City Council
Regular MeetingMartinsville, VA · June 12, 2018
Minutes
June 12, 2018 Council Meeting
The regular meeting of the Council of the City of Martinsville, Virginia was held on June
12, 2018 in Council Chambers, Municipal Building, at 7:30 PM with Mayor Gene Teague
presiding. Council Members present included Gene Teague, Sharon Hodge, Jennifer Bowles
Chad Martin and Kathy Lawson. Staff present included City Manager Leon Towarnicki, City
Attorney Eric Monday, Assistant City Manager Wayne Knox, Clerk of Council Karen Roberts,
Finance Director Linda Conover, Police Chief Eddie Cassady, and Commissioner of Revenue
Ruth Easley.
Mayor Teague called the meeting to order and advised Council would go into Closed
Session beginning at 7:00 PM. Council convened in Closed Session to discuss the following
matters: (A) Appointments to boards and commission, as authorized by Subsection 1, and (B)
Consultation with legal counsel and briefings by staff members, attorneys or consultants
pertaining to actual or probable litigation, or other specific legal matters requiring the
provision of legal advice by such counsel, as authorized by Subsection 7 and in accordance
with section 2.1-344 (A) Code of Virginia (1950, and as amended) and upon a motion by
Council Member Lawson, seconded by Council Member Bowles, with the following 5-0
recorded vote: Council Member Hodge, aye; Council Member Bowles, aye; Vice Mayor Martin,
aye; Mayor Teague, aye; and Council Member Lawson, aye. 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 Lawson;
seconded by Council Member Bowles, with the following 5-0 recorded vote in favor to return to
Open Session: Council Member Bowles, aye; Mayor Teague, aye; Vice Mayor Martin, aye;
Council Member Hodge, aye; and Council Member Lawson, aye.
Out of closed session; Vice Mayor Martin made a motion to reappoint James Hyler,
Joseph Martin and Austin Roberson to the Planning Commission for 4-year terms ending June
30, 2022; Council Member Bowles seconded the motion with all Council Members voting in
favor.
Mayor Teague read a statement regarding the medical school.
June 12, 2018 Council Meeting
Following the Pledge to the American Flag and invocation by Vice Mayor Martin, Teague
welcomed everyone to the meeting.
Recognize sponsors of the Community Cookout event scheduled for June 23, 2018 at
Baldwin Park – Vice Mayor Martin asked those sponsors in attendance to stand and explained
how the cookout idea blossomed and how it was supported and funded. Martin challenged
Police Chief Cassady to attend and allow children to soak him with water guns. Tony Martin
said he was blessed to be able to donate back to the community. Tyrese Hairston appreciates
the opportunity and wants to do what he can for the community to increase the peace. Scott
Vernon says his organization wants to bring people back to the earth, share information and
encourage residents to attend the event. Council Member Bowles thanked those sponsors for
their contribution and participation to make this a successful event.
Conduct a public hearing for the purpose of receiving names of citizens interested in
appointment for two 3-year terms on the Martinsville City School Board, beginning July 1,
2018 and ending June 30, 2021 – Mayor Teague explained the process to be considered for a
school board vacancy then opened the public hearing. City Attorney Monday mentioned Joan
Montgomery and James Hyler for the vacancy. Teague mentioned Sammy Redd requested
reappointment. Vice Mayor Martin mentioned Rashawn Gravely would like to be considered for
June 12, 2018 Council Meeting
the vacancy. Mary Ruth Reynolds, 300B Thomas Heights expressed her interest also. Teague
closed the meeting.
Mayor Teague welcomed Benjamin Stafford, a Boy Scout in attendance working on two
merit badges.
Hear information from the Town of Bedford and Bedford County regarding the
transition of Bedford from city to town – City Manager Towarnicki summarized localities in
Virginia that had shared details of their reversion. Bart Warner, Bedford Town Manager and
Carl Boggess, Chairman of the Bedford County Board of Supervisors shared details of Town of
Bedford and Bedford County’s reversion explaining the joint/contracted services including
tourism, E911 Dispatch, schools, health department, social services, courts, sheriff’s office
and regional library. Specific goals and benefits of a reversion were identified early.
