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

VISITORS: Dave Fields, Jeff Spickard, Joe Ellis

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. Hendrick and vote of 7 AYES and 0 NOES, the minutes of the meeting held on 8/7/06 were approved as written and distributed. Messrs Hendrick, Leaman, Warren, Heath, Clay, Dr. Gates, and Mrs. Jennings voted affirmatively.

NOTICE OF AWARD ON TOWN STREET GRANT-TOWN MANAGER: Mr. Clark advised that the Town has signed the agreement with the Virginia Department of Health for grant funds in the amount of $49,000 for the Town Street Water Line. It is anticipated that the construction will begin by November 1, 2006. The Town is currently soliciting proposals for an engineering firm to design the project. The line to be replaced is between Commerce Street and South Church Street (approximately 1,150 feet). Bids are due August 31, 2006.

PLANNING GRANT SITUATION FOR HOUSING PRODUCTION ON MILLER AVENUE AND HOUSING REHABILITATION ON SPRUCE STREET, PEARL AVENUE AND MATSON DRIVE AREA DHCD FUNDING: Mr. Clark reported that the proposed Planning Grants will provide needs assessments for LMI Housing Rehabilitation in the Matson Drive, Spruce Street and Pearl Avenue area and the construction of nine (9) single family, owner occupied, houses the Marion Housing Authority is proposing to build across from their offices on Miller Avenue. Mr. Clark advised that the Planning Grant applications must be submitted by September 15, 2006. The full application is due in March 2007. Mr. Clark noted that DHCD funding has been reduced 50%. A public meeting, concerning this project, will be held August 29, 2006 at 5 p.m.

RECOMMENDATION FROM ENGINEER ON BASIN AT WATER TREATMENT PLANT-JEFF SPICKARD: Mr. Spickard stated that he and Mr. Hicks met with the contractor and his materials supplier concerning the longevity of repairs on a section of concrete used for the basin at the Water Treatment Plant. Mr. Spickard informed Council that it is his opinion that the product has been extensively used in water tank projects and should perform well for the Town. The contractor has agreed to provide an extended warranty for four (4) years in addition to the established one (1) year warranty. He will also post a $5,000 bond for that five (5) year period. Dr. Gates moved that the Town accept the proposal for the extended four (4) year warranty and $5,000 bond agreement with the contractor. Mrs. Jennings seconded the motion. Council approved the same by a vote of 7 AYES and 0 NOES. Messrs Hendrick, Leaman, Clay, Warren, Heath, Dr. Gates and Mrs. Jennings voted affirmatively.

WATER TREATMENT PLANT LOADING DOCK: Mr. Spickard advised that an estimate of $8,296 has been determined for the proposed change order for the loading dock. Upon motion of Dr. Gates, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, this item was referred to the Building Committee for study and report.

WATER TREATMENT PLANT-UNDERGROUND FUEL TANKS: Mr. Spickard reported that testing at the Water Treatment Plant has produced signs of petroleum in the ground. It is suspected that a heating fuel storage tank may be leaking. This matter was referred to the Building Committee for study and report.

ACCOUNTS: Mrs. Jennings moved that the accounts be paid in the amount of $1,046,898.84. The motion was seconded by Mr. Clay and carried by a vote of 7AYES and 0 NOES. Messrs Hendrick, Leaman, Heath, Clay, Warren, Dr. Gates and Mrs. Jennings voted affirmatively.

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

REPORT ON LEE STREET PROJECT: Mr. Hicks reported that the bridge parts were set on August 8. The contractor is now forming and pouring all wing walls.

PROPOSED PAVING SCHEDULE: Mr. Hendrick reported that a paving and milling schedule for 2006 has been submitted to Town Council. The cost of paving is estimated at $349,230 and milling at $141,545 for a total of $490,775. This amount is in excess of budgeted and grant funds proposed for paving. It was noted that the Town has applied and been granted matching Revenue Sharing Funds in the amount of $100,000. However, Mr. Clark advised that these funds would not be available until spring 2007, at the earliest. Upon motion of Dr. Gates, seconded by Mrs. Jennings and vote of 7 AYES and 0 NOES, the proposed listing was referred to the Street Committee to be prioritized for Fall Paving in the amount of $100,000. Dr. Gates moved that the Street Committee be given power to act to expedite the bid process. Mr. Warren seconded the motion. Council approved the same unanimously.

CABLE TV SITUATION: As of July 31, 2006 Comcast Cable System will now be providing service to the Marion area. Appropriate bonds, certificates of insurance, etc. will be forthcoming from Comcast. Mr. Joe Ellis stated that he had requested that the previous and recent provider expand business lines but has not been responsive to business needs. He feels that this is a most important area to address with the new TV Cable provider. Mr. Clay asked if information has been received concerning the new franchise regulations. Mr. Fenyk stated that he has received no such information.

