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Home My WebLink AboutCouncil Actions 01-03-06 McOaniel 37278-010306 ROANOKE CITY COUNCIL REGULAR SESSION JANUARY 3, 2006 9:00 A.M. ROOM 1 59 AGENDA Call to Order--Roll Call. THE MEETING WAS DECLARED IN RECESS UNTIL 2:00 P.M. IN THE CITY COUNCIL CHAMBER. ROANOKE CITY COUNCIL REGULAR SESSION JANUARY 3, 2006 2:00 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order--Roll Call. The Invocation was delivered by Council Member Alfred T. Dowe, Jr. The Pledge of Allegiance to the Flag of the United States of America was led by Mayor C. Nelson Harris. Welcome. Mayor Harris. NOTICE: Today's Council meeting will be replayed on Channel 3 on Thursday, January 5, 2006, at 7:00 p.m., and Saturday, January 7, 2006, at 4:00 p.m. Council meetings are offered with closed captioning for the hearing impaired. 2 ANNOUNCEMENTS: THE PUBLIC IS ADVISED THAT MEMBERS OF COUNCIL RECEIVE THE CITY COUNCIL AGENDA AND RELATED COMMUNICATIONS, REPORTS, ORDINANCES AND RESOLUTIONS, ETC., ON THE WEDNESDAY PRIOR TO THE COUNCIL MEETING TO PROVIDE SUFFICIENT TIME FOR REVIEW OF INFORMATION. CITIZENS WHO ARE INTERESTED IN OBTAINING A COPY OF ANY ITEM LISTED ON THE AGENDA MAY CONTACT THE CITY CLERK'S OFFICE, ROOM 456, NOEL C. TAYLOR MUNICIPAL BUILDING, 215 CHURCH AVENUE, S. W., OR CALL 853-2541. THE CITY CLERK'S OFFICE PROVIDES THE MAJORITY OF THE CITY COUNCIL AGENDA ON THE INTERNET FOR VIEWING AND RESEARCH PURPOSES. TO ACCESS AGENDA MATERIAL, GO TO THE CITY'S HOMEPAGE AT WWW. ROANOKEVA.GOV, CLICK ON THE SERVICE ICON, CLICK ON COUNCIL AGENDAS TO ACCESS THE APPROPRIATE AGENDA AND COUNCIL MEETING. IF ADOBE ACROBAT IS NOT AVAILABLE, A PROMPT WILL APPEAR TO DOWNLOAD PRIOR TO VIEWING AGENDA INFORMATION. ALL PERSONS WISHING TO ADDRESS COUNCIL ARE REQUESTED TO REGISTER WITH THE STAFF ASSISTANT WHO IS LOCATED AT THE ENTRANCE TO THE COUNCIL CHAMBER. ON THE SAME AGENDA ITEM, ONE TO FOUR SPEAKERS WILL BE ALLO'I-r'ED FIVE MINUTES EACH, HOWEVER, IF THERE ARE MORE THAN FOUR SPEAKERS, EACH SPEAKER WILL BE ALLO'I-1'ED THREE MINUTES. ANY PERSON WHO IS INTERESTED IN SERVING ON A CITY COUNCIL APPOINTED AUTHORITY, BOARD, COMMISSION OR COMMI'I-I'EE IS REQUESTED TO CONTACT THE CITY CLERK'S OFFICE AT 853-2541, OR ACCESS THE CITY'S HOMEPAGE AT WWW. ROANOKEVA.GOV, TO OBTAIN AN APPLICATION. 2. PRESENTATIONS AND ACKNOWLEDGEMENTS: NONE. C-1 C-2 C-3 CONSENT AGENDA Approved (7-0) ALL MA'I-I'ERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE MEMBERS OF CITY COUNCIL AND WILL BE ENACTED BY ONE MOTION. THERE WILL BE NO SEPARATE DISCUSSION OF THE ITEMS. IF DISCUSSION IS DESIRED, THE ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND CONSIDERED SEPARATELY. A communication from Mayor C. Nelson Harris requesting that Council convene in a Closed Meeting to discuss vacancies on certain authorities, boards, commissions and committees appointed by Council, and to interview an applicant for a vacancy on the Roanoke Redevelopment and Housing Authority, pursuant to Section 2.2-3711(A)(1), Code of Virginia (1950), as amended. RECOMMENDED ACTION: Concur in the request. File #110-178 A communication from the City Attorney requesting that Council convene in a Closed Meeting to consult with legal counsel on a specific legal matter requiring the provision of legal counsel, pursuant to Section 2.2- 3711(A)(7), Code of Virginia (1950), as amended. RECOMMENDED ACTION: Concur in the request. File #83-132 A communication from the City Manager recommending adoption of the Calendar of Events for Budget Preparation Activities for fiscal year 2006- 2007. RECOMMENDED ACTION: Concur in the recommendation. File #60 4 REGULAR AGENDA 4. PUBLIC HEARINGS: Proposal to lease City-owned property located at 32 Market Square to Elias Azar, d/b/aAzarJewelry, Inc., for use as office space for a term of three years. Darlene L. Burcham, City Manager. Adopted Ordinance No. 37278-010306. (7-0) File #42-166-373 5. PETITIONS AND COMMUNICATIONS: NONE. 6. REPORTS OF OFFICERS: a. CITY MANAGER: BRIEFINGS: NONE. ITEMS RECOMMENDED FOR ACTION: Acceptance of Fiscal Year 2006 Virginia Department of Fire Programs Grant funds, in the amount of $215,029.00. Adopted Budget Ordinance No. 37279-010306 and Resolution No. 37280-010306. (7-0) File #60-70-236 Adoption of guidelines for funding non-profit organizations. Adopted Resolution No. 37281-010306. (7-0) The question of appointment of a task force to ensure that nonprofit organizations will have input regarding funding guidelines was referred to the City Manager for report to Council. File #72 b. DIRECTOR OF FINANCE: Financial report for the month of November, 2005. Received and filed. File #1 0 7. REPORTS OF COMMI'I-FEES: NONE. 8. UNFINISHED BUSINESS: NONE. 9. INTRODUCTION AND CONSIDERATION OF ORDINANCES AND RESOLUTIONS: NONE. 10. MOTIONS AND MISCELLANEOUS BUSINESS: Inquiries and/or comments by the Mayor and Members of City Council. Council Member Lea inquired if the City offers a program to assist senior citizens with the removal of snow from sidewalks in front of their residence. The City Manager advised that no specific program is in effect, however, she suggested that citizens contact Marion Vaughn-Howard, Youth Planner, and Robert Clement, Neighborhood Services Coordinator, with re.gar.d, to assistance by youth and neighborhood organizations. She advised that on occasion, in the event of a vacant property or absentee landlord, the City will clear the sidewalk and bill the property owner. File #304-410-488 Council Member Cutler advised that the new Patrick Henry High School was officially opened on Monday, January 2, 2006. File #467 The Mayor advised that a community open house will be held on Sunday, January 8 from 2:00 to 5:00 p.m., at the new Patrick Henry High School. File #467 Vacancies on certain authorities, boards, commissions and committees appointed by Council. 6 1 1. HEARING OF CITIZENS UPON PUBLIC MATTERS: CITY COUNCIL SETS THIS TIME AS A PRIORITY FOR CITIZENS TO BE HEARD. MA'II'ERS REQUIRING REFERRAL TO THE CITY MANAGER WILL BE REFERRED IMMEDIATELY FOR RESPONSE, RECOMMENDATION OR REPORT TO COUNCIL. Mr. Al Scanlan, 1631 Center Hill Drive, S. W., raised questions with regard to the use of bond funds for high school stadia. The remarks were referred to the City Manager for report to Council. File #53-122 Ms. Anita Wilson, a City Market Building tenant, spoke in support of formal lease agreements for tenants renting space in the City Market Building. File #42-166-373 12. CITY MANAGER COMMENTS: The City Manager advised that she hoped Council Members had a happy holiday season and she looked forward to the year 2006. File #80-132 CERTIFICATION OF CLOSED SESSION. (7-0) Joseph W. Lee, III, was appointed as a Commissioner of the Roanoke Redevelopment and Housing Authority to fill the unexpired term of Mornique E. Smith, resigned, ending August 31, 2008. File #15-110-1 78 Carol J. Jenson was appointed as a member of the Roanoke Neighborhood Advocates to fill the unexpired term of Earnest C. Wilson, ending June 30, 2007. File #15-110-488 7 C. NELSON HARRIS Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE, S.W., ROOM 452 ROANOKE, VIRGINIA 24011 - 1594 TELEPHONE: (540) 853-2444 FAX: (540) 853~1145 Janua~ 3,2006 The Honorable Vice-Mayor and Members of the Roanoke City Council Roanoke, Virginia Dear Members of Council: This is to request a Closed Meeting to discuss vacancies on certain authorities, boards, commissions and committees appointed by Council, and to interview an applicant for a vacancy on the Roanoke Redevelopment and Housing Authority, pursuant to Section 2.2- 3711 (A)(1), Code of Virginia (1950), as amended. Sincerely, C. Nelson Harris Mayor CNH:snh WILLIAM M. HACKWORTH CITY ATVORNEY CITY OF ROANOKE OFFICE OF CITY ATTORNEY 464 MUNICIPAL BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011-1595 TELEPHONE: 5411-853 2431 FAX: 540-853 1221 EMAIL: cityatty @ roanokeva.go* January 3, 2006 TIMOTHY R. SPENCER STEVEN J. TALEVI GARY E. TEGENKAMP DAVID L. COLLINS HEATHER P. FERGUSON ASS[STAN f CITY A~ORNEYS The Honorable Mayor and Members of City Council Roanoke, Virginia Re: Request for closed meeting Dear Mayor Harris and Council Members: This is to request that City Council convene a closed meeting for consulting with the City Attorney regarding a specific legal matter requiring the provision of legal counsel, pursuant to {}2.2- 3711.A.7, Code of Virginia (1950), as amended. With kindest personal regards, I am Sincerely yours, WMH:lsc William M. Hackworth City Attomey CC~ Darlene L. Burcham, City Manager Mary F. Parker, City Clerk K:\CC\Closcd Meeting Requests\counsult with legal counsel.doc CITY OF ROANOKE OFFICE OF THE CITY MANAGER Noel C. Taylor Municipal Building 215 Church Avenue, S.W., Room 364 Roanoke, Virginia 24011-1591 Telephone: (540) 853-2333 Fax: (540) 853-1138 City Web: ~,vww.roanokeva.gov Janua~ 3, 2006 Honorable C. Nelson Harris, Mayor Honorable Beverly T. Fitzpatrick, Jr., Vice Mayor Honorable M. Rupert Cutler, Council Member Honorable Alfred T. Dowe, Jr., Council Member Honorable Sherman P. Lea, Council Member Honorable Brenda L. McDaniel, Council Member Honorable Brian J. Wishneff, Council Member Dear Mayor Harris and Members of Council: Subject: Adoption of Calendar of Events for Budget Preparation Activities for FY 2006-2007 Background: As in prior years, City Council has approved the Calendar of Events for Budget Preparation Activities for the upcoming fiscal year. The recommended Calendar of Events for FY 2006-2007 is attached. Recommended Actions: Approve the attached Calendar of Events for Budget Preparation Activities for FY 2006-2007. Respectfully submitted, City Manager DLB:vst Attachment Honorable Mayor and Members of Council January 3, 2006 Page 2 C: Mary F. Parker, City Clerk William M. Hackworth, City Attorney Jesse A. Hall, Director of Finance Sherman M. Stovall, Director of Management and Budget CM05-00187 Date April 10-14, 2006 April 14, 2006 April 17, 2006 April 18, 2006 April 27, 2006 COUNCIL CALENDAR OF EVENTS FOR BUDGET PREPARATION ACTIVITIES FISCAL YEAR 2006 - 2007 Budget Preparation Activities City Manager briefs City Council on Recommended budget. Recommended budget document delivered to City Council members. Recommended budget presented to City Council at regularly scheduled meeting; meeting continued to April 27. Advertisements of public hearings on recommended budget and tax rates appear in newspapers. Note: State Code requires the advertisement of the real property tax rate for the fiscal year. Public hearings on recommended budget and tax rates at 7:00 p.m. May 4, and 5, 2006 May 11, 2006 Budget Study - 8:30 a.m. - 5:00 p.m. (continuation of May 1 City Council meeting). City Council adopts General Fund, School Fund, Proprietary Fund budgets and an Update to the HUD Consolidated Plan and approves an annual appropriation ordinance at 2:00 p.m. CITY OF ROANOKE Office of the City Clerk Mary F. Parker, CMC City Clerk January 5, 2006 File #42-166-373 Stephanie M. Moon, CMC Deputy City Clerk Sheila N. Hartman Assistant City Clerk Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham.' I am attaching copy of Ordinance No. 37278-010306 authorizing the City Manager to execute a Lease Agreement for approximately 418 square feet of space located within the City Market Building, 32 Market Square, for a term of three years beginning January 3, 2006, and expiring January 2, 2009, at a base rent rate of $23.50 per square foot, as more fully set forth in a letter from the City Manager addressed to the Council under date of January 3, 2006. The abovereferenced measure was adopted by the Council of the City of Roanoke at a regular meeting which was held on Tuesday, January 3, 2006, and is in full force and effect upon its passage. Sincerely, Mary F. Parker, CMC City Clerk MFP:ew Attachment L:~CLERIGDATA~CKEWI~AGENDA CORRESPONDENCE%agenda co~Tespondence 06Uan 06Uan 3 correspondence.doc Darlene L. Burcham January 5, 2006 Page 2 pc: Mr. Elias Azar, DNDJewelry, ].409 Archbald Avenue, N. E.., Roanoke, Virginia 24012-8].04 Jesse A. Hall, Director of Finance Sherman M. Stovall, Director, Office of Management and Budget Rolanda B. Russell, Assistant City Manager for Community Development R. Brian Townsend, Director, Planning Building and Economic Development Lisa Poindexter-Plaia, Economic Development Specialist L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~agenda correspondence 06~Jan 06~lan 3 correspondence.doc IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGIN-IA, The 3rd day of January, 2006. No. 37278-010306. AN ORDINANCE authorizing the lease of approximately 418 squay, e feet of space located within City-owned property known as the City Market Building, located at 32 Market Square, for a term of three (3) years beginning January 3, 2006, and expiring January 2, 2009, with a base rent rote of $23.50 per square foot, authorizing the appropriate City officials to execute a Lease Agreement therefore; and dispensing with the second reading of this ordinance by title. WHEREAS, a public hearing was held on January 3, 2006, pursuant to §§ 15.2-1800(B) and 1813, Code of Virginia (1950), as amended, at which hearing all parties in interest and citizens were afforded an oppormnity to be heard on the proposed lease. THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke that: 1. The City Manager and the City Clerk are hereby authorized to execute and attest, respectively, in a form approved by the City Attorney, an agreement with Elias Azar, the owner and operator of Azar Jewelry, Inc., for the lease of approximately 418 square feet of space located within City-owned property known as the City Market Building, located at 32 Market Square, for a term of three (3) years beginning January 3, 2006, and expiring January 2, 2009, with a base rent rate of $23.50 per square foot, upon certain terms and conditions, and as more particularly described in the City Manager's letter to this Council dated January 3, 2006. 