CITY OF SALISBURY, MARYLAND

CITY COUNCIL MEETING MINUTES JUNE 14, 1999 MEETING #11

PRESENT

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

IN ATTENDANCE

CONVENING - LORD'S PRAYER

The Mayor and Council met in regular session at 7:10 p.m. in Council Chambers. Council President Robert Cannon called the meeting to order and the Lord's Prayer was repeated.

PROCLAMATION - NATIONAL FLAG DAY PLEDGE OF ALLEGIANCE

Mayor Tilghman read a proclamation proclaiming June 14, 1999 as National Flag Day in the City of Salisbury and all the attendees joined the Mayor and Council in reciting the Pledge of Allegiance.

APPROVAL OF MINUTES - MAY 24, 1999

On a motion by Ms. Siggers and seconded by Mr. Ireton, the minutes of May 24, 1999 were unanimously approved.

PUBLIC HEARING - CONSTANT YIELD TAX RATE

Executive Officer John Pick explained that the City Council is required by State law to conduct a constant yield tax rate public hearing during the budget adoption process in any year in which the proposed tax rate exceeds the constant yield tax rate. The State calculated the City's constant yield tax rate as $1.60. The City's current rate is $1.65 and Council in their budget included a two cent tax reduction making the tax rate $1.63.

Ms. Siggers expressed that she was not in support of a tax decrease. In her view, the $5.15 per property was not worth it considering what the $120,000 could be used for in the community and to protect the quality of life. Ms. Siggers referred to the $20,000 community lighting project and the Fire Department's request for three thermal imaging cameras ($60,000). Those persons who owned a lot of property would reap a great amount of benefit from this tax reduction whereas the community may not be the benefactor. She was also concerned with the Finance Department not getting the accountant as requested.

Mr. Cannon commented that we are receiving five cents per $100 of assessed value more than the constant yield rate and, therefore, that is equivalent to a tax increase of five cents. In his view, we need to evaluate what monies we have and how it should be spent.

Mr. William Briddell of Emerson Avenue did not believe it made sense to cut taxes two cents if services were going to be cut. We should use the money wisely and leave the tax rate as is.

ORDINANCE NO. 1723 - 2ND READING - PROPOSED FY2000 BUDGET

Mr. Himelright motioned and Mr. Ireton seconded to approve Ordinance No. 1723 to bring it on the floor for discussion. Executive Officer John Pick gave a brief summarization of the items included in the $26,782,548 budget. Mr. Pick asked Council for a motion to approve the amended budget ordinance for discussion purposes. Ms. Siggers motioned and Mr. Gillis seconded to approve Ordinance No. 1723, as amended, to bring it on the floor for discussion.

Mr. Cannon gave an overview of items Council agreed to in the budget process by a majority vote. A few of the highlighted items included funding a 5% pay raise for employees to bring in line with the Hendrick's study, approving enhanced State Retirement plan for employees, approval of four new positions, reduction of overtime account in police department from $165,000 to $115,000, restoring $140,000 for road repairs, approval of a new thermal imaging camera, increasing EMS fees 26%, reducing cable franchise fee, restructuring Mayor's Contingency Fund to a City Contingency Fund, and reducing tax rate by two cents.

Mr. Himelright motioned to amend the amended Ordinance No. 1723 by deleting the generator for Station #2 ($34,000), add to the budget two thermal imaging cameras ($40,000) and the difference of $6,000 be taken from the Contingency Fund. The motion died for lack of a second. Mr. Cannon acknowledged that Council agreed the Fire Department could shift its funding to purchase the three cameras (eliminate the generator and find $6,000 from another source).

Mr. Ireton expressed his appreciation to the Council and City staff for helping him through the budget. He was pleased with the 5% pay increase and the enhanced State Retirement plan for employees, putting money back in for the roads program, reducing taxes by two cents and being able to set aside $200,000 in the water and sewer budget for any infrastructure emergencies.

