Mayor Margo G. Bailey called the meeting to order at 7:30 p.m. In attendance were Councilmembers Harrison C. Bristoll, Jr., Thomas A. Gross, Sr. and George M. Davis, III, Medford Capel, Utilities Commission Manager, W. S. Ingersoll, Town Manager, Joan Merryman, Stenographer, and guests.

Mayor Bailey asked if there were any additions or corrections to the minutes of the previous meeting. Mr. Davis moved that the minutes of the meeting of December 16, 1997 be accepted as presented, was seconded by Mr. Bristoll and carried unanimously.

Mayor Bailey announced that the Utilities Commission has cash on hand an in banks on January 21, 1997 of $320,970.12. Mrs. Mumford-Pautz arrived at the meeting at 7:35 p.m.

Mayor Bailey called on Mr. Capel for his report. Mr. Capel said the lagoons are in excellent shape as there are fish in them. He said he sees people at Radcliffe bridge taking water samples and he would state that if there was anything wrong it was not anything done by the Town Utilities Commission. He said we do not empty there, our discharge goes to the middle of the river. He said all of our test results are excellent.

Mr. Capel said there have been water line breaks due to the cold weather and we are repairing them as they occur.

Mr. Capel reported that on February 4, 1997 Maryland Rural Waterworks will hold an educational seminar in Rock Hall. He said four people from his department will attend and will get credits for continuing education for their certifications.

Mayor Bailey said Commissioner Ron Fithian had requested an opportunity to speak. Mr. Fithian said he wanted to discuss the County's water and sewer request for the Wartsila project on Morgnec Road. He said the County Commissioners have looked at the project for a long time and feel the overall plan was a win situation for everyone. He stated reasons for their decision to pursue the Wartsila Building project. He said there was a possibility that the 400 High Street will be done and also a possibility that the Planning office may be relocated to that site.

Mr. Fithian said he understood that the County would be denied the water and sewer extension to the Wartsila building on the opinion of the Town attorney. He said he also understood that the Town would be making a change to the Charter which would mean that no water or sewer services would be allowed outside of the Town limits. He said that the services have already been extended out Rt. 291 to State Highway, Delmarva Power and others and wondered why it couldn't be taken to a site 100 feet away. He said he felt that action by the Town to deny out-ot-town services may be more troublesome for the Town in the future because it would affect economic development. If the County does not go forward with their plans for the Wartsila building, then that building's worth become devalued for any sort of economic development because of the inability to get water and sewer. He said the Governor's initiative was to stop sprawl and concentrate growth around the municipalities because that was where services are located and the State has offered to help funds such projects. He said the County has to make some changes because they need more office space and if they do not do the Wartsila building, they have to make other arrangements. In discussing economic development, he said Kent County loses business because we do not have natural gas and you can't tell a business to come to Kent County if they cannot have access to water and sewer. Mr. Fithian said if there are legal problems with the Town extending water and sewer beyond its limits, then the Town must already have the problems because the service was out there on Rt. 291 and he did not understand how one more property, especially a government one would cause a problem.

Mrs. Mumford-Pautz asked how the Wartsila project would be financed if it was not to cost the taxpayers anything. Mr. Fithian explained that highway user funds would be used for the facility to house County Roads, the sale of the public works building to Washington College, the contract on 400 High Street, and the sale of the Cannon Street yard. Mrs. Mumford-Pautz suggested consideration of other properties and buildings that the County already owns and discussed the rents being paid by the County for space for the Health Department. Mr. Fithian said that the projects being discussed would not affect the Health Department at all as there would not be room for them at 400 High Street.

Mr. Davis said he did not feel the Town should be running the County's business but that they should stay on the issue. He said Mr. Fithian mentioned a legal opinion and he did not have such a legal opinion. Mayor Bailey said she had not had an opportunity to speak.

Mr. Gross said his main concern was the removal of the Planning Office and the traffic that goes with that department leaving downtown Chestertown. He said he would also like to see the 400 High Street project get off the ground and he would like the County to study the use of their Worton property for departments such as roads.

Mrs. Mumford-Pautz said that as an incorporated Town, we expect those who want Town services to be annexed into the Town and there was a correct procedure for annexation. Mr. Fithian said there would be no argument about annexation from the County, but there are properties in between the Town limits and their proposed project.

Mr. Bristoll said there are two issues (1) the County's request for extension of water and sewer to the Wartsila property and (2) the charter change that would not allow Town water and sewer services outside of Town. He said there was no reason why any business who would locate in Kent County and who would come to the Town for annexation and go through the proper process would not get water and sewer service. He said limiting the services to within the Town does not mean that we are closing the doors to annexation. The Wartsila project and the concept of growth were two different things. Mr. Fithian said he mentions the Wartsila property specifically because the County Economic Development office was trying to market that property and if the County does not buy it and do their project, then any prospective purchaser would be faced with the same problem. Mr. Bristoll said generally there would be no effort on the part of the Town to limit annexation. Mayor Bailey said Mr. Ingersoll had explained the annexation procedure at the Commissioner's meeting that morning. Mr. Fithian said he apologized if there was a procedure the County should have gone about and did not.