2. Pursuant to the provisions of Section 12 of the City Charier, the second reading ofthis ordinance by title is hereby dispensed with. ATTEST: CITY OF ROANOKE OFFICE OF THE CITY MANAGER Noel C. Taylor Municipal Building 215 Church Avenue, S.W., Room 364 Roanoke, Virginia 24011-I591 Telephone: (540) 853-2333 Fax: (540) 853 li38 City Web: www.roanokeva.gov January 3, 2006 Honorable C. Nelson Harris, Mayor Honorable Beverly T. Fitzpatrick, Jr., Vice Mayor Honorable M. Rupert Cutler, Council Member Honorable Alfred T. Dowe, Jr., Council Member Honorable Sherman P. Lea, Council Member Honorable Brenda L. McDaniel, Council Member Honorable Brian J. Wishneff, Council Member Dear Mayor Harris and Members of Council: Subject: Market Building Lease Background: The City of Roanoke owns the City Market Building located at 32 Market Square, Roanoke, Virginia 24011. The City of Roanoke began management of the Building on May 1, 2005, after the former management company, Advantis Real Estate, terminated the management contract for this property. Elias Azar, the owner and operator of Azar Jewelry, Inc., has requested a lease agreement for approximately 418 square feet to sell and/or repair jewelry. The proposed lease agreement is for a three (3) year period, beginning January 3, 2006, through January 2, 2009. The proposed agreement establishes a base rent rate of $23.50 per square foot with an increase of 3.00% each year thereafter and a common area maintenance fee of $125.00 per month that will increase by 3.00% upon each anniversary of this Lease. In addition to base rent and common area maintenance, the tenant will also pay $72.00 per month for thirty-four (34) months (for a total of $2,448) for the reimbursement of costs incurred by the City associated with the flaming in of two open doorways, installing hot and cold water supply and waste line, installing a sink provided by the tenant with two ground fault outlets, and removal of the existing carpet. There is no renewal provision in this lease. Honorable Mayor and Members of Council January 3, 2006 Page 2 Recommended Action: Authorize the City Manager to execute a lease agreement with Elias Azar d/b/a AzarJewelry, Inc., for approximately 418 square feet in the City Market Building located at 32 Market Square, Roanoke, Virginia 24011, for a period of three (3) years, beginning January 3, 2006, and expiring January 2, 2009. All documents shall be upon form approved by the City Attorney. Respectfully submitted, DLB:Ipp Darlene L. Burcham City Manager C: Mary F. Parker, City Clerk William M. Hackworth, City Attorney Jesse A. Hall, Director of Finance Rolanda Russell, Assistant City Manager Brian Townsend, Director Planning, Building and Economic Development David Collins, Assistant City Attorney Lisa Poindexter-Plaia, Economic Development Specialist CM05-00185 LEASE Between THE CITY OF ROANOKE and Elias Azar dba Azar Jewelry, Inc. C:\DOCUME-i\CMSM1 000\LOC/~LS~i\TE~4P\NOTESFFF692\MARKET BUILDING FINAL LEASE ELIAS AZ~R DOC LEASE INDEX HEADING PAGE PREMISES 1 TERM 1 BASE RENT; ESCALATIONS 1 COMMON AREA MAINTENANCE 2 LANDLORD OBLIGATIONS 2 TENANT'S OBLIGATIONS 3 USE OF PREMISES 3 EXCLUSIVITY 3 ASSIGNMENT AND SUBLE-I-rlNG 3 I M PROVEM ENTS 4 SURRENDER OF PREMISES 4 INSPECTION 4 INSOLVENCY OR BANKRUPTCY OF TENANT 4 TRANSFER OF LANDLORD'S INTEREST 4 ESTOPPEL CERTIFICATE 4 DAMAGE TO THE PREMISES 5 DEFAULT OF TENANT CONDEMNATION 6 COVENANTS OF LANDLORD 6 NO PARTNERSHIP 6 BROKERS COMMISSION 6 NOTICES 6 HOLDING OVER 6 BENEFIT AND BURDEN 7 GENDER AND NUMBER 7 ENTIRE AGREEMENT 7 INVALIDITY OF PARTICULAR PROVISIONS 7 C:\DOCUME~I \CMSM1.000\LOCALS~ 1 \TEM P\NOTES FFF692\MARKET BUILDING FINAL LEASE- ELIAS AZAR.DOC T HAZARDOUS SUBSTANCES INSURANCE SECURITY DEPOSIT INDEMNIFICATION COMPLIANCE WITH LAWS AND REGULATIONS FORUM SELECTION AND CHOICE OF LAW FORCE MAJEURE EQUAL EMPLOYMENT OPPORTUNITY DRUG-FREE WORKPLACE RULES AND REGULATIONS SIGNAGE GUARANTY ADDITIONAL RENT BUSINESS HOUR MODIFICATION Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G 7 8 8 9 9 9 9 9 10 10 10 10 10 10 Floor Plan Common Area Floor Plan Menu Rules and Regulations Sign Regulations Guaranty Tenant Improvement LEASE THIS LEASE is made this .... day of .................... 2005 by and between the CITY OF ROANOKE (hereinafter referred to as ALandlord~), and Elias Azar dba Azar .]ewelrv. Inc., (hereinafter referred to as ATenant~), WlTN ESS ETH: In consideration of the mutual agreements hereinafter set forth, the parties hereto mutually agree as follows: 1. PREMISES Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, for the term and upon the conditions hereinafter provided, a section of the building known as the Roanoke City Market Building (herein referred to as the ~Building@) located at 32 Market Square, Stall#110, Roanoke, Virginia 24011, as is delineated on Exhibit ~a,o hereto, which is hereafter referred to as the APremises. O The Premises consists of approximately 418 square feet of space. 2. TERM The term of this Lease shall commence on lanuarv 3, 2006 (ACommencement Date@) and shall expire at 11:59 o=clock p.m. on lanuarv 2, 200_9. A key will be given to Tenant upon execution of the Lease. 3. BASE RENT; ESCALATIONS The base rent for the first year of the term shall be based on cost per square foot. Tenant shall pay as base rent for the rrem~ses for each ear oT [ne Lease accora~ng to the tonow~ng scneau~e: Period Per Square Monthly Rent Annual Rent Foot Amount Amount 1/3/06 to 1/2/07 $23.50 $818.50 $9,822.00 1/3/07 to 1/2/08 $24.20 $843.00 $10,116.00 1/3/08 to 1/2/09 $24.92 $868.00 $10,416.00 If the Commencement Date is other than the first day of the month, the first year of the Lease term shall be deemed to be extended to include such partial month and the following twelve (12) months, so as to end on the last dayofthe month. In the event the Commencement Date is other than the first day ofacalendar month, the Base Rent ("Rent") (as well as the Common Area Maintenance Fee provided hereunder) for the portion of the then current calendar month shall be prorated on the basis of a thirty (30) day month and shall be paid immediately upon the commencement of the Term. On the first anniversary of the Lease, and upon each successive anniversary thereafter, the monthly rent for the next twelve (12) months shall be increased by three percent (3%) of the previous year=s monthly rental. Rent shall be paid monthly. The first monthly payment shall be made at the time of execution of this Lease by the parties; the second and all subsequent monthly payments shall be made on the first day of each and every calendar month during the term. Any monthly payment of rent which is not received by Landlord by the end of the fifth (5th) day of the month shall be assessed a late charge in the amount of five percent (5%) of such total monthly rent payment. All delinquent rent, and other charges due under this Lease shall accrue interest at a rate equal to the current prime rate, as established by the United States Government, plus two percent (2%) per month or the maximum amount permitted by law, from the due date of such payment and shall constitute additional rent payable by Tenant under this Lease and shall be paid by Tenant to Landlord upon demand. Payment shall not be deemed as received if Tenant's payment is not actually collected (such as payment by insufficient funds check). Tenant shall pay rent to Landlord at City of C;\DOCUME~I\CMSM1 000\LOCALS~I\TEMI~NOTESFFF692\MARKE[ BUILDING FINAL LEASE - ELIAS AZAR.DOC 1 Roanoke, 111 Franklin Road, Suite 200, Roanoke, Virginia 24011, Attention: Director of Economic Development, or to such other party or at such other address as Landlord may designate from time to time by written notice to Tenant, without demand. Checks shall be made payable to Treasurer, City of Roanoke. 4. COMMON AREA MAINTENANCE Tenant agrees to pay Landlord, as additional rental, Tenant's proportionate share of the costs ("Common Area Maintenance Fee") of maintaining, operating, repairing, replacing and insuring the "Common Areas" defined herein. The Common Area Maintenance Fee for this lease will be a flat fee charge of One hundred twenty-five Dollars ($125.00) per month. These fees will increase by three (3%) percent upon each anniversary of this Lease. The term "Common Area Maintenance Fee" includes all costs and expenses of every kind and nature paid or incurred by Landlord in operating, managing, equipping, policing, lighting, repairing, replacing items in the Building and maintaining the Building. Such costs and expenses will include, but not be limited to, the following: (a) (b) (c) (d) (e) (g) (h) (k) (I) (m) (n) (o) utilities (electric, gas, waste removal, water and sewer charges, storm water charges; individual telephone service is specifically excluded), insurance premiums for public liability and property damage for the Building(excluding Tenant's Premises) maintenance costs of heating, ventilating and air conditioning, insect and rodent treatment, snow and ice removal, electrical and plumbing repairs in the Common Areas of the Building, management costs and repairs to the structure of Building which includes roof and wall repairs, foundations, sprinkler systems, utility lines, sidewalks and curbs, security camera systems, lighting, sanitary control, drainage, collection of rubbish and other refuse, costs to remedy and/or comply with governmental and/or environmental and hazardous waste matters (excluding Tenant's Premises) repair and installation of equipment for energy saving or safety purposes, reserves for future maintenance and repair work (which Tenant hereby authorize Landlord to use as necessary), depreciation on equipment and machinery used in maintenance, costs of personnel required to provide such services, all costs and expenses associated with Landlord's obligation to repair and maintain and such other items of cost and expense which are relatable to proper maintenance of the Building and its Common Areas. The "Common Areas" are defined as all areas and spaces in the Building and equipment in the Building, as further shown on the attached Exhibit B provided by Landlord for common or joint use and benefit of the tenants of the Building, their employees, agents, servants, customers and invitees. The Common Areas further include, without limitation, roofs, walls, vacant areas, food court, elevator(s), restrooms, stairways, walkways, ramps, foundations, signs (excluding Tenant's signage), security cameras, lighting fixtures and equipment, and the facilities appurtenant to each of the aforesaid, and any other facilities maintained for the benefit of the Building. Landlord shall have the right to modify the Common Areas from time to time as deemed reasonable by Landlord. 5. LANDLORD'S OBLIGATIONS responsible for the following: Landlord hereby agrees to provide and be (a) make all structural and capital repairs and replacements to items in the Building and to the Common Areas, as defined above, and to maintain the Building and its Common Areas. Structural and capital repairs and replacements are defined as repairs or replacements which include but are C:\DOCUME~I\CMSM1 O00\LOCALS~I \TEMP\NOTESFFF692\MARKET BUILDING FINAL LEASE - ELIAS AZAR. DOC 2 not limited to repairs or replacements to the roof, elevators, electrical wiring, heating and air conditioning systems, toilets, water pipes, gas, plumbing, other electrical fixtures and the exterior and interior walls. Structural and capital repairs to Tenant's Premises are specifically excluded. (b) pay for the cost of Tenant's utilities (gas, electric, heating, water, telephone service specifically excluded) and all other services identified through use of funds from the Common Area Maintenance Fee described above. (c) provide a key to Tenant upon execution of the Lease Agreement, 6. TENANT'S OBLIGATIONS Tenant, at its sole cost and expense, agrees to provide and be responsible for the following, in addition to its other responsibilities pursuant to this Lease. (a) Tenant shall keep and maintain the Premise in good repair, condition and appearance during the term of this Lease, ordinary wear and tear excepted, and not use any part of the Premises orthe Common Areas of the Building in a negligent manner. (b) Tenant shall take good care of the Premises, its fixtures, and appurtenances and suffer no waste or injury thereto, and shall pay for all repairs and replacements to the Premises, necessitated by Tenant's actions, whether capital, structural as defined above, or otherwise. (c) Tenant shall surrender the Premises at the end of the term in as good condition as Tenant obtained the same at the commencement of the term, reasonable wear and tear excepted. (d) Tenant shall operate its business as described in Section 7 of this Lease. (e) Tenant shall pay rent timely as provided in Section 3 of this Lease. (f) Tenant shall obtain the insurance as required in Section 29 of this Lease. 7. USE OF PREMISES The Premises shall be used for the purpose of conducting therein the sale and repair of jewelry. Tenant covenants and agrees that at all times during the term hereof, Tenant will actively conduct such a business in the Premises, keep the Premises amply stocked with good and fresh merchandise and keep the Premises open for business during the customary business hours of 10:00 a.m. to 6:00 p.m. (not less than eight (8) hours per day, Monday through Saturday) of the Building as established or as may be amended by Landlord and (ii) the Premises shall be used only for such purpose. The Building will be closed for the following Holidays: New Year's Day, Memorial Day, Labor Day, Thanksgiving Day and Christmas Day. Nothing herein shall require the City of Roanoke to open the Building outside of the above designated hours. The Premises shall not be used for any other purpose without the written permission of Landlord. Tenant shall not open the Building to the public outside of the customary business hours or on the Holidays stated above. 8. EXCLUSIVITY Intentionally omitted. 9. ASSIGNMENT AND SUBLE~I-ING Tenant shall not voluntarily or involuntarily assign this Lease in whole or in part, nor sublet all or any part of the Premises without following the procedures detailed herein and obtaining the prior written consent of Landlord, in Landlord's sole discretion. The consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity for such consent in any subsequent assignment or subletting. in the event that Tenant receives a bona fide written offer from athird party for the sublease or assignment of the Premises, Tenant shall forthwith notify Landlord in writing, attaching a copy of such offer, of Tenant's desire to sublet or assign this C:\DOCUME~I\CMSMI 000\LOCALS~I\TI:MP~NOTESFFF6g2\MARKET BUILDING FINAL LEASE ELIAS AZAR. DOC 3 Lease upon the terms of such offer, whereupon Landlord shall have thirty (30) days to accept or reject such assignment or sublease. 