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 July 21, 2008 at 7:00 p.m.

PRESENT: Mayor David P. Helms; Mel Leaman, Ken Heath, Mark Warren, Bill Weaver, Jane Hale and Suzanne Jennings, Council Members; Town Manager John E. B. Clark, Jr.; Town Engineer/Assistant Town Manager Cecil Hicks; Police Chief Michael Roberts; Police Officer Waleed Murtaza, Purchasing Agent B. J. Hamm and Town Clerk/Director of Finance Dixie Sheets.

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

VISITORS: Jeff Spickard, Joe Ellis, Dave Fields

MINUTES: Upon motion of Mr. Heath, seconded by Mr. Weaver and vote of 6 AYES and 0 NOES, the minutes of the regular Town Council Meeting, conducted on 7/7/08 were approved as written and distributed. Mrs. Jennings, Mrs. Hale, and Messrs Leaman, Warren, Heath, and Weaver voted affirmatively.

INTRODUCTION OF NEW POLICE OFFICER: Chief Roberts introduced new Police Officer Waleed Murtaza. Officer Murtaza will attend the Police Academy beginning at the end of July along with Officers Long and Billings.

DUMP CLOSURE-NOTICE OF DEQ APPROVAL TERMINATING OLD DUMP WATER MONITORING: The Town has been notified by the Department of Environmental Quality that post-closure care monitoring and maintenance may be discontinued at the above referenced facility based on certification and evaluation provided. The Town of Marion is released from the requirements of Solid Waste Managements for the operation and maintenance of the un-permitted facility effective June 30, 2008. The Engineering Department was commended for their work towards this resolution. It was noted that there are several requirements that the Town Engineering Department must adhere to with regard to quarterly inspection and inspection after storm events to check for erosion. Mr. Hicks stated that his Department will comply with the requirements set forth by DEQ.

COMCAST CABLE FRANCHISE: Mr. Leaman stated that the proposed franchise is presented for a seven (7) year period. The renewal includes a $0.35 per customer fee to be used toward the government access channel. These funds will be remitted to the Town, by Comcast, on a quarterly basis. Mr. Clark thanked Mr. Fenyk and Mr. Brian Grogan in the smooth renewal process. Mr. Leaman moved that the Town renew the franchise for Comcast Cable as presented. Mrs. Jennings seconded the motion. Council approved the same by a vote of 5 AYES and 1 ABSTENTION (Heath). Messrs Leaman, Warren, Weaver and Mrs. Hale and Mrs. Jennings voted affirmatively. Mr. Heath noted that the Cable Company is supposed to provide cable to all Town residents. He was informed that this is the case wherever economically feasible.

CONSIDERATION OF INDUSTRIAL WATER RATE: Upon motion of Mr. Heath, seconded by Mrs. Jennings, and vote of 6 AYES and 0 NOES, this item was referred to the Water & Finance Committees.

APPROVAL OF WATER TREATMENT PLANT BOUNDARY BID: Bids to lease Water Treatment Plant pasture were received on July 15, 2008. Three bids were submitted. The high bidder was Jim Burkett and Larry Bowman with a bid of $1,401 per year. Upon motion, duly seconded and vote of 6 AYES and 0 NOES, a 5-year lease for the WTP pasture land was awarded to Jim Burkett and Larry Bowman. Mrs. Jennings, Mrs. Hale and Messrs Leaman, Heath, Warren, Weaver voted affirmatively. Mr. Clark added that the contract, prepared by Mr. Fenyk, includes a requirement for a Certificate of Insurance. Upon receipt of the Certificate of Insurance, the contract will be executed.

