City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building Closed Session 7:00pm 7:30pm Regular Session Tuesday, April 11, 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 –Vice Mayor Martin 1. Consider approval of minutes of the March 27, 2017 Neighborhood Tour and Meeting and the March 28, 2017 Council Meeting (2 mins) 2. Present a Proclamation honoring the Carlisle School Varsity girls basketball team for their accomplishments this past season and winning the Virginia Independent State Athletic Association D3 State Championship (10 mins) 3. Read and present a proclamation recognizing April 11, 2017 as the 100th anniversary of the founding of Altrusa International, Inc., and the 75th anniversary of the chartering of the Martinsville-Henry County club (10 mins) 4. Hear an update from West Piedmont Workforce Investment Board (15 mins) 5. Consider approval on first reading of an ordinance reciting the expediency of the issuance of up to $11,740,000 principal amount of water and sewer revenue bonds for the City’s sewer interceptor project (10 mins) 6. Consider approval of ordinance on first reading for an organization requesting a local tax exemption (10 mins) 7. Consider approval of consent agenda (2 mins) 8. Hear a presentation of the proposed FY18 City budget (30 mins) 9. 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. 10. Comments by members of City Council. (5 minutes) 11. Comments by City Manager. (5 minutes)  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from March 27, 2017 Neighborhood Tour and Meeting and March 28, 2017 Council Meeting. Summary: None Attachments: March 27, 2017 Neighborhood Tour and Meeting minutes March 28, 2017 Council Meeting minutes Recommendations: Motion to approve minutes as presented. March 27, 2017 Neighborhood Tour and Meeting Martinsville City Council toured the Northside and Chatham Heights area on March 27, 2017 beginning at 5:30pm. Those present for the tour were Mayor Gene Teague, Vice Mayor Chad Martin, Council Member Kathy Lawson, Council Member Jennifer Bowles and Council Member Sharon Hodge. Staff present included City Manager Leon Towarnicki, Property Maintenance Inspector Andy Powers, Property Maintenance Inspector Mark Price, Assistant City Manager Wayne Knox, and Officer Coretha Gravely. Mickey Powell of the Martinsville Bulletin was also present for the tour. The van left the City Municipal Building at 5:30pm, traveled down to Dillard Street and Warren Court. Wayne Knox described various elements of the Northside CDBG project. Council looked at several houses that have been completed as well as several yet to be done. The tour proceeded to Liberty Street, Stultz Road, Melody Lane, Northview Gardens, Commerce Court, back to Liberty Street, then headed north to Greyson Street. Council looked at several houses on the north side of Greyson Street; although these homes were in the County, the City has received several complaints on those. The homes did look dilapidated but they were boarded up, secured and essentially meet requirements at this time. The tour proceeded to Barrows Mill Road and toured Vine, Luck, Glade, and Ainsley Streets. The van traveled back to BMR and Roselawn Heights to look at a recently burned house, proceeded to Clearvew Drive, out to Chatham Road, then toured Banks and Myrtle Roads. Council also looked at the City Park and playground on Garden Lane. On the way back to the Municipal Building, Council looked at an area on Stoneway Drive that Mr. Powell discussed. Tour concluded at approximately 6:40 pm arriving back at the Municipal Building. The Northside and Chatham Heights Neighborhood Meeting was held at Chatham Heights Baptist Church, 1235 Chatham Heights, Martinsville, VA at 7:30 PM, with Mayor Gene Teague presiding. Other Council Members present included Vice Mayor Chad Martin, Council Member Sharon Hodge, Council Member Kathy Lawson, and Council Member Jennifer Bowles. Staff present: City Manager Leon Towarnicki, Clerk of Council Karen Roberts, Assistant City Manager Wayne Knox, Assistant Police Chief Eddie Cassady, Officer Coretha Gravely, Inspector Andy Powers, Inspector Mark Price, and Fire Chief Ted Anderson Mayor Teague called the meeting to order. Mark Price summarized the neighborhood tour and provided an update on the property maintenance report including a home on Barrows Mill Road. There have been 70 complaints and 147 inspections since the last meeting in addition to 9 demolition permits and 30 property maintenance notices. Council Member Hodge asked with property maintenance notices, what is the general turnaround time? Price said it depends on the issue and they are willing to work with residents to allow adequate time to get issues corrected. Mayor Teague asked Price to review the policy on cutting grass and at what point does it become a property maintenance issue. March 27, 2017 Neighborhood Tour and Meeting Price said if front and side yards are cut and not the backyard then it will pass inspection since the area seen from the road is being maintained. The fee to cut grass is $220 minimum. Once posted, the property owner has 7 days to mow the yard; habitual