Mayor & Common Council Meetings

CITY OF WESTMINSTER, MARYLAND MAYOR AND COMMON COUNCIL MEETING SEPTEMBER 24, 2012 QUORUM: A meeting of the Mayor and Common Council was held in the Council Chambers at City Hall, 1838 Emerald Hill Lane, Westminster, Maryland on the evening of September 24, 2012, at 7:00 P.M. Mayor Utz; Council President Halstad; Council Members Chiavacci, Frazier, and Wack; City Administrator and Acting City Clerk Wolf, Chief of Police Spaulding, Director of Public Works Glass, Interim Director of Planning, Zoning, and Development Horn, and City Attorney Levan were present. Director of Recreation and Parks Schroers and Councilman Whitson were excused from attending. MINUTES: Upon motion of Mr. Chiavacci, seconded by Mr. Frazier and unanimously passed, the minutes of the Council meeting of September 10, 2012 were approved. CONSENT CALENDAR: Mr. Whitson moved to approve the Consent Calendar, which consisted of August 2012 Departmental Operating Reports and Benecon Cobra Agreement. Dr. Wack seconded the motion and it passed unanimously. REPORT FROM THE MAYOR: Mayor Utz reported that he and Ms. Wolf attended the Carroll County Chapter Maryland Municipal League Dinner hosted by the Town of Sykesville on Thursday, September 20, 2012. REPORT FROM THE STANDING COMMITTEES: Dr. Wack reported that he created a report card for the Finance Committee with a checklist of GFOA practices that municipalities can perform in terms finance management. Dr. Wack began with maintaining reserves, explaining that in 2003 the City of Westminster had no dedicated reserve accounts. Dr. Wack shared that, today, the City has a healthy reserve in the General Fund. He suggested a goal of having monthly financial reports in the future, but realizes the challenge that the City has had in the past when trying to implement this process as the accounts do not close fast enough to generate a meaningful and timely balance. As far as monitoring expenses, the City does a much better job today. Dr. Wack explained that contingency plans were created for possible surprises such as changes in intergovernmental transfers and weather-related events. The City has large reserves now. Dr. Wack gave the City a +/- because if the City were to lose a project or an agreement, there would be enough to cover the lost revenue. He commented that today the City does a much better job at monitoring the expenditures. The City now has a pay–as-you-go expenditure policy. Dr. Wack gave avoiding using one-time only revenues for operating expenses a plus. Dr. Wack then shared that while the City has a debt policy, it does not contain the level of detail that he would like to see. The City has won GFOA budget awards. Dr. Wack commented that Mr. Ehlers and Ms. Wolf and the department heads deserve a lot of credit for the work that they have done to get the City’s finances in order, but could still could do some things that would improve them even more. Ms. Wolf explained that these checklist items are factors that a bond company looks at when deciding if they will allow a municipality to borrow, how much they will allow you to borrow, and at what rate. Dr. Wack explained that in the last meeting, questions were raised at where the City’s current debt level is, and if we did the borrowing as discussed, where that would put the City’s debt level. Dr. Wack suggested using Interest payments as a percentage of the operating funds in general funds. He commented that he does not think it is appropriate to look at the total debt of the City because the water/sewer department takes on a large amount of debt for their projects but have a separate revenue stream. He explained that these are enterprise funds and that they should be looked at separately. Dr. Wack shared that 15% is considered way too high, but 5% is considered excellent for a debt ratio. As of today, the City is around 3%. If the City used up to 5%, we would still have capacity for additional borrowing in general fund if needed. If we borrowed the full $2 million, this action would bump up to approximately 5.6% according to President Halstad. Dr. Wack suggested having a conversation as a group to pin down where the City would want to be with the Bonds. He explained that debt is one of the tools that the City has for managing finances. He commented that, should the City decide to have a conservative debt policy and borrow at the lowest possible limit, there are consequences. Specifically, the City will need to maintain a higher level of current cash flows and maintain larger reserves to fund these capital projects. Dr. Wack explained that another way of measuring debt would be debt to total City budget. He does not feel this would be as accurate on showing the stress the debt is putting on the City. President Halstad commented that, when looking at the “report card”, the City has come a long way in 10 years. He suggested that the Council and staff take a look at the capital