Public Meeting - October 20, 2005

City of Cumberland, Maryland

Special Session

Council Minutes

Thursday, October 20, 2005

                                                                                                                                   

                                                                                               

            The Mayor and City Council of Cumberland, Maryland, met in Special Session on Thursday, October 20, 2005, in the Council Chambers of City Hall.   Mayor Fiedler called the meeting to order at 8:02 A.M.

 

 

INVOCATION –  Councilman Hendershot

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES

CALL OF ROLL:

            Present: Mayor Fiedler, Councilmen Elliott, Hedrick, Hendershot, and Rephann.  Department Heads and/or Officials present were Jeffrey E. Repp, City Administrator; H. Jack Price, Jr., City Solicitor; Kevin Hagerich, Director of Public Works; William Herbaugh, Fire Chief; Robert Dick, Police Chief; and Sharon Clark, City Clerk.

RESOLUTIONS:

            A Resolution was introduced and read in Title only, approving the application and receipt of financing for Community Legacy Projects in Cumberland, Maryland, to be financed either directly by the Department of Housing and Community Development of the State of Maryland or through other departments or agencies of the State of Maryland.  Councilman Elliott made a motion to adopt the Resolution, and Councilman Hendershot seconded the motion.

            Mr. Repp, City Administrator, introduced Ms. Kathy McKenney and Ms. Raquel Ketterman to summarize the recommendations of the committee.  Ms. McKenney explained the request is a continuation of the Community Legacy Program with available funding State-wide being Five Million Dollars ($5,000,000).  The State has eliminated receipt of funds for operating.  The City is submitting Application A – Existing CL Communities consisting of eight (8) projects for a total request of $1,926,000 realizing the total amount will not be received. The eight projects as prioritized were summarized and packets explaining the projects were distributed to the Mayor and Council.  Proposed projects were: HRDC Facility-New Construction $400,000; Upper Story Redevelopment $200,000; Live and Work Under the Same Roof $200,000; Virginia Avenue Corridor Redevelopment Plan–Infrastructure Improvements $300,000; Rehabilitation/Code Compliance Program–Residential Rehabilitation/Code Compliance $100,000; Commercial Rehabilitation/Code Compliance $150,000; Community Betterment Areas Homestead Project $76,000; Demolition/Blight Removal $200,000; and Wills Mountain Site Acquisition $300,000. 

            In discussion Councilman Rephann for the status of the Design Development Plan for Virginia Avenue to which Ms. McKenney said she received the draft copy yesterday and is hoping to be present it to the Mayor and Council during the month of November.  Councilman Elliott asked if there were monies received last year for the Virginia Avenue area to which Ms. McKenney said there were not and that the only project funded was the Rolling Mill Project.  Councilman Hendershot asked if there was a specific threat on Wills Mountain acquisition for prevention of development in the view shed.  Mr. Repp said at the time there is no plan. He reviewed they have approached Artmor Plastics for acquisition of the property with the State of Maryland owning property adjacent to it.  He added there are potential matching funds if the city is able to get Community Legacy funds, as well as other matching funds. 

            President Fiedler stated he feels the change to the Virginia Avenue area is a good one which he supports.  He added it is important when sending the information to the State that they understand this is a whole new area.  He commented on the success of the downtown area.

            Ms. McKenney stated the application is due November 1st, and if any funding is received it would not be until at least May.    Councilman Hendershot asked how much was requested last year to which Ms. McKenney stated 1.8 million dollars was requested with 125,000 received.

            Mr. Michael Mudge, Oak Street, Cumberland, addressed the Mayor and City Council thanking both them and staff for the support and the work being done in their area and submitting, for accompanying the application, letters of support from various businesses in the area.   

            President Fiedler asked for further comments.  Being none, he called for the vote and the Resolution was unanimously adopted.

 