10. IMPROVEMENTS Landlord must approve all alterations, redecorations, or improvements in and to the Premises in writing beforehand. Such alterations, redecorations, additions, or improvements shall conform to all applicable Building Codes of the City of Roanoke, federal and state laws, rules and regulations. 11. SURRENDER OF PREMISES At the expiration of the tenancy hereby created, Tenant shall peaceably surrender the Premises, including all alterations, additions, improvements, decorations and repairs made thereto (but excluding all trade fixtures, equipment, signs and other personal property installed by Tenant, provided that in no event shall Tenant remove any of the following materials or equipment without Landlord's prior written consent: any free standing signs, any power wiring or power panels; lighting or lighting fixtures; wall coverings; drapes, blinds or otherwindowcoverings; carpets or other floor coverings; or other similar building operating equipment and decorations), broom cleaned and in good condition and repair, reasonable wear and tear excepted. Tenant shall remove all its property not required to be surrendered to Landlord before surrendering the Premises and shall repair any damage to the Premises caused thereby. Any personal property remaining in the Premises at the expiration of the Lease shall be deemed abandoned by Tenant, and Landlord may claim the same and shall in no circumstance have any liability to Tenant therefore. If physical alterations were done by Tenant, Landlord, at its option, may require Tenant to return Premises to its original condition (condition at occupancy)when Tenant vacates Premises. Upon termination, Tenant shall also surrender all keys for the Premises to Landlord and, if applicable, inform Landlord of any combinations of locks or safes in the Premises. If the Premises are not surrendered at the end of the term as herein above set out, Tenant shall indemnify Landlord against loss or liability resulting from delay by Tenant in so surrendering the Premises, including without limitation, claims made by the succeeding Tenant founded on such delay. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease. 12. INSPECTION Tenant will permit Landlord, or its representative, to enter the Premises, upon reasonable notice to Tenant, without charge thereof to Landlord and without diminution of the rent payable by Tenant, to examine, inspect and protect the same, and to make such alterations and/or repairs as in the judgment of Landlord may be deemed necessary, or to exhibit the same to prospective Tenants during the last one hundred twenty (120) days of the term of this Lease. 13. INSOLVENCY OR BANKRUPTCY OF TENANT In the event Tenant makes an assignment for the benefit of creditors, or a receiver of Tenant's assets is appointed, or Tenant files a voluntary petition in any bankruptcy or insolvency proceeding, or an involuntary petition in any bankruptcy or insolvency proceeding is filed against Tenant and the same is not discharged within sixty (60) days, or Tenant is adjudicated as bankrupt, Landlord shall have the option of terminating this Lease. Upon such written notice being given by Landlord to Tenant, the term of this Lease shall, at the option of Landlord, end and Landlord shall be entitled to immediate possession of the Premises and to recover damages from Tenant in accordance with the provisions of Article 17 hereof. 14. TRANSFER OF LANDLORD=S INTEREST Landlord shall have the right to convey, transfer or assign, by sale or otherwise, all or any part of its ownership interest in the property, including the Premises, at any time and from time to time and to any person, subject to the terms and conditions of this Lease. All covenants and obligations of Landlord under this Lease shall cease upon the execution of such conveyance, transfer or assignment, but such covenants and obligations shall run with the land and shall be binding upon the subsequent owner(s) thereof or of this Lease during the periods of their ownership thereof. 15. ESTOPPEL CERTIFICATE Tenant agrees, at any time, and from time to time, upon not less than ten (10) days' prior notice by Landlord, to execute, acknowledge and deliver to Landlord, a statement in writing addressed to Landlord or other party designated by Landlord certifying that this Lease is in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), stating the actual commencement and expiration dates of the Lease, stating the dates to which rent, and other charges, if any, have been paid, that the Premises have been completed on or before the date of such certificate and that all conditions precedent to the Lease taking effect have been carried out, that Tenant has accepted possession, that the Lease term has commenced, Tenant is occupying the Premises and is open for business, and stating whether or not there exists any default by either party contained in this Lease, and if so specifying each such default of which the signer may have knowledge and the claims or offsets, if any, claimed by Tenant; it being intended that any such statement delivered pursuant hereto may be relied upon by Landlord or a purchaser of Landlord's interest and by any mortgagee or prospective mortgage of any mortgage affecting the Premises. If Tenant does not deliver such statement to Landlord within such ten (10) day period, Landlord may conclusively presume and rely upon the following facts: (i) that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord; (ii) that this Lease has not been canceled or terminated except as otherwise represented by Landlord; (iii) that not more than one (1) month's minimum rent or other charges have been paid in advance; and (iv) that Landlord is not in default under the Lease; and (v) no disputes exist. In such event Tenant shall be estopped from denying the truth of such facts. Tenant shall also, on ten (10) days' written notice, provide an agreement in favor of and in the form customarily used by such encumbrance holder, by the terms of which Tenant will agree to give prompt written notice to any such encumbrance holder in the event ofanycasualtydamage to the Premises or in the event of any default on the part of Landlord under this Lease, and will agree to allow such encumbrance holder a reasonable length of time after notice to cure or cause the curing of such default before exercising Tenant's right of self-help under this Lease, if any, or terminating or declaring a default under this Lease. 16. DAMAGE TO THE PREMISES If the Building or the Premises shall be partially damaged by fire or other cause without the fault or neglect of Tenant, its agents, employees or invitees, Landlord shall diligently and as soon as practicable after such damage occurs repair such damage at the expense of Landlord, provided, however, that if the Building is damaged by fire or other cause to such extent that the damage cannot be fully repaired within ninety (90) days from the date of such damage, Landlord or Tenant, upon written notice to the other, may terminate this Lease, in which event the rent shall be apportioned and paid to the date of such damage. During the period that Tenant is deprived of the use of the damaged portion of Premises, Tenant shall be required to pay rental covering only that part of the Premises that Tenant is able to occupy, and Rent for such occupied space shall be the total rent divided by the square foot area of the Premises and multiplied by the square foot area that the Tenant is able to occupy. 17. DEFAULT OF TENANT If Tenant shall fail to pay any monthly installment of Rent and/or as required by this Lease, or shall violate or fail to perform any of the other conditions, covenants or agreement on its part contained in this Lease and such failure to pay Rent or such violation or failure shall continue fora period often (10) days after the due date of such payment or after written notice of any such violation or failure to perform by Tenant, then and in any of such events this Lease shall, at the option of Landlord, cease and terminate upon at least ten (10) days' prior written notice of such election to Tenant by Landlord, and if such failure to pay rent or such violation or failure shall continue to the date set forth in such notice of termination, then this Lease shall cease and terminate without further notice to quit or of Landlord's intention to re-enter, the same being herebywaived, and Landlord may proceed to recover possession under and by virtue of the provisions of the laws of Virginia, or by such other proceedings, including re-entry and possession, as may be applicable. If Landlord elects to terminate this Lease, everything herein contained on the part of Landlord to be done and performed shall cease without prejudice, however, to the right of Landlord to recover from the C:\DOCUME~I \CMSM1.000\LOCALS~ 1 \TEM P~NOTESFFF692\MARKET BUILDING FINAL LEASE- El.lAS AZAR.DOC 5 Tenant all rental accrued up to the time of termination or recovery of possession by Landlord, whichever is later. Should this Lease be terminated before the expiration of the term of this Lease by reason of Tenant's default as hereinabove provided, or if Tenant shall abandon or vacate the Premises before the expiration or termination of the term of this Lease, Landlord shall use its best efforts to relet the Premises on the best rental terms reasonably available under the circumstances and if the full rental hereinabove provided shall not be realized by Landlord, Tenant shall be liable for any deficiency in rent. Any damage or loss of rental sustained by Landlord may be recovered by Landlord, at Landlord's option, at the time of the reletting, or in separate actions from time to time, as such damage shall have been made more easily ascertainable by successive relettings, or at Landlord's option, may be deferred until the expiration of the term of this Lease in which event the cause of action shall not be deemed to have accrued until the date of expiration of such term. The provisions contained in this paragraph shall not prohibit any claim Landlord may have against Tenant for anticipatory breach of the unexpired term of this Lease. 18. CONDEMNATION If any part of the Building or a substantial part of the Premises shall be taken or condemned by any governmental authority for any public or quasi-public use or purpose (including sale under threat of such a taking) then the term of this Lease shall cease and terminate as of the date when title vests in such governmental authority, and the annual rental shall be abated on the date when such title vests in such governmental authority. If less than a substantial part of the common area of the Premises is taken or condemned by any governmental authority for any public or quasi-public use or purpose, the rent shall be equitably adjusted on the date when title vests in such governmental authority and the Lease shall otherwise continue in full force and effect. Tenant shall have no claim against Landlord (or otherwise) for any portion of the amount that may be awarded as damages as a result of any governmental taking or condemnation (or sale under threat of such taking or condemnation) or for the value of any unexpired term of the Lease. For purposes ofthis Article18, a substantial part of the Premises shall be considered to have been taken if more than fifty percent (50%) of the Premises are unusable by Tenant. 19. COVENANTS OF LANDLORD Landlord covenants that it has the right to make this Lease for the term aforesaid, and that if Tenant shall pay the Rent and perform all of the covenants, terms and conditions of this Lease to be performed by Tenant, Tenant shall, during the term hereby created, freely, peaceably and quietly occupy and enjoy the full possession of the Premises without molestation or hindrance by Landlord or any party claiming through or under Landlord. 20. NO PARTNERSHIP Nothing contained in this Lease shall be deemed or construed to create a partnership or joint venture of or between the Landlord and Tenant, or to create any other relationship between the parties hereto other than that of Landlord and Tenant. 21. BROKER'S COMMISSION Tenant represents and warrants that it has incurred no claims or finder's fees in connection with the execution of this Lease. 22. NOTICES All notices or other communications hereunder shall be in writing and shall be deemed duly given if delivered in person or by certified or registered mail, return receipt requested, first-class postage prepaid, (i) if to Landlord at City of Roanoke, 111 Franklin Road, Suite 200, Roanoke, Virginia 24011, Attention: Director of Economic, and (ii) if to Tenant, at Elias Azar, 1409 Archbold Avenue, Roanoke. VirQinia 24012-8104, unless notice of a change of address is given pursuant to the provisions of this Article. 23. HOLDING OVER In the event that Tenant shall not immediately surrender the Premises on the date of expiration of the term hereof, Lease shall automatically renew itself month to month, at twice the Rent rate for the last year of the Lease plus all other charges accruing under this Lease, and subject to all covenants, provisions and conditions herein contained. Landlord and tenant shall both have C:\DOCIJME~I\CMSMI 000\LOCALS-I\TEMP~NOTESFFF692\MARK~I BUILDING FINAL LEASE - ELIAS AZAP..DOC 6 the right to terminate the holdover tenancy upon thirty (30) days written notice. Tenant shall not interpose any counterclaim(s) in a summary proceeding or other action based on holdover. 24. BENEFIT AND BURDEN The provisions of this Lease shall be binding upon, and shall inure to the benefit of, the parties hereto and each of their respective representatives, successors and assigns. 25. GENDER AND NUMBER Feminine or neuter pronouns shall be substituted for those of the masculine form, and the plural shall be substituted for the singular number, in any place or places herein in which the context may require such substitution. 