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Town Council of Centreville October 18, 2018 7:00 p.m. M I N U T E S The October 18, 2018 Town Council meeting was called to order at 7:00 p.m. by President Jim A. Beauchamp at the Liberty Building, 107 N. Liberty Street, 2 nd floor meeting room. The following members and staff were present: Jim A. Beauchamp, President; Jeffrey C. Morgan, Vice President; Timothy E. McCluskey, Member; Steve Walls, Town Manager; Kenny Rhodes, Chief of Police; Krystel Ebaugh, Human Resources Manager; Carol D Agostino, Main Street Manager; Kip Matthews, Director of Public Works; Karen Luffman, Finance Officer; Ashley Russ, Finance Specialist; and Carolyn Brinkley, Town Clerk. Following the Pledge of Allegiance and a moment of silence, by consensus, the Town Council tabled the October 4, 2018 minutes to be reviewed and considered at the November 1, 2018 meeting. Closed Session (i) The Town Council met in closed session on Thursday, October 18, 2018 at 6:01 p.m., at the Liberty Building, 107 N. Liberty Street to consult with counsel and discuss land acquisition in accordance with the Maryland Open Meetings Act. (ii) Mr. Beauchamp and Mr. McCluskey voted to close the session. Mr. Morgan was not present for the beginning of the meeting by advice of counsel due to a possible conflict of interest. (iii) The authority to close the session is found in Section 3-305 of the General Provisions Article. (iv) The Town Council discussed the following topics: Consult with Counsel discussed two (2) agreements and the potential disposition of land Land acquisition discussed potential acquisition of land Actions: The Council authorized the Town Manager to enter into a contract for a parcel of land. The following members and staff were present: Jim A. Beauchamp, President; Jeffrey C. Morgan, Vice President was present for a portion of the meeting by advice of counsel; Timothy E. McCluskey, Member; Steve Walls, Town Manager; Kenny Rhodes, Chief of Police; and Sharon VanEmburgh, Town Attorney via telephone. The meeting adjourned at 6:51 p.m. Citizens Forum Linda Palmatary, Hope Road and Martha Anthony, White Marsh Road, offered comments. Appearances a. Carol D Agostino Centreville Day and Drink Maryland Update Ms. D Agostino reported that Centreville Day is scheduled for Saturday, October 27 th along with the Two Rivers Bike Ride and the Cornerstone Ceremony at the new Circuit Courthouse. This year s Centreville Day will feature a Kendama demonstration, a cupcake contest was added in addition to the yearly cookie contest and there is a Snapchat filter that was developed specifically for Centreville Day. Three new sponsors were added this year: Queenstown Bank, Chesapeake Charities, and Tri Gas & Oil. By consensus, the Town Council agreed to Saturday, June 19, 2019 for the next DrinkMaryland: A Maryland Makers Event. Public Hearing: Ordinance 06-2018 Micro Distilleries The public hearing for Ordinance 06-2018 for the purpose of amending the Town s Zoning Ordinance codified as Chapter 170 of the Town Code to allow by right micro distilleries in the Central Business District (CBD) and to define micro distilleries and enforce the Town s Zoning Ordinance more effectively was called to order at 7:13 p.m. 2018-10-18-TC Approved Minutes.doc Page 1 of 6

Mr. McCluskey provided background on Ordinance 06-2018 stating that the owners of Bull & Goat Brewery came to the Town interested in expanding their current brewery to distilling. He stated that this would require federal, state, and county approvals as well as be allowed within their zoning by the Town s Zoning Ordinance. Mr. McCluskey reported that the Planning Commission has reviewed Ordinance 06-2018 and forwarded a favorable recommendation to the Town Council. Ms. Brinkley verified that the notice of hearing was publicized in the Record Observer, a newspaper circulated in Queen Anne s County. There being no legal matters relating to the jurisdiction of the Town Council of Centreville nor any objections in regards to the Notice of Public Hearing, Mr. Beauchamp asked for comments from anyone in favor of proposed Ordinance 06-2018. Jason Guest and Jake Heimbuch spoke in favor of Ordinance 06-2018. Mr. Beauchamp asked for comments from anyone opposed to Ordinance 06-2018. No one spoke in opposition of Ordinance 06-2018. Mr. McCluskey made a