CITY OF SALISBURY, MARYLAND

CITY COUNCIL MEETING MINUTES SEPTEMBER 28, 1998 MEETING #19

PRESENT

Mayor Barrie P. Tilghman
Council President Palmer Gillis
Council Vice President Robert Cannon
Councilwoman Lavonzella Siggers
Councilman Frank Himelright

IN ATTENDANCE

CONVENING - APPROVAL OF MINUTES AUGUST 24, 1998

The Mayor and Council met in regular session at 7:00 p.m. in Council Chambers. The Lord's Prayer was repeated and the Pledge of Allegiance was recited. Council President Gillis called the meeting to order. On a motion by Mr. Ireton and seconded by Ms. Siggers, the minutes of August 24, 1998 were unanimously approved.

ORDINANCE NO. 1695 - 2ND READING - AMENDING ORDINANCE 1676 - DUPLICATION OF ARTICLE AND CHAPTER NUMBERS

Ms. Siggers motioned and Mr. Ireton seconded to approve Ordinance No. 1695 to bring it on the floor for discussion. Ordinance No. 1695, as presented by City Solicitor Paul Wilber, renumbers Article XVIII of the Salisbury Municipal to XXVII to correct a duplication of numbers.

Ordinance No. 1695 for second reading passed unanimously.

RESOLUTION NO. 614 - CHANGE IN ENTERPRISE ZONE ELIGIBILITY REQUIREMENTS

Council President Palmer Gillis excused himself from the discussion of this item due to a conflict of interest. Council Vice President Robert Cannon presided over the discussion. Mr. Himelright motioned and Mr. Ireton seconded to approve Resolution No. 614 to bring it on the floor for discussion.

Executive Officer John Pick presented Resolution No. 614 as a resolution changing the requirements for business eligibility for Enterprise Zone benefits to allow businesses to qualify for the benefits if they increase the assessed value of their property by $20,000 or if they create two new jobs. The original recommendation was to change the requirements to reflect a minimum capital investment of $50,000 or the creation of five new jobs. During Council's August 19, 1998 work session, Council agreed to the $50,000 minimum capital investment, but preferred to set the job creation standard at two new jobs. However, in a conversation with Jerry Wade, coordinator of the State's Enterprise Zone program, Mr. Pick was advised for Council to consider the assessed valuation of the property instead of expressing the minimum capital investment standard. Using this approach would relieve the City of the responsibility of making judgements as to whether an individual developer had actually made a certain minimum capital investment on the property. The burden of determining whether the investor met the requirement would shift to the assessors.

In discussing this issue, Council felt it was easier to place a $50,000 minimum capital investment rather than using the $20,000 increased assessed value criteria. Mr. Dave Ryan, SWED Director, encouraged Council to consider the $50,000 minimum capital requirement. Ms. Siggers suggested using and/or the creation of two new jobs.

After further discussion, Mr. Himelright motioned to amend Resolution No. 614 by 1) changing the NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Salisbury paragraph to read: that the requirements for eligibility for benefits of the Salisbury-Wicomico Enterprise Zone be changed to provide that businesses can qualify by a minimum capital investment of $50,000 and/or by creating two (2) new jobs; and 2) to reflect this change in the heading of the resolution. Ms. Siggers seconded the motion and the amendment passed unanimously. Resolution No. 614, as amended, passed unanimously.

REVOLVING LOAN FUND REQUEST FOR CHESAPEAKE EAST

Ms. Siggers motioned and Mr. Ireton seconded to approve the revolving loan fund request for Chesapeake East to bring it on the floor for discussion. Since Council President Gillis excused himself from the discussion due to a conflict of interest, Council Vice President Cannon presided over the discussion.

Executive Officer John Pick briefed Council on the revolving loan fund request by Chesapeake East to help finance their renovation of the Franklin Hotel. The $50,000 loan (6 1/2% interest rate), would be secured by a third deed of trust on the Hotel property and a first deed of trust on the parking lot property. The loan would be backed by the personal guarantees of John Orth and Dana Simson. The Banking Committee reviewed the project and recommended that the loan be approved. Mr. Orth noted that the $50,000 represents about 1/5th of the total financing for the project.

After further discussion, Mr. Himelright motioned to table the request in order to address additional questions. Ms. Siggers seconded the motion to table. Ms. Siggers, Mr. Himelright and Mr. Ireton voted aye to table and Mr. Cannon nay.

(Council President Gillis returned and presided over the balance of the meeting.)

RESOLUTION NO. 615 - APPROVING COMCAST CABLE RATES

Ms. Siggers motioned and Mr. Ireton seconded to approve Resolution No. 615 to bring it on the floor for discussion. Resolution No. 615, as introduced by City Solicitor Paul Wilber, approves the rate decrease for limited basic service and an adjustment to equipment rates and installation charges proposed by Comcast's rate filing of August 1, 1998.

Mr. Tom Worley, representing Comcast, related that limited basic decreases by $1.50, whereas expanded service increases $.78.

After further discussion, Resolution No. 615 passed unanimously.

MANUFACTURING TAX EXEMPTION REQUEST - BAYLINER MARINE

Finance Director Roger Baskerville presented Bayliner Marine's request for an exemption from taxation on manufacturing equipment purchased in calender year 1997. Since they meet the Charter requirements of Section SC7-45, Mr. Baskerville recommended that a five year exemption be granted for equipment purchased in calendar year 1997, beginning with tax year July 1, 1998 through June 30, 1999. The exemption equates to approximately $7,237 over the next five years.

After a brief discussion, Ms. Siggers motioned to approve Bayliner Marine's manufacturing tax exemption request. Mr. Ireton seconded and the vote was unanimous.

