City of Cumberland, Maryland

Regular Session

Council Minutes

Tuesday, March 21, 2006

            The Mayor and City Council of Cumberland, Maryland, met in Public Session on Tuesday, March 21, 2006, in the Council Chambers of City Hall.   President Fiedler called the meeting to order at 7:28 P.M.

INVOCATION – Councilman Hendershot

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES

CALL OF ROLL:

            Present: President Fiedler; Councilmen Elliott, Hedrick, Hendershot, and Rephann.

            Department Heads and/or Officials present: Jeffrey E. Repp, City Administrator; H. Jack Price, Jr., City Solicitor; Vickie Swink, Economic Development Coordinator; Kathy McKenney, Historic Planner;  William Herbaugh, Fire Chief; and Sharon S. Clark, City Clerk.

Minutes -  

            Regular Session – March 7, 2006,  Motion made by Councilman Hendershot, seconded by Councilman Elliott to adopt the minutes as written.  The minutes were unanimously adopted as written.

Special Motion –  was made by Councilman Elliott that the Minutes of an Executive Session of the Mayor and City Council held Monday, February 20, 2006, be approved as written and that the minutes of today’s meeting reflect that the Mayor and City Council met in Executive Session on February 20, 2006.  This meeting was held on a vote of 5 to 0 to discuss Real Estate and Personnel issues in accordance with Sections 10-508 (4) and (1) of the State Government of the Annotated Code of Maryland.

            The motion was seconded by Councilman Hendershot and the minutes were unanimously adopted as written.

Reports –   Motion was made by Councilman Hendershot, seconded by Councilman

 Hedrick, and unanimously approved to adopt the following routine reports:                            

            1.    Personnel Activity Reports submitted by April Howser, Human Resources Officer, for the period March 5 – 18, 2006

            2.      Fire Department Report submitted by Chief William Herbaugh for the month of February 2006

            3.      Permitting and Code Enforcement Report submitted by Jeffrey Rhodes, Director of Administrative Services for the period February 18 – March 3, 2006

            4.      Public Works Significant Events Report submitted by Kevin Hagerich, Public Works Director, for the month of February, 2006

Resolutions - 

            1.  After being read in Title only, Councilman Elliott made a motion, seconded by Councilman Hendershot to adopt a Resolution to provide support to PIRHL, LLC for acquisition of low income housing tax credits (2006) from the State of Maryland for the Cumberland Family Town Homes.

            Mr. Repp, City Administrator, explained language was added to the Resolution providing for the approval of sites for this project by the Mayor and Council.  It is to provide support of PIRHL LLC group of Ohio for State of Maryland low-income tax credit program which is a requirement of the application package for the competitive program.  The project is for construction of 50 low to moderate income housing units that will be lease/purchase units in the City.

            With no further questions or comments, the Resolution was unanimously adopted.

            2.  After being read in Title only, Councilman Elliott made a motion, seconded by Councilman Hendershot to adopt an Introductory Annexation Resolution to enlarge the Corporate Boundaries of Cumberland – Near Willowbrook Road lying contiguous to the corporate limits of the City of Cumberland, 15.09 acres more or less

            Mr. Repp, City Administrator, explained the Introductory Annexation Resolutions establish the process and advertising requirements.  A public hearing will be conducted July 25, 2006.    He described the three areas referencing a map placed on the wall in the Council Chambers and said they all involve the same general parcel of property proposed for the Willowbrook Marketplace Commercial Development.  Mayor Fiedler announced there would be a public hearing for all three resolutions on Tuesday, July 25, 2006, and asked for questions concerning the process.

            With no questions or comments, the Resolution was unanimously adopted.

            3.  After being read in Title only, Councilman Hendershot made a motion, seconded by Councilman Hedrick to adopt an Introductory Annexation Resolution to enlarge the Corporate Boundaries of Cumberland – Near Willowbrook Road lying contiguous to the corporate limits of the City of Cumberland – 23.75 acres more or less

            With no comments or questions being presented concerning the Resolution, it was unanimously adopted.

            4.  After being read in Title only, Councilman Hendershot made a motion, seconded by Councilman Hedrick to adopt an Introductory Annexation Resolution to enlarge the Corporate Boundaries of Cumberland – Near Willowbrook Road lying contiguous to the corporate limits of the City of Cumberland - .30 acres more or less

            With no comments or questions being presented concerning the Resolution, it was unanimously adopted.

Orders (Consent Agenda) -  Upon request of Councilman Rephann consent agenda items numbers 4 and 21 would pulled for individual handling.

            Upon the request of Ms. Terri Socha, 1822 Bedford Street, Cumberland, consent agenda item numbers 1, 5, and 14 through 20 were pulled for individual handling.