REPORT ON PLANS FOR THE 1908 SCHOOL HOUSE STUDY: A meeting on July 9, 2008 was attended by Todd Christensen, Jimmy Wallace, Mark Warren, David Helms, John Clark, Gilda Powers Joe Ellis, Dan Kegley and Ken Heath. Representatives from Smyth County were invited but chose not to attend. Joe Ellis presented a scenario for a prospective use of the school house. He stated that Abingdon has received a $4 million grant for the construction and establishment of “Heartwood”. Heartwood would be similar to Tamarack in West Virginia. Heartwood and ‘Round the Mountain could be tied to an Appalachian School of Music and Art. The old school house could operate as a school again. Local and regional artisans could teach the classes. Some classes could be taught by knowledgeable individuals in the adjoining states. These classes could consist of instrument makings, canning, crafts, baskets and other interesting items. Todd Christiansen, DHCD, was present and very excited about the possibility of saving the school house. Those at the meeting advised that Mr. Christiansen stated that a multi-million dollar funding package could be put together and the project would become a regional effort. According to Mr. Christiansen, Floyd and Marion would be the “bookends” for a regional project, tied to Heartwood.

Mrs. Jennings asked about the fees. Mr. Ellis stated that they would be negotiated with the instructor. She asked about the funding, other than grants. Mr. Ellis stated that funding is available through ARC, CDBG, State legislation, and a 2% loan over 20 years.

Mr. Ellis emphasized the revenue opportunities. He felt that the Appalachian School of Music and Arts would bring tourists and students to Town. They would lodge, shop and eat here. It would bring walking traffic to the Downtown area. There is not enough locals to support Downtown. There is a need to bring in foot traffic that is not local.

Mr. Weaver asked, “Why use an old building?” Mr. Ellis responded that tourism is a benchmark site. Tourists look for unique experiences. This is evident in the Lincoln Theatre. It is unique. There are only three (3) in the U.S. and only one has been renovated.

Mr. Heath added that Galax is very interested in being involved in this project and would be considered if Marion is not interested.

TOBACCO COMMISSION FUNDING: Mr. Ellis and Mr. Dave Fields noted that they attended the Tobacco Commission Meeting today, where funding was announced. Song of the Mountains received $49,000 for additional equipment. $250,000 was awarded to Smyth County for the Groseclose Sewer Project. $4 million was awarded to the Town of Abingdon for the Heartwood Project.

REQUEST FOR SEWER TAP – BYSTEK: Mr. Hicks reported that no response has been received from Smyth County. This item was continued

ACCOUNTS: Mrs. Jennings moved that the accounts be paid in the amount of $372,565.57. Mr. Weaver seconded the motion. Council approved the same by a vote of 6 AYES and 0 NOES. Mrs. Hale, Mrs. Jennings and Messrs Leaman, Warren, Heath, and Weaver voted affirmatively.

INVESTMENTS: Upon motion, duly seconded and vote of 6 AYES and 0 NOES, the Investment Report was approved as distributed.

JOINT PUBLIC HEARING WITH SMYTH COUNTY ON JULY 24, 2008 CONCERNING FORMATION OF A COMMUNITY DEVELOPMENT AUTHORITY (CDA): Mayor Helms stated that this hearing will be conducted at the Smyth County Board of Supervisors Office Building at 121 Bagley Circle. He encouraged all Town Council Members to attend.

NOTICE OF FUNDING OF MARION STREETSCAPE: The Town of Marion has been notified by the Virginia Department of Transportation that $196,000 in Enhancement Funds was approved for Downtown Marion Historic Streetscaping.

RESOLUTION-AFFIRMATION OF AUTHORIZATION TO PICK UP THE EMPLOYEE’S CONTRIBUTION TO VRS FOR THE TOWN OF MARION.

Ms. Sheets explained that the Internal Revenue Service now requires the following affirmation concerning the payment of the employee share (5%) of full-time, salaried employees. Upon motion, duly seconded, and vote of 6 AYES and 0 NOES the following affirmation was approved.

