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

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

VISITORS: Council Member-Elect Suzanne Jennings, Dr. Kris Gandhi, Barbara DeBord, Dave Fields, Sheila Quattrocchi, Jeff Spickard, Kevin Soos, Dan Kegley.

MINUTES: Upon motion of Mr. Heath, seconded by Mr. Clay and vote of 7 AYES and 0 NOES, the minutes were approved as written and distributed. Messrs Hendrick, Heath, Leaman, Cregger, Clay, Warren and Dr. Gates voted affirmatively.

PUBLIC HEARING 2006-2007 BUDGET: Dr. Gates gave a brief overview of the proposed budget. The 2006-2007 Annual Budget was presented at $7,458,134. The proposed budget included an increase in Real Estate Tax to $0.15 per $100 of assessed value on Real Estate, Downtown Special Tax District and Mobile Homes. No one was present to speak during the Public Hearing. Dr. Gates moved that the Budget for FY 2006-2007 be accepted with the stipulation that those funds allocated for the proposed Tourism Director ($2.00 per capita) is held until details concerning the position are finalized. Mr. Heath seconded the motion. The motion carried by a vote of 6 AYES (Mr. Heath abstained from matters concerning MDRA, only and 1 NOE (Leaman), the Budget for FY 2006-2007 was approved as presented. Messrs Hendrick, Cregger, Clay, Warren, Heath and Dr. Gates voted affirmatively.

UPDATE ON EAST CHILHOWIE STREET/GILMAN STREET CDBG: Mr. Clark reported that the Housing Board met on June 13, 2006 with Mayor Helms, Mr. Leaman, John Campbell, Scott Booth and himself in attendance. Bids for demolition of two houses were approved at 135 East Chilhowie Street and 226 Gilman Street. The empty two story wood house is owned by Mr. Woods next door at 139 East Chilhowie Street. He agreed to have the abandoned house demolished at CDBG expense. The second house is the old abandoned red house on Gilman Street and is owned by the Town. It will be removed using CDBG funds as well. The low bid at 135 Chilhowie Street was $7,450. The low bid at 226 Gilman Street was $5,200.

The Board also approved a bid to replace a roof on a house located at 231 E. Chilhowie Street that was rehabilitated using CDBG funds. The maximum amount of CDBG funding has been used and the roof must be replaced with town funds. Low bid on the roof was $4,775.

The deed for the two lots on East Chilhowie Street were signed and duly executed on June 2, 2006 for transfer to Smyth County Habitat for Humanity.

Mr. Heath inquired about the house that Habitat for Humanity had started on Chilhowie Street. He noted that construction on the property had come to a halt. The house was being constructed for Maria Testerman. Mr. Clark was asked to check on this matter. .

SCHEDULE FREEDOM OF INFORMATION BREAKFAST WITH MARK FENYK: A breakfast was scheduled on July 6, 2006 for an overview on the Freedom of Information Act presented by Town Attorney Mark Fenyk. The meeting will be held at the Pioneer Restaurant at 7 am.

ACCOUNTS: Mr. Clay moved that the Accounts be approved in the amount of $963,878.97. The motion was seconded by Mr. Heath and approved by a vote of 7 AYES and 0 NOES. Messrs Hendrick, Heath, Clay, Cregger, Leaman, Warren and Dr. Gates voted affirmatively.

INVESTMENTS: Upon motion of Mr. Warren, seconded by Mr. Clay and vote of 7 AYES and 0 NOES, the Investment Report was approved as presented. Messrs Hendrick, Heath, Cregger, Warren, Clay, Leaman and Dr. Gates voted affirmatively.

UPDATE ON TOWN STREET WATER GRANT APPLICATION TO HEALTH DEPARTMENT: Mr. Clark reported that the Town is expected to receive funding for the Town Street Water Line from the Virginia Department of Health (VDH). The project will replace 1150 feet of 6 inch water line and will stretch from South Park Street to North Commerce Street. The estimated cost of the project is $49,000. Upon motion of Mr. Warren, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, staff was granted permission to proceed with the bid process.

NOTICE OF OPENING AT WATER TREATMENT PLANT: Upon the resignation of Jerry Richardson at the Water Treatment Plant, the Town has advertised for a Class II Water Treatment Plant Operator. Applications for this position are due by 4:00 p.m. on June 29.

