Minutes of a regular meeting of the Town Council of the Town of Marion, Virginia held in the Council Chambers of the Municipal Building on January 17, 2006 at 7:00 p.m.

PRESENT: Mayor David P. Helms; Buford Cregger, Herbert Clay, Mark Warren, Ken Heath and Dr. James Gates, Council Members; Town Manager John E. B. Clark, Jr.; Town Engineer’s Assistant Todd Long; Police Chief Michael Roberts; Purchasing Agent B. J. Hamm; and Town Clerk/Director of Finance Dixie O. Sheets.

INVOCATION/PLEDGE TO THE FLAG: Mr. Heath rendered the invocation. Mayor

Helms led the Pledge to the Flag.

MINUTES: Upon motion of Mr. Heath, seconded by Mr. Clay, and vote of 6 AYES and 0 NOES, the minutes of the meeting held on January 5, 2006 were approved as written and distributed. Messrs Hendrick, Cregger, Warren, Clay, Heath, and Dr. Gates voted affirmatively.

VISITORS: Neil Castrodale, Debbie Overbay, Dave Fields, Jeff Spickard, and Joe Ellis

REPORT ON REZONING REQUEST OF FORMER PEPSI BULIDING-NORTH MAIN STREET FROM INDUSTRIAL TO COMMERCIAL: Dr. Kris Gandhi requested that the property located on North Main Street be rezoned from Industrial to Commercial General for the purpose of renting the property for a Day Care Center and a Day Spa. Upon motion of Mr. Clay, seconded by Mr. Heath and vote of 6 AYES and 0 NOES, this item was set for Joint Public Hearing on February 6, 2006 at 7:00 p.m.

REPORT ON REVISED COMPREHENSIVE PLAN: Mr. Fenyk advised that the Planning Commission had considered the comments from the Public Hearing and revised the Comprehensive Plan accordingly. Mr. Hendrick and Mr. Heath suggested that additional changes that occurred during the process be updated. Those include the proposed biking project which is now complete, situation with the water storage tank at the Department of Corrections and how it has been declared surplus and ownership has reverted back to the Commonwealth, and that the lack of housing is needed on all levels.

REPORT ON HOUSING ASSESSMENT PROPOSAL: Mr. Heath reported that only one proposal was received. The proposed cost is $20,000, which is unbudgeted. Mr. Heath moved that the item be referred to the Ad Hock Committee for study and recommendation. Mr. Warren seconded the motion. Council approved the same by a vote of 6 AYES and 0 NOES.

REPORT ON LEE STREET WATER LINE AND HIGHWAY PROJECT: Todd Long reported on the progress on Lee Street. He noted that the Engineering Department recommended that the current sewer system be considered for possible upgrade. No cost estimate has been prepared. Mr. Heath moved that this item be referred to the Sewer Committee, with power-to-act. Mr. Clay seconded the motion. Council approved the motion by a vote of 6 AYES and 0 NOES. Dr. Gates, Chairman of the Finance Committee, requested that the Committee be advised of the cost estimate.

ACCOUNTS: Upon motion, duly seconded and vote of 6 AYES and 0 NOES, the accounts were approved for payment in the amount of $798,227.19. Messrs Hendrick, Cregger, Warren, Clay, Heath, and Dr. Gates voted affirmatively.

INVESTMENT: There were no investments to report.

LINCOLN THEATRE-REPORT FROM JOE ELLIS: Joe Ellis presented an overview of the Song of the Mountains programming from the Lincoln Theatre. The concert series features local talent bluegrass and old-time musicians and is broadcast on Blue Ridge Public Television. The programs were initially broadcast in the Roanoke, Norton and Marion regions. Most recently the National Education Telecommunications Association has announced that it will make Song of the Mountains available to all 190 public broadcasting licensees.

With the success of the Song of the Mountains program, it has become necessary to hire a full-time Managing Director to oversee the production and promotion of the shows. Mr. Ellis requested a $12,000 contribution from the Town of Marion to assist with the costs of a Managing Director. A like sum has been requested from Smyth County and $6,000, each, from the Towns of Saltville and Chilhowie. He noted that the Song of the Mountains Committee plans to approach Martha White, Cracker Barrel and other major sponsors for participation in the marketing of the program. Upon motion of Dr. Gates, seconded by Mr. Warren and vote of 5 AYES and 1 ABSTENTION (Heath), the request was referred to the Finance Committee.

GENERAL FRANCIS MARION HOTEL: Mr. Joe Ellis announced that the General Francis Marion Hotel would open on January 27. The delay in opening is due to regulating of the heating system. The Hotel will contain 36 rooms, 3 executive suites and 6 junior suites. It is anticipated that the restaurant will open in March or April.

FARMER’S MARKET: Mr. Ellis reported that plans are in progress to hold a Farmer’s Market on Friday and Saturday during the growing season to be located on the Old Iron Street Right of Way, near the Town parking lot.

5K RACE-REQUEST FROM NEIL CASTRODALE: Upon motion of Mr. Heath, seconded by Mr. Hendrick and vote of 6 AYES and 0 NOES, Town Council approved the Annual Habitat for Humanity 5K Run to be held on May 13. Chief Roberts will coordinate this event with Habitat for Humanity.