offenders only get 3 days to correct the issue. City Manager Towarnicki said the process was changed a few years back; properties can be cited by Inspections and Police. The whole process now takes days instead of weeks. Notices can be tracked online through the City website. Ted Anderson encouraged property owners to check the website regularly since the notices are not mailed so if the landlord doesn’t get the notice they will still be responsible for the bill. Price said even if there is no home on the property, a stake is driven in the ground for the notice to be posted. Resident asked what the City considers “junk” on properties that would be visible from the road. Price said anything that is not considered an outdoor item should be stored out of sight. Monday explained that Inspections is a complaint based system. No one goes around the City looking for infractions so it is up to the Police Department to spot those locations or residents to call it in and report it. Resident asked about litter on Chatham Road and asked what the best way to take care of that would be. Towarnicki said he would relay the information to the Sheriff’s Department and inmate crews would take care of it. Fire Department briefly discussed the smoke alarm installation program in conjunction with the Red Cross. Robert Lee, 917 Askin Street – expressed concern about speed and wrong way traffic on Askin Street. Assistant Police Chief Eddie Cassady said they would monitor it, maybe park the ghost car and add extra patrol. Lee expressed concern over an extremely high electric bill for a resident on Park Street and questioned why taxes are going up in the City. Council Member Hodge suggested that the resident contact the Electric Department and request an audit. Staff will research the electric bill for resident on Park Street and Council Members explained that taxes have not increased recently and there has been no decision by Council to raise taxes. George Sloan, 218 Grayson Street – stated his neighbor has trash all over the driveway and the bank. Property was visited during the tour and Inspections will check to see if a property/nuisance ordinance violation exists. Mr. Sloan also commented about speeding traffic on Greyson St. Cassady responded, indicating options such as extra patrol and the radar trailer would be explored. Ms. Wheeler asked about visibility at stop signs on Banks Road and Chatham Heights obstructed by bushes and cars. The Transportation Safety Committee will look into this area and if there is a visibility hazard they will add no parking signs and monitor overgrown bushes. Mr. McCain, Augusta Street in the County – stated that he drives through the City and is noticing a lot of litter on Augusta Street and Chatham Heights and states that people are parking on the wrong side of the road. It was noted this is a route frequently used by trucks March 27, 2017 Neighborhood Tour and Meeting traveling to the transfer station. Cassady confirmed that parking on the wrong side of the road is against the law and that officers try to notify citizens before issuing tickets but neighborhood resources officers are addressing this issue more often. Officer Gravely suggested this be added to the website and Channel 22 to let citizens know that illegal parking will be enforced. Mayor Teague said it would also be explained at Council on Tuesday night. Council Member Hodge suggested that if the Fire Department is going door-to-door about smoke detectors that they mention the parking situation. The need for more frequent litter cleanup along this area will be passed along to Public Works and the Jail Annex. Assistant Police Chief Cassady invited the residents to Lunch with a Cop on Thursday March 30 11:00am-1:00 at Chick-Fil-A; several officers will be present. Cassady informed the public that the Neighborhood resource officers are going door to door visiting residents and if a resident is not home, the officers are leaving their card in case the resident needs to reach them. Fire Chief Ted Anderson stated that the smoke alarm program was a huge success. Program has been offered 10 years and installations are handled the 3rd Saturday of each month. They are currently in the Starling Avenue area but residents are welcome to call if they are in need of alarms, they do not need to wait for the Fire Department to be in their area. Anderson said this was a joint program with American Red Cross and the detectors installed will last approximately 10 years while other detectors require a battery change every 6 months. Anderson encouraged residents to test their detector once a month. Henry County offers the same program. Resident asked if they will install or test carbon monoxide detectors, Anderson said they would. Resident asked if there was a detector available for residents who are hard of hearing; Anderson confirmed there are detectors to alert residents who are deaf or hard of hearing. Mayor Teague thanked Chatham Heights Baptist Church for hosting the neighborhood meeting. There being no further business, Council Member Hodge made a motion to adjourn the meeting, Council Member Bowles seconded the