motion to adjourn the October 18, 2018 Public Hearing for Ordinance 06-2018 Micro Distilleries. Mr. Morgan seconded the motion, which passed unanimously. The meeting adjourned at 7:23 p.m. Old Business a. Perpetual Care Funds Mr. Walls presented the following memo: Mr. Beauchamp requested staff research how much of the perpetual care fund is corpus and how much are earnings. Mr. McCluskey requested that staff request quotes for other items that need to be completed at the cemetery such as: fixing the roof of the caretakers building, repairing broken stones, as well as paving the lanes. Mr. Morgan suggested conducting an analysis of the perpetual care fund to determine interest and principal. Members of the Chesterfield Cemetery Advisory Committee were available and stated they would assist Town staff with developing a long-term budget for the cemetery as well as a capital improvement plan. b. Cable Franchise Agreement Mr. Morgan asked that staff ensure the expiration date of the Town s agreement is close to the expiration date of Queen Anne s County. Ms. Ebaugh reported that the expiration date has been set for June 30, 2020 which is six months following the expiration of Queen Anne s County s agreement. Mr. McCluskey made a motion to approve the cable franchise agreement as presented and send to Atlantic Broadband for consideration. Mr. Morgan seconded the motion, which passed unanimously. c. Ordinance 01-2018 Signs Discussion Ordinance 01-2018 discussion regarding signs was tabled until the November 1 st Town Council meeting. 2018-10-18-TC Approved Minutes.doc Page 2 of 6

d. Ordinance 06-2018 Micro Distillery Consideration Mr. Beauchamp read Ordinance 06-2018 for the purpose of amending the Town s Zoning Ordinance codified as Chapter 170 of the Town Code to allow by right micro distilleries in the Central Business District (CBD) and to define micro distilleries and enforce the Town s Zoning Ordinance more effectively. The Town Council held a public hearing earlier in the meeting and only favorable comments were received. Mr. McCluskey made a motion to approve Ordinance 06-2018 for the purpose of amending the Town s Zoning Ordinance codified as Chapter 170 of the Town Code to allow by right micro distilleries in the Central Business District (CBD) and to define micro distilleries and enforce the Town s Zoning Ordinance more effectively. Mr. Morgan seconded the motion, which passed unanimously. e. Centreville Wharf Playground Purchase Ms. Brinkley presented the following memo to the Town Council: After some discussion, Mr. McCluskey made a motion to approve the purchase of the Centreville Wharf Playground for a total of $205,023.07 and allowing the use of funds in the amount of $6,600 from the Parks and Playgrounds (D10) budget. Mr. Morgan seconded the motion, which passed unanimously. f. Liberty Street / Commerce Street Update Mr. Walls reported that the Liberty and Commerce Street construction project is ahead of schedule and the anticipated time frame for the switch-over of traffic is scheduled for October 24 th at 9:00 p.m. Mr. Walls stated that there have been unanticipated costs such as: contaminated soils, Weedon Street intersection sewer main; and over $1 million in concrete removal, crusher run, and asphalt paving. Mr. Walls reported that in order to complete the project, he is requesting the Council s approval to go to the bond market to borrow an additional $2.5 million. Mr. McCluskey made a motion to apply for bond financing in the amount of $2.5 million. 2018-10-18-TC Approved Minutes.doc Page 3 of 6

New Business Mr. Morgan indicated he would like to look at all the numbers before deciding to move forward with the project as well as send a letter to the Governor and State representatives to discuss other issues related to this project. Mr. Beauchamp stated he was not comfortable moving forward with another bond issuance until additional information has been gathered regarding interest rates, interim financing, and draw schedules. Mr. McCluskey stated that the Council should not consider delaying or stopping the completion of this project and costs will only increase the longer the Council waits. Mr. Matthews stated that the construction project will need to at least complete either end of Commerce Street in order to tie in with the new bridge project. He asked the Council to allow