26. ENTIRE AGREEMENT This Lease, together with any exhibits attached hereto, contains and embodies the entire agreement of the parties hereto, and representations, inducements or agreements, oral or otherwise, between the parties not contained in this Lease and exhibits, shall not be of any force or effect. This Lease may not be modified, changed or terminated in whole or in part in any manner other than by an agreement in writing duly signed by both parties hereto. 27. INVALIDITY OF PARTICULAR PROVISIONS If any provision of this Lease or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such provisions to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 28. HAZARDOUS SUBSTANCES Tenant covenants and warrants that Tenant, and Tenant's use of Premises and any alterations thereto will at all times comply with and conform to all laws, statues, ordinances, rules and regulations of any governmental, quasi-governmental or regulatory authorities ("Laws") which relate to the transportation, storage, placement handling, treatment, discharge, generation, removal production or disposal (collectively "Treatment") of any waste petroleum product, waste products, radioactive waste, Polychlorinated Biphenyls (PCB), asbestos, lead-based paint, or other hazardous materials of any kind, and any substance which is regulated by any law, statute, ordinance, rule or regulation (collectively "Waste"). Tenant further covenants and warrants that it will not engage in or permit any person or entity to engage in any Treatment of any Waste on or which affects the Premises. Immediately upon receipt of any Notice (as hereinafter defined) from any person or entity, Tenant shall deliver to Landlord a true, correct and complete copy of any written Notice. "Notice" shall mean any note, notice or report of any suit, proceedings, investigation, order, consent order, injunction, writ, award or action related to or affecting or indicating the Treatment of any Waste in or affecting the Premises. Tenant hereby agrees it will indemnify, defend, save and hold harmless Landlord and Landlord's officers, directors, shareholders, employees, agents, partners, and the respective heirs, successors and assigns (collectively "Indemnified Parties") against and from, and to reimburse the Indemnified Parties with respect to, any and all damages, claims, liabilities, loss, costs and expense (including, without limitation all attorney's fees and expenses, court costs, administrative costs and costs of appeals), incurred by or asserted against the Indemnified Parties by reason of or arising out of: (a)the breach of any representation or undertaking of Tenant under this section or (b) arising out of the Treatment of any waste by Tenant or any licensee, concessionaire, manager or other party occupying or using the Premises. Landlord is given the right, but not the obligation, to inspect and monitor the Premises and Tenant's use of the Premises, including the right to review paperwork associated with Treatment activities in order to confirm Tenant's compliance with the terms of this Section. Landlord may require that Tenant deliver to Landlord C:\DOCUME~I \CMSM1.000\LOCALS- 1 \TEM P\NOTESFt:F692\MARKET BUILDING FINAL LEASE- ELIAS AZAR.DOC concurrent with Tenant's vacating the Premises upon the expiration of this Lease, or any earlier vacation of the Premises by Tenant, at Tenant's expense, a certified statement by licensed engineers satisfactory to the Landlord, in form and substance satisfactory to Landlord, stating that Tenant, and any alterations thereto and Tenant's use of the Premises complied and conformed to all Laws relating to the Treatment of any Waste in or affecting the Premises.. Tenant agrees to deliver upon request from Landlord estoppel certificates to Landlord expressly stipulating whether Tenant is engaged in or has engaged in the Treatment of any Waste in or affecting the Premises, and whether Tenant has caused any spill, contamination, discharge, leakage, release or escape of any Waste in or affecting the Premises, whether sudden or gradual, accidental or anticipated, or any other nature at or affecting the Premises and whether, to the best of the Tenant's knowledge, such an occurrence has otherwise occurred at or affecting the Premises. 29. INSURANCE Prior to the delivery of possession of the Premises to Tenant, Tenant shall provide Landlord evidence satisfactory to Landlord (i) that fire and casualty and workers' compensation policies in amount and in form and content satisfactory to Landlord have been issued by a company or companies satisfactory to Landlord and will be maintained throughout the course of Tenant's work at Tenant's cost and expense and (ii) that Tenant has complied with the comprehensive liability insurance requirements set forth in the following paragraph. Tenant will, at all times commencing on the date of delivery of possession of the Premises to Tenant, at its own cost and expense, carry with a company or companies, satisfactory to Landlord, comprehensive general liability insurance including public liability and property damage, in a form satisfactory to Landlord, on the Premises, with the combined single liability limits of not less than One Million Dollars ($1,000,000.00) per occurrence, which insurance shall be written or endorsed so as to protect Landlord, its officers, agents and employees as additional insureds. The Tenant agrees that the above stated limits and coverages are minimum limits and coverages, and that Tenant shall provide such additional insurance as set forth above, in such amounts and against such risk as may be required in the Landlord's sole but reasonable judgment, to equal the amounts and types of coverages carried by prudent owners and operators of properties similar to the Building. Tenant shall increase such limits at its discretion or upon reasonable request of Landlord but not more often than once every year and such increases shall not be in excess of generally accepted standards in the industry. Tenant covenants that certificates of all of the insurance policies required under this Lease, and their renewal or replacement, shall be delivered to Landlord promptly without demand upon the commencement of the term of this Lease and upon each renewal of the insurance. Such policy or policies shall also provide that it shall not be cancelled nor shall there by any change in the scope or amount of coverage of the policy without thirty (30) days prior written notice to Landlord. If same is not provided with ten (10) days after demand, Landlord is authorized to secure such policy from such companies as it deems appropriate and collect from Tenant in such a manner as it deems appropriate the cost of the premium. 30. SECURITY DEPOSIT (a) AMOUNT OF DEPOSIT Tenant will deposit a sum equal to the amount ofthe rent in the last month of the Lease with the Landlord before the commencement of this Lease. Such deposit shall be held by Landlord, without liability for interest, as security for the faithful performance by Tenant of all of the terms, covenants and conditions of the Lease by Tenant to be kept and performed during the term hereof. If at any time during the term of this Lease any of the rent herein reserved shall be overdue and unpaid, or any other sum payable by Tenant to Landlord hereunder shall be overdue and unpaid, the Landlord may, at the option of Landlord, appropriate and apply any portion of such deposit to the payment of any such overdue rent or other sum. C:\DOCUME~I\CMSM1.000\LOCALS~I\TEMP\NOTESFFF692\MARKET BUILDING FINAL LEASE ELIAS AZAR.DOC 8 (b) USE AND RETURN OF DEPOSIT In the event of the failure of Tenant to keep and perform any of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant, then the Landlord at its option may appropriate and apply the entire such deposit, or so much thereof as may be necessary, to compensate the Landlord for loss of damage sustained or suffered by Landlord due to such breach on the part of Tenant. Should the entire deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall, upon the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore such security to the original sum deposited, and Tenant's failure to do so within five (5) days after receipt of such demand shall constitute a breach of this Lease. Should Tenant complywith all of such terms, covenants and conditions and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by Tenant to Landlord hereunder, such deposit shall be returned in full to Tenant at the end of the Lease Term or upon the earlier termination of this Lease. 31. INDEMNIFICATION Tenant agrees to save and to protect, indemnify and hold Landlord harmless from and against and to reimburse Landlord from any and all liabilities, damages, costs, expenses, including, without limitation, reasonable attorneys' fees, causes of action, suits, claims, demands, or judgments of any nature whatsoever arising from injury to or death of persons or damages to property resulting from Tenant's use of the Premises caused by any act or omission, whether intentional or otherwise, of Tenant or its employees, servants, contractors or agents. 32. COMPLIANCE WITH LAWS AND REGULATIONS Tenant agrees to and will comply with all applicable federal, state and local laws, ordinances and regulations. Tenant acknowledges and agrees that it will dispose of trash and grease in the containers designated by the Landlord for such disposal and not dispose of such substances in a manner that would violate applicable federal, state and local laws, ordinances or regulations. 33. FORUM SELECTION AND CHOICE OF LAW By virtue of entering into this Lease, Tenant submits itself to a court of competent jurisdiction in the City of Roanoke, Virginia, and further agrees that this Lease is controlled by the laws of the Commonwealth of Virginia and that all claims, disputes, and other matters shall only be decided by such court according to the laws of the Commonwealth of Virginia. 34. FORCE MAJEURE In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war, or other reason of a like nature not the fault of the party delayed in performing the work or doing acts required under the terms of this Lease, then the time allowed for performance for such act shall be extended by a period equivalent to the period of such delay. The provisions of this Section shall not operate to excuse Tenant from the prompt payment of rent, Common Area Maintenance Fee or any other payments required by the terms of this Lease. 35. EQUAL EMPLOYMENT OPPORTUNITY: During the performance of this Agreement, Tenant agrees as follows: (a) Tenant will not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of its business. Tenant agrees to post in conspicuous places, available to employees and applicants for C;\DOCUME-I\CMSM 1.000\LOCALS~I \TEMP\NOTESFFF692\MARKET BUILDING FINAL LEASE - ELIAS AZAR,DOC 9 employment, notices setting forth the provisions of this nondiscrimination clause. (b) Tenant, in all solicitations or advertisements for employees placed by or on behalf of Tenant, will state that Tenant is an equal opportunity employer. (c) Tenant will include the provisions of the foregoing subsections (a) and (b) in every contract or purchase order of over ten thousand dollars and no cents ($10,000.00) so that the provisions will be binding upon each contractor or vendor. 36. DRUG-FREE WORKPLACE: (a) During the performance of this Agreement, Tenant agrees to (i) provide a drug-free workplace for its employees; (ii) post in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use ofacontrolled substance or marijuana is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition; (iii) state in all solicitations or advertisements for employees placed by or on behalf of Tenant that Tenant maintains a drug-free workplace; and (iv) include the provisions of the foregoing clauses in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each subcontractor or vendor. (b) For the purposes of this section, "drug-free workplace" means a site for the performance of work done in connection with a specific contract awarded to a contract awarded to a contractor, the employees of whom are prohibited from engaging in the unlawful manufacture, sale, distribution, dispensation, possession or use of any controlled substance or marijuana during the performance of the Agreement. 37. RULES ANDREGULATIONS Tenant agrees to comply and adhere to Landlord's rules and regulations concerning the Building as stated in the attached Exhibit "D" attached hereto and made part of this Lease 38. SlGNAGE Tenant agrees to comply and adhere to Landlord's regulations concerning signage as stated in the attached Exhibit "E" attached hereto and made part of this Lease. 39. GUARANTY By virtue of entering into this Lease, Tenant agrees to have executed the Guaranty contained in Exhibit "F" attached hereto and made part of this Lease. Such Guarantor(s) shall first be approved by Landlord in writing. Tenant agrees to provide information concerning Guarantor(s) to Landlord upon request. 40. ADDITIONAL RENT Tenant improvements, as stated in the attached Exhibit "G", paid for by the Landlord and amortized over 34 months total $72.00 per month in addition to base rent and Common Area Maintenance Fee. 41. BUSINESS HOUR MODIFICATION Landlord hereby grants to Tenant and exemption of business hours for a period of two-weeks for Tenant to take vacation. Tenant shall notify Landlord several weeks prior to taking this vacation of this intention to close the business, and Tenant shall post a public notice with a professional quality sign notifying his customers of this absence and his return date. C:\DOCUME~I \CMSM1.000\LOCALS~ 1 \TEM P~NOTES FFF692\MARKET BUILDING FINAL LEASE - ELIAS AZAR.DOC ~_o Witness Signature Witness Printed Name Witness Signature Witness Printed Name Witness Signature Witness Printed Name Witness Signature Witness Printed Name LANDLORD: CITY OF ROANOKE By: Print Name: Darlene Burcham Title: City Manaqer TENANT: ELIAS AZAR DBA AZAR IEWELRY. INC. By:. Print Name: Title: SS#231-59-4518 C:\DOCUME~I\CMSM1.000\LOCALS~l\TEMP~NOTESFFF692\MARKET BUILDING FINAL LEASE - ELIAS AZAR.DOC EXHIBIT A FLOOR PLAN C:\DOCUME~I \CMSM1 000\LOCALS-I\TEMP\NOTESFt:F692\MARKET BUILDING FINAL LEASE- ELIAS AZAR DOC 12 EXHIBIT B COMMON AREAS FLOOR PLAN Attached C:\DOCUME~I\CMSM1 O00\LOCALS~I \TEMP~NOTESFFF692\MARKI/I BUILDING FINAL LI~,SE - ELIAS AZAR DOC 13 EXHIBIT C MENU Attach here if Food Court Tenant C:\DOCUME-I\CMSM1 000\LOCALS~I\TEMP~NOTESFFF692\MARI(~r BUILDING FINAL LF~SE - ELIAS AZAR DOC 10. 