hurting individuals. With God’s direction, we will be the hands and feet of Christ as we reach out and help His creation in a variety of different situations. Answers to Review Criteria: 1. The organization has been granted IRS 501 (c ) (3) designation 2. The organization does not have an annual special events ABC license 3. The organization's application indicates that there are no employees and the officers do not receive salaries. 4. Net earnings of the organization do not inure to the benefit of any individual. 5. The organization's stated purpose of the residential properties for which they are requesting exemption is for transitional housing for single mothers. 6. No substantial part of the organization's activities is to influence legislation or campaign on behalf of a political candidate. 7. Real Estate Tax Revenue Impact: $1,979.75 is the current annual tax assessment for the 2 properties owned by the organization. 8. The organization does provide a community service that, in the opinion of the members of the Exemption Review Committee, exceeds the revenue loss.  Additional Review Criteria: a. The organization has unpaid real estate tax late payment penalty and interest from the first half installment of the FY 2017 real estate tax bill. b. The organization has not obtained building permits for any of the renovation work that is necessary for the 311 Starling Ave. property, but depending on the nature of the work, they may not need one. The organization has stated that the property 311 Starling Ave. property is not currently being used for transitional housing because of the need for renovation. However, the property at 231 Starling Ave. is being used for transitional housing. Both properties are zoned P-2. The previous use of the property at 311 Starling Ave. was a child day care center. c. The properties for which the exemption is sought potentially relate to the purposes for which the organization was created. d. The City does not provide transitional housing services but does provide assistance to other exempt organizations that provide some housing assistance. e. The organization is providing specific services to single mothers that are not currently being provided by other known organizations. f. The city’s Comprehensive Plan encourages the development of transitional housing for single men and families with a male householder present, but is silent on transitional housing for single mothers. g. Other criteria to consider: No other criteria was considered by the committee. Fiscal Impact: The organization currently owns 2 properties: 231 Starling Avenue and 311 Starling Avenue. Current annual tax on 231 Starling Avenue is $1,104.58. Current annual tax on 311 Starling Avenue is $875.17. Total annual real estate tax for both properties is $1,979.75. The assessed value of 311 Starling Avenue will drop effective July 1, 2017 due to the biennial reassessment lowering the potential total revenue impact for both properties in FY 2018, if the tax rate remains at the current rate of $1.0621, to $1740.78. The organization has not reported owning any business personal property in the City of Martinsville. Review Committee Recommendation: The Review Committee recommends granting an exemption for real property used for the organization’s stated mission purpose. Applicant: Life Stages Enrichment Service, Inc. Organization Mission Statement: To provide profound services and resources to persons in the community. Our efforts will be displayed through our agency’s willingness to help, protect and enhance the quality of life of those at risk in our community. Answers to Review Criteria: 1. The organization has been granted IRS 501 (c ) (3) designation 2. The organization does not have an annual special events ABC license. 3. The organization's application indicates that there are no employees and the officers do not receive salaries. 4. Net earnings of the organization do not inure to the benefit of any individual. 5. The organization's exemption application indicates that they provide the following services: payee services, transportation to medical appointments and similar appointments, and housing assistance. 6. No substantial part of the organization's activities is to influence legislation or campaign on behalf of a political candidate. 7. Real Estate Tax Revenue Impact: $0. The organization owns no real property. The property from which they operate their payee services is located at 316 Brown Street which was previously owned by the organization founder and president, Torey Morris. The property is now owned by A F Housing LLC and has the same mailing address as Life Stages Enrichment Service, Inc. and the for-profit Life Stages, Inc. Personal Property Revenue Impact: The personal property reported on the exemption application are a 2012 Ford Cutaway Van and a 2012 Ford E350 Van, however, the E350 is actually registered to the for-profit entity Life Stages, Inc. 2017 combined assessed value of the vehicles actually registered to Life Stages Enrichment Services Inc. is $11,900. The assessed value of vehicles registered to the for-profit Life Stages, Inc. is $38,340. Assuming the personal property tax rate remains at $2.30 per $100 of assessed value, the FY 2018 personal property revenue impact will be $273.95 for just the two vehicles that are actually registered to Life Stages Enrichment Services Inc. The organization did not provide an itemization of business equipment. It is assumed that the organization is using the business equipment reported by the for-profit entity Life Stages Inc. which is also operated from the 316 Brown St. location. 