City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building Closed Session 7:00pm 7:30pm Regular Session Tuesday, April 25, 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. Appointments to Boards and Commissions as authorized by Subsection 1. B. Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. 7:30 - Regular Session Invocation & Pledge to the American Flag – Mayor Teague 1. Consider approval of minutes of the April 11, 2017 Council Meeting and the April 12, 13 and 17, 2017 Budget Work Sessions (2 mins) 2. Hear an overview of the Southside Neighborhood Tour and Meeting (15 mins) 3. Conduct a public hearing on the FY17-18 Budget and consider approval of FY18 Budget Ordinance on first reading. (45 mins) 4. Consider presentation of a proclamation regarding National Correctional Officers and Employees Week (10 mins) 5. Consider presentation of a proclamation recognizing Friday, April 28, 2017 as National Arbor Day (10 mins) 6. Consider approval on second 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) 7. Consider approval of ordinance on second reading for an organization requesting a local tax exemption (10 mins) 8. Consider approval of consent agenda (2 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 25, 2017 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from the April 11, 2017 Council Meeting, minutes from the April 12, 2017 Work Session, minutes from the April 13, 2017 Work Session and minutes from the April 17, 2017 Work Session Summary: None Attachments: April 11, 2017 Council Meeting minutes April 12, 2017 Work Session minutes April 13, 2017 Work Session minutes April 17, 2017 Work Session minutes Recommendations: Motion to approve minutes as presented. April 11, 2017 The regular meeting of the Council of the City of Martinsville, Virginia was held on April 11, 2017 in Council Chambers, Municipal Building, at 7:30 PM with Mayor Gene Teague presiding. Council Members present included Gene Teague, Chad Martin, Sharon Hodge and Kathy Lawson. Jennifer Bowles was not present. 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, Fire Chief Ted Anderson 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 Lawson, seconded by Council Member Hodge, with the following 4-0 recorded vote: Vice Mayor Martin, aye; Council Member Lawson, aye; Council Member Hodge, 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 4-0 recorded vote in favor to return to Open Session: Mayor Teague, aye; Council Member Hodge, aye; Vice Mayor Martin, aye; and Council Member Lawson, aye. Following the invocation by Vice Mayor Martin and Pledge to the American Flag, Mayor Teague welcomed everyone to the meeting. Consider approval of minutes from March 27, 2017 Neighborhood Meeting and the March 28, 2017 Council Meeting – Council Member Lawson requested that Assistant Police Chief Eddie Cassady be added to those present at the Neighborhood Tour and Meeting. Council Member Hodge made a motion to approve minutes as amended; Council Member Lawson seconded the motion with all Council Members voting in favor. Present a Proclamation honoring the Carlisle School Varsity girl’s basketball team for their accomplishments this past season and winning the Virginia Independent State Athletic Association D3 State Championship – Vice Mayor Martin read the proclamation. Team members and coaches were present to accept. Coach Craighead thanked Council and said the girls deserve to be commended and he is very proud of them for their third state championship. Martin provided the team with fliers to pass out in the community to serve as volunteer hours towards graduation. Mayor Teague thanked them for representing the community. Craighead said they are more than athletes; the team has an average 3.85GPA. April 11, 2017 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 – Mayor Teague read the proclamation and presented it to Joyce Martin, an Altrusa representative. Ms. Martin thanked Council. Hear an update from West Piedmont Workforce Investment Board – Rescheduled for May 9, 2017 Council Meeting. April 11, 2017 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 – City Manager Towarnicki summarized the steps needed to finalize the ordinance. Council Member Lawson made a motion to approve the ordinance on first reading; Council Member Hodge seconded the motion with the following roll call vote: Council Member Hodge, aye; Council Member Lawson, aye; Mayor Teague, aye; and Vice Mayor Martin, aye. April 11, 2017 Consider approval of ordinance on first reading for an organization requesting a local tax exemption – City Manager Towarnicki explained that the current ordinance presented reflects Council’s requested action from the March 28, 2017 meeting. Council Member Hodge made a motion to