11. EXHIBIT D RULES AND REGULATIONS All trash must be kept in a covered container, or if requested by Landlord, in a Dumpster or similar container furnished and serviced at Tenant's expense. Tenant shall keep lights on in show windows, leased food court space and lights on under marquee, if any, from 10:00 a.m. until 6:00 p.m. Tenant agrees to handle all deliveries and refuse through the Salem Avenue entrance (if one) of the Premises. No sign shall be permanently affixed to the plate glass of any window without prior written consent of Landlord. No solicitation material shall be displayed inside the building or affixed to the exterior of the building. Tenant shall keep Premise's, windows and window frames clean (inside and out) at all times and wash them weekly. Tenant shall keep Premises' floors free of trash, chewing gum and other debris, and shall scrub and wax all tile or plastic flooring at least weekly. Tenant is responsible for the replacement of light bulbs in its space Tenant is responsible for the replacement of air-filters and the monthly maintenance of their exhaust fans in its Premises by a licensed contractor on a basis predetermined by the Landlord. Tenant shall be responsible for breaking down and having all cardboard boxes ready for pick up. (Applies only to Food Court Vendors) Providing the availability of space for the purpose of storage, Landlord will allocate equally among all food vendors a set amount of space for the storage of a freezer or a refrigerator, food items and paper products. Items must be stored in accordance with Health and Fire codes. No restaurant equipment (unused or in disrepair) is to be stored in the area under any circumstances. Any prohibited items stored in this area will be removed at Tenant's expense. Tenant's not maintaining their own storage space per Health and Fire code requirements will be assessed a $100.00 fee per occurrence. If a Tenant's space is in violation more than three times in a given year, Landlord will rescind Tenant's option to use available space. C:\OOCUME~I\CMSM1 000\LOCALS-I\TEMP~NOTESFFF692\MARK~F BUILDING FINAL LEASE - ELIAS AZAR DOC 15 EXHIBIT E SIGN REGULATION No sign, advertisement or notice shall be inscribed, painted, affixed or displayed on walls, windows, or any part of the outside or the inside of the Building except on the awnings, directories, and then only in such place, number, size, color and style as it approved Landlord. If Tenant nevertheless exhibits such sign, advertisement or notice, Landlord shall have the right to remove the same and Tenant shall be liable for any and all expenses incurred by Landlord by such removal. Tenant further agrees to maintain such sign, awning, canopy, decoration, lettering, advertising matter or other thing as may be approved in good condition and repair at all times. Landlord shall have the right to prohibit any advertisement of Tenant which in its opinion tends to impair the reputation of the Building or its desirability as a high-quality festival marketplace for retail stores or food related businesses, other institutions of like nature, and, upon written notice from Landlord, Tenant shall immediately refrain from and discontinue any such advertisement. EXHIBIT F C:\DOCUM~.~1\CMSM1.000\LOCALS-1\TEMP~NOTESFFF692\MARKETBUlLDINGFINALLEASE ELIAS AZAR DOC 16 GUARANTY PERSONAL GUARANTEE All of the terms and conditions of this Lease, including but not limited to, the payment of all rents herein prescribed are personally guaranteed by: In order to induce ("Landlord"), to enter into that certain Lease Agreement dated (the "Lease") between Landlord and ("Tenant"), and in consideration of the benefits inuring to the undersigned (the "Guarantors") under such Lease, the receipt and sufficiency of which is represented by the Guarantors to Landlord to be sufficient and adequate, the Guarantors hereby unconditionally guarantee the performance of all of Tenant's obligations under the Lease, including, without limitation, the payment of rental as provided therein. This Guaranty shall remain in full force throughout the original Lease term and any renewals thereof. This Guaranty shall be binding upon Guarantors and Guarantors' heirs, legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. If there is more than one Guarantor, the liability of each Guarantor shall be joint and several. This Guaranty is a guaranty of payment and performance and not of collection. Guarantors hereby waive notice of acceptance of this Guaranty agreement and all other notices in connection herewith or in connection with the liabilities, obligations and duties guaranteed hereby, including notices to it of default by Tenant under the Lease, and hereby waive diligence, presentment, protest and suit on the part of Landlord in the enforcement of any liability, obligation or duty guaranteed hereby. Guarantors further agree that Landlord shall not be first or concurrently required to enforce against Tenant or any other person, any liability, obligation or duty guaranteed hereby before seeking enforcement thereof against Guarantor. The liability of Guarantors shall not be affected by any indulgence, compromise, settlement or variation of terms which may be extended to Tenant by Landlord, or agreed upon by Landlord or Tenant, and shall not be affected by any assignment or sublease by Tenant of its interest in the Lease, nor shall the liability of the Guarantors be affected by the insolvency, bankruptcy (voluntary or involuntary), or reorganization of Tenant, nor by the voluntary or involuntary liquidation, sale, or other disposition of all or substantially all of the assets of Tenant, or by the release of any other guarantor. Landlord and Tenant, without notice to or consent by Guarantors, may at any time or times enter into such modifications, extensions, amendments or other covenants respecting the Lease as they may deem appropriate, and Guarantors shall not be released thereby but shall constitute to be fully liable to the performance of all obligations and duties of Tenant under the Lease as so modified, extended or amended. Guarantors further agree (1) to indemnify and hold harmless Landlord from and against any claims, damages, expenses, or losses, including to the extent permitted by law, the reasonable fees of an attorney, resulting from or arising out of any breach of the Lease by Tenant or by reason of Tenant's failure to perform any of its obligations thereunder, and (2) to the extent permitted by law, to pay any costs or expenses, including the reasonable fees of an attorney, incurred by Landlord in enforcing this Guaranty. The Guarantors acknowledge that Landlord may assign its rights underthe Lease to an institutional investor as security for a loan to be made by such institutional investor to Landlord, and as long as any indebtedness of Landlord shall be outstanding and such assignment of the Lease shall exist, such institutional investor assignee shall be entitled to bring any suit, action or proceeding against the undersigned for the enforcement of any provision of this Guaranty, and it shall not be necessary in any such suit, action or proceeding to make Landlord a party thereto. This Guaranty may not be modified or amended with out the prior written C:\DOCUME~I\CMSM1.000\LOCALS~I\TEMP\NOTESFFF692\MARKET BUILDING FINAL LE~SE ELIAS AZAR.DOC consent of such assignee of Landlord's interest in the Lease, and any attempted modifications or amendment without such consent shall be void. All existing and future advances by Guarantors to Tenant and all existing and future debts of Tenant to any Guarantor shall be subordinated to all obligations owed to Landlord under the Lease and this Guaranty. Guarantors assume the responsibility to remain informed of the financial condition of the Tenant and of all other circumstances bearing upon the risk of Tenant's default, which reasonable inquiry would reveal, and agree that Landlord shall have no duty to advise Guarantors of information known to it regarding such condition or any such circumstance. Landlord shall not be required to inquire into the powers of Tenant or the officers, employees, partners or agents acting or purporting to act on its behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Each Guarantor hereby represents and warrants to Landlord that such Guarantor has received acopyofthe Lease, has read the opportunity to read the Lease, and understands the terms of the Lease. The provisions in the Lease relating to the execution ofadditionaldocuments, legal proceedings by Landlord against Tenant, severability of the provisions of Lease, interpretation of the Lease, notice, waiver, the applicable laws which govern the interpretation of the Lease and the authority of Tenant to execute the Lease are incorporated herein in their entirety by this reference and made a part thereof. Any reference in those provisions to "Tenant" shall mean each Guarantor and any reference in those provisions to the "Lease" shall mean this Guaranty. If any one or more of the provisions of this Guaranty shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Guaranty, and this Guaranty shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. This Guaranty shall be construed according to the laws of the state where the Premises are located (the "State"). By execution hereof, the undersigned specifically consent to this choice of law designation and consent that all actions or proceeds arising directly, indirectly or otherwise in connection with, out of, related in the State, and the undersigned (i) consent and submit to the in personam jurisdiction of any state or federal court located within the State, (ii) waive any right to transfer or change the venue of litigation brought against the undersigned, and (iii) agree to service of process, to the extent permitted by law, by mail. TO THE EXTENT PERMITTED BY APPLICABLE LAW, AND ACKNOWLEDGING THAT THE CONSEQUENCE OF SAID WAIVER ARE FULLY UNDERSTOOD, THE UNDERSIGNED HEREBY EXPRESSLY WAIVE THE RIGHT TO TRIAL BY JURY, THE RIGHT TO INTERPOSE ANY DEFENSE BASED UPON ANY STATUTE OF LIMITATION, ANY CLAIM OF LACHES AND ANY SET-OFF OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION IN ANY ACTION OR PROCEEDING INSTITUTED AGAINST THE UNDERSIGNED OR ANY OTHER PERSON LIABLE ON THE LEASE. IN WITNESS WHEREOF, Guarantor(s) have caused this instrument to be executed this day of ,2005. Social Security #: Social Security #: EXHIBIT G C:\DOCUME~I\CMSM1.000\LOCALS~I\TEMP\NOTESFFF692\MARKET BUILDING FINAL LEASE ELIAS AZAR.DOC 18 TENANT IMPROVEMENTS Landlord will deliver the Premises under the following conditions: 1. Frame-in two open doorways adjoining Suite 110 2. Install hot and cold water supply and waste line to Suite 110 3. Install sink (to be provided by Tenant) with two ground fault outlets 4. Remove existing carpet *Labor, materials and other fees are paid by the Tenant and amortized over 34 months. Tenant agrees to: 1. Install new flooring 2. Paint 3. Purchase sink *Tenant may only hire licensed and insured contractors and provide Landlord with such information prior to work commencing C:\DOCUME-I\CMSM1 000\LOCALS~I\TEMP~NOTESFFF6g2\MARKET BUILDING FINAL LEASE - ELIAS AZAR DOC 19 CITY OF ROANOKE OFFICE OF THE CITY MANAGER Noel C. Taylor Municipal Building 215 Church Avenue, S.W., Room 364 Roanoke, Virginia 2.4011-1591 Telephone: (540) 853-2333 ' Fax: (540) 853-1138 City Web: www.roanokeva.gov December 19, 2005 Honorable C. Nelson Harris, Mayor Honorable Beverly T. Fitzpatrick, Jr., Vice Mayor Honorable M. Rupert Cutler, Council Member Honorable Alfred T. Dowe,Jr., Council Member Honorable Sherman P. Lea, Council Member Honorable Brenda L. McDaniel, Council Member Honorable Brian J. Wishneff, Council Member Dear Mayor Harris and Members of Council: Subject: Request to Schedule a Public Hearing Background: The Elias Azar dba Azar Jewelry, Inc. has requested a lease for 418 square feet of space located in the City Market Building at 32 Market Square, Roanoke, Virginia 24011. The lease term requested is for a three-year period. A public hearing is required to consider this lease term. Recommended Action: Authorize the scheduling and advertising of this matter for a public hearing on January 3, 2006. Respectfully submitted, DLB:Ipp C: Mary F. Parker, City Clerk William M. Hackworth, City Attorney Jesse A. Hall, Director of Finance The Roanoke Times Roanoke, Virginia Affidavit of Publication The Roanoke Times MARY F. PARKER CITY OF ROANOKE CLERK'S OFFICE 215 CHURCH AVE SW RM 456 NOEL C. TAYLOR MUNICIPAL BLDG. ROANOKE VA 24011 REFERENCE: 32143302 08933045 NOTICEOFPUBLICHEARIN State of Virginia City of Roanoke I, (the undersigned) an authorized representative of the Times-World Corporation, which corporation is publisher of the Roanoke Times, a daily newspaper published in Roanoke, in the State of Virginia, do certify that the annexed notice was published in said newspapers on the following dates: City/County of Roanoke, Commonwealth/State of Virginia. Sworn and subscribed before me this ~_~_day of December 2005. Witness my hand and ~ffic~l seal. '/' · N ----L~l~.