City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building Closed Session 7:00pm 7:30pm Regular Session Tuesday, May 23, 2017 7:00 – Closed Session Items to be considered in Closed Session, in accordance with the Code of Virginia, Title 2.2, Chapter 37—Freedom of Information Act, Section 2.2-3711(A)—Closed Meetings, the following: A. Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. 7:30 - Regular Session Invocation & Pledge to the American Flag – Council Member Lawson 1. Consider approval of minutes of the May 9, 2017 Work Session and the May 9, 2017 Council Meeting. (2 mins) 2. Recognize City Employees who are eligible for Service Awards – April 1 through June 30, 2017. (10 mins) 3. Consider presentation of a proclamation honoring Worth Harris Carter, Jr. (10 mins) 4. Presentation of a proclamation recognizing June 4-10, 2017 as Paint the Town Purple Week. (10 mins) 5. Read and present a proclamation recognizing the Martinsville Circuit Court Clerk’s Office as the first office in Virginia to certify the Clerk and all staff in the Career Development Program of the Virginia Court Clerk’s Association. (10 mins) 6. Hear an update from the Public Works Department regarding various projects and operations. (15 mins) 7. Consider scheduling a joint City Council – Martinsville Planning Commission Public Hearing for June 13, 2017 for the City’s Zoning Ordinance update. (5 mins) 8. Consider setting public hearing for Council’s June 13, 2017 meeting for the purpose of receiving names of citizens interested in an appointment for one 3-year term on the Martinsville City School Board, beginning July 1, 2017 and ending June 30, 2020. (5 mins) 9. Consider approval on first reading of 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, related to the City’s sewer interceptor project. (10 mins) 10. 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. 11. Comments by members of City Council. (5 minutes) 12. Comments by City Manager. (5 minutes)  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes from the May 9, 2017 Work Session and the May 9, 2017 Council Meeting Summary: None Attachments: May 9, 2017 Council Meeting minutes Recommendations: Motion to approve minutes as presented. May 9, 2017 Work Session with the Planning Commission A special meeting of the Council of the City of Martinsville, Virginia and the Planning Commission was held on May 9, 2017, in Council Chambers, Municipal Building, at 11:00AM, to conduct a joint work session on the zoning ordinance update. Council Members present included: Mayor Gene 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, Community Planner Susan McCulloch, Zoning Enforcement Specialist Tonya Rumley, and Commissioner of Revenue Ruth Easley. Planning Commission Board Members present included: Sarah Krauss, Ellen Wood, Ural Harris, Tim Martin and Joseph Martin. Mayor Teague opened the meeting and acknowledged Tim Martin, Planning Commission Chairman. City Manager Towarnicki summarized the zoning project and welcomed Frank Cox of The Cox Companies. Assistant City Manager Wayne Knox thanked Susan McCulloch and Tonya Rumley for their work on this project. Mr. Cox explained that this was the fourth year working on this zoning project and provided an update including the study goals, major concerns with the old zoning ordinance, and the new zoning ordinance with an explanation of keys to a “good” zoning ordinance. The subdivision ordinance has been rewritten but is not complete. The ordinance was designed with the applicant, staff, Commission and Council in mind. Cox detailed two major sections of the Zoning Ordinance organization including improved procedures and plan standards and improved zoning district regulations. Cox explained the renaming and breakdown of the districts as well as the comparative regulations, lot and building standards. Concerns were expressed regarding Airbnb properties and how those would fall under the zoning ordinance. Cox explained the detailed checklist that would hold the applicant as well as the architect accountable. Concerns were also shared regarding enforcement of landlords and property maintenance. May 9, 2017 Work Session with the Planning Commission May 9, 2017 Work Session with the Planning Commission May 9, 2017 Work Session with the Planning Commission May 9, 2017 Work Session with the Planning Commission May 9, 2017 Work Session with the Planning Commission Mayor Teague asked City Manager Towarnicki and Assistant City Manager Knox to consider a schedule moving this project toward a public hearing. Towarnicki said the tentative schedule for City Council Meetings would be May 23 to set the public hearing, the public hearing and approval on first reading will be held June 13 then Council’s final approval would be June 27, 2017. There being no further business, Council Member Bowles made a motion to adjourn the meeting, Council Member Hodge seconded the motion with all Council Members in favor. The meeting adjourned at 1:00pm. ___________________________________ ___________________________________ Karen Roberts, Clerk of Council Gene Teague, Mayor May 9, 2017 The regular meeting of the Council of the City of Martinsville, Virginia was held on May 9, 2017 in Council Chambers, Municipal Building, at 7:30 PM with Mayor Gene Teague presiding. Council Members present included Gene Teague, Sharon Hodge, Chad Martin, Jennifer Bowles, and Kathy Lawson. Staff present included City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts, Finance Director Linda Conover, Police Chief Sean Dunn, Deputy Police Chief Eddie Cassady, Human Resource Director Kathy Vernon, Lieutenant Rob Fincher, Fire Chief Ted Anderson, Deputy Fire Marshall Andy Powers, Code Compliance Inspector Mark Price, Inspection Permit Technician Tammy Davis, and Commissioner of Revenue Ruth Easley. Mayor Teague called the meeting to order. Following the invocation by Council Member Bowles and Pledge to the American