RECOMMENDATION FOR REAPPOINTMENT TO BOARD OF ZONING APPEALS: Mr. Hicks advised that Dr. Henderson Graham’s term will end as of 9/13/06. He has been contacted and agreed to serve. Upon motion of Mr. Clay, seconded by Mr. Heath, and vote of 7 AYES and 0 NOES, Marion Town Council supports the reappointment of Dr. Henderson P. Graham to the Board of Zoning Appeals and hereby authorized Mayor Helms to sign documents to this effect as prepared for the Circuit Court appointment by Mr. Fenyk.

TRANSFER OF FUNDS FOR TOURISM: Mr. Joe Ellis was in attendance to address the release of two (2) years of funds remitted to the Chamber of Commerce by the Town of Marion for Tourism use. The Chamber appeared at the 8/7/06 Town Council meeting to request permission to transfer the funds to the Tourism Authority. The Town had concerns about transferring funds until the Tourism Authority is established. Mr. Ellis stated that the organization is in place and is a legal entity registered with the Commonwealth. The Tourism Authority has applied for IRS designation. He noted that IRS designation is important for eligibility to receive grant funding. Mr. Ellis advised that the funds are needed to open the Bonham House as a tourist location. He stated that Smyth County, Chilhowie and Saltville have authorized release of their funds in the amount of $60,000. He expects to receive $100,000 from Tobacco Funds. Discussion ensued.

Dr. Gates stated that it was understood that the Bonham House was going to be the Smyth County Chamber. He added that the Town Attorney advised Town Council not to release funds until the Authority is set up.

Mr. Heath moved that the motion made at the 8/7/06 meeting, which slated the Town Council’s issues with approval, be rescinded. Mrs. Jennings seconded the motion. Council approved the same unanimously. The funds were budgeted in the 2004-2005 and 2005-2006 fiscal years and remitted to the Chamber of Commerce earmarked for tourism. The funds distributed to the Chamber of Commerce are under their control.

OKTOBER FEST: Dave Fields, President of the Marion Downtown Revitalization Association, requested permission to hold an Oktober Festival event throughout downtown on October 12 -15. The Festival would include pumpkin carving, assorted food vendors, various kids’ games and a live concert/street dance on the Town Parking Lot on Friday night from 6pm-11 pm. They requested that Town Street be closed from Church Street to Commerce Street and South Chestnut Street be closed from Main Street to Cherry Street. The MDRA further requested the Town’s permission to sell beer at the festival. Brian Edwards with the Virginia Department of Alcoholic Beverages has approved a plan to “rope off” the parking lot for the beer sales and consumption area, pending the Town’s approval. Mr. Fields added that the MDRA has insurance in place to cover this event.

Dr. Gates moved that if beer and wine can be sold legally in the Town parking lot area, it be approved by Town Council. Mrs. Jennings seconded the motion. Town Council approved by a vote of 6 AYES and 1 ABSTENTION (Heath).

Mr. Hendrick moved that the Streets be closed as requested and coordinated with the Marion Police Department. Mrs. Jennings seconded the motion. Town Council approved by a vote of 6 AYES and 1 ABSTENTION (Heath).

REPORT FROM FINANCE COMMITTEE ON MRHA PAYMENTS IN LIEU OF TAXES: A letter from Charles Harrington, Executive Director of the Marion Housing Authority, stated that the payment in lieu of taxes has been miscalculated for several years. According to Harrington, the Housing Authority is responsible to pay the lesser of assessed value at its current rate or the rental income less utilities at 10%. The Town is legally bound by the statute of limitation of 5 years. The Housing Authority requests that overpayment be credited from the 2005-2006 fiscal year until the credit is used up. Upon motion of Dr. Gates, seconded by Mr. Leaman and voted of 7 AYES and 0 NOES, the latest assessment will be computed and amount of credit will be determined and applied at the $0.15 rate in future fiscal years until the credit is satisfied.

It was noted that the 15% increase in garbage collection fees was inadvertently omitted in 2005 and Mr. Harrington has agreed that this increase be applied.

REPORT FROM ORDINANCE COMMITTEE ON WATER TANK AT DEPARTMENT OF CORRECTIONS: Upon motion of Mr. Clay, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, this item was continued.

STREET COMMITTEE – REQUEST TO CLOSE YEW STREET: Upon motion of Mr. Hendrick, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, a public hearing was scheduled for September 18, 2006 at 7 pm to consider this request.

