water valve in the heater hoses
Water circulates all the time in a non-A/C a-body. To regulate heat there is a door inside the heater box that will either pass air over the heater core or you can blend cold air from the outside to tone down the heat. The door will also close off air going to the heater core if no heat is wanted.
It scares me that the dealership does not know this, although most techs are younger only know the newer stuff and don't have a clue about the older stuff.
Chuck