approve the ordinance on first reading. Council Member Lawson seconded the motion with the following roll call: Vice Mayor Martin, aye; Council Member Hodge, aye; Mayor Teague, aye; and Council Member Lawson, aye. April 11, 2017 Consider approval of consent agenda – Council Member Lawson made a motion to approve the consent agenda as presented; Council Member Hodge seconded the motion with all Members voting in favor. Hear a presentation of the proposed FY18 City budget – City Manager Towarnicki presented a Power Point detailing the FY2018 proposed budget including FY2017 highlights, objectives, budget challenges, revenue analysis, fund and reserve balances, expense analysis, and FY2018 proposed budget. Council Member Hodge asked if the requested budget increase for Social Services is required. Towarnicki said it is not a requirement; however, the department is losing employees and needs an extensive salary adjustment. Towarnicki detailed the next steps related to the budget approval and the work sessions scheduled over April 11, 2017 the next week. Towarnicki asked Council to set a public hearing for the April 25 meeting. Council Member Hodge made a motion to approve the public hearing for April 25, 2017 Council meeting; Council Member Lawson seconded the motion. Hodge thanked Towarnicki in addition to Linda Conover and Wayne Knox for their work on the budget proposal. She did express that she had problems with the presented budget including the real estate tax increase, the cuts in Police and Fire, and the decrease in school funding. She also does not agree with the increase for Social Services. All Council voted in favor of the public hearing. Mayor Teague also thanked those who contributed to the budget preparation and recommendation and feels that budget decisions each year get a little more difficult. April 11, 2017 April 11, 2017 April 11, 2017 April 11, 2017 April 11, 2017 April 11, 2017 Business from the Floor – Ural Harris, 217 Stewart Street – he agrees with Council Member Hodge and has issues with the suggestion to increase real estate tax. He also expressed concern on the Electric Department proposal. Harris said he feels that the cigarette tax will also have a negative effect on purchases within the City. Comments by Members of City Council – Council Member Hodge asks the residents to talk to Council Members about the budget. Council is weighing many options and choices and the Members need to make decisions that are in line with what the citizens want. Council Member Lawson agreed with Hodge and asked citizens to relay their feelings on the budget. Lawson reminded residents that April 29 is Hazardous Waste Day and is free of charge to all County and City residents. Lawson congratulated Kim Adkins who was appointed to the State Board of Education. She encouraged residents to go by the entrance to Roselawn Cemetery to view the field of flags; it is a beautiful scene to promote children’s safety. Vice Mayor Martin shared details on the Anonymous People documentary to be presented at NCI. Mayor Teague spoke in honor of Worth Carter who passed away; Carter had a passion for education and Teague recognized his willingness to work with the City. Teague asked for prayers for the family of a local 2-year old child killed in an ATV accident. Teague also pleaded with the residents to share their opinions and suggestions on how to adjust the budget to work best for the community. Comments by City Manager – City Manager Towarnicki encouraged Council to contact the City Manager’s office with any events that need to be added to the Council calendar. There being no further business, Council Member Hodge made a motion to adjourn the meeting; the motion was seconded by Vice Mayor Martin with all Council Members voting in favor. The meeting adjourned at 8:57pm. ______________________________________ ______________________________________ Karen Roberts Gene Teague Clerk of Council Mayor April 12, 2017 Budget Work Session A special meeting of the Council of the City of Martinsville, Virginia, was held on April 12, 2017, in Council Chambers, Municipal Building, at 6:00PM, to conduct a budget work session with Mayor Gene Teague presiding. Council Members present included: Mayor Teague, Vice Mayor Chad Martin (6:30pm-7:45pm), Council Member Kathy Lawson, and Council Member Sharon Brooks Hodge. Council Member Jennifer Bowles was not present. Staff present included: City Manager Leon Towarnicki, Clerk of Council Karen Roberts, Assistant City Manager Wayne Knox, City Attorney Eric Monday, Finance Director Linda Conover, Fire Chief Ted Anderson, Human Resources Director Kathy Vernon, MiNET Director Mike Scaffidi, Emergency Management Bobby Scott, MIS Esther Artis, Public Works Chris