Mr. Bristoll said the Town's concern about limiting water and sewer services to out-of-town properties was that if the Town does that, it was possible that the State would determine that we are running a public utility which would mean they would have control over our operations. He said we were a Town owned operation providing water and sewer to the Town and not a public utility. He said that was the reason for the Charter change and he was speaking generally about two different issues. Mayor Bailey said many towns throughout the State have made the mistake of selling water and sewer outside the Town limits and they have lost control of their utilities. She said Chestertown has not done that as a policy for a long time. The MML has put towns on the alert not to do this as the issue was being tried in cases around the State. Town citizens and town government were paying for the services and infrastructure and it was not the Town's job to provide those services to Kent County, that was the responsibility of the Kent County Sanitary District. She said if they want Town services, they should apply for annexation.

Mr. Davis said he disagreed that the case of a government entity would be the same as with a private entity. He said he felt that this Council was going to vote this down because of the Wal-Mart and that they were using the legal opinion to hide behind. He said it was a short-sighted policy for the Town and felt the County and Town should work together and it was poor business not to do so. He said he was in favor of granting the request.

Mayor Bailey said she hoped the County would take all issues separately and not use a decision in one case to cloud the judgment on another issue. Mr. Gross asked about the legal opinion. Mayor Bailey said she called Mr. Bowman and asked whether a separate opinion was needed regarding the matter of water and sewer going out to the Wartsila property. She said Mr. Bowman told her she did not need a separate opinion, that his prior opinion regarding the Sommers property was exactly the same opinion. Mr. Davis said in making his opinion on the Sommers' property, that Mr. Bowman thought Sommers' property was out of Town. Mayor Bailey said Mr. Bowman knew the property was in Town and had a mistake in the wording and he had sent a correction. Mr. Davis said he did not have the correction. He said if the first letter was wrong, what was there to think he was right this time. He said Mr. Bowman had been wrong a fair amount recently, and he disagreed with him.

Mr. Bristoll said he would like Mr. Bowman to further research the question of whether the Town allowing the services to the County government as opposed to providing services to a private entity would have any affect on the liability the Town might incur in regard to being considered a public utility. Mayor Bailey said Mr. Bowman was aware that the request was for the County government.

Carter Stanton said that Mr. Gross's comment to move county roads out to Worton would take 25 or more employees out of Town and he did not see the difference between going there and going out Rt. 291. Mr. Gross said his concern was the removal of the Planning office out of town and he would like a stipulation that Planning and Zoning stay in Town. He agreed that the truck traffic and storage could be out of Town and rarely was the road crew in Town during the day for things like shopping and lunches. Mr. Fithian said it was too early to discuss details, but there was a possibility that the Planning office might remain in Town if the 400 High Street project works out right. Mr. Gross asked how much tax revenue was received on the Wartsila building and said that would be lost to the County. Mr. Fithian said he did not know at that time but he thought it would be an even exchange if 400 High Street went back on the tax rolls.

Mr. Davis said he also felt we needed a further legal opinion on the matter of the government entity requesting the services. Mr. Davis moved that the Town grant the Kent County Commissioners their request for Town water and sewer to the Wartsila building on Rt. 291. Mr. Bristoll said he would second the motion to allow discussion. Mr. Davis said he was favor of this as he had stated before. Mr. Bristoll said he would like to have the further legal opinion from Mr. Bowman on the issue of dealing with a government agency. Mr. Gross said he would like to have an opinion on this from Mr. Bowman. Mayor Bailey said Mr. Bowman's opinion was that it was the same as for the Sommers' property. Mr. Davis said that once before the Council voted on a matter for the Historic District Commission when they did not have a written opinion and the message conveyed to the Council was the opposite of what Mr. Bowman had said. Mayor Bailey asked for the vote on the motion. Mr. Davis voted aye, Mr. Bristoll, Mr. Gross and Mrs. Mumford-Pautz abstained. The motion failed. Mayor Bailey asked Mr. Ingersoll whether the motion would carry with one vote. Mr. Ingersoll said that three votes are needed to pass any motion according to the Town Charter.

Mr. Bristoll and Mr. Davis both asked for a legal opinion from Mr. Bowman on this issue.

Mr. Capel asked whether it made any difference that the lines out Rt. 291 were paid for by the State. Mayor Bailey said the whole issue was the sovereignty of the Town and whether people will be required to be annexed in order to get the services. She said we will postpone the decision on the County's request until we get the written opinion from Mr. Bowman.

