PRESENT: Mayor Marshall Guy; Samuel Burkett, David Helms, Sam Mutter, Mel Leaman, Ralph Price, James Gates and Eugene Hendrick, Council Members; Town Manager Henry Booker; Town Engineer Cecil Hicks; Town Attorney Mark Fenyk; Police Cpl. Stephen Farris and Police Officer Charles Bishop.

MINUTES: Two changes to the minutes were noted. Low-bidder for Commerce/Pendleton/Main Street Water Project was Little B of Glade Spring, VA. The Town approved 50% payment of refitting handicap rails for the Municipal Building. Upon motion of Mr. Mutter, seconded by Mr. Leaman, and vote of 7 AYES and 0 NOES, the minutes were approved as corrected.

VISITORS: Howard Bruce, Rex Anders, Richard Henderson, Jay Overbay, Linda Diaz, Tracy Gross, Michele Wagoner, Dorothy Greer, Kim Overbay, Stan Gross, David Wagoner, Addie Contrini, Robert Contrini, Sandra Ferguson, Harold Waddell, Tom Holley, Rev. James Bangle, Dan Reed, Pat Rankin, Estell Davis, Mr. Totten, Brent Harrell, and Mike Hayes.

SPECIAL PRESENTATION - RESOLUTION OF APPRECIATION TO FRED MILTON CATRON, JR. ON THE OCCASION OF HIS RETIREMENT FROM THE TOWN OF MARION, VIRGINIA: Mr. Booker read Resolution 00-202, in appreciation for the service of Fred M. Catron, Jr. to the Town of Marion. Chief Catron was not in attendance. Upon motion, duly seconded and vote of 7 AYES and 0 NOES, the Resolution was adopted.

SPECIAL PRESENTATION-RESOLUTION OF APPRECIATION TO MARSHALL E. GUY ON THE OCCASION OF HIS RETIREMENT FROM THE MARION TOWN COUNCIL: Mr. Booker read the Resolution and presentation was made by Vice-Mayor Sam Burkett. Upon motion, duly seconded, Town Council unanimously adopted the Resolution.

PUBLIC HEARING - REQUEST FOR SPECIAL USE PERMIT FOR HOME OCCUPATION- 304 W. CHERRY STREET-ROBERT CONTRINI: The applicant requested a Special Use Permit to allow the structure to be used for a Locksmith Shop. No one was present to speak for or against the request. Staff recommendation is to approve 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. The residence may be used for office occupations and not as a venue for walk-in customers. 3) That there be no commercial signage visible from the street, nor commercial alteration of the property, no commercial outside storage, or other outside activities which would alter the residential character of the neighborhood. Standard vehicle signs identifying the business are allowable. 4) That the applicant acquire a Town of Marion Business License prior to beginning business. 5) The property owner will provide off-street parking for any customers, delivery vehicles, or other vehicles not normally housed at the residence associated with the 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 used 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 applicant; or 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. Upon motion, duly seconded, and vote of 7 AYES and 0 NOES, the request was granted.

PUBLIC HEARING ON PROPOSED 2000-2001 ANNUAL BUDGET: Mr. Booker presented an overview of the 2000-2001 Budget. The budget is balanced at $6,916,212. There was no public comment. Upon motion of Dr. Gates, seconded by Mr. Mutter and vote of 7 AYES and 0 NOES, the 2000-2001 Budget was adopted as presented. Mr. Helms, Mr. Mutter, Dr. Gates, Mr. Hendrick, Mr. Leaman, Mr. Burkett, and Mr. Price voted affirmatively.

A REQUEST TO ASSIST SMYTH COUNTY IN COLLECTION OF CERTAIN SEWER BILLS: Mr. Booker reported that a portion of the Town Water Contract with Smyth County states the Town is to collect sewer bills from those customers who have both Town water service and County sewer service. However, a quote from Bright Computer Services , reflects a cost of $2,400 to modify the Town computer to collect the County's sewer bills. The County has been contacted concerning this charge for modifications. Jeff Spickard, County Engineer, stated that this should not be a County expense, since this was not included in the Contract. The Town would receive a processing fee of $0.10 for each bill sent. It is anticipated that this agreement would cover approximately 200 County/Town customers. If the processing fee were applied to the cost of computer modifications, it would take 120 months to break even. The Town's intent was to provide this service for the County at a modest cost to cover our incremental handling cost. Given that this is an expense which was not anticipated by either the Town or County, it is Mr. Spickard's current request to have the Town cut off water service to Town water customers for non-payment of their County sewer bills. The cost of computer modification is an expense which was not anticipated in drafting the contract. This would be a casual arrangement in which the County would call or provide written notice of those water customers which they wished to have service discontinued because of non-payment of County sewer bills. This brings us back to the point where we were a year ago inasmuch as this would place the Town in the position of having to discontinue service to our customers who are in good standing with the Town. This item was referred to the Finance Committee for further study, upon motion of Dr. Gates, seconded by Mr. Price and vote of 7 AYES and 0 NOES.

