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 June 18, 2007 at 7:00 p.m.

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

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

VISITORS: Jeff Spickard

MINUTES: Mr. Hendrick corrected the minutes to read that the Town of Marion will host the entertainment for the Smyth County Celebration on June 27. Upon motion of Mr. Clay, seconded by Mrs. Jennings, and vote of 6 AYES and 1 ABSTENTION (Heath), the minutes of the meeting held June 4, 2007 were approved as corrected.

Messrs Hendrick, Leaman, Warren, Clay, Dr. Gates and Mrs. Jennings voted affirmatively.

APPOINTMENT OF MARION PLANNING COMMISSION MEMBER: Upon motion of Mr. Leaman, seconded by Mr. Heath, and vote of 7 AYES and 0 NOES, Shirley Spencer was appointed to serve on the Marion Planning Commission for a four (4) year term to expire 06/18/2011.

REIMBURSEMENT TO TOWN FOR RIVERWALK TEA-21 PROJECT: Mr. Clark advised that $92,000 has been received as reimbursement from the Virginia Department of Transportation for the Riverwalk TEA-21 project. These funds will be deposited into the Sewer Escrow Account to use for the South Main Street Sewer Line Project.

UPDATE ON WASHINGTON AVENUE WATER PROJECT AND CHEMICAL STORAGE BUILDING AT WATER TREATMENT PLANT: Mr. Clark advised that Toney Construction of Lynchburg will be the contractor on this job. Smyth County has formally agreed to participate in this project and a change order has been issued to increase the size of the pipe under the interstate bridge to a twelve (12) inch encasement with a six (6) inch water line for a distance of approximately 360 feet. The original proposed cost of the project was $80,900. With the change order, the new total cost of the project is $110,650. Smyth County has agreed to pay the additional cost.

ARIS Construction of Glade Spring, has begun work on the footers of the Bulk Storage Unit at the Water Treatment Plant. A chemical tank for the building will be ordered in the near future.

WILLIAMS ROAD WATER TANK PROJECT: Mr. Hicks reported that the tank is to be delivered on-site this week with installation by the Town crew.

UPDATE ON SOUTH MAIN STREET SEWER REPLACEMENT PROJECT: Mr. Hicks advised that the contractor is finally out of the rock and is moving much quicker. He anticipates the line to be laid and connections completed by June 22.

ACCOUNTS: Upon motion of Mr. Clay, seconded by Mrs. Jennings, and vote of 7 AYES and 0 NOES, the accounts were approved for payment in the amount of $511,796.43. Messrs Hendrick, Leaman, Heath, Clay, Warren, Dr. Gates and Mrs. Jennings voted affirmatively.

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

RECOMMENDATION FROM COMMITTEE ON CONSULTANT FOR MILLER AVENUE HOUSING PRODUCTION: The Department of Housing and Community Development (DHCD) awarded the Town a $25,000 Planning Grant for housing production on Miller Avenue. DHCD also approved $20,000 for a study of housing rehabilitation in the Pearl Avenue, Spruce Street and Matson Drive areas.

The Town solicited proposals for an Engineering Firm thru Mt. Rogers PDC for the Housing Production Project on Miller Avenue. A Committee consisting of David Barrett, Elizabeth Iskra, David Helms, John Clark and Charles Harrington reviewed the proposals. Of the four (4) firms, two (2) were chosen for interviews. They were Mattern and Craig of Roanoke and Kingsport and LMW of Roanoke. The Committee recommended Mattern and Craig to perform engineering services for the Miller Avenue project. Upon motion of Mr. Clay, seconded by Mrs. Jennings, and vote of 7 AYES and 0 NOES, the firm of Mattern and Craig was selected as the engineers for this project. Messrs Hendrick, Heath, Clay, Warren, Leaman, Dr. Gates and Mrs. Jennings voted affirmatively.

GRANT APPLICATION TO EXPAND HISTORIC DISTRICT BOUNDARIES: Mr. Heath reported that Marion Downtown! has submitted an application for grant funds from the Virginia Department of Historic Resources to extend the historic boundaries. The extended boundaries will pick up 297 additional structures to be considered for this designation. The designation will target commercial and governmental structures. Property owners would be eligible for tax credits and additional incentives, which would encourage rehabilitation and preservation of these structures.

