WORK SE
MAYOR AND CITY COUNCIL
CITY HALL CONFERENCE ROOM
Tuesday, April 19, 2005
6:15 P.M.
Present: Mayor Lee N. Fiedler, Council Members Edward C. Hedrick, Jr., Harold L. Hendershot, Jr., and Terance J. Rephann.
Absent: Councilman Elliott
Also Present: Jeffrey E. Repp, City Administrator; H. Jack Price, Jr., City Solicitor; Jeffrey Rhodes, Director of Administrative Services; Raquel Ketterman, Comm. Dev. Specialist; Jay Oliver, Comm. Dev. Manager; Kevin Hagerich, Director of Public Works; William Herbaugh, Fire Chief; and Sharon S. Clark, City Clerk.
I. Public Meeting Agenda Review - Jeffrey E. Repp, City Administrator
Mr. Repp reviewed the public meeting agenda as follows:
Public Hearing – Funding recommendations for 2005-2006 CDBG Program:
Ms. Raquel Ketterman, addressed the Council advising that there had not been any changes made since the last meeting. She presented a list of projects recommended to be funded and asked for questions or comments. Councilman Hedrick asked if the cameras were going to be purchased through the budget, and Mr. Repp confirmed that they were. There were no further questions.
CAR for Annexation: Annexation for property consisting of 368.4 acres lying contiguous to the corporate limits of the City near the Country Club Road and Christie Road.
Mr. Repp reviewed the process to date and said that CAR would be considered tonight starting the 45 day waiting period which will expire June 3rd after which the annexation would be complete. There was no further discussion.
ORDERS: Mr. Repp there stated were nine (9) orders on the consent agenda and asked for questions. Orders were discussed as follows:
Item No. 1 Accepting the bid of Billy Bender for one (1) current year model 4 x 4 crew chassis cab for use of the Public Works Department - $40,054.85
Item No. 2 Authorizing the Mayor and City Clerk to execute an Agreement between the Mayor and City Council and Allegany Professional Properties, LLC, for participation in improvements to a parcel located at the corner of Centre Street and Dexter Place in the City of Cumberland
Concerns were expressed about signage for the use of the lot for parking during off hours. After discussion, it was agreed to table this order for two weeks to provide the opportunity for discussion of signage with Allegany Professional Properties, LLC. Mayor Fiedler agreed to discuss the matter with them.
Item No. 3 Authorizing the Mayor to execute a Private Road Grade Crossing Agreement between the City of Cumberland and CSX Transportation, Inc.
Mr. Repp explained this is the Western Maryland Scenic RR rail track. When CSX assigned it over to the Scenic Railroad they retained the rights. The area is where the City would cross to maintain the new pump station built as part of the CSO Project. $250.00 per year cost for right-of-way.
Item No. 4 Authorizing the Mayor to sign a letter of support for the consolidation of the Memorial Hospital of Cumberland and the Sacred Heart Hospital into a newly constructed medical center.
Item No. 5 Accepting the bid of Beckwith Machinery for the purchase of one (1) Backhoe for use of the sewer division of the City - $69,982.00 including 5-yr. warranty
Mr. Repp advised this is a replacement piece of equipment. The original backhoe was purchased in 1990 and is a 1991 model. An analysis was done showing the cost for needed repairs exceeds the value of the piece of equipment, and the decision was made adjust the budget for this year and purchase the new backhoe as an unbudgeted item rather than waiting until next budget year.
Item No. 6 Rescind Orders Nos. 24,116 and 24,145 and accept the proposal of Brabson Salvage & Sons Demolition for the demolition of city surplus properties located at 923 Glenwood Street ($6,550.00) and 314-316 Independence Street ($8,400.00)
Mr. Repp reviewed that the demolition of these properties was previously awarded to Brandlen Construction who has to date not completed the demolitions. The project is now being awarded to Brabson Demolition with a new provision, an incentive clause, to encourage moving expeditiously in the demolition of the properties. An additional amount of $50.00 per day will be added to the contract for each day of early completion and acceptance of the project up to a specified amount. The penalty provision of the contract will also be enforced; using their bond to recuperate the City’s cost.
Item No. 7 Declaring a parcel of real estate located on James Day Drive to be surplus and accepting the proposal of Cornerstone Enterprises, LLC for development of a 62 unit town house development
Mr. Repp said this property is being declared surplus for the development of a proposed housing development, and the project would be presented in detail later in work session. It also accepts the proposal of Cornerstone Enterprises for the development. An ordinance authorizing the transfer of the property would be on the agenda for consideration on May 17th.
Item No. 8 Authorizing the City Administrator to execute a Service Agreement for a biosolids land application contract between the City of Cumberland and Synagro
Item No. 9 Authorizing the Mayor to execute an Assignment to acknowledge and accept the Assignment relieving the Board and Library of further obligations as partners in AllCoNet2.
Mr. Repp advised this item was added to the agenda this date. The Board of Education and Library Systems are assigning the intellectual rights of AllCoNet2 to the City and County, as they legally can’t participate.
II. Cornerstone Enterprises Development Proposal – Brandon Taylor
Mr. Brandon Taylor, Architect, representing Cornerstone Enterprises Development, addressed the Mayor and City Council with a power point presentation explaining the proposed project for the development of a 62 Unit Town House Private Community Housing Development of the 3.477 acres on James Day Drive with the concept of providing an affordable, living community. Ms. Antonia Griffin and Mr. Miguel Zavaleta, of Cornerstone Enterprises Development were also present.