Flag, Teague welcomed everyone to the meeting. Consider approval of minutes from the April 24, 2017 Neighborhood Tour and Meeting and April 25, 2017 Council Meeting – Council Member Lawson made a motion to approve the minutes as presented; Council Member Hodge seconded the motion with all Council Members voting in favor. Consider approval of FY18 Budget Ordinance on second reading – Mayor Teague said he would allow people to speak at the podium although this was not a public hearing. City Manager Towarnicki explained that the cigarette and meals tax would need to be included even though they were not in the original agenda. Towarnicki summarized the proposed budget. School Superintendent Dr. Zeb Talley was present and asked for $100,000 in additional funds, explaining the proposed budget for the schools and how it will require reductions in various departments. Mayor Teague asked Talley to continue to look at cost savings and Council can reevaluate incremental capital needs as necessary. Council Member Bowles expressed her full support for the schools and education. Bowles asked if Council cannot award the full $100,000 increase as requested, maybe they would consider approving $50,000. Mayor Teague asked where the $100,000 would be cut if not awarded. Talley explained that the cut would affect staffing. Council Member Bowles made a motion to provide the schools an additional $100,000 from cash reserve, Vice Mayor Martin seconded the motion. Bowles and Martin voted aye, Teague, Lawson and Hodge voted nay so motion failed. Council Member Lawson made a motion to approve Ordinance No. 2017-1 to increase the meals tax; Council Member Hodge seconded the motion with the following 5-0 roll-call vote: Council Member Hodge, aye; Council Member Bowles, aye; Council Member Lawson, aye; Mayor Teague, aye; and Vice Mayor Martin, aye. Council Member Hodge made a motion to approve Ordinance No. 2017-2 to increase the cigarette tax; Council Member Bowles seconded the motion with the following 5-0 roll-call vote: Council Member Bowles, aye; Vice Mayor Martin, aye; Council Member Hodge, aye; Mayor Teague, aye; and Council Member Lawson, aye. May 9, 2017 Council Member Bowles made a motion to approve the FY18 Budget Ordinance 2017-U- B as presented; Council Member Lawson seconded the motion with the following 5-0 roll-call vote: Council Member Lawson, aye; Council Member Hodge, aye; Council Member Bowles, aye; Vice Mayor Martin; aye, and Mayor Teague, aye. May 9, 2017 Read and present a proclamation recognizing Treylan Beamer for his accomplishments related to the recent Elks Lodge National Hoop Shoot competition – Council Member Bowles read and presented the proclamation. Treylan Beamer’s mother said it was a great experience and she thanked the Elks Lodge for their support. Mr. Steagall of the Elks Lodge said the family represented Martinsville well and said Beamer is not only a good athlete, but also a good student. May 9, 2017 Hear an update from West Piedmont Workforce Investment Board – Lisa Fultz updated Council on WIB including the Promise Grant and the Ride Solutions Grant, which is in place to encourage ride sharing and will be utilized to assist residents who would like to attend the Martinsville-Henry County job fair on June 14. Fultz also updated Council on the Financial Literacy Program, the Working Family Success Grant and on workforce training. She mentioned on-the-job training and incumbent training. Fultz asked that residents who think they may qualify for WIB services should contact the office. Fultz suggested that WIB could possibly collaborate the ride-share program with PART. Read and present a proclamation recognizing May 7 – 13, 2017 as Public Service Recognition Week – Council Member Hodge read and presented the proclamation. May 9, 2017 Consider presentation of a Proclamation recognizing May as Building Safety Month – Mayor Teague read the proclamation and Council presented it to staff in attendance. Fire Chief Ted Anderson thanked Council and recognized Mark Price, Andy Powers and Tammy Davis who were in attendance along with Kris Bridges who was not in attendance but represents Martinsville nationally. May 9, 2017 Consider presentation of a Proclamation regarding National Police Week 2017 and Peace Officers’ Memorial Day – Council Member Lawson read the proclamation. Council Members presented the proclamation to Chief Dunn and officers in attendance. Dunn thanked Council for the recognition and invited Council Members to the Martinsville-Henry County joint Memorial Ceremony Wednesday May 17 at 11:00am in Council Chambers. May 9, 2017 Hear an update from Martinsville Police Department staff regarding issues related to local opioid usage – Lt Fincher presented a PowerPoint and provided a brief description and what the drug classification for opioids includes. Drug and opioid overdose deaths continue to increase at an alarming rate and has become a nationwide epidemic. Chief Dunn shared local statistics of opioid drug abuse and said that heroin hit the area in August 2016 with several quick arrests. Dunn recognized members of the Drug-Free MHC program. It can take years to beat an opioid addiction. Dunn feels that Martinsville has a tough court system and Commonwealth Attorney to prosecute drug-related arrests and mentioned other departments and organizations that are partnering to build a drug task force. Dunn said that 118.5 pounds of prescription drugs were turned in during the Drug Take Back event at the Martinsville Fire Department. Dunn shared upcoming community events that will provide information and support. Greg Preston of the Community Recovery Program said the solution is not only awareness, but the community needs to focus on prevention and employment. Consider sale of property located at 310 Hairston Street, Martinsville, Virginia – City Manager summarized the history behind the property and the issues with the sewer line collapse