PATRIOT’S DAY: Mr. Heath informed Town Council that plans are being developed for the Annual Patriot’s Day Observance on September 11, at 7 pm on the Court House Lawn. Members of Emergency Services (Fire & Rescue), Veterans, Service Personnel, Police will be honored guests. Senator Phil Puckett will be the keynote speaker. Other speakers include Mike Stevens and Dennis Price. Chief Roberts will handle the closure of Main Street during the Patriot’s Day Observance Program.

AUTHOR AT HOTEL: Mr. Heath informed Town Council that noted author Sharyn McCrumb will be signing books on Friday, August 25, from 2 until 4 pm at the General Francis Marion Hotel.

LIVE DOWNTOWN RADIO SHOW: Mr. Heath informed Town Council that WZVA is now broadcasting live form Macado’s each weekday from noon until 1. Host Bill James is featuring a different community event or group each day Monday through Thursday, and Friday is “Open Mic” day, where anyone can stop by and share their thoughts on a variety of issues. Mr. Heath encouraged Council Members to stop by and participate.

LABOR DAY WEEKEND: Mr. Heath reminded Town Council that the Plywood Boat Derby will be held at Hungry Mother State Park. Several Town departments participate in this event.

Also, the Shuck ‘N Cluck will be held on September 2, 2006 at 6 pm at the Beach at Hungry Mother State Park. The cost for dinner and beach party is $25. A charge of $5 will be charged for admittance to the Beach Party only.

STREETS-DANGEROUS CROSSWALKS: Smyth County News Reporter/Photographer Dan Kegley observed a sign in Charlottesville that may increase awareness at the Town’s crosswalks. Mr. Clark was asked to investigate the cost of the flexible sign.

LINCOLN THEATRE: Mrs. Jennings reported that the recent show starring Eddie Miles as Elvis was most entertaining. He will be back on December 1.

LETTERS OF APPRECIATION: Mayor Helms stated that a most complimentary letter was received from Gary and Bonita Frazier and her mother concerning the cleanliness of the Town. It was most appreciated.

Ms. Evelyn Lawrence’s sister, Ruby Thompson Peoples, expressed her appreciation for the Town’s designation of Evelyn Lawerence Day by writing a poem and sending it to the Town.

SHERWOOD ANDERSON FESTIVAL: The Sherwood Anderson Festival is on track.

MT. ZION TEMPLE REQUEST TO CLOSE IRON STREET FOR A NEIGHBORHOOD PARTY: Police Chief Michael Roberts will work with the Mt. Zion Temple members on this project.

CHANGE OF TOWN COUNCIL MEETING: Mayor Helms directed that due to Labor Day falling on the regular meeting date, our Town Council Meeting will be conducted on September 5, 2006 at 7 pm.

Pursuant to Code of Virginia, as amended Section 2.2-3711 (1) (7) and upon motion of Mr. Hendrick that Town Council enter into Closed Session for the purpose of discussing personnel matters and possible litigation. Mr. Heath seconded the motion. Council approved the same unanimously. Upon motion of Mr. Hendrick, seconded by Mrs. Jennings and vote of 7 AYES and 0 NOES, Town Council returned to Open Session and stated that only those matters legally exempted from Open Session and identified in the motion were discussed during the Closed Session. Messrs Hendrick, Heath, Clay, Leaman, Warren, Dr. Gates and Mrs. Jennings voted affirmatively.

REPORT FROM PERSONNEL COMMITTEE ON MILITARY LEAVE: Mr. Leaman moved that the Town of Marion Personnel Manual, Section 5.12, be amended to allow not more than 15 days of paid leave for military training. The motion was seconded by Mr. Heath and carried unanimously. Messrs Hendrick, Warren, Heath, Leaman, Clay, Dr. Gates and Mrs. Jennings voted affirmatively.

REPORT FROM PERSONNEL COMMITTEE ON LANGUAGE CLARIFICATION IN PERSONNEL POLICY MANUAL WITH REGARD TO PROBATIONARY PERIOD FOR EMPLOYEES: Upon motion of Mr. Leaman, seconded by Mrs. Jennings and vote of 7 AYES and 0 NOES, Town Council amended Section 4.05 of the Personnel Manual (Probationary Period) to clarify the definition of newly hired and promoted employees and the process of probation as follows (4th paragraph):

…At the end of the six (6) month period, the department head shall again assess the performance of the employee during probation. As a part of the assessment, the department head shall determine:

Whether the employee’s work and conduct meets established standards;
Whether the employee should be retained in the position;
Whether the employee’s probationary period shall be extended;
Whether the newly hired employee should be given a merit salary increase;
Whether the newly hired employee should be discharged from employment.
Whether the promoted employee should be allowed to return to the lower classification job type previously held or discharged from employment.

Newly hired employee is an employee who has not been an employee of the Town within a one (1) year period.

Promoted employee is an employee who has been an employee of the Town just prior to beginning in the higher classification job type.

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