8. The organization provides services that are currently provided by both non-exempt non-profit and for-profit entities. Additional Review Criteria: a. The non-profit organization was not established until March 22, 2016 and was not subject to taxation for the 2016 tax year.  b. The organization does not currently own real property. The property listed as the business address for the organization is zoned P-2. Current business activities provided at the 316 Brown Street location are compliant with the P-2 zoning. c. The personal property for which the exemption is sought potentially relate to the purposes for which the organization was created. Again, no real property is currently owned by the organization. d. The City does not provide payee services, but some transportation services are provided by the Senior Center. In addition, another non-exempt non-profit organization and other for-profit entities provide transportation services. The city has transferred its housing services to the City of Danville Housing Services. e. The services provided by the organization are currently being met by other non-exempt non-profit entities or by for-profit entities. f. Other criteria to consider: No other criteria was considered by the committee. Fiscal Impact: Real Estate Tax Revenue Impact: $0. The organization owns no real property. The property from which they operate their payee services is located at 316 Brown Street which was previously owned by the organization founder and president, Torey Morris. The property is now owned by A F Housing LLC and has the same mailing address as Life Stages Enrichment Service, Inc. and the for-profit Life Stages, Inc. Personal Property Revenue Impact: The personal property reported on the exemption application are a 2012 Ford Cutaway Van and a 2012 Ford E350 Van, however, the E350 is actually registered to the for- profit entity Life Stages, Inc. 2017 combined assessed value of the vehicles actually registered to Life Stages Enrichment Services Inc. is $11,900. The assessed value of vehicles registered to the for-profit Life Stages, Inc. is $38,340. Assuming the personal property tax rate remains at $2.30 per $100 of assessed value, the FY 2018 personal property revenue impact will be $273.95 for just the two vehicles that are actually registered to Life Stages Enrichment Services Inc. The organization did not provide an itemization of business equipment. It is assumed that the organization is using the business equipment reported by the for-profit entity Life Stages Inc. which is also operated from the 316 Brown St. location. Review Committee Recommendation: Though the organization is considered a non-profit organization for federal income tax purposes, based on the information submitted with the exemption application it appears that the organization provides fee-based services that are similar to services provided by other for-profit entities and other non-profit entities that do not benefit from a local tax exemption. The organization also, does not own real property and has requested a real estate tax exemption in addition to the personal property tax exemption. Because of the close association of the for-profit Life Stages Inc. with the activities of the non-profit Life Stages Enrichment Services Inc. there is concern that if an exemption is granted for real and personal property all of the property currently titled to the for-profit entity will be transferred to the non-profit entity. Once a local tax exemption is granted to a non-profit entity the exemption is extended to all future property acquired by the entity, provided it is used for the exempt purposes for which the exemption was granted and the property does not become a source of substantial income. For these reasons the Review Committee does not recommend granting a tax exemption at this time. GUIDELINES FOR CONSIDERING REQUESTS FOR EXEMPTIONS FROM LOCAL TAXATION Article X, §6(a)(6) of the Constitution of Virginia and Code of Virginia 58.1-3651 authorize local governing bodies to provide exemptions from local taxation for the real and/or personal property owned by non-profit organizations that use the property exclusively for religious, charitable, patriotic, historical, benevolent, or cultural purposes or as dedicated public parks or playgrounds. The local governing body must adopt an exemption ordinance establishing the restrictions and conditions of the tax exemption. Exemptions as provided by Code of Virginia §58.1-3600 – 58.1-3650.1001, or any other general or special act of the Virginia General Assembly prior to January 1, 2003 will continue to be effective provided the property is owned and used in conformance with the provisions of law that provided the exemption. Exempt properties will be subject to a triennial review to ensure continued compliance with the exemption provisions. Exemptions may be granted by the Martinsville City Council to organizations that meet a general public need for services provided to the community at-large which exceed the City’s loss in revenue from taxes assessed on the organization’s real and personal property. Exemptions will not be granted to organizations that have rules, regulations, policies or practices that unlawfully discriminate on the basis of religious conviction, race, color, sex or national origin. Application Procedures: 1. A non-profit organization seeking exemption from its real or personal property, or both, must file an application with the Commissioner of the Revenue. 