PRESENT: Mayor David P. Helms; Eugene Hendrick, Buford Cregger, Herbert Clay, Mel Leaman, Ken Heath and Dr. James Gates, Council Members; Town Manager John E. B. Clark, Jr.; Town Engineer/Assistant Town Manager Cecil Hicks; Police Chief Michael Roberts; Town Attorney Mark Fenyk; Purchasing Agent B. J. Hamm and Town Clerk/Director of Finance Dixie Sheets.

INVOCATION/PLEDGE TO THE FLAG: Mr. Hicks rendered the invocation. Mayor Helms led the Pledge to the Flag.

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

VISITORS: Daveena Sexton, Jeff Spickard, Patricia Belcher, Billy Wyatt, Clayton Cregger.

SECOND PUBLIC HEARING ON BOND ISSUE WITH DEPARTMENT OF HEALTH FOR WATER TREATMENT PLANT PROJECT-$1,684,600: This public hearing was opened by Mayor Helms. The hearing on the proposed issuance of bonds by the Town of Marion in the amount of $1,684,600, at 3% for a period of 20 years, for the purpose of financing improvements to the Town’s Water Treatment System. No one from the public was present to comment on the proposed bond issue. Upon motion of Mr. Leaman, seconded by Mr. Hendrick, and vote of 6 AYES and 0 NOES, Town Council approved the issuance of bonds, in the amount of $1,684,600, to finance improvements to the Town of Marion Water Treatment System. Messrs Hendrick, Cregger, Leaman, Heath, Clay, and Dr. Gates voted affirmatively.

AUDITED FINANCIAL STATEMENTS FOR FY ENDING JUNE 30, 2005: Patricia Belcher, Albano & Associates, presented a brief overview of the Town’s financial status. She had met previously with the Town Manager, Town Clerk/Director of Finance and the Finance Committee to discuss the financial statements, in depth. She noted that the Town received an Unqualified Audit (highest standard) and that the Town has adopted the GASB 34 requirements. Mrs. Belcher stated that the Town is in good financial position, has a good operating system of segregation of duties and has no compliance issues. She explained the new format of the audit under GASB 34 guidelines, where there are actually two (2) very different reports.

DEPARTMENT OF HEALTH GRANT FUNDS FOR FLUORIDE EQUIPMENT: Mr. Clark advised that a grant of $19,500 has been awarded to the Town to install fluoride equipment at the Water Treatment Plant.

RESOLUTION-ADOPTION OF COMPREHENSIVE PLAN-ZONING ADMINISTRATOR: Upon motion of Mr. Heath, seconded by Mr. Leaman, and vote of 6 AYES and 0 NOES, Town Council adopted the Resolution to accept the Comprehensive Plan and commended MRPDC and the Planning Commission and staff for their dedication and hard work to produce this document. Messrs Hendrick, Clay, Heath, Leaman, Cregger and Dr. Gates voted affirmatively.

LINCOLN THEATRE REQUEST ON HISTORIC TAX ABATEMENT- MS. DAVEENA SEXTON: Daveena Sexton, Executive Director, requested that a 15-year Historic Tax Abatement be granted to the Lincoln Theatre, a 501 c3 non-profit corporation, effective calendar year 2005. She presented members with a schedule of coming events to be held at the Lincoln Theatre. She stated that Virginia Historic Resources has accepted the Lincoln Theatre under their guidelines, effective calendar year 2005. Dr. Gates moved that the Lincoln Theatre be granted Historic Tax Abatement status, effective 2005, based upon acceptance of the Lincoln Theatre under the guidelines of Virginia Historic Resources. Mr. Clay seconded the motion. Council approved the same by a vote of 5 AYES and 1 ABSTENTION (Heath).

LEE STREET PROJECT REPORT: Mr. Hicks reported Ken’s Construction is 75% complete of installation of the Storm Drainage System, which includes 8 or 10 curb inlet structures. Teaters Construction is 85% complete with the water line installation. Mr. Teaters will also replace the sewer line that crosses Lee Street at the intersection of Commerce Street. Road closures continue to be necessary at certain periods. Signal system bids are due 3/3/06.

