City Council

AGENDA--CITY COUNCIL CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 6:30pm Closed Session 7:00pm Regular Session Tuesday February 14, 2023 6:30 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. 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. 7:00 pm - Regular Session Pledge to the American Flag and Invocation by Council Member Pearson. 1. Approve minutes from the January 9, 2023 Work Session, January 10, 2023 Council Meeting and January 24, 2023 Council Meeting. (5 mins) 2. Consider approval of an incentive package regarding an Uptown project located at 32 Franklin Street by Renewal Partners, LLC. (15 mins) 3. Hear an update from Joanie Petty, Executive Director of Boys & Girls Clubs of the Blue Ridge. (15 mins) 4. Consider adoption of a resolution changing the membership policy for the Arts & Cultural Committee. (10 mins) 5. Consider adoption of a resolution approving of the City’s participation in the proposed settlement of opioid-related claims. (10 mins) 6. Consider setting a schedule for neighborhood meetings for calendar 2023. (10 mins) 7. Consider approval of the quarterly finance report. (5 mins) 8. Business from the Floor - The public comment portion of the Council meeting provides citizens the opportunity to discuss matters relevant to the operation of the City, which are not listed on the printed agenda. Citizens who wish to participate in a meeting’s public comment period may do so by emailing their comments to Karen Roberts, Clerk of Council, at kroberts@ci.martinsville.va.us, calling in their comments to 276-403-5182, faxing comments to 276-403-5280,or mailing comments to City of Martinsville, attn.: Karen Roberts, P.O. Drawer 1112, Martinsville, VA 24114. Comments must be received by 12:00noon Monday February 13, 2023. Citizens may also request to speak at the Council meeting in the same manner. Comments, or a request to speak, must be received by noon the day before a Council meeting for consideration by Council at the meeting. Any person submitting comments or requesting to speak must identify themselves by name and address, including zip code, limit their remarks to 3 minutes or less (as read aloud), address a topic of City business, and refrain from making any personal references or accusations of a factually false and/or malicious nature. Priority for comments is given to City residents, taxpayers, and business owners. Speakers may not yield time. Groups of speakers on the same topic must designate a single representative. Comments violating these rules may not be presented at the Council meeting. Any speaker violating these rules may be removed from the podium or from the Council chamber. This policy does not apply to public hearings, at which any citizen of Martinsville may appear and speak on the subject of the public hearing. 9. Comments by members of City Council. (5 mins) 10. Comments by City Manager. (5 mins)  City Council Agenda Summary Meeting Date: February 14, 2023 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes Summary: None Attachments: January 9, 2023 Work Session minutes January 10, 2023 Council Meeting minutes January 24, 2023 Council Meeting minutes Recommendations: Motion to approve minutes as presented.  City Council Agenda Summary Date: February 14, 2023 Item No: 2. Department: City Manager Issue: Consider approval of an incentive package regarding an Uptown project located at 32 Franklin Street by Renewal Partners, LLC. Summary: City staff have recently been involved in discussions with Renewal Partners LLC regarding a project in a renovated building located at 32 Franklin Street. During those discussions, various incentives have been discussed to assist with the development. Representatives of Renewal Partners LLC will be attending Council’s meeting to publicly present the proposed project and answer questions. Attachments: None. Additional information will be presented at the meeting Recommendations: Staff recommends approval of the incentive package.  