Mr. Capel said that when the lines were extended out Rt. 291 all the property owners signed an agreement that they would be annexed if the time came. Mayor Bailey said she could foresee businesses saying they would not want to be annexed once they got the services they needed. Mr. Bristoll said we are dealing with a precedent that might put us in a difficult position with other situations in the future. Mr. Davis said another issue may be that the businesses between the existing town limit and the Wartsila property would not want to be annexed and decide to leave Kent County and go elsewhere.

Mr. Gross asked how much weight the documents signed when the service was extended would carry on an annexation. She said the Charter was changed in 1982 to accommodate the State Highway project. She said once the services are granted and the owners have what they want, they may say they do not want to be annexed. She said the town taxpayers still have to pay for the infrastructure and maintenance for those services. Mayor Bailey thanked Mr. Fithian and stated that they would have an answer in two weeks.

Mayor Bailey said the next item was the request to purchase a 10' utility strip on Pine Street

by Mr. Hanifee. Mr. Ingersoll said he had given the Council a summary of acquisitions of surplus property over the last ten years. He said the strip in question was 10' x 150' perpendicular to Pine Street between the Hanifee property and Fowler property and intersects the alley that runs through the middle of the block. He said a similar ten foot strip was sold to Mr. Biddle in 1976. Mr. Hanifee would like to purchase the property to build a driveway. He said there was a driveway on this land which has been shared by the heirs to the Fowler estate and Mr. Hanifee.

Mayor Bailey asked what would happen to the neighbors access to their property if the strip were sold to Mr. Hanifee. Mr. Ingersoll said there was some misunderstanding about the ownership of the strip when Mr. Hanifee first bought the property, but the two have been worked it out and are sharing the right-of-way. He said the procedure for disposing of surplus property involves declaring the property as surplus, appraising the property, advertising it for sale, and in this case, offering the property to the adjacent property owners as it would be of no use to anyone else. Mr. Bristoll asked whether this drive was the only access to both owners' properties or garages. Mr. Ingersoll said they both use it to access utility buildings but they can use the utility alley in the rear. He said if one owner purchases the strip, someone will probably have to build a new driveway. Mayor Bailey said she did not want to see the sale of this strip cause problems for another owner, now or in the future.

Mr. Capel said there are no services lines in the utility strip. He said they should divide it up and each pave 5 feet on their own side and share the 20' wide driveway. Mr. Davis said he felt the wisest thing would be to keep it as a Town-owned strip and allow the two owners to continue share it. The Council agreed and took no action on the request.

Mayor Bailey said the next item on the agenda was Charlie Sommers' request for water and sewer to Crestview Square. She said that she discussed this again with Mr. Bowman and he will be doing further research on the question through the Lexus legal system to see if he can find anything that parallels Mr. Sommers' situation. She said now we have his opinion in his letter and Mr. Bowman would prefer that the issue was not put to a vote yet. Mr. Davis said if the vote was put off, could it be resolved at the next meeting. Mayor Bailey said we could. Mr. Sommers said that his counsel and Mr. Bowman had discussed the matter and are still working on it. He requested that Mr. Bowman be present at the next meeting so that the matter can be resolved and he can answer any questions that arise at the meeting.

Mayor Bailey stated that a copy of a proposed Charter Amendment had been distributed to the Council. She said the procedure was to have a motion for a first reading and introduction of the Resolution for Charter Amendment. She asked Mr. Ingersoll to explain the procedure. He said after the first reading, it would be scheduled for a public hearing, advertised four consecutive weeks and the comment period would run concurrently with the advertising. It would be adopted after the public hearing. Mr. Bristoll moved for a first reading for the Resolution to Revise the Municipal Corporation Charter for the Town of Chestertown and was seconded by Mrs. Mumford-Pautz. The vote was 3 in favor, Mr. Gross and Mr. Davis opposed.

Mayor Bailey read the Resolution in its entirety. Mr. Ingersoll said he would schedule the public hearing and do the advertisement.

Mr. Capel said he had a question. He said suppose the Sanitary Commission requests water and sewer and the Town would not be extending it as was done with the Quaker Neck sewer line, the Town would only be taking the sewer. He asked what would happen then? Mayor Bailey said Quaker Estates was given sewer because of failing septic systems. Mr. Bristoll said he did not understand. Mr. Capel said suppose some area like Chesmar had the same situation. Mr. Bristoll said that would be when they would be annexed and become part of Chestertown.

Mayor Bailey asked if there were any questions or comments from anyone. There being none, Mayor Bailey asked the Council to review the bills. Mr. Bristoll moved that the bills be paid as presented, was seconded by Mr. Davis and carried unanimously.

Mr. Bristoll moved that the meeting be adjourned at 8:37 p.m., was seconded by Mrs. Mumford-Pautz and carried unanimously.

Submitted by: Approved by:

Joan Merryman Margo G. Bailey

Stenographer Mayor

RETURN to 1998 Minutes