APPOINTMENT TO DISTRICT THREE BOARD: Upon motion of Mr. Clay, seconded by Mrs. Jennings, and vote of 6 AYES and 1 ABSTENTION (Hendrick), Eugene Hendrick was re-appointed to the District III Governmental Cooperative Board. Messrs Heath, Clay, Warren, Leaman, Dr. Gates and Mrs. Jennings voted affirmatively. Upon motion of Mr. Clay, seconded by Mrs. Jennings, and vote of 6 AYES and 1 ABSTENTION (Heath), Mr. Heath was appointed alternate.

WATER TREATMENT PLANT UPGRADE: Mr. Spickard advised that the amount of reserve funds from the project is undetermined. However, no substantial amount is anticipated. He did not feel that there would be a problem with reallocating the funds as needed.

NOTICE OF COMPLETION OF CONVERSION OF EAST SIDE STREET LIGHTS BY APPALACHIAN POWER COMPANY: A. R. Jackson, representing Appalachian Power Company, has advised that Phase I of the upgrade of street lights on the east side of Town has been completed. 140 lights remain scheduled for upgrade during fiscal year 2007-2008. Upon motion of Mrs. Jennings, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, this matter was referred to the Street Light Committee.

REPORT FROM FINANCE COMMITTEE ON ON-LINE AND CREDIT PAYMENTS: Dr. Gates reported that he and Deputy Clerk Susan Clark discussed this matter and based upon the expense of computer programming to receive on line payments ($30,000) and that banks now offer on-line banking for payments, it was recommended that the Town not pursue this matter further. Upon motion of Dr. Gates, seconded by Mr. Leaman, and vote of 7 AYES and 0 NOES, this item was dropped from the agenda.

REPORT FROM FIRE COMMITTEE ON CELL PHONE REIMBURSEMENT: A request for reimbursement of basic cell phone service has been received from the Marion Volunteer Fire Department for four (4) of its officers, the Chief, Deputy Chief, President and Secretary, in the amount of $468 each. Chief Jim May stated in the request that since the phones are also used for personal benefit, the department only requests basic service reimbursement. Fire Committee Chairman Mark Warren recommended payment as requested. He noted that the Town has issued cell phones to the Police Officers and other essential personnel. He further commented that often times the officers of the MVFD conduct business for the Department on their own time and during the day. The phones are not only a communication tool for fire events. Mrs. Jennings expressed reservation that this would present a precedence to give cell phones to all members. She expressed her sincere appreciation to the Fire Department and Fire Fighters for their valuable service to the community. It was noted that the Police Department and essential Town staff are employees of the Town. Mr. Warren stated that when conducting business and fighting fires, MVFD personnel are unpaid employees of the Town. Dr. Gates also expressed his appreciation of the Marion Volunteer Fire Department. He felt that for the Town to pay the basic fee of $39 per month to designated MVFD personnel would be a “perk” for the officers and may encourage other firefighters to move into those leadership roles. He also added that the request is within the Fire Department’s budget for communication. Mr. Clark noted that he remembers this matter being discussed during last year’s budget preparation and additional funds were added to communication to cover this expense. Following a lengthy discussion, Mr. Warren moved that the Town reimburse the designated four (4) officers of the MVFD $39 per month, each, for basic cell phone service on the condition that the MVFD present the Town with a written policy to designate which officers will be reimbursed and as long as it is included in the budget. The motion was seconded by Dr. Gates and was approved by Town Council by a vote of 4 AYES, 1 NOE (Jennings), 2 ABSTENTIONS (Heath, Clay).

REPORT FROM REAL ESTATE COMMITTEE ON AEP EASEMENT AT WATER MILL ROAD: A request had been received from Appalachian Power Company that the Town consider granting a right of way and easement to Seth Martin for the purpose of extending power service to Mr. Martin’s property. Upon motion of Mr. Warren, seconded by Mrs. Jennings, and vote of 7 AYES and 0 NOES, Town Council voted to grant the right of way and easement, with the provision that Appalachian Power Company would install a dusk-to-dawn light at a designated location near the gate to the Water Treatment Plant. Messrs Hendrick, Heath, Clay, Leaman, Warren, Dr. Gates and Mrs. Jennings voted affirmatively.

STREET LIGHT REQUEST ON LINCOLN AVENUE: Council asked Mr. Clark for any information concerning this request for street light from Mrs. Alice Winebarger. Mr. Clark responded that he has discussed the situation with Appalachian Power Company and a letter will be mailed to Mrs. Winebarger concerning the street light.

REPORT FROM INSURANCE COMMITTEE ON NO FAULT COVERAGE: Mr. Clark advised that he had discussed some limiting provision in the Town’s “No Fault Coverage”. He was informed by Tim Ailsworth of VML that it is too late to approve any policy changes for this year, but his comments will be considered and some will be incorporated into the policy next year.