~_"~ ~", ~ ~ o tarv ~nblis / - ...... PUBLISHED ON 12/26 TOTAL COST: FILED ON: 140.76 12/26/05 approximately 42.8 squa e meetl.i to be h~ on M~ ~r ~ ~. ~) ~ NOTICE OF PUBLIC HEARING The City of Roanoke proposes to lease approximately 418 square feet of City-owned property in the Roanoke City Market Building, located at 32 Market Square, for use as office space to Azar Jewelry, Inc. for a term of three years. Pursuant to the requirements of§§l 5.2-1800 and 1813, Code of Virginia (1950), as amended, notice is hereby given that the City Council of the City of Roanoke will hold a public hearing on the above matter at its regular meeting to be held on January 3, 2006, commencing at 2:00 p.m., in the Council Chambers of the Noel C. Taylor Municipal Building, located at 215 Church Avenue, S.W., Roanoke, Virginia 24011. Citizens shall have the opportunity to be heard and express their opinions on said matter. If you are a person ~vith a disability who needs accommodations for this hearing, please contact the City Clerk's Office (853-2541), before 12:00 noon on Thursday, December 29, 2005. GIVEN under my hand this 20th day of December ,2005. Mary F. Parker, City Clerk. Note to Publisher: Please publish once in The Roanoke Times on Monday, December 26, 2005. Send Publisher's Affidavit and Bill to: Mary F. Parker, City Clerk 456, Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 K:\NOTICES\NL-AZAR JEWELY (MKT. BLDG.) 010306.DOC CITY OF ROANOKE Office of the City Clerk Mary F. Parker, CMC Stephanie M. Moon, CMC City Clerk Deputy City Clerk Sheila N. Hartman Assistant City Clerk January 5, 2006 File #60-70-236 Jesse A. Hall Director of Finance Roanoke, Virginia Dear Mr. Hall: I am attaching copy of Budget Ordinance No. 37279-010306 appropriating $2:[5,029.00 for the Fire Program Grant, and amending and reordaining certain sections of the 2005-2006 Grant Fund Appropriations. The abovereferenced measure was adopted by the Council of the City of Roanoke at a regular meeting which was held on Tuesday, January 3, 2006, and is in full force and effect upon its passage. Sincerely, Mary F. Parker, CMC City Clerk MFP:ew Attachment L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~genda correspondence 06Llan 06~Jan 3 cerrespondence.doc Jesse A. Hall January 5, 2006 Page 2 pc: Darlene L. Burcham, City Manager James L. Grigsby, Acting Assistant City Manager for Operations Sherman M. Stovall, Director, Office of Management and Budget David Hoback, Acting Chief, Fire-EMS L:\CLERK~DATA~CKEWI~AGENDA CORRESPONDENCE~agenda correspondence 06~Jan 06~Jan 3 correspondence.doc IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 3rd day of January, 2006. No. 37279-010306. AN ORDINANCE appropriating funding for the Fire Program Grant, amending and reordaining certain sections of the 2005-2006 Grant Fund Appropriations, and dispensing with the second reading by title of this ordinance. BE IT ORDAINED by the Council of the City of Roanoke that the following sections of the 2005-2006 Grant Fund Appropriations be, and the same are hereby, amended and reordained to read and provide as follows: Appropriations Expendable Equipment <$5,000 Training and Development Wearing Apparel Recruiting Regional Fire Training Academy Revenues 035-520-3335-2035 $ 70,029 035-520-3335-2044 10,000 035-520-3335-2064 70,000 035-520-3335-2065 5,000 035-520-3335-9073 60,000 Fire Program FY06 035-520-3335-3365 215,029 Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. ATTEST: ,"~ City Clerk. CITY OF ROANOKE Office of the City Clerk Mary F. Parker, CMC City Clerk January 5, 2006 File #60-70-236 Stephanie M. Moon, CMC Deputy City Clerk Sheila N. Hartman Assistant City Clerk Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham: I am attaching copy of Resolution No. 37280-010306 authorizing the City Manager to accept the FY2006 Fire Programs Funds Grant, in the amount of $215,029.00, made to the City of Roanoke by the Virginia Department of Fire Programs and authorizing execution and filing of any documents required by said grant. The abovereferenced measure was adopted by the Council of the City of Roanoke at a regular meeting which was held on Tuesday, January 3, 2006, and is in full force and effect upon its passage. Sincerely, Mary F. Parker, CMC City Clerk MFP:ew Attachment L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~agenda correspondence 06~Jan 06~Jan 3 correspondence.doc Darlene L. Burcham January 5, 2006 Page 2 pc: Jesse A. Hall, Director of Finance James L. Grigsby, Acting Assistant City Manager for Operations Sherman M. Stovall, Director, Office of Management and Budget David Hoback, Acting Chief, Fire-EMS L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~genda correspondence 06~Jan 06~Jan 3 correspondence.doc IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 3rd day of January, 2006. No. 37280-010306. A RESOLUTION authorizing the acceptance of the FY2006 Fire Programs Funds Grant made to the City of Roanoke by the Virginia Department of Fire Programs and authorizing the execution and filing by the City Manager of any documents required by the grant. BE IT RESOLVED by the Council of the City of Roanoke that: I. The City of Roanoke hereby accepts the offer made by the Virginia Department of Fire Programs of the FY2006 Fire Programs Funds Grant in the amount of $215,029. 2. The City Manager or the Assistant City Manager for Operations is hereby authorized to accept, execute, deliver and file on behalf of the City, after approval by the City Attorney, any documents required by the FY2006 Fire Programs Funds Grant. 3. The City Manager or the Assistant City Manager for Operations is further directed to furnish such additional information as may be required by the Virginia Department of Fire Programs in connection with the City's acceptance of the foregoing grant or with such project. ATTEST: City Clerk , ,: K:\Measures\Fire Program Grant 2005.doc CITY OF ROANOKE OFFICE OF THE CITY MANAGER Noel C. Taylor Municipal Building 215 Church Avenue, S.W., Room 364 Roanoke, Virginia 24011-1591 Telephone: (540) 853-2333 Fax: (540) 853-1138 City Web: www.roanokeva.gov Janua~ 3,2006 Honorable C. Nelson Harris, Mayor Honorable Beverly T. Fitzpatrick, Jr., Vice Mayor Honorable M. Rupert Cutler, Council Member Honorable Alfred T. Dowe, Jr., Council Member Honorable Sherman P. Lea, Council Member Honorable Brenda L. McDaniel, Council Member Honorable Brian J. Wishneff, Council Member Dear Mayor Harris and Members of City Council: Subject: Fire Programs Grant Background: The Fire Programs Fund was established by the General Assembly effective October 4, 1985, pursuant to section 38.1-44.1 of the Code of Virginia. The sunset clause requiring expiration of this fund July 1, 1990 was removed, thus, the City's annual allocation of state funds will continue indefinitely. Program guidelines require that funds received are non-supplanting and may not be used to replace existing local funding. Funds must be used in accordance with the provisions established by the State Department of Fire Programs. The City of Roanoke's FY06 allocation of $215,029 from the Department of Fire Programs was deposited into account 035-520-3335-3365 from the Department of Fire Programs. Considerations: The City's portion of the Roanoke Regional Fire-EMS Training Center debt service is $60,000, which is paid annually from this revenue source. Remaining grant funds will be used to purchase replacement turnout gear as needed, small supplies such as tools and helmets and other personal protective equipment. These supplies will be purchased in accordance with the provisions of the program. Mayor Harris and Members of City Council January 3, 2006 Page 2 City Council action is needed to formally accept and appropriate these funds, and authorize the Director of Finance to establish revenue estimates and appropriate accounts in the Grant Fund. Recommended Action: Authorize the City Manager to accept the grant, to accept and file any documents, approved as to form by the City Attorney, setting forth the conditions of the FY2006 Fire Programs Funds Grant, to furnish such additional information as may be required. Adopt the accompanying budget ordinance to establish a revenue estimate for Fire Program FY06 - State (035-520-3335-3365) and to appropriate funding in the amount of $215,029 in various expenditure accounts to be established by the Director of Finance in the Grant Fund. Respectfully submitted, Darlene L. Burcham City Manager DLB:tb C: Mary F. Parker, City Clerk William M. Hackworth, City Attorney Jesse A. Hall, Director of Finance James Grigsby, Acting Assistant City Manager, Operations David Hoback, Acting Fire-EMS Chief CM05-00184 CITY OF ROANOKE Office of the City Clerk Mary F. Parker, CMC Stephanie M. Moon, CMC City Clerk Deputy City Clerk Sheila N. Hartman Assistant City Clerk January 5, 2006 File #72 Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham: I am attaching copy of Resolution No. 37281-010306 authorizing the City Manager to adopt a revised policy pertaining to funding for non-profit organizations that request $25,000.00, or more, in future budget cycles, and repealing Resolution No. 37215-101705, adopted October 17, 2005, as more fully set forth in a letter from the City Manager addressed to the Council under date of January 3, 2006. The abovereferenced measure was adopted by the Council of the City of Roanoke at a regular meeting which was held on Tuesday, January 3, 2006, and is in full force and effect upon its passage. Sincerely, ~)4),4.2 Mary F. Parker, CMC City Clerk MFP:ew Attachment pc: Jesse A. Hall, Director of Finance Sherman M. Stovall, Director, Office of Management and Budget Frank E. Baratta, Budget Team Leader L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~agenda correspondence 06L Jan 06~Jan 3 correspondeoce.doc IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 3rd day of January,, 2006. ~o. 37281-010306. A RESOLUTION adopting a revised policy pertaining to funding for n. on-profit organizations that request $25,000 or more in future budget cycles, and repealing Resolution No. 37215-101705, adopted October 17, 2005. WHEREAS, after several months of discussion with public and private organizations that fund non-profit agencies, the City developed guidelines for non-profit organizations that request $25,000 or more in funding from the City which were adopted October 17, 2005, by the adoption of Resolution No. 37215 - 101705; and WHEREAS, certain revisions to the guidelines have been proposed by the City Manager in a letter to Council dated January 3, 2006. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that: 1. The City hereby adopts the revised policy as more particularly described in the City Manager's letter dated January 3, 2006, to City Council, containing certain guidelines to be adhered to when reviewing and approving funding for non-profit organizations that request $25,000 or more in future budget cycles. 2. Resolution No. 37215-101705, adopted October 17, 2005, is hereby repealed. ATTEST: City Clerk. CITY OF ROANOKE OFFICE OF THE CITY MANAGER Noel C. Taylor Municipal Building 215 Church Avenue, S.W., Room 364 Roanoke, Virginia 24011-1591 Telephone: (540) 853-2333 Fax: (540) 853-1138 City Web: www.roanokeva.gov January 3,2006 Honorable Honorable Honorable Honorable Honorable Honorable Honorable C. Nelson Harris, Mayor Beverly T. Fitzpatrick, Jr., Vice Mayor M. Rupert Cutler, Council Member Alfred T. Dowe, Jr., Council Member Sherman P. Lea, Council Member Brenda L. McDaniel, Council Member Brian J. Wishneff, Council Member Dear Mayor Harris and Members of City Council: Subject: Guidelines for Funding Non-Profit Organizations City Council previously adopted on October 17, 2005 criteria for funding non- profit organizations. The criterion on board member participation was not worded as agreed upon by the Funder's Circle and the Carillon Foundation. Board member participation will be changed from each board member has an annual average attendance rate of at least 75% to annual average board meeting attendance of 75% in the aggregate. Also, as a result of conversations with representatives from the Arts Council of the Blue Ridge, Council of Community Services, Human Services Advisory Board, and the Roanoke Arts Commission, additional revisions are being recommended. These revisions include changing the term "criteria" to "guidelines". This is intended to note specific requirements that agencies are expected to adhere to in applying for funding. While non-adherence to the guidelines will not necessarily prohibit an agency from receiving funds, adherence will be used as one of the key factors in determining the award of funding. Also, a threshold minimum request of $25,000 will be used for the application of the guidelines. Specifically, any agency requesting $25,000 or more will be Mayor Harris and Members of City Council December 19, 2005 Page 2 expected to adhere to the guidelines. The $25,000 threshold will be applied at the agency level, so individual program applications will be aggregated. The "semi-annual" reporting of results will be changed to "periodic" reporting of results. This is intended to provide the flexibility to report results on a more frequent basis if needed. Following is the corrected wording for adoption by City Council. The following guidelines apply to agencies that request $25,000 or more: ]. Organizations must develop a business plan that includes evidence of community involvement and outlines long-term plans for financial sustainability. 2. Boards of organizations must demonstrate engagement with their organization by certifying financial commitment at 100% and annual average meeting attendance at 75%. 3. Organizations must agree to an annual site visit and periodic reporting of results achieved through funds received. 