City Council Agenda Summary Date: February 14, 2023 Item No: 3. Department: City Council Issue: Hear an update from Joanie Petty, Executive Director of Boys & Girls Clubs of the Blue Ridge. Summary: Joanie Petty, Executive Director of Boys and Girls Clubs of the Blue Ridge will be attending Council’s meeting to provide a brief update on various programs and activities being handled by the organization. Attachments: None Recommendations: No action by Council needed  City Council Agenda Summary Date: February 14, 2023 Item No: 4. Department: City Manager Issue: Consider adoption of a resolution changing the membership policy for the Arts & Cultural Committee Summary: When the Arts & Cultural Committee was established by Council, a membership list was created to ensure broad-based representation. Over the years a number of vacancies have occurred that have gone unfilled for extended periods of time and in an effort to allow better participation on the Committee, a change is being recommended regarding two currently-vacant positions. The recommended change is to re-designate currently unfilled positions allocated to the Economic Development Corporation and TheatreWorks to Citizen Representative positions. There are currently a number of applications on file as Citizen Representatives for the Committee. Attachments: Resolution changing policy. Recommendations: Adopt resolution by voice vote.  Council Members City Manager LC Jones, Mayor Leon E. Towarnicki Aaron Rawls, Vice-Mayor Clerk of Council Kathy Lawson Karen Roberts Chad Martin Tammy Pearson RESOLUTION ARTS & CULTURAL COMMITTEE MEMBERSHIP WHEREAS, section 2-126 of the City Code establishes the eleven-member Arts and Cultural Committee; and WHEREAS, Council previously designated two of the eleven members as being one representative each of the Economic Development Corporation and TheatreWorks; and WHEREAS, those two positions are currently open with no recent applications for appointments; and WHEREAS, there are a number of citizens interested in serving on the Arts & Cultural Committee who currently do not match the designated representative slots mentioned above; NOW THEREFORE BE IT RESOLVED by Martinsville City Council assembled in regular session this 14th day of February, 2023, that the Committee appointments currently reserved for the Economic Development Corporation and TheatreWorks shall be re-designated as Citizen Representative appointments. ********* Attest: ___________________________________________ Karen Roberts, Clerk of Council 55 West Church Street, P. O. Box 1112, Martinsville, VA 24114-1112 276-403-5180 Fax: 276-403-5280 www.martinsville-va.gov  City Council Agenda Summary Date: February 14, 2023 Item No: 5. Department: City Manager Issue: Consider adoption of a resolution approving of the City’s participation in the proposed settlement of opioid-related claims. Summary: The City’s outside counsel, Kaufman & Canoles, P.C. has successfully concluded discussions with the OAG concerning pending settlements with Teva, Allergan, Walmart, Walgreens, and CVS. Counsel now recommends that governing bodies desiring to participate in the settlement approve the attached Resolution that has been agreed to by the OAG. Attachments: Resolution Recommendations: Adoption of the Resolution (motion, second, voice vote).  