WATER TREATMENT & PRATER LANE PUMP STATION UPGRADES REPORT: Frizzel Construction Co., Inc. has been issued a “Notice of Award” for the Water Treatment System Upgrade for the contract price of $1,788,700, signed by Mr. Clark. Mr. Jeff Spickard informed Town Council that the contractor has returned their contract document. The loan closing date is anticipated to be mid-March 2006, with a contract length of one (1) year. Mr. Clark stated that the cost of the project will be billed monthly and funds will be available on a reimbursement basis only. VRA is considered the “bond holder”. This would prove to be a hardship on the Town to “front” such a large sum of money. Mr. Spickard noted that MRPDC and the Tobacco Fund have funding that could be of some assistance with the payments until the reimbursements can be secured.

REPAIRS TO 144 W. MAIN STREET-FORMER POLICE DEPARTMENT: Mr. Clark stated that Midway Construction was the low-bidder ($6,800 for the roof and $3,000 for the sides) to re-roof the property at 144 W. Main Street. Mr. Clark requested a Certificate of Insurance and letter to guarantee the work for one (1) year. The contractor was to perform the work during the month of January. There was no signed contract. Mr. Clark stated that he has tried repeatedly to contact Midway Construction but has had no response. A second bidder, Jimmy Ball of Meadowview, bid $11,125 for the roof only. Most recently, a contractor contacted Mr. Clark with a price of $11,805 for the roof and sides. Town Attorney Mark Fenyk stated that as the last price was not a part of the initial bid, it could not be consider. The bid must go to the second original bidder, Jimmy Ball, or be re-bid. Mr. Cregger moved that the project be re-bid as an entire package, roof and sides. Dr. Gates seconded the motion. Council approved the motion by a vote of 6 AYES and 0 NOES. Mr. Clark will notify Midway Construction of Council’s decision to re-bid the project.

PRATER LANE RAILROAD CROSSING CLOSURE: Mr. Hicks noted that this project appears to be moving again.

ACCOUNTS: Upon motion of Dr. Gates, seconded by Mr. Hendrick, and vote of 6AYES and 0 NOES, the accounts were approved for payment in the amount of $1,006,178.95. Messrs Hendrick, Leaman, Cregger, Heath, Clay and Dr. Gates voted affirmatively.

INVESTMENTS: Upon motion, duly seconded and vote of 6 AYES and 0 NOES, the Investment Report was accepted as presented. Messrs Hendrick, Clay, Cregger, Heath, Leaman and Dr. Gates voted affirmatively.

COMMUNITY VISIONING SESSION CONDUCTED 2/16/06: Mr. Heath reported that the meeting was well-attended. The main focus was on the lack of parking. Other issues addressed were tourism, housing, and retention of our youth. Grant applications to assist with the cost of developing parking were discussed. Other remedies to the parking problem included requesting the merchants to submit a monthly fee for parking development. Mayor Helms added that the County Administrator, Planning Director and three (3) members of the Board of Supervisors were also present and are willing to work with the Town on this matter. Mr. Cregger moved that the Building and Grounds Committee, Mr. Heath, Mr. Clark and Mayor Helms meet with Appalachian Power officials to discuss the possible donation of their property to the Town. Mr. Leaman seconded the motion. Council approved the motion by a vote of 6 AYES and 0 NOES.

PUBLIC HEARINGS SET FOR CDBG-COMMUNITY VISIONING: Upon motion of Mr. Heath a public hearing was scheduled for March 6, 2006 to discuss CDBG allowed uses for funding. Mr. Heath further moved that a second public hearing be scheduled on March 20, 2006 to consider specific projects under the CDBG guidelines. Mr. Clay seconded the motions. Council approved the same by a vote of 6 AYES and 0 NOES.

EQUIPMENT-FRONT END LOADER BIDS: Mr. Clark reported that $85,000 was budgeted for the purchase of a front end loader. The loader was to be paid for by a transfer from the Sewer Escrow Fund. As discussed at the 2/6/06 Town Council Meeting, $30,000 (with $30,000 to be budgeted in 2006-07) was budged for a dump truck this fiscal year. Town staff had determined that the budgeted amount for the loader would fall considerably short of that needed to purchase the equipment. Therefore, it was decided that a new motor would be installed in the dump truck at a cost of $4,000 and that the savings be used toward the purchase of a much needed loader.