            A Resolution was introduced in Title only to AUTHORIZE AND EMPOWER MAYOR AND CITY COUNCIL OF CUMBERLAND TO ISSUE AND DELIVER, UPON ITS FULL FAITH AND CREDIT, ITS GENERAL OBLIGATION INSTALLMENT BOND IN THE AGGREGATE PRINCIPAL AMOUNT OF SEVEN MILLION NINE HUNDRED THOUSAND FOUR HUNDRED FORTY-TWO DOLLARS ($7,900,442), PURSUANT TO THE AUTHORITY OF SECTION 24 OF ARTICLE 31 OF THE ANNOTATED CODE OF MARYLAND, AS REPLACED, SUPPLEMENTED OR AMENDED, SECTIONS 31 TO 37, INCLUSIVE, OF ARTICLE 23A OF THE ANNOTATED CODE OF MARYLAND, AS REPLACED, SUPPLEMENTED OR AMENDED, SECTIONS 81 AND 82A OF THE CHARTER OF THE CITY OF CUMBERLAND AS PUBLISHED IN MUNICIPAL CHARTERS OF MARYLAND, VOLUME 2, 1990 REPLACEMENT EDITION, AS REPLACED, SUPPLEMENTED OR AMENDED, AND ORDINANCE NO. 3487 PASSED BY MAYOR AND CITY COUNCIL ON MARCH 23, 2004 AND EFFECTIVE ON APRIL 23, 2004, THE BOND TO BE DESIGNATED “MAYOR AND CITY COUNCIL OF CUMBERLAND PUBLIC IMPROVEMENTS REFUNDING BOND OF 2005”, THE PROCEEDS OF THE SALE THEREOF TO BE USED AND APPLIED FOR THE PUBLIC PURPOSE OF (I) REFUNDING IN WHOLE THE CITY’S OUTSTANDING GENERAL OBLIGATION REFUNDING BONDS, 1994 SERIES A,  (II) PAYING COSTS OF ISSUANCE ON THE BOND AND (III) TO THE EXTENT PROCEEDS REMAIN, PAYING INTEREST ON THE BOND; PRESCRIBING THE FORM AND TENOR OF THE BOND AND THE TERMS AND CONDITIONS FOR THE ISSUANCE AND SALE THEREOF PRIVATE (NEGOTIATED) SALE TO SUNTRUST BANK; PRESCRIBING THE TERMS AND CONDITIONS OF THE BOND AND ALL OTHER DETAILS INCIDENT TO THE ISSUANCE, SALE AND DELIVERY OF THE BOND; PROVIDING FOR THE DISBURSEMENT AND INVESTMENT OF THE PROCEEDS OF THE BOND; PROVIDING THAT A PORTION OF DEBT SERVICE ON THE BOND SHALL BE PAYABLE IN THE FIRST INSTANCE FROM WATER SYSTEM REVENUES AND FURTHER PROVIDING FOR THE LEVY AND COLLECTION OF ANY TAXES NECESSARY FOR THE PROMPT PAYMENT OF THE MATURING PRINCIPAL OF AND INTEREST ON THE BONDS; PROVIDING THAT THE FULL FAITH AND CREDIT AND UNLIMITED TAXING POWER OF THE MAYOR AND CITY COUNCIL OF CUMBERLAND SHALL BE IRREVOCABLY PLEDGED TO THE PAYMENT OF SUCH PRINCIPAL AND INTEREST; PROVIDING THAT THE PRINCIPAL OF AND INTEREST ON THE BOND ALSO MAY BE PAID FROM ANY OTHER SOURCES OF REVENUE LAWFULLY AVAILABLE TO THE CITY FOR SUCH PURPOSE; PROVIDING FOR THE REDEMPTION OF THE REFUNDED BOND; AND GENERALLY RELATING TO THE ISSUANCE, SALE, DELIVERY AND PAYMENT OF AND FOR THE BOND.  Councilman Hendershot made a motion to adopt the Resolution, seconded by Councilman Elliott. 

            Mr. Repp provided a brief overview of the Resolution noting it is for refinancing of bonds for the purpose of reducing the interest resulting in a one-time $341,000 savings to the City.  

            President Fiedler asked for questions or comments.  Upon question from Councilman Hedrick, Mr. Repp advised the debt would be retired June 30, 2021.  Mr. Combs asked the amount of principal to which Mr. Repp responded it was $7,900,442.  Councilman Hendershot commended Mr. Repp for his efforts in this matter for the benefit of the City.

            With no further questions or comments, President Fiedler called for the vote and the Resolution was unanimously adopted. 

           

ORDERS:

            Consent Agenda:

             Mayor Fiedler advised that there were three (3) items on the consent agenda.  As there were no requests to handle items separately, Councilman Elliott made a motion to adopt the Consent Agenda.  Councilman Hendershot seconded the motion and the following Orders were unanimously adopted:

Order No. 24,266  Authorizing the City Comptroller to make payment to Marshall Ruby & Sons for work on the George Street Garage - $9,500.00

 

Order No. 24,267  Accepting the bid of Long Fence Company for the Chain Link Fence at the Water Filtration Plant - $35,930.00

 

Order No. 24,268  Accepting the proposal of Ehrlich for pigeon control - $7,600.00

 

            Councilman Rephann excused himself from the meeting as this point to report for work.

 

 

Requests To Be Heard:

            Mr. James Combs, Winifred Road, addressed the Mayor and Council concerning the following:

1.                  Why the meeting was moved from Tuesday to Thursday?  Mr. Repp stated that bond counsel was still working on the resolution which needed to be adopted prior to November 1st.

2.                  The status of the audit?  Mr. Repp stated the audit is underway with the goal of having is completed by Christmas.  He added the State is in the process establishing new guidelines due to the GASB requirements changing the deadline from the end of November to the end of December; however, an extension to the end of December would probably be requested as the new guidelines will not be officially adopted prior to that time.