Council Members City Manager L.C. Jones, Mayor Leon E. Towarnicki Aaron Rawls, Vice-Mayor Clerk of Council Kathy Lawson Karen Roberts Chad Martin Tammy Pearson RESOLUTION A RESOLUTION OF THE CITY OF MARTINSVILLE CITY COUNCIL APPROVING OF THE CITY’S PARTICIPATION IN THE PROPOSED SETTLEMENT OF OPIOID-RELATED CLAIMS AGAINST TEVA, ALLERGAN, WALMART, WALGREENS, CVS, AND THEIR RELATED CORPORATE ENTITIES, AND DIRECTING THE CITY ATTORNEY AND/OR THE CITY’S OUTSIDE COUNSEL TO EXECUTE THE DOCUMENTS NECESSARY TO EFFECTUATE THE CITY’S PARTICIPATION IN THE SETTLEMENTS WHEREAS, the opioid epidemic that has cost thousands of human lives across the country also impacts the City of Martinsville (“City”) by adversely impacting the delivery of emergency medical, law enforcement, criminal justice, mental health and substance abuse services, and other services by Martinsville’s various departments and agencies; and WHEREAS, the City has been required and will continue to be required to allocate substantial taxpayer dollars, resources, staff energy and time to address the damage the opioid epidemic has caused and continues to cause the citizens of Martinsville; and WHEREAS, the City has filed suit against Teva, Allergan, Walgreens, CVS, and certain of their related corporate entities for their role in the distribution, manufacture, and sale of the pharmaceutical opioid products that have fueled the opioid epidemic that has harmed the City of Martinsville; and WHEREAS, the City’s suit seeks recovery of the public funds previously expended and to be expended in the future to abate the consequences and harms of the opioid epidemic; and WHEREAS, settlement proposals have been negotiated that will cause Teva, Allergan, Walmart, Walgreens, and CVS to pay billions of dollars nationwide to resolve opioid-related claims against them; and WHEREAS, the City has approved and adopted the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (the “Virginia MOU”), and affirms that these pending settlements with Teva, Allergan, Walmart, CVS, and Walgreens shall be considered “Settlements” that are subject to the Virginia MOU, and shall be administered and allocated in the same manner as the opioid settlements entered into previously with the Distributors and Janssen; and  WHEREAS, the City’s outside opioid litigation counsel has recommended that the City participate in the settlements in order to recover its share of the funds that the settlement would provide; and WHEREAS, the City Attorney has reviewed the available information about the proposed settlements and concurs with the recommendation of outside counsel; NOW THEREFORE BE IT RESOLVED that the Martinsville City Council, this 14th day of February, 2023, approves of the City’s participation in the proposed settlement of opioid-related claims against Teva, Allergan, Walmart, Walgreens, CVS, and their related corporate entities, and directs the City Attorney and/or the City’s outside counsel to execute the documents necessary to effectuate the City’s participation in the settlements, including the required release of claims against settling entities. ******* _________________________________ _____________________________________ LC Jones, Mayor ATTEST: Clerk of Council 55 West Church Street, P. O. Box 1112, Martinsville, VA 24114-1112 276-403-5180 Fax: 276-403-5280 2 www.martinsville-va.gov  City Council Agenda Summary Date: February 14, 2023 Item No: 6. Department: City Manager Issue: Consider setting a schedule for neighborhood meetings for calendar 2023. Summary: Pre-Covid, City Council normally conducted four neighborhood meetings during the year with two in the spring and two in the fall. The meetings typically occurred on Monday preceding Council’s second meeting of the month and consisted of a tour of the particular neighborhood at 5 or 5:30 pm, followed by the public meeting in the respective neighborhood at 7 or 7:30 pm. Meeting months were generally March, April, September, and October. In 2021 meetings were not held due to the pandemic, but in 2022 additional meetings were held. The neighborhoods are generally described as Southside, West End, Northside, and East Martinsville/Druid Hills. Following the same schedule, possible meeting dates for 2023 could be March 27, April 24, September 25, and October 23. Attachments: None Recommendations: Discuss, decide on a meeting schedule and format for 2023.  