Morris, Senior Center Betsy Pace, Police Chief Sean Dunn, Police Captain Rob Fincher, Assistant Police Chief Eddie Cassady, and Utilities Director Durwin Joyce. Mayor Teague opened the meeting. City Manager Towarnicki explained that department heads were not prepared to make formal presentations but they are present if Council has questions or if there are important aspects that the department head needs to share regarding budget. Teague stated that the City is in a tough financial position and no one wants to cut funds or increase taxes. Although he feels that everyone does an amazing job throughout the City, he does have some tough questions across the board to make the best decisions. Council Member Hodge explained that her questions are based on the strategic plan and she hopes Council will make strategic decisions relating to the budget. Council Member Lawson said it’s not an easy budget and everyone will make sacrifices but they hope to make the best decisions. Fire Chief Ted Anderson presented a summary of how the budget cuts will affect the Fire Department, specifically the part-time personnel. Mayor Teague asked for an honest assessment of what cost savings could be generated by closing the Southside department. Anderson said an analysis would cost money and basically Southside doesn’t cost anything to operate, explaining that the building is paid for, maintenance is free and if the station is closed then the Fire Department will lose ISO points. In addition, the response time for both Fire and EMS calls will be affected. Kris Schrader explained the software used by the department. April 12, 2017 Budget Work Session Police Chief Sean Dunn detailed the previous year’s significant budget reduction and the affects that it has had on the department. The FY18 additional reduction would cost the department three additional police officer positions. The Police Department has made significant headway in crime prevention by 59% but it’s taken an excess of overtime because of the previous reduction. If not for JAG funding, the Police Department would be in a very tight spot. Mayor Teague asked that the number of vehicles tagged and insured by the City be looked at. Kathy Vernon, Human Resources Director said they were able to cut several line items including advertising which is reduced by 50% since most marketing is done online, retirement, unemployment, and wellness. Mayor Teague asked about the possibility of school purchasing being handled by the City Purchasing Department certified employees. Esther Artis explained that the Information Service department maintains approximately 250 computers throughout the City with replacement turnover every 5- 7 years. April 12, 2017 Budget Work Session Chris Morris explained the increase in staffing for Public Works is related to a new part-time custodian at the shop. The Garage maintains all City vehicles including Fire, Police and schools. Up until recently, some vehicle repairs were outsourced because there was not enough staff to keep up. All employees in the garage are ASE Certified. Finance Director Linda Conover explained that the Public Works Administrative position was divided between Public Works, Water and Telecom. Morris explained that the Engineering vacancy will not be filled and those responsibilities will fall on the Public Works director. Morris and Towarnicki summarized and answered questions regarding budget plans for Street Maintenance, Street Construction, and VDOT. Council asked City Attorney Monday to research the lease agreement on City leased parking lots and if that lease is required to continue. Morris explained that the electric service increased for the Incubator building because they are near full capacity. Council Member Hodge asked to look at the telecom budget line item for each department. Morris explained they are in negotiations with a competitive cell phone company offering better rates. Mayor Teague said it may be time to look at the policy of which employees get cell phones and could long distance calls be made on cell phones instead of office phones. Morris detailed departments recognizing the requested 5% budget decrease and explained the upgrade needed for the garage to cushion excessive electric charges. Betsy Pace of the Senior Center explained that their full-time office associate retired and was replaced by a part-time employee. Pace said additional reductions resulted in a decrease of $25,000. Postage was reduced as newsletters are no longer mailed but distributed to outside agencies and on the bus. City Manager Towarnicki has had discussions with the local YMCA about taking on some of the Senior Center activities but the transportation by the Senior Center is a big task. Council Member Hodge