motion, all Council Members voted in favor. The meeting adjourned at 8:11pm ___________________________________ _______________________________ Karen Roberts Gene Teague Clerk of Council Mayor March 28, 2017 The regular meeting of the Council of the City of Martinsville, Virginia was held on March 28, 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, City Attorney Eric Monday, Clerk of Council Karen Roberts, Finance Director Linda Conover, Commissioner of Revenue Ruth Easley and Police Captain Rob Fincher. Mayor Teague called the meeting to order and advised Council would go into Closed Session beginning at 7:00 PM. In accordance with Section 2.1-344 (A) of the Code of Virginia (1950, and as amended) and upon a motion by Council Member Bowles, seconded by Council Member Lawson, with the following 5-0 recorded vote: Vice Mayor Martin, aye; Council Member Lawson, aye; Council Member Hodge, aye; Council Member Bowles, aye; and Mayor Teague, aye. Council convened in Closed Session to discuss the following matters: (A) Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. At the conclusion of 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. A motion was made by Council Member Hodge, seconded by Council Member Lawson, with the following 5-0 recorded vote in favor to return to Open Session: Mayor Teague, aye; Council Member Hodge, aye; Council Member Bowles, aye; Vice Mayor Martin, aye; and Council Member Lawson, aye. Following the invocation by Council Member Lawson and Pledge to the American Flag, Teague welcomed everyone to the meeting. Consider approval of minutes from March 10 and 11, 2017 Strategic Planning Session and March 14, 2017 Council Meeting – Council Member Bowles made a motion to approve minutes as presented, Council Member Hodge seconded the motion with all Council Members voting in favor. Hear an overview of the March 27, 2017 Northside/Chatham Heights area neighborhood tour and meeting – City Manager Towarnicki summarized the Northside and Chatham Heights tour including specific areas visited and issues recognized. Towarnicki also detailed information shared by Property Maintenance, the Fire Department and the Police Department as well as concerns expressed by residents at the neighborhood meeting and actions that would be taken. Towarnicki thanked Rev. Hatfield and the Chatham Heights Baptist Church for hosting the meeting. March 28, 2017 Presentation of proclamation recognizing April as Sexual Assault Awareness Month – Mayor Teague read the proclamation and representatives from the Southside Survivor Response Center were present and expressed their appreciation for Council’s support. 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 – Mayor Teague read the resolution. Council Member Bowles made a motion to approve the resolution; Council Member Hodge seconded the motion. Hodge reminded Council and residents of a previous discussion regarding housing in the area and amendments related to problem landlords and asked that Council continue to move forward with action. Mayor Teague asked City Manager Towarnicki and City Attorney Monday to bring that information back to Council after budget is complete. All Council Members voted in favor of the resolution. March 28, 2017 Consider approval of a resolution authorizing a public hearing and approving related actions related to potential financing of the City’s sewer interceptor project – City Manager Towarnicki detailed the financing agreement authorized to cover the sewer interceptor project, this resolution being the first step that will be needed to move forward with the financing for this project. Council Member Hodge made a motion to approve the resolution, Council Member Lawson seconded the motion with all Council voting in favor. March 28, 2017 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 – City Manager Towarnicki thanked Commissioner of Revenue Ruth Easley for her work on the reports provided. Easley said that Act 4 Ministries, Inc. had pulled their request for exemption. Life Stages Enrichment Services, Inc. has a for-profit side and a nonprofit side. IF Council chooses to grant the exemption approval, they will need to determine what kind of exemption the organization will qualify for and classify the organization as either benevolent or charitable. Life Stages representative Valerie Udofia detailed the Life Stages Enrichment Services program which serves mental health clients in the Martinsville-Henry County area and stated transportation for their appointments is a concern. Another component including housing would be a separate entity from other services. The organization serves 70-80 meals each week and provides a food pantry to those in need. Council Member Hodge confirmed that the food bank services would be included. Udofia confirmed that they transport approximately 50 clients each week at no charge. Average age of clients is 21 years of age and up and funding comes mostly from in-kind donations outside of the client base. The organization is looking at fundraising options to purchase a building, which would allow them to service over 100 clients. The food bank is for the community