Mayor Margo G. Bailey called the meeting to order at 7:30 p.m. In attendance were Councilmembers Harrison C. Bristoll, Jr., W. Whaland Clark, Mabel Mumford-Pautz and J. Brian Kirby, Police Chief Walter Coryell, 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 meeting and executive session of April 16, 2001. Mr. Bristoll said he did not have the minutes of the meeting and asked that approval be held to the next meeting. The Council agreed. Mayor Bailey asked for a motion to approve the minutes of the executive session. Mrs. Mumford-Pautz moved that the minutes of the executive session of April 16, 2001 be approved, was seconded by Mr. Kirby and carried unanimously.

Mayor Bailey stated that an executive session had been held on Monday, April 16, 2001 at 8:15 p.m. pursuant to Sec. 10-508 of the Annotated Code of Maryland. The Mayor and three Councilmembers were present and voted unanimously to go into executive session. The meeting was called to discuss the hiring of a Hot Spot community liaison and Susanne Hayman was present. The action of the Mayor and Council was by unanimous vote. The meeting was adjourned at 8:25 p.m., and minutes were taken for the record.

Mayor Bailey called on Chief Coryell for the police report. Chief Coryell gave the report for the month of April and stated that arrests were up. He said they made 40 adult arrests and 22 juvenile arrests on 33 separate charges, 23 of which were for CDS. He said that five police officers were assaulted and three required hospital treatment. He said the CDS arrests have been primarily for marijuana but there has been crack cocaine in significant quantities for distribution. He said a good portion of the arrests were made in the Hot Spot area.

Mrs. Mumford-Pautz asked the ages of the juveniles arrested on drug charges. Chief Coryell said older teens, 16 and 17. Mr. Ingersoll asked Chief Coryell to state the number for the drug task force. Chief Coryell said 410-778-3744 or call the Chestertown Police.

Chief Coryell said he had asked Bobby Waters, President of the FOP, and Charlie Rhodes from the Natural Resources Police to come to the meeting to speak on the LEOPS pension system (they were coming at 8:15 p.m.). He said the Police Department was hoping that the Town would have an actuarial study done to determine exactly a change in the pension system would cost the Council and the officers.

Mayor Bailey asked if the increased arrests were due to increased activities or was the Police Department getting better. Chief Coryell said the change in the weather and the officers working ten hour shifts with overlaps at the beginning and end of the shifts which give additional strength on the street at the time when it was needed. He said drugs are a terrible scourge on the country and are everywhere and everyone needs to be constantly vigilant.

Mayor Bailey said Chief Coryell, Mrs. Mumford-Pautz and several residents met to discuss the problems on High Street. She said there are some things the Town can change such as reduce the distance from which noise can be heard from its source from 100 feet to 50 feet. That change can easily be made in the Noise Ordinance. Another suggestion was to change the fine from $100 for the first offense to $250, and from $200 to $500 for a second offense. She said making this change requires a Charter change since the fee structure for municipal infractions was set in the Charter. She said it seems that people holding parties collect contributions towards the fine at the beginning so they have the money to pay the fine.

Chief Coryell said they have discussed this with the College and they have agreed that before major events they will run in their newspaper and post notices about being a good neighbor as far as noise or blocking driveways.

Mayor Bailey said posting High Street for "no truck traffic except for local deliveries" should help with the truck traffic which contributes to accidents. Mr. Kirby said there was no problem putting up signs but enforcement was a problem. He said he felt that the speeding was more of a problem and controlling the speed would control the problem with the truck traffic as well. He said the police have enough to do without stopping trucks to check destinations. Mrs. Mumford-Pautz agreed that speed was a problem from all vehicles not only trucks.

The Council agreed that the distance for noise violations should be changed. Mr. Ingersoll said he had a Ordinance ready to introduce to accomplish that. Mayor Bailey said the fee schedule for fines was set in the 1980's. She said the fee structure should be taken out of the charter and put in the ordinance itself. Mr. Bristoll said he felt we should direct the Town Attorney for prepare the charter change. Mr. Kirby said he would like to see some comparison for fines for similar charges with other Towns. Mr. Ingersoll said there was a limit to municipal infractions in the beginning when they were first allowed and there may still be a limit. He said the State also encouraged charters to differentiate between misdemeanors (criminal charges) and municipal infractions (civil charges). He said if we are authorized to put the fine amount in an ordinance, he did not think we should have it in the charter.