APPOINTMENT TO THE TOWN COUNCIL SEAT VACATED BY PAT HELMS: Mr. Mutter moved that Buford Cregger be appointed to the Town Council seat to be vacated by Mr. Helms on July 1, 2000. The motion was seconded by Mr. Price and carried unanimously. Mr. Helms, Mr. Burkett, Mr. Mutter, Mr. Price, Mr. Leaman, Mr. Hendrick and Dr. Gates voted affirmatively.

SPECIAL CALLED MEETING TO CLOSE END OF YEAR MATTERS-JUNE 30, 2000-5:00 P.M.: A Special meeting will be held on June 30, 2000 at 5:00 p.m. to conduct matters to close the end of fiscal year 1999-2000.

PRESENTATION BY HOWARD BRUCE CONCERNING MARION COMPOSITE'S INTEREST IN RAILROAD GATES: Mr. Mutter read a statement that he will avert from all discussion and or actions concerning Marion Composite's request coming before Council and/or any subsequent meetings. Mr. Mutter is an employee of Marion Composites. Howard Bruce, of Marion Composites, requested assistance in the cost of purchase and installation of railroad gates on Industrial Road. He cited a safety concern. There are 300-400 cars, 300 walkers, delivery trucks and 12 trains per day. Mr. Bruce stated that he has approached the Smyth County Board of Supervisors and made a similar request. The estimated cost of the project is $150,000. Upon motion, duly seconded and vote of 6 AYES and 1 ABSTENTION (Mutter), this matter was referred to the Street Committee. Mr. Bruce to set up the meeting and notify the Town.

REQUEST FOR VARIANCE TO ACCOMMODATE A SUB-DIVISION -546 E. MAIN STREET-DAVID T. AND MICHELE S. WAGONER: Mr. and Mrs. Wagoner requested the division of property located at 546 E. Main Street and 185 Wilden Street. The request would require a proposed variance and hearing by the Board of Zoning Appeals. Upon motion of Mr. Helms, seconded by Mr. Leaman and vote of 7 AYES and 0 NOES, this matter was referred to the Board of Zoning Appeals.

REQUEST FOR FIREWORKS DISPLAY PERMIT- JULY 4, 2000- JOHN H. TATE, JR. -1002 NORTH MAIN STREET: John H. Tate, Jr. requested a permit to conduct a fireworks display on his front lawn on July 4, 2000. The Town has granted a permit for this for several years. Staff recommendation is to grant the permit under the following conditions: 1) The sponsor of the fireworks display take reasonable precautions to prevent injury and damage, such precautions including, but no limited to having water available for extinguishing fires and sufficient adult supervision to assure an orderly display. B) That all fireworks, residues and precipitation therefrom be contained on private property. C) That the owner of the property provide the Town with a written release indemnifying the Town from any injury or damage resulting from said display. Upon motion of Mr. Burkett, seconded by Mr. Mutter and vote of 7 AYES and 0 NOES, the request was granted.

REQUEST FOR REZONING-NORTH MAIN STREET-ROYAL OAK PARK LOTS 11,13& PART OF 12- FROM R-1 TO COMMERCIAL GENERAL-JOAN QUERY RASH, FREDERICK D. QUERY, AND ELSIE QUERY SCLATER: The property is the D. D. Query residence and has been marketed for residential use with no legitimate activity. This request was referred to the Marion Planning Commission for study and recommendation.

ACCOUNTS: Upon motion, duly seconded and vote of 7 AYES and 0 NOES, the Accounts were approved in the amount of $432,553.58. Upon motion, duly seconded and vote of 7 AYES and 0 NOES, the accounts were approved. Mr. Burkett, Mr. Helms, Mr. Hendrick, Mr. Leaman, Mr. Price, Dr. Gates and Mr. Mutter voted affirmatively.

INVESTMENTS: Upon motion of Mr. Mutter, seconded by Mr. Burkett, and vote of 7 AYES and 0 NOES, the Investment Report was approved as written and distributed.

