TOWN OF EASTON, MARYLAND
December 16, 2002
Council President Robert C. Willey Councilman Carl B. Reed
Councilman John F. Ford Councilwoman Moonyene Jackson-Amis
Kathy Ruf for Town Clerk Robert F. Karge, Town Attorney C. Kehoe, Town Engineer Timothy W. Glass, Assistant Town Engineer J. Gruber, Town Planner Tom Hamilton, Chief George M. Harvey, Easton Police Department and interested citizens and members of the press. Also attending were Easton Utilities employees Hugh E. Grunden, President and CEO; George H. Roberts, Vice President of Finance and CFO; James R. Silvius, Senior Vice President; James P. Crowley, Gas Department Manager.
The Mayor and Council met in regular session at 7:00 p.m. in Council Chambers. Council President Willey called the meeting to order. Ms. Ford led the audience in prayer and the Pledge of Allegiance.
Upon motion by Mr. Ford, seconded by Mr. Reed, minutes of the November 23 and December 2, 2002 meetings were unanimously approved.
LETTER FROM EASTON VOLUNTEER FIRE DEPARTMENT ASKING APPROVAL OF ELECTION OF CHIEF J. RUSSEL MILES AS CHIEF FOR THE YEAR 2003
Upon motion by Ms. Jackson-Amis, seconded by Mr. Jensen and carried unanimously, approval was granted for election of Chief J. Russel Miles as Chief for the Easton Volunteer Fire Department for the year 2003.
Mr. Ford thanked Chief Kelly Jones for the service he has provided as previous Chief.
REPORT FROM EASTON VOLUNTEER FIRE DEPARTMENT, INC.
Mr. Lyle Fuller was present and reported that the Fire Department is still very busy. He wished everyone a safe, happy holiday.
ACCEPT FY2001/02 AUDITED FINANCIAL REPORT FOR THE TOWN OF EASTON
Upon motion by Mr. Reed, seconded by Mr. Jensen and carried unanimously, the Audited Financial Report for the Town of Easton was accepted.
ORDINANCE NO. 452, “AN ORDINANCE OF THE TOWN OF EASTON ESTABLISHING BOUNDARIES FOR THE ELECTION WARDS OF THE TOWN”
Upon motion by Mr. Jensen, seconded by Mr. Ford and carried, Ordinance No. 452 was carried with Mr. Reed voting no.
PUBLIC HEARING SET FOR COOKE’S HOPE PUD
The President of the Council set the Public Hearing for February 3, 2003 at 7:15 P.M.
RESCHEDULING OF COUNCIL MEETINGS IN JANUARY
The President of the Council rescheduled the Council Meeting for January 20, 2003 for Wednesday, January 22, 2003 due to the Martin Luther King Jr. Holiday and a MML Meeting on January 21, 2002.
MEMO FROM HUGH GRUNDEN, PRESIDENT AND CEO, EASTON UTILITIES REQUESTING PERMISSION TO CONSTRUCT A NEW ONE-MILLION GALLON ELEVATED WATER STORAGE TANK ON THE TOWN OWNED PARCEL IN THE CLIFTON INDUSTRIAL PARK.
Mr. Kehoe stated that because it is a multi-million dollar investment, it would be best if the Council would request to have a formal resolution on the matter.
PUBLIC HEARING TO PROVIDE THE PUBLIC AN OPPORTUNITY TO COMMENT ON PROPOSED GAS SERVICE RATE REVISION.
At 7:18 P.M., the President of the Council opened the Public Hearing.
Mr. Grunden, President and CEO, Easton Utilities, presented their Gas Rate Revision plan.
Mr. Grunden stated that all departments will have to be financially independent due to the fact that Easton Utilities does cross subsidize one department with another.
Mr. Grunden discussed the reasons for rate increases when revenues are inadequate.
Mr. Grunden explained how the rates used in the gas department are composed of three elements: purchase gas charge, base rate and customer charge.
Mr. Grunden discussed the purpose of the proceeding, which is to increase the overall revenue by 8.2%, which is about .16 a day for customers. The rates, however, will not be effective until April 2003.
Mr. Grunden stated that this would be the third increase in 10 years. He also stated that the need for the increase is not for growth.
Mr. Grunden discussed the purpose for replacing an aging infrastructure.
Mr. Grunden stated that there has been an increase in maintenance costs as well as fairly dramatic rise in the regulatory requirements by the State of Maryland and Federal Department of Transportation. There has also been a twenty percent increase in medical costs for employees; whereas, the current rates are based on 1999 expense levels which became effective July 1, 2000.
Mr. Grunden explained the requested increase would be used for.
Mr. Grunden discussed the residential gas service proposal, stating that April 2003 would be the soonest that the rate change would occur.