Chris Wode stated that if a citation for noise, for example, is not paid and it goes to the District Court and the person does not show up, a judgement is entered. He said not only do we not get the money, but the attitude on the street is that "you just don't have to pay." Mr. Ingersoll said we need to look into following up on the judgements. Office Wode said the Town has to take action such as garnishing wages or whatever action can be taken.

Gail Regester suggested that the names of the people be given to the College and ask that if they are students they do not graduate if they have any open judgements or citations. Chief Coryell said if the College and the Police had an arrangement whereby College Security was called and would appear with the Police Officer at these parties, then the student would realize that the college was aware of what was going on off campus and would remove the anonymity. Mayor Bailey said she and Chief Coryell will work on this with the College this summer.

Mayor Bailey asked the Council to consider approving the signs for local trucks only on High Street from Rt. 291 to Cross Street. Mr. Kirby said unless this was an ordinance, you could not just put a sign. Mr. Ingersoll said this would have to be included in the Vehicles and Traffic Ordinance. He asked if the wording should be "local truck deliveries only". Mayor Bailey said that was correct.

Mayor Bailey asked Mr. Ingersoll to read the introduction of Ordinance No. 3-01 which changed the distance for noise violations to 50 feet from its source rather than 100 feet. He said the vote on this Ordinance would be taken at the next meeting.

Mayor Bailey called on the Gene MaGary from Charter Communications who had been asked to come to discuss the recent notices to cable TV customers. Mr. MaGary introduced Scott Dimerling who was the new general manager for this area. Mr. Dimerling explained the changes to the premium format and moving to the digital format. He said the FCC was mandating that all systems move to digital by 2005. He said the premium channels will move to the digital format as of June 4, 2001 and unless a customer has opted for the digital premium package and requests the digital converter, they will no longer be able to get the premium channels. He said beginning June 2001 people will be given a credit for the box for the premium channel for two months and they can decide whether they want to continue the service or not.

Mayor Bailey asked about getting cable to the third floor of a home. Mr. MaGary said that it was not Charter's responsibility. He said they would do it but they prefer that a homeowner have an electrician do any wiring that must be done on a third floor. He discussed the services available and the costs. He said that the digital package costs $64.95 and includes both analog and digital service and the digital box.

Mayor Bailey said that Charlie Rhodes had arrived. Chief Coryell asked Mr. Rhodes to discuss the Law Enforcement Officers Pension System, which was a State administered pension system which allows officers to contribute to the system. Mr. Rhodes said he was involved when the system was formed in 1989 for the Natural Resources Department officers. He stated that since that time legislation has been passed to allow local police departments to opt to join the pension system.

Mayor Bailey said one of the issues for a small town in competing with larger police departments was funding. She said a small town cannot offer some of the benefits that State or County departments can offer. She said her concern was whether this system was so expensive that the Town still would not be able to afford it.

Mr. Rhodes said the start up costs may be substantial but as the system evolves they expect the cost to come down for the local government. He said the State recommends that an actuarial study be done to determine the costs up front and the projected costs over time. The cost per department for the study was around $4500.

Mr. Ingersoll said it appeared that the cost would be 20% plus 11% of the annual police force salary costs. Mr. Rhodes said as a rule of thumb the average calculation was 30 to 32% of payroll. He said Cambridge was the only town on the Eastern Shore that had adopted the pension system. He said their employees were already in a State pension system.

