Mayor & Council

MINUTES Town of Smyrna Council Meeting Bi-Monthly Meeting Monday, August 5, 2024, 6:45 pm - 8:00 pm Council Chambers MEMBERS OF THE PUBLIC WILL BE PERMITTED TO PARTICIPATE IN THIS MEETING by teleconference by calling 1- 305-224-1968 and entering Meeting ID number: 824 2409 5505, Passcode: 829114 or by visiting Join Zoom meeting at: https://us06web.zoom.us/j/82424095505?pwd=w5Y0eA6kHN2XBwisTXimDHHA9k6MbE.1 1. 6:45 PM - Public Hearing a. Ordinance No. 009-24 to revise Appendix A - Smyrna Zoning Ordinance to regulate the location of marijuana establishments in the Town of Smyrna Director of Planning, Jeremy Rothwell, presented the Public Hearing and Zoning Ordinance amendment. He went over that two months ago there was a brief discussion about marijuana, lots of public comments, and Mayor and Council decided to send the topic to the Planning Commission, to come up with a framework of where marijuana facilities could be located in town and under what circumstances they could be permitted. The Planning Commission met on June 26th and discussed the facilities. They all view them in a similar manner to the sale of alcohol and liquor stores, and feel that marijuana retail facilities should be permitted in the same areas as liquor store retail facilities. Liquor stores are currently permitted in Highway Commercial Districts and Shopping Center Districts. They could both also be in the Corridor Commercial Zoning district, but liquor stores are not outline, though that was the original intent. But marijuana retail facilities would be allowed only in these three districts. The Planning Commission recommends that marijuana cultivation and production facilities and testing facilities be limited to the IRP, Industrial Office and Research Park Zoning Districts. That is two areas: Duck Creek Business Campus, north of Duck Creek along rt 13 and Paddock, and Walmart Distribution facility/Smyrna Business Park on Artisan Dr. Maryland already has cultivation facilities, and for some years now. One in Warwick, west of Middletown, and one in Massey. The cultivation does stink, so not allowing these facilities near residential or other commercial areas is prudent, and keeping them to industrial park areas. Vice Mayor Rasmussen thanked Jeremy for the summary and opened the floor to public comment. He asked if there was anyone here to speak in favor of the ordinance? There were none. He asked if there was anyone to speak against the ordinances. Vicky Blair - she lives close to the Walmart Distribution Center and doesn't want to smell the cultivation facility. She doesn't smoke it and it's not in her house. She asked about the zoning and that it's in the Highway and Shopping Center, but not Corridor Commercial? Jeremy replied that liquor stores are currently not permitted in the the Corridor. Vicky continued to say that if liquor stores are not allowed then marijuana shouldn't either. She is worried about it be accessible to the teenages and youth of the town and having a place for them to go legally buy it. She feels that Council and Planning and Zoning have had their hands in this and they lose touch with what the people want. She said there's a lot of people who feel this way and it's a shame they don't come to these meetings to express their concerns. Vice Mayor Rasmussen asked if there was anyone else? A lady on Zoom spoke up, but someone in Council Chambers was already walking to the podium, so the Vice Mayor said they would address  the Zoom inquires after the podium speaker. Larry Strazeski - he talked about the finance portion of the facilities. If there is no money in retail sale, if it doesn't bring money into the town, then there's no point. He agreed that production and cultivation would bring money through the sale of utilities, but there's nothing for the town by means of retail. He disagreed that the sale of alcohol and marijuana were the same. He also said this would add expenses to the town and Police Dept, ending that he is not in favor of retail sales in any district of the Town of Smyrna. Vice Mayor Rasmussen asked about the person online wanting to speak. Ann Scharf - she is a doctor at Bayhealth. She mentioned that marijuana is a gateway drug and that nothing good will come of it. She has seen a lot of drug overdoses and her own family has been affected by marijuana which led to fentanyl. She does not believe having any marijuana facilities will have a good outcome. A gentleman asked about the smell of the cultivation facilities, as that has come up several times, and how these facilities would benefit the town. Councilman Pressley said there was no way to know, but they would have to buy water and electricity. The gentleman asked again if that would benefit the Town. Councilman Pressley said yes, the facilities would use a lot of water. The gentleman asked again about the smell. No one could provide an answer so he suggested more investigation into the facilities before Council makes their decision. He asked their thoughts. Vice Mayor Rasmussen said that since was a public comment section, Council can only listen and they will discuss more later on when this comes up again on the agenda. Vicky Blair - asked if during the agenda discussion will the public be able to comment, or will they have to wait until Council made their decision and then the public can talk? Vice Mayor Rasmussen - said yes it would be a discussion amongst the council members and they can refer to the public Vicky Blair - continued to say that if anyone on Council has a local business, business associate, or are personally involved with any discussion about getting a license to sell or produce, they need to recuse themselves from any discussion concerning marijuana coming to town. If she finds out, it's not good. There was some overlapping discussion about being threatened, and one lady clarified that it would be a conflict of interest. Councilwoman Dr. Upshur spoke up and also confirmed that she recognized Ms. Blair's comment as just being a statement. Vice Mayor Rasmussen ask for anymore comments. There were none and the public hearing was closed at 6:59 p.m. 2. 7:00 PM - Call to order Call to order at 7:00 p.m. 3. Pledge of Allegiance 4. Roll call Roll call taken by Danielle Pope. All present. 