PRESENT: Mayor Marshall Guy; S. S. Burkett, James Gates, Ralph Price, Eugene Hendrick and David Helms, Council Members; Town Manager Henry Booker; Town Engineer Cecil Hicks; and Police Officer Dennis Barker.

INVOCATION/PLEDGE TO THE FLAG: The invocation was rendered by Cecil Hicks and Mayor Guy led the Pledge to the Flag.

MINUTES: Upon motion of Mr. Helms, seconded by Mr. Hendrick, and vote of 5 AYES and 0 NOES, the minutes were approved as written and distributed

VISITORS: Bob Dix, Kenneth Bauman, Ernest Aker, Scottie Dolinger, Larry Blevins, Barbara Steele.

PUBLIC HEARING FOR SPECIAL USE PERMIT FOR HOME OCCUPATION AT 130 PARK BOULEVARD - KENNETH BAUMAN: Mr. Bauman requested a Special Use Permit for Home Occupation to allow the residence to be used as an upholstery shop. In his application he stated that "the work only would be done at 130 Park Boulevard as sales calls and display of fabrics would be made in area homes by appointment. Staff recommendation was for approval with the following conditions: 1) That all Federal and State laws, along with all local ordinances be obeyed in general, and that Town ordinances pertaining to land use, noise, drainage, signs and parking be followed in particular. 2) That the requested mixed use of this property continue to meet the definition of Home Occupation as defined in the Town's Zoning Ordinance. 3) That there be no commercial signage visible from the street, no commercial alteration of the property, no commercial outside storage, or other outside activities which would alter the residential character of the neighborhood. 4) The property owner will provide off-street parking for any customers, delivery vehicles or other vehicles associated with the business. 5) That the applicant acquire a Town of Marion Business License prior to beginning business. 6) That the applicant will make provisions for the private removal of any debris generated by the business. 7) That the Special Use Permit be revoked upon: a) any period of 12 consecutive months in which there is not active mixed use of the property under the provisions of this special use permit; or b) At any time that the Town Council determines that the conditions of this permit are not being met; or c) upon request of the property owners, d) upon the sale of the property, or upon the property owners establishing a primary residence at another location, or upon a substantial change in the nature of the business. No one was present to speak during the Public Hearing. Mayor Guy asked for public comments. Upon motion of Mr. Hendrick, seconded by Mr. Helms, and vote of 5 AYES and 0 NOES, the request was granted with conditions.

CONSIDERATION OF WATER SERVICE FOR CUSTOMERS ON S.R. 16 SOUTH: Mr. Booker reported that, at this point, the Town has done all it can do in pushing this project along. The Town is awaiting approval from the Virginia Health Department and Smyth County to hook onto their line. Materials for the project have been received and a contractor is on standby. We will proceed as soon as approvals are received.

REPORT ON POSSIBLE PASSENGER RAIL SERVICE - ERNEST AKER: Ernest Aker informed Council that possibly passenger rail service to Southwest Virginia will be proposed in the future. The proposed Trans-Dominion Express will cross the Commonwealth, connecting Central and Southwestern Virginia with Richmond and Northern Virginia. It will provide broader passenger rail transportation options to millions of residents and tourists as it passes through communities. However, at this time, there are no federal plans for Virginia. He requested the Town of Marion's endorsement for expanded passenger rail service. Mr. Booker read a Resolution encouraging the implementation of this rail service and pledging its assistance to the Commonwealth of Virginia in implementing said service. Upon motion of Dr. Gates, seconded by Mr. Hendrick and vote of 5 AYES and 0 NOES, the Resolution was adopted.

CONSIDERATION OF TOWN AMORTIZATION OF AIRPORT BOND: Mr. Booker reported that the Town has been approached by the Airport Commission with a request that each of the owning jurisdictions underwrite and reimburse a $500,000 loan which would be the local match for a grant to make certain changes at the Airport. The Airport Commission is now requesting the committed money (Town share is $125,000.00) for next summer. The Town must now decide an amortization schedule. Upon motion of Dr. Gates, seconded by Mr. Hendrick, and vote of 5 AYES and 0 NOES, this matter was referred to the Finance Committee.

REQUEST FOR SPECIAL USE PERMIT FOR PROFESSIONAL OR OFFICE USE AT W. COYNER AND CHATHAM HILL ROAD - JOHNNY AND DEBORAH R. BLEVINS: Public Hearing was set for 11/15/99 at 7:00 p.m.