REPORT FROM ORDINANCE COMMITTEE ON TELEPHONE AND TV FRANCHISE RENEWALS: Upon motion of Mr. Clay, seconded by Mr. Heath and vote of 7 AYES and 0 NOES, these items were continued for further study.

SPECIAL COMMITTEE ON SIRENS IN CUPOLA AT MUNICIPAL BUILDING AND MARION MIDDLE SCHOOL: Upon motion of Mr. Heath, seconded by Mr. Leaman and vote of 7 AYES and 0 NOES, this item was continued for further study.

SCHEDULE OF SUMMER EVENTS: Mr. Heath presented a Schedule of Local Events for Marion and Smyth County. They include Marion Night of the Smyth County Celebration, Marion’s Hometown Independence Day Celebration, Hungry Mother State Park & Marion Downtown Summer Festival, Motown Downtown!, Patriot’s Day Commemoration, Oktoberfestival!, Alive After 5 Artwalk.

TEA-21 VDOT GRANT FOR STREETSCAPE: Mr. Heath advised that an application has been submitted for these funds. He has been advised that $100,000 is being considered for the Marion Downtown! Streetscape. He will keep the Town Council informed.

SUMMER LUNCHEON: Upon motion of Mr. Heath, seconded by Mr. Clay and vote of 7 AYES and 0 NOES, the Town Council & Staff Luncheon will be held on Friday, July 13, 2007 at the Riverbend Park at Noon.

DISTRICT III BUILDING EXPANSION: Mr. Hendrick reported that the ground breaking ceremony for the addition to the District III building will be conducted on July 17, 2007 at 10 am. During this project, the main office for the Transit will relocate to S. Main Street at the former R. L. Williams Company.

DISTRICT III VEHICLE SALES: Mindy Dyer, Gene Hendrick, Cecil Hicks, Larry Bowman, Mel Leaman, and B. J. Hamm will represent the Town’s interest in bidding on these vehicle sales.

LINCOLN THEATRE BOARD: Mrs. Jennings advised that the Lincoln Theatre Board has recently purchased recording equipment which will be installed and used to record the events at the Theatre. Tobacco Commission funds were granted to the Theatre and were used for this purchase.

TREES-MAIN STREET: Mr. Clay noted that the trees along Main Street are growing at a rapid pace. Mr. Heath advised that in spite of the hot and dry weather conditions, the trees have indeed grown. He further advised that the trees were trimmed last fall and must be trimmed in the fall. However, the branches which may be a nuisance can be trimmed.

REAL ESTATE PURCHASE-FORMER ATMOS BUILDING: Mr. Fenyk advised that the closing is scheduled for next week. The loan has been approved. A letter from the Town stating the Town’s Revenues and Expenditures must be submitted to the Bank of Marion, prior to closure.

RELAY FOR LIFE: Mayor Helms stated that there was a good turnout at this event. He expressed his appreciation to those who supported this important event.

SMYTH COUNTY CELEBRATION/MARION: Mayor Helms reminded Town Council that the Town’s entertainment contribution to this Celebration will be held on Broad Street on the 27^th of June.

TOWN AND COUNTY QUARTERLY MEETING: Mayor Helms announced that the Town and County Quarterly Meeting will be conducted on July 23, 2007 at the Garden Party Café at Main Street Gifts & Eatery. The program will be presented by the Virginia Tourism Association. Music will be provided by Ken Heath.

VML ANNUAL MEETING/WILLIAMSBURG: Mayor Helms requested that Registration forms be submitted to the Town Clerk on or before June 22, 2007. It is imperative that the Town submit an early registration to ensure that we will be in the host hotel. He also noted that the deadline for cancellation, with refund, is September 21. It is essential that a decision be made by this date if they plan to attend.

CLOSURE OF CLERK/FINANCE OFFICE ON JUNE 29, 2007: Ms. Sheets advised that the Clerk/Finance Office will be closed on June 29, 2007 in preparation of the annual audit.

GARBAGE COLLECTION: Garbage collection for July 4^th will be conducted on July 5^th.

WATER COMMITTEE MEETING: The Water Committee will meet on June 20, 2007 at Noon.

JULY 4^TH CELEBRATION: Mr. Heath advised that Z-103 will coordinate the music for this event. He expressed the Town’s appreciation for their participation.

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

____________________________________ ________________________________

Mayor Clerk