City Council Agenda Summary Meeting Date: February 14, 2023 Item No: 7. Department: Finance Issue: Consider approval of the quarterly finance report FY23 – 12/31/2022 Consolidated Revenue & Expenditure Report Exclusive of School and Special Revenue Funds, total actual revenues received through the second quarter of FY23 were $37,343,323 which is less than the amount anticipated of $38,336,206 through December 31 by $992,883. Highlighted in this report, both local sales & use taxes and meals taxes collected were greater than anticipated, by $57,490 and $114,736 respectively. Total actual expenditures through second quarter were $37,321,264 including encumbrances, greater than anticipated by $602,576. In the Utility Funds, total actual revenues were $16,074,171, which is less than anticipated, and total actual expenses, including encumbrances, were $16,253,634, which was greater than anticipated. The available cash-on-hand for all City Funds was $29,856,191, an increase of $5,914,548 over the same period last year, which includes ARPA funding. Combined Balance Sheet Compared to audited year-end FY22 figures, the non-utility fund balances at the end of December were $3.1M less. As stated, many times in the past, fund balances are fluid, changing many times throughout the day as revenues and expenditures are recorded, impacted by such items as due dates and debt service payments. The Utility Funds Cash and Equivalents through the end of the first and second quarter are greater than year-end FY22 by $1,906,318. Attachments: Quarterly Finance Report- R&E 12-31-2022 Combined Balance Sheet-FY23 Q2 Recommendation: Motion to approve financial report.  City of Martinsville Consolidated Revenues and Expenditures FY23 - 12/31/2022 Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual General Fund Revenues $ 33,574,835 $ 19,387,803 $ 18,416,328 $ 15,158,507 95.0% Expenditures 38,193,423 18,695,313 17,941,940 20,251,483 96.0% Excess (deficiency) of revenues over expenditures $ (4,618,588) $ 692,490 $ 474,387 (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Capital Funds Meals Tax Revenues $ 2,722,721 $ 1,361,360 $ 1,476,096 $ 1,246,625 108.4% Expenditures 2,722,721 1,751,255 1,751,255 971,466 100.0% Excess (deficiency) of revenues over expenditures $ - $ (389,895) $ (275,159) (Fund Bal contrib) Capital Reserve Revenues $ 1,812,649 $ 1,376,729 $ 1,376,729 $ 435,920 100.0% Expenditures 2,339,423 1,374,435 1,374,435 964,988 100.0% Excess (deficiency) of revenues over expenditures $ (526,774) $ 2,294 $ 2,294 TOTAL CAPITAL FUNDS: $ (526,774) $ (387,601) $ (272,865) (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Refuse Fund Revenues $ 2,018,793 $ 936,290 $ 1,032,313 $ 986,480 110.3% Expenditures 2,313,965 863,984 852,653 1,461,312 98.7% Excess (deficiency) of revenues over expenditures $ (295,172) $ 72,306 $ 179,660 MINet/Fiber Optic Fund Revenues $ 2,183,801 $ 926,716 $ 957,709 $ 1,226,092 103.3% Expenditures 2,227,424 1,082,690 1,137,720 1,089,704 105.1% Excess (deficiency) of revenues over expenditures $ (43,623) $ (155,974) $ (180,011) Water Fund Revenues $ 3,925,600 $ 1,961,310 $ 1,941,154 $ 1,984,446 99.0% Expenditures 4,448,585 1,278,320 2,488,328 1,960,257 194.7% Excess (deficiency) of revenues over expenditures $ (522,985) $ 682,990 $ (547,174) Sewer Fund Revenues $ 4,597,012 $ 2,298,506 $ 2,169,522 $ 2,427,490 94.4% Expenditures 6,571,277 2,476,924 2,609,825 3,961,452 105.4% Excess (deficiency) of revenues over expenditures $ (1,974,265) $ (178,418) $ (440,303) Electric Fund Revenues $ 20,114,014 $ 10,087,492 $ 9,973,473 $ 10,140,541 98.9% Expenditures 22,701,984 9,195,747 9,165,108 13,536,876 99.7% Excess (deficiency) of revenues over expenditures $ (2,587,970) $ 891,745 $ 808,365 GRAND TOTAL - UTILITIES: Budget Anticipated Actual YTD Balance Ant vs. Actual Total Utility Revenues: $ 32,839,220 $ 16,210,314 $ 16,074,171 $ 16,765,049 99.2% Total