RFP’s were prepared by the Town for a loader that best meets the Town’s needs. Two bids were received on February 15, 2006. Carter Machinery of Abingdon submitted a bid of $102,236 (Caterpillar) and Contractor’s Machinery of Johnson City, TN’s bid was $106.104 (Case). The apparent low-bidder was Carter Machinery. However, upon review of the specifications provided by the Town, the low bidder did not meet these in several (19) areas. Purchasing Agent B. J. Hamm has requested that the Equipment Committee review these bids to determine which, if either, machine to purchase. Upon motion of Mr. Heath, seconded by Dr. Gates and vote of 6 AYES and 0 NOES, This matter was referred to the Equipment Committee for review and recommendation.

ENTERPRISE ZONE-NOTICE OF APPROVAL OF AMENDMENT TO EXPAND EZ: Notice has been received from the Department of Housing and Community Development Director William C. Shelton that the proposed amendment to allow for a boundary addition in Smyth County (property in the Town of Marion) has been accepted. Newly incorporated enterprise zone businesses and investors may qualify for program incentives beginning with the 2005 year.

STREET LIGHT REPLACEMENT UPDATE: The first 25 lights have been replaced. These were located on S. Commerce Street, Henry Street, Leslie Street, E. & W. Coyner Avenue, Scott Street, Sprinkle Avenue, Louise Avenue and Locust Street. The process to upgrade the lighting system continues.

BUILDING AND GROUNDS COMMITTEE-PROPOSAL FOR HAPPY’S RESTAURANT: Only one formal response, not detailed, was received with regard to the Town’s RFP for the rent/lease of the Happy’s Building located at the corner of Chilhowie Street and North Main Street. The responder had not specified what she wants the Town to provide and what she will provide. A fax was received, this date, with estimates of what Ms. Henderson expects the renovations to cost and a request to perform the upgrade with an agreement of no rent for the first year. The Building and Grounds Committee is considering four options for the property: 1) rent the restaurant to the respondent; 2) sell the building; 3) advertise and rent to a commercial venture or 4) demolish the building. Upon motion of Mr. Cregger, seconded by Dr. Gates and vote of 6 AYES and 0 NOES, this item was referred to the Building & Grounds Committee for study and recommendation.

WATER COMMITTEE-SECOND WATER TANK ON WILLIAMS ROAD: Mr. Hendrick stated that there is a renewed interest in installing a second water tank on Williams Road. The second tank would serve eight (8) more customers. However, the Town must notify Smyth County that it (the Town) is considering providing the water to these County customers.

WATER CONTRACT WITH SMYTH COUNTY: Mr. Hendrick stated that as the negotiations with Smyth County are at an impasse, since November 21, 2005. The Committee recommends for the Town to make an offer to change the rate from $4.59 per 1,000 gallons to $4.35 per 1,000 gallons. The Town Water Committee has been unable to get the County Water Committee to meet to discuss the contract. Dr. Gates stated that the County’s main concern was the minimum. He did not think that the reduction in the rate will make any difference with the County. The proposed contract sets the minimum at 3.5 million gallons. Mr. Hendrick moved that the Town propose a reduction in the current rate for sale of water to Smyth County from $4.59 to $4.35. The motion was seconded by Mr. Heath. Discussion ensued. The motion was defeated by a vote of 1 AYE (Heath) and 5 NOES (Hendrick, Clay, Cregger, Leaman, Dr. Gates).

Mayor Helms noted that the only member of the Board of Supervisors that has discussed this matter with him was Todd Dishner.

It was noted that the early contract renewal was initiated by Smyth County as they requested a 40 year commitment from the Town for the purpose of securing funding. The Town agreed to this request but did ask for an adjustment to the minimum purchase. One of the County projects is East Hungry Mother Drive. These citizens are in dire need of water.

TREE BOARD: Mr. Hendrick recommended the following appointments for the Tree Board:
1) Ken Heath to fill the unexpired term of Ann Snider (expiration 6/30/07)
2) Reappointment of Shirley Blackwell, Rita Copenhaver and Mel Leaman
(Term July 1, 2005-June 30, 2008) 3) Appointment of Tom Tibbs (New member term July 1, 2005 – June 30, 2008)
Upon motion of Mr. Hendrick, seconded by Mr. Clay and vote of 5 AYES and 1 ABSTENTION (Heath), Council approved these appointments.

ARBOR DAY: Arbor Day will be held on April 28, 2006 in the vicinity of Royal Oak Cemetery off of Highland Drive. An oak tree will be planted in the area in memory of Ann Snider. The Town will approve the location of the tree.