Mr. Ingersoll said the Chestertown used to have a defined benefit system and it had its drawbacks. He said a pension study committee reviewed the system and recommended that the Town change to a defined contribution system which the Town can set at any level. Mr. Ingersoll asked Mr. Rhodes what would happen if someone entered the LEOP System at age 50. Mr. Rhodes said he was not an expert and a representative from the State would come and talk to the Town. He said his understanding was that someone had to have 25 years of service regardless of age. He said this plan would allow an officer to retire after 25 years of creditable service at 50% of their three highest years' salary. He said the question for a small town was could that cost be built into the operating expenses for the police department. He said compared to the agencies that work in this county, the State police and National Resources, effective January 1 the salary for someone going into the academy the starting salary was $36,000.

Mr. Ingersoll asked if the Kent County Sheriff's office had gone to LEOPS. Mr. Rhodes said not to his knowledge. He said he thought Queen Anne's County was looking at the system. Mr. Ingersoll asked if someone from the State would come to talk to Chestertown and Mr. Rhodes said he thought they would.

Mr. Kirby said the figure 31% of salary sounded like a tremendous amount of salary. He said right now the Town contributed 5% of salary. Mr. Rhodes said in the LEOPS program the officers contribute a another 4% so the cost to the Town really would be the 22% on top of what they are now contributing.

Mr. Ingersoll asked what the vesting schedule was for LEOPS. Mr. Rhodes said he thought it was 5 years. Mr. Ingersoll said in a local defined benefit plan if you had officers leave before the five year vesting point, the funds in the plan would remain in the local plan to benefit your own officers. In a State wide system, those funds would remain in the Statewide system not specifically for the local officers. Mr. Rhodes said he was sure how that works but the State representative could clarify that.

Mr. Ingersoll said he would think that the Town would budget for the actuarial study of the LEOPS plan and compare it to an actuarial study of the present pension plan. He said the Town has a deferred compensation plan which was voluntary by employees. Mr. Rhodes asked if the Town matches the deferred comp contribution by employees. Mr. Ingersoll said no but it would be something that could be considered. He said the Council will discuss this during the budget process. Chief Coryell said the officers need a good pension system and salary that will allow them to feel a parity with other departments. He said this an important factor in hiring new officers and in retaining the trained officers. He said the Town's quality of life depends on have a quality police department.

Mr. Ingersoll read a letter from the Chestertown Volunteer Fire Company requesting a permit for the carnival that has been held at the shopping center for several years. They are asking for a commitment from both the County and Town police agencies for the proper amount of supervision for the carnival. The dates suggested are July 25 through July 28, 2001. He said it was important to separate recreation from problems and that the carnival does provide recreation for youth.

Mr. Kirby said he thought it was ridiculous to consider having the carnival again. He said there have been problems at that carnival every time it has been held. He said he realized that the Fire Company needs to raise money, but the problems were escalated over ones in the past, but there are nothing but problems no matter how much security was there. He said he did not understand why the Town was even being asked to invite those types of problems.

Capt. Edler said every year the problems at the carnival have gotten worse and they do not have the manpower to get everything that needs to be done, without devoting the hours it takes to the carnival. Mayor Bailey said the Council would defer to the people who have had the experience at the carnival. There was no vote on the permit request.

Mr. Kirby said he did not know how much the Fire Company receives from the carnival, but he would be willing to look at the budget to see if the Town can make a larger contribution to the Fire Company in lieu of the carnival.

Mayor Bailey said Peter Rice was on the agenda, however, no one from Echo Hill or Sultana was present.

Mayor Bailey called on Mr. Ingersoll. Mr. Ingersoll said Scott's Point Marina has requested a permit to have music at the marina on Friday, May 26, Saturday, May 27 and Sunday, May 28 until midnight. He said there had been no problems with that. Mr. Clark moved that the permit be granted, was seconded by Mrs. Mumford-Pautz and carried unanimously.

Mr. Ingersoll said Carla Massoni had submitted a permit request for Friday, May 18, 2001 to reserve three parking spaces in front of 203 High Street for a private opening at the gallery. She asked for permission to cordon off part of the sidewalk from 5 to 8:30 p.m. Letters from the neighboring properties indicated no problems with the request. The permit also requests waiving of the open container law during that event. Mr. Kirby moved that the permit be granted as stated, was seconded by Mr. Clark and carried unanimously.