2. The Commissioner of the Revenue will conduct an initial review of each application to determine if the applicant qualifies for a state code exemption. If an applicant does not meet the criteria for a state code exemption, but may be eligible for a local exemption granted by the Martinsville City Council, then the application will be forwarded to the 1  City Manager for review and to report his findings to the City Council. Local exemption designations will only be considered by the City Council during its annual budget process. Applications for a local exemption determination must be filed with the Commissioner of the Revenue by November 1st. 3. As part of the application process, the organization shall provide the following information: names and addresses of officers, directors, managing members, trustees or partners as applicable; a statement of the salaries or other compensation, if any, received by the 3 highest paid employees of the organization; a complete description of the property for which the exemption is sought (for real estate, the organization shall list the gross square footage of any improvements and indicate the square footage that will be used by the applicant organization for their exempt purpose); a description of the property use and how it relates to the qualifying exemption; and a completed Exemption Criteria Review Questionnaire (see Review Criteria below). 4. The applicant organization must also provide copies of the organization’s Internal Revenue Service determination letter; its Articles of Incorporation or Organization along with any amendments to the Articles; Organization By-Laws; and Certificate of Good Standing from the State Corporation Commission. 5. If requested by the Commissioner of the Revenue, the organization shall provide copies of its federal and state returns and its financial statements for the prior two years. 6. A public hearing will be conducted by the City Council on the application for local exemption. Notice of the hearing will be published at least once in a newspaper of general circulation at least 5 days prior to the public hearing. 7. Local exemptions shall be granted only by ordinance by the Martinsville City Council after conducting a public hearing. The ordinance shall specify the use that is the basis for the local exemption, stipulate that the continuance of the local exemption is contingent on the applicant organization’s continued use of the property in accordance with the purpose for which the organization is designated or classified, and shall contain any other conditions or restrictions as determined by the Martinsville City Council. 8. If the Martinsville City Council grants an exemption, it will become effective for the tax year effective date for which the exemption is granted (January 1st for personal property, July 1st for real estate.) 2  9. Once granted, a local exemption will be effective until the organization no longer qualifies, until the specific use on which the local exemption is based ceases, or until revoked by the Martinsville City Council as provided by law, whichever occurs first. 10. State code exemptions granted, as determined by the Commissioner of the Revenue, will be effective until the organization no longer qualifies or the specific use on which the exemption is based ceases. 11. Any organization that is granted a state code or local exemption shall file a renewal application with the Commissioner of the Revenue every three years as a requirement for retention of the exemption. Review Criteria: Before adopting an ordinance granting a property exemption the City Council is required by Code of Va. 58.1-3651 to consider the following: 1) Whether the organization is exempt from taxation pursuant to §501 (c) of the Internal Revenue Code of 1954; 2) Whether a current annual alcoholic beverage license for serving alcoholic beverages has been issued by the Virginia Alcoholic Beverage Control Board to such organization, for use on such property; 3) Whether any director, officer or employee of the organization is paid compensation in excess of a reasonable allowance for salaries or other compensation for personal services actually rendered by such director, officer or employee; 4) Whether any part of the net earnings of such organization inures to the benefit of any individual; 5) Whether any significant portion of the service provided by such organization is generated by funds received from donations, contributions or local, state or federal grants. As used in this subsection, donations shall include the providing of personal services or the contribution of in-kind or other material services; 6) Whether the organization provides services for the common good of the public; 7) Whether a substantial part of the activities of the organization involves carrying on propaganda, or otherwise attempting to influence legislation and whether the organization participates in, or intervenes in, any political campaign on behalf of any candidate for public office; and 8) The revenue impact to the City and its taxpayers of exempting the property. 