AFFIRMATION OF AUTHORIZATION TO PICK UP THE EMPLOYEE’S CONTRIBUTION TO VRS FOR THE TOWN OF MARION, 55323, UNDER SECTION 414 (h) OF THE INTERNAL REVENUE CODE:

WHEREAS, the TOWN OF MARION provides its employees with tax deferral pursuant to Sub-Section 414 (h) of the Internal Revenue Code with respect to their member contributions to the Virginia Retirement System (referred to as VRS) by picking up member contributions to VRS; and

WHEREAS, VRS keeps track of such picked up member contributions, and treats such contributions as employee contributions for all purposes of VRS;

WHEREAS, the Internal Revenue Service in Notice 2006-43 has provided transition relief for existing pick up arrangements provided that an authorized person takes formal action to evidence the establishment of the pick-up arrangement no later than January 1, 2009.

WHEREAS, in order to avail itself of the protection given under Notice 2006-43, the TOWN OF MARION desires to affirm its intention to establish and maintain a pick-up arrangement through formal action by its governing body.

NOW, THEREFORE, IT IS HEREBY RESOLVED that the existing member contribution pick-up arrangement is hereby affirmed as it relates to salary reduction elections in effect prior to the date of this Resolution, and it is further

RESOLVED that effective the first pay day on or after July 21, 2008, the TOWN OF MARION shall pick up member contributions of its employees to VRS, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States; and it is further

RESOLVED that such contributions, although designated as member contributions, are to be made by the TOWN OF MARION in lieu of member contributions; and it is further

RESOLVED that pick up member contributions shall be paid from the same source of funds as used in paying the wages to affected employees; and it is further

RESOLVED that member contributions made by the TOWN OF MARION under the pick up arrangements shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick up arrangement; and it is further

RESOLVED that nothing herein shall be construed so as to permit or extend an option to VRS members to receive the pick up contributions made by the TOWN OF MARION directly instead of having them paid to VRS; and it is further

RESOLVED that notwithstanding any contractual or other provisions, the contributions of each member of VRS who is an employee of the TOWN OF MARION shall be picked up either through a reduction in the current salary of such employee or as an offset against future salary increases of such employee or as a combination of both at the option of the employer by the TOWN OF MARION on behalf of such employee pursuant to the foregoing resolutions.

Adopted in MARION, VIRGINIA this 21^st day of July, 2008.

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David P. Helms, Mayor

APPROVAL OF PAY REQUEST NUMBER 1 ON TOWN STREET: Upon motion of Mr. Heath, seconded by Mr. Warren and vote of 6 AYES and 0 NOES, partial payment request # 1 for Town Street Waterline Replacement, in the amount of $36,376.45, was approved. Mrs. Jennings, Mrs. Hale and Messrs Leaman, Weaver, Warren, and Heath voted affirmatively. Mr. Hicks reported that Teaters Construction has completed all of the water meter tie-over on Town Street and the old line has been disconnected.

Mr. Leaman asked about the concrete work to be completed. Mr. Hicks advised that this will be done by Ken Construction as part of the concrete budget.

NOTICE OF DENIAL OF TWO CDBG PROJECTS: The Department of Housing and Community Development (CDBG) has notified the Town of Marion that two 2008 CDBG Competitive Grant Applications for Marion Housing Production and the Pearl Avenue and Buchanan Street Housing Rehabilitation Project, were unsuccessful during this funding period. Mr. Clark stated that the Town is very disappointed that these most worthy projects did not qualify for their funding. One of the issues with the Town’s application is that a majority of the property are rental units. However, CDBG suggested that the Town secure an agreement from the property owners to rent to LMI families. This was done; however, it did not seem to make the difference. The Town will re-submit the applications for these projects in 2009.

NOTICE OF ADDITIONAL HIGHWAY MAINTENANCE MONEY: VDOT has informed the Town of Marion that $1,009,732.40 has been approved for the Town for the year 2008-2009. Mr. Weaver inquired as to how some of the streets that are not currently covered in the Maintenance funding could be added to the eligible funding. Mr. Hicks explained that newly constructed streets are almost always funded and that, with upgrades, the others may be submitted for review by VDOT.

TECHNOLOGY COMMITTEE – WEB SITE UPDATE: Mr. Leaman noted that the Committee has three (3) proposals. The top two (2) will make presentations. Upon motion of Mr. Heath, seconded by Mrs. Jennings and vote of 6 AYES and 0 NOES, this item was continued.