Consolidation of water and sewer systems was an additional positive move. Council Member
Bowles expressed concern about employee positions affected by a reversion. Immediately after
reversion, Bedford officials found new positions for most employees who were losing their
positions because of the reversion, retiring employees in some positions were not replaced and
ultimately Bedford only settled three unemployment claims. Most negotiations were handled
in closed session which received a lot of negative feedback from the community because of
lack of transparency; the Board Chairman and Mayor were only brought into the discussion
on two concerns that couldn’t easily be resolved, it was suggested to let the City Manager and
City Attorney handle the negotiations. Another downfall was they did not ask enough
June 12, 2018 Council Meeting
questions and the lines drawn on the map were never finalized. Outcomes of the reversion
were summarized and overall, it was a positive experience and outcome. Bedford did away
with the B-POL tax with reversion. Mayor Teague and Council expressed their appreciation for
the information shared.
Hear an update from Robert Bencini, Executive Director of West Piedmont Workforce
Investment Board – Mr. Bencini thanked Council Member Hodge and Assistant City Manager
Wayne Knox for serving on the board. Bencini detailed his prior experience before coming to
Martinsville West Piedmont Workforce Investment Board and his plans now as the Executive
Director. His role is to spread the word on what is available and where to go for assistance.
For the first time in memory, WPWIB has spent all funds so some people have to wait until
more funds are received in July. They also have their first certified one-stop location. Bottom
line is they are here to help people and there is a process called supportive services including
financial coaching and how individual lives are being impacted. Anyone interested in applying
for services were directed to visit the one stop location.
Hear a presentation concerning the planning portion of the process to apply for a
Community Development Block Grant in the spring of 2019, from the Commonwealth of
Virginia for revitalization of the West Side neighborhood – Community Development Director
Wayne Knox introduced Janet Jonas, of Summit Design and Engineering and Community
Planning Partners. Knox recognized project managers and others who participate and manage
individual projects. This planning grant is worth $30,000 and funds are paid out as the
project moves forward. Surveys will need to be completed in every home of the targeted project
area. To fit the guidelines of state and federal guidelines, average household income as well as
home conditions in the area are taken into consideration. If a resident wanted to participate in
the project committee, they can contact him directly. Knox pointed out that this is a planning
grant to build a case to receive the grant money, not a revitalization grant. Janet Jonas said
she enjoys visiting Martinsville. After all other applications and processes are completed,
construction would begin hopefully at the end of 2020. Participation in the Community
Development Block Grant program is voluntary. Knox said the word is out that people will be
visiting those households with questions related to the project.
Consider approval of refunds resulting from verification updates of estimated BPOL tax
for 2 local businesses for tax years 2017 and 2016 – Commissioner of Revenue Ruth Easley
explained that two businesses need to update their estimated business license and
overestimated their taxes. The Commissioner of Revenue’s office is required to obtain
permission from the City Council to issue refunds to these two businesses. Council expressed
concern on the impact on the budget. Finance Director Linda Conover explained that the
impact would be hard to determine since she does not have final numbers but she does not
feel that it will have a significant impact on the budget. Council Member Lawson made a
June 12, 2018 Council Meeting
motion to authorize the City Treasurer to issue a refund of $3,392.33 in overpaid 2016
business license fees prior to July 5, 2018 to a local business identified in abatement #49990
of the Commissioner of the Revenue Bill Adjustment Report dated June 5, 2018. Council
Member Bowles seconded the motion with all Council in favor. Council Member Lawson made
a motion to authorize the City Treasurer to issue a refund of $112,375.03 in overpaid 2017
business license fees prior to July 5, 2018 to a local business identified in abatements
#49991, #49992, #49993 and #49994 of the Commissioner of the Revenue Bill Adjustment
Report dated June 5, 2018. Council Member Bowles seconded the motion with all Council
voting in favor
Consider approval of Consent Agenda – Council Member Lawson made a motion to
approve the consent agenda as presented; Council Member Bowles seconded the motion with
all Council Members voting in favor.