MUNICIPAL BUILDING RENOVATION: Attorney Dan Reed and several of the sub-contractors for the Municipal Building Renovation Project were present to again inform Town Council that they have not been paid by the general contractor, U. S. Construction. Rankin Electric, Hayes Carpet Service, Byrd & Goff and Totten construction were in attendance. They stated that, cumulatively, they have not been paid for work completed, in the amount of $62,972. Mr. Reed requested that further payment to the general contractor should be withheld until the sub-contractors, all local businesses, have been paid. He noted that the contractor has certified on his bill that sub-contractors have been paid. It is his opinion that the certification is false. Mike Hayes suggested that the Town pay U. S. Construction jointly with each sub-contractor. Mark Fenyk, attorney for the Town of Marion, stated that the Town is bound by contract with U. S. Construction and payment of the sub-contractor should be between them and the general contractor. A lengthy discussion ensued. Staff was asked to contract U. S. Construction for proper and truthful statement of all unpaid sub-contractors. Reference was made to a negotiated settlement between the contractor and Town concerning liquidated damages. Mr. Fenyk advised that the agreement was not made in accordance with the contract. He further stated that the Contractor may be entitled to interest (at 9%) on monies withheld from the Town of Marion. Mr. Burkett moved that the Town withhold payment to U. S. Construction until sub-contractors have been paid. The motion was seconded by Mr. Price and carried unanimously.

STREET LIGHT COMMITTEE-REQUEST FOR LIGHT AT 810 CUMBERLAND STREET: The Committee determined that there is ample light at this location. Upon motion of Dr. Gates, seconded by Mr. Price, and vote of 7 AYES and 0 NOES, this request was denied.

POLICE COMMITTEE- STATUS ON POLICE CHIEF RECRUITMENT: This item was referred to Closed Session.

BUILDING COMMITTEE-REPORT ON COMPLETION OF MUNICIPAL BUILDING: The Municipal Building is complete except for receiving the final Certificate of Occupancy. The Building Inspector has required a modification to light in the Council Chamber. The prime contractor has notified Rankin Electric to make the repairs. We have received a Release of Lien from the bonding company and payment certificates on subcontractors. The architect, Bill White, has discussed the Certificate of Occupancy with the Building Inspector, Bud Owens. This item was continued.

BUILDING COMMITTEE-REPORT ON STREETSCAPE AGREEMENT: Mr. Heath stated that a proposal from Ken Construction for the annual agreement for maintaining the Downtown StreetScape has been received at a cost of $16,500. The Committee recommends that this set of duties be assigned to the Grounds Maintenance Department. Upon motion of Mr. Price, seconded by Mr. Helms and vote of 7 AYES and 0 NOES, the Committee recommendation was accepted.

BUILDING COMMITTEE-REPORT ON SOUND SYSTEM FOR COUNCIL CHAMBERS: This item was continued

EQUIPMENT COMMITTEE-REVIEW OF RADIO CONTRACT: It was reported that the Town has a retainer with Two-Way Radio in which we pay $187.50 per month. As a Town employee is on standby to repair radios and as a back-up the Town has Terry Surface and Two-Way Radio. The Committee recommends that the Town discontinue the retainer with Two-Way Radio. Upon motion, duly seconded, and vote of 7 AYES and 0 NOES, the Committee recommendation was accepted.

E-911: Mr. Mutter asked if the 911 Committee plans to upgrade the system to place Police, Fire and Rescue on high ban. Mr. Leaman, a member of the 911 Committee, stated that funds have been allocated in the County Budget for a study.

STREET LIGHT REQUEST-722 GOOLSBY STREET-MAUDE RICHARDSON: Mayor Guy informed Town Council that a request for street light has been received from Maude Richardson. The Street Light Committee will consider this request and make a recommendation.

RECREATION DIRECTOR-RETIREMENT-GENE OLINGER: It was announced that Recreation Director Gene Olinger plans to retire 11/1/2000.

SOCCER SEASON: Mayor Guy congratulated Dr. Gates on a successful soccer season. The MSHS team was Highlands District Champions and Region IV Champions.

PAVING BIDS-TOWN ENGINEER CECIL HICKS: Mr. Hendrick moved that the low bid from W-L Construction be accepted. The motion was seconded by Mr. Burkett and carried unanimously.

ANIMAL CONTROL GUIDELINES-TOWN MANAGER HENRY BOOKER: Mr. Booker requested that Council Members review the proposed Animal Control Guidelines.

