#7 MEETING                                                                                                                                    APRIL 9, 2001

Mayor Barrie P. Tilghman                                                                                         Council President Lavonzella Siggers
Council Vice President Joseph L. Scott                                                                     Councilwoman Rachel S. Polk
Councilman William Stacey                                                                                       Councilman C. T. Webster

City Clerk Brenda Colegrove, Executive Officer John Pick, City Solicitor Paul Wilber, Police Chief Al Webster, Fire Chief Stephen Brezler, Finance Director John Cawley, Director of Procurement & Parking Carol Turner, C.P.M., CPPB, BHZ Director William Holland, Public Works Director John Jacobs, and interested Citizens and Members of the Press.
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CONVENING - ADOPTION OF AGENDA

The Mayor and Council met in regular session at 7:00 p.m. in Council Chambers. Council President Siggers called the meeting to order. The Lord's Prayer was repeated and the Pledge of Allegiance was recited.

On a motion by Mr. Stacey and seconded by Mrs. Polk, the agenda was unanimously adopted as presented.

APPROVAL OF MINUTES - MARCH 26, 2001

On a motion by Mr. Stacey and seconded by Mrs. Polk, the minutes of March 26, 2001 were unanimously approved.

INTRODUCTION

Mayor Tilghman introduced Steve Brezler as the new Fire Chief for the City of Salisbury.

PROCLAMATION - "FAIR HOUSING MONTH"

On behalf of the Coastal Counties Community Housing Resources Board, Mayor Tilghman proclaimed the month of April as "Fair Housing Month" in the City of Salisbury.

BRIEFING BY HYETTPALMA, INC. ON DOWNTOWN MARKETING STUDY

Mr. Tom Becker, President of Urban Salisbury, Inc. introduced Ms. Dolores Palma and Mr. Doyle Hyett from the firm of HyettPalma, Inc. The HyettPalma group was hired to perform the downtown marketing study for Urban Salisbury. A brief overview of the project was provided by Mr. Hyett.

ORDINANCE NO. 1805 - 2ND READING - BUDGET AMENDMENT - TO PROVIDE FOR
THE FIRST INTEREST PAYMENT ON THE PARKING GARAGE BOND LOAN

Mrs. Polk moved and Mr. Stacey seconded to approve Ordinance No. 1805, a budget amendment providing for the first interest payment on the parking garage bond loan. Director of Procurement and Parking Carol Turner reported that there were no changes since the first reading. Monies will be moved from the Parking Authority Fund into the budget to make the
first interest payment of $11,558.

Ordinance No. 1805 for second reading passed unanimously.

ORDINANCE NO. 1806 -2ND READING - BUDGET AMENDMENT - TO PROVIDE FOR THE DEPOSIT OF STATE GRANT FUNDS ($1,000) AWARDED THROUGH THE GOVERNOR'S OFFICE OF CRIME CONTROL AND PREVENTION TO ENHANCE COMMUNITY POLICING EFFORTS AND QUALITY OF LIFE ISSUES IN THE DESIGNATED HOTSPOT I AREA

Mr. Stacey moved and Mr. Webster seconded to approve Ordinance No. 1806, a budget amendment providing for the deposit of State grant funds ($1,000) awarded through the Governor's Office of Crime Control and Prevention to enhance community policing efforts and quality of life issues in the designated HotSpot I area.

Ordinance No. 1806, as briefed by Police Chief Al Webster, provides $1,000 to fund the block party in the HotSpot I area and the purchase of bicycle helmets upon the successful completion of the Earn-A-Bike program.

Ordinance No. 1806 for second reading passed unanimously.

ORDINANCE NO. 1807 - 1ST READING - AMENDING §6.04.130 OF THE SALISBURY MUNICIPAL CODE TO PERMIT ANIMAL CONTROL OFFICERS TO CARRY WEAPONS

Mr. Stacey moved and Mr. Webster seconded to approve Ordinance No. 1807, amending §6.04.130 of the Salisbury Municipal Code to permit Animal Control Officers to carry weapons.

Police Chief Al Webster introduced Ordinance No. 1807 granting Animal Control Officers the authority to carry certain weapons (tranquilizer gun, shotgun, Baton and OC Spray) in the performance of their duties.

After a brief discussion, Ordinance No. 1807 for first reading passed unanimously.

ORDINANCE NO. 1751 - 1ST READING - AMENDING CHAPTER 2.32, PURCHASES AND SALES, OF THE SALISBURY MUNICIPAL CODE

Mr. Stacey moved and Mr. Webster seconded to approve Ordinance No. 1751, amending Chapter 2.32, Purchases and Sales, of the Salisbury Municipal Code.