STREET LIGHT REQUEST- RIVERVIEW DRIVE: This matter was referred to the Street Light Committee for study and recommendation.

ACCOUNTS: Upon motion of Dr. Gates, seconded by Mr. Helms, and vote of 5 AYES and 0 NOES, the accounts were approved for payment in the amount of $570,242.07. Dr. Gates, Mr. Hendrick, Mr. Burkett, Mr. Helms, and Mr. Price voted affirmatively.

INVESTMENTS: Upon motion of Mr. Burkett, seconded by Mr. Helms, and vote of 5 AYES and 0 NOES, the Investment Report was approved.

DOWNTOWN CELEBRATION COMPLAINT: Scottie Dolinger, Scottie's Barber Shop, complained to Council that a Halloween Celebration planned in the Downtown area on October 30, is creating a problem for his business. The street will be blocked off due to the event and Mr. Dolinger stated that this fact hampers his business. He did not feel that his business was considered when the plans were discussed. Mayor Guy explained that the Town plans these activities to bring business to the downtown area. It was not intended to keep merchants from opening their business but to encourage more people downtown to shop.

BUDGET/FINANCE COMMITTEE - REVIEW OF COMPUTER FINANCING: Mr. Booker explained that the Council has already approved the purchase of a new computer system. The proposed Lease-Purchase Agreement is an option for payment. Upon motion of Dr. Gates, seconded by Mr. Hendrick and vote of 5 AYES and 0 NOES, this matter was referred to the Finance Committee, with power to act. Dr. Gates, Mr. Price, Mr. Burkett, Mr. Helms, and Mr. Hendrick voted affirmatively.

WATER COMMITTEE - WATER SERVICE AT SEVERT HILLS APARTMENT: It was reported that the line serving the apartments in the new section of Severt Hills Apartment is failing and needs to be replaced. Given that the ownership of the line is in question, the Housing Authority has approached the Town and requested that the Town either replace or help replace this line. The Water Committee recommended that the Town replace the 2" section of the line and install a master meter at the entrance of this section of line. Once the line is repaired, the Committee recommended that the Town dedicate that portion of the line to the Housing Authority and begin billing from the master meter. In return, the Housing Authority will pay 30% of the cost and will accept responsibility for perpetual maintenance of the distribution line within that section. Estimated cost for the project is $1,800 to replace the line and $9,500 for a master meter. Following discussion, Dr. Gates moved that the line be replaced, with MRHA participating in 30% of the cost and that no master meter be set. The motion was seconded by Mr. Price and carried by a vote of 5 AYES and 0 NOES. Mr. Hendrick, Mr. Helms, Mr. Burkett, Mr. Price and Dr. Gates voted affirmatively.

ORDINANCE COMMITTEE - REPORT ON SEWER HOOK-UP CHARGE: This item was continued.

STREET COMMITTEE - REPORT ON CHARLES COOK REQUEST TO WAIVE PORTIONS OF THE SUBDIVISION REGULATION: Mr. Cook wishes to construct a second house on the property he owns on Middle Avenue for the purpose of housing a family member. The Street Committee recommended that as Mr. Cook is building the new house for his family's use and not as a commercial developer and that there are certain personal hardships associated with this request, that street extension requirements be waived for Mr. Cook. Upon motion of Mr. Hendrick, seconded by Mr. Price, and vote of 5 AYES and 0 NOES, Council approved this waiver.

STREET COMMITTEE -REPORT ON JAMES SEVERT REQUEST FOR A CURB CUT ON CHATHAM HILL ROAD: It was noted that Mr.Severt is partial owner of the property on the Northwest corner of Lee Street and Chatham Hill Road. The property is zoned commercial and he, along with the other property owners, have petitioned the town for a curb-cut on the Chatham Hill Road side of the property. This has been denied by staff, based on the analysis of both staff and VDOT Traffic Engineer, Ronnie Hubble. Mr. Severt has renewed his request. This request was referred to the Street Committee.