Mr. Willey asked for an explanation of the benefits of the propane station on Dover Road.
Mr. Grunden discussed the construction of the propane air plant as well as the benefits.
Mr. Jensen questioned if Easton Utilities could tighten their belts to avoid the rate increase.
Mr. Grunden explained that there has been significant reorganization and steps that have been taken. He stated that the purchase of commodity has been reorganized so that there has not been any price spikes.
Mr. Jensen questioned what would happen if the request were rejected.
Mr. Grunden stated that since the request is not padded, the infrastructure would not be replaced as much, if not something else would have to go. Safety is the first priority when a natural gas system and when there is hazardous material involved, it cannot be skipped.
Mr. Ford stated that it is safe to assume that operating costs rarely go down, normally they go up. He went on to say that nobody likes rate increases of any kind, but it is important that when the increases occur, there is a compelling reason to do so.
The President of the Council asked for audience comments.
The President of the Council stated that the record would be left open for public comments until 4:00 p.m. on Friday.
There being no further comments, the President of the Council closed the Public Hearing at 7:34 P.M.
It was the consensus of the Council to prepare a resolution for the Council Meeting on January 6, 2003 regarding the matter.
APPROVAL OF INVOICES TOTALING $580,037.93
Mr. Reed made a motion to approve payment of the invoices, seconded by Mr. Ford and carried unanimously.
RESOLUTION NO. 5796 AUTHORIZING THE RELEASE OF SECTION 457 DEFERRED COMPENSATION EMPLOYER MATCH.
Upon motion by Mr. Reed, seconded by Mr. Jensen and carried unanimously, Resolution No. 5796 was approved following a roll call vote.
RESOLUTION NO. 5795, A PENSION PLAN TECHNICAL COMPLIANCE CHANGE REQUIRED BY FEDERAL RULE CHANGES.
Upon motion by Mr. Reed, seconded by Mr. Ford and carried unanimously, Resolution No. 5795 was approved following a roll call vote.
RESOLUTION NO. 5792 (AS AMENDED) REGARDING HEALTH INSURANCE PLAN BENEFIT FOR FORMER ELECTED OFFICIALS.
Upon motion by Mr. Reed, seconded by Mr. Ford and carried unanimously, Resolution No. 5792 (As Amended) was approved following a roll call vote.
COMMENTS FROM THE MAYOR
Mayor Butler wished everyone a Happy Holiday, as well as a healthy and prosperous New Year.
COMMENTS FROM THE CHIEF
Chief Harvey wished everyone a Great Holiday.
Chief Harvey gave an update on the status of the Toy Drive being conducted by Sgt. Hrobar and his wife.
COMMENTS FROM THE TOWN ENGINEER
Mr. Glass wished everyone a Happy Holiday Season from the Town Engineer’s office and Public Works.
Mr. Glass stated that the work on Talbot Street is ongoing and will continue until January with the weather permitting.
Mr. Glass also stated that leaf pick up will continue until all requests are satisfied.
The holiday trash schedule is as follows: Offices will be closed on December 24 & 25; the entire town will be picked up on December 26 & 27. Offices will again be closed on January 1, 2003; and the entire town will be picked up on January 2.
COMMENTS FROM THE TOWN ATTORNEY
Mr. Kehoe wished everyone all joy in their holiday celebrated.
Mr. Kehoe thanked everyone for allowing him and his associates to represent the Town of Easton.
Mr. Kehoe updated the council on the Kennedy Street ballots.
COMMENTS FROM THE ECONOMIC DEVELOPMENT COORDINATOR
Mr. Bond wished everyone a
Happy Holiday.
Mr. Bond stated that the Arts in Easton Banner auction on December 6, 2002 was
a success.
COMMENTS FROM THE COUNCIL
Mr. Willey reminded the Council that there was a meeting with the Talbot County Council the next evening at 5:00 PM in the Bradley Meeting Room.
Mr. Ford wished everyone Happy Holidays.
Mr. Ford recognized the committee that put together the Christmas Parade and Tree Lighting which was held December 7, 2002.
Mr. Jensen wished echoed Mr. Ford and wished everyone a Happy Holidays.
Mr. Reed wished everyone a Happy Holiday and a peaceful council for the upcoming year.
Ms. Jackson-Amis stated that she was hoping to grow with inner joy, peace and understanding. She went on to say that the First Kwanzaa Celebration in Talbot County was a success. Ms. Jackson-Amis stated that there will be another program held on December 30, 2002 at the Avalon Theatre.
AUDIENCE COMMENTS
There were none.
ADJOURNMENT
There being no further business, upon motion by Ms. Jackson-Amis, seconded by Mr. Reed and carried unanimously, the President of the Council adjourned the regularly scheduled at 8:10 p.m.
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Town Clerk