Ms. Donna Vernon of Naylor Street was concerned with having a reliable generator for Station #2 and with only having one thermal imaging camera for the entire department. Mr. Cannon reiterated that money was still in the budget, but the decision rests with the department on whether they purchase a new generator or purchase three thermal imaging cameras. Mr. Himelright reported that he spoke against the two cent tax reduction. One cent of the money equates to $64,000. The City could buy two thermal imaging cameras and still have money left over. If we took the other cent, a generator for Station #1 could be purchased. He questioned who was going to make the decision on where the one camera goes. Mr. Himelright opined that it could lead to a potential lawsuit if a fire was on one end of town, but the camera was on the other end of town and that person could not get there in time to safe a life.

Ms. Siggers thought the cameras could be a factor between life and death and the generator was fifty years old. She did not believe Council had been responsible in providing for the needs of the community.

Mr. Robert Ryan thought Mr. Himelright's point was valid and believed there should be a backup thermal imaging camera. He questioned why the City Clerk's budget rose 20% per year over the past few years. Mr. Cannon explained that over the past three years accounts have been shifted around (i.e., retirement, workers comp). Mr. Gillis pointed out that the Finance Department has been trying to get a more accurate representation on what each department cost. This is being done with all departments, but since the City Clerk's department is so small it stands out.

Mr. Richard Insley applauded Council's efforts to curtail the rate of increase of government spending. He had nothing against the thermal imaging cameras, but suggested that the Fire Department needed to prioritize.

Volunteer Fireman Gary Comegys commented that the thermal imaging cameras were very important in their job. In his opinion, the citizens deserve whatever technology is available to save lives in our community even if it means keeping the current tax rate.

Mr. Travis Terrell complimented Council on reducing taxes and did not believe it was threatening the lives in the City. Ms. Mary Ashanti expressed her concerns with only have one camera for the entire City. She suggested cutting money elsewhere where it would not impact life safety in order to have a camera at each of the fire stations.

Mr. Gillis referred to the Fire Headquarters building which last year had been cited with structural defects that could cause a life safety problem. Council put money in the budget for the repairs ($25,000). He preferred leaving it in the hands of the professionals in the Fire Department whether or not to purchase three cameras.

In Ms. Siggers opinion, Council did not give the Fire Department the go ahead to buy three cameras even after they gave demonstrations. The Fire Department is now being placed in a situation to purchase either the cameras or a generator. As for the roads program, the roads are done as Public Works can do them and some have been carried over from year to year. Even with the Public Works Director explaining this, and coupled with the Northeast Collector Road project, Council was still determined to make an issue of putting money back in for roads. Ms. Siggers reiterated her non-support of a two cent tax reduction. In her opinion, it was not prudent and the general public would not benefit from the tax reduction. In addition, cutting the cable franchise fee was poor stewardship.

Mr. Himelright acknowledged that he was originally against buying all three cameras, but had since changed his mind. He related that he was the only one during budget sessions who spoke against the decrease in taxes.

Mr. Richard Insley commented that if tax increases are administered fairly, then they should assume that tax decreases are administered fairly as well. He was willing to donate his tax savings on his properties to the City towards purchasing the thermal imaging cameras.

In response to Mr. Michael O'Laughlin's inquiry concerning the unfunded positions, Mr. Ireton related that the department head was asked to prioritize the positions and make a recommendation since Council had decided all could not be filled. Ms. Siggers addressed the fact that Council did go through a difficult task in discussing new positions. However, in the Finance Department, a new accountant position was desperately needed to carry the load in the Finance Director's absence and was even recommended by our auditing firm. Mr. Cannon pointed out that a new account clerk was approved for the Finance Department. Mr. Himelright acknowledged he voted against some of the new positions because of having to carry those salaries from year to year. He preferred hiring a consultant for certain projects rather than putting someone else on payroll.

Ms. Becky Swartz of Decatur Avenue inquired, in light of the decrease in overtime monies for the police department, if officers would be present in the Church Street and Doverdale areas as in the past. Ms. Swartz also asked about lighting in some of the areas, particularly in the Jefferson Street area. Mr. Gillis believed there was sufficient money in the budget. Acting Chief Ed Guthrie commented that he may have to look at reallocating personnel from other areas. Ms. Siggers noted there were several areas throughout the City in need of lighting, but she pointed out that funds for lighting were cut in the budget by Council.

Ms. Debbie Campbell of Camden Avenue was appreciative that money was put back in the budget for road repair. Mr. Michael Blair of New York Avenue viewed the two cents as an investment in the City and the community. In his opinion, several things could be done with the two cents such as upgrading lighting. He also questioned why Council was second guessing the Police Department in their policy of using overtime.