INSURANCE COMMITTEE - REVIEW OF EMPLOYEE HEALTH INSURANCE BIDS: Bids were received on October 8, 1999 for a fully-funded health care program. A comparison of the bids was presented to Council for review. Mr. Booker explained that two of the bids are from Trigon and are identical. Farm Bureau and Slemp Brant both submitted bids for Trigon. The Town must choose one vendor if this product is selected. The other product was John Deere. A matter of concern with the Trigon product is a possibility of a retroactive adjustment to the rates at a later date. Mr. Booker advised that he had been assured by Candy Snodgrass, Trigon underwriter, that this is a firm 12 month quote. A savings of $30,000 - $40,000 will be realized by the Town for this change. Upon motion of Mr. Hendrick, seconded by Mr. Price and vote of 5 AYES and 0 NOES, Council voted to change health insurance coverage to Trigon The trust fund will remain in place should renewal rates increase significantly. With regard to the broker, upon motion of Mr. Price, seconded by Dr. Gates and vote of 5 AYES and 0 NOES, Slemp- Brant was selected as broker, based upon service and longevity. Mr. Price, Mr. Hendrick, Mr. Helms, Mr. Burkett and Dr. Gates voted affirmatively.

WATER CONTRACT WITH SMYTH COUNTY: Mr. Booker reported that a proposed contract has been submitted to the County and returned, from them, with comments and requests for changes. A meeting will be scheduled between the Town and County Water Committees to discuss requested changes and finalize the agreement.

RECREATION COMMITTEE - CONSIDERATION OF BASKETBALL COURT AT STEELE PARK: This item was continued

VML ANNUAL CONFERENCE: Mayor Guy reported that the Conference, held in Williamsburg, was most informative and interesting. Members of Council agreed.

TRAIN NOISE - MEETING WITH CONGRESSIONAL OFFICE: Mayor Guy informed Council that he had met with representatives of the railroad concerning railroad safety issues. Additional safety regulations are expected to be approved in 2000 and one year grace period granted for implementation. There will be no quiet zones in the proposal.

MARION PRIMARY SCHOOL: Mayor Guy noted that an invitation from Marion Primary School on Friday, October 22, 1999 at 1:30 p.m. has been received. As part of the Sesquicenntiel Program, a capsule, buried in 1976, will be dug up and opened. Members of Council were invited to attend.

TOWNS/COUNTY MEETING: Mayor Guy advised that the Towns/County Quarterly Meeting will be held in Saltville on October 27, 1999 at 5:45 p.m. It will begin with a tour of Saltville and dinner at 7:00 p.m.

SALTVILLE: Council congratulated the Town of Saltville for a Tourism Awarded presented to Mayor Frank Lewis at the Annual VML Conference.

VML OFFICERS: Mayor Guy stated that Trenton Crewe, Mayor of Wytheville, is the president elect of the VML and French Moore, Town of Abingdon, will be the Chair of the Town Section.

PAVING: Mr. Helms asked for an update on fall paving. Mr. Hicks advised that he faxed the schedule to W-L Construction and expects paving to begin within 2 weeks.

STREETSCAPE: Dr. Gates informed Council that the Town is working with contractors and Dewberry & Davis concerning dissatisfaction of the brick pavers in the lower section of the project.

CHRISTMAS PARADE: It is expected that the sidewalk work will be completed in time for the Christmas Parade to be held on November 23.

STRIPING: Dr. Gates moved that the striping bid be awarded to Mountain Empire Markings of Bristol, VA in the amount of $22,943.60. The motion was seconded by Mr. Helms and carried by a vote of 5 AYES and 0 NOES. Mr. Helms, Mr. Price, Mr. Burkett, Mr. Hendrick and Dr. Gates voted affirmatively.

SMITHFIELD: Mr. Booker advised that a Sister City Program has been established. The Town of Smithfield is Marion's sister city.

"ROYAL OAK": Mr. Booker advised that during the Town's Sesquicentennial the search for the oldest oak tree has begun. One nomination has been received.

POLICE CARS: State bids on vehicles has been received. The bids are $1,800 more than the budgeted amount. Dr. Gates moved that this overage be approved and 2 police cars ordered. The motion was seconded by Mr. Helms and carried by a vote of 5 AYES and 0 NOES.

HALLOWEEN VISITATION: Mr. Booker advised that Halloween visitation will be observed on Saturday, October 30, 1999.

Upon motion, duly seconded, and vote of 7 AYES and 0 NOES, the meeting was adjourned.