Business from the Floor – Jim Peverall, 215 Aaron Street thanked Council for allowing
him to speak and City Attorney Monday for meeting with him the previous week and his
actions to collect past due property taxes. Peverall thanked Mayor Teague, Council Member
Lawson and City Manager Towarnicki for responding to his concerns. He witnessed an
incident recently regarding City employees painting a fire hydrant but he feels that it was an
isolated event. He said two employees came to Aaron Street at 2:30, taking over an hour to
paint one hydrant. It took two trips to complete since someone had to return to paint the
caps. Mayor Teague asked Towarnicki to investigate the procedure to do this specific work.
Police Chief Eddie Cassady explained that neighborhood resources officers would be visiting
residents and providing surveys about the police department and other city departments.
June 12, 2018 Council Meeting
Comments by Members of City Council – Mayor Teague revealed that he has decided
not to run for reelection in the next City Council election. Council Member Bowles thanked
the Sheriff’s department and Police department for motivating their camp members. Vice
Mayor Martin thanked Teague for being a great mentor and touched on the community
cookout details again. Martin was contacted by a resident regarding damage to her property
caused by heavy rains and asked City Manager Towarnicki to look into any assistance the City
could provide. Council Member Lawson thanked Vice Mayor Martin for his effort towards the
community event June 23. Lawson shared that the Police Department would hold training
involving safety and security tips for retail businesses at the New College. Lawson said there
are free swimming lessons available through the Delvin Hairston Memorial Fund for qualified
individuals and reminded residents to sign up at the YMCA for classes starting next week.
Lawson mentioned that on Danville’s website, they have partnered with the library to make
available thermal energy monitors to save residents on heating and cooling bills and asked if
our Electric department uses thermal monitors when auditing homes. Towarnicki said he was
not sure if those are used in the community but that the Electric Department does use them
for other projects. Teague received a letter from Kyle Petty and was complimentary of the
Sheriff’s Department for their support of the Victory Junction Ride.
Comments by City Manager – City Manager Towarnicki explained that the work session
on June 19 would be rescheduled. There will be a Southside Neighborhood meeting on
Monday June 25 at Fuller Memorial Church. The citizen’s survey being handed out by the
resource officers is a combined survey for the police department and city services and asked
residents to make suggestions. The city is still compiling documentation on the flooding and
looking at around $123-$130,000 in damage and repairs. Nationwide Homes sustained an
excessive amount of damage to facilities and materials so the City will be working with them
again to prevent this from happening again and to keep the business within the City. The
Cherokee Trail flooding rebuild will be taken out of the street maintenance fund.
There being no further business, Council Member Bowles 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 9:35pm.
______________________________________ ______________________________________
Karen Roberts Gene Teague
Clerk of Council Mayor
Agenda
AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA
Council Chambers – Municipal Building
7:00 pm Closed Session 7:30 pm Regular Session
Tuesday, June 12, 2018
7:00 pm --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
Pledge to the American Flag and Invocation by Vice Mayor Martin
1. Conduct a public hearing for the purpose of receiving names of citizens interested in
appointment for two 3-year terms on the Martinsville City School Board, beginning July
1, 2018 and ending June 30, 2021. (10 min.)
2. Hear information from the Town of Bedford and Bedford County regarding the transition
of Bedford from city to town. (20 min.)
3. Hear an update from Robert Bencini, Executive Director of West Piedmont Workforce
Investment Board. (15 min.)
4. Hear a presentation concerning the planning portion of the process to apply for a
Community Development Block Grant in the spring of 2019, from the Commonwealth of
Virginia for revitalization of the West Side neighborhood. (15 min.)
5. Consider approval of refunds resulting from verification updates of estimated BPOL tax
for 2 local businesses for tax years 2017 and 2016. (10 min.)
6. Consider approval of consent agenda. (2 min.)
7. 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.