Mr. William Briddell asked for clarification on the 5% employee pay raise. Messrs. Cannon and Gillis explained that this was a result of the Hendrick's study which revealed that City employees' salaries fell 10-12% below other comparable municipalities. Rather than give that whole increase in one year, Council spread it over two years, and from this point forward, raises will be on merit performance.

Mr. Michael Day expressed his concern with cutting community promotions which will have an impact on the youth in our community.

Mr. Gillis thanked the Mayor and Administration for getting the budget to Council on time. In the budget, $60,000 was included for traffic signals and he hoped that the users who created the need for the signals would help offset some of the cost. Also included in the budget was a fifteen year bond issue and monies added to the Moody's reserve fund. In regards to the two cent tax reduction, Mr. Gillis reported that Salisbury has the third highest aggregate tax rate on the Eastern Shore. He believed Council was doing the right thing in reducing the tax rate. In addition, funding was also included to have a City-wide referendum for the next election to address issues such as the Charter Review Committee recommendations or any other issues that may arise. This will enable District I to be included in the referendum. Ms. Siggers clarified that one of the issues was Council-Manager form of government.

On the motion to approve Ordinance No. 1723 as amended for second reading, all voted in favor with the exception of Ms. Siggers who voted nay.

ORDINANCE NO. 1725 - 1ST READING - REVISING WATER AND SEWER RATES

Mr. Himelright motioned and Mr. Ireton seconded to approve Ordinance No. 1725 to bring it on the floor for discussion. Ordinance No. 1725, as introduced by Executive Officer John Pick, amends Sections 13.08.130 and 13.08.140 of the Salisbury Municipal Code by revising and increasing the top tier of the water and sewer rental charges. This tier would increase five cents (95› to $1.00 per 1,000 gallons).

With no further discussion, Ordinance No. 1725 passed on a 4-0 vote for first reading (Mr. Himelright was not present during the vote).

ORDINANCE NO. 1726 - 1ST READING - AMENDING THE City Codes TO ALLOW FOR LENDING OF CITY EQUIPMENT TO OTHER GOVERNMENTAL AGENCIES ON AN EMERGENCY BASIS

Mr. Gillis motioned and Ms. Siggers seconded to approve Ordinance No. 1726 to bring it on the floor for discussion. Mrs. Carol Turner introduced Ordinance No. 1726, an ordinance amending Section 2.32.010 of the Salisbury Municipal Code allowing any department head to authorize the lending or leasing of equipment, machinery, personal property or personnel for the purpose of providing mutual aid to federal, state, county or municipal governmental entities for emergencies.

In response to Ms. Siggers query, Public Works Director Wil Elliott related that Pocomoke did not pay for any overtime. The City of Salisbury, along with other agencies, gave their support in that particular emergency situation.

Mr. Himelright motioned and Mr. Gillis seconded to amend Ordinance No. 1726 to include that Council be notified within a reasonable time of providing assistance. Mr. Himelright did not want to read about it in the newspaper after the fact. In Ms. Siggers view, there may be a situation in which Council may not be able to be contacted in a timely manner, and if this language is included in the ordinance, it may hinder the process. All voted in favor of the amendment with the exception of Ms. Siggers who did not vote.

A brief discussion ensued on whether to seek reimbursement for the employees time. Mr. Himelright believed we could address the issue if there seemed to be abuse. Mr. Cannon thought it could be looked at on a case by case basis. Ms. Siggers felt Council should address this issue in a future work session.

With no further discussion, all voted in favor of Ordinance No. 1726 for first reading with the exception of Ms. Siggers who did not vote.

RESOLUTION NO. 651 - PARTICIPATION IN THE STATE RETIREMENT EMPLOYEES' CONTRIBUTORY PENSION SYSTEM

Mr. Ireton motioned and Mr. Himelright seconded to approve Resolution No. 651 to bring it on the floor for discussion. Executive Officer John Pick presented Resolution No. 651 approving the City's election to participate in the Maryland State Retirement Agency's Contributory Pension System. City employees would be required to contribute 2% of their annual salary.