4. Organizations in existence for two years or more with an annual budget of $50,000 must perform an annual audit. The City of Roanoke will be joined in this approach by Carillon Foundation and the Funders Circle. Other private foundations are also considering using these criteria in their funding process. All past recipients of city funds will be informed of these new requirements as soon as adopted. Recommendation: Adopt the guidelines as amended. Sincerely, Darlene L. Burcham City Manager DLB:sm C: Mary F. Parker, City Clerk Jesse A. Hall, Director of Finance William M. Hackworth, City Attorney CM05-0186 Rupert Cutler Notes for Roanoke City Council meeting Jan. 3, 2005 Agenda item 6.a.2., Adoption of guidelines for funding non-profit organizations. Mr. Mayor, I would like to take a little time to go into this agenda item in some detail. I support the adoption of these amended guidelines for funding non-profit organizations. I am glad we are amending them. I have received personal letters complaining about the original "criteria" adopted on October 17 from over 20 non-profit charitable agencies in our community since Council adopted them. That's highly unusual. Apparently, they need to be amended. More significantly, in my view, they should have been drafted with input from the affected non-profit agencies, and from representatives of our Council-appointed committees that dispense City grants to non-profits, before they came to Council for adoption, both to receive suggestions regarding substantive content but also as a sign of respect for our non-profit partners in providing for the needs of our citizens. I hasten to say that I respect the initiative taken by our mayor and our city manager to tighten the process by which City funds are transferred to the private sector. We are accountable to our taxpayers, and those to whom City grants are given must be accountable to us. Our taxpayers must know their taxes are accomplishing something useful for the good of all. But let's review a little basic civics. The needs of the citizens of Roanoke are met by three groups: By the business community that provides jobs and pays taxes; by government that provides for public safety, education, and other aspects of the public welfare; and by the charitable non-profit community that, largely through the work of volunteers, looks after both the well-being of those who need help and can't afford it, and those who desire museums, music, historic preservation and other important aspects of our quality of life--activities that neither the business community nor government can justify doing with shareholders' or taxpayers' money. I was out of town when Council adopted the original version on October 17. I was at a conference related to my responsibilities as a trustee of the Virginia Outdoors Foundation. Had I been here then, I would have voted to postpone their consideration. From my lifelong involvement in the not-for-profit sector, I sensed that the original version of these rules was not optimal. For example, they seemed to place a new and large burden on small groups requesting small amounts of financial aid. My uneasiness regarding the criteria was reinforced by letters of concern I began to receive from such groups as: The United Way of the Roanoke Valley The Arts Council of the Blue Ridge, representing our local museum and music organizations The chair of our own City Arts Commission Total Action Against Poverty Planned Parenthood of the Blue Ridge, Big Brothers Big Sisters, Blue Ridge Housing Development Corporation, Blue Ridge Independent Living Center, Blue Ridge Legal Services, Bradley Free Clinic, Brain Injury Services, CHIP, Council of Community Services, the Girl Scouts, LOA Area Agency on Aging, the Roanoke Valley Interfaith Hospitality Network, Roanoke Valley Speech and Hearing Center, and others. Though our City representatives had coordinated this criteria-drafting effort with the Carillon Foundation and the Funders' Circle, they had not sought informal input and reaction from representatives of the affected nonprofit providers before bringing the rules to Council for adoption. We have now addressed that shortcoming. Since October 17, there have been a meeting in this chamber at which the Manager explained the criteria, now called guidelines, where we heard the views of representatives of many nonprofits, and a meeting in the Council conference room that brought Mayor Harris and Mrs. Burcham together with the chairs of the two Council-appointed citizen committees that make funding decisions and the executives of the Arts Council of the Blue Ridge and the Council of Community Services, to knock out the clarifying amendments that we are about to adopt this afternoon. Those amendments include the following: Board member participation will be changed from requiring each board member to maintain an annual average attendance rate of at least 75% to an annual average board meeting attendance of 75% in the aggregate. The name of this document has been changed from "criteria" to "guidelines" to communicate that, while non-adherence to the guidelines will not prohibit an agency from receiving funds, adherence to them will be used as a key factor in determining the award of funds. Only requests of $25,000 or more must be accompanied by documentation promising to meet all the requirements in these guidelines, so that small groups with small grant requests will be exempt from having to produce a business plan, showing that 100% of their board have made financial contributions to the organization, agreeing to periodic site visits, and contracting for an annual audit of their books, as the larger groups requesting $25,000 or more will have to do. Mr. Mayor, the City has good reason to require groups that ask it for money to demonstrate that they have the capacity to handle it responsibly. We also owe those charitable institutions our thanks for the good work they do in our community. They should be treated, not as supplicants, but as partners in the care for the residents of our City. Thank you. Comments to Roanoke City Council Regarding Guidelines for Funding Nonprofit Organizations Tuesday, January 3, 2006 My name is Pam Kestner-Chappelear and I live at 6734 Peach Tree Circle in Roanoke County. I serve as President of the Council of Community Services located at 502 Campbell Avenue in the City of Roanoke; however, I appear before you today as a representative of a group of local nonprofits that have been concerned about the criteria for funding nonprofit organizations that were adopted by City Council on October 17, 2005. We have reviewed the changes proposed by City Manager Darlene Burcham and believe these changes to be helpful. Changing the term "criteria" to "guidelines" will reflect the intention that adherence to the guidelines is expected but "non-adherence to the guidelines will not necessarily prohibit an agency from receiving funds, adherence will be used as one of the key factors in determining the award of funding." This language change will encourage nonprofits to work towards adhering to the guidelines; however, it is our understanding that non-adherence will not disqualify nonprofits. Also creating a threshold minimum request of $25,000 to be used for the application guidelines will help smaller nonprofits. This has been a concern for many of us since small nonprofits may not have the resources available to meet some of the guidelines such as performing an annual audit. At this point in time, the impact of the guidelines is an unknown to us all. As we gain experience with these guidelines over the next couple of years, we hope there will be an opportunity to refine them. The development of a "task force" would be a possible vehicle to oversee the guidelines and their impact on the nonprofits and the services they provide. In fact, there is a precedent in place. Several years ago the City of Roanoke created a task force that developed the rental inspection program guidelines. Having a task force in place would ensure that all involved will have an opportunity for input resulting in funding guidelines that strengthen nonprofits and focus on the impact tax payer dollars is having on the lives of the citizens of Roanoke. If a task force is not developed, the nonprofit community respectfully requests that as the City takes future actions related to funding and/or the management of nonprofits that input is sought from representatives of the nonprofit community prior to policies or guidelines being implemented. ! greatly appreciate the opportunity share with you the perspective of many of the local nonprofits on the proposed guidelines for funding nonprofit organizations. JESSE A. HALL Director of Finance email: j essehall~ci.roanoke.va.u$ January 3, 2006 CITY OF ROANOKE DEPARTMENT OF FINANCE 215 Church Avenue, S.W., Room 461 P.O. Box 1220 Roanoke, Virginia 24006-1220 Telephone: (540) 853-2821 Fax: (540) 853-6142 ANN H. SHAWVER Deputy Director Honorable C. Nelson Harris, Mayor Honorable Beverly T. Fitzpatrick, Jr., Vice Mayor Honorable M. Rupert Cutler, Council Member Honorable Alfred T. Dowe, Jr., Council Member Honorable Sherman P. Lea, Council Member Honorable Brenda L. McDaniel, Council Member Honorable Brian J. Wishneff, Council Member Dear Mayor Harris and Members of City Council: Subject: November Financial Report I would like to take this opportunity to update Council on the upcoming bond sale. Council authorized issuance of $39,030,000 general obligation bonds for the following projects: Riverside Center Art Museum Civic Center Phase II Expansion Financial System Implementation Downtown West Parking Garage High School Facility Improvements (Patrick Henry High School) Countryside Golf Course Total $ 5,500,000 3,700,000 6,405,000 2,600,000 2,600,000 14,250,000 3,975,000 $39,030,000 We visited the three bond rating agencies in New York recently and provided an update on the many projects and activities that are ongoing in Roanoke, plans for future projects, as well as detailed financial information. We believe we had a very good story to tell, and are confident we will maintain our double A bond rating. We should receive our ratings in mid January 2006. Due to the nature of the Countryside project, those bonds were recently sold as taxable bonds via a private placement with a local bank, structured to give us maximum flexibility for repayment. Competitive bids will be received on the remainder of the bonds on January 26, with closing tentatively scheduled for February 8, 2006. In general we are still in a favorable interest rate environment and will apprise council of the details of the sale after we receive bids on the bonds. Honorable Mayor and Members of Council January 3, 2006 Page 2 Relative to the November financial report, the adopted budget for the fiscal year 2006 totaled $223.8 million representing a 5.7% increase over the previous year's adopted budget. This financial report covers the first five months of activity for fiscal year 2006. The following narrative provides commentary on the significant events of this period. Revenues Revenues through November 2005 increased 7.9% compared to the prior fiscal year, led by growth in real estate and the increased meals tax. Variances from the prior year are addressed as follows: General Property Taxes increased 7.1% as a result of growth in reassessments and new construction. The first installment of the real estate tax was due October 5th. This tax is expected to grow 9.3 % as a whole in FY 2006, and actual growth has followed this trend as collections of real estate tax are up 9.1%. Personal property taxes decreased through November; however, the majority of collections occur in the spring. Other Local Taxes increased 6.7% through November. The Prepared Food and Beverage tax rate increased from 4% to 5% effective July 1". Through November, this rate increase has provided approximately $667,000 in additional revenue and is expected to provide revenue growth of approximately $2 million throughout the fiscal year. Exclusive of the rate increase, Prepared Food and Beverage tax increased 4.3%, a positive trend in this tax. Sales tax increased 3.3% when adjusted for non-recurring collections in the prior year. Also indicative of a positive trend in our economy is 9.0% growth in the Transient Room Tax, which is influenced by positive performance at local hotels, as well as results from ongoing tax audits. Revenue from the Use of Money and Property increased significantly over the prior year as a result of interest income on the Budget Stabilization Reserve. The reserve was established in late FY05 by transfer from the Debt Service Fund. Grants-in-Aid Commonwealth increased 11.6% due it part to a timing difference in the receipt of monthly funding from the Commonwealth of Virginia Compensation Board. In November of FYO$, no payment was received from the State while two payments were received in December of that year. Additionally, AFDC Foster Care revenues increased over FY05. These revenues are directly related to an increase in reimbursable expenditures related to residential foster care, child placement, subsidized and special needs adoption, and adoption assistance services. Honorable Mayor and Members of Council January 3, 2006 Page 3 Expenditures The FY06 expenditure budget includes funding of approximately $].4 million to cover contracts and purchase orders made during FY05 but not paid by the end of that year. City Council approved re-appropriation of this funding when adopting the General Fund budget in May. General Fund expenditures as a whole increased 6.5%. There have been eleven payrolls on a year to date basis in fiscal year 2006, while there were ten payrolls through the same period of fiscal year 2005. The increase in the number of payrolls causes most departments' expenditures to increase in total in the current year. All departments are also affected by the 3% average pay raise granted to City employees beginning July 1, 2005. Additionally, a change in the billing methodology of the Fleet and Department of Technology (DOT) funds will affect user departments. Beginning in FY06, the General Fund will fund capital outlay for Fleet and DoT through a billing to user departments instead of by a General Fund transfer as in prior years. This will cause a decline in the Nondepartmental category and an offsetting increase in numerous other categories throughout FY06. Other variances between FY05 and FY06 are addressed as follows. General Government expenditures grew due to the aforementioned increases in the number of payrolls and internal service charges. Judicial Administration expenditures vary in part due to increased juvenile detention housing costs. While the City per diem has not increased this fiscal year, the number of juveniles housed by the Detention Commission has risen. Public Safety expenditures grew 13.2% in part due to increased Capital Maintenance and Equipment Replacement expenditures in the Police Department. Additionally, the Jail has experienced an increase in the cost of prison health services. Health and Welfare expenditures decreased 7.0% in the current year due to a timing difference in the encumbrance of the recently approved Health Department subsidy. Parks, Recreation and Cultural expenditures increased 25.9% in part due to the reclassification of Event Zone, Virginia Amateur Sports, and Downtown Roanoke Inc expenditures from Community Development to Parks and Recreation Administration. Additionally, there was a non-recurring expenditure for downtown holiday lighting. Nondepartmental expenditures declined 26.9% due to a decrease in the amount of undesignated fund balance transferred to the Capital Projects Fund. A decrease in the Honorable Mayor and Members of Council January 3, 2006 Page 4 transfer to Risk Management Fund also contributed to the decline. This decrease occurred due to a lower required funding allocation for the City's reserve for uninsured claims in the current year compare to the prior year. Sincerely, Director of Finance JAH:DLH:ca Attachments C: Darlene L. Burcham, City Manager William M. Hackworth, City Attorney Mary F. Parker, City Clerk Rolanda B. Russell, Assistant City Manager James Grigsby, Acting Assistant City Manager Sherman M. Stovall, Director of Management and Budget CiTY OF ROANOKE, VIRGINIA GENERAl. FUND STATEMENT OF REVENUE Revenue Source General Proper~y Taxes Other Local Taxes Permits, Fees and Licenses Fines and Fodeitures Revenue from Use of Money and Property Grants-in-Aid Commonwealth Grants-in-Aid Federal Government Charges for Services Internal Services Miscellaneous Revenue Total Year to Date for the Period Current Fiscal Year Percent of Revised Revenue July 1. November 30 July 1 - November 30 Percentage Revenue Estimate 2004-2006 2005-2006 of Change Estimates Received $ 30,500,782 $ 32,671,712 7.12 % $ 93,243,000 35.04% 16,094,248 17,170,656 6.69 % 65,801,000 26.09% 468,005 509,261 8.82 % 1,069,000 47.64% 571,672 566,965 -0.82 % 1,354,000 41.87% 334,676 482,716 44.23 % 722,000 66.86% 12,567,899 14,024,833 11.59 % 49,926,105 28.09% - % 38,000 0.00% 3,350,697 3,600,091 7.44 % 8,891,000 40.49% 801,209 802,711 0.19 % 2,527,000 31.77% 234~089 231,983 -0.90 % 384,000 60.41% $ 64~923~277 ..