8. Comments by members of City Council. (5 minutes)
9. Comments by City Manager. (5 minutes)
City Council
Agenda Summary
Meeting Date: June 12, 2018
Item No: 1.
Department: City Council
Issue: Conduct a public hearing for the purpose of receiving names of
citizens interested in appointments for two 3-year terms on the Martinsville City
School Board, beginning July 1, 2018 and ending June 30, 2021.
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.
Attachments: Martinsville School Board current listing.
Recommendations: Conduct the Public Hearing and consider scheduling
interviews on June 26 , prior to and/or after Council’s meeting on that date
th
depending on number of candidates. Candidates selected for the Board
appointments will be announced after interviews are completed.
City Council
Agenda Summary
Date: June 12, 2018
Item No: 2.
Department: Council/City Manager
Issue: Hear information from the Town of Bedford and Bedford County
regarding the transition of Bedford from city to town.
Summary: In July, 2013, the City of Bedford officially transitioned to the
Town of Bedford, ending a process that began several years earlier and becoming
the third Virginia city to revert to a town.
At Council’s meeting on June 12th will be Mr. Bart Warner, Bedford Town
Manager and. Mr. Carl Boggess, Chairman of the Bedford County Board of
Supervisors. Mr. Warner was Bedford’s Assistant City Manager and Mr. Boggess
was the Bedford County Attorney during the reversion negotiation process. They
will provide information regarding the transition and how the change impacted the
operation of the local governments.
Attachments: None
Recommendation: None, no action needed by Council.
City Council
Agenda Summary
Meeting Date: June 12, 2018
Item No: 3.
Department: City Manager
Issue: Hear an update from Robert Bencini, Executive Director of West
Piedmont Workforce Investment Board.
Summary: Robert Bencini will provide an update on West Piedmont WIB’s
work and activities.
Attachments: None
Recommendations: No action by Council is needed – this item is presented
for information purposes.
City Council
Agenda Summary
Date: June 12, 2018
Item No: 4.
Department: Community Development
Issue: Hear a presentation concerning the planning portion of the process to
apply for a Community Development Block Grant in the spring of 2019, from the
Commonwealth of Virginia for revitalization of the West Side neighborhood.
Summary: In late April, 2018, the City was advised by DHCD of approval of a
planning grant for a possible CDBG project in the West End/Fayette Street area.
In order to receive the grant, certain activities have to occur prior to July 6, 2018,
and one of the activities is to conduct a public meeting to give residents an
overview of the proposed project target area. For this particular project, the target
area consists of Fayette Street west of North Street, Kings Row, Marshall Street,
Top Street, and Wray Street, plus Mitchell, Pine Hall, and Yorkshire Road.
Attachments: None, will distribute handouts at the meeting.
Recommendations: No formal action required.
City Council
Agenda Summary
Meeting Date: June 12, 2018
Item No: 5.
Department: Commissioner of the Revenue, City Treasurer
Issue: Consider approval of refunds resulting from verification updates of
estimated BPOL tax for 2 local businesses for tax years 2017 and 2016.
Summary: The Commissioner of the Revenue’s office annually verifies and
updates BPOL license fees based on federal tax return gross receipts information
that is provided to the office by individual business taxpayers. Until the gross
receipts can be verified by the federal tax return gross receipts, the reported
receipts are considered an estimate. One local business overestimated their gross
receipts for the 2016 license year and the other business underwent a name
change and has requested a proration of their 2017 licenses for the portion of the
year that they operated under the prior name. Business licenses based on gross
receipts may be prorated upon the request of a business that ceases operations
during a license year and documentation of annual gross receipts attributable to
the Martinsville business location for the prorated period.
The city’s business license is based on the actual gross receipts that a business
had for the prior tax year, or the current year for first year businesses. Corrections
to the assessments have been made by the Commissioner of the Revenue’s office
and forwarded to the City Treasurer. Because the refund amount is over $2,500,
City Council must authorize the City Treasurer to issue the refunds so that the
timing of the refund does not negatively impact the city’s cash flow.