            Councilman Hendershot made a motion to adopt the remaining consent agenda items, seconded by Councilman Hedrick.  The motion to adopt the following orders was unanimously approved:      

            Order No. 24,332  Accepting the bid of Atlantic Machinery, Inc. for the purchase of a Sewer Cleaning Bucket Machine - $64,000

            Order No. 24,333 Accepting the proposal of SunTrust for Lease-Purchase Financing for equipment financing – $323,968.91 @3.98%

            Order No. 24,336 Authorizing the Mayor and City Clerk to execute a Purchase Option Agreement between the Mayor and City Council and Interfaith Housing Alliance, Inc. for parcels of property located on Shriver Hill

            Order No. 24,337 Approving a Historic District Tax Incentive Credit for property located at 57 Baltimore Street - $3,599.39

            Order No. 24,338 Authorizing the City Administrator to execute Change Order No. 1 to the existing contract with Desman, Inc. for the George St. Pkg. Garage Renovations- $7,540.00

            Order No. 24,339 Accepting the proposal of Furlow’s Garage, Inc. for the sole source purchase of a single axle dump truck - $108,968.91

            Order No. 24,340  Appointments to Boards and Commissions – 1 App’t. each -Economic Dev. Comm., Historic Preservation Comm., and the Neighborhood Adv. Comm.

            Order No. 24,341 Accepting the proposal of Whitman, Requardt and Associates, LLP  to for an overflow long term control plan - $26,000.00

            Order No. 24,342 Accepting the quote of Atlantic Machinery for the purchase of a Jet/Vacuum Truck as part of the Township of Upper bid package - $208,991.02

            Order No. 24,343 Authorizing the City Administrator to execute Hold Harmless Agreements for the reduction in size of water meters

            A motion was made by Councilman Elliott to adopt order number 1, seconded by Councilman Hendershot. 

            Ms. Teri Socha asked for further details of the employment agreement.  Mr. Repp, City Administrator, explained the position is an hourly position for a one year term with no benefits.  Councilman Rephann added that this is a support person for the Economic Development Planner in case of a turnover of personnel.

            With no further comments or questions, the following order was unanimously adopted:

            Order No. 24,331 Authorizing the execution of an Employment Agreement between the Mayor and City Council and Terri L. Bennett to perform the services of Economic Development Specialist for the City

            A motion was made by Councilman Hendershot to adopt order number 4, seconded by Councilman Hedrick.

            Councilman Rephann, addressing items numbers 4 and 21, commented that in the past he has not been supportive of the application for the Development Rights and Responsibilities Agreement.  In this instance, he said he feels the individual should have applied and had the agreement adopted by the Mayor and Council about a year ago.  He added a substantial amount of work has occurred and he feels this sets a bad precedence.    He further stated that while he is not supportive he understands what the Mayor and Council are trying to do and he does support the over-all efforts.

            The following order was unanimously adopted:

            Order No. 24,334 Accepting the bid of Carl Belt, Inc. for the Calvert Terrace Extension Project - $58,449.09

            Ms. Terri Socha, 1822 Bedford Street, Cumberland, addressed the Mayor and City Council asking why they would be doing upgrades to Calvert Terrace and what the criteria was for deciding this is something the City would do. 

            Mr. Repp, City Administrator, explained legislation enacted by the Mayor and City Council in 2000 does not specify specific criteria applicants have to meet, but requires petition to the Mayor and City Council laying out requested participation from the Mayor and Council.  The current petition mentioned upgrading Calvert Terrace and sewer upgrades and water contributions up to the property.  He further stated that each is different and considered separately.  The only criteria the City has established is that the City’s participation be limited to a 50% level of the estimated property taxes the project will generate over ten years and that a repayment mechanism be included in the agreement that if sufficient taxes are not generated by the project in ten years, that dollar amount be paid back to the City.    He said the intent was to develop private residential development in Cumberland and that each case is handled separately.  He also stated that there was a public hearing on this last year and there have been additional discussions.

            Mayor Fiedler stated that his belief was that is was primarily designed for developers for the building of developments rather than a single family house and requested discussion of that matter.  He added this makes financial sense and the pay back is guaranteed if sufficient tax revenues are not generated by the project. 

            Mr. Repp stated that while this petition was received and the public hearing was conducted in September of last year there had been on-going discussions with the developer at least a year and a half prior to that. 

            Ms. Socha said her question is about public discussion of the pros and cons of the project.  Mr. Repp told Ms. Socha that this is the opportunity for discussion. 

            Mr. Repp again reviewed the criteria set by the Mayor and Council.  Ms. Socha questioned this being an interest-free loan to which Mr. Repp confirmed that this agreement does not call for interest to be paid because most of the participation is improvements to a public street - Calvert Terrace, not private land.

            Councilman Hendershot spoke in support of the development saying it looks at having five new homes in Cumberland valued between $175,000 and $500,000 generating approximately $150,000 in tax in the next ten years.

            Ms. Socha asked if the project was dependent on the City doing the upgrades on Calvert Terrace.   Mayor Fiedler replied they believe it was, as the land had been sitting empty for years with no offers for development of it. 

            Upon question of what the Planning Commission considered when they approved this, Ms. Socha was advised she could obtain a copy of the Planning and Zoning minutes for review of the discussion of this project.