With no further discussion, Resolution No. 651, which included the following verbiage, passed unanimously:

BE IT RESOLVED, by the City Council of the City of Salisbury, Maryland, that pursuant to 31-116 of the State Personnel and Pensions Article of the Annotated Code of Maryland (the "Pension Article") on July 3, 1999, it irrevocably elects to provide its employees with the contributory pension benefit under Title 23 of the Pension Article;

BE IT FURTHER RESOLVED, that the City of Salisbury agrees to continue to abide by all laws, rules and regulations governing the Employees' Pension System and the Employees' Retirement System, as now in force and as amended from time to time.

RESOLUTION NO. 652 - APPOINTMENT TO THE HISTORIC DISTRICT COMMISSION

Mr. Ireton motioned and Ms. Siggers seconded to approve Resolution No. 652 to bring it on the floor for discussion. Mayor Tilghman recommended the appointment of Diana Phillips to fill the unexpired term of Betty Church. The term expires July 1, 2000.

After a brief discussion, Resolution No. 652 passed unanimously.

RESOLUTION NO. 653 - LIVE NEAR YOUR WORK PROGRAM - CREATING ADDITIONAL HOME OWNERSHIP INCENTIVE PROGRAM FOR EMPLOYEES

Mr. Himelright motioned and Mr. Ireton seconded to approve Resolution No. 653 to bring it on the floor for discussion. Resolution No. 653, as highlighted by Executive Officer John Pick, establishes a supplemental Live Near Your Work program, known as Live Near Your Work II, and provides $1,000 to offset closing costs to any City employee who purchases a home within City limits under certain guidelines.

Ms. Siggers questioned if the employee had to enter into a contract beyond the year prior to the application. Mr. Pick responded he did not address that issue because it was not required in the previous Live Near Your Work program.

After further discussion, Resolution No. 653 passed unanimously.

APPROVAL TO EXTEND ACTING CAPACITY FOR ACTING POLICE CHIEF ED GUTHRIE

According to Executive Officer John Pick, a policy was adopted by Council in March of this year stating that an employee could not serve in an acting capacity for more than six months without the advice and consent of the City Council. Mayor Tilghman was recommending that Col. Guthrie's acting status be extended until a new police chief took office.

Council unanimously approved to extend Col. Guthrie's acting status as police chief.

REQUEST FOR ADDITIONAL THIRTY DAYS FOR CLOSE-OUT SALE - MAE'S HOME & FABRIC CENTER

City Clerk Brenda Colegrove presented Mae's Home & Fabric Center's request for a license to extend their Close-out sale for an additional thirty days. The request was unanimously approved by Council.

AWARD OF BIDS

The following items were presented for approval by Director of Procurement & Parking Carol Turner, C.P.M., CPPB:

1. Computer for Engineering Department
(601-3901-531.70-35; unbudgeted capital)
Quantex . . . . . . . . . . . . . . . . . . . . . $ 2,241.91
2. Contract No. A-13 Renewal
Pacific Pride Fuel Card Services (Various Accounts)
Cato Oil Company . . . . . . . . . . . . . . . +$160,000.00

Upon a motion by Mr. Himelright and seconded by Ms. Siggers, item #1 was unanimously approved. After a brief discussion, item #2 was approved unanimously upon a motion by Mr. Gillis and seconded by Mr. Ireton.

MAYOR'S COMMENTS

Mayor Tilghman commented on the FY2000 budget she sent to Council which reflected many of the priorities of the community. Funding for a redevelopment authority, which was retained in the budget, will help toward the expansion of a tax base so a tax cut can be offered without cutting services. Mayor Tilghman expressed her concern that the budget passed by Council cuts the taxes into the bone (i.e. deletion of overtime monies for the police department, lighting projects for the community, thermal imaging cameras for Fire Department, and a BHZ inspector).

COUNCIL PRESIDENT'S COMMENTS

Council President Cannon commented on the $1.1 million surplus this year. Of that amount, Council elected to give $120,000 back to the citizens with a two cent tax reduction. He believed the City was in great shape and will continue to be prosperous. Mr. Cannon referred to the proposed Halfway House on Lemmon Hill Lane which seems to be a concern of the residents in that area. According to Planning & Zoning, it is a legal permitted use, but it will be placed on a work session for discussion.