and not just their clients. Community meals are provided Tuesdays, Wednesdays and Thursdays and they also provide a meal to take home. Mayor Teague opened the public hearing. No one approached the podium; Teague closed the public hearing. Easley was invited back to share the recommendation. Easley explained options and recommendations and clarified stipulations with Ms. Udofia. The review committee recommends that because of the close relationship of the two organizations, exemption lines may be crossed and the review committee does not recommend an exemption at this time. Council Member Hodge says after hearing details from the organization, transportation is an important aspect in this area; Hodge made a motion to grant the exemption, no one seconded the motion so motion dies. Council Member Bowles expressed concern on the vehicle registrations and real estate property tax. Udofia explained that both vehicles are registered under the Enrichment Services organization and were registered according the DMV requirements. She also confirmed that there is no budget for employees; they have volunteers only who are committed to the cause. This organization will treat those clients who are turned away by other organizations in the community due to their actions or the severity of their mental instability. Teague said the exemption request applies to not only the organization today, but also any actions and property obtained in the future. Bowles stated that she is willing to consider the personal property but not real estate. Hodge suggested if Council considers the personal property exemption at this time and not the real estate, then they could request that again at a later date. Council Member Bowles made a motion that Section 21-12 March 28, 2017 of the City Code be amended to grant a local tax exemption for personal property owned by Life Stages Enrichment Services, Inc. and that the organization is hereby classified and designated as a charitable organization within the context of Section 6(a)(6) of Article X of the Constitution of Virginia; Council Member Hodge seconded the motion with all members voting in favor. March 28, 2017 March 28, 2017 Hear an update from the Martinsville-Henry County Economic Development Corporation – Mark Heath with the EDC was present and provided a monthly update regarding tourism, small business, research, and marketing/recruiting. Heath presented a video with information regarding the existing industry grant fund FY2015-FY2017, 2016 Martinsville-Henry County announced projects and new job positions, and Commonwealth Crossing promotion ads including a video. Heath said the Clearview site has been recommended to a client and hopes it will be a good fit. He said he would provide a report on March 28, 2017 how many employment positions are available verses those positions filled. Vice Mayor Martin asked that the ads be added to a jump drive for easy share with potential businesses. Hear an update on planned route changes related to the addition of a third bus and route to the local transit system – City Manager Towarnicki summarized the route changes that would go in to affect with the addition of a third bus, sharing the route map and tentative bus stop locations. There will be a meeting Monday April 10 at 6:30pm at Virginia Museum. Monday April 24 will begin a “soft-start” route where the additional bus will begin the new March 28, 2017 route; the full route will begin May 1. Signage will be added to new designated stop locations but residents can also flag down the bus or request the bus stop at an unassigned stop. Cost to ride the buses is $.50/fare. The City and County share the cost 50-50 but it is beneficial considering most stops are within the City limits. Towarnicki hopes to see a 33% increase in residents that utilize the services. Consider a request by the Virginia Municipal League to submit nominations for membership on the VML 2017 Policy Committees – Council Members volunteered for the committee they wished to serve on this coming year. March 28, 2017 Consider approval of consent agenda – Council Member Lawson made a motion to approve the consent agenda as presented; Council Member Bowles seconded the motion with all Members voting in favor. March 28, 2017 Business from the Floor – Ural Harris, 217 Stewart Street – commented about the public hearing on sewer financing and hopes citizens will be provided total cost the County will cover and what affect this financing will have on residential rates. Comments by Members of City Council – Council member Bowles congratulated the STAGS robotic team. She announced an academic camp being offered to fourth thru seventh graders sponsored by New Heights Foundation. Vice Mayor Martin shared information regarding the Habitat for Humanity Train the Trainer program at New College Foundation. Mayor Teague reminded residents that this weekend is race weekend and a good opportunity to make our community look good. Comments by City Manager – City Manager Towarnicki reminded Council that Thursday is the Leadership event and Pattie Farmer’s retirement reception. He said the Strategic Plan is being double-checked and a final draft will be available soon. The next Council meeting is April 11 and the budget will be presented that night. Council agreed on April 12, 13, and 17 for budget work session meetings. 