5. Additions/deletions to published agenda Mayor Johnson asked if there were any additions or deletions? Vice Mayor Rasmussen approved the agenda as written. Councilman Pope seconded. All approved. 6. Consent agenda a. Council minutes of 7/15/2024 Vice Mayor Rasmussen approved the Council minutes. Councilman Johnson seconded. All approved. 7. Non-agenda items a. Mayor and Council Members Mayor Johnson - thanked the staff for all they've been working on. Thanked the Belfint, Lyons, & Shuman auditors for working on and finishing up the 2022 audit. Talked about staff working hard to get FY23 in the system and closed so that Belfint can start working on that. Looking at December or January completion, which will then leave just the FY24 audit. Thanked the Town Manager/Police Chief for working on FY25 budget. Maybe looking to have everything done by November? Chief James said November is what they are hoping for. The Mayor continued that it gives Council opportunities to stop in on some of the meetings to see how the budget is going. This is a good idea because those meetings could probably answer some of the questions Council may have. He continued that the initial budget is a wishlist and then everyone goes down the list and sees what can and cannot be done. It's nice to see staff working and getting more up to par. He talked about having others look at what we're doing, as it leads to better transparency. He asked that everyone remember that threatening comments do no good during meetings. Council is there to help the town. He appreciated seeing a full room and encouraged questions. He brought up the opioid question that resident Vicky Blair brought up last time. He said he sits on the Opioid Commission and is the Vice Chair of the local government portion. The State collected roughly $46 million and gave out grants over $1.9 million with another $2 million recently deposited. Overall the State expects to collect over $100 million. This is a national process. He discussed mental health involvement and the available grants, which can be between $10,000 and $500,000. He talked about needing to get information from the fire and ambulance companies, and the police department on how many narcan runs they make, so he can take that number back to the State's Opioid Commission. This will get the ball rolling on money distribution to the local governments, so they can then give the money to first responders. Councilwoman Dr. Upshur - talked about her background in psychology and recognizing tone. Recognized Ms. Blair as being a little frustrated earlier in how she was expressing herself. It wasn't threatening, just frustration. Councilman Pope - talked about a HPS fundraiser on Saturday, August 17, 1p-5p, at End Zone Bar and Grill located at 235 Stadium St; $25/person. Half the proceeds will be donated to the HPS charity. Includes a 50/50. He talked about what HPS was - Hermansky-Pudlak Syndrome, a rare but potentially life threatening viral ear infection. Vice Mayor Rasmussen - he did not have any updates. Councilman Pressley - talked about Charter Review last month. They are working on 3 ordinances. Next meeting is September 13 at 5p, downstairs [Committee Conference Room]. Councilman Johnson - thanked Public works for their hard work; keeping the lights on and water flowing. Councilwoman Gott - [was on Zoom and addressed Council after Chief James]. She reminded Council about the Veteran forms, needing them by Thursday. Talked about the last Parks and Rec meeting and a POW/MIA chair the VFW would like to donate. The recommendation from Parks and Rec, would be to have the chair at The Opera House or Town Hall. Ideally it would be at The Opera House because that was the first Town Hall, but she wanted Council's opinion. She mentioned that she has spoken to Brian at the Opera House about this and he believes he has a great spot for the chair. However, it would be a decision Mayor and Council would need to make. She talked about the HPS event that Councilman Pope brought up and that more information would be on the website. She talked about the next Parks and Rec meeting, being August 21. Mayor Johnson - asked about the Veteran's forms and thought she wanted them by August 31st.Councilwoman Gott said she'll be home for a little bit, [hoping to get them sooner]. Councilwoman Gott - mentioned again that she would like feedback on the POW/MIA. Mayor Johnson - said he sent everyone the Council budget for FY25 and would like them to send him the comments.  b. Police Chief Chief James - he said there wasn't much to report for the Police Department c. Town Manager Chief James - he put together a report and talked briefly about it. He said some of it will be discussed later on through agenda items, including the Kent County sewer rate increase. He gave his time to the next item, which was the FY22 Audit presentation. 8. Old business, including discussion and possible action on the following items a. Third reading of ordinance 008-24 to amend the Town Code establishing discharge regulations for the town sewer system Vice Mayor Rasmussen motioned to approve the third reading. Councilwoman Gott seconded. All approved. 9. New business, including discussion and possible action on the following items a. Presentation of FY22 Audit Report Done by Belfint, Lyons, and Shuman [BLS] representative George Fournaris Mr. Fournaris - he said he has 3 reports: the normal report, the audited financial statements, and the yellow book internal controls report. He asked which Council would like to have presented and which order, given the potential time constraint. Mayor Johnson - said for the interest of all involved, they should take their time in presenting. He said that the financial statement needs to be covered because it offers the current status of affairs. Also they need to go through the funds - general fund, water/sewer fund, electric fund, and not worry about the government life statements. They can also go over the yellow book to compare what the State findings were as well. Mr. Fournaris - said they don't have the dector [?], but they have a powerpoint. He continued with what their role was with the Town. Overall, the auditors were, and are, there to audit financial statements which are made off government activities; mainly the general fund along with the business activities which are the water/sewer and electric funds. They have 2 auditing standards - the generally accepted auditing standards