NOTICE OF TOWN/COUNTY QUARTERLY MEETING: The Town / County Quarterly Meeting will be held at the newly refurbished General Francis Marion Hotel at 107 West Main Street in Downtown Marion on June 29th at 6:00 p.m. A program will be presented on the 70th anniversary of the Virginia State Parks. Hungry Mother State Park Manager Christopher Doss and Chief Ranger Glenn Moorer will present the program. Hungry Mother State Park is one of the six original charter State Parks in the Commonwealth of Virginia.

SELECTION OF APPOINTEE TO ARBITRATION BOARD: Mr. Clark informed Town Council that Ed Whitmore, Smyth County Administrator, has been notified, in writing, of the initiation of the process of arbitration as described in Article VII of the Regional Sewer Treatment Plant Inter-Municipal Agreement. Per the terms of the Inter-Municipal Agreement, the Town is to provide Smyth County with the name of the person selected as our arbitrator. Within 20 days of the receipt of the letter, the County shall provide the Town with the name of their arbitrator. Then, these two arbitrators shall appoint a third arbitrator within 15 days. If no third arbitrator can be agreed upon, a third arbitrator shall be appointed by the Smyth County Circuit Court. The arbitration will be on the payment for a sewer meter the town purchased and installed on the Atkins line just east of Johnson Road. There had been no accurate reading of the County sewer usage since April 2000. An invoice in the amount of $20,673 was sent to the County on June 30, 2005.

MEETING ON JULY 4TH FIREWORKS EVENT: Mr. Heath reported that the Fireworks Celebration is scheduled for July 4, 2006 at 6 p.m. The State Fire Marshall has presented the Town with an application and regulations for the display. The size of shells was addressed and an alternate area must be mapped out to execute the fire works. At a meeting of the Fire Marshall, Town staff, shooters, and Marion Volunteer Fire Department, the size of shell was discussed. Also discussed was the location. Those in attendance were concerned that the public is too close to the launching area. After careful consideration, it was determined that the public would not be allowed in the bleacher area but would be required to assemble at the covered seating at the baseball field. The newspaper and TV 3 will assist in communicating the new regulations to the public. These changes are intended for safety only.

REQUEST MEETING OF PERSONNEL COMMITTEE ON AMENDMENT TO PERSONNEL POLICY REGARDING CLASSIFICATION PLAN: Upon motion of Mr. Heath, seconded by Mr. Clay and vote of 7 AYES and 0 NOES, this matter was continued.

SCHEDULE SPECIAL MEETING ON JUNE 30, 2006 TO ADOPT 2006-2007 ANNUAL BUDGET AND CLOSE FISCAL YEAR MATTERS: Upon motion of Mr. Heath, seconded by Mr. Hendrick and vote of 7 AYES and 0 NOES, a Special Meeting to adopt the budget and close fiscal year matters was scheduled for June 30, 2006 at 5:00 p.m.

FINANCE COMMITTEE ON HOUSING AUTHORITY LETTER: Upon motion of Mr. Heath, seconded by Mr. Leaman and vote of 7 AYES and 0 NOES, this matter was continued.

T-21 FUNDING: Mr. Heath asked that Mr. Clark meet with him concerning the possibility of attaining T-21 funds for Broad Street and the end of Main Street.

SCHOOL’S OUT PARTY: The School’s Out party was a good event. Thanks to all who participated in planning and execution.

LUNCHTIME ON THE LAWN: Lunchtime on the Lawn is held each Friday in June at Noon.

ARCHITECTURAL REVIEW: Mr. Heath clarified that the area the Town Council approved for the Architectural Review Board was the Downtown Special Service Tax area. The review did not include the entire Historic District.

ARTS & CRAFTS FESTIVAL: Mr. Heath suggested that the Town and District III (Transit) representatives meet to discuss their providing buses to Hungry Mother State Park prior to next year’s event.

LUNCH & LEARN: A new program called “Lunch & Learn” will be conducted on Wednesday, at the General Francis Marion Hotel at Noon.

BUILDING MAINTENANCE: Mr. Cregger suggested that the Town paint the windows and doors at the property of 144 West Main Street (former Police Station). This request was referred to Building & Grounds.

Mr. Heath also noted that the Municipal Building is also in need of painting and minor repairs. This request was also referred to the Building and Grounds Committee.

STREETS-DANGEROUS INTERSECTION: Mr. Clay reported that the intersection behind the Post Office, Iron and High Streets, is extremely dangerous. Chief Roberts was asked to examine this area and make a recommendation.

DESTINATION IMIGINATION: Mayor Helms reported that the Destination Imagination Team represented the Town of Marion well at the International Competition.