Ordinance No. 1751, as introduced by Director of Procurement and Parking Carol Turner, reported that most of the changes were recommended by the Charter Review Committee. Highlighted changes include:

• dollar amounts in which departments must have quotes for direct purchase items - change from $200 to $400 unit cost or an aggregate cost of $1,000;
• dollar amount for sealed bids increased from $15,000 to $20,000;
• added items from the State Procurement Code on the types of bidding allowed and the way the bidding should be handled;
• if items already budgeted, and the award is not over the approved budgeted amount, the items will not have to come back to Council for a second approval; and
• emergency purchases section defined and how emergency purchases are handled during regular hours and after business hours.

PUBLIC HEARING - RESOLUTION NO. 759 - U.S. ROUTE 13 NORTH BARNES AND NOBLE ANNEXATION

Mr. Stacey moved and Mr. Webster seconded to approve Resolution No. 759, public hearing for the U. S. Route 13 North Barnes and Noble annexation.

City Solicitor Paul Wilber reported that the annexation request was for 6.6 acres located on Route 13 North between Lowes and Hampshire Road. A fax letter was received today from Barnes and Noble indicating they did not wish to continue with the annexation since they were no longer proceeding with the project. A series of phone conversations were held with the property owners and/or representatives of the property owners. All three property owners would like to be annexed with a "neutral" arrangement. They would be in the City, but would not pay taxes until either they sold the property or requested city services.

Mr. Wilber noted that, under State law, action on the annexation request can be postponed for up to thirty days with only one more advertisement. This would allow time for further discussion with the three property owners to refine the conditions of annexation.

Mr. Stacey expressed his willingness to postpone the annexation Resolution and his agreement with the two basic terms. In his opinion, if Barnes and Noble were in a better position to proceed with the project, it would be easier to accomplish rather than starting all over again with the annexation process.

Mr. Wilber concurred that it would be more advantageous if the property was already annexed into the City. It would make the property more marketable and speed up the transition into a taxable category.

Mr. Webster voiced his disagreement with the neutral arrangement. Mr. Scott opined that taxes should be paid if annexed into the City.

Mrs. Polk viewed it as an opportunity to straighten out the city borders on the north end. The property owners want to be annexed and it would make the property more attractive if it was already in the city limits.

Ms. Siggers believed there were valid points on both sides. However, she was concerned that if taxes were allowed not to be paid, then others would want the same opportunity.

Mrs. Polk moved and Mr. Stacey seconded to postpone Resolution No. 759 for thirty days to allow the City Solicitor to further clarify the details of the proposal.

Comments from the public included:

• no property should be annexed without having to pay taxes;
• opportunity to smooth out the spider-like boundaries of the City limits;
• owners should be taxed upon annexation;
• property should be annexed and then try to get it developed; and
• compromise by giving the property owners two or three years after which they have to begin paying taxes either on 100% basis or a phased-in basis.

On the motion to postpone, Mrs. Polk, Ms. Siggers and Mr. Stacey voted aye. Messrs. Scott and Webster voted nay. The motion to postpone passed on a 3-2 vote.

RESOLUTION NO. 763 - GRANTING TAX DEFERRAL FOR SENIOR HOUSING PROJECT ON PEMBERTON DRIVE

Mr. Stacey moved and Mrs. Polk seconded to approve Resolution No. 763, granting a tax deferral for a senior housing project on Pemberton Drive. Executive Officer John Pick presented Resolution No. 763 signifying support of a tax deferral plan for a proposed low and moderate income senior citizen housing project to be located in the City limits on Pemberton
Drive. The developer, SIS Properties, LLC intends to apply to the Maryland Department of Housing and Community Development for investment tax credits and a low interest loan. In order to qualify for the program, a local commitment in the form of a tax deferral plan from the City government, is required. During the first ten years, a portion of the taxes would be deferred, but over the course of twenty years, the total accrued taxes would be fully repaid.

Finance Director John Cawley projected an assessed value of $646,000 for Phase 1 and $1.6 million for Phase 2.

Mr. Stacey referred to the comment made at the work session that this was a difficult property to sell because of the location. However, there was a buyer which presented an opportunity to gain on taxes.

Mr. Webster reported that he visited one of the developer's projects on the Western Shore. In his opinion, Salisbury needed a development like this. He also visited the proposed location and felt it was a good distance from the Wastewater Treatment Plant.

Mrs. Polk agreed that more affordable housing was needed for senior citizens. Her concern dealt with the project being so close to the Wastewater Treatment Plant and being subject to winds carrying the odors.

Mr. Scott expressed that Salisbury needed more senior housing developments and perceived the project as an excellent idea.

Mr. John Schuster, a partner in this private venture project, visited the site after Council's work session and did not detect any odors. Of all the sites he looked at, this particular location was more suitable because it was in walking distance to the nearby shopping center, pharmacy and bank.