under the home. The home was shown several times but received only one bid, which was increased to $15,000. Towarnicki recommended that Council accept the offer, although lower than the minimum originally discussed because over all, the sale will save the City May 9, 2017 money. Mayor Teague explained that City Council members serve as representatives of the Martinsville Redevelopment Housing Authority. For the purpose of the following agenda item, Council Member Hodge made a motion to recess as City Council and to convene as the Martinsville Redevelopment Housing Authority. Council Member Bowles seconded the motion with all members voting in favor. MRHA Chairman Gene Teague then opened discussion of the following item as the Martinsville Redevelopment Housing Authority. Housing Authority Member Lawson made a motion to sell the property as-is; Housing Authority Member Hodge seconded the motion with all members voting in favor. Authority Member Hodge made a motion to adjourn as the Housing Authority and reconvene as City Council, Authority Member Bowles seconded the motion with all members voting in favor. The Martinsville Redevelopment Housing Authority then adjourned and Mayor Teague reconvened the Council meeting. 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. May 9, 2017 Business from the Floor – Timothy Keffer, 218 Aaron Street expressed concerns about the properties on Aaron Street destroyed recently by fire, stating that residents in the area have respiratory and other health issues and feels that those fires are affecting the breathing quality of the neighborhood. He said they have looked at the first property that burned for four years and hopes that the second property will not take that long to clean up. Keffer also expressed concern about asbestos in the debris and the heath concerns that could cause. He feels that the sale of the steel could help pay for the cleanup costs. City Manager Towarnicki said one reason the first building clean up has taken so long was that the case was tied up in court. There is a grant available that may help provide a phase 1 assessment of the site and how it can be cleaned up. Fire Chief Anderson explained that the most recent burned building should not take as long and a contractor has been contacted however, the investigation is still causing a delay on the clean up process. Anderson says the fire is out and the fire department has a way to monitor the air quality around the homes and inside the home to ensure resident safety. Teague asked the Towarnicki and Anderson keep Council updated. Taryn Niblett of Chatham Heights expressed concern about the reading level of the local children and asked that Council consider bringing reading specialists back to the schools. Students need strong reading skills to be successful. James Roundtree, 1221 Mulberry Road requested Council reconsider and award the funds requested for the school budget, expressing his concern for his grandchildren’s education. May 9, 2017 Ural Harris, 217 Stewart Street expressed concern over Council’s budget decisions and says they keep pushing concerns forward to the next year. He hopes that next year, Council Members will have some good answers why the City is in such bad shape. Comments by Members of City Council – Vice Mayor Martin shared that he had the opportunity to speak to Altrusa and attended Decision Day at the school. Mayor Teague thanked Council Members for attending several events on his behalf the past week. Council’s thoughts and prayers are with City Attorney Monday in the passing of his mother. Comments by City Manager – City Manager Towarnicki referenced the Council calendar and upcoming events. Towarnicki shared Memorial Day events on Second Street, Carver Gardens and at Roselawn Cemetery. 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 9:26pm. ______________________________________ ______________________________________ Karen Roberts Gene Teague Clerk of Council Mayor  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 2. Department: Human Resources Issue: Recognize City Employees who are eligible for Service Awards – April 1 – June 30, 2017. Summary: The Service Award Program is designed to build individual morale and show appreciation to the long-service employee for their faithful service to the City of Martinsville. Attachment: Listing of City Employees who are eligible for the service award for the fourth quarter of FY 16-17. TO BE READ BY MAYOR. NO ACTION NECESSARY. SERVICE AWARD RECIPIENTS FOURTH QUARTER - FISCAL YEAR 16-17 FOR THE PERIOD OF APRIL 1 – JUNE 30, 2017 NAME DEPARTMENT YEARS OF SERVICE AMANDA SHOUP Treasurer's Office 5 CATHERINE BURTON Commonwealth Attorney's Office 5 DINA DAVIS Sheriff's Department 5 DWAYNE ROBERTSON Fire/EMS 5 DWAYNE SPENCER Public Works 5 HARLEY DURHAM Police Department 5 KAREN ROBERTS City Manager’s Office 5 KATHRYN DODSON Finance 5 MICHELLE LYONS Police Department 5 LANE CLARK Police Department 10 LAWRENCE CLARK Sheriff's Department 10 MARK PETERS Police Department 10 EARL PRESTON Sheriff's Department 15 TODD OWEN Fire/EMS 15 ANITA SOWERS Police Department 20 CONNIE CANNADAY Sheriff's Department 20 KEVIN TURNER Sheriff's Department 20 MILDRED MONTGOMERY Sheriff's Department 20  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 3. Department: City Council Issue: Consider presentation of a proclamation honoring Worth Harris Carter, Jr. Summary: At the May 23 meeting, a proclamation will be read and presented to members of the Carter family honoring the late Worth Harris Carter, Jr. who passed away on Friday, April 7, 2017. Attachments: Proclamation Recommendations: Mayor to read and present the proclamation. No formal action by Council is necessary.  