suggested using the PART bus to pick up some of the transportation needs. Public Work Director Chris Morris proposes to add one full-time person in Refuse to replace a part-time employee who will be retiring soon. Morris explained that the landfill budget increased due to mandated solvent pit work. Mike Scaffidi requesting one additional MiNET employee to adjust for the increase in service and customers and will provide for increased business and better customer service. Additional increases requested for equipment maintenance and warranty. Scaffidi confirmed that the increase in expenses would be compatible with April 12, 2017 Budget Work Session the increase in revenue. His department is also looking at technology to provide a near zero long distance charge. Andy Lash of Water Resources explained the increase in full-time salary would be attributed to adding one new employee, creation of the construction crew and the reallocation of staff. Durwin Joyce of the Electric Department explained there was an increase in purchase power however he has not asked for a rate increase. Joyce explained money has been added for a customer portal to keep customers updated on outages and power bill history. Full-time staff budget increased since multiple employees are receiving certification and receiving pay scale raises. Council Member Hodge asked about the change in utilities bills since the new meters have been installed. Joyce explained they projected a 1% increase with the new meters however the meters have not been in place long enough to compare. Old meters may have moved a little slower than actual usage resulting in a lower bill previously. There being no further business, Council Member Hodge made a motion to adjourn the meeting, Council Member Lawson seconded the motion with all Council Members in favor. The meeting adjourned at 9:35pm. ___________________________________ ___________________________________ Karen Roberts, Clerk of Council Gene Teague, Mayor April 13, 2017 Budget Work Session A special meeting of the Council of the City of Martinsville, Virginia, was held on April 13, 2017, in Council Chambers, Municipal Building, at 6:00PM, to conduct a budget work session with Mayor Gene Teague presiding. Council Members present included: Mayor Teague, Vice Mayor Chad Martin, Council Member Kathy Lawson, and Council Member Sharon Brooks Hodge. Council Member Jennifer Bowles was not present. Staff present included: City Manager Leon Towarnicki, Clerk of Council Karen Roberts, Assistant City Manager Wayne Knox, City Attorney Eric Monday, Finance Director Linda Conover, Public Works Manager Chris Morris, Garage Manager Lane Shively, Sheriff Steve Draper, Registrar Cindy Barbour, Commissioner of Revenue Ruth Easley, Clerk of Court Ashby Pritchett, and Treasurer Cindy Dickerson. Mayor Teague opened the meeting. Amanda Witt, representing CPEG requested the same funding and will expand efforts to meet the needs of the small business community. Witt explained the expansion of CPEG and plans for the Incubator, stating they will continue to mentor small businesses even if they don’t participate in the program. Tanya Verlik, Social Services Director stated 85.5% of funds come from state/federal with 15.5% from local funding. 20% of local residents are living in poverty. Social Services served 60 children in foster care, 261 children received child care benefits, and they prevented 119 families from separation. They received 405 validated complaints involving 558 children. Verlik detailed the adult programs such as eviction and electric cut-off notices. Over 7,000 households receive benefits including SNAP, TANF, etc. The County has approved requested funding; if the City does not approve the requested increase then Social Services would lose approximately $500,000 in Federal and State funding. April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session Rick Ward and Cecil Holland, representatives of Library detailed the programs and benefits of the Library and asked for level funding. Council Member Hodge asked April 13, 2017 Budget Work Session why outside agencies are not expected to make cuts like other City departments. Mayor Teague explained that the City and the County are under a contractual agreement regarding funding for the Library. Ward explained if the locality cuts funds, the state will cut fund. April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session Representative of the Health Department were present to request level funding, sharing that the Zika door-to-door campaign was very successful. Representatives explained the current budget and grants and the effect that retirees and replacement hires would have on level funding. JR Powell provided a 2016 summary