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 9:30pm. ______________________________________ ______________________________________ Karen Roberts Gene Teague Clerk of Council Mayor  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 2. Department: Mayor and Council Issue: Present a Proclamation honoring the Carlisle School varsity girls basketball team for their accomplishments this past season and winning the Virginia Independent State Athletic Association D3 state championship. Summary: On Saturday, March 4th, the Carlisle School varsity girls basketball team won the Virginia Independent State Athletic Association D3 basketball championship defeating Christ Chapel Academy in the finals by a score of 59 – 31. The state championship marks Carlisle School’s 7th state basketball championship out of 8 finals appearances. Members of the basketball team and coaches will be attending Council’s meeting on April 11th. Attachments: Proclamation honoring the Carlisle School varsity girls basketball team. Recommendations: No action needed by Council  Proclamation HONORING THE CARLISLE SCHOOL VARSITY GIRLS BASKETBALL TEAM WHEREAS, Carlisle School is a member of the Virginia Independent State Athletic Association, competing in the Blue Ridge Conference with other local and regional teams in a variety of high school sports; and WHEREAS, the Carlisle School varsity Girls basketball team completed an outstanding year, winning the VISAA D3 state championship on Saturday, March 4, 2017, defeating Christ Chapel Academy by a score of 59-31 ; and WHEREAS, the championship marks Carlisle School’s 7th state basketball championship out of 8 state finals appearances, and WHEREAS, team members are Tyeisha Williams, Erika Carter, Victoria Belcher, Laya Young, Kayla McGhee, Cinnamon Stanfield, Daisy Harris, McKenzie Friedrichs and Brista Vincent ; and WHEREAS, Athletic Director and Head Coach Mancino Craighead ; Assistant Coaches Bill Adkins, Janika Hunt and Tray Carter; and all the team players are to be congratulated for their hard work, dedication, and outstanding achievement; NOW, THEREFORE, on this 11th day of April 2017, Martinsville City Council hereby recognizes and commends the Carlisle School varsity girls basketball team for their extraordinary achievement in winning the Virginia Independent State Athletic Association state championship and for being a source of pride for our entire community. Gene Teague, Mayor  City Council Agenda Summary Date: April 11, 2017 Item No: 3. Department: City Council Issue: Read and present a proclamation recognizing April 11, 2017 as the 100 anniversary of the founding of Altrusa International, Inc., and the 75th th anniversary of the chartering of the Martinsville-Henry County club. Summary: A member of the Martinsville-Henry County Altrusa International club will be present to accept the proclamation. Attachments: Proclamation Recommendations: No action by Council needed - the Mayor will read and present the proclamation.  Proclamation RECOGNIZING THE CENTENNIAL ANNIVERSARY OF ALTRUSA INTERNATIONAL, INC. WHEREAS, Altrusa International, Inc. is a global non-profit organization, leading local communities to become better through leadership, partnership and service; and WHEREAS, Altrusa International, Inc. organized on April 11, 1917, in Nashville, Tennessee, is a community service organization that values diversity and contributes to the good of the community; and WHEREAS, Altrusa International, Inc. encourages members to reach their full potential in service, patriotism, and community leadership; and WHEREAS, Altrusa International, Inc. volunteers have provided more than a million hours of service to local communities; and WHEREAS, Altrusa International, Inc. sponsors ASTRA Clubs, a youth program designed to develop future leaders and community volunteer opportunities; and WHEREAS, Altrusa International, Inc. is celebrating its 100th birthday around the world on April 11, 2017 NOW, THEREFORE BE IT PROCLAIMED That I, Gene Teague, Mayor, along with members of Martinsville City Council do hereby congratulate Altrusa International, Inc. on its 100th birthday and hereby proclaim April 11, 2017 as Altrusa International, Inc. Day in the City of Martinsville. Furthermore, all citizens are called upon to take note of Altrusa International’s significant achievements and contributions. ____________________________________ Gene Teague, Mayor  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 4. Department: City Manager Issue: Hear an update from West Piedmont Workforce Investment Board. Summary: Workforce Investment Board Executive Director Lisa Fultz will provide an update on WIB activities and related work. Attachments: None Recommendations: No action by Council is needed – this item is presented for information purposes.  