REPORT ON DILAPIDATED BUILDINGS- TOWN ATTORNEY:
1) Thompson Trailer on S. Church St.; Funk Property on Sprinkle Avenue; and Overbay Property on S. Church Street- According to the Town Attorney and Chief of Police, these property owners have been advised of violations in the Zoning Ordinance and granted ample time to remedy the situation. In one case an extension was granted and that date has also expired. Warrants have been secured for these property owners as they have not complied with the Town Ordinance with regard to dilapidated property.
2) McClanahan Property on Orange Street- Town Attorney Fenyk advised that names and addresses of the heirs have been provided for official notification of violation.

DONATION OF PROPERTY TO THE TOWN OF MARION FROM THE COMMONWEALTH OF VIRGINIA ALONG ROUTE 16/COMMERCE STREET AT EXIT 45: Mr. Heath suggested that the Town secure official documentation that the property (approximately 5 acres) will be donated to the Town.

VDOT – REVENUE SHARING: Mr. Clark stated that the Street Light Replacement Program will be covered under the VDOT – Revenue Sharing (50-50) Plan. Mr. Hicks added that some paving could also be included under the program. A draft agreement from VDOT has been received by the Town.

CROSSWALK LIGHTS COMPLAINT: It was reported that the crosswalk lights at Chestnut and Main Streets and Church and Main Streets are working intermittently. Town staff will investigate this problem.

LIFETIME WELLNESS CENTER – NATIONAL WALKING CHALLENGE: The Lifetime Wellness Center has challenged the Town to individuals walking 70,000 steps in 7 days. Participants will wear a pedometer. Upon motion of Mr. Heath, seconded by Mr. Clay, and vote of 6 AYES and 0 NOES, Town Council accepted the challenge.

SMYTH NET: Mr. Heath reported that Michael Perdue has expressed an intention to expand his business and has been developing his broad-band internet system. He requested a low interest loan of $15,000 under the small business program which funds were secured from Mount Rogers Planning District Commission and the Town of Marion. Upon motion of Mr. Clay, seconded by Dr. Gates and vote of 5 AYES and 1 ABSTENTION (Heath), this matter was referred to the Finance Committee.

NIMS TESTING: Mr. Hendrick successfully completed the National Incident Management System test on 2/21/06.

NEW PARKING SPACE UTILIZED: Mr. Cregger reported that the newly created parking spaces on Cherry Street are being utilized.

LEGISLATIVE DAY: Mayor Helms stated that several Town representatives attended the meeting. He felt that the trip was very worth-while.

SEWER METER REFUND: Mr. Clark expressed the Town’s appreciation to Mr. Fenyk for securing a refund on the mal-functioning sewer meter. This meter was returned over one year ago and Mr. Fenyk was successful in obtaining a refund of the Town money, less restock fee.

INSTALLATION OF GATE ON WATER MILL ROAD-TOWN ATTORNEY: Mr. Fenyk reported that he is still waiting for the Wassum’s attorney, Mr. Graham, to respond to the Town’s request that all Town staff be allowed to use the road.

HUNGRY MOTHER SEWER METER: The Hungry Mother Sewer Meter and Manhole have been ordered at a cost of $3,538.50 for the meter and manhole costs of $11,595. Town Council budgeted $20,000 this project. Due to the location of the meter, the estimated installed cost will be such that it will exceed the budget amount. Holston Hills Country Club Manager Jay Watson has granted the Town permission to access their property during the installation process.

DUMP CLOSURE: Mr. Hicks will prepare a report on the dump closure procedure for presentation at the March 6 meeting.

CLOSED SESSION: Pursuant to Code of Virginia, as Amended, Section 2.2-3711 (3) and upon motion of Mr. Hendrick, seconded by Mr. Heath, and vote of 6 AYES and 0 NOES, Town Council entered into Closed Session to discuss real estate matter. Mr. Hendrick moved that Town Council return to Open Session and that it be known that only those matters legally exempted from Open Session and identified in the motion were discussed during the Closed session. Mr. Heath seconded the motion. Council approved the motion by a vote of 6 AYES and 0 NOES. Messrs Hendrick, Heath, Cregger, Leaman, Clay and Dr. Gates voted affirmatively.

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