and the government auditing standards. Additionally they audit any federal funds. Their results and opinions are provided at the beginning of the financial statements. He spoke with Travis [Finance Director] and once these are approved, they will be on the website. This will allow citizens to look at the financial statements and if there are any questions, they can provide answers. Below is a brief breakdown of the discussed financial statements Qualified opinion - not good. Part of the financial statements could not be audited conclusively because in 2021 there was a positive difference of $135,000 recorded and the identity of where the difference came from could not be found. A plan with the Mayor was discussed to work this out in the current year. Other funds had a clean, unmodified, opinion. The Yellow Book Report -a summary about the financial audit. It's management's responsibility to the financial statements; to put them together. There was one change to the accounting policy last year because new accounting statements came out on leases; which would make a difference to the way leases were accounted for from 2021 to 2022. No transactions were entered by the Town; causing a lack of guidance. All the transactions for the 2022 year of recognizing the financial statement in the proper period. All financial statements include some estimates. Most sensitive estimates are accounts receivable allowances for doubtful accounts. They are based on historical experience with revenues, loss levels, and the analysis by management. These include, water, electricity, property taxes. Pension and post retirement costs are other big estimates. Each year and actuarial study is done. The actuarial applies estimates like What's the average life of a retiree going to be? How much will have to be paid out during a beneficiary's lifetime? This is where the actuarial reports are important and they [BLS] present them during this time. Depreciation is another large estimate - this includes equipment, buildings, etc. Mr. Fournaris mentioned to Council what the disclosures were for some of the statements; which are essentially explanations of the statements The audit had certain adjustments that were presents to management, who then posted the adjustments to make the statements correct. Non-material adjustments were also presented to management, but BLS didn't make the adjustments because they were small and non-material. There was some issue with performing the FY22 audit because of the new accounting system, staff turnover, and some other issues previously mentioned. Council and management were already made aware of this during the audit process. There were no disagreements with management, otherwise they would have to be reported to Council. All representations that were requested to management was given to BLS and they do not believe that management went to other auditors for consultations. Financial statements - the audit was performed under the the standards issued by the Comptroller General of the United States. BLS considers the Town's internal controls over financial reporting and tests the Town's compliance with various laws and regulations. Nine findings came through the audit - Material weakness: 1- the operating bank account was not reconciled before the audit, it was during the audit. 2- the conversion of the new accounting system was not handled correctly. It created a lot of problems. 3- the end of year financial closing process. A lot of adjustments were made after the end of the year so the statements could be correct. These should be done internally, but because of other issues [staff and new software] that was not done timely. Significant deficiencies: not enough to materially change financial statements or cause material problems, but they are still important and BLS has given recommendations to management on addressing them. 4 - inventory and inventory records did not match and had to be reconciled. These should always match. 5 - quarterly billing of property taxes. Some properties go online [for sale] in the middle of the year. Our Code says we can bill for that half year, 3/4 year, etc. BLS believed revenue could be lost if the Town waits and only bills once a year. 6 - BLS worked with Travis [Finance Director] regarding cost allocation accounting. Expenses being paid out of one fund should be paid out of other funds. BLS did a program to do that allocation but that should be done internally. 7 - 1099's for the pension plans have always been an issue. BLS believes it's been resolved. Technical issues: 8 - vendor profiles. Some are one-time vendors, meaning the profiles get reused. It's not good practice to make one payment to one vendor. BLS recommended that these vendors are treated like the regular vendors are. 9 - the Town was behind on its filings to the EMMA website; Electronic Municipal Market Access. It is a condition of the Town's bonds to post our financial statements to this site each year. Of these findings 5 still need to be corrected for FY23. For FY22, the federal funds and single audit were the majority work that BLS did. The Town spent about 1.8 million on federal fund, of which 1.5 million was the ARPA Program [COVID response]. And one finding dealing with reporting to the federal government had to be corrected. Mr. Fournaris continued with results after someone asked if he could speak up. He spoke about governmental funds which include general funds, grant funds (including ARPA), and capital improvement funds. These are not the same as the funds with electric and water/sewer. There was a $2.4 million deficit in the general funds, with which about $1 million was covered by transfers from other funds. The fund balance from profits is about $1.8 million, so this fund is positive. There was about a $1.3 million deficit, which was covered by some transfers, but there is a negative amount of about $1 million. There was about $1.5 million in the ARPA fund with $265,000 in expenses. A good amount of the $1.5 million was used for capital expenses. Overall governmental funds had a $2 million loss last year in comparison to a $1 million positive the year before. These are covered by transfers from electric and water, which is routine. The originally passed budget for [FY22] the general fund had $7.2 million in revenue and $13.7 million in expenditures. The plan