City of Martinsville Ordinances address updates of estimated business licenses
that were not based on a prior year’s actual gross receipts. The City’s ordinance
§11-23(f) provides that there shall be no interest charged or refunded on an
adjustment of estimated tax liability to actual liability at the conclusion of the base
year. We would not have assessed interest if the taxpayer had underestimated
their gross receipts and we updated the assessment based on verification of actual
gross receipts. Consequently, the city ordinances provide that we do not refund
interest on these types of estimated assessments when they are overestimated.
These refunds are different from other refunds that City Council has authorized in
that they did not result due to an appeal or audit on a verified and adjusted actual
assessment. The BPOL assessments remained an estimate until they could be
verified with actual gross receipts as reported on the businesses’ federal tax
returns. The necessary federal returns to verify the gross receipts for the
businesses were just provided in late May.
The Code of Virginia authorizes the City Treasurer to issue refunds up to $2,500
without prior authorization of City Council. Because the refund amount is over
this limit, City Council must authorize the City Treasurer to issue the refund.
Pursuant to City Ordinance §11-23(f) there is no need to calculate interest
provided the refund is made within 30 days of the adjustment to reflect actual tax
liability, therefore the effective date for both refunds should be prior to July 5,
2018 to avoid any interest calculation.
Attachments: Sample motions authorizing refunds
Recommendations: Authorize City Treasurer to issue two refunds: (1) for
$3,392.33 to a City business for their overestimated 2016 business license and (2)
for $112,375.03 to a prior City business for their prorated 2017 business licenses.
2
SAMPLE MOTION #1
I move to authorize the City Treasurer to issue a refund of $3,392.33 in overpaid 2016
business license fees prior to July 5, 2018 to a local business identified in abatement
#49990 of the Commissioner of the Revenue Bill Adjustment Report dated June 5, 2018.
SAMPLE MOTION #2
I move to authorize the City Treasurer to issue a refund of $112,375.03 in overpaid 2017
business license fees prior to July 5, 2018 to a local business identified in abatements
#49991, #49992, #49993 and #49994 of the Commissioner of the Revenue Bill
Adjustment Report dated June 5, 2018.
City Council
Agenda Summary
Meeting Date: June 12, 2018
Item No: 6.
Department: Finance
Issue: Consent Agenda
Summary:
The attachment amends the FY18 Budget with appropriations in the following
funds:
General Fund: $36,083 - Reimbursements; Sale of Surplus
Telecom Fund: $16,078 - Reimbursement
Attachments:
Consent Agenda 6-12-18
Recommendations: Approve
BUDGET ADDITIONS FOR 6/12/18
ORG OBJECT DESCRIPTION DEBIT CREDIT
FY18
BUDGET ADDITIONS
General Fund:
01100909 490104 Advanced/Recovered Costs 29,127
01413147 501200 Traffic Signals - Overtime wages 937
01413147 503310 Traffic Signals - Prof Serv - Repairs & Maintenance 1,630
01413147 506010 Traffic Signals - Signal Maintenance 26,560
Insurance Reimbursement from wind storm damage
01100905 450209 Sale of Salvage/Surplus 3,862
01311085 506008 Police Dept. - Vehicle Equipment & Maintenance 3,862
GovDeals sale of police vehicle
01100905 450209 Sale of Salvage/Surplus 1,309
01311085 506008 Police Dept. - Vehicle Equipment & Maintenance 1,309
GovDeals sale of police vehicle
01100909 490104 Advanced/Recovered Costs 1,785
01311085 506008 Police Dept. - Vehicle Equipment & Maintenance 1,785
Insurance Reimbursement from damaged vehicle
Total General Fund: 36,083 36,083
Telecom Fund:
11100909 490104 Advanced/Recovered Costs 16,078
11315308 506007 Telecom - Repair & Maintenance Supplies 16,078
Insurance Reimbursement from wind storm damage
Total Telecom Fund 16,078 16,078
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