printout for the award winning 911 dispatch center including upgrades and equipment replacement in addition to upgrades expected in the coming year. April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session Jack Hanbury, Vice President of Patrick Henry Community College presented a slide show detailing the college history and current building addition which would offer a cooperative relationship with local facilities to accommodate equipment and allow space to train. Ruth Easley, Commissioner of Revenue explained payroll increases that were approved previously by Council and the State along with a reduction in budget for the Assessor’s office since the coming year is not a reassessment year. City Treasurer Cindy Dickerson requested an increase in office supplies to accommodate increased mailings and correspondence with the public. Registrar Cindy Barbour explained there are no major budget changes from the previous year. There will be a dual primary this year in June with elections every November. However, some voting machines will need replacement in 2020 to meet ADA compliance. Ashby Pritchett, Circuit Court Clerk’s office detailed the reimbursements from grants. Pritchett explained the increase of the full-time budget line is related to the office employees becoming master certified, however the state will provide an annual supplement for those certified clerks. Pritchett explained budget decreases by partnering with the Supreme Court which provides better access across the board with all Clerk offices. Sheriff Steve Draper explained that staffing standards are based on Virginia Sheriff’s recommendations. The department had 6 retirees and 2 resignations this past year. Draper detailed reasons for increases or decreases of each line item. He also explained projects completed by the Jail Annex this past year. Finance Director Linda Conover detailed the revenue specifics for the Sheriff’s Department. April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session City Manager Towarnicki explained the Capital budget includes the proposed meals tax increase so if Council does not approve that tax increase, then that total would need to be revised and additional cuts would be needed. Sheriff Draper detailed April 13, 2017 Budget Work Session capital priorities would be the intercom system, the cameras and the lock door system. Towarnicki asked department heads to provide capital needs so that the Capital committee could go through the list once they know how much money is available, with a consensus on how to allocate the available funds; only 1/3 of the requested list will be funded. Based on the list, Towarnicki explained which items would need to be priority but voting machines, computer equipment, security system, records management system, roof issues, fuel dispensers at the garage need upgrading. Mayor Teague suggested looking at reduction of fleet vehicles and potentially paying mileage. Shively said overall the fleet is in good condition with only a few replacement vehicles needed. April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session April 13, 2017 Budget Work Session There being no further business, Council Member Lawson made a motion to adjourn the meeting, Council Member Hodge seconded the motion with all Council Members in favor. The meeting adjourned at 8:45pm. ___________________________________ ___________________________________ Karen Roberts, Clerk of Council Gene Teague, Mayor (Copies of handouts are in meeting folder in City Manager’s Office) April 17, 2017 Budget Work Session A special meeting of the Council of the City of Martinsville, Virginia, was held on April 17, 2017, in Council Chambers, Municipal Building, at 6:00PM, to conduct a budget work session with Mayor Gene Teague presiding. Council Members present included: Mayor Teague, Vice Mayor Chad Martin, Council Member Kathy Lawson, Council Member Jennifer Bowles and Council Member Sharon Brooks Hodge. Staff present included: City Manager Leon Towarnicki, Clerk of Council Karen Roberts, Assistant City Manager Wayne Knox, City Attorney Eric Monday, and Finance Director Linda Conover. School Board members included Donna Dillard, Eric Hruza, and Joan Montgomery. Additional school personnel included School Superintendent Zebedee Talley, Executive Director of Administrative Services Travis Clemons, Assistant Superintendent of Instruction Angilee Downing, and Clerk of Board Janie Fulcher Mayor Teague opened the meeting. Dr. Talley shared a power point explaining the school board’s vision statement, four division goals, general fund revenue and expenditure estimates, average student membership – down from 130 to 7 students below the goal, local funding history, general fund expenses, function