PUBLIC COMMENTS

Ms. Donna Vernon announced that she was moving out of her area because she is unsafe in her own home. She expressed her concern with not having enough police in the area and suggested that something be done to get the slum landlords to clean up their properties such as landlord licensing.

Mr. Richard Insley commented that landlords and good tenants are being offended just as much as homeowners with these problems. The landlords who aren't doing their job should be the focus of the enforcement. In regards to the Halfway House, he did not believe it belonged in or anywhere near a residential neighborhood. In his opinion, it should be located out of town where there is less of a negative impact on the surrounding area.

Ms. Shanie Shields spoke in support of the Halfway House since it would be in a controlled environment and the individuals would not be violent offenders. Mr. Robert Ryan addressed the concern that the United States has the largest incarceration rate in the world and our police department's rate increased from 18% to 38%. He suggested that perhaps we are not doing something right.

Mr. Kris Hughes, Director of Planning & Zoning and a resident of Newtown, reported that he has volunteered to chair a committee to do some fact-finding and to explore how the Halfway House will function.

In regards to the budget, Mrs. Carolyn Hall of Forest Lane asked that the Mayor and Council move forward with implementing the good things in the budget for the sake of the community.

Ms. Mary Ashanti voiced her concern with a police chief not wanting to live in Salisbury or even Wicomico County.

Councilwoman Siggers commented on the disparity in the election process in which District I residents only vote once every four years and District II residents vote once every two years. Mr. Cannon noted this is being addressed by the City Solicitor.

Ms. Debbie Campbell related that she understood the concerns of Ms. Vernon and noted that the Weed & Seed initiative coming to Salisbury holds hope for some of those issues. She encouraged everyone to help in addressing the concerns.

With no further business, the meeting adjourned at 10:05 p.m.

CITY OF SALISBURY, MARYLAND CLOSED EXECUTIVE SESSION JUNE 14, 1999

TIME & PLACE: 6:20 p.m, Room 300, City/County Government Building PURPOSE: Personnel issue - police chief position
VOTE TO CLOSE: 4-1 (Ms. Siggers and Messrs. Cannon, Gillis and Himelright voted aye; Mr. Ireton nay)
CITATION: Annotated Code of Maryland Section 10-508(a)(1)(i)(ii)
PRESENT: Mayor Barrie Tilghman, Council President Robert Cannon, Council Vice President Frank Himelright, Councilwoman Lavonzella Siggers, Councilman Palmer Gillis, Councilman Jim Ireton, City Clerk Brenda Colegrove and Executive Officer John Pick

At 6:20 p.m. in Room 300 of the City/County Government Building, a motion was made by Ms. Siggers to convene into Closed Executive Session to discuss a personnel issue (police chief position) as permitted under the Annotated Code of Maryland Section 10-508(a)(1)(i)(ii). Mr. Gillis seconded the motion. All voted aye with the exception of Mr. Ireton who voted nay.

After discussing the candidates for the position, Mayor Tilghman was given authorization to proceed based on Council's input. On a motion and a second by Ms. Siggers and Mr. Gillis, respectively, the closed session adjourned at 7:05 p.m.

CITY OF SALISBURY, MARYLAND CLOSED EXECUTIVE SESSION JUNE 17, 1999

TIME & PLACE: 4:00 p.m, Room 300, City/County Government Building
PURPOSE: Personnel issue - police chief position
VOTE TO CLOSE: Unanimous (Ms. Siggers was absent)
CITATION: Annotated Code of Maryland Section 10-508(a)(1)(i)
PRESENT: Council President Robert Cannon, Council Vice President Frank Himelright, Councilman Palmer Gillis, Councilman Jim Ireton and City Clerk Brenda Colegrove
ABSENT: Mayor Tilghman and Councilwoman Lavonzella Siggers

At 4:00 p.m. in Room 300 of the City/County Government Building, Mr. Ireton motioned to convene into Closed Executive Session to discuss a personnel issue (police chief position) as permitted under the Annotated Code of Maryland Section 10-508(a)(1)(i).

Council discussed the events and developments relating to the candidates for the police chief position. At 4:25 p.m., upon a motion by Mr. Himelright and a second by Mr. Ireton, the closed session adjourned.