the contractor enough time to complete the required work on the south end of Commerce Street which would give the Town Council additional time to consider how they would like to proceed. The Town Council agreed. After some discussion, Ms. Luffman will talk to Charlie Day with the Department of Housing Community Development regarding the bond issuance and will call commercial lenders to discuss a possible interim bridge loan. She will develop a schedule to include an estimated interest rate, cash flow schedule, and interim financing. Mr. Beauchamp seconded the motion to apply for bond financing in the amount of $2.5 million. The motion passed unanimously. a. FY19 Budget Update 1 st Quarter Ms. Luffman gave a financial status update on the first quarter of the FY19 budget and presented the following information to the Town Council: General Fund Revenue 1-000-4110-0000-Real Property revenue received $1,471,918.95 (as of Mid-October). The payments are sporadic throughout the year but the two biggest payments usually come in October and January. 1-000-4120-0000-Public Utility Tax-State sent certificate for DPL and invoice was sent out for $107k on October 2. Securus and Verizon certificates haven t come in from the state. 1-000-4200-0000-Local Income Tax-payments are sporadic throughout the year, mostly monthly with an exception here and there of every two months. 1-000-5990-0000-Development Fees-Willows Park and Rec fee ($33,323.91) is here along with Providence Farm Lot 67($2,500). 1-C11-4621-0000-HUR-Grant posted in September which is the biggest portion of HUR. Smaller deposits are normally received every other month. General Fund Expenses 1-A10-7310-0000-Legislative Dues and Subscriptions-Once a year MML dues. 1-A81-6212-105N-105N Liberty Property taxes. Reassessed every 3 years, which raised taxes a minimal amount after budget completed. 1-A81-8620-105N-105N Liberty (annual) mortgage payment, covered by QAC Parking PWA annual payment (FY19 received $50,961). 1-A92-7120-0000-Workmans Comp-50% spent because first payment is large down payment with 9 monthly installments preceding. Will be the same for C11, C21, and C24. 1-A92-7130-0000-Health Insurance-29% spent because October s payment was due in September. There have been 4 payments made this fiscal year. Will be the same for C11, &-C21, and C24. 1-A92-7130-0000-Life Insurance-29% spent because October s payment was due in September. There have been 4 payments made this fiscal year. Will be the same for C11, C21, and C24. 1-A92-8750-0000-Liability Insurance-Insurance paid once per year. Budget is an estimate as true numbers don t come in until budget is complete and approved. 1-B10-6510-0000-Crime Prevention-Budget is for National night out. No more expenses to hit this account. 2018-10-18-TC Approved Minutes.doc Page 4 of 6

1-C11-7440-0000-Contract Services-Tree removal expense from Liberty Street was unexpected expense when we were in budget deliberations. 1-D10-6212-WHAR-Wharf Property Taxes-88% spent because only one payment made per year and bill has now been paid. 1-D10-8110-WHAR-Repairs and Maintenance-Overspent because new A/C required for Wharf building that wasn t in the budget. 1-H90-7440-0000-Unanticipated expenses in budget. Mike Whitehill s contract services now fill this position and includes work on storm drain projects. Possible budget amendment mid-year for this account. Enterprise Fund Revenue 7-C21-5410-0000-Sewer-First quarter bills were mailed out the end of September so first payments didn t come in until 2 nd quarter ($240,561.04 received to date). Normal higher usage in first quarter accounted for in 1 st bill. 7-C24-5440-0000-Water-First quarter bills were mailed out the end of September so first payments didn t come in until 2 nd quarter ($217,225.64 received to date). Normal higher usage in first quarter accounted for in 1 st bill. 7-C24-5451-0000-Meter Equipment-Water Meter equipment for the Willows accounts for the big jump. 7-C26-5120-0000-Sewer Allocation Fees-Willows allocations accounts for most of this. 7-C27-5121-0000-Water Allocation Fees-Willows allocations accounts for most of this. Enterprise Fund Expense 7-C21-7150-0000-Uniforms/Clothing-62% spent for purchase of new public works uniforms. 