projects that are most in need of funding and propose a schedule to move forward based on the availability of funds at lower rates. Mr. Chiavacci agreed with Dr. Wack that water and sewer should be separated when looking at the debt ratio and should operate independently. Mr. Chiavacci questioned Dr. Wack as to when he would want to start working on the debt policy. Dr. Wack replied that he is fine with beginning now. Mr. Chiavacci suggested working on the debt policy before discussing the financing of capital projects. He feels like the City is not in any rush to make that decision. Mayor Utz explained that the reason this was brought to the Council’s attention was because there has been deterioration of certain structures, infrastructure, and projects that of importance to the City. While these projects are in the CIP budget, they will be constructed in a piece meal fashion over several years. He shared that the staff and Mr. Ehlers had decided to present the Council with this option to complete the projects in a more timely manner. He commented that the Council will need to make a quick decision on the CIP projects if they are to be considered during the next bond offering. Dr. Wack commented that there are three questions to answer: which projects are the most pressing and needs to be done now; how should they be paid for; and, how accurate are the cost projections. Ms. Wolf questioned if Council was agreeable on moving forward with the $1.5 million refinancing. Mr. Chiavacci and Dr. Wack replied that the Council agreed that the City should move forward with the refinancing. Mr. Chiavacci referred back to Mayor Utz’s comment regarding the projects that need to be financed. He explained that he feels taxes were raised to fund these projects, and as far as he is aware, nothing has changed. Mayor Utz explained that some projects had evolved, including the addition of solar panels and geothermal technology. Mr. Chiavacci explained that he feels the CIP projects are critical, but the City has already funded them. He commented that if the City is going to borrow money, he would rather borrow money on something that will be a revenue generator that benefits downtown. He explained that one example is the parking garage. This added parking for those who are visiting downtown. He explained there is no more property within the City to build more revenue, but suggested building more businesses and increasing revenues at the Airpark. Dr. Wack thanked Ms. McNulty for her hard work in creating beauty for the community. He was happy to see her being honored at McDaniel College for the Rose Garden. He shared that this garden was an example of her hard work. BIDS: Mr. Glass explained that street sweepers are in need of replacement to be utilized at the Street Department for collection of trash and various roadway debris to prevent from entering into the storm drain system and from the receiving waters. This is essential part of the City’s compliance with newly enacted storm water quality regulations. The units are of different size and configuration to accommodate the various work areas and needs of the City. Unfortunately, there is no single manufacturer that accommodates these needs in both units, requiring purchase form separate manufacturers. Mr. Glass shared that the quotes ranged from $138,981.41 to $180,320.00. The quoted amounts of equipment through Tennant and Maryland Industrial Trucks, Inc. and has been quite satisfied with responsiveness and service provided by both. Mr. Glass recommended that the Mayor and Common Council accept Tennant’s proposal in the amount of $165,235.03 and Maryland Industrial Trucks Inc. proposal in the total amount of $138,981.41 for replacement of both existing sweeper units. Mr. Chiavacci questioned if the City needed to replace both at once. Mr. Glass replied that both need to be replaced, the small sweeper unit’s motor was replaced approximately three years ago. Mr. Chiavacci questioned what will happen to the sweepers that the City currently has and what is their current value. Mr. Glass explained that they cannot be traded in. Mr. Glass believes we could get $20,000 for both of the sweepers in total, but the sweepers will be sold, they will not be junked. Mr. Frazier questioned if City staff would look into other technology like a filtration system, instead of purchasing new street sweepers. He explained that this would require no man-hours, the water would run into the filters, taking out the oil and grease and other things that are running into the water that is not being touched at all. Mr. Glass explained that this will be the next phase of our storm water management. He added that there must be a filtration system at every discharge point. He explained that there will continue to be a need for street sweeping despite other storm water management efforts. Upon motion of Mr. Chiavacci, seconded by Dr. Wack, the Council unanimously approved the