Mr. Bill Martin reported that he has worked on a housing development on Pemberton Drive for several years, but has not received any complaints concerning odors from the Wastewater Treatment Plant.

Mr. Henry Hanna noted that people were still buying lots and expensive homes in the Harbor Pointe development which is almost the same distance away from the Wastewater Treatment Plant.

Mayor Tilghman pointed out that the project also has to go through more hurdles beyond the City Council's support for a tax deferral. It must be approved by the Department of Housing and Community Development, not only for funding, but on the validity of the project.

Ms. Siggers thanked Mr. Schuster for considering Salisbury and extended appreciation for wanting to bring these services to the community. However, from her frequent walks in that area, gas fumes were also present no matter what time of the day or night. She did not want to subject senior citizens or anyone to that area, particularly those individuals with respiratory problems. Ms. Siggers also questioned whether Messrs. Schuster, Scott, Stacey and Webster would want to live on the proposed site.

With no further discussion, Resolution No. 763 passed on a 3-2 vote with Mrs. Polk and Ms. Siggers casting the dissenting votes.

APPROVAL OF LEASE AGREEMENT BETWEEN THE CITY OF SALISBURY AND THE CHAMBER OF COMMERCE FOR THE SALISBURY FESTIVAL

Mrs. Polk moved and Mr. Stacey seconded to approve the lease agreement between the City of Salisbury and the Chamber of Commerce for the Salisbury Festival to be held on May 4, 5 and 6, 2001. Executive Officer John Pick outlined the provisions in the agreement for use of the Riverwalk Park and parking lots #14, #16, #1 and #5 and the parking annex lot.

After discussing the clean-up issue and insurance liability for City employees, the lease agreement was unanimously approved.

AWARD OF BIDS

The following items were presented for approval by Director of Procurement & Parking Carol Turner:

1.     Professional Services (various accounts)
        Paul D. Wilber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . .$17,156.50
2.     800 MHz Radio System Equipment (001-2105-521.70-30; Unbudgeted)
        Caldabaugh Communications, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . .$ 2,086.75

On a motion by Mr. Stacey and seconded by Mrs. Polk, the above items were unanimously approved.

MAYOR'S COMMENTS

Mayor Tilghman commented on the following:

• April 10, 2001 - 7:00 p.m. Neighborhood Meeting at Deer's Head Center Auditorium (Johnson's Lake, London Avenue and Emerson Heights);
• April 11, 2001 - 7:00 p.m. Newtown Neighborhood Association meeting at the Poplar Hill Manson;
• April 17, 2001 - 8:00 p.m. Pinehurst Lighting Committee meeting at the corner of Camden Avenue and West College Avenue;
• April 11, 2001 - 3:00 p.m. meeting with Congressman Gilchrest to discuss funding water and sewer upgrades and expansion of capacity; and
• April 21, 2001 - Mayor's Neighborhood Roundtable hosting a 10:30 a.m. trip to the Wicomico County Landfill.

Mr. Webster mentioned that the City and County water and sewer team would be meeting on Tuesday, April 11, at 5:00 p.m. Mr. Webster questioned why the Salisbury Fire and Police Departments did not have booths at the Salisbury Festival.

Mr. Scott thanked the public for attending and encouraged everyone to attend Tuesday evening's meeting with the County concerning water and sewer. Mr. Scott was not interested in selling or giving away the City's water and sewer.

Mrs. Polk also encouraged the public to attend the water and sewer meeting to become better informed and reaffirmed that the City was not interested in selling the Wastewater Treatment Plant to the County. They intended to protect the City's interest in its ability to grow.

Mr. Stacey read a statement expressing his disappointment with the City Council President's actions during the meeting. In his opinion, if that type of treatment continued with developers, the City would not have to worry about future annexations.

PUBLIC COMMENTS

Ms. Julia Hancock voiced her concern with corrugated cardboard in the trash cans which could be recycled.

Mr. Robert Taylor suggested that the City avoid establishing any further election districts unless they were absolutely needed for legal reasons. In his view, the at-large system was best for small municipalities. Mr. Taylor mentioned that the City may be receiving requests for funding from civic organizations that the County has turned down.

COUNCIL PRESIDENT WRAP-UP

Council President Siggers comments included:

• hoped that some good sense emerged very soon from the water and sewer discussions with the County;
• hoped that an opportunity would be provided for the middle school and high school students to perform community service hours during the Salisbury Festival clean-up;
• welcomed Fire Chief Steve Brezler to the City and hoped to see the cadet program more visible and strengthened in the community;
• believed it was time to look at the election districts;
• City was fortunate for the growth in senior housing projects and hoped that Council took into consideration where they placed the welfare and well-being of people, whether they were senior citizens or not; and
• invited the public to attend on-going community meetings to share their concerns.

City Clerk

Council President