Utility Expenditures: 38,263,235 14,897,665 16,253,634 22,009,601 109.1% Excess (deficiency) $ (5,424,015) $ 1,312,649 $ (179,463) \\FILE01\City Manager\Exec folders\Word\AGENDAS\2023\021423\7a Copy of FY23 Quarterly Finance Report RE FY23 Q2 FINAL.xlsx  Consolidated Revenues and Expenditures FY23 - 12/31/2022 Actual Remaining Difference Budget YTD Balance Budg vs. Actual Cafeteria Revenues $ 1,705,775 $ $ 835,204 $ 870,571 49.0% Expenditures 2,293,640 982,141 1,311,499 42.8% Excess (deficiency) of revenues over expenditures $ (587,865) $ $ (146,936) (Fund Bal contrib) School Operations Revenues $ 24,941,658 $ $ 9,768,000 $ 15,173,658 39.2% Expenditures 24,945,123 11,302,390 13,642,733 45.3% Excess (deficiency) of revenues over expenditures $ (3,465) $ $ (1,534,390) Federal Programs Revenues $ - $ $ 280,120 $ (280,120) Expenditures - 1,219,769 (1,219,769) Excess (deficiency) of revenues over expenditures $ - $ $ (939,649) TOTAL SCHOOL FUNDS: $ (591,330) $ - $ (2,620,976) (fund bal contrib) Actual Remaining Budget YTD Balance Special Revenue Funds CDBG Fund Revenues $ 1,183,320 $ 30,000 $ 1,153,320 2.5% Expenditures 1,192,741 92,410 1,100,331 7.7% Excess (deficiency) of revenues over expenditures $ (9,421) $ (62,410) TOTAL SPECIAL REVENUE FUNDS: $ (9,421) $ (62,410) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual GRAND TOTALS: (excluding Schools & Special Revenues) Revenues: $ 70,949,425 38,336,206 $ 37,343,323 $ 33,606,102 97.4% Expenditures 81,518,802 36,718,668 37,321,264 44,197,538 101.6% Excess (deficiency) of revenues over expenditures $ (10,569,377) 1,617,538 $ 22,059 Local Sales/Use Taxes $ 2,500,000 $ 963,750 $ 1,021,240 $ 1,478,760 106.0% Meals Taxes $ 2,350,000 1,175,000 $ 1,289,736 $ 1,060,264 109.8% The Budgeted Revenue amounts do not include any contributions from Fund Balance. \\FILE01\City Manager\Exec folders\Word\AGENDAS\2023\021423\7a Copy of FY23 Quarterly Finance Report RE FY23 Q2 FINAL.xlsx  City of Martinsville Combined Balance Sheet FY23 -12/31/2022 TOTAL TOTAL CURRENT AUDITED FY22 DIFFERENCE FUND ASSETS LIABILITIES FUND BALANCE FUND BALANCE YEAR-END FY22 GENERAL FUND $ 16,965,241 $ (7,593,260) $ 9,371,981 $ 8,029,834 $ 1,342,147 MEALS TAX $ 978,308 $ - $ 978,308 $ 1,253,467 $ (275,159) SCHOOL CAFETERIA $ 2,023,897 $ (854) $ 2,023,043 $ 2,156,802 $ (133,758) TELECOMMUNICATIONS $ 498,995 $ (157,137) $ 341,858 $ 479,379 $ (137,521) CAPITAL RESERVE FUND $ 1,605,790 $ - $ 1,605,790 $ 691,431 $ 914,359 SCHOOL FUND $ 359,033 $ 68,627 $ 427,660 $ 38,808 $ 388,852 SCHOOL - ESSER/CARES $ (645,272) $ - $ (645,272) $ (38,808) $ (684,080) SCHOOL FEDERAL PROGRAMS $ (999,650) $ (71) $ (999,722) $ (151,902) $ (1,151,624) ARPA FUND $ 10,064,001 $ (7,118,601) $ 2,945,400 $ 6,512,492 $ (3,567,092) CDBG FUND $ 158,547 $ (39,002) $ 119,545 $ 100,955 $ 18,590 OPIOID ABATEMENT FUND $ 121,619 $ - $ 121,619 $ 20,088 $ 101,531 TOTAL $ 31,130,510 $ (14,840,299) $ 16,290,211 $ 19,092,545 $ (3,183,755) CURRENT AUDITED FY22 UTILITY FUNDS* CASH & EQUIV. CASH & EQUIV. REFUSE COLLECTION FUND $ 2,334,768 $ 2,197,623 $ 137,145 WATER FUND $ 4,784,084 $ 4,078,445 $ 705,639 SEWER FUND $ 1,752,870 $ 1,919,986 $ (167,116) ELECTRIC FUND $ 1,811,229 $ 580,578 $ 1,230,651 TOTAL $ 10,682,950 $ 8,776,632 $ 1,906,318 *Utility funds reported as cash equivalents, not fund balances. RESERVED FUNDS INSURANCE TRUST FUND $ 527,260 $ - $ 527,260 $ 544,872 $ (17,612) INMATE TRUST FUND $ 152,241 $ - $ 152,241 $ 141,591 $ 10,650 Fiduciary Agency Funds 05-SVRFA $ 50,662 $ (3,578) $ 47,084 $ 108,057 $ (60,973) 06-Dan River ASAP $ 248,572 $ (209,443) $ 39,129 $ 64,198 $ (25,069) 15-PRCJTA $ 589,312 $ - $ 589,312 $ 425,374 $ 163,938 30-BRRL $ 287,383 $ - $ 287,383 $ 244,477 $ 42,906 TOTAL $ 1,175,929 $ (213,021) $ 962,908 $ 842,105 $ 120,803 Updated: 2/1/23 \\FILE01\City Manager\Exec folders\Word\AGENDAS\2023\021423\7b Copy of FY23 Combined Balance Sheet - 2nd Qtr - FINAL.xlsx