FOWLER STREET EXCEPTION: Plans for this project were sent to VDOT for review on June 16, 2000.

SUMMER PICNIC: The Town of Marion will host a picnic for employees on Friday, June 23, 2000 at Noon.

POOL: Mr. Booker reported that pool revenues are up $2,500 from this time last year.

PURSUANT TO VIRGINIA CODE 2.1-344 (A1, A3, A7) and upon motion of Mr. Hendrick, seconded by Mr. Price, and vote of 7 AYES and 0 NOES, Council convened in closed session to consider a personnel matter, a real estate matter and possible litigation. Mr. Hendrick moved that Council return to regular session and that it be known that the only matters discussed during the closed session were those both lawfully exempted from the open meeting requirements and identified in the motion by which the closed session was convened. The motion was seconded by Mr. Price and carried unanimously. Dr. Gates, Mr. Leaman, Mr. Helms, Mr. Burkett, Mr. Hendrick, Mr. Mutter and Mr. Price voted affirmatively.

POLICE CHIEF INTERVIEWS: Mr. Helms moved that Stephen Farris and Michael Roberts be re-interviewed by the full Council. The motion was seconded by Mr. Price and carried by a vote of 7 AYES and 0 NOES.

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

Minutes of a Special Called Meeting of the Town Council of the Town of Marion, Virginia held at the Municipal Building on June 27, 2000 at 5:00 p.m.

PRESENT: Mayor Marshall Guy; Samuel Burkett, Sam Mutter, Eugene Hendrick, David Helms, Mel Leaman, Ralph Price, and Dr. Gates, Council Members; Town Manager Henry Booker; Town Attorney Mark Fenyk.

VISITORS: Rick McNew, Wes Thomas, Steve Farris, Rex Anders, Charles Anders, B. C. Cregger, Tina Hayden, Darrell Hayden, Susan Ogleby.

APPOINTMENT OF CHIEF OF POLICE: Mr. Leaman stated that Police Chief Fred Catron has elected to retire, effective June 30, 2000, after serving as Chief for 6 months. He and Mr. Helms stated that this was a difficult decision and would encourage the Police Department to work together to have the best department in Southwest Virginia.

Mr. Leaman moved that Michael Roberts be appointed Chief of Police for the Town of Marion for a 6 month probationary period. The motion was seconded by Dr. Gates and carried unanimously.

Mayor Guy adjourned the Special Called Meeting.

Minutes of a Special Meeting of the Town Council of the Town of Marion, Virginia held at the Municipal Building, on June 30, 2000 at 5:00 p.m.

PRESENT: Mayor Marshall Guy, Samuel Burkett, E. S. Mutter, Jr., Eugene Hendrick, Mel Leaman Council Members; Henry Booker, Town Manager; B. J. Hamm, Purchasing Agent; Police Officer Wes Thomas and Town Attorney, Mark Fenyk.

INVOCATION/PLEDGE TO THE FLAG: Mr. Hicks rendered the invocation and the Pledge to the flag was lead by Mayor Guy.

VISITORS: Dreama Mutter, Carole Henderson

ADJUSTMENT OF CHARGES AND CREDITS - FINANCE OFFICE: Mr. Burkett moved that these adjustments be accepted as presented. The motion was seconded by Mr. Leaman and charges and credits were approved by a vote of 5 AYES and 0 NOES.

CHARGES:

CREDITS:

NOTE: Total Charges to Office of Finance for Water, Sewer, and Garbage for fiscal year 1999-2000 2,441,909.71

PAYMENTS OF 1999-2000 ACCOUNTS ON HAND: Mr. Mutter moved that the accounts be paid from the General Fund in the amount of $362,349.33. The motion was seconded by Dr. Gates and approved by a vote of 5 AYES and 0 NOES.

SET TAX LEVY: Mr. Burkett moved that the following tax levy be set for the 1999-2000 fiscal year. The motion was seconded by Dr. Gates and was approved by Council by a vote of 5 AYES and 0 NOES.

BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF MARION, VIRGINIA; THAT pursuant to the Town Charter, the following taxes be levied for the necessary and proper management and expenses of the Town of Marion, Virginia for the fiscal year beginning July 1, 2000:

RESIGNATION: Mayor Guy announced that he had received the resignation of Town Manager Henry Booker, effective 7/21/00.

Upon motion, duly seconded and vote of 5 AYES and 0NOES, the meeting was adjourned.