            A motion was made by Councilman Hendershot, seconded by Councilman Hedrick to adopt item number 5. 

            Mr. Repp explained this order abates personal property taxes on a business that is no longer in operation.

            With no further comments or questions, the following order was unanimously adopted:

.          

            Order No. 24,335 Authorizing the City Comptroller to abate the Personal Property taxes for Tri-State Foods, L.P. for the 2002 Tax Year - $2,723.60          

            A motion was made by Councilman Hendershot to adopt consent agenda items 14 through 20, seconded by Councilman Elliott.

            Mr. Repp explained the orders are for pre-annexation agreements with property owners involved in the Resolutions of Annexation.  He further stated that all property owners with the exception of one have signed pre-annexation agreements.  He clarified that upon annexation they would receive city water and sewer rates.

            With no further comments or questions the following orders were unanimously adopted:

            Order No. 24,344 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Darrell and Lori Spence in exchange for providing certain public services to the Developer or any subsequent Property Owner

            Order No. 24,345 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Genise and Lyle Adams in exchange for providing certain public services to the Developer or any subsequent Property Owner

            Order No. 24,346 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Richard C. and Richard D. Rudolph in exchange for providing certain public services to the Developer or any subsequent Property Owner

            Order No. 24,347 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Martin and Carol White in exchange for providing certain public services to the Developer or any subsequent Property Owner

            Order No. 24,348 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Gary and Cathi Mallow and GEM Development, Inc. in exchange for providing certain public services to the Developer or any subsequent Property Owner

            Order No. 24,349 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Harry and Karen Little in exchange for providing certain public services to the Developer or any subsequent Property owner

            Order No. 24,350 Authorizing the Mayor and City Clerk to execute a Pre-Annexation Agreement between the Mayor and City Council of Cumberland and Jerry and Karen Lepley in exchange for providing certain public services to the Developer or any subsequent Property owner

            A motion was made by Councilman Rephann, seconded by Councilman Hedrick to adopt order number 21. 

            The following order was adopted on a vote of four (4) to one (1) with Councilman Rephann voting in the negative:

            Order No. 24,351 Authorizing the Mayor and City Clerk to execute a Developmental Rights and Responsibilities Agreement between the Mayor and City Council and Young Family, LLC, West, II for property located on Haystack Mountain

Reports and Letters of Commissions, etc., and Employees:

            Letters -  

            1. From the City Clerk – notification of interest in continued employment for Fiscal Year 2007

Letters, Petitions, Applications, Proclamations -

            Proclamation:      

            Mayor Fiedler presented a Proclamation proclaiming Municipal Government Month – April, 2006.  Councilman Elliott made a motion to adopt the proclamation, seconded by Councilman Hendershot.  It was unanimously adopted.

            Letter:

            1.  From Jerry L. Frantz, Director of Finance for Allegany County advising of a scheduled meeting March 29, 2006, to discuss FY 2007 Tax Differential     

Requests To Be Heard –

            Presentation :

            Mayor Fiedler, on behalf of the Mayor and City Council, presented Mr. H. Jack Price, City Solicitor, with a framed painting portraying the Cumberland Narrows in recognition of his appointment as Judge of the District Court of Maryland.  He congratulated Mr. Price on his appointment and thanked him for his twenty-four (24) years of service to the City.

            Ms. Rebecca Grabenstein, Decatur Street, Cumberland – asked what would happen to the person in the area being annexed who didn’t have an agreement.  Mr. Repp responded that they would be brought with the same services and conditions as the other properties being brought in.  He explained by example.  He further stated those property owners currently pay only County taxes, however, when annexed would pay both City and County taxes.  Mayor Fiedler further stated that this land is under option and the City has been requested by the people who have it under option to start this process.  It is believed that by the time of annexation all of the land will be owned by the company with the option on it.

            Mr. Thomas Conlon  - recognized Mr. Price and his service to the City and commented about the painting presented to Mr. Price and about the Cumberland Narrows.  He asked the Mayor and City Council to consider a recommendation to the State for the creation of a State park.

            Mayor Fiedler stated the property behind the Narrows, bought by the State, the City has 300+ acres to develop a park and are in the process of starting that.  He also stated the City has put in an application in an effort to obtain another part to develop it as Route 40 National Highway develops for a possible welcome center.

            Ms. Teri Socha -   Congratulated Mr. Price on his appointment. 

            She then asked what the plan is for discussion of the tax differential.  Mr. Repp stated that at this point the County makes presentation to the municipal governments and that information is brought back to the various councils for their response.   Mayor Fiedler further reviewed the process.  Mr. Price said the laws states they can give the City what they want as long as the figure fits within the statuary framework.  He added it can be challenged, but the bottom line is that when the math is done, it is done.    

Adjournment -          With no further requests to be heard, the meeting adjourned at 8:18 p.m.

Approved April 4, 2006

Lee N. Fiedler, Mayor

City Clerk