3  9) The City Council should consider the following criteria, facts and circumstances as may be pertinent: (a) Whether the organization is current on all its obligations to the City; (b) Whether the organization is in compliance with all City ordinances and regulations, including (but not limited to) building, subdivision and zoning ordinances; (c) Whether the property for which the exemption is sought relates to the purposes for which the organization was created and tends to directly promote those purposes; (d) Whether the service(s) provided by the organization are services the City would provide if the requesting organization did not do so; (e) Whether the organization meets a general public need for which the benefits derived by the community at-large are equivalent to or exceed the City’s loss in revenue from taxes on the entity’s real and personal property; (f) Whether the service(s) provided by the organization meet an established priority of the City Council; and (g) Any other criteria, facts and circumstances that the Council may deem appropriate and pertinent. Triennial Review; Revocation of Exemption: 1. With the exception of the United States and the Commonwealth, or any political subdivision thereof, any organization which has been granted exemption from taxation shall file an application with the Commissioner of the Revenue every three (3) years as a requirement for retention of the exemption granted. a. Review applications under this paragraph shall be filed with the Commissioner of the Revenue not later than December 31st of the year preceding the tax year for which such exemption is sought to be continued. b. Review applications shall include the following information – (1) The ownership of the property; (2) The use of the property; (3) Whether the organization has any rule, regulation, policy or practice that discriminates on the basis of religious conviction, race, color, sex or national origin; 4  (4) Whether the organization is current on all its obligations to the City; (5) Whether the organization is in compliance with all City ordinances and regulations, including (but not limited to) building, subdivision and zoning ordinances; (6) Whether the organization has attempted to influence legislation, has participated in, or intervened in, any political campaign on behalf of any candidate for public office; (7) The names and addresses of officers, directors, managing members, trustees or partners, as applicable; (8) A current statement of the salaries or other compensation, if any, paid to officers and directors of the organization; (9) A current statement of the salaries or other compensation, if any, received by the 3 highest-paid employees of the organization (10) A current Certificate of Good Standing from the State Corporation Commission; and (11) If requested by the Commissioner of the Revenue, copies of its federal and state tax returns and its financial statements for the preceding year. c. The Commissioner of the Revenue shall conduct an initial evaluation of each review application and any supporting materials using the criteria listed in Section B, above, and shall submit a written report summarizing her evaluation to the City Manager. The Commissioner’s report shall specifically address the criteria in Section B. The City Manager will subsequently report those findings to the City Council. 5  Exemption Definitions As Defined by Va. Courts Benevolent – Philanthropic; humane; having a desire or purpose to do good to men; intended for conferring benefits, rather than for gain or profit. (Manassas Lodge No. 1380, Loyal Order of Moose, Inc. v. County of Prince William, 218 Va. 220, 237 S.E. 2d 102 (1977)) Charitable – Liberal in benefactions to the poor; beneficent. (City of Richmond v. United Givers Fund of Richmond, Henrico & Chesterfield, Inc., 205 Va. 432, 137 S.E. 2d 876 (1964)) NOTE: A charitable organization should be organized and conducted to perform some service of public good or welfare based on the above mentioned court cases. As Defined by Va. Constitution Article X §6 Educational Exemption – Limited to institution of learning operated not for profit, provided the property is used for literary, scientific, or educational purposes or purposes incidental thereto. As Defined by Webster’s New Collegiate Dictionary Cultural – Of or relating to enlightenment and excellence of taste acquired by intellectual and aesthetic training; acquaintance with and taste in fine arts, humanities, and broad aspects of science as distinguished from vocational and technical skills. Educational – The field of study that deals mainly with methods of teaching and learning in schools. Historical – Of or relating to a branch of knowledge that records and explains past events. Museum – An institution devoted to the procurement, care, study, and display of objects of lasting interest or value; a place where objects are exhibited. Patriotic – Befitting or characteristic of a patriot (one who loves his country and zealously supports its authority and interests.)  Sample Motion Granting Local Tax Exemption Sample Motion for Acts 4 Ministries Inc.: I move that Section 21-12 of the City Code be amended to grant a local tax exemption for (real property, personal property or both) owned by (Acts 4 Ministries Inc.) . And that the organization is hereby classified and designated as a (benevolent or charitable) organization within the context of Section 6(a)(6) of Article X of the Constitution of Virginia. Sample Motion for Life Stages Enrichment Services, Inc.: I move that Section 21-12 of the City Code be amended to grant a local tax exemption for (real property, personal property or both) owned by (Life Stages Enrichment Services, Inc.). And that the organization is hereby classified and designated as a (benevolent or charitable) organization within the context of Section 6(a)(6) of Article X of the Constitution of Virginia.  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 7. Department: City Manager Issue: Hear an update from the Martinsville-Henry County Economic Development Corporation. Summary: Mark Heath will provide an update on EDC work and activities. Attachments: None Recommendations: No action by Council is needed – this item is presented for information purposes.  