Proclamation HONORING WORTH HARRIS CARTER, JR. WHEREAS, Longtime community leader and banker, Worth Harris Carter, Jr, passed away on Friday, April 7, 2017, at the age of 79; and WHEREAS, Worth H. Carter, Jr. began his banking career as an examiner for the Federal Reserve Bank of Richmond, VA examining banks in Virginia, West Virginia, Maryland, North Carolina, and South Carolina from January, 1960 to January, 1964, and from January, 1964 to June, 1973 as Vice-President and Comptroller at Piedmont Trust Bank in Martinsville; and WHEREAS, Beginning in June, 1973 Mr. Carter ventured out on his own, eventually organizing and opening 10 new community banks in Rocky Mount, Martinsville, Danville, Floyd, South Boston, Lynchburg, Galax, Fredericksburg, Staunton, and Roanoke, all eventually merging in 2006 as Carter Bank & Trust; and WHEREAS, Mr. Carter served as Chairman and CEO of Carter Bank & Trust, growing the bank from 1 office with 8 employees and $1.2 million in total assets in 1974, to 123 offices throughout Virginia and North Carolina with approximately 975 employees and $4.5 billion in total assets; and WHEREAS, Mr. Carter also devoted time to the community, particularly related to education serving for 21 years on the Martinsville City School Board, 11 years as its Chairman; NOW, THEREFORE, on this 23rd day of May, 2017, Martinsville City Council hereby honors the late Worth Harris Carter, Jr. for the contributions he made not only to our community but also to others, for the entrepreneurial spirt he exemplified, and for helping make our community a much better place for all. We extend our condolences to the entire Carter family. _____________________ M. Gene Teague, Mayor  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 4. Department: City Manager Issue: Presentation of proclamation recognizing June 4-10, 2017 as Paint the Town Purple Week. Summary: A representative from American Cancer Society will be present to accept the proclamation. Attachments: Proclamation Recommendations: No action needed  PROCLAMATION PAINT THE TOWN PURPLE WEEK JUNE 4 – 10, 2017 WHEREAS, cancer is widely recognized as a disease that touches the lives, both directly and indirectly, of a vast number of people in the City of Martinsville and the surrounding community; and WHEREAS, cancer’s prevalence is too profound to ignore; that it may strike anyone at any time, regardless of age, race, ethnicity, religion, and/or socio-economic status; and that too many new diagnosed cases and deaths are estimated for 2017; and WHEREAS, all members of the community should be knowledgeable of the existence of a local American Cancer Society office in the City of Martinsville that is available to assist cancer patients and their families or caregivers by alleviating the emotional and/or financial burdens associated with treatment; and WHEREAS, all citizens should become involved with Relay For Life of Martinsville and Henry County as a way to celebrate, remember, and fight back against cancer; so that, together, we can spread the message of hope and raise money to help find a cure for this dreaded disease; and WHEREAS, all local restaurants, businesses, and other area organizations should participate in our “Paint the Town Purple” initiative by displaying event flyers and purple ribbons or by displaying the color purple in any way possible in or around their places of business to show their support for those people in our community currently battling cancer, for those who won their fight, and for those who were taken from us too soon; NOW, THEREFORE, I, Gene Teague, Mayor, do hereby proclaim the week of June 4th – June 10th, 2017, as “Paint the Town Purple Week” and call upon all residents, community agencies, faith groups, medical facilities, restaurants, and businesses to participate in this initiative to show their support for cancer patients and their families, thereby bringing this community closer together for a common cause. ______________________________ Gene Teague, Mayor  City Council Agenda Summary Date: May 23, 2017 Item No: 5. Department: City Council Issue: Read and present a proclamation recognizing the Martinsville Circuit Court Clerk’s Office as the first office in Virginia to certify the Clerk and all staff in the Career Development Program of the Virginia Court Clerk’s Association. Summary: The Martinsville Circuit Court Clerk’s office entire staff is the first office in Virginia to certify the clerk and all staff in the Career Development Program of the Virginia Court Clerks’ Association. In doing so, the Clerk and the five Deputy Clerks have earned a newly authorized professional credential, respectively awarded the title of “Master Circuit Court Clerk”, and “Master Deputy Circuit Court Clerk.” Office staff includes Ashby Pritchett, Clerk, Jean Nunn, Chief Deputy, Terry Morton, Erika Hamilton, Betty Wagoner, and Jennifer Coplin. Attachments: Proclamation Recommendations: No action by Council needed - the Mayor will read the Proclamation.  Proclamation HONORING THE CLERK AND STAFF OF THE MARTINSVILLE CIRCUIT COURT CLERK’S OFFICE WHEREAS, In 2014 the Virginia Court Clerks’ Association established the Career Development Program to enourage professionalism by improving the personal skills, knowledge, and abilities of Circuit Court Clerks and Deputy Clerks; and WHEREAS, Martinsville Circuit Court Clerk Ashby Pritchett completed all the required professional and educational requirements in 2014, earning the title of “Certified Court Manager” in the Court Management Program at the National Center for State Courts; and WHEREAS, Jean Nunn and Erika Hamilton completed educational requirements in 2014, followed by Terry Morton and Betty Wagoner in early 2015, and Jennifer Coplin in early 2016; and WHEREAS, With the completion of the educational and training requirements, the Martinsville Circuit Court Clerk’s Office is the first office in Virginia to certify the Clerk and all staff in the Career Development Program of the Virginia Court Clerks’ Association, earning the newly authorized professional credential of “Master Circuit Court Clerk” and “Master Deputy Circuit Court