purchase of the street sweepers. UNFINISHED BUSINESS: Ms. Wolf shared that she had received information that the City would be able to have a variety of different terms on the loans for each project. She explained that the City can have one term on the loan for the refinancing and a different term on the loan for each one of the projects. Mr. Glass explained that Ms. Wolf had advised him of the suggestion to lease the solar panels at the last meeting. Due to the size of the City’s system, he is unsure if leasing the solar panels can be done. It appears that it seems that it is more of a residential size system, but will receive more information regarding this for the next meeting. Mr. Frazier explained that when he attended a conference he spoke to someone about the Solar panels. They have done other cities and will do leasing depending on what the City’s preferences are. Mr. Glass explained that during a conversation with Ms. Wolf and Mr. Ehlers regarding the Power Purchase Agreement, Mr. Ehlers was concerned if the City could do the leasing from the general fund. Mr. Glass referred to Mr. Ehlers’s list of projects for the Capital Improvement Plan. Mr. Glass began with City Hall Building Renovations, explaining that $100,000 was set aside in the budget for the interior windows. He explained that the City would like to do the City Hall windows and the Armory windows as one project. $38,000 for next year’s budget is for the exterior painting and the $50,000 is for interior work at City Hall. Next is the Salt door replacement. Mr. Glass explained that the salt eats away at the door, requiring frequent replacing, which is $82,000. $50,000 is budgeted for this year for the Street Facility building repairs. Mr. Glass explained the Armory Seal Replacement will be $65,000. The Armory windows will cost $175,000. The geothermal is not stated to be done until 2018. The total for the Armory is $665,000. Mr. Glass explained that the City had slated $25,000 for the exterior of the Armory beginning in 2013. As mentioned at the last meeting, the Carroll Arts Theatre façade needs to be repaired. The cost of the solar panels is $207,000 with a seven year payback. Mr. Glass explained that the water intrusion will be more difficult to fix. He shared that one of the options is to dig a trench from the outside. Mr. Glass replied we have sealed cracked surfaces along the building and it has helped, but it is not taking care of the problem. He shared to waterproofing the basement this will cost $20,000. Mr. Frazier questioned the need for the geothermal for the Armory; if it was due to needing a new heating system. Mr. Glass explained that the heating system is fine. The geothermal was his idea, another way for the future. Mr. Glass explained that these projects are to keep things from falling apart. He shared that the City has a game plan to do these projects all at one time. Mr. Chiavacci suggested moving forward on the refinancing the bond in the amount of $1.5 million to take advantage of the better rate. He questioned about needing to put into motion to approve the refinancing of the bond. President Halstad questioned needing to know if other funds will be needed. Ms. Wolf replied that she will need to know so that she can share this information with Charlie Day. Mr. Chiavacci questioned if Council will have a discussion during this meeting if going to move forward with the remaining balance of the projects. President Halstad commented that Council has until December; he would rather push it back for at least one more meeting. Dr. Wack suggested discussing some of the debt policies first, which can be done at the next meeting. He and Ms. Wolf can do some preparation in gathering statistics about where the City is in terms of debt ratio. Dr. Wack and Ms. Wolf will also discuss the current reserve situation for the capital side. Mr. Frazier suggested that before making a final decision, he would like to have an expert come in to talk to Council to answer questions such as how much will it save us, what is the cost, and what is purchase versus leasing. Mr. Chiavacci agreed with Mr. Frazier that he does not want the City to spend the money on the solar panels and the geothermal and then down the road realize that it was not money well spent. Dr. Wack complimented Mr. Glass in his impeccable decision making with steering the City towards technical solutions and estimations in costs and benefits of these systems. Mr. Glass suggested that he could have someone do a detailed design for the solar panels to present to the Council. Mr. Chiavacci agreed with Mr. Glass that is what they need. President Halstad even if it checks it out is it something we want to borrow money to do. Mr. Chiavacci questioned or if it is something would want to borrow money in lue of other things such as for other improvements. He explained that there will be threshold for borrowing money. President Halstad explained would