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 8. Department: City Manager Issue: Hear an update on planned route changes related to the addition of a third bus and route to the local transit system. Summary: With the addition of a third bus to the local transit system, PART (Piedmont Area Regional Transport) will expand local public transit service to a new third route. In addition to expanding service to the two existing routes, the new third route will service southern Martinsville and Henry County. Staff will present an update of the route changes at the meeting along with related information regarding planned startup of the expanded service. Attachments: None. Information will be presented at the meeting. Recommendations: No action needed – presented for information purposes.  City Council Agenda Summary Date: March 28, 2017 Item No: 9. Department: City Manager Issue: Consider a request by the Virginia Municipal League to submit nominations for membership on the VML 2017 Policy Committees. Summary: Annually, City Council submits nominations for membership to the six VML policy committees. The committees typically meet at least once during the summer (and other times as may be needed) for the purpose of developing broad policy statements, in addition to submitting specific legislative recommendations for consideration by the Legislative Committee. The 2016 Policy Committee City members were as follows: Community & Economic Development – Sharon Brooks Hodge Environmental Quality- Eric Monday Finance – Leon Towarnicki General Laws – Gene Teague Human Development & Education –Jennifer Bowles Transportation- Mark Stroud Attachments: Information from VML Recommendations: Motion to nominate members to VML for the 2017 Policy Committees March 13, 2017 To: VML Full-Member Key Officials; Council and Board Clerks From: Kim Winn, Executive Director Subject: 2017 VML Policy Committee Nominations The Virginia Municipal League welcomes your nominations for the 2017 policy committees. Accompanying this memo is a description of the committee process and a nominations form. Please return your locality’s nominations form by April 14. If your community has a May election, you may submit a revised form after your elections. Please observe the following guidelines with your nominations:  Only governing body members and appointed officials (i.e., employees of the local government) are eligible to serve.  You may nominate two people to a committee; if two are nominated, at least one should be a governing body member.  Individuals may serve on only one committee a year.  Please return your nominations form by April 14. Policy committees traditionally meet in late July in the Richmond area; committee meeting dates and times will be forwarded to you once they are confirmed. Please call or email Janet Areson at VML (804-523-8522; jareson@vml.org) if you have any questions about the appointment process. Attachments  VML 2017 Policy Committee Nominations Please return this form by April 14 to Joni Terry at VML, P.O. Box 12164, Richmond, VA 23241; Fax 804/343-3758; email: jterry@vml.org Community & Economic Development Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ Environmental Quality Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ Finance Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ General Laws Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ Human Development & Education Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ Transportation Name & Title: ______________________________________________________________________________ Name & Title: ______________________________________________________________________________ Signed: _______________________________________Locality:____________________________________ (Mayor/Chair, or Manager/Administrator)  VML’s Legislative and Policy Committee Process Each year the Virginia Municipal League develops two separate documents -- a legislative program and a compilation of policy statements -- through a process that involves the Legislative Committee and six separate policy committees. The Legislative Committee is responsible for developing the legislative program, but it may also rely on input from the policy committees to do so. The policy committees develop broad policy statements, in addition to submitting specific legislative recommendations for consideration by the Legislative Committee. Legislative Committee What is the role of the Legislative Committee? The Legislative Committee is responsible for considering and developing positions on existing or proposed state and federal legislation or regulations, and urging the enactment or amendment of, or opposition to, such legislation or regulations. How is the Legislative Committee appointed? VML’s Constitution spells out the composition of the Legislative Committee. The committee consists of 24 individuals holding local elective or appointed positions, all appointed by VML’s President. Of the 24 members, 12 must be representatives of cities and urban counties with populations in excess of 35,000, six must be representatives of cities and urban counties with populations of 35,000 or less, and six must represent towns. What is included in VML’s Legislative Program? The legislative program adopted by the Legislative Committee reflects specific legislative objectives that VML hopes to achieve during the upcoming legislative session. It is subject to the approval of VML’s membership at the annual conference. What is the relationship between the legislative committee and VML’s policy committees? The Legislative