The County Council of Wicomico County, Maryland met in Executive Session on Tuesday,

March 21, 2006, at 10:00 a.m., Council Chambers, Government Office Building, Salisbury, Maryland.

Anthony Sarbanes, Charles R. Dashiell, Jr., Edward T. Taylor, Stevie Prettyman, Gail M. Bartkovich, Marvin R. Long and Larry W. Dodd were in attendance.

President Sarbanes brought the meeting to order. Following corrections and on motion of Mr. Dodd, second by Mrs. Prettyman, the Minutes of March 7, 2006 were approved as amended.

President Sarbanes wished to make a statement about the ongoing discussion between the municipalities of Salisbury, Fruitland and Delmar and the County regarding tax differential. Mr. Sarbanes said it is important for everyone to review the State law in its entirety and asked the County Attorney to elaborate. Mr. Baker stated the issue has been whether or not there are similar services and programs that are being paid for by municipalities that are provided by the County; however, the law states one must consider the extent to which those similar services and programs are funded through property taxes. The annual audit performed by County government derives that figure and in most cases, the county’s property tax goes fully towards the Board of Education. Therefore, it is the County’s position th

at the similar services are not being funded by the County property tax; again, the property tax is used to pay for education.

Mrs. Prettyman agreed with the statement and said the perception that the County does not cooperate with the municipalities is not the case. Council does cooperate and is always willing to meet with municipal officials any time; however, the County does not necessarily agree with the analysis presented by the municipalities.

On another matter, Mrs. Prettyman wished to acknowledge a County resident who has been recognized by the Daily Record in its list of Maryland’s 100 Top Women. Mrs. Alexis Dashield, a resident of Fruitland, is very involved with the Fruitland Community Center. Mrs. Dashield will be recognized during a ceremony held in Baltimore during the first part of May. Mrs. Prettyman asked Council concurrence to invite Mrs. Dashield to a Council meeting to receive a Resolution. In addition,

Mrs. Prettyman motioned to approve a sponsorship of $2,100 for Mrs. Dashield; Mr. Taylor provided a second to the motion. Mr. Shea asked that if Council chooses to approve, the motion be amended to designate a transfer of funds from the Contingency Account to Community Promotions. Mrs. Prettyman amended the motion and Mr. Taylor amended his second. The motion was then unanimously approved.

Also, Mrs. Dashield will be invited to a Council meeting to receive recognition.

ADMINISTRATIVE DIRECTOR

Theodore E. Shea, II, presented the following items of business:

Constant Yield Hearing: Mr. Shea is recommending that the public hearing be held 2006 during the Executive Session on April 18. On motion of Mr. Taylor, second by Mr. Dodd, Council unanimously approved the recommendation.

Rescheduling of Council Meeting: The first Council meeting in July falls on a holiday. Mr. Shea recommends that the Executive Session be rescheduled for Wednesday, July 5, 2006. On motion of

Mr. Dashiell, second by Mrs. Prettyman, Council unanimously approved the recommendation.

Westbrook Apartments – The Shelter Group: Raymond S. Smethurst, Attorney, Jeffrey Paxton, Shelter Group and Patricia Petersen, County Finance Director came before Council to discuss a specific portion of the Agreement describing the terms for payment of deferred taxes. Mrs. Petersen offered that a reference to “net equity proceeds” differs from Council’s original interpretation and agreement of terms.

She stated this is additional exposure to the County and could result in the loss of deferred tax payments. In addition, the Developer has yet to comply with the County’s request for a written clarification of this issue. Edgar Baker, County Attorney, stating that while it is Council’s decision, the intent was to defer tax revenue until the end of the agreement, or, if the property would be sold or re-mortgaged. Mr. Baker agreed with Mrs. Petersen’s assessment that if, in the future economic conditions dictated that a sale of the property resulted in either a loss or covered the mortgage only, the County would not recover the taxes due. He felt that the understanding of the negotiating committee was that the County would recover all deferred tax revenue. However, it is difficult to mortgage property with such a clause.

Mr. Smethurst answered questions from Council members and stressed the following points:

The Shelter Group cannot retain any money from the project until first Mortgage Lender is paid and the City of Salisbury and Wicomico County designated PILOT payments are made. He further explained that the first mortgage is a modest $780,000; the remaining funding sources are through governmental tax credits and the risk to either governmental entity is very small. There was also discussion of the submission of annual financial information to keep the County informed. Mrs. Bartkovich suggested that Shelter Group representatives and Mr. Smethurst meet with Council in a work session to address any other questions or concerns before Council takes action. Mr. Dodd then made the formal motion.

Mr. Taylor, however, did not wish to delay Council decision any further. At Mrs. Prettyman’s suggestion to have Mr. Smethurst return for today’s open work session and the option to reconvene Executive Session, Mr. Dodd amended his original motion to reflect same. The second was provided by Mrs. Bartkovich and the motion was duly carried with six favorable votes and Mr. Taylor voting in opposition.

Board of Education Budget Transfers: Mr. Shea announced the request for budget transfers, as follows:

Transfer between major categories of $83,279; transfers under $1,000 between categories of $1,010; and noting transfers of funds within major categories in the amount of $70,000. Bruce Ford, Board of Education, added that there is a request for $207,000 in order to forward fund three portable units previously discussed. Later in the school year when the projected enrollment by school, a final determination would be made. Mr. Ford received questions from Council. On motion of Mr. Long, second by Mr. Dashiell, the budget transfers were approved as submitted. Mr. Long motioned to approve the forward funding request. Mr. Ford explained that the forward funding dollars are within the Board’s budget and requires no funding from the County and answered Council questions regarding the sources of said funds within its budget. Mr. Taylor provided a second and Council unanimously approved the request.

Emergency Purchase: Mr. Shea explained that the computer system used by the Finance Director completely failed and on advice of the IT Department, a new PC was purchased. Mr. Shea asked for and received Council concurrence for the purchase. On motion of Mrs. Prettyman, second by Mr. Long,

Council unanimously approved a transfer of $1,200 from the Contingency Account to pay for the purchase.

Burning Ban: Mr. Shea received a request from Emergency Services/Management to authorize a burning ban in the County, due to the very dry conditions. Council members verbally authorized the ban via a telephone poll. Mr. Shea is now asking Council to confirm their authorization. Mr. Dodd initiated discussion as to which agency is responsible for enforcing the burning ban. John Lenox, Director, Planning and Zoning, responded that his department would be willing, if given enforcement authority.

On motion of Mr. Dodd, second by Mr. Taylor, Council unanimously confirmed authorization for a burning ban and authorized Planning & Zoning enforcement power until further notice. Mrs. Bartkovich suggested that this pertinent portion of the Code be clarified. Mr. Dodd encouraged the public to exercise caution, since such fires places additional strain on local public safety resources.

Delta Airport Consultants Amendments 19, 21, 22: Robert L. Bryant, Airport Manager, briefly reviewed the amendments and requested Council’s approval:

Amendment 19: for coordination of the Wetland Mitigation Request for Proposal, Wetland Mitigation Proposal Review and finalization of Mitigation efforts related to the Runway 14-32 Rehabilitation and Extension Project. The total cost of $90,778 would be funded through an FAA grant of $86,239, with the remaining $4,539 shared equally by the Maryland Aviation Administration and the Airport.

The Airport’s portion would be paid with Passenger Facility Charges revenues.

Amendment 21: provides for management responsibilities with the Taxiway C, Phase II Project.

The cost of $135,426 is to be paid through the imposition of liquidated damages against the Contractor.

Amendment 22: provides project management responsibilities during the Runway 5-23 Obstruction Removal, Phase 1 project. The cost of $47,136 will be funded through an FAA AIP grant of

$44,779, with the remainder shared equally by the Airport and Maryland Aviation Administration.

The County’s share will be paid from PFC revenues.

On motion of Mr. Dashiell, second by Mr. Taylor, Council unanimously approved the three amendments as presented.

Notification of Annexation: With the inclusion of materials in the brief book, Council is formally notified of the City of Salisbury’s request to annex property identified as Johnson Road – Smith Annexation. This request has not yet gone before the Planning Commission for review and no action is required at this time. Mr. Lenox stated apparently, this request has been revised; if the development and zoning remains the same as that proposed earlier, it would be contrary to Council’s current policy regarding new annexations and zoning implications.

Reconsideration of Council Annexation Decision: Mr. Shea stated this agenda item was prompted by a call from Pastor Reinert, Faith Baptist Church, referencing his meeting with Council in December and his impression that Council would resolve the issue by January. Mr. Shea asked Council if there was interest in changing its position of not entertaining review of municipal annexations requests requiring a County zoning change, until Council made a final determination.

Mr. Taylor began discussion by stating that he believes a decision has been delayed long enough.

After giving much thought to this issue, he would like to put forth a motion to allow the project to proceed. He strongly suggested that Council should begin review of these annexation requests on a case-by-case basis, especially with those requests that were being processed when Council chose to deny review. Mr. Long provided a second to the motion.

Mr. Sarbanes called for comments. Mr. Dashiell asked that Council should be clear about motion, since it addresses more than one item; the concerns of Faith Baptist Church and to consider a policy of annexation review on a case by case basis. Mrs. Prettyman asked what criteria or procedure would be used to review on a case basis. Mr. Dodd said he could not support review on a case by case basis, which might result in litigation or become just a “formality”. He also referred to the Board of Education’s request for portable classrooms, stating that students should not be in portables; annexations are putting a strain on the County infrastructure, which it cannot afford. Mr. Taylor called attention to the 1998 Comprehensive Plan, which encouraged growth in the Metro Core; to date, the County still has 87% of it land in open space. Mrs. Prettyman stated that the County Council has never adopted the Metro Core boundary and asked the County Attorney why the City’s Metro Core boundaries were never adopted by the County.

Mr. Baker stated he is not sure whether there are boundary differences between the 1982 and 1998
Metro Core; he believes that possibly that Council just never came back to the Metro Core when the 1998 Comprehensive Plan was adopted. Mrs. Prettyman stated that what the Comprehensive Plan does not address is the timing of growth and the County’s ability to keep up with the needed infrastructure

Mrs. Bartkovich stated that the Planning Commission often refers back to the 1982 Plan for land use in the Metro Core area, since the County has no Metro Core area. She suggested this needs to be considered when reviewing the Comprehensive Plan. Mrs. Prettyman referred to her motion on November 15 to no longer entertain any additional requests for consent to residential zoning when it differed from the County’s Master Plan; until the County can put in stop-gap measures to address the issue, the decision should remain in place. Mrs. Prettyman acknowledged Council’s statement to Pastor Reinert for resolution by February, although this has not taken place. She referred to the April 4 public hearing for impact fees legislation, which would help to start addressing growth. She cannot support the motion. Mr. Dashiell reiterated that Council while Council has not yet put some policies to address revenue to pay for infrastructure being impacted by growth, Council has made a substantial plan around impact fees to help address the needs of schools; criteria should also be set for water and sewer needs in the annexation process. Mr. Dashiell suggested that when considering annexation requests, Council should require documentation from municipalities confirming capacity. Mr. Dodd agreed with this assessment. Mr. Sarbanes commented that there is no relationship between impact fees and the Church’s request; impact fee revenue is dedicated solely for public schools. Council has sought a funding source to support infrastructure and has settled on an impact that he doubts would solve the problem.

A roll call vote ensued, as follows: Mrs. Bartkovich, no; Mr. Long, yes; Mr. Dodd, no; Mr. Taylor, yes;

Mrs. Prettyman, no; Mr. Dashiell, yes; Mr. Sarbanes, yes. The motion was duly carried.

Mrs. Prettyman again asked what criteria Council would use to review annexations; Mr. Sarbanes replied that Council will look to Planning and Zoning and Mr. Baker for direction. Mrs. Prettyman referred to a Bill in Annapolis and suggested that subsequent to the outcome, Council should discuss an annexation policy. Mr. Dashiell asked the Planning & Zoning Director if it would be feasible to develop a helpful policy regarding water and sewer; Mr. Lenox stated that a County allocation policy would affect all incorporated municipalities and would require sharing their criteria/policy for meeting capacity with Council. For the record, Mr. Lenox stated that Faith Baptist Church has already received an amendment to the County Water and Sewer Plan, thereby, they have met the criteria.

Request for Funds: The Salisbury Junior Chamber of Commerce announced the return of the July 4^th

Fireworks Display. The display would cost an estimated $15,000; the Jaycees are asking for a contribution of $3,000. Mr. Dodd motioned to approve $3,000 from Contingency, with Mr. Dashiell providing a second. Mr. Long stated that this event certainly is an enjoyable community event, but he could not support the contribution since Council has been unable to help fund other non-profit organizations for several years. Calling for a vote, Council approved the request with six favorable votes and Mr. Long voting in opposition.

MAC, Inc. Grant Application: Peggy Bradford, Executive Director, MAC, Inc., advised Council that the organization plans to apply for an $800,000 Community Development Block Grant. The funds would assist in the construction and equipping of a new Salisbury-Wicomico Senior Services Center.

Mrs. Bradford stated that the proposed structure would be located on four acres that Holly Center has agreed to lease behind its facility. In addition, Mrs. Bradford and staff worked closely with our local delegation to ask the Governor for $1.5million; the Legislative Bill has now been approved by both the Senate and House of Delegates and would ultimately be funded through a Bond Bill. The State funding requires matching funds. MAC, Inc. The City of Salisbury is also supporting a Community Development Block grant application of $150,000.

DEPARTMENT OF FINANCE

Patricia B. Petersen, Director, submitted the following items of business:

Financial Report: General Fund Balance of 311,917; Capital Projects Fund, 55,545,337; total reserve funds of $8,854,065. Contingency report reflects year-to-date usage of $90,325 and a balance of

$884,675.

Mrs. Petersen brought to Council’s attention that the Wicomico County Housing Authority PILOT

(payment in lieu of taxes) payments for three years remain outstanding. Also, there is the issue of properties that remain in the name of Wicomico Leased Housing Corporation that require a proper title search and the ownership changed to the Wicomico County Housing Authority. Mrs. Petersen is asking for Council direction. There was amicable discussion among Council members, acknowledging that the Housing Authority has experienced considerable challenges in bringing its records to date, according to HUD requirements. Mrs. Prettyman asked if the agency could provide a “best guess” estimate;

Mr. Baker stated that action would depend on how many fiscal years have been audited; once audits are finalized, it is possible to calculate the exact amounts due. Mr. Taylor stated that it is time for Council to become involved and help the Executive Director and the Board of Commissioners resolve these

issues. Mr. Sarbanes asked Mrs. Ashanti, who was present, to join in this conversation. It should be noted that Mary Ashanti is a member of the Housing Authority’s Board of Commissioners. In response, Mrs. Ashanti asked exactly what kind of information Council requires; Mrs. Petersen responded that she would need the amount of the PILOT payments in arrears, a payment plan and have the Housing Authority employ an attorney to resolve the title transfer issues. Further discussion resulted in asking the County Attorney if his office could assist in the title searches, to which Mr. Baker responded affirmatively, if Council approves. On a final note, Council asked staff to send a letter to the Housing Authority Executive Director and each Commissioner to formally state the information that is required by the County. Mrs. Prettyman also wished to acknowledge that the current issues are no reflection on either the Executive Director or the Board, each of which have worked diligently on resolution of these

particular issues.

Authorization of Payment: Mrs. Petersen asked Council to authorize payment to a contractor for nuisance abatement of a Parsonsburg property, in the amount of $1,372.95. On motion of Mr. Taylor, second by Mr. Dashiell, Council unanimously approved payment as requested.

Financial Management System: The Board of Education and the County have been working together to seek out a mutually beneficial financial management system; however, the Board is inquiring if the County is willing to split the remainder of the bond equally so that each entity can pursue the system most suitable to its needs. Mrs. Petersen is agreeable to the request. Mrs. Prettyman stated she would prefer additional information before making a decision. Mrs. Petersen said cost issues are addressed in the Finance budget request; if Council wishes to review the budget prior to making a decision, she would advise the Board of Education that the bond money would not be available until the review takes place. There was Council concurrence.

Room Tax Collection Report: As of the last quarter, total room tax collection for the year is $558,00, compared to $408,00 last year. As of this date, there are no delinquent accounts.

John Ellis, Chief Accountant, reviewed a financial report highlighting significant year-to-date transactions for the General Fund and Civic Center Enterprise accounts. The County has received 86% of budgeted revenues and expended 67% of budgeted expenses.

STATE HIGHWAY ADMINISTRATION

Donnie Drewer, SHA, conducted a power point presentation that highlighted the State Highway Administration’s Master Plan for Wicomico County, including improvements to the intersection of

Route 349 (Nanticoke Road) and associated changes to Isabella Street, Parsons Road and Pemberton Drive. Mr. Drewer also stated that the interim improvements shown today in State Highway’s long-range plan and its highway needs inventory, will fit into the SHA’s plan for dualization of

Route 349.

Mr. Long asked for an update on the Main Street Bridge project. Mr. Drewer advised the bridge has been brought back to the site and the project should be completed approximately the second week of April.

Mr. Drewer also wanted to emphasize the cooperation between the City of Salisbury, the County and State Highway Administration to address these increasing traffic problems.

Mr. Drewer asked if State Highway might assume that it has Council’s vote of confidence with the plans; Council gave its endorsement.

DEPARTMENT OF PUBLIC WORKS

Johnson’s Retreat Project: Rai Sharma, Director, spoke on behalf of Gary Mackes and reported that a storm drain system that would serve all development on Sandy Acres Drive and which will have an ultimate outfall into Schumaker Pond, requires the granting of an easement to one property owner, which he is recommending. Council gave its concurrence; staff will proceed to hold the required

public hearing.

Update – Railroad Crossings: Mr. Sharma addressed the ongoing issue of the deteriorating conditions of the Parker Road and Naylor Mill Road railroad crossings and the lack of response from Norfolk Southern to the County’s correspondence. Mr. Sharma received a call yesterday from a Norfolk Southern representative, Preston Quade. After a brief conversation, Mr. Quade has agreed to approach the company’s engineers to propose that if the County is willing to purchase the railroad ties for both crossings (about $40,000), they would agree to provide the labor and equipment to make the improvements. Mr. Sharma is asking Council to consider agreeing with the proposal. After comments, Council concurred with Mr. Sharma’s request.

COUNTY ATTORNEY

Mr. Baker had no items to discuss.

PLANNING, ZONING & COMMUNITY DEVELOPMENT

Pate Matthews, Code Enforcement Officer, gave an update on steps taken to alleviate a nuisance complaint since January 2005. The property owner had made no effort to abate the nuisance and

Mr. Matthews is requesting Council’s approval to raze the structure. Mr. Dodd agreed that the structure is a hazard and motioned to approve the request; Mr. Long provided a second and Council unanimously approved the request for abatement.

PUBLIC COMMENTS

Mrs. Mary Ashanti, member of the Housing Authority Board of Commissioners, announced her intent to resign the Board as of May 1. She also expressed her respect for fellow Board members, the Executive Director and residents.

Ms. Karen Basile, Vice President, Friends of the Nanticoke River, Mrs. Tina Perrotta, member of

We Care About Wicomico County, Izzy Espinosa, student at Bennett High School and Ms. Kim Nock, all expressed their opposition to today’s vote, allowing the review of municipal annexation requests on a case-by-case basis. Ricky Dorsett, James M. Bennett student, referred to growing student populations and asked to have a good plan regarding growth that would be allowed. Ms. Kim Nock also voiced her opposition to the above referenced decision.

COUNCIL COMMENTS

Mr. Dodd thanked everyone who attended today’s meeting. He addressed a reference to voting against renovating Bennett High School and wished to correct the statement; he voted against the actual plan, preferring that a new high school be built at a different location. He also believes that the County needs to manage growth.

Mrs. Prettyman also thanked everyone for attending; stated that unfortunately, some comments had to be directed at certain members of the Council. She also stated that she thinks the County has taken steps back after today’s decision.

Mr. Sarbanes reminded everyone that: 1) a Legislative public hearing is set for April 4, 2006, 7:00 p.m. in Flanders Rooms of the Civic Center and 2)a public hearing for the proposed 2006-2007 expense budget is scheduled for April 18, 7:00 p.m in the Midway Room, Civic Center.

President Sarbanes also referred to a memorandum received from Delmarva Water Transport Committee addressing the importance of dredging the Wicomico River. He stated that if the River ever becomes unable to navigate, 85,650 trucks would be needed to transport the same amount of products.

Mr. Sarbanes then announced that he would not be seeking re-election in the November Election and expressed appreciation for the support of staff, citizens and his family.

A motion by Mr. Dodd to authorize a closed work session to discuss personnel items and legal issues and to reconvene Executive Session, if required, was unanimously approved by Council.

The meeting was then adjourned.

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Anthony Sarbanes, President

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Charles R. Dashiell, Jr., Vice President

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Edward T. Taylor, District 1

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Stevie Prettyman, District 2

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Gail M. Bartkovich, District 3

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Marvin R. Long, District 4

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Larry W. Dodd, District 5

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Theodore E. Shea, II

Administrative Director