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., Mabel Mumford-Pautz and J. Brian Kirby, Medford Capel, Utilities Commission Manager, Joan Merryman, Stenographer and guests.

Mayor Bailey stated that the Utilities Commission has cash on hand and in banks as of January 26, 1998 of $341,806.99.

Mayor Bailey asked if there were any additions or corrections to the minutes of the previous meeting. Mr. Bristoll moved that the minutes of the meeting of December 17, 1997 be approved as submitted, was seconded by Mr. Gross and carried unanimously.

Mayor Bailey called on Mr. Capel for his report. Mr. Capel said that the new apartments complex on Rt. 291 (Morgnec Road) will require about 70 water meters. He said he would like to order 100 meters so that he will have adequate meters for this new development and have replacement meters on hand for regular use. He said by ordering 100 at a time there was a price break and the cost for 100 would be approximately $70 each. Mr. Bristoll asked whether this was something that should be bid. Mr. Capel said there was only one type of meter we can use for our system, and though there was one manufacturer, there were several suppliers. He said he will research the price from the various suppliers. Mr. Bristoll moved that Mr. Capel be authorized to purchase the 100 water meters as discussed, was seconded by Mr. Kirby and carried unanimously.

Mr. Capel reported that one of the new employees has his wastewater license and has passed the test for the Class 4 water license. He said our operation was a Class 3 water facility. He said the only difference in the two classes was that a Class 4 facility uses a coagulant and we do not use that in our Class 3 facility. He said he was working with the State Licensing Department to see if the man's Class 4 license can be changed to a Class 3.

Mr. Capel reported that they have cleaned the contact chamber out at the lagoon and removed about 6 inches of sludge. He said the sludge was nothing but algae but it takes a lot a chlorine to treat it to kill all the coliform.

Mr. Capel said the Rural Waterworks Association would be having their annual meeting in Ocean City in April and he would like to attend. He said he would also like to attend an American Waterworks meeting on March 12, 1998 on treating the water system and keeping it up to date. He said that meeting will be in Laurel and he would like to attend. Mr. Bristoll asked if it would be a good idea to have one of his assistants attend that meeting. Mr. Capel said he could take someone with him or report what he learns after the meting. Mr. Bristoll asked about the cost. Mr. Capel said it cost $75 for him and $100 if someone else goes with him. The Council agreed that Mr. Capel could attend both meetings.

Mr. Capel said he has had a request from the Kent County Commissioners regarding the 400 High Street building. He said the service has been off for quite a while and he suggested that the County be charged hookup fees of $10,500 to re-hookup for the renovations of the building. He said there was another matter, a duplex house on Cannon Street being moved lower on Cannon Street. He said the house that had been there had been torn down and he was wondering whether they should be charged a hookup fee.

Mayor Bailey said she wanted to back up and take a letter received from the Kent County Commissioners about the hookup fees to the Wartsila Building on Morgnec Road. She said they were advised that the hookup fees would be $12,000. She read the letter which asked for a waiver of the hookup fees for that building. Mayor Bailey said she was not in favor of waiving this fee, this was an entirely new building. She said the Town paid the County for the Cannon Street yard property discussed in the letter. She said we pay for our own roads, our trash pickup, our police, and we are increasingly paying for more recreation. She said the County gets the benefit of our tax dollars and we do not share all the same revenue sources. The County gets more than the Town. She asked Mr. Capel whether he would recommend waiving the fees. Mr. Capel said he would not recommend waiving the fees.

Mr. Bristoll said last year we had a study done on the property tax offsets and even at the most conservative form of estimating, the Town subsidizes $195,000 in services for the Town that the County does not have to provide. He said he did not feel the Town had to feel guilty about charging the hookup fees for this building. Mayor Bailey asked if anyone on the Council was in favor of waiving the fee. Mr. Gross moved that the Town charge the $12,000 hookup fee for the 709 Morgnec Road building, was seconded by Mr. Bristoll and carried unanimously.

Mayor Bailey asked the Council how they felt about waiving or reducing the hookup fees for the County for the 400 High Street building. Mrs. Mumford-Pautz asked how long the building had been vacant. Mr. Capel said for several years. Mr. Gross asked Mr. Capel what the normal charges were and how he had set the fee. Mr. Capel said he looked at their plans. The fee for an office building was based on the number of fixtures in the building plus $1500 for the sprinkler system. Mr. Bristoll suggested a compromise since the building had the service and fees would have been paid many years ago. He suggested they be charged half the normal hookup fees. Mrs. Mumford-Pautz said she felt they should pay the fees in accordance with Mr. Capel's figures. Mr. Kirby said he would defer to Mr. Capel. Mr. Gross said Mr. Capel had the expertise. Mayor Bailey asked for a motion. Mr. Gross moved that the Kent County Commissioners be charged hookup fees of $10,500 for the 400 High Street building, was seconded by Mr. Bristoll and carried unanimously.

Mayor Bailey said she would address the matter of the house being moved on Cannon Street from the 400 block to 306 Cannon Street. She said historically there was a hookup there and the building will be for a new business. She asked whether the Council felt a hookup fee should be charged. Mr. Bristoll said if we are charging the fees to anyone else, the fee should be charged. Mrs. Mumford-Pautz asked if there was any money in the grant for the Cannon Street revitalization that would help with those fees. Mayor Bailey said this was a private transaction of the property and was not part of the Town's grant. The Council agreed they should pay the normally calculated hookup fee.

Mayor Bailey read a letter from Gilman Development Company requesting permission to pay the hookup fees for Phase II of Chesapeake Landing in the same manner that will be used for Phase I. She said this would be considered the local contribution towards the project as required by the Maryland Department of Housing and Community Development. She said the hookup fees would be paid in six equal payments, the first being paid at the time of obtaining the building permit, and the balance in five annual installments on the anniversary date of the permit with 8% interest. She called on Mr. George Beer from Gilman Development. Mr. Beer said the request was stated in the letter and they appreciated all the assistance they had received from the Town of Chestertown. He said they were requesting the same agreement as the Town had granted for the phase I hookup fees. Mr. Bristoll moved that the Town allow Gilman Development Company to pay the hookup fees for Phase II of Chestertown Landing in six installments, was seconded by Mr. Gross and carried unanimously.

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

Mrs. Mumford-Pautz moved that the meeting be adjourned at 7:52 p.m., was seconded by Mr. Bristoll and carried unanimously.

Submitted by:

Joan Merryman

Stenographer

Approved by:

Margo G. Bailey

Mayor RETURN to 1998 Minutes