Mr. Repp summarized the proposal from the developer is for the City to transfer the property, valued at $88,0000, in exchange for entering into a marketing agreement with the City to market the City in the metro DC and northern Virginia areas. Public infrastructure required by the City would be to improve Navy Way (a public street) at the completion of the project and to make sure there are no environmental problems on the property. A Phase I environmental assessment would be done to make sure there are no problems.
Mr. Zavaleta thanked the City commenting that this is just the beginning and they are looking forward to long lasting relationship with the City.
Councilman Hendershot asked if the plans were to include local labor in the process. Brandon Taylor said he is in favor of local labor and has good relations with all the contractors in the area. The developers said their plans are to hire builders locally.
It was agreed this was a good project.
III. Proposed Water/Sewer Rates FY 2006:
Mr. Repp reviewed the City’s existing rate structure as well as proposed water rates. He explained that with the proposed water rates, the first 300 cubic feet would be a flat fee of $12.00 for inside residential customers after which the charge for water would be based on actual amount used rather that by blocks of usage as is the current rate structure. The new structure would be the same for outside residential customers.
Explaining the sewer rates, Mr. Repp said there are three rate structures based on a percentage in the current system; however, the proposed sewer rates are not based on a percentage but rather on usage. There will be a flat fee of $14.00 after which there will be a per-unit cost per cubic foot.
Mr. Repp showed comparisons as to current bills vs. the new rate structure using charts as part of his power point presentation.
Councilman Hendershot asked how far into the future the new rate structure would take the City before they enter into a deficit situation. Mr. Repp commented that is very difficult to project, but it could be three years or more or could be less than three years depending on changing circumstances. Mr. Repp added that on the expenditure side the City is constantly striving to be more efficient and more cost effective. He also stated estimated revenues would be monitored on a monthly basis to insure the estimates were reached.
Mr. Repp then reviewed industrial rates current structure vs. proposed rate structure with the proposed change being that the same rate structure will be applicable to them as everyone else. Most industrial customers are water only and all industrials are billed monthly. There were comparisons shown current bill vs. the new rate structure.
Mr. Repp pointed out that under the EPA guidelines and laws everyone is to pay their fare share on the sewer side for usage of the sewage systems because of the grants the City has received over the years.
The current rate structure and proposed rate structure was reviewed for the Water Companies. Under the new rate structure the first 100 cubic feet the water company will pay $27.50 after which there will be a tiered structure based on a cubic foot basis. He again showed comparisons using the current vs. the proposed rate structure. The biggest change being that in the new rate structure 77% of revenue will be collected via the “base charge” vs. 3% currently collected via the base charge; which will create revenue stability.
Mr. Repp then reviewed the Sanitary Districts proposed sewer rates and showed comparisons current vs. proposed rates. Councilman Hendershot asked if the concept of the fixed rate and the overage is becoming industry standard. Mr. Repp said it has been industry standard for some time because that is your fixed cost – manpower, chemicals, etc. to produce the water.
Councilman Hendershot asked if the proposed increase was exactly what Whitman Requardt recommended. Mr. Repp said it was. Councilman Hendershot asked for verification that residential water rates are 50% more for outside City customers and if there were any problems with that. Mr. Repp said that was correct. Mr. Price added that several years ago there was a Public Safety Commission hearing and our rates were found to be okay. Mr. Repp added that staff is reviewing the water companies rates to see whether or not the 77% collected as a fixed amount may be too high. They are looking at cost benefit analysis.
Mayor Fiedler added that the sewer contracts are forty years old and circumstances have changed.
Councilman Hendershot asked what rate property owners outside the city who sign a pre-consent to annexation agreement are paying. Mr. Repp stated they pay outside rates.
With no further questions, Mr. Repp said the next step will be preparation of ordinances for consideration of Council.
IV. Eminent Domain Request – 230 Glenn Street – Jack Price, City Solicitor
Mr. Price they have been in court a number of times over the property at 230 Glenn Street. The property is owned by an individual who lives in Philadelphia and while the taxes continue to be paid, no one has been at the property for years. There have been neighborhood complaints, and it impacting the ability of other properties to get insurance on their properties. There have also been problems with squatters. Request is acquire the property by eminent domain, condemn it, take it over and do what is best for the neighborhood.
Mr. Repp asked if the value of the property would be able to be offset by the outstanding citations. Mr. Price said they would.
Mayor Fiedler made comment that the property owner next door has invested $60,000 in their house and cannot occupy it because they can’t get insurance because of this property.
In answer to question from Commissioner Rephann, Mr. Price stated the fines are not being paid. They had considered a Sheriff’s Sale, but this person pays his taxes at the last minute and could at the last minute prior to the sale pay his fine and the City is back to square one where if they take the property by eminent domain and offset our costs we can do something with the property.
Mr. Price said as soon as the property is appraised he can file and explained the process. He said he hopes we could be in court within 90 days. It was agreed to pursue eminent domain.
508 Washington Street – (Eminent Domain)
Mr. Price updated the Council as to the status of the property on Washington Street being acquired by eminent domain saying his only address was a post office box, the documents were sent certified mail, but were not accepted. Dr. Briggs was served at work. No address has been found for Mrs. Briggs so court approval was given to advertise in the newspaper giving her until May 9th to respond. If she doesn’t respond we get a court order against her. Dr. Briggs’ time has already expired and he has failed to respond. Mr. Price explained the upcoming process for completion of this acquisition.
There was discussion of this process and the benefits of it. Mr. Price was given the authority to proceed.
V. Adjournment:
With no further discussion, the meeting adjourned at 7:20 P.M.
Respectfully submitted,
Sharon S. Clark
City Clerk