summary, cost center summary, school budget request for FY18, primary expenditure adjustments, remaining budget deficit, and Community Eligibility Provision Program. The school board requests a $380,734 budget increase plus $135,000 in expected fund balance. April 17, 2017 Budget Work Session April 17, 2017 Budget Work Session April 17, 2017 Budget Work Session City Manager Towarnicki and Finance Director Linda Conover went over a summary of budget fund balance highlights and answered Council’s questions. Towarnicki clarified the position cut recommendation for the Police Department and explained that there would not be a reduction of police staff according to the current roster of 50 employees (45 officers and 5 staff), but would not allow funding of the 6 positions unfilled since 2011. Towarnicki explained that he is waiting for the Police Department to get back to him on this reduced budget cut request. City Manager Towarnicki shared additional budget reductions that would total $106,458 that could be plugged back in as a reduction of expenses. Council Member Hodge made a motion to remove the proposed real estate increase. Vice Mayor Martin seconded the motion with all council voting in favor. Council Member Bowles made a motion to pull funds from the utilities cash reserve to allow level funding for the schools, level funding for the Police Department and level funding for the Fire Department, deviating from the Council’s policy. Council Member Hodge seconded the motion. Mayor Teague requested Towarnicki research and present projections on what that would do to the future budget and requested the April 17, 2017 Budget Work Session motion be held until the public hearing to allow additional information be presented. Bowles stated that she stands firm on her decision but is willing to table the motion until additional information can be presented. Bowles requested that the original motion be tabled; Hodge retracted her second. Bowles made a motion requesting City Manager Towarnicki to research the utilities cash reserve request to provide level funding for those departments; Council Member Lawson seconded the motion with all Members in favor. Council Member Hodge made a motion for level funding for Social Services instead of the requested increase; Council Member Bowles seconded the motion with all Council Members voting in favor. Council Member Lawson, having looked over the Henry County contributions to outside agencies, pointed out that Piedmont Arts receives $19,240 from the City while Henry County gives them $8,500. Council Member Lawson made a motion to drop funding for Piedmont Arts to $8,500 to match Henry County’s contribution. Council Member Hodge seconded the motion. All Council Members voted in favor of the motion with the exception of Council Member Bowles who voted against it. Council Member Lawson made a motion to drop funding for Longwood Business Development from $8,550 to $4,513 to match what Henry County contributes. Council Member Hodge seconded the motion with all Council voting in favor. City Attorney said the parking lots have been subleased to other agencies. Finance Director Conover says the only payment received for lot usage is from the phone company. Mayor Teague asked to revisit the parking lot option to see which ones the City can eliminate and which we are under contract for. Mayor Teague confirmed that the Senior Program would not be cut. He asked Towarnicki to recap approved motions. There being no further business, Council Member Hodge made a motion to adjourn the meeting, Vice Mayor Martin seconded the motion with all Council Members in favor. The meeting adjourned at 8:39pm. ___________________________________ ___________________________________ Karen Roberts, Clerk of Council Gene Teague, Mayor  City Council Agenda Summary Date: April 25, 2017 Item No: 2. Department: City Council Issue: Hear an overview of the April 24, 2017 Southside area neighborhood tour and meeting. Summary: A recap of the neighborhood tour and Southside neighborhood community meeting held at Wesley Memorial Methodist Church at 824 Starling Avenue on Monday, April 24th 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: April 25, 2017 Item No: 3. Department: City Council Issue: Conduct a Public Hearing on the FY17-18 Budget and consider approval of FY18 Budget Ordinance on first reading. Summary: Attached is the summary of the 2017-18 Budget in ordinance form along with ordinances 2017-01 and 2017-2 regarding the proposed meals and cigarette tax increase. Attachments: 2018 Budget Ordinance Ordinance 2017-1 Meals Tax Ordinance 2017-2 Cigarette Tax Recommendations: Conduct a public hearing and consider adoption of each ordinance separately on first reading with a roll call vote.  