WATER TREATMENT PLANT AND PRATER PUMP STATION-REVIEW OF BIDS: Mr. Clark gave an overview of the funding package for the Water Treatment Plant Upgrade and Prater Lane Pump Station Improvements. The Town received a $1,576,700 loan from the Health Department, $144,612 grant from the Virginia Tobacco Commission (for the second sedimentation basin), and an $188,960 grant fro the Prater Lane Pump Station from the Virginia Regional Water Fund through MRPDC. The total project budget is $1,910,272. This does not reflect the $100,000 grant/loan from MRPDC for engineering.

There were four (4) engineering firms submitting bids on the project, which were opened on January 12, 2006 at 2:00 p.m. The bids ranged from $2,696,970 to $1,653,700. The apparent low bidder was Frizzell Construction of Bristol, Tennessee. The base bid was divided into five categories including mobilization, general construction, equipment, filtration units and telemetry. The Prater Lane Pump Station was bid out separately. Frizzell Construction was also the apparent low bidder on at $135,000. Frizzell’s total apparent low bid was $1,788,700 for the Water Treatment Plant. Notice of Award and a Notice to Proceed will be issued following discussion of details and a meeting with appropriate funding agencies. Frizzell hopes to begin construction in March 2006. A requirement of the contract will provide that the water supply be ample and that the water treatment plant may be operated as needed.

Upon motion of Dr. Gates, seconded by Mr. Warren and vote of 6 AYES and 0 NOES, the low bid was awarded to Frizzell Construction in the amount of $1,788,700, contingent upon the concurrence of the Health Department.

STREET COMMITTEE-NEW DESIGNATED PARKING SPACES ON SOUTH SIDE OF CHERRY STREET: These areas are to be marked off and painted at the earliest possible date. Council members asked that the plan be communicated to Dr. Trulik, who was spokes person for those requesting additional parking. Council asked that she also be advised that they are continuing to solve the parking dilemma. It was noted that not enough parking in the Downtown area is a problem but also means that the Downtown area is thriving.

It was requested that the drop-off spaces at the General Francis Marion Hotel and Macados also be marked.

FINANCE COMMITTEE-AUDIT MEETING SCHEDULED ON JANUARY 20: This item was continued.

EQUIPMENT COMMITTEE SCHEDULED TO MEET ON JANUARY 20: This item was continued.

PPTRA CALCULATIONS CONFIRMATION-TOWN ATTORNEY: Mr. Fenyk advised that he and Mr. Hendrick had discussed the matter and are satisfied that the calculations in the Town’s formula are correct.

WATER CONTRACT WITH SMYTH COUNTY-TOWN ATTORNEY: Discussion ensued. Mr. Fenyk advised that two (2) separate contracts have been presented to Smyth County for their review. The early renewal of the contract was initiated by Smyth County in July 2005 to adjust the term to provide for a 40-year commitment (with 3 year reviews) to assist the County with funding applications. The only change in the contract, on the Town’s part, is to set a minimum usage to assist the Town in budgetary matters in guaranteeing the water. The second contract proposal was hand-delivered to the County on November 21, 2005 and the Town has had no response from the County.

Mr. Clark reported that the County is attempting to contract with other purveyors of water. Recently, they agreed to make a “tie-over” to the Chilhowie water line to purchase water from them at $3 per thousand. According to Mr. Clark, this will result in the Town loosing 43% of the amount currently purchased by the County.

Mr. Heath moved that the Town and County Water Committees meet to discuss the contract. Also invited to the meeting should be the Town Manager, County Administrator, and possibly legal counsels for both. Mr. Clay seconded the motion. Council approved the same by a vote of 6 AYES and 0 NOES.

LEE STREET CONSTRUCTION COMPLAINT: Ms. Debra Overbay spoke to Town Council on behalf of Jeff Davis, owner of H&R Block franchise located on Lee Street. Mr. Davis met with Cecil Hicks prior to the project and requested that his business not be blocked during the busy tax season. Ms. Overbay reported that the street is under construction, yellow tape has been placed across the entrance to his business, holes have been dug and equipment is parked on his parking area. Mr. Clark reported that several of the businesses have had issues and Mr. Hicks had met with them. He was unaware that Mr. Davis was experiencing problems. Mr. Clark and Mr. Heath would contact Mr. Davis discuss this matter.

FIRE FIGHTER TRAINING: Mr. Heath advised that a Fire Fighter training facility might be constructed in Marion. He suggested that the Town might own an appropriate site for this facility. Upon motion of Mr. Hicks, seconded by Mr. Clay and vote of 6 AYES and 0 NOES, this matter was referred to the Building & Grounds Committee for study and recommendation.

ART GALLERY: Mr. Heath reported that he had been advised that the Art Gallery is in the process of applying for 501c3 tax-exempt status. They are interested in re-opening the Art Gallery in April and suggested several areas in need of repair at 144 W. Main Street.

DOWNTOWN PARKING: Suzanne Sukle, in correspondence to Mr. Heath, suggested that the Town consider the purchase of the Center Building and replace the rear of the building with a three story-parking garage.

SOUTHWEST ECONOMIC DEVELOPMENT GRANT WORKSHOP: Mr. Heath advised that there is a Southwest Economic Development Grant Workshop on Thursday, January 26, 2006, 10 am-Noon. The meeting will be conducted at the Southwest Virginia Higher Education Center located in Abingdon, VA.

UPDATE ON DILAPIDATED BUILDINGS: Council asked for a status report on dilapidated buildings. Mr. Clark noted that the Engineering Department would be advised to prepare this report.

Upon motion, duly seconded and vote of 6 AYES and 0 NOES, the meeting was adjourned.