Ms. Teri Socha, Bedford Street, addressed the Mayor and City Council concerning the following:

1.            Questioned the posting of the minutes on the web site.  Ms. Clark, City Clerk, explained they had been experiencing difficulties being able to post the minutes; however, as of yesterday all approved minutes were posted.

2.            Questioned the decision to pave Calvert Terrace.  Mr. Repp advised bids had been received; however, no decision had been made at this time to pave Calvert Terrace.

3.            Thanking the Times News regarding the article concerning the status of developments in the community. 

4.            Has a payment of $88,000 had been made for the property for the Cornerstone project been made or advertising or in-kind been done in that amount?  Mr. Repp responded the payment is to be in-kind advertising with a stipulation to provide the City evidence of that amount of joint advertising at the end of the project. 

5.            In light of the probable delay of building due to the economy, is wise to commit the City’s money to complete Bellevue Street until the second set of eleven town houses are built since there is no need for the street until that time?  Mr. Repp said the contractor awarded the bid was the low bidder.  Ms. Socha asked for comments from Council as to why they feel they should proceed with the street.   Mayor Fiedler expressed that the contractor is moving ahead and is a different price range home than Cornerstone.  He added it is something they should watch although at this time he is not concerned. Councilman Elliott stated he is not concerned, as the contractor is continuing to move forward.  He added the road is the connection to Frederick Street and the award was made to the low bidder.  Councilman Hedrick stated he was comfortable with the decision.  Councilman Hendershot said he couldn’t add anything to what had already been said.  Ms. Socha asked if anyone would speculate a time frame to which President Fiedler commented they have a crew and to his knowledge builders may slow down but will continue working. He added in his conversations with them they are having the ground breaking for the Prichard Farms Project next week and hoping to get foundations in there and, since they can work longer down here, will then come down here and expect to have the foundations completed here in December and continue to work through the winter and be ready for sales in the spring.

6.            What happens to the property if Cornerstone decides not to build?  Mr. Repp responded there is a reverter in the agreement that they have to have sixteen building permits issued within two years of the agreement otherwise the property reverts back to the City.  President Fiedler added he believes they will build, especially with fifteen of the houses being sold prior to beginning construction.  He added if worse came to worse, they may need to change the pricing.

7.            With houses being constructed at the Cumberland Country Club property, will the City now be upgrading the road into the Country Club?  President Fiedler commented that the road is a private road and for that to change they would have to petition it and a decision would then have to be made. 

8.            Has there been discussion of putting in a water tower?  Mr. Repp advised the document includes a provision that at some point a water tower will probably be constructed which would serve that development as well as other developments annexed into the City in that area.

9.            Since some of the properties have been sold, should they show on the tax rolls?  President Fiedler commented they have to be completed and would probably be on the tax rolls next year.  He added there have been discussions of the location of a water tower since it will serve a larger area than the Country Club, but the discussions were not a result of their request but were the result of pre-planning.

            Mr. Combs, Winifred Road, asked if 15 units had been sold at the Cornerstone project by the Navel Reserve Center and if the whole site has been plotted and recorded?  He also mentioned abatement of taxes for the lots.  Mr. Repp responded that as far as he knows a sub-division has been recorded allowing them to update building permits; however, he advised the tax abatement for the lots is not automatic and to date no requests have been received.

            Ms. Janet Stevens, owner of property located at 554 Greene Street, addressed the Mayor and City Council expressing continued concerns regarding the use and ownership of a public right-of-way behind her Greene Street property. She referenced and distributed copies of a correspondence received by her from the City Solicitor regarding this situation.  She reviewed the problems she is experiencing as presented to the Mayor and City Council at the previous meeting.  Mr. Price explained there was confusion due to the tax rolls showing Mr. Malloy owns the paper street behind her home as well as the 15’ alley running between her home and back to the property.  He stated that it is clearly not the case and that there is an understanding that the 15’ right-of-way is access for everyone and no one can block it.  She questioned the right-of-way and possible closing of it as well as reasons for not closing it.     President Fiedler clarified a matter concerning a prior closing of a right-of-way referenced by Ms. Stevens and said he and Mr. Price would make sure the Police understand the situation and stated that they are not going to close the public street.  Ms. Stevens complimented the City Police Officers who responded to the problem.

            Mr. Repp, City Administrator, advised the City did receive three bids on the refunding of the bond issue and SunTrust was the low bid at 3.97%., M&T Bank 3.99%, and BT&T 4.1%

            Councilman Hendershot requested and made a motion to have a brief executive session to address a personnel matter.  Councilman Elliot seconded the motion and it was unanimously adopted.

Adjournment:

            With no further questions or comments to be heard, the Special Session was adjourned.

 

                                                                   Approved  November 4, 2005