CITY OF MARTINSVILLE, VIRGINIA ORDINANCE No. 2017-U-B The Budget for Fiscal 2017-2018 BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in regular session assembled May 9, 2017, that the following sums of money be and hereby are appropriated – by specified Fund – for the City’s fiscal year ending June 30, 2018, from the following Fund sources of estimated revenue: SUMMARY STATEMENT OF BUDGET ESTIMATES, 2017-2018 Changes Fund Projected Budgeted in Fund Revenues Expenditures Balance General $ 29,745,846 $ 29,745,846 - Meals Tax $ 2,187,978 $ 1,973,373 $ 214,605 Capital Reserve $ 1,100,638 $ 1,100,638 - Refuse $ 2,468,625 $ 2,572,958 $( 104,333) Telecommunications $ 1,772,761 $ 1,724,736 $ 48,025 Water $ 3,854,065 $ 4,129,701 $( 275,636) Sewer $ 4,428,512 $ 5,450,167 $( 1,021,655) Electric $ 20,491,707 $ 21,366,005 $( 874,298) Cafeteria $ 1,532,483 $ 1,532,483 - Schools $ 22,262,669 $ 22,643,403 $( 380,734) CDBG $ 12,380 $ 800 $ 11,580 Totals $ 89,857,664 $ 92,240,110 $ (2,382,446) Tax Rates (unchanged): Real Estate: $1.0621 per $100 assessed value Personal Property: $2.30 per $100 assessed value Machinery & Tools: $1.85 per $100 assessed value BE IT FURTHER ORDAINED by the Council that this Ordinance shall be effective on and after July 1, 2017. ****** Attest: ___________________________ Karen Roberts, Clerk of Council ___________________________ _____________________ Date Adopted Date Effective  City of Martinsville, Virginia Ordinance No. 2017-1 BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in Regular Session held on May 9, 2017, that Section 21-75 of the Code of the City of Martinsville, be, and hereby is, amended to read as follows: Sec. 21-75. Levy. There is hereby imposed and levied by the city on each person a tax at the rate of six and one-half (6 ½) seven (7) percent on the amount paid for meals purchased after midnight of August 31, 2017 from any food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not. ********* Attest: ________________________________ Karen Roberts, Clerk of Council _______________ _______________ Date Adopted Date Effective  City of Martinsville, Virginia Ordinance No. 2017-2 BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in Regular Session held on May 9, 2017, that Section 21-103 of the Code of the City of Martinsville, be, and hereby is, amended to read as follows: Sec. 21-103. Tax levied. There is hereby levied and imposed by the city upon each and every sale of cigarettes after midnight of August 31, 2003 2017, a tax equivalent to twenty cents ($0.20) thirty cents ($0.30) for each pack of cigarettes sold within the city. The amount of such tax shall be paid by the seller, if not previously paid, in the manner and at the time provided for in this article. ********* Attest: ________________________________ Karen Roberts, Clerk of Council _______________ _______________ Date Adopted Date Effective  City Council Agenda Summary Meeting Date: April 25, 2017 Item No: 4. Department: City Council Issue: Consider presentation of a proclamation regarding National Correctional Officers and Employees Week. Summary: Sheriff Steve Draper will be present to accept the proclamation. Attachments: none Recommendations: Mayor Teague to read the proclamation and present a signed copy to Sheriff Steve Draper.  PROCLAMATION National Correctional Officers and Employees Week WHEREAS, one of the primary goals for the City of Martinsville is to provide its citizens with an effective judicial system that concentrates on quality for all of our citizens; and WHEREAS, the City of Martinsville’s dedicated correctional officers are essential to the success of our judicial process, and our correctional officers’ work includes daily exposure to a hostile environment with many of the most dangerous individuals in our society; and WHEREAS, Correctional Officers contribute daily to the protection of our citizens by housing dangerous felons in a humane environment, often at great risk to the officers’ own protection; and WHEREAS, the City of Martinsville is pleased to join with officials and distinguished correctional officers across America to recognize the achievements of these dedicated individuals. We are indebted to the International Association of Correctional Officers for continuing to emphasize the accomplishments of correctional officers worldwide; NOW, THEREFORE, for these significant reasons, I, Gene Teague, Mayor of the City of Martinsville, Virginia, do hereby proclaim May 1-May 7, 2017 “NATIONAL CORRECTIONAL OFFICERS AND EMPLOYEES WEEK” in the City of Martinsville and commend this observance to all of our citizens. _____________________________ Gene Teague Mayor  City Council Agenda Summary Meeting Date: April 25, 2017 Item No: 5. Department: Community Development Issue: Consider presentation of a proclamation recognizing Friday, April 28, 2017 as National Arbor Day. Summary: Every year in the month of April a holiday is celebrated, called Arbor Day. It is done so to remind the citizens of this nation, of the importance of trees and to remind them to support efforts to protect them. As has been the practice in past years, City Council approves a proclamation observing a day in April as Arbor Day in the City of Martinsville. Attachments: Proclamation Recommendations: The Mayor will read the Proclamation and present to Wayne Knox, representing the Tree Board.  