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 5. Department: Finance Issue: Consider approval on first reading of an ordinance reciting the expediency of the issuance of up to $11,740,000 principal amount of water and sewer revenue bonds for the City’s sewer interceptor project. Summary: The City proposes to issue water and sewer revenue bonds for the purpose of assisting in the acquisition, construction, renovation, and equipping of sewer system repairs, replacements, and capital improvements, and for certain costs of issuance of the Bonds, all for municipal purposes not to exceed $11,740,000 in principal amount. Approval of this ordinance is required for the City to initiate financing of the project. Attachments: Copy of ordinance Recommendations: Motion to approve the ordinance on first reading with roll call vote. Consideration of approval on second reading will occur at Council’s April 25, 2017 meeting.  CITY OF MARTINSVILLE, VIRGINIA AN ORDINANCE RECITING THE EXPEDIENCY OF THE ISSUANCE OF UP TO $11,740,000 PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA, AND SETTING FORTH THE PURPOSE, IN GENERAL TERMS, FOR WHICH THE BONDS ARE TO BE ISSUED, THE MAXIMUM AMOUNT OF THE BONDS TO BE ISSUED AND THE MAXIMUM LENGTH OF TIME SUCH BONDS WILL BE OUTSTANDING Adopted on April 11, 2017 (first reading) {V0141524.1 004086-091400 } Be it Ordained by the Council of the City of Martinsville, Virginia: Section 1 - Findings and Determinations The City Council ("City Council") of the City of Martinsville, Virginia (the "City") proposes to issue bonds for the purpose of assisting in the acquisition, construction, renovation and equipping of sewer system repairs, replacements, and capital improvements, all for municipal purposes (together, the “Project”) and hereby finds and determines that: (i) the City is in need of funds to be used by the City for the Project including paying for costs of issuance of the Bonds (defined below); (ii) the obtaining of such funds will be for municipal purposes of the City, for the welfare of citizens of the City for purposes which will serve the City and its citizens pursuant to the authority of the City to provide funds for the City’s facilities for municipal purposes; (iii) the most effective, efficient and expedient manner in which to provide such funds to the City is through the issuance of water and sewer revenue bonds in an original principal amount not to exceed $11,740,000 to be issued by the City as further described herein (the "Bonds") to be used for the acquisition, construction, renovation and equipping of the Project and for certain costs of issuance of the Bonds; (iv) the issuance of the Bonds is within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness; and, (iv) the issuance of the Bonds is in the best interests of the City and its citizens. Section 2 - Description of the Bonds The City Council finds that it is expedient for the City to borrow money and issue the Bonds for the Project in a maximum amount not to exceed ELEVEN MILLION SEVEN HUNDRED FORTY THOUSAND DOLLARS ($11,740,000). The maximum length of time that the Bonds will be outstanding is thirty years. The form and details of the Bonds which are proposed to be issued will be more specifically set forth in a City Ordinance to be entitled “AN ORDINANCE AUTHORIZING THE ISSUANCE OF UP TO $11,740,000 PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF, which will be introduced before the Council and considered for final passage following a public hearing on the issuance of the Bonds, as required by law. Section 3 - Further Actions Authorized The City Manager, Clerk of the Council, City Treasurer, City Attorney, Sands Anderson PC as bond counsel, Davenport & Company LLC as the City's financial advisor and all other officers, employees and agents of the City are hereby authorized and directed to take any and all such further action as shall be deemed necessary or desirable to facilitate consideration of the issuance of the Bonds. All actions of the City Manager, Clerk of the Council, City Director of {V0141524.1 004086-091400 } Finance, City Attorney, the City's bond counsel and financial advisor and all other officers, employees and agents of the City in furtherance of the issuance of the Bonds and the financing of the Project are hereby approved and ratified. Section 4 - Invalidity of Sections If any section, paragraph, clause or provision of this Ordinance shall be held invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining portions of this Ordinance. Section 5 - Headings of Sections The headings of the sections of this Ordinance shall be solely for convenience of reference and shall not affect the meaning, construction, interpretation or effect of such sections of this Ordinance. Section 6 - Effective Date and Filing of Ordinance Council hereby declares in the public interest that this Ordinance shall become effective immediately upon its passage. A copy of this Ordinance, certified by the Clerk of the Council, shall be filed with the Clerk of the Circuit Court of the City of Martinsville, Virginia. {V0141524.1 004086-091400 } 2 The Members of the Council voted as follows on the foregoing Ordinance: Ayes Nays Absent Abstentions Adopted this 11th day of April, 2017 (first