$ 70~0601928 7.91% $ 223~955rI05 31.28% STATEMENT OF EXPENDITURES AND ENCUMBRANCES Expenditures General Government Judicial Administration Public Safety Public Works Health and Werfare Parks, Recreation and Cultural Community Development Transfer to Debt Service Fund Transfer to School Fund Nondepartmental Total . $ Year to Date for the Period Current Fiscal Year Percent of July I - November 30 July 1 - November 30 Percentage Unencumbered Revised Budget 2004-2005 2005-2006 of Change Balance Appropriations Obligated 4,453,590 5,121,047 14.99 % $ 7,043,662 '$ 12,164,709 42.10% 2,390,494 2,756,731 15.32 % 4,248,045 7,004,776 39.36% 22,089,334 24,995,087 13.15 % 31,252,806 56,247,893 44.44% 10,619,971 10,985,382 3.44 % 12,599,923 23,585,305 46.58% 13,198,301 12,272,237 -7.02 % 18,495,918 30,768,155 39.89% 3,516,915 4,426,527 25.86 % 5,376,449 9,802,976 45.15% 2,567,879 2,807,963 9.35 % 2,929,293 5,737,256 48.94% 11,232,054 12,194,868 8.57 % 5,529,850 17,724,718 68.80% 22,056,263 23,539,646 6.73 % 31,705,508 55,245,154 42.61% 3,046,901 2,226,795 -26.89 % 7,930,183 10,156,978 21.92% 95~170r702 101~326~283 6.47% $ 127~111r637 $ 228~437r920 44.36% CITY OF ROANOKE, VIRGINIA CiViC FACILITIES FUND COMPARATIVE INCOME STATEMENT FOR THE FIVE MONTHS ENDING NOVEMBER 30, 2005 Operating Revenues FY2006 FY 2005 Rentals Event Expenses Display Advertising Admissions Tax Electrical Fees Novelty Fees Facility Surcharge Marketing Promotions Charge Card Fees Commissions Catering/Concessions Other Total Operating Revenues Operating Expenses Personal Services Operating Expenses Depreciation Total Operating Expenses Operating Loss Nonoperating Revenues (Expenses) interest on Investments Transfer from General Fund Transfer to Debt Service Fund Interest and Fiscal Charges Arena Ventures Contractural Penalties Miscellaneous Net Nonoperating Revenues NetLoss 2 185,942 48,630 41,335 83,501 4,845 16,388 61,914 17,628 7,644 260,710 5,094 733,631 825,025 600,273 232,912 1,658,210 (924,579) 20,793 ~7,809) (39,145) 133,585 732 68,156 $ (856,423) $ 236,821 75,787 52,546 196,488 10,915 45,686 107,719 7,915 46,901 37,620 322,315 11,934 1,152,647 743,925 720,793 199,435 1,664,153 (511,506) 14,541 42,324 (48,409) (39,717) 122,970 5,510 97,219 $ (414,287) CITY OF ROANOKE, VIRGINIA PARKING FUND COMPARATIVE INCOME STATEMENT FOR THE FIVE MONTHS ENDING NOVEMBER 30, 2005 Operating Revenues Century Station Parking Garage Williamson Road Parking Garage Market Square Parking Garage Church Avenue Parking Garage Tower Parking Garage Gainsboro Parking Garage Williamson Road Surface Lots Norfolk Avenue Surface Lot Gainsboro Surface Lot Church Avenue Surface Lot Bullitt Avenue Surface Lot Salem Avenue Surface Lot West Church/YMCA Surface Lots Total Operating Revenues Operating Expenses Operating Expenses Depreciation Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Interest on Investments Interest and Fiscal Charges Net Nonoperating Expenses Net Income FY 2006 $ 177,467 219,546 89,436 274,983 183,514 49,892 34,187 15,648 19,809 19,000 33,714 9,616 12,898 1,139,710 456,171 240,369 696,540 443,170 31,433 (125,067) (93,634) $ 349,536 FY 2005 $ 152,943 219,050 94,368 257,255 185,067 43,156 36,526 28,762 25,266 19,000 33,257 11,075 6,828 1,112,553 453,783 264,933 718,716 393,837 11,584 (134,356) (122,772) $ 271,065 3 CITY OF ROANOKE, VIRGINIA MARKET BUILDING FUND INCOME STATEMENT FOR THE FIVE MONTHS ENDING NOVEMBER 30, 2005 Operating Revenues Retail Space Rental Total Operating Revenues Operating Expenses Operating Expense Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Interest on Investments Miscellaneous Net Nonoperating Revenues Net Income (Loss) FY 2006 $ 110,406 110,406 105,849 3,231 109,080 1,326 1,697 130 1,827 $ 3,153 FY 2005 $ 92,874 92,874 112,525 3,165 115,690 (22,816) 154 154 $ (22,662) 4 CITY OF ROANOKE, VIRGINIA CITY TREASURER'S OFFICE GENERAL STATEMENT OF ACCOUNTABILITY FOR THE MONTH ENDED NOVEMBER 30, 2005 TO THE DIRECTOR OF FINANCE: GENERAL STATEMENT OF ACCOUNTABILITY OF THE CITY TREASURER OF THE CITY OF ROANOKE, VIRGINia FOR THE FUNDS OF SAID CITY FOR THE MONTH ENDED NOVEMBER 30, 2005. BALANCE AT BALANCE AT BALANCE AT FUND OCT 31, 2005 RECEIPTS DISBURSEMENTS NOV 30, 2005 NOV 30, 2004 GENERAL $22,128,731.66 $9,939,854.61 $17,260,480.58 $14,808,105.69 ($6,522,492.49) WATER 420.00 0.00 0.00 420.00 420.00 WATER POLLUTION CONTROL 1,738.22 0.00 0.00 1,738.22 1,738.22 CIVIC FACILITIES 4,038,769.15 266,368.20 619,611.26 3,685,526.09 8,428,832.88 PARKING 3,339,877.80 235,408.93 143,834.42 3,43t ,452.31 2,917,899.45 CAPITAL PROJECTS 53,550,928.82 166,738.18 4,937,947.96 48,779,719.04 62,657,798.98 MARKET BUILDING OPERATIONS 106,530.02 25,299.35 31,247.30 100,582.07 (43,518.00) CONFERENCE CENTER 3,795,537,62 56,686,12 4,761 ~41 3,847,462.33 3,972,038.20 DEBT SERVICE 838,922.56 410,23599 52,281 59 1,196,876.96 15,257,734.32 DEPT OF TECHNOLOGY 4,482,023,22 316,62241 250,70293 4,547,942.70 3,525,138.53 FLEET MANAGEMENT 1,275,242 72 259,20506 263~508 63 1,270,939.t5 (206,516.50) PAYROLL (13,256,284.40) 16,325,196.03 18,753,030.67 (15,684,119.04) (13,203,06150) RISK MANAGEMENT 11,280,167 37 1,023,469.97 834,009.88 t t,469,627.46 12.207,926.31 PENSION 447,068.91 1,555,949.23 1,862,458.11 140,560.03 620,923.13 SCHOOL FUND 6,535,942.09 7,378,830.71 7,329,813 48 6,584,989.32 5,136,272.34 SCHOOL CAPITAL PROJECTS 1,636,444 11 4,520,34648 2,142,46664 4,014,323.95 24,892,783.85 SCHOOL FOOD SERVICE 66,902.07 576,44860 348,89474 294,456.93 256,19717 GRANT 1,719,324,90 1,082,229 39 696,784.43 2,104,769.86 1,385,782.56 TOTAL $101,988,286.84 $44,138,889,26 $55,531,834 03 $90,595,342.07 $121,285,897.45 CERTIFICATE I HEREBY CERTIFY THAT THE FOREGOING IS A TRUE STATEMENT OF MY ACCOUNTABILITY TO THE CITY OF ROANOKE, VIRGINIA, FOR THE FUNDS OF THE VARIOUS ACCOUNTS THEREOF FOR THE MONTH ENDED NOVEMBER 30, 2005. THAT SAID FOREGOING: CASH CASH IN HAND CASH IN BANK INVESTMENTS ACQUIRED FROM COMPETITIVE PROPOSALS: COMMERCIAL HIGH PERFORMANCE MONEY MARKET COMMERCIAL PAPER LOCAL GOVERNMENT INVESTMENT POOL MONEY MANAGEMENT ACCOUNT REPURCHASE AGREEMENTS U. S. AGENCIES VIRGINIA AIM PROGRAM (U. S. SECURITIES) VIRGINIA SNAP PROGRAM (U. S. SECURITIES) TOTAL $9,69t.88 1,067,720.45 4,450,000.00 t ,970,055.56 16,74t,644.53 10,818,t87.35 6,000,000.00 14,605,987.71 2'1,486,634.38 13,446,450.2t $90,595,342.07 DECEMBER 19, 2005 EVELYN ~/. POWERS, TREASURER 5 CITY OF ROANOKE PENSION PLAN STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2005 Additions: FY 2006 FY 2005 Employer Contributions Investment Income Net Appreciation (Depreciation) in Fair Value of Investments Interest and Dividend Income Total Investment Income (Loss) Less Investment Expense Net Investment Income (Loss) Total Additions (Deductions) $ 2,884,006 13,100,614 1,138,199 14,238,813 87,904 14,150,909 $ 17,034,916 $ 2,347,638 12,198,081 1,132,536. 13,330,617 39,563 13,291,054 $ 16,638,692 Deductions Benefits Paid to Participants Administrative Expenses Total Deductions Net Increase (Decrease) Net Assets Held in Trust for Pension Benefits: $ 8,912,223 22,450 8,934,673 8,100,242 $ 8,349,782 28,030 8,377,812 7,260,880 Fund Balance July 1 Fund Balance November 30 318,675,367 $326,776,609 306,925,352 $314,186,232 6 CITY OF ROANOKE PENSION PLAN BALANCE SHEET NOVEMBER 30, 2005 Assets FY 2006 FY 2005 Cash Investments, at Fair Value Due from Other Funds Other Assets Total Assets $ 126,807 328,441,519 1,431 $ 328,569,757 $ 615,408 315,236,766 1,431 6,531 $ 315,860,136 Liabilities and Fund Balance Liabilities: Due to Other Funds Accounts Payable Total Liabilities Fund Balance: $ 1,794,148 1,794,148 318,675,367 8,100,242 326,775,609 $ 328,569,757 $ 1,672,538 1,366 1,673,904 306,925,352 7,260,880 314,186,232 $ 316,860,136 Fund Balance, July 1 Net Gain (Loss) - Year to Date Total Fund Balance Total Liabilities and Fund Balance 7 or Off, ce of the City Clerk Mary F. Parker, CMC Stephanie M. Moon, CMC City Clerk Deputy City Clerk January 5, 2006 Sheila N. Hartman Assistant City Clerk File #53-122 Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham and Mr. Hall: Jesse A. Hall Director of Finance Roanoke, Virginia At a regular meeting of the Council of the City of Roanoke which was held on Tuesday, January 3, 2006, Mr. Al Scanlan, 163! Center Hill Drive, S. W., raised questions with regard to the use of bond funds for high school stadia. The matter was referred to you for report to Council. MFP:ew Sincerely, ~..,Mary F. Parker, CMC City Clerk L:~CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~agenda correspondence 06~lan 06~Jan 3 correspondence,doc CITy.. OF ROANOKE Off, ce of the City Clerk Mary F. Parker, CMC City Clerk Stephanie M. Moon, CMC Deputy City Clerk January 5, 2006 Sheila N. Hartman Assistant City Clerk File #72 Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham: At a regular meeting of the Council of the City of Roanoke which was held on Tuesday, January 3, 2006, the question of appointment of a task force to ensure that nonprofit organizations will have input regarding funding guidelines was referred to you for report to Council, MFP:ew Sincerely, L:\CLERK~DATA\CKEWI~AGENDA CORRESPONDENCE~agenda co~espondence 06~Jan 06~lan 3 correspondence.doc MARY F. PARKER, CMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S.W., Room 456 Roanoke, Xr~rginia 24011-1536 Telephone: (540) 853-2541 Fax: (540) 853-1145 E-mail: clerk @ ci.roanok¢.va.us January 5, 2006 File #15-178 STEPHANIE M. MOON, CMC Deputy City Clerk SHEILA N. HARTMAN Assistant City Clerk Mr. Joseph W. Lee, III 315 25'h Street, S. W~ Roanoke, Virginia 24014 Dear Mr. Lee: At a regular meeting of the Council of the City of Roanoke which was held on Tuesday, January 3, 2006, you were appointed as a Commissioner of the Roanoke Redevelopment and Housing Authority, to fill the unexpired term of Mornique E. Smith, resigned, ending August 31, 2008. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which may be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 3:15 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Sections 2.2-3114 and 2.2-3115, Code of Virginia (1950), as amended, I am required to furnish members of the Roanoke Redevelopment and Housing Authority with a Financial Disclosure Form. State Code provisions require that all disclosures must be filed and maintained as a matter of public record for a period of five years in the Office of the Clerk of the governing body. Please complete and return the enclosed form to the undersigned prior to assuming the duties of your office. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each appointee is required "to read and become familiar with provisions of the Act." Mr. Joseph W. Lee, III January 5, 2006 Page 2 On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a Commissioner of the Roanoke Redevelopment and Housing Authority. Sincerely, Stephanie M. Moon, CMC Deputy City Clerk SMM:ew Enclosures pc: John P. Baker, Executive Director, Roanoke Redevelopment and Housing Authority, P. O. Box 6459, Roanoke, Virginia 24017-0359 COMMONWEALTH OF VIRGINIA ) ) To-wit: CITY OF ROANOKE ) I, Stephanie M. Moon, Deputy City Clerk, and as such Deputy City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the third day of January, 2006, JOSEPH W. LEE, III, was appointed as a Commissioner of the Roanoke Redevelopment and Housing Authority, to fill the unexpired term of Mornique E. Smith, resigned, ending August 31, 2008. Given under my hand and the Seal of the City of Roanoke this fifth day of January., 2006. Deputy City Clerk MARY F. PARKER, CMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S.W., Room 456 Roanoke, Virginia 24011-1536 Telephone: (540) 853-2541 Fax: (540) 853-1145 E-mail: clerk @ ci.roanok¢.va.us STEPHANIE M. MOON, CMC Deputy City Clerk SHEILA N. HARTMAN Assistant City Clerk January 5, 2006 File #15-110-488 Ms. Carol J. Jenson 8 N. Jefferson Street, S. W., #S04 Roanoke, Virginia 24016 Dear Ms. Jenson: At a regular meeting of the Council of the City of Roanoke which was held on Tuesday, January 3, 2006, you were appointed as a member of the Roanoke Neighborhood Advocates, to fill the unexpired term of Earnest C. Wilson, ending June 30, 2007. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which may be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to Serving in the capacity to which you were appointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each appointee is required "to read and become familiar with provisions of the Act." Ms. Carol J. Jenson January 5, 2006 Page 2 On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a member of the Roanoke Neighborhood Advocates. Sincerely, Stephanie M. Moon, Deputy City Clerk SMM:ew Enclosures pc: Robert A. Clement, Jr., Neighborhood Services Coordinator, Roanoke Neighborhood Partnership COMMONWEALTH OF VIRGINIA) ) CITY OF ROANOKE ) To-wit: I, Stephanie M. Moon, Deputy City Clerk, and as such Deputy City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the third day of January, 2006, CAROL J. JENSON was appointed as a member of the Roanoke Neighborhood Advocates, to fill the unexpired term of Earnest C. Wilson, ending June 30, 2007. Given under my hand and the Seal of the City of Roanoke this fifth day of January, 2006. Deputy City C!erk