Clerk”; NOW, THEREFORE, on this 23rd day of May, 2017, Martinsville City Council hereby recognizes and commends Martinsville Circuit Court Clerk Ashby Pritchett, Chief Deputy Jean Nunn, and Deputy Clerks Terry Morton, Erika Hamilton, Betty Wagoner, and Jennifer Coplin for their achievement in earning the “Master” designation and for their continuation of professional and outstanding service to the citizens of Martinsville. _____________________ M. Gene Teague, Mayor  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 6. Department: Public Works Issue: Hear an update from the Public Works Department regarding various projects and operations. Summary: Chris Morris, Public Works Director, will present a brief update on Public Works Issues and Projects Attachments: None Recommendations: This is for informational purposes only. No action is required of Council  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 7. Department: Community Development Issue: Consider scheduling a joint City Council – Martinsville Planning Commission Public Hearing for June 13, 2017 for the City’s Zoning Ordinance update. Summary: The Martinsville Planning Commission held a regularly scheduled meeting on May 18, 2017, for the purpose of reviewing the final draft of the updated Zoning Ordinance. Following the final review of the proposed update of the Zoning Ordinance and its related zoning map, it was unanimously agreed to request that a joint public hearing with City Council be scheduled for Tuesday, June 13, 2017 at Council’s regular meeting. Attachments: None Recommendation: It is recommended that City Council set Tuesday, June 13, 2017 as the joint Council – Planning Commission public hearing.  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 8. Department: City Manager Issue: Consider setting a public hearing for Council’s June 13, 2017 meeting for the purpose of receiving names of citizens interested in an appointment for one 3-year term on the Martinsville City School Board, beginning July 1, 2017 and ending June 30, 2020. Summary: Only those citizens whose names are brought up during the Public Hearing can be considered for appointment, and appointments cannot be made until seven days after the Public Hearing. Citizens may appear in person, stating their name, address, and interest in the position; or their name, address, and interest may be offered by another individual. Council typically conducts interviews with candidates after this meeting, with the appointment to be announced at one of the June Council meetings. Attachments: Martinsville School Board current listing. Recommendations: Set the Public Hearing for June 13, 2017 and consider scheduling interviews before and/or after Council’s June 27 meeting.  City Council Agenda Summary Meeting Date: May 23, 2017 Item No: 9. Department: Finance Issue: Consider approval on first reading of 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, related to the City’s sewer interceptor project. Summary: The City proposes to issue water and sewer revenue bonds for the purpose of assisting in the acquisition, construction, renovation, and equipping of sewer system repairs, replacements, and capital improvements, and for certain costs of issuance of the bonds, all for municipal purposes not to exceed $11,740,000 in principal amount. Approval of this ordinance is required as an element of financing the project. Attachments: Copy of ordinance Recommendations: Motion to approve the ordinance on first reading with roll call vote. Future expected actions related to this issue includes conducting a Public Hearing followed by approval of the Authorizing Ordinance on second reading at the June 13th meeting.  CITY OF MARTINSVILLE, VIRGINIA 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 Adopted on May 23, 2017 (first reading)  Be it Ordained by the Council of the City of Martinsville, Virginia: Section 1 Definitions Unless the context shall clearly indicate some other meaning, the following words and terms shall for all purposes of the Ordinance and of any certificate, resolution or other instrument amendatory thereof or supplemental thereto for all purposes of any opinion or instrument or other documents therein or herein mentioned, have the following meanings: “Act” shall mean the Public Finance Act, Chapter 26, Title 15.2 of the Code of Virginia of 1950, as amended. “Bond” or “Bonds” shall mean the City’s Water and Sewer Revenue Bond, Series 2017, in the aggregate principal amount of up to $11,740,000, authorized to be issued hereunder. “Bond Counsel” shall mean Sands Anderson PC or another attorney or firm of attorneys nationally recognized on the subject of municipal bonds selected by the City. “City” shall mean the City of Martinsville, Virginia. “City Charter” shall mean the City Charter of the City of Martinsville, Virginia, as amended. “Clerk” shall mean the Clerk of the Council or the Deputy Clerk of the Council. “Commonwealth” shall mean the Commonwealth of Virginia. “Council” shall mean the City Council of the City of Martinsville. “Financing Agreement” shall mean the Financing Agreement between VRA and the City related to issuance of the Bond for the financing of the Project. “Fund” shall mean the Virginia Water Facilities Revolving Fund. “Mayor” shall mean the Mayor or Vice Mayor of the City. “Paying Agent” shall mean the City Treasurer acting as Paying Agent for the Bond hereunder or the successors or assigns serving as such hereunder. “Project” shall mean specifically the acquisition, construction, renovation and equipping of sewer system repairs, replacements, and capital improvements, all for the City’s municipal purposes. 