March 6, 2000

The Town Council of the Town of Easton met today at 7:00 P.M. The meeting was called to order by the President of the Council, Mr. Willey, with the following members present: Mr. Ford, Mr. Mayer, Mr. Reed and Mr. Heinmuller. Also attending the meeting were Mayor C. Eugene Butler, Town Engineer Mr. Glass, Chief Harvey, Town Planner Mr. Hamilton and Town Attorney Mr. Kehoe.

Mr. Reed opened the meeting with prayer. He led those present in the Pledge of Allegiance.

Mr. Mayer made a motion to approve the minutes of the February 22, 2000 meeting as written, seconded by Mr. Reed and carried unanimously.

Chief C.R. Chance was present on behalf of the Easton Volunteer Fire Department. He reported that the Fire Department had a total of 61 calls, 29 within the Town of Easton, 32 within Talbot County. Chief Chance reported that there was a total of 645 man-hours and 897 personnel attendants. He stated that Easton Fire Department assisted other departments within the county eight times and had three assists from neighboring fire departments. Chief Chance stated that on March 4, Mr. Henry Purdy will have 60 years of service with the Easton Fire Department.

Ms. Libby Dawkins, 11 Thoroughgood Lane was present to discuss trash allegedly on town property. She discussed the wooded area near Hammond Street on Bay Street. Ms. Dawkins stated that this is a big eyesore. Ms. Dawkins stated that she had concerns with additional property owned by the Town of Easton and asked that effort be made to clean up these properties.

The President of the Council brought to the floor a memo from the Town Engineer requesting consideration for the appointment of Assistant Town Engineer, Mr. Joe Gruber. Mr. Mayer made a motion to approve the appointment, seconded by Mr. Ford and carried unanimously.

The President of the Council brought Ordinance No. 399, "AN ORDINANCE OF THE TOWN OF EASTON AMENDING THE EASTON ZONING ORDINANCE BY ADDING SECTION 608.2A.4.M TO IMPOSE A MAXIMUM SIZE LIMITATION OF 65,000 SQUARE FEET UPON ALL "BIG BOX RETAIL" STORES AND BY ADDING SECTION 803.5C(10) TO PROVIDE THAT THE EASTON BOARD OF ZONING APPEALS SHALL NOT HAVE THE RIGHT TO GRANT A VARIANCE FROM THE 65,000 SQUARE FOOT SIZE LIMITATION" to the floor.

Mr. Heinmuller questioned the right to appeal to the Zoning Board. He asked if they could come before the Council to exceed 65,000 square feet. The Town Attorney clarified that the applicant could ask the Town Council to modify what would be passed tonight.

Mr. Ford moved Ordinance No. 399 for passage, seconded by Mr. Mayer and carried with Mr. Willey and Mr. Heinmuller voting in opposition.

The President of the Council asked for a consensus on the request of William L. and Sue H. Gallagher for a Planned Redevelopment District (PRD) project proposed for the old Creamery Building located at 411 Needwood Avenue to subdivide the lot into two parcels and permit a beauty shop and offices within the building.

Mr. Ford stated that he is completely in favor of the proposal. Mr. Mayer stated that it is the correct use and approval will help preserve a historical building. Mr. Reed stated that he believes that this will improve the building and help to enhance the property around the site. Mr. Heinmuller stated that he is in favor of the application. The President of the Council directed the Town Attorney to summarize the consensus.

The President of the Council brought Resolution No. 5692, "A RESOLUTION OF THE EASTON TOWN COUNCIL INDICATING LOCAL GOVERNMENT SUPPORT FOR CERTAIN APPLICATIONS FOR STATE FUNDS UNDER THE PROVISIONS OF THE NEIGHBORHOOD BUSINESS DEVELOPMENT PROGRAM (NBDP)" to the floor.

Mr. Mayer moved Resolution No. 5692 for passage, seconded by Mr. Ford and carried unanimously following a roll call vote.

The President of the Council brought Resolution No. 5693 authorizing the Town Clerk to abate and/or refund taxes due totaling $563.50 to the floor.

Mr. Heinmuller moved Resolution No. 5693 for passage, seconded by Mr. Mayer and carried unanimously following a roll call vote.

The President of the Council brought a letter from Mr. Gelson Brooks, Plant Operations manager, Talbot County Public Schools requesting waiver of permit fees in the amount of $278 for renovation of Easton Middle School to the floor.

Mr. Ford moved acceptance of the request for waiver of permit fees, seconded by Mr. Mayer and carried unanimously.

Mayor Butler reminded those present that Capital Budgets are due March 15 and Operating Budgets are due March 29.

Chief Harvey stated that he had a request for the St. Patrick’s Day Parade to be held on Friday, March 17. He stated that there are some parade route issues that need to be clarified. He stated that he will table this request until the issues are resolved and then he will ask for telephonic approval.

Chief Harvey stated that he had a request from the Easton Apostolic Church for a street meeting on the grass area behind the police station for May 28, 2000 from 3:00 P.M. to 5:00 P.M. He stated that they are requesting permission to amplify the services. He stated that the department recommends approval. Mr. Heinmuller made a motion to approve the request from Easton Apostolic Church, seconded by Mr. Mayer and carried unanimously.

Chief Harvey stated that the department has a new police officer that joined them last Monday. He stated that Officer Marco, a K-9, is in training in Ocean City for twelve weeks.

At 7:15 P.M., the President of the Council opened the public hearing on the petition of Sherri Talbot, Yvonne D. Hoffman, trustee and North American Snake Institute Inc. for Resolution 5681 to annex 31.25 acres lying contiguous to the existing boundaries of the Town of Easton, south of S. Beechwood subdivision and east of US Route 50 (Ocean Gateway).

The Town Planner stated that Mr. Christopher Drummond will represent the Town on this petition.

The Town Planner stated that the Easton Planning and Zoning Commission at their meeting of December 16, 1999 reviewed an application for annexation of this property. He stated that the first time they reviewed this annexation petition it was for 52 acres, which was denied by the Town Council. The Town Planner stated that the applicant is back with a petition to annex 31.2497 acres. He stated that the property is south of South Beechwood. The Town Planner forwarded the Planning Commission’s recommendation, which was to annex the property and assign R-10A residential zoning classification.

Mr. Reed asked if the balance of the property would remain in the County. The Town Planner stated that it would.

Mayor Butler questioned where the entrance to Route 50 would be. The Town Planner stated that the Planning Commission had not been shown development plans. He stated that the entrance is unknown at this time.

Michael L. Pullen, Esq., was present on behalf of the contract purchasers for this parcel. He stated that this application has been substantially reduced from the first application. Mr. Pullen stated that Mr. Mike Wood will present the application.

Mr. Wood stated that he has been asked by the Passyns as a Project Development Director to introduce this proposed annexation. He stated that they are looking at 31.25 acres approximately and the main difference with the last application and this one is to eliminate the issues that created a problem the last time. He stated that the fielded area is the petition area and does not encompass any of the woods line.

Mr. Mayer questioned how deep the property is. Mr. Wood stated that it is approximately 1200 linear feet from the right-of-way from Route 50. Mr. Wood stated that they are trying to supply a product to the town which is obviously housing. He stated that the gap for desired housing is the $100,000 to $130,000 market which they believe is not served appropriately. He stated that the average sales price at Matthewstown Run is $155,000 and they are seeing people qualified for $100,000. He stated that after looking at the Town’s Comprehensive Plan and the County’s Comprehensive Plan, they needed to find a parcel that abuts the Town that could use the existing facilities. