Wicomico County, MD
  Council Minutes
December 20, 2005

The County Council of Wicomico County, Maryland met in Executive Session on Tuesday, December 20, 2005, Midway Room, Wicomico Youth and Civic Center, Salisbury, Maryland. Present were Anthony Sarbanes, Charles R. Dashiell, Jr., Vice President; Edward Taylor, Stevie Prettyman, Gail M. Bartkovich, Marvin R. Long and Larry W. Dodd.

President Sarbanes brought the meeting to order calling for approval of the Minutes of December 6, 2005. On motion made by Mr. Dashiell, seconded by Mrs. Bartkovich and unanimously carried, the Minutes of December 6, 2005 were approved.

Mrs. Bartkovich called attention to the approved 2006 Holiday Schedule for County employees and noted July 4^th is a regularly scheduled meeting day for the County Council. She wished consideration to changing the date of that meeting. The Administrative Director suggested the change could be made as it became closer.

PRESENTATION

President Sarbanes presented a plaque to the Parkside High School Field Hockey Team in recognition of their recent win as 2005 Class 2A State Championship with a record of

14-4. Coach Jody Holloman, Bayside Coach of the Year, introduced team members and thanked Council for recognizing this historic accomplishment. Coach Holloman shared that the team’s average grade point average is 3.6 and, that the team has been recognized by the City of Salisbury and Board of Education.

ADMINISTRATIVE DIRECTOR’S REPORT

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

Board of Education - Budget Transfers

The Board of Education gave its approval to make transfers of funds between major categories of its approved Annual Budget for fiscal year 2005-2006 for the month of December in the amount of $212,468; subject to Council approval. On motion made by Mr. Long, seconded by Mr. Taylor and unanimously carried, Council granted approval.

The Board also transferred funds within the major categories of its Annual Budget for fiscal year 2005-2006 for the month of December 2005, in the amount of $26,500. Council action is not required for transfers within major categories.

In accordance to a gentlemen’s agreement to make transfers between categories under $1,000, the Board reported transfers for the month of December 2005 in the amount of $825. Council action is not required.

Exclusive Pouring Rights – Contract Payments

The Board requests permission to utilize unanticipated revenues realized from its contract with Pepsi Cola Bottling Co. as requested for the past three years, in the amount of $26,500. Funds would be earmarked in Capital Outlay for the purpose of upgrading facilities at the County Stadium. Upon motion made by Mr. Taylor, seconded by Mr. Dashiell and unanimously carried, Council approved the request.

Wastewater Treatment Plant (WWTP) – Mardela

Mr. Shea recalled the Board of Education bid for the Mardela Wastewater Treatment Plant; the project was bonded two years ago. The bid was returned at a cost considerable over the available funds. Additional funds in the amount of $150,000 are earmarked in the November 2005 Bond Issue. The second bid was received and is still over the available funding by $65,339. In order to allow the project to proceed, Mr. Shea recommended two transfers from Contingency Accounts to the Wastewater Treatment Accounts. In response to clarification of project numbers the Director of Finance corrected account numbers and confirmed sufficiency for the following transfers:

From To

Contingency Account 435 Mardela Wastewater No. 444

Contingency Account 475 Mardela Wastewater No. 485

Upon motion made by Mr. Long, seconded by Mrs. Prettyman and unanimously carried, Council approved the transfer of appropriations as requested.

Fruitland – Warrior Avenue/Mills & Taylor Annexation

For information purposes, Mr. Shea advised that notice has been served by the City of Fruitland in accordance with Article 23A, Section l9 of the Annotated Code of Maryland of the pending annexation to the City of Fruitland for certain land situated contiguous to, and binding upon, the northern and western boundary lines of the City of Fruitland. The property is zoned in the County R-20 Residential and the City of Fruitland seeks substantially the same zoning under zoning of R1-C, General Residential. In response to questions posed by Mrs. Prettyman, Mr. Lenox explained the pending annexation is before Council as required by law, that the annexation is scheduled before the Planning Commission in January 2006; the Commission will evaluate the compatibility to the County’s zoning (Master Plan), make an administrative decision and, if the annexation is substantially the same it will not come back to the County Council however if it is not substantially the same, it will come back to Council and the owners will be required to wait for a decision based on the Council decision not to entertain any additional requests for consent to zoning for residential purposes, when it is different from the County’s Master Plan. Mrs. Bartkovich asked whether a water and sewer amendment would be necessary. Mr. Lenox said he believes a portion of property to be developed is already included within the City and may already be covered however, if it’s a new annexation it will have to come back for an Amendment. NOTICE is further given that the City of Fruitland will hold a Public Hearing on said annexation on February 7, 2006 in the Fruitland City Hall, Fruitland, Maryland.

Enterprise Zone designation and Manufacturer’s Exemption

Mr. Shea reported that Life Shield Engineered Systems, LLC requests Enterprise Zone designation. The firm meets qualifying criteria and the City of Salisbury recommends the designation.  Enterprise Zone designation provides for tax credit incentives, assists in marketing, development, and job creation.  On motion made by Mrs. Prettyman, seconded by Mrs. Bartkovich and unanimously carried, Council concurred in the Enterprise designation.

The company also requests a manufacturer’s tax exemption on machinery and equipment used in the conduct of its business in Wicomico County. Upon motion made by Mr. Dashiell, seconded by Mr. Long and unanimously carried, Council granted approval for next year, contingent upon State approval.

Wicomico County Free Library

Mr. Long (Council Representative to the Library) stated the Library has a Saylor Network computer system, widely used by the County’s system. The Library wishes to purchase to a generator to back the system at a cost of $40,000, most of which has been raised through various resources however there is an $11,000 shortfall which Mr. Long requests Council appropriate. Mr. Long then motioned for approval. Mr. Taylor seconded the motion and it was unanimously carried. Source of Funding is Capital Reserve Fund.

Elevator – Government Office Building

Mr. Shea announced the renovation/repair to the elevator in the Government Office Building will not be completed before January 23, 2006. The next two County Council Meetings (January 3 and January 17, 2006) and the Capital Improvement Public Hearing (January 17) will be held at the Wicomico Youth and Civic Center.

School Funding

President Sarbanes recalled that nine County schools need to be renovated and suggested that Council consider an Excise Tax to help fund costs of renovation.  He stated that Impact Fee revenue would only provide $600,000 for Bennett High School renovations, leaving a shortfall of $1.6 Million to complete the project. President Sarbanes suggested asking for authority for an Excise Tax through State enabling legislation; if received, the Legislative Bill could be crafted by Council, including exempting agricultural and farm buildings. Revenue generated beyond the $2.5 Million to cover Bennett High School would be earmarked for other school projects. Additionally, Mr. Sarbanes does not agree with raising a Transfer Tax or Recordation Tax as an alternative revenue source. While the original request for enabling legislation was not approved at the State level, Council should request it again, since there appears to be more community support (Chamber of Commerce, Greater Salisbury, developers, realtors, etc.). Mr. Long offered a motion that Wicomico County request enabling legislation from the State Legislature for an Excise Tax and the only exclusion for farm property.  Mr. Taylor seconded the motion with emphasis that, should the County fail to obtain the authority from the State, Wicomico County would move forward with the school renovations utilizing other funds. Mr. Long clarified that the request for enabling legislation was approved through the House of Delegates the first time but failed at the Senate level.  Mrs. Prettyman recalled earlier discussions of the tax, that there were unanswered questions regarding the level of revenue the Excise Tax would generate; that the growth is not in the County, rather, growth is the result of annexation of large tracts of land, creating higher density; and the question of whether this could be implemented in corporate areas.  She stated what she is hearing is what President Sarbanes wants is enabling legislation that gives an unlimited taxing authority without a cap. Also, calling attention to the exemption factor, Mrs. Prettyman recalled that the proposed Bill for enabling legislation would include remodeling, additions, or at any time a building permit was obtained, which to her is not acceptable. If approved now, by the time it is returned to the County, half the year will be over.  President Sarbanes offered responses as he understood the questions including, that municipalities would be required to collect the tax, that the amount of revenue would be decided at the local level.  In researching other counties, Mrs. Prettyman stated there is definition as it pertains to the tax and limited taxing authority.  Mrs. Bartkovich agreed that it is unknown how much revenue would be generated from an Excise Tax or Impact Fee; however, the County does have the authority to impose an Impact Fee, which would cross municipal boundaries, where growth and the demand on schools are occurring. It is her opinion the County needs to have an Impact Fee, not an Excise Tax at this time. The County Attorney confirmed that the legislature authorizes the County to collect Impact Fees imposed in municipalities. Mr. Dodd confirmed that: all are in favor of schools and meeting school needs: that the sitting Council inherited this problem; more discussion is needed on how to pay for the improvements; both the Excise Tax and Impact Fee should be evaluated; and that the level of revenue each would generate is still unanswered.  He does not agree the County should make this major decision without further discussion. Mr. Long recalled that renovations for Bennett High School have been discussed for more than ten years, but the new issue is the inflated cost of construction; further, the Facilities Planning Committee presented a study, held public hearings and made a recommendation which was approved by the Board of Education. Mr. Long concluded the State House of Delegates approved the Excise Tax over the past two years however it failed at the Senate level.  Vice President Dashiell stated that he felt for two years the Excise Tax was the appropriate way to raise additional revenue to support Capital Projects and believes it has benefits above the Impact Fee; however, enabling legislation was not passed because it’s a political issue. There is no unanimous agreement among Council members. Clearly, the request does not have the support of State Senator Stoltzfus. Mr. Dashiell concluded that there is not enough support to impose an Excise Tax and agrees the County should impose an Impact Fee.  Mrs. Prettyman called attention to amended legislation in Hartford County that provided for the collection of a School Development Impact Fee for new construction or development and asked if the legislation was specific to Hartford or if it is across-the-board.  Mr. Baker responded that he would have to research the legislation.  Calling for the vote to request enabling legislation for an Excise Tax Mrs. Bartkovich voted no, Mr. Long yes; Mr. Dodd no; Mr. Taylor yes, Mrs. Prettyman no, Mr. Dashiell, no and President Sarbanes, yes. On a four-to-three vote, the motion to request an Excise Tax failed.

WICOMICO COUNTY HEALTH DEPARTMENT

Memorandum of Understanding /By-Laws for Eastern Shore Oral Health Action Network

Dr. Judith Sensenbrenner, Health Officer came before to present the MOU. About a year ago the Wicomico County Health Department received a federal network grant from Rural Health Association to develop a dental network. The State requested the department to undertake because of the many dental providers that that provide public dental health to citizens on the Eastern Shore. The grant initially targeted Wicomico, Dorchester and Caroline Counties but has expanded to include Somerset and Worcester. On motion made by Mrs. Bartkovich, seconded by Mr. Dashiell and duly carried (Mrs. Prettyman was not in attendance for the vote) the motion was carried.

Mrs. Prettyman rejoined the meeting at this point.

DEPARTMENT OF FINANCE

Statement of Latest Investment Rates/Balances for all County Funds

Patricia Petersen, Director, submitted the Financial Report. Total General Fund balance as of December 20, 2005, $476,715. Capital Project Fund balance, $58,431,725; Total Major Non-designated Funds, $81,906,761; and Total Reserve Funds of $8,839,601. Contingency balance, $966,800.

Highlights of Significant Financial Transactions

Ms. Petersen reviewed the referenced report citing year-to-date figures for collected and uncollected taxes, investment interest, recordation tax revenue and enterprise account revenues through November 30, 2005.

Permits to Operate 

On motion made by Mr. Dodd, seconded by Mr. Taylor and unanimously carried, Council approved the following permits to operate for the period beginning June 1, 2005 and ending May 30, 2006:

Kenneth Trippe, Whitehaven Hotel, located at 2685 Whitehaven Road, Whitehaven, Maryland, for the period beginning June 1, 2005 and ending May 30, 2006, unless revoked sooner.

Dorothy Bivens, Serene Acres, located at 20614 Nanticoke Road, Nanticoke, Maryland, for the period beginning June 1, 2005 and ending May 30, 2006, unless revoked sooner.

Capital Sinking Fund

Salisbury Fire Stations 1, 2 and 16 have applied for their proportionate share of the Capital Sinking Fund; Stations 2 and 16 request $16,000 each and Station 1 requests $35,000. Bank certification confirming matching funds accompanied the requests. On motion made by Mr. Dodd, seconded by Mrs. Prettyman and unanimously carried, Council approved disbursements.

Chesapeake Bay Restoration Tax

At the request of Council Ms. Petersen surveyed the 23 Maryland Counties to determine what qualifies as an exemption. Data received from 22 counties indicates that 9 counties have an exemption program and 12 do not; one county is continuing to give consideration to exemptions. Of the counties that have a program in place, eight different county departments collect the fee. The City of Salisbury however has a dual program, a portion is administered by Social Services as part of the Mayor’s Hardship Program and the actual Restoration Tax is administered by the City’s Finance Department. Ms. Petersen recommended that Council not offer an exemption for the current fiscal year, discuss what qualifies as an exemption during budget work sessions and make a determination at that time for the next fiscal year. Mr. Long motioned to approve her recommendation. The motion was seconded by Mr. Dashiell and unanimously carried.

P. RAI SHARMA, DIRECTOR OF PUBLIC WORKS

Mr. Sharma thanked members of the County Council, Administration and Department of Public Works for their expressions of sympathy during the recent passing of his Mother.

James M. Bennett High School –Track and Field Team

Head Coach Michael Orr requests use of the County Landfill, Brick Kiln Road, for training purposes. He requests permission to train once per week each Monday, weather permitting, between 3pm - 5pm. Mr. Sharma stated liability waivers would be obtained from each member prior to their entering the premises and he recommends approval. On motion made by Mrs. Prettyman, seconded by Mr. Dodd and unanimously carried, Council granted approval, subject to review of the liability waiver and/or modification of the agreement by the County Attorney.

Bypass Construction

Mr. Sharma recalled during the bypass construction several County roads were relocated. Now that construction is complete, he presented an Agreement between State Highway Administration and Wicomico County to transfer the roads back to the County system for maintenance. On motion made by Mr. Long, seconded by Mr. Taylor and unanimously carried, Council approved the request.

Methane Gas Plant

Mr. Sharma recalled the solid waste effort by Genco to develop a system using methane gases to generate electricity.  An agreement to lease land at Newland Park Landfill to operate such a system was presented to Wicomico County and approved; the company is working to obtain funding from the banking industry. In order to continue the documentation process, Mr. Sharma submitted a form for review by the County Attorney confirming Wicomico County is leasing land to operate the facility. On the advice of the County Attorney the document will be presented to the President for his signature.

Holiday Schedule

Mr. Sharma announced the County’s Landfill and Transfer Stations will be open Monday, December 26, 2005.

EDGAR A. BAKER, JR., COUNTY ATTORNEY

Resolution No. 605 -A Resolution of the County Council of Wicomico County, Maryland granting a Payment-In-Lieu-Of-Taxes and a tax deferral for a low-income housing development, known as Westbrook Apartment Homes. Mr. Taylor asked when the project would begin because of his concern for displaced residents due to proposed development in the Fitzwater Street area, to which Attorney Robert Taylor responded should be within the next year. Mr. Dodd agrees affordable housing is a good project for the County and wished to know if housing other than low-income would be constructed in that area, to which Attorney Taylor responded, no. Mr. Shea recalled in a meeting with The Shelter Group, a letter of clarification of financial arrangements should be received for City and County confirmation of arrangements. He asked that Attorney Taylor would inquire about the letter and that Council would approve the PILOT contingent upon receipt of a satisfactory letter. On motion made by Mr. Taylor, seconded by Mrs. Prettyman and duly carried, Council approved Resolution No. 605 with the contingency. Vice President Dashiell recused himself from the discussion and the vote due to a professional relationship.

Resolution No. 606 –A Resolution authorizing the execution and delivery of a Master Lease Agreement, Equipment Schedule No. 02, an Escrow Agreement, and related instruments, and determining other matters in connection therewith. This represents additional financing under the Master Lease Agreement with Sun Trust Leasing Corporation for the Shore Energy proposal with the Department of Recreation and Parks. On motion made by Mr. Long, seconded by Mr. Taylor and unanimously carried, Council adopted Resolution No. 606.

Development Impact Fees

Mr. Baker submitted drafted legislation for the proposed Development Impact Fee. He requested Council review the document and provide comment. President Sarbanes wished to discuss the draft during the January 3^rd work session and Mr. Baker suggested Council include review of the Tischler Report before the work session. Mrs. Prettyman opined implementing an Impact Fee without an Adequate Public Facilities Ordinance (AFPO) would not have the same value. Mr. Dodd asked if Mr. Baker had begun to draft an AFPO, which he had not. President Sarbanes asked for, but did not receive Council consensus to draft an AFPO.

County Comprehensive Water and Sewer Plan – Revision or Amendments

Mr. Baker called attention to a working document for Council’s review that would establish criteria to address requests for water and sewer amendments. Mr. Sharma confirmed requests from municipalities should include an analysis, water capacity, appropriations for development and what remains. Council is requested to return comments to the County Attorney.

TIF Contribution and Land Use Agreement for the Salisbury Mall Property

Mr. Baker recalled that two issues were not resolved regarding the aforementioned; the hotel parcel, which he recommends be deleted since there doesn’t seem to be any interest in it and the proposed greenway to be developed and maintained by the developer, mutual agreement on price to compensate the County for access. Mr. Dodd shared concerns from citizens about the density of the project and traffic patterns. Mr. Sharma agreed, adding that he had not requested but had not seen a parking plan. Therefore, he can not make any recommendation or move forward with the project. Mr. Dodd would like to see a reduction in the density. Planning Director Jack Lenox confirmed the Plan reviewed thus far, is subject to Council approval; Glen and Civic Avenues are County roads. As the project goes to its final design, the developer will have to sort out the parking demands for whatever the final density is so that issue will always come back to the County. The issue before the Salisbury City Council is zoning, which applies to the property and the property is within the City limits. Hence, the County is waiting for the development uses to be resolved, move to final design, then submit plans to Mr. Sharma for his approval and ultimately Council’s. Mr. Baker stated it is his understanding the City is proceeding with legislation to establish the district. Mr. Lenox clarified that the request before Council is not the authority to park on Glen and Civic Avenues; that is an authority Council retains, its County property. The request is to approve the Tax Increment Financing Agreement. On motion made by Mr. Long, seconded by Mr. Dashiell and unanimously carried, Council approved the TIF Agreement.

Wicomico Partnership for Families and Children – Local Management Board

Linda Hardman, Director, joined by Philip Tilghman, Chair, updated Council on the Truancy Reduction Pilot Program, designed to prevent juvenile crime by ensuring that students are attending school and engaging in positive extracurricular activities and, her submission to the Governor’s Office of Crime Control and Prevention for a grant in the amount of $150,000 to provide these services. Wicomico County has received notification of grant funds awarded in the amount of $220,171, to allow for inclusion of a gang prevention initiative. A 25% match is required at the local level; existing funds are available for the match. Ms. Hardman is currently in discussion with law enforcement to partner in this effort. Mr. Tilghman suggested Council continue the opportunity to invest in grant applications and, with funds allocated in the Operating Budget for a grants coordinator ($5,000 of the $30,000 allocated has been used) make the Local Management Board the grants coordinator for the next three years; this comes on the end of another grants writer leaving due to salary negotiations; Local Management is effective in soliciting grants and collaborating efforts with other local agencies. On motion made by Mr. Dashiell, seconded by Mr. Taylor and unanimously carried, Council voted to allow the Local Management Board to be the County’s grants agency, not to exclude other County departments from soliciting or administering grants, to include the remaining $25,000 in the budget allocated to the grants position. The appropriation will be $25,000 this year and $30,000 in subsequent years.

PUBLIC COMMENTS

Karen Baisle, resident, expressed appreciation to Council for approving a new high school and for the Impact Fee geared toward schools. She asked for continued consideration to maintain schools, for school public safety and over capacity.

Linda Kent, We Care About Wicomico County, complimented Mr. Dashiell for understanding the political process as it regarded the Excise Tax and asked that Council would act on the aforementioned comments by Ms. Baisle and not forget the APFO, Adequate Public Facilities Ordinance.

Terry Cohen, resident, expressed disappointment on the approval of the Tax Increment Funding for the Old Salisbury Mall without the assurance that citizens will benefit. Further, she expressed concern in the project’s density, impact on roads and public safety and traffic. She wished to ask Council to become bipartisan heroes as it regarded improvements to and for the schools in Wicomico County; the first step in her opinion is an education Impact Fee. She also cautioned Council not to fear an APFO.

COUNCIL COMMENTS

Mrs. Prettyman remarked that she feels an APFO acts as a governor on the engine of growth providing clear guidance to developers on where and when development will be, helping them to avoid unexpected delays.

Council members thanked residents for their comments, their valuable input and wished the citizens of Wicomico County a Merry Christmas and a healthy and prosperous New Year. Councilman Dodd recognized the attendance of Salisbury City Council member Debbie Campbell.

On motion by Mrs. Prettyman, seconded by Mr. Taylor and unanimously carried, Council voted to enter a closed work session in accordance to Section 10-(508)a of the State Government Articles of the Annotated Code of Maryland.

There being no further business to come before Council in Executive Session, the meeting was adjourned.

_________________________________________

Anthony Sarbanes, President

__________________________________________

Charles R. Dashiell, Jr., Vice President

__________________________________________

Edward T. Taylor, District 1

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Stevie Prettyman, District 2

__________________________________________

Gail M. Bartkovich, District 3

__________________________________________

Marvin R. Long, District 4

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Larry W. Dodd, District 5

__________________________

Theodore E. Shea, II

Administrative Director

Minutes of December 20, 2005