at the beginning of the year is that difference gets covered by transfers from electric and water. It's not uncommon, as a lot of other towns and cities do the same. The actual revenue amount was $9.1 million which exceeded and the actual expenditure amount was $11.5 million which came under. Someone asked what the Town's fiscal year [FY] is. Mr. Fournaris said it was by calendar. He continued with the enterprise funds - electric and water/sewer. The electric fund had a revenue of $16 million and $14 million in expenditures. The operating income was about $2.2 million, of which about $1.1 million was transferred out to the general fund. The water/sewer fund had a revenue of $6 million and $4.4 million in expenditures. The operating income was $1.5 million, of which about half of that was transferred to the general fund. Someone from the public asked about the general fund having a surplus. Mr. Fournaris corrected and said the general fund had a deficit. They continued until the Mayor asked for public comments to be held. Mr. Fournaris wanted to clarify that there was $9 million in revenue and $11.5 million in expenditures, so the deficit was $2.4 million. The deficit was covered by transfers from the electric and water [funds]. The statements will be on the website. Mayor Johnson - asked about the overall picture and combining all the funds, where does the Town stand? A surplus? Mr. Fournaris - of all funds? Mayor Johnson - yes, a $2.4 million deficit, but $3.7 million surplus in water and so on. Mr. Fournaris - pointed out on page 20 of the financial statements where everything is together; overall change in the net position was $2.4 million. Someone in the audience asked if that meant taxes were decreasing now. Someone else said this is the audit for 2022. Mayor Johnson - mentioned that a lot of things that Mr. Fournaris spoke about, the deficiencies, will show on the FY23 audit, but everyone is responding now and should not be in the FY24 audit. Mr. Fournaris - agreed because of the various factors the Town has gone through, that we're just starting the FY23 audit, and it's August 2024, so there hasn't been enough time to make  corrections. Mayor Johnson - asked if there were any questions from Council. Councilwoman Gott - asked about the transfer of money. If $.15 million was pulled from the utility account to pay the general fund and $2.6 million was transferred, does that make it a surplus or was the money put back? Mr. Fournaris - he did not believe the money was put back. Councilwoman Gott - wanted to get clarification, because if the money wasn't put back, is it a surplus? Mr. Fournaris - he said that the transfers from electric and water were to cover the deficit in the general fund, and those transfers are permanent. Mayor Johnson - he said if the transfers never happened, there would have been $4.4 million deficit in the general fund and the surplus between water and electric would be $5.7 million. The net effect would be the same. They continued to talk about the transfers and what was or wasn't agreed upon. Mayor Johnson mentioned an ordinance about $1.5 million being the cap for transfers and they haven't been adhering to it but now they will be. Jeremy [Director of Planning] spoke up about when Chris Simms gave his utility presentation and he mentioned about the rates being based off of $1.5 million being transferred from water/sewer and electric to cover the general fund. Everything else was supposed to be put into a capital reserve account for each of the utilities. Councilman Pope - asked about the managers having a corrective action plan and if Council would get a copy. Mayor Johnson - the managers do the write ups for the auditors then they have to come out for Council to read. Councilman Pope - asked about the upcoming working session and if some of these could be address. Mayor Johnson - said yes. Continued on the motion to accept the audit. Vice Mayor Rasmussen motioned to approved the FY22 audit as presented. Councilman Johnson seconded. All approved. Vice Mayor Rasmussen - he asked when this would be on the website. Chief James - said tomorrow, he just needed the approval. There was some confusion on whether 8a was read or not. It was confirmed that 8a was read. b. Approval of the FY22 Audit Report and amending FY22 Audit fees Mayor Johnson - asked if Chief James would like to speak on this. Chief James - the budget was $100,000. Per the auditor there were some additional things they did because of staffing, bank reconciliation, and other things. There was about an additional $100,000 worth of additional fees. Mayor Johnson - discussed the process. The audit had to be completed by June. Otherwise we would have issues with DEMEC and our bond rating. Therefore the audit firm had additional people working to make sure everything was done in a timely manner. The Town had staffing issues. The next audit should not cost that much because we are more on track than before. Councilwoman Dr. Upshur - asked how much the additional fee cost since we didn't have proper staffing.  Mayor Johnson - everything that has been talked about on Council for the last 8 months. They [Belfint] spent hundreds of additional hours. There was discussion back and forth about the actual amount, which was about $105,000, bringing the total to about $205,000. Vice Mayor Rasmussen - made a motion to approve the amendment to the FY22 audit fees. Councilwoman Gott seconded. Mayor Johnson called for a roll call vote. All voted aye. Mayor Johnson abstained because of his personal relationship with BLS and the people who did the presentation. Councilwoman Dr. Upshur - thanked him for his transparency. c. Council Code of Conduct Mayor Johnson - discussed the document he submitted. It is about how they should treat each other, what they should and shouldn't do, and how to treat citizens. Discussed that citizens have 3 minutes to speak, but Council can change the vote to 5. He said he wasn't going to read all of it and if anyone was interested in reading it, he can email them. He did read the following: "Every Council member desiring to speak shall address the Presiding Officer and, upon recognition by the Presiding Officer, shall confine the remarks to the question under debate. Council members shall preserve order and decorum during Council meetings and shall not, by conversation or other action, delay or interrupt the proceedings or refuse to obey the orders of the Presiding Officer or these rules. Council members shall, when addressing staff or members of the public, confine themselves to questions or issues then under discussion, shall not engage in personal attacks, shall not impugn the motives of any speaker and shall at all times, while in session or otherwise, conduct themselves in a manner appropriate to the dignity of their office. Administrative staff and city employees addressing Council or public. Members of the administrative staff, and employees of the city, shall observe the same rules of procedure, decorum, and good conduct applicable to the members of the Council. Public members addressing the Council. After recognition, any public member desiring to address the Council shall state his or her name for the record and limit his or her remarks to the question under discussion. No person shall enter any discussion without being recognized by the Presiding Officer. Any public member addressing the Council is limited to three minutes unless the Presiding Officer grant further time." He continued to talk about keeping professionalism, respecting questions and opinions, and so forth. He addressed Council, stating they can pass this, use it, amend it, talk about it later. They are here to work together. Councilman Pope - asked if this would be on the website. Mayor Johnson said it could be. Councilwoman Dr. Upshur - asked about amendments? Mayor Johnson said they can go through and then talk about it again. Councilwoman Gott - asked if this could be a topic on the upcoming workshop so they can come back together and have a finalized document? A few overlapping voices thought that was a good idea.  Councilman Pope - asked if he could make this a motion to have this discussed during their workshop session? Mayor Johnson said that was find. Councilman Pope made the motion. Councilwoman Dr. Upshur seconded. All approved. d. Guidelines for recording and posting of committee meetings Councilman Pope - he wanted to know the current guideline for recording and posting committee meetings. Was there anything in writing or in place? Chief James - he is working on an operational manual and he will make sure that this is one of the polices. He has about 8 to 10 of them. Generally though, the chairman is the one who gets the Zoom from Danielle. Councilman Pope - asked about the ability to record and where it's stored [the recordings] because it has come up several time. Chief James - there's a staff liaison directly for Council, so all that will go and be communicated with Danielle. Walt [IT Manager] put procedures downstairs [Committee Conference Room] on how to make sure that someone can start the recording process and what to do with it. Walt - mentioned that there are 2 ways - send to an email or store locally on a shared drive/OneDrive and the information is laminated above the touchpad downstairs [Committee Conference Room]. e. Adoption of Ordinance 009-24 to amend Appendix A - Smyrna Zoning Ordinance to regulate the location of marijuana establishments in the Town of Smyrna Mayor Johnson - asked Jeremy [Director of Planning] if he wanted to present. Jeremy asked if they were going to introduce it or discuss first. There was overlapping discussion on making a motion first. Vice Mayor Rasmussen made the motion to approve it. Councilman Pressley seconded it. Mayor Johnson opened the floor for discussion. Jeremy - went over what was discussed during the Planning Commission meeting. They did review it and were unanimous in their terms of how marijuana facilities should be regulated; which is in alignment with Delaware. The State outlines 4 different facilities: cultivation, manufacturing, testing, and retail. He went over a lot of the things he discussed in the Public Hearing session. The Planning Commission agreed that the cultivation facilities be limited to the Industrial Office and Research Park zoning districts: Duck Creek Regional Business Campus, Walmart Distribution, and the Smyrna Business Park. He mentioned that there were a few production facilities in Maryland - between Warwick and Cecilton, and Massey. The facilities look like giant green houses. Massey's is about 2 acres in size. Warwick/Cecilton is about 25 acres in size. He agreed that there is a smell. The consensus of the Planning Commission with regards to retail facilities is to treat them like they do with liquor stores. Those are currently permitted in Highway Commercial Zoning district and the Shopping Center district. During rezoning the Commission did forget to include liquor stores in the created Corridor Commercial Zoning district. This ordinance would rectify the error and would permit liquor stores in the Corridor Commercial Zoning district; commercial properties fronting US13, from the Rest Stop to Simon's Corner. So the amendment would then allow retail facilities to also be permitted in the 3 districts. There is also the ability to permit something by right, meaning if someone wants to open a shop in a strip mall, and if it is permitted use, they can get a Certificate of Zoning Compliance. The Planning Commission recommends to allow by right or prohibit it. He discussed conditional use and special exception. Conditional use - goes to the Planning Commission for recommendation, then to Council for a vote on the conditions. Special exception - similar, but would go to the Board of Adjustment. It is a fair assumption that if the conditional use or special exception was used and one property was permitted but another wasn't in the same zoning district, it could lead to legal action. It is a recommendation to permit either by right or deny by right in the zoning district. It allows transparency for the applicant and the residents on whether it is or isn't permitted. Councilman Pressley - asked for clarification on what would happen if it comes back to them and they want the people to do certain things, that could end up being [Jeremy spoke over to explain]. Jeremy - discussed downtown as an example. If a retail facility was permitted on one street corner but denied two streets down, it could be taken to court, if this was a conditional use; which there is always a possibility with conditional use. Mayor Johnson - asked if we were in risk of having as many marijuana stores as liquor stores. Vice Mayor Rasmussen - spoke up and said there is a distance limitation like their is with liquor stores. Councilman Pressley - asked how many? Vice Mayor Rasmussen - thought that there was a half mile limitation. Solicitor Barrett Edwards - spoke up about the State codes and approvals. The Commissioner may refuse to grant a license to sell anything related to marijuana to an establishment that is located near a church, school, college, or substance abuse facility. The Commissioner shall refuse to grant a license to sell anything marijuana related when there's is an existing licensed marijuana establishment within 1200 feet by accessible public road/street in any incorporated city or town, or within one mile by accessible public road/street in an unincorporated area. Councilman Pressley - asked if before they came to town they would have to go through the State? Barrett Edwards - said yes, this is heavily regulated through the State. When they go to the State they have to show the Town's approval. Councilman Johnson - asked about the drug free school zones and if the daycares were added to that? Jeremy - he wasn't sure if that was a State Code requirement or not. He said it was briefly discussed [by the Planning Commission] that maybe the Town should have more restrictive standards, but the consensus was to keep with the State's standards, keep it as transparent and easy to understand. Mayor Johnson - with all that is brought up, he would like to table this item because he wouldn't be able to vote. He has some questions. Vice Mayor Rasmussen - asked about the IORP area for cultivation and production and the smell that keeps being brought up. He asked if odor mitigation requirement was brought up. Jeremy - said it was not because of practically standpoints. The technology is emerging and revolving If too much was specified in an ordinance, it could box the Town in terms of specifications. As a new facility, the Planning Commission can approve, deny, or table an application. Vice Mayor Rasmussen - agreed that it was evolving, but mentioned that there have been best practices developed around odor mitigation and he would want to make sure that the Planning Commission had that information so they could ask the right questions when considering an application. Councilman Pope - asked if the revenue side of things has been considered; like taxing the sales and so forth? Jeremy - mentioned that certain uses have certain conditions and Council can put those conditions on the uses depending on the district, but revenue he was unsure of. He did say that generally, cultivation facilities are relatively high water users and at times high electric users. The facilities look like large greenhouses so there is potential in funds from utilities, but he didn't want to weigh in on that discussion. Vice Mayor Rasmussen - wanted to clarify from an earlier comment that this is an adult use product. Someone has to be 21 or older to purchase marijuana; just like tobacco and alcohol. It just wanted it to be clear. He also mentioned that the restrictions they place on these facilities do not apply to other business; he used a business downtown as an example that sells bongs, vape cartridges and accessories because that is allowed, as is the CBD oil they are selling. The issue is that people can get high off CBD oil. He talked about how neighbors can smoke outside their house and it's legal. Councilwoman Dr. Upshur - spoke up that Chief James was negating some of the comments. Chief James - said that marijuana cannot be smoked outside a house. A person should be inside. Jeremy - spoke up about a CBD manufacture in Harrington and from his understanding there hasn't been an issue with smell. He understands that the cultivation facility is what brings the smell. Overall though, Council asked the Planning Commission for recommendation and he presented it; that they have the framework for permitting facilities. Mayor Johnson - he opened the floor to public comment. A lady - concerned about the additional drain on electricity, water, and runoff into the water/sewer systems? Jeremy - that would be a permit under the Dept. of Agriculture that the cultivation and production facilities would get. The State regulates the use of pesticides or other chemicals. The lady asked about the use of extra electricity? Jeremy - said that we have worked with our engineers in the specified districts regarding electric and water and there is a cap and the numbers are already fixed. If a business would cause that cap to be over, the business couldn't go in that district. The lady asked about the limitation for certain businesses they can't be near and if a new church, daycare, or school comes in, how does that affect the facility? Jeremy - said he would defer to our solicitor, but essentially the facility could be non-conforming. There was further discussion between the lady, Jeremy, and Barrett about the non-conforming and grandfathering process. Example was that if a marijuana facility was opened and then a church decides to open a few doors down, the marijuana facility doesn't have to move; that falls on the church for not doing their research on locations. Irene Strozeski - mentioned that there are 13,000 people in town and that some are feeling held hostage by Council. She doesn't have an issue with growing marijuana, but she does with the retail facilities. She saw how DuPont did things, brought up toxins, 3-Mile Island, and other places. She said these things happened because they were allowed. She doesn't feel that there's room for marijuana facilities nor necessary. Medical marijuana can be picked up at a dispensary if needed. A lot of people have concerns. A lady came up to ask about property taxes. She sat back down when it was mentioned that this was just about marijuana. A guy spoke up saying he felt that no one knows enough to make a decision. He brought up the smell, if an environmental impact study has been done, how it's going to affect residents, and so forth. Jeremy - he said that if they do nothing, under the rules retail uses are permitted in every commercial zoning districts, and marijuana retail will be classified as such; therefore permitting it in the zoning districts just like cigarettes. Cultivation would be considered nursery type facilities which are permitted in the IORP district. The guy asked that if Council doesn't do anything the facilities are permitted? Jeremy said yes, because they would be labeled as such.  Another guy spoke up and suggested reaching out to other cities and get their opinions. He said it was done before, when the Walmart distribution center was being discussed. Mayor Johnson - he brought the conversation back to the Council. Vice Mayor Rasmussen - he said that he agreed with visiting the facilities, some are close by and also now throughout the country. There is one over in Maryland that gives tours. He withdraws his motion to approve the amendment. Councilman Pope - agreed in facility visits and doing more homework and due diligence. Mayor Johnson - there's a motion to table it. Several voices spoke up to second the motion. All approved. Jeremy - spoke up and said he can provide a list of facilities that he is aware of so they can drive by and check them out. Barrett - spoke up about the options. 1 - do nothing, 2 - adopt the ordinance, or 3 - draft a difference ordinance that bans them from town. Mayor Johnson - he said that they would do nothing and table until the next meeting. f. Resolution No. 005-24 proposing annexation of 1630 Joe Goldsborough Rd and adjacent roadways into the municipal limits of the Town of Smyrna, designating the proposed zoning classification, scheduling a public hearing, and referring the proposal to the Town Planning Commission. Motion to approve made by Vice Mayor Rasmussen. He asked about the dates. Jeremy - this will go to the Planning Commission on August 28 and back to Council on Sept. 16. Barrett - said that everything is in the resolution, so they can move to adopt it. Vice Mayor Rasmussen moved to adopt the resolution. Councilman Pope seconded the motion. All approved. g. Kent County sewer rate increase impact Chief James - Kent County notified that that they will be raising their maintenance costs, effective July 1, 2024. The increase is $3.41/1000 gallons from the $2.84 it was. This was discussed by the Sewer Advisory Board on 2/14/2024. He reached out to Chris Simms who did the Town's rate study and the 2024 budget was passed with this anticipated and had a 10% increase in already. There would be about a $8,000 different each month. Unlike electric, this is not mandated to pass on, so he is just letting them know and what their direction would be. Mayor Johnson - said to not consider this and wait until the FY23 audit is done. Vice Mayor Rasmussen - brought up the potential impact this year, which could be an additional $40,000 cost to the town for sewer. If the increase is not done, next year the rates would need to include the already planned 10% increase and this increase, which is about 2.5%. We would be under collecting this year, but it would need to be addressed for FY25 rates for the FY25 budget. Mayor Johnson - brought up that they did double taxes and he does not believe they should consider this. Councilwoman Dr. Upshur - asked if they were taking a vote? Mayor Johnson - it would be a motion to increase it or not. Councilman Pressley - they've done enough and made a motion to not increase the rate. There was some overlapping discussion.  Councilwoman Gott - she wants to hear from staff because of the previous transfer of funds. There was more overlapping discussion. Vice Mayor Rasmussen - asked if there was any staff opinion that delaying this would be an issue for this year's budget. Chief James - said that we sit as a team and he is confident that we can cover this without any major changes. This is something that came up on Thursday and he got the answer from Chris Simms. Councilman Pressley - this change will happen in 2025 and that we do not make money off this, it is passed through. Mayor Johnson - all in favor of not increasing say aye. All said aye. 10. Presentations and other public comments (3 minutes) a. Creation of an International Council Mayor Johnson - would like to have an International Council because of all the different people in town and wants to make sure that everybody has a voice. He has someone presenting, Mr. Wally. Mr. Wally - a Commissioner with the State representing African and Caribbeans in the area. They promote international relations, agriculture, and Delaware as a whole. He is also a businessman and they have a platform for Delaware African-decent markets, to help promote businesses and to help them grow. There's a need to promote small businesses and communicate. What this could do is look at the economic development of the Town and make recommendation to the Mayor and Council members and work directly with local small businesses and identify resources. They would promote cultural and historical heritage of the Town's community, as well as foster socio-economic relationships with other cities, towns, and so forth. They are looking to have a voice at the table, and voice for every community in the Town of Smyrna. There's nothing in Smyrna but there is potential - hotels, restaurants, and so forth. They have representatives but no one speaking on their behalf. Mayor Johnson - thanked him and open the floor to other guests. A lady asked if there are businesses already wanting to open marijuana facilities in Town? The Mayor said yes. There was discussion about permits and if they can just open, which they cannot. She said that Dover has a facility called Best Buds. That is a medical facility. What would be coming is recreational, as medical is already allowed. She said that they should do something. Mayor Johnson said they would at the next meeting. Debra Wineglass - research on marijuana needs to be done. There's more than just Best Buds around; like Columbia Care. She said the application process to sell recreational started August 1, ending November 1. She agreed with Vicky that it would be a conflict of interest if anyone on Council had interest in marijuana. Does think it's a good idea about the income the cultivation facilities would bring to town. Clarified if the audit information would be on the website and asked about the audit hiring process. That was the firm we already have [BLS]. Gene Mullen - brought up the easements behind Oak Dr. A few years ago a transformer blew, and the town didn't have access to it because the easement was filled with bushes, trees, fences, sheds, etc. A letter was written by Dave Hugg [previous Town Manager] and