70TH ANNIVERSARY OF THE VIRGINIA STATE PARK SYSTEM: The Virginia State Park System celebrated its 70th Birthday on June 15, 16, 17, 18, 2006. Virginia Director of Parks Joe Elton was in attendance. A re-enactment of the dedication was held at Hungry Mother State Park on Thursday. Mayor Helms portrayed Governor Perry. A joint reception was hosted at the General Francis Marion Hotel by the Kiwanis and Rotary Clubs on Friday in Downtown Marion. Dedication of Camp Burson, named after the first Director of Parks, was conducted on Saturday morning. The Mayor and several Town Council Members attended these events.

APPRECIATION TO BUFORD CREGGER: Mayor Helms, Mr. Clark and the entire Town Council expressed their appreciation to Mr. Cregger for his years of service on the Town Council. Mr. Cregger elected not to seek re-election.

TOURISM DIRECTOR: Dr. Kris Gandhi had presented Mayor Helms with a proposal to fund 20% of the salary of a Tourism Director for one year, to a maximum of $1,000 per month. Mayor Helms expressed the Town’s appreciation for his generous offer. However, the Towns and Smyth County have devised a plan to set aside $2 per capita to fund the position. The plan is not complete and the Town will keep Dr. Gandhi apprised.

HAPPY’S RESTAURANT PURCHASE: Dr. Kris Gandhi reported that he has paid $90,000 of the $108,000 bid for the purchase of the Happy’s Building. He would prefer that closure transactions take place on August 11, 2006. However, if that is not practical, he requested that the closure be conducted the week of July 10, 2006. Mr. Heath moved that the closing take place of the week of July 10, 2006, as per Dr. Gandhi’s request. Mr. Warren seconded the motion. Council approved the motion by a vote of 7 AYES and 0 NOES. Messrs Hendrick, Heath, Clay, Cregger, Warren, Leaman and Dr. Gates voted affirmatively.

REQUEST FOR PURCHASE OF PROPERTY: Dr. Kris Gandhi requested that Town Council consider the lease/sale of Town property surrounding the water tank on Euclid Avenue. Upon motion of Mr. Heath, seconded by Mr. Clay and vote of 7 AYES and 0 NOES, this request was referred to the Building & Grounds Committee.

RELAY FOR LIFE: The Town staff fielded a Relay for Life Team in the Fight Against Cancer. The event was held on June 16 and netted approximately $90,000.

SONG OF THE MOUNTAINS: Joe Ellis informed Town Council that Song of the Mountains recently received a Bronze Award for Programming. He also thanked Town Council for their support of the Lincoln Theatre and for allocating funds for tourism in the Town’s budget.

CLOSED SESSION: Pursuant to Code of Virginia, as amended, Section 2.2-3711 (a-7) and Section 2.2-3711 (a-1) and upon motion of Mr. Hendrick, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, Town Council entered into Closed Session for the purpose of discussing arbitration and personnel issues. Ms. Sheets and Mr. Hicks were excused. 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 unanimously. Town Attorney Mark Fenyk polled the Council. Messrs Hendrick, Cregger, Leaman, Heath, Warren, Clay and Dr. Gates voted affirmatively.

ARBITRATION: Mr. Clark advised that a letter expressing the Town’s intention to seek arbitration in the matter of the purchase and installation of the County Sewer Meter located in Atkins had been mailed to the County Administrator. Council directed that a copy of the letter be hand delivered to the County Administrator on Tuesday, June 20, 2006.

Upon motion, duly seconded and unanimous vote, Town Council directed that the Town Manager and Town Attorney gather information on costs associated to procure an arbitrator and report back to the Council.

PERSONNEL: Mr. Warren moved that the Town Council review the Town Policy to determine what appointed officials shall be required to live within the Town Limits. Dr. Gates seconded the motion. The motion was defeated by a vote of 2 AYES (Heath, Warren) and 5 NOES (Leaman, Gates, Clay, Cregger, Hendrick).

TOWN MANAGER TO LIVE OUTSIDE THE TOWN CORPORATE LIMITS: Mr. Hendrick moved that the Town Council prefers that the Town Manager live within the Corporate Limits but, as it is a unique situation, Town Council would not oppose the Town Manager move to his home place 19 miles away as long as it does not affect his job performance. Mr. Cregger seconded the motion. Council approved the motion by a vote of 6 AYES and 1 NOE (Warren).

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