7-C21-7310-0000-Membership dues-50% spent, once per year dues. 7-C21-7740-CC00-Computer Supplies and Maintenance-83% spent for purchase of approved computers which have been ordered and paid for. 7-C21-8750-0000-Insurance Liability & Umbrella- Insurance paid once per year. Budget is an estimate as true numbers don t come in until budget is complete and approved. 7-C24-6210-0000-Operating Supplies-Overspent because of purchase of Meter Pits for new hookups. These are billed for water hookups and revenue received shows on a different page. 7-C24-7150-0000-Uniforms/Clothing-Overspent for purchase of new public works uniforms. Kip checking notes as to why budget line was cut in half. 7-C24-7310-0000-Dues and Subscriptions-79% spent 7-C24-7740-CC00- Computer Supplies and Maintenance-83% spent for purchase of approved computers which have been ordered and paid for. 7-C24-8750-0000-Liability Insurance- Insurance paid once per year. Budget is an estimate as true numbers don t come in until budget is complete and approved. 7-C25-8110-0000-Equipment Repair & Maintenance-74% spent for unexpected Pivot repair, spray-field, and CP10 repair. Capital Projects 1-B10-9890-0000-2 New Police Vehicles Plus Equipment-Ordered but payment won t be made until cars are received. 1-C11-9890-0000-F250 Pickup and snow plow-no money spent. Truck has been ordered since purchase was approved. 1-C11-9820-0000-Shop building repairs-no money spent. 1-C11-9860-0000-Washout Station-No money spent. 1-H60-9901-0000-Columbarium $87% spent for down payment, remaining to be paid upon completion. Will only spend $41,000. (Columbarium is ordered and foundation is in place awaiting delivery). 7-C21-9860-0000-Electric Eel Sewer Line Snake-No money spent. 7-C24-9860-0000-Cross Connection Control Program & Northbrook Filters-No money spent. 7-C25-9850-0000-Replace small shed-money spent was for large shed from FY18 budget. 2018-10-18-TC Approved Minutes.doc Page 5 of 6

Side Notes Allocation Entries have been done for the first quarter. Audit Fees are higher than budgeted, for the work the accountant has done to help with the system. Interest expense on Fund 7 is 50% spent as there are only 2 interest payments per year on debt service. Reports of Department Heads a. Town Manager Mr. Walls stated that the Town is working with two temporary agencies to provide help for the Department of Public Works. Three temporary employees have been hired at this point. Mr. Walls stated staff continues to do code enforcement for various items. Mr. McCluskey asked if anything could be done to repair the driveway into Millstream Park. Mr. Walls stated that staff would look in to it. b. Chief of Police Chief Rhodes presented the September 2018 status report for staff, Council, and the public. Chief Rhodes stated that he would be out of the office the week of October 21 st and Lt. Meil would be in charge followed by Sgt. Hobbs and Sgt. Larrimore. The new vehicles are expected to be delivered by October 29 th. Extra officers will be available during trick or treating on October 31 st. The QACHS Homecoming Parade will take place on Friday, October 26 th and the route will be from Kennard Elementary School to the high school. Citizens Forum No citizens commented. Council Roundtable Mr. Beauchamp discussed the flow data he analyzed for the Department of Public Works. Motion to Adjourn There being no further business, Mr. Morgan made a motion to adjourn the October 18, 2018 Town Council meeting. Mr. McCluskey seconded the motion, which passed unanimously. The meeting adjourned at 9:02 p.m. Respectfully submitted, Carolyn M. Brinkley Town Clerk Council Action Items: 1. Tabled the October 4, 2018 Town Council meeting minutes. 2. Approved June 19, 2019 as the next DrinkMaryland event date. 3. Approved the cable franchise agreement as presented and send to Atlantic Broadband for consideration. 4. Approved Ordinance 06-2018 for the purpose of amending the Town s Zoning Ordinance codified as Chapter 170 of the Town Code to allow by right micro distilleries in the Central Business District (CBD) and to define micro distilleries and enforce the Town s Zoning Ordinance more effectively. 5. Approved the purchase of the Centreville Wharf Playground for a total of $205,023.07 and allowing the use of funds in the amount of $6,600 from the Parks and Playgrounds (D10) budget. 6. Approved applying for bond financing in the amount of $2.5 million. 2018-10-18-TC Approved Minutes.doc Page 6 of 6