a crew came in to remove all the debris to so the easement was accessible. There now are fences and sheds back in the easement, even a pool, and it's not accessible anymore. He heard that the easement was going to be eliminated, but it's deeded and the Town doesn't have the authority to remove it. He would like the Town Manager to contact the residents and see if they can get the easement cleaned back up. The last time the transformer blew, the town put trucks between him and his neighbor's house and tore up their yards. This easement is not only for utilities, but for residents also. He went on to discuss about the history of easements and alleys that are through town and these were for vehicle and resident access. He discussed the Charter and standing committees; which is 6. Any committee is 1 council chairman, 2 council members, and 4 citizen members. Mayor Johnson - asked which committees? Gene Mullen - Finance, Utility, Police, and Economic Development. He thought there were more, but he didn't remember. He was on Council from 2006-2009, chairman of the Finance Committee, the Utility Committee, and two others, he was also on three other committees. The Charter calls for these committees and he understood that Council voted to remove them. Mayor Johnson - explained why some were removed. They wanted Council to have the ability to have first hand information and before the second council meeting each month would be a workshop session. The Finance Committee was brought back. Gene Mullen - mentioned that with three members of Council on the Finance Committee [example], and all council members were invited to show up and talk. He went on to say that when he was involved in the audit back in 2008, the fee was $300,000, so we're doing well at $200,000. There is a requirement about an audit being done and he doesn't know when we did ours. Mayor Johnson - we just finished FY22, the second one will be done at the end of this month. Audits are due six months after January. Gene Mullen - brought up that the committees need to be reinstated because the Town doesn't have the authority to change the Charters, only the legislators in Dover can and it has to go through both houses. He's just offering the info because if we are not having committee meetings, we need to bring those back up. Vicky Blair - asked about holding back on bringing marijuana for six months or if they make a decision is that locked in; like a stop-gap. This would allow time to research. Barrett - said she's talking about option 3 he mentioned earlier; to pass an ordinance that prohibits it, which then gives time to evaluate other options. Councilman Pope - is there a timeline with option 3 before the State could step in and overrides us. Barrett - anyone who wants to open a facility has to go to the State and they have to prove that they are in compliance with the Town's regulations. He was unsure of the timeline for that. He also hasn't heard that medical dispensaries converting to retail. We are talking about a zoning code amendment, but this would be a general code amendment to band the different marijuana facilities. Rehoboth did something similar. That wouldn't require a public hearing, it would just go through the 3 reading processes which Council could waive if they wanted to act quicker than that. Councilman Pope - asked if that was something Barrett could draft up for the next meeting. Barrett - said yes, they could put both options on the next agenda. Councilwoman Dr. Upshur - her concern is that only a few residents are present, not all of Smyrna, and that this would be word of mouth. She suggested a town hall forum. It would be out in the open and they could have more accessibility to information. Barrett - asked for clarification. Councilwoman Dr. Upshur - there's only the same people in the audience. If the marijuana discussion was held in a forum it holds onus on some more of the neighbors. Barrett - there's no legal requirements as this has been published in the newspaper and the public has been given the opportunity to participate. If there is more notice that we should give, that's something that Council can do. He brought up places discussion could be held - Citizen Hose, middle school, or other places. It's Council's choice.  Vice Mayor Rasmussen - brought up that UD conducted research around public support. They did a polling to find out the support for legalized recreational marijuana. He found a pivot table that said 60% were for it, while 30% were against it. Democrats and Independents leaned more for it, while Republicans didn't. Those over the age of 65 were also against it. Councilwoman Upshur - felt that this information would be important to the residents Jeremy - pointed out that at Citizen Hose people cannot join by Zoom like they are with Council meetings. Also people can't hear in Council Chambers, so a larger forum may have issues. Vicky - she just wanted to through it out there as a stop-gap for now. Barrett - talked about adopting a moratorium until council can make a determination. There was discussion on the retail permits and what could be allowed. Vicky - brought up that Councilman Pope said 2 months ago the mics would be fixed, she wanted to know if they were. He said they were still being worked on it. She asked about water meters and if a plumber is needed to install it after a resident purchases it. The answer was yes. She brought up that the current monthly fee is $7.35 and asked if that was correct. Someone said that it was $25. She asked if that could be updated on the website because it's misleading. Shannon Pearson - wanted to piggyback on the easement comment. She called and asked to speak to Code Enforcement. She has called twice and no one has gotten back to her. She's asking that they do something. Mayor Johnson - addressed Chief James, who said he has already sent a message. Asked if there were any more comments. There were none. 11. Adjournment Mayor Johnson asked for a motion to adjourn. Councilwoman Dr. Upshur motioned. Councilman Johnson seconded. The meeting was adjourned at 9:26p Posted on 07/29/2024 at 4:30 PM NOTE: This agenda as listed may not be considered in sequence. This agenda is subject to change to include additional items, including Executive Sessions, and/or deletion of items, including Executive Sessions that arise at time of meeting.