Mr. Ingersoll read a letter from the Tea Party Committee inviting the Mayor and Council to judge the parade on Saturday, May 26 at 9:45 a.m. The Mayor and all Councilmembers will attend.

Mr. Ingersoll said we have been advised by the State to change the building maintenance code in force in Chestertown from the BOCA Basic Maintenance Code to the Internation Building Code. He introduced Ordinance No. 1-2001 for the first reading with a vote to be taken at the next meeting.

Mr. Ingersoll said that the Local Government Insurance Trust has asked for a Resolution to approve the Seventh Amended and Restated Local Government Insurance Trust Agreement. He said this was a formality and he read the Resolution. Mrs. Mumford-Pautz moved that Resolution No. 3-01 be approved, was seconded by Mr. Bristoll and carried unanimously.

Mr. Ingersoll read a letter from Carl Burke about the Town filing for a Block Grant on behalf of Upper Shore Aging, Inc. for $450,000 for the senior center. Mr. Ingersoll said Mr. Burke has found that must have a match for a block grant and they are not ready with a match and think they would be ready at the February round of funding. He said the Town does not have a block grant request for this round and would suggest that Mr. Burke file at this round if they desire. The Council agreed that Upper Shore Aging be allowed to file now or in February for the Block Grant.

Mr. Ingersoll said he had a proposed draft of the budget for the Councilmembers. He said it was a balanced budget with general fund government revenues of $1,807,791, grants $722,891, for a total of $2,530,682 with expenses the same. He said the draft shows the proposed percentages of changes and a notable one was a 13% increase in expenses for the police department. He said all information will be considered in the budget workshop by the Council. He said the enterprise funds (Satterfield Court and Cannon Street) are balanced. He said the Utilities Commission budget was $944,469 with $122,483 funded by depreciation.

Mr. Ingersoll said that the assessment on real property is now being based on 100% of the property value rather than 40 percent. He said the $.90 tax rate we had will now be $.35 based on the 100% assessment. He said he had a discussion with the State since 40% of $.90 was $.36 but the State said that would be increasing taxes. Technically using the $.35 figure will be slightly reducing real property taxes.

Mr. Ingersoll requested an executive session to discuss a contract on town property. Mr. Bristoll moved that an executive session be held pursuant to Sec. 10-508 of the Annotated Code of Maryland, was seconded by Mr. Clark and carried unanimously.

Mayor Bailey said that Glenn Dulmage and Orgirina Graves were nominated to serve on the Recreation Commission at the last meeting. She asked for the vote on the appointments. Mr. Bristoll moved that Glenn Dulmage and Orgirina Grave be appointed to the Recreation Commission, was seconded by Mr. Clark and carried unanimously.

Mayor Bailey read and signed a Proclamation Declaring the Month of May as Older Americans month.

Mayor Bailey said the Town has been asked for a letter of support for the creation of a Kent County Human Relations consisting of a panel of seven citizens. She said the County will hold a hearing on this on Tuesday morning at 9:30 a.m. in the Commissioner's Hearing Room. Mrs. Mumford-Pautz moved that the letter of support be sent and was seconded by Mr. Clark. Mr. Kirby said he was not sure why they feel a need for this Commission as there were already State and local agencies in place that do the same things. He said he was not in support of this commission as there were underlying factor and he felt it could basically turn out to be a citizen review board for police. The vote on the motion was four in favor, Mr. Kirby opposed.

Mayor Bailey thanked the State Highway Administration for the beautiful tulips at the intersection of Rt. 213 and Rt. 291. The State will work next on the long strip on Rt. 291. Mr. Ingersoll we are using State Highway Administration retrofit sidewalk funds along in front of the Hogans building. The Hogans Agency asked that one of thier two entrances be closed and they will do some landscaping there.

Mayor Bailey asked the Council to review the bills. Mr. Clark moved that the bills be paid as presented, was seconded by Mrs. Mumford-Pautz and carried unanimously.

Mr. Clark moved that the meeting be adjourned at 9:10 p.m., was seconded by Mr. Kirby and carried unanimously.