need to assess the merits of the project when it comes time to do the projects. Dr. Wack explained have sufficient in reserve. The City has the options to borrow or pay in cash. Mr. Chiavacci suggested need to put a debt policy in place first, and then decide on borrowing for the projects. He explained that the City could move forward with money that has already been budgeted for CIP items and if have some leftover then have another conversation that is in conjunction with putting the policy into place. Dr. Wack explained that some of the projects are currently funded and some of it is forward funding for a year or two because it is a small amount of money. Mayor Utz questioned Ms. Levan if a Resolution is needed to move forward with the refinancing of the $1.5 million. Ms. Levan replied that a formal Resolution is needed. Mr. Chiavacci moved forward with a motion of the refinance of the $1.5 million for the balance of the 2002 Series A Bond to obtain a lower interest rate. Mr. Frazier seconded this motion. However, Ms. Levan explained that the City had already passed a Resolution for the bond offering. Mr. Chiavacci withdrew his motion and Dr. Wack withdrew his second. NEW BUSINESS: Mr. Horn reported that DRS Associates is constructing a new, one-story residential home at 52 Winters Street, adjacent to 18th Street (High Alley). He explained that Dan Staley, the owner of the property, is calling it the ‘bird house’ because of its appearance. Mr. Horn explained that Mr. Staley has been in touch with the owners of Winters Street and Carroll Street and would like to see the alleyway redeveloped. Mr. Horn shared that perhaps a new zoning district would be appropriate. The site development plan was reviewed by the City’s Planning and Zoning Commission, and approved by the City, on March 8, 2012. The acceptance of the referenced PWA by the Mayor and Common Council provides the necessary assurances and protections that DRS Associates will construct the project in accordance with the conditions in the approved development plan. President Halstad inquired, and Mr. Horn confirmed, that the development plan had been reviewed by the City’s Planning and Zoning Commission. Upon motion of Mr. Frazier, seconded by Dr. Wack, the Council unanimously approved the Winters Place 2 Public Works Agreement A-1079. Dr. Wack motioned, pursuant to Section 10-508-A-1 of the State Government Article of the Annotated Code of Maryland, to conduct an executive session at the conclusion of the current meeting. Mr. Chiavacci seconded, and the motion passed unanimously. DEPARTMENT REPORTS: Mr. Cumberland shared that the Fire Academy in Emmitsburg, Maryland had done a geothermal project and offered to get more information on this if the Mayor and Common Council would be interested. Chief Spaulding reported that he and Mr. Horn are continuing to work on a solution for South Colonial Avenue. He noted that they will be meeting with the engineer to review traffic patterns at the site. He also reported that he will be participating in the Cops on Rooftops event at Dunkin’ Donuts on September 29th and 30th to raise money in support of the athletes of the Special Olympics of Maryland. He encouraged everyone to come out to show their support. CITIZEN’S COMMENTS: Ms. Lori Graham of 118 Pennsylvania Avenue reported that Fallfest is September 27th through September 30th and encourages everyone to come out and support the event. She also explained that there is a giveaway on wristbands on WTTR’s Facebook page. Ms. Graham shared that Midnight Madness will be on September 28th. She reminded the Mayor and Common Council and the staff that “Three Sheets and the Wind” will be playing on Thursday, October 4th at 6:30 p.m. Ms. Graham requested that the efforts of the Fallfest Committee be recognized on the City’s web site. She also reported the Holiday parade is November 24th and that she has received 20 calls for applications which will be available on the City’s website. Rebecca Orenstein, of 64 Pennsylvania Avenue thanked Officer Obst and Sergeant Valentine for being great law enforcement officers. She shared that the neighborhood is proud of Lori Graham and her hard work. She thanked Street department for putting up the flag on her street. Ms. Orenstein commented that there were not very many people who attended the Tri-Street block party including the Council. She explained that there is a lot of hard work put into this event and not a lot of money was raised. She inquired about receiving money from Fallfest towards this event. Ms. Orenstein reported that this is the 150th anniversary of the Corbit’s Charge. She explained that the reenactment has been moved to Union Mills and she would like for this to stay in the City of Westminster. She shared that she wrote a play and would like to have it reenacted during the celebration. ADJOURN: President Halstad adjourned the meeting at 8:52PM. Respectfully Submitted, Shannon Visocsky