1  “Registrar” shall mean the Paying Agent, or the successors or assigns serving as such hereunder. “System” shall mean the City’s water and sewer system. “VRA” shall mean the Virginia Resources Authority, as administrator of the Fund. Section 2 Findings and Determinations The Council hereby finds and determines that (i) the City is authorized to acquire, construct, operate and maintain water and sewer systems in the City (together, the “System”), which System is a revenue producing undertaking of the City (ii) the City is in need of funds to be used for the purposes of financing capital improvements, specifically the acquisition, construction, renovation and equipping of the Project, including payment of costs of issuance of the Bond; (iii) the obtaining of such funds will be for municipal purposes of the City, for the welfare of citizens of the City for purposes which will serve the City and its citizens pursuant to the authority of the City to provide funds for and otherwise support the activities of the City and the City’s municipal purposes; (iv) the most effective, efficient and expedient manner in which to provide such funds to the City is through the issuance of a water and sewer revenue bond, Series 2017, in an aggregate original principal amount not to exceed $11,740,000 to be issued by the City as further described herein to be sold to VRA as administrator of the Fund, which has offered to purchase the same on certain terms and conditions pursuant to a commitment letter dated as of February 18, 2016 as revised by an extension commitment letter dated as of March 3, 2017 and the Financing Agreement (as defined herein); (v) the issuance of the Bond is within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness; (vi) the Project constitutes a water or waste system within the meaning of Title 15.2, Chapter 51, Section 15.2-5101, of the Code of Virginia, 1950, as amended (the “Virginia Code”) and a wastewater treatment (including sewage and wastewater collection) facility within the meaning of the term “Project” as defined in Section 62.1-224 of the Virginia Code, (vii) the Council desires to issue the Bonds under the provisions of the Act and the City Charter, and a duly advertised and conducted public hearing has been held with respect to the Bonds on June 13, 2017 and, (viii) the issuance of the Bond is in the best interests of the City and its citizens. The maximum length of time that the Bond will be outstanding is thirty years from the date of issuance of the Bond. The Council further hereby finds and determines that the probable useful life of the Project financed by the Bond is thirty years and that the Bond is payable and shall mature within the probable useful life of the Project. Section 3 Authorization, Form and Details of the Bond The Project, which shall constitute a part of the System, is hereby approved and the City is authorized to issue not more than $11,740,000 principal amount of water and sewer revenue bonds, Series 2017 (the “Bonds”) pursuant to the City Charter and under the Act. The Bonds 2 shall mature no later than thirty (30) years from the date of their issuance and the Bonds shall not bear interest. The Bonds shall be issued in fully registered form, shall mature or be subject to mandatory sinking fund redemption on such dates and in such amounts as the City Manager or Assistant City Manager may approve and shall be subject to such optional and other redemption provisions as the City Manager or Assistant City Manager may approve. The proceeds from the sale of the Bonds shall be used to finance the Project. The Bonds shall be issued to VRA, as administrator of the Fund, pursuant to the terms, conditions and provisions of this Ordinance and the Financing Agreement and upon such other terms as may be determined in the manner set forth in this Ordinance. The issuance and sale of the Bonds in one or more series from time to time in accordance with this Ordinance is authorized. The Bonds shall be in substantially the form herein, with such appropriate variations, omissions and insertions as are permitted or required by this Ordinance and by the VRA. The Bonds shall be executed, for and on behalf of the City, by the Mayor or the Vice- Mayor of the City, either of whom may act, and shall have the corporate seal of the City impressed thereon, attested by the Clerk or Deputy Clerk of the City. The manner of execution and affixation of the seal may be by facsimile, provided, however that if the signatures of the Mayor or Vice Mayor are by facsimile, the Bonds shall not be valid until signed by the manual signature of the Clerk or Deputy Clerk. The Bonds shall be in substantially the form herein, with such variations, insertions or deletions as may be approved by the officer executing the Bonds on the City’s behalf. The City Treasurer is hereby appointed as the Registrar for the Bonds. “FORM OF BOND” ISSUE DATE: __________ _____, 2017 UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA $____________ Water and Sewer Revenue Bond, Series 2017 THE CITY OF MARTINSVILLE (the “Borrower”), a public body politic and corporate of the Commonwealth of Virginia, acknowledges itself indebted and for value received, hereby promises to pay, solely from the revenues and other property hereinafter described and pledged to the payment of this Bond, to the order of Virginia Resources Authority (VRA), as Administrator of the Virginia Water Facilities Revolving Fund (the “Fund”), Richmond, Virginia, or registered assigns or legal representatives, the sum equal to the amount of principal advances made hereunder but not to exceed ____________ and 00/100 Dollars ($____________.00), with interest on the disbursed and unpaid principal balance from the date 3 of each disbursement until payment of the entire principal sum. This Bond shall not bear interest. Commencing on ________ __, 20__, and continuing semi-annually thereafter on ________ 1 and __________ 1 in each year, principal due under this Bond shall be due and payable in equal installments, with a final installment due and payable on ____________, 20__, when, if not sooner paid, all amounts due hereunder shall be due and payable in full provided however, that if