RECREATION COMMITTEE-PROPOSED SKATE BOARD PARK: Upon motion of Mr. Heath, seconded by Mrs. Jennings and vote of 6 AYES and 0 NOES, this item was continued.

CHILI COOK-OFF: Mr. Leaman reported that the Chili Cook-Off was a lot of fun again this year. Even though, the Town did not win a prize.

NEWLY ELECTED TOWN COUNCIL MEMBERS TRAINING: Mr. Weaver and Mrs. Hale thanked the Town for allowing them attend to this training. They found it very helpful in understanding their new job.

STREETS – DANGEROUS INTERSECTION: Mrs. Hale asked that the Town review the dangerous intersection at Iron Street and High Street. Police were asked to monitor this situation.

MILEAGE RATE: Mrs. Hale suggested that the Town review the allowed mileage rate reimbursement. Upon motion of Mrs. Hale, seconded by Mr. Heath and vote of 6 AYES and 0 NOES, this item was referred to the Finance Committee.

JULY 4^TH CELEBRATION: Mr. Heath thanked the entire volunteer and sponsors that helped make this event a big success.

GLENDA’S AUTO – GRAND OPENING: Glenda will celebrate her Grand Opening on Friday, July 25, 2008 at Noon.

DOWNTOWN DAYS: Mr. Heath reported that this was a very successful event. However, the Teen Dance did not materialize.

SEWER LINE REQUEST-COACH & STAGE STREETS – ROBIN COVERT: Upon motion of Mr. Heath, seconded by Mr. Warren and vote of 6 AYES and 0 NOES, this request was referred to the Sanitation Committee and Finance Committee.

VML EXECUTIVE COUNCIL MEETING: Mayor Helms met with the Virginia Municipal League in Lynchburg, Virginia last week.

POLICE: Chief Roberts reported that the deadline for submission of applications for the police department positions closed on 7/18/08. These will be reviewed and the process will get underway. Mary Breen has requested permission to plant a small memory garden at the Police Department. Upon motion of Mr. Heath, seconded by Mrs. Jennings and vote of 6 AYES and 0 NOES, permission was granted to plant this garden.

PERSONNEL UPDATE: Mr. Clark reported that the new pay scale will be distributed to Town Council Members as soon as it is completed.

CLOSED SESSION – DISCUSSION OF ACQUIRING OLD SCHOOL BUILDING – JUSTIFICATION CODE OF VIRGINIA 1950, AS AMENDED, SECTION 2.2-3711 (3&6): Pursuant to Code of Virginia 1950, as Amended, Section 2.2-3711 and upon motion, duly seconded and vote of 6 AYES and 0 NOES, Town Council entered into Closed Session to discuss possible acquisition of the Old School Building. Mrs. Jennings moved that Council return to Open Session and that it is known that only those matters identified in the motion were discussed during the Closed Session. Mr. Heath seconded the motion. Council approved the same by a vote of 7 AYES and 0 NOES. Mrs. Hale, Mrs. Jennings and Messers Leaman, Heath, Weaver, Warren voted affirmatively.

Mr. Leaman moved that on the basis of not being obligated to spend any Town funds, a request is sent for prior authorization to the DHCD for funding to purchase the old school house. If the grant is not approved, the Town will not take ownership of the building. Mr. Warren seconded the motion. Council approve the same by a vote of 4 AYES, 1 NOE (Jennings) and 1 ABSTENTION (Heath)

SURPLUS PROPERTY- NORTH MAIN STREET: Mr. Leaman moved that the Town consider selling the parking lot at the corner of North Main Street and Chilhowie Street. Mr. Fenyk advised that this would require a public hearing to determine if the property is surplus. Mr. Warren seconded the motion. Council approved the same by a vote of 6 AYES and 0 NOES; this item was referred to the Building and Grounds Committee.

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

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Mayor Clerk