RECOMMENDATIONS FOR APPOINTMENTS TO HISTORIC DISTRICT COMMISSION

Mayor Tilghman recommended the reappointment of Keith Iott to serve another term of three years (expiring October 2001). Scott Rogers, an architect with Davis, Bowen & Friedel, was also recommended to serve a three year term (expiring August 2001). Mr. Rogers would replace Ernie Olds who declined to serve another term. Both candidates, as required, are city residents.

Ms. Siggers expressed her previous concerns that the public should be informed of the vacancies before the terms expire.

Mr. Himelright motioned to accept the nominees as recommended by Mayor Tilghman. Ms. Siggers seconded and the vote was unanimous.

AWARD OF BIDS

The following items were presented for approval by Purchasing Director Carol Turner, C.P.M., CPPB:

1. Professional Services (001-1701-515.33-01; 601-3801-531.33-01)
2. Contract No. A-9-99 EMS/Fire Department Uniforms
(001-2405-522.20-83; 605-2610-523.20-83)
Eastern Shore Uniforms $ 15,569.75
3. Contract No. A-12-99
Street Materials: Borrow Excavation & Topsoil
(001-3205-532.60-06; 601-3705-532.43-04)
P & A Engineering $ 20,468.00
4. Contract No. A-14-97 Renewal City-wide office supplies (various accounts)
Corporate Express $ 25,000.00
5. Contract No. 21-98-SW; Change Order No. 2 East Isabella Street Storm Water Drain Replacement (001-3205-532.43-03)
American Paving Corporation $ 26,572.00
6. Contract No. A-15-99 Police Uniforms
(001-2115-521.20-83; 001-2105-521.30-83)
FF& A Jacobs & Sons, Inc. $ 27,220.75
7. Contract No. A-6-99 Street Materials: Stone
(001-3205-532.60-06; 601-3705-532.43-04; 601-4105-532.43-04)
Black Dog Stone $ 55,137.50
8. Contract No. A-7-99 City-wide Curb, Gutter, Sidewalk & Patching
(001-3205-532.43-04)
Malone & Phillips $160,032.50

After discussion, because of concerns/questions associated with items 2, 3, 4, 6 and 8 (i.e., low number of vendors responding to bids, possibility of limiting the number of bidders based on the specs provided, vendors not receiving bid packages), Mr. Himelright motioned to table these items. Mr. Cannon seconded the motion. All voted in favor of tabling these items with the exception of Mr. Gillis who voted nay. Mr. Cannon motioned to approve items 1, 5 and 7. Mr. Himelright seconded and the vote was unanimous.

MAYOR'S COMMENTS

Mayor Tilghman indicated she will address Ms. Siggers' concerns with making the committee vacancies known to the public and will meet with Mr. Himelright to discuss his concerns with the purchasing process.

PUBLIC COMMENTS

Mr. Robert Taylor inquired as to the time period for Robert Eaton's bill, confirmation of taxpayers suit against the City in regards to the Cockey bill and Coulbourn Dykes - job status, salary, budget account for salary. In regards to the Canal Woods issue, Mr. Taylor suggested that it be turned over to Mr. Ruark for him to defend since he is the property owner.

Mrs. Turner reported that Robert Eaton's bill included the time period of August 1 through August 31, 1998. Mr. Wilber confirmed that Mayor Tilghman received a notice of a claim from William Duvall who stated that he represents the taxpayers of the City of Salisbury regarding the payment of the bill to Cockey, Brennan & Maloney. Since this may potentially lead to litigation, Mr. Wilber did not believe it was appropriate for him or the Mayor to comment further. The City Council was not mentioned in the letter. In regards to the Dykes issue, Finance Director Baskerville reported that Dykes' salary comes out of the police salary account. Mayor Tilghman explained that Dykes is an employee of the police department and will retire February 15, 1999. He is available on a consultant basis for whatever purpose is needed either by her or the police department.

Mr. Tony Sarbanes commented on the questions raised during the award of bids. From his purchasing experience over the years, obtaining five vendors was good. He advised to watch for quality when purchasing and questioned if the prices would stay firm in light of the delay. Mr. Sarbanes agreed that it was a good idea to publish a list of committees and the vacancies when they become available.

A discussion ensued concerning the payment of the Cockey, Brennan & Maloney bill and the manner in which it was paid. A suggestion was made by Council Vice President Cannon to have a professional mediator render a third party decision in which all parties would agree to live by. He asked that Council consider this proposal and, if acceptable by Council, propose it to the Mayor and Mr. Cockey for their consideration.

Ms. Siggers suggested that Council consent to allow the public to listen to a particular closed meeting tape where the Council took possession of Mr. Cockey's work. She was also willing for the public to listen to all the tapes. Mr. Gillis was also willing for anyone from the public to listen to all the tapes as he knew what events happened, what the Mayor agreed to and what Council agreed to in all the situations.

City Solicitor Paul Wilber reported that there were two separate issues in their legal opinion. On the first issue, the authority to hire, there was no authority. The second issue was whether there was a duty to pay some figure for the investigative work by Mr. Cockey and his firm. Based on the usage by Mr. Murray (90%), they felt there was a basis to pay some amount, but they did not specify an amount. Mr. Gillis noted, however, that Council was never given an opportunity to act on the formal legal opinion.

Mayor Tilghman commented that she had been given legal counsel not to comment on the decision to pay the legal bill. In regards to the Dykes issue, Mayor Tilghman related that during her July 15th press conference she stated that what started as a personnel matter was also concluded as a personnel matter. Because of the terms of the agreement, no information may be released unless required by law. It was under the advice of the City's legal counsel that she not speak of any particulars of the case.

With no further business, the meeting adjourned at 8:48 p.m.

City Clerk

Council President