Committee meets prior to the policy committees to identify issues that it would like the committees to consider for potential inclusion in the league’s legislative program. It meets again after the policy committees have met to consider their recommendations. Policy Committees What is the role of the policy committees? Policy committees receive briefings on select statewide issues, consider possible changes to the policy statement, and develop legislative recommendations for the Legislative Committee to consider. How are policy committees appointed? Policy committee membership consists of elected and appointed officials of full-member local governments. Nomination information is sent in the spring to each locality, and each local government determines which of its officials will be nominated for each of the six policy committees. Each local government may nominate up to two people per policy committee, at least one of whom must be an elected official. 1 What are the benefits of serving on a policy committee? VML policy committees offer members an opportunity to learn about current and emerging statewide issues that affect local governments, to develop through policy statements the broad philosophical framework that guides the league, and to network with local officials with similar policy interests. How many policy committees are there? There are six policy committees: community and economic development, environmental quality, finance, general laws, human development and education, and transportation. What issues does each policy committee cover? • Community & Economic Development: Authority, administration, and funding of local governments to manage a full range of community and economic development issues, including business development and retention, international competitiveness, infrastructure development and investment, planning, land use and zoning, blight, enterprise zones, housing, workforce development and historic preservation. • Environmental Quality: Natural resources and the authority of local governments to manage the environment, including water resources and quality, solid and hazardous waste management, air quality and the Chesapeake Bay. • Finance: Powers, organization and administration of local government financing, including taxing authority, debt financing, state aid to local governments and federal policies affecting local finance issues. • General Laws: Powers, duties, responsibilities, organization and administration of local governments, including state-local and inter-local relations, conflicts-of-interest, freedom-of- information, information management and personnel, telecommunications, utilities and law enforcement, jails and courts issues. • Human Development and Education: Management and funding of social services, prek-12 education, health, behavioral health, juvenile justice, recreation, rehabilitation and aging. • Transportation: Development, maintenance, and funding of a comprehensive land, sea and air transportation system for the Commonwealth, and federal, state and local roles in the provision and regulation of transportation. What is a policy statement? Each policy committee develops a policy statement that covers issues in its respective area. The policy statement expresses the agreement of VML’s membership on matters of interest to local governments. The statement generally addresses broad, long-term, philosophical positions. The VML membership approves the policy statements at its annual meeting. How do policy statements differ from VML’s legislative program? Policy statements are general in nature. They reflect local governments’ positions on a range of issues. The Legislative Program is more specific and immediate. It is limited to legislative positions that VML expects to lobby on during the upcoming legislative session. 2  City Council Agenda Summary Meeting Date: March 28, 2017 Item No: 10. Department: Finance Issue: Appropriation Approval Summary: The attachment amends the FY17 Budget with appropriations in the following funds: FY17: General Fund: $ 50,489 – Reimbursements, Grants, Asset Forfeitures Sewer Fund: $ 615,326 – VRA Reimbursement Attachments: Consent Agenda 3-28-17 Recommendations: Approve  BUDGET ADDITIONS FOR 3/28/2017 ORG OBJECT DESCRIPTION DEBIT CREDIT FY17 General Fund: 01100909 490104 Advance/Recovered Costs 12,817 01812242 506089 Miscellaneous Expense - County Ambulance Fuels 12,817 Reimbursement from Henry County for ambulance fuels 01102926 405555 Federal Categorical - Brownfields Grant - EPA 23,002 01812247 503136 Brownfields - Professional Services - Consultant 23,002 Project reimbursement 01100909 490801 Recovered Costs - Senior Services 2,502 01714212 501300 Senior Citizens - Part-time Wages 1,560 01714212 502100 Senior Citizens - Social Security 97 01714212 502110 Senior Citizens - Medicare 23 01714212 506049 Senior Citizens - Vehicle Fuels 822 Transportation Grant - 2nd Qtr 01100909 490104 Advance/Recovered Costs 11,476 01812242 506067 Misc Expense - RADAR Transit Porgram 11,476 Reimbursement from RADAR for gasoline 01101917 442402 Categorical Other State - Confiscated Assets - Comm. Attorney 328 01221082 506105 Commonwealth's Attorney - State Confiscated Assets 328 01101917 442401 Categorical Other State - Confiscated Assets - Police 364 01311085 506078 Police Dept - Conf Assets State 364 State Asset Forfeiture Proceeds Total General Fund: 50,489 50,489 Sewer Fund: 13103936 407700 Indebtedness - VRA Loan Proceeds 615,326 13551326 508224 Wastewater Maintenance - SRI Project - Phys. Plant Exp. 615,326 VRA Reimbursement #10 Total Sewer Fund: 615,326 615,326