P R O C L A M A T I O N WHEREAS, In 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS, Arbor Day is now observed throughout the nation and the world; and WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, lower our heating and cooling costs, moderate the temperature, clean the air, produce oxygen and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and countless other wood products; and WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community; and WHEREAS, trees, wherever they are planted, are a source of joy and spiritual renewal; NOW, THEREFORE, I, Gene Teague, Mayor of the City of Martinsville, do hereby proclaim April 28, 2017 as ARBOR DAY in the City of Martinsville, and I urge all citizens to celebrate Arbor Day and to support efforts to protect our trees and woodlands, and FURTHER, I urge all citizens to plant trees to gladden the heart and promote the well- being of this and future generations. _____________________________ Gene Teague Mayor  City Council Agenda Summary Meeting Date: April 25, 2017 Item No: 6. Department: Finance Issue: Consider approval on second 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 second reading with roll call vote.  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 25, 2017 (second 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 Finance, City Attorney, the City's bond counsel and financial advisor and all other officers, {V0141524.1 004086-091400 } 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 25th day of April, 2017 (second reading). _________________________________ The undersigned Clerk of the City Council of the City of Martinsville, Virginia hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the City Council held on April 25, 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 __________, 2017. ________________________________________ Clerk, City Council of City of Martinsville, Virginia {V0141524.1 004086-091400 } 3  City Council Agenda Summary Meeting Date: April 25, 2017 Item No: 7. Department: City Manager, City Attorney, Commissioner of the Revenue Issue: Consider approval of ordinance on second 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 adopted on first reading. Adoption on second reading is the final step. Attachments: Revenue Impact & Review Committee Recommendation Ordinance Recommendation: Adopt ordinance on second 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 25, 2017 Item No: 8. Department: Finance Issue: Appropriation Approval Summary: The attachment amends the FY17 Budget with appropriations in the following funds: FY17: General Fund: $ 20,954 – Reimbursements, Grant Attachments: Consent Agenda 4-15-17 Recommendations: Approve  BUDGET ADDITIONS FOR 4/25/17 ORG OBJECT DESCRIPTION DEBIT CREDIT FY17 General Fund: 01100909 490104 Advance/Recovered Costs 3,835 01431162 503190 City Hall Operations - Prof Service Bldg/Grounds Maint 1,937 01431162 506007 City Hall Operations - Repair & Maintenance Supplies 1,898 Installation of PA System 01100909 490104 Advance/Recovered Costs 2,217 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 1,640 01331108 502100 Sheriff/Corrections - Social Security 102 01331108 502110 Sheriff/Corrections - Medicare 24 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 328 01331110 506200 Sheriff/Annex - Prisoner Allowance 123 Reimbursement from Henry County for litter pickup - March 01100909 490104 Advance/Recovered Costs 1,902 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 1,410 01331108 502100 Sheriff/Corrections - Social Security 87 01331108 502110 Sheriff/Corrections - Medicare 21 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 282 01331110 506200 Sheriff/Annex - Prisoner Allowance 102 Reimbursement from Henry County for litter pickup - February 01100909 490104 Advance/Recovered Costs 3,000 01321102 506130 Fire Dept. - Repair & Maint.-Burn Building 3,000 Reimbursements for training supplies 01102926 443200 Categorical Federal - Nat'l Endowment for the Arts 10,000 01812242 505660 Misc. Exp. - Piedmont Arts - NEA Grant 10,000 Pass-through of funding Total General Fund: 20,954 20,954