reading). _________________________________ The undersigned Clerk of the City Council of the City of Martinsville, Virginia hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the City Council held on April 11, 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 Ordinance, a quorum was present. Dated this _____ day of April, 2017. ________________________________________ Clerk, City Council of City of Martinsville, Virginia {V0141524.1 004086-091400 } 3  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 6. Department: City Manager, City Attorney, Commissioner of the Revenue Issue: Consider approval of ordinance on first reading for an organization requesting a local tax exemption. Summary: On March 28, 2017, following a duly-advertised public hearing, City Council approved granting a local tax exemption on personal property owned by Life Stages Enrichment Services, Inc., under the designation as a charitable organization. Since there were multiple options regarding possible action Council may have taken at the March 28 meeting, an ordinance in final form was not available at that time. The ordinance has now been prepared and adoption on first reading is the next step. Attachments: Revenue Impact & Review Committee Recommendation Ordinance Recommendation: Adopt ordinance on first reading with roll-call vote.  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.  ORDINANCE 2017-TE-1 BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in regular session held on April 25, 2017 and pursuant to Section 58.1-3651 of the Code of Virginia, that Section 21-12 of the City Code be amended to add a subsection (o) as follows: o. Taxation exemption for Life Stages Enrichment Services, Inc. After convening a duly advertised public hearing and considering the factors set forth in Code of Virginia § 58.1-3651(B), the City Council of Martinsville Virginia hereby ordains the following: 1. Life Stages Enrichment Services, Inc., a nonprofit organization, is hereby classified and designated as a charitable organization within the context of Section 6(a)(6) of Article X of the Constitution of Virginia. 2. Personal property owned by Life Stages Enrichment Services, Inc. and used exclusively for charitable purposes on a nonprofit basis, as set forth in paragraph 1 of this subsection, is hereby determined to be exempt from local personal property taxation. 3. Continuance of the exemption shall be contingent on the continued use of the property in accordance with the purpose for which the organization is classified or designated. Attest: __________________________________ Karen Roberts, Clerk of Council __________________________________ Date Adopted __________________________________ Date Effective  City Council Agenda Summary Meeting Date: April 11, 2017 Item No: 7. Department: Finance Issue: Appropriation Approval Summary: The attachment amends the FY17 Budget with appropriations in the following funds: FY17: General Fund: $ 33,365 – Reimbursements, Grant, Asset Forfeiture CDBG Fund: $ 40,856 – Sale of Property Attachments: Consent Agenda 4-11-17 Recommendations: Approve  BUDGET ADDITIONS FOR 4/11/17 ORG OBJECT DESCRIPTION DEBIT CREDIT FY17 General Fund: 01102926 405555 Federal Categorical - Brownfields Grant - EPA 19,876 01812247 503136 Brownfields - Professional Services - Consultant 19,876 Project reimbursement 01100909 490137 Recovered Costs - Public Safety 13,107 01331108 501200 Sheriff/Corrections - Overtime 11,216 01331108 502100 Sheriff/Corrections - Social Security 695 01331108 502110 Sheriff/Corrections - Medicare 163 01311085 501200 Police Department - Overtime 960 01311085 502100 Police Department - Social Security 59 01311085 502110 Police Department - Medicare 14 Off Duty Security reimbursements 01101917 442401 Categorical Other State - Confiscated Assets - Police 382 01311085 506078 Police Dept - Conf Assets State 382 State Asset Forfeiture Proceeds Total General Fund: 33,365 33,365 CDBG Fund: 47100905 416208 Sale of Property 40,856 47832379 503123 NSP 3 - Rehab Construction 716 47913297 509177 Refund - PY Revenue 40,140 Sale of 814 Hundley - NSP 3 Program Total CDBG Fund: 40,856 40,856  City Council Agenda Summary Date: April 11, 2017 Item No: 8. Department: City Manager Issue: Hear a presentation of the proposed FY18 City budget. Summary: The proposed FY18 budget for the City will be presented. Budget work sessions will be held on Wednesday, April 12h beginning at 6:00 pm with Public Safety and other City departments; Thursday, April 13th beginning at 6 pm to discuss Constitutionals, Outside Agencies, and Capital; and Monday, April 17st beginning at 6 pm to discuss Schools, continue discussion/questions as may be needed and to wrap up. Additional sessions may be scheduled as needed. The proposed schedule calls for the budget public hearing on Tuesday, April 25 along with adoption of the budget ordinance on first reading, followed by approval/adoption of the budget ordinance on second reading at Council’s May 9th meeting. Attachments: None. The FY18 budget document will be presented at the April 11 meeting. Recommendations: Set the FY18 budget public hearing for April 25, 2017.