principal advances up to the maximum authorized amount are not made, the principal amount due on this Bond shall not include such undisbursed amount. However, unless the Borrower and VRA agree otherwise in writing, until all amounts due hereunder shall have been paid in full, less than the full disbursement of the maximum authorized amount hereunder shall not postpone the due date of any semi-annual installment due hereon, or change the amount of such installment. In addition, if any installment of principal is not received by the holder of this Bond within ten (10) days from its due date, the Borrower shall pay into the Fund, a late payment charge in an amount equal to five percent (5.0%) of such overdue installment. Principal is payable in lawful money of the United States. No notation is required to be made on this Bond of the payment of any principal on normal installment dates. HENCE, THE FACE AMOUNT OF THIS BOND MAY EXCEED THE PRINCIPAL SUM REMAINING OUTSTANDING. THIS BOND IS A LIMITED OBLIGATION OF THE BORROWER AND IS PAYABLE SOLELY FROM CERTAIN REVENUES TO BE DERIVED FROM THE OWNERSHIP OR OPERATION OF THE BORROWER’S WATER AND WASTEWATER SYSTEM AS THE SAME MAY FROM TIME TO TIME EXIST, WHICH REVENUES HAVE BEEN PLEDGED PURSUANT TO THE FINANCING AGREEMENT (HEREINAFTER DEFINED) TO SECURE THE PAYMENT THEREOF. NEITHER THE COMMONWEALTH OF VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE BORROWER, SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF THIS BOND OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES PLEDGED THEREFOR, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE BORROWER IS PLEDGED TO THE PAYMENT OF PRINCIPAL OF THIS BOND OR OTHER COSTS INCIDENT THERETO. This Bond is issued pursuant to the terms of the Financing Agreement between the Borrower and VRA dated as of June 1, 2017 (the “Financing Agreement”) to evidence a loan by VRA to the Borrower to finance the Project Costs (as defined in the Financing Agreement). The obligations of the Borrower under this Bond and the Financing Agreement shall terminate when all amounts due and to become due pursuant to this Bond and Financing Agreement have 4 been paid in full. Reference is hereby made to the Financing Agreement and any amendments thereto for the definitions and provisions, among others, describing the pledge and covenants securing this Bond, the nature and extent of the security, the terms and conditions upon which this Bond is issued, and the rights and obligations of the Borrower and the holders of this Bond. The pledge of Revenues, as defined in the Financing Agreement, toward payment of the Bond in accordance with the terms of the Financing Agreement shall be on parity with the pledge of Revenues securing the Existing Parity Bonds, if any, as defined in the Financing Agreement and set forth on Exhibit F thereto. The Borrower may incur additional indebtedness secured by a pledge of the Revenues pursuant to the terms of the Financing Agreement. Transfer of this Bond may be registered upon the registration books of the Bond Registrar. Prior to due presentment for registration of transfer, the Bond Registrar shall treat the registered owner as the person exclusively entitled to payment of principal and the exercise of all other rights and powers of the owner. This Bond is subject to optional prepayment to the extent and on the terms set forth in the Financing Agreement. If an Event of Default (as defined in the Financing Agreement) occurs, the principal of this Bond may be declared immediately due and payable by the holder by written notice to the Borrower. Notwithstanding anything in this Bond to the contrary, in addition to the payments of the principal provided by this Bond, the Borrower shall also pay such additional amounts, if any, which may be necessary to provide for payment in full of all amounts due under the Financing Agreement. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this Bond have happened, exist and have been performed. IN WITNESS WHEREOF, the Borrower has caused this Bond to be signed by its Mayor or Vice-Mayor, to be attested by the Clerk of the City Council, its seal to be affixed hereto and to be dated as of _______ __, 2017. CITY OF MARTINSVILLE, VIRGINIA SEAL By: ___________________________ Name: ________________________ Title: Mayor ATTEST: 5 ________________________________ Clerk of the City Council ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto ____________________ whose address for registration purposes is _______________________ _____________________________________ the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints _______________________ to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Tax I.D. No. Dated:_______________________________ Transferee: _______________ Signature Guaranteed _____________________________ _____________________________ (NOTE: the signature above must correspond with the name of the Registered Owner as it appears on the front of this Bond in every particular, without alteration or enlargement or any change whatsoever.) 