CITY OF SALISBURY, MARYLAND CLOSED EXECUTIVE SESSION JUNE 23, 1999

TIME & PLACE: 4:00 p.m, Room 301, City/County Government Building
PURPOSE: Personnel issue - police chief position
VOTE TO CLOSE: 4-0 (Ms. Siggers was absent during the vote to close)
CITATION: Annotated Code of Maryland Section 10-508(a)(1)(i)
PRESENT: Mayor Barrie Tilghman, Council President Robert Cannon, Council Vice President Frank Himelright, Councilman Palmer Gillis, Councilman Jim Ireton, Councilwoman Lavonzella Siggers (present during a portion of the meeting), City Clerk Brenda Colegrove and Executive Officer John Pick

At 4:00 p.m. in Room 301 of the City/County Government Building, Mr. Gillis motioned and Mr. Ireton seconded to convene in Closed Executive Session to discuss a personnel issue (police chief position) as permitted under the Annotated Code of Maryland Section 10-508(a)(1)(i). All voted in favor with the exception of Ms. Siggers who was not in attendance during the vote to close.

After discussion, Council consented to a recommendation by Mayor Tilghman for the police chief position. Ms. Siggers was not present during the final vote. Upon a motion by Mr. Himelright and seconded by Mr. Gillis, the closed session adjourned at 4:48 p.m.

CITY OF SALISBURY, MARYLAND CLOSED EXECUTIVE SESSION JUNE 23, 1999

TIME & PLACE: 4:49 p.m, Room 301, City/County Government Building
PURPOSE: Pending litigation matters and personnel matters (employee appeals)
VOTE TO CLOSE: 4-0 (Ms. Siggers was absent during the vote to close)
CITATION: Annotated Code of Maryland Sections 10-508(a)(1)(i) and 10-508(a)(8)
PRESENT: Council President Robert Cannon, Council Vice President Frank Himelright, Councilman Palmer Gillis, Councilman Jim Ireton, Councilwoman Lavonzella Siggers, City Clerk Brenda Colegrove, Executive Officer John Pick, City Solicitor Paul Wilber

At 4:49 p.m. in Room 301 of the City/County Government Building, Mr. Himelright motioned and Mr. Ireton seconded to convene in Closed Executive Session to discuss pending litigation and personnel matters as permitted under the Annotated Code of Maryland Sections 10-508(a)(1)(i) and 10-508(a)(8). All voted in favor with the exception of Ms. Siggers who was not present during the vote to close.

The City Solicitor updated Council on the potential litigation issues facing the City. After discussion, Council gave Mr. Wilber direction on how to proceed in these matters.

Council discussed an employee's termination appeal and the Citizen Review Panel's recommendation. Council's recommendation will be forwarded to the Mayor.

At 6:05 p.m., Council conducted a personnel hearing regarding an employee's two-day suspension. The department head, along with the City Solicitor, and the employee presented testimony. No decision was made at this time by Council. At 7:47 p.m., upon a motion by Mr. Ireton and seconded by Ms. Siggers, the closed session was adjourned and Council convened in open session.

CITY OF SALISBURY, MARYLAND CLOSED EXECUTIVE SESSION JUNE 23, 1999

TIME & PLACE: 8:50 p.m, Room 301, City/County Government Building
PURPOSE: Personnel matter (employee appeal)
VOTE TO CLOSE: Unanimous
CITATION: Annotated Code of Maryland Section 10-508(a)(1)(i)
PRESENT: Council President Robert Cannon, Council Vice President Frank Himelright, Councilman Palmer Gillis, Councilman Jim Ireton, Councilwoman Lavonzella Siggers, City Clerk Brenda Colegrove and Executive Officer John Pick

At 8:50 p.m. in Room 301 of the City/County Government Building, Mr. Himelright motioned and Ms. Siggers seconded to convene into Closed Executive Session to discuss a personnel matter (employee suspension appeal) as permitted under the Annotated Code of Maryland Section 10-508(a)(1)(i). The vote was unanimous.

After discussing the testimony provided earlier, Council arrived at a consensus and will present their recommendation to the Mayor. At 9:04 p.m., upon a motion by Ms. Siggers and seconded by Mr. Himelright, the closed session adjourned and Council reconvened in open session.

City Clerk

Council President