6  SCHEDULE OF PRINCIPAL ADVANCES The amount and date of principal advances not to exceed the face amount hereof shall be entered hereon by an authorized representative of the Virginia Resources Authority, as Administrator of the Fund, when the proceeds of each such advance are delivered to the Borrower. Amount Date Authorized Signatures If any Bond has been mutilated, lost, stolen, or destroyed, the City shall execute and deliver a new Bond of like date and tenor in exchange and substitution for, and upon delivery to the Registrar and cancellation of, such mutilated Bond, or in lieu of and in substitution for such lost, stolen, or destroyed Bond; provided, however, that the City shall execute, authenticate, and deliver a new Bond only if its registered owner has paid the reasonable expenses and charges of the City in connection therewith and, in the case of a lost, stolen, or destroyed Bond (i) has filed with the Registrar evidence satisfactory to him or her that such Bond was lost, stolen, or destroyed and that the holder of the Bond was its registered owner and (ii) has furnished to the City indemnity satisfactory to the Registrar. If the Bond has matured, instead of issuing a new Bond, the City may pay the Bond without surrender upon receipt of the aforesaid evidence and indemnity. Section 4 Pledge of Water and Sewer Revenues The Bond shall be a limited obligation of the City and, except to the extent payable from the proceeds of the sale of the Bond or the income, if any, derived from the investment thereof, is payable exclusively from the Revenues (as defined in the Financing Agreement) of the City’s System which the City hereby pledges to the payment of the Bond pursuant to the terms of the Financing Agreement. The pledge of the Revenues securing the Bond shall be on parity with any Parity Bonds (as defined in the Financing Agreement) secured by such Revenues. 7 Section 5 Application of Proceeds; Sale of Bond Proceeds derived from the sale of the Bond together with other monies available therefor shall be used to pay the costs of issuance and for the purposes specified in Section 2 of this Ordinance and otherwise used in accordance with the provisions of this Ordinance or an opinion of Bond Counsel. Section 6 Further Actions Authorized; Approval of Documents The Financing Agreement will be in substantially the form presented to and filed with the minutes of the meeting of this City Council at which this Ordinance is being adopted. The form of the Financing Agreement and the terms, conditions and provisions thereof are hereby approved by this City Council, and the Mayor, or City Manager, any of whom may act, are hereby authorized and directed to execute and deliver to the VRA the Financing Agreement in substantially such form, with such changes and amendments as the officer executing the same shall approve or as shall be necessary to satisfy VRA requirements, such approval to be conclusively evidenced by his execution and delivery thereof. The Mayor, City Manager, City Finance Director, City Treasurer, City Clerk, bond counsel for the City and all other appropriate officers and employees of the City shall take all actions and execute all certificates and documents as shall be necessary to carry out the provisions of this Ordinance. All other actions of City officials in conformity with the purposes and intent of this Ordinance and in furtherance of the issuance and sale of the Bonds as authorized herein are ratified, approved and confirmed. City officials are authorized and directed to execute and deliver all certificates and other instruments considered necessary or desirable in connection with the issuance, sale and delivery of the Bonds pursuant to this Ordinance and the Financing Agreement and to do all acts and things necessary or convenient to carry out the terms and provisions of such documents. All ordinances, resolutions and proceedings in conflict herewith are, to the extent of such conflict, repealed. This Ordinance shall constitute the “Local Resolution” as such term is defined in Section 1.1 of the Financing Agreement. Section 7 Invalidity of Sections If any section, paragraph, clause or provision of this Ordinance shall be held invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining portions of this Ordinance. 8 Section 8 Headings of Sections, Table of Contents The headings of the sections of this Ordinance and the Table of Contents appended hereto or to copies hereof shall be solely for convenience of reference and shall not affect the meaning, construction, interpretation or effect of such sections of this Ordinance. Section 9 Effectiveness and Filing of Ordinance This Ordinance was presented to the Council and a public hearing concerning this Ordinance was held in accordance with applicable law by the Council at its meeting on June 13, 2017. The Council hereby declares that this Ordinance shall become effective upon its passage as provided for in the Act and pursuant to Section 3 of Chapter 3 of the City Charter. A certified copy of this Ordinance shall be filed by the Clerk with the Clerk of the Circuit Court of the City of Martinsville, Virginia. The filing of this Ordinance with the Clerk of the Circuit Court of the City of Martinsville, Virginia shall be deemed to be the filing of an initial resolution or ordinance with such Court for all purposes of the Act. 9  The Members of the Council voted as follows: Ayes Nays Absent Abstentions Adopted this ____ day of __________, 2017. The undersigned Clerk of the City Council of the City of Martinsville, Virginia hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the City Council held on _________ __, 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 10  TABLE OF CONTENTS Page Section 1 Definitions................................................................................................................1 Section 2 Findings and Determinations ...................................................................................2 Section 3 Authorization, Form and Details of the Bond ..........................................................2 Section 4 Pledge of Water and Sewer Revenues .....................................................................7 Section 5 Application of Proceeds; Sale of Bond ....................................................................8 Section 6 Further Actions Authorized; Approval of Documents.............................................8 Section 7 Invalidity of Sections ...............................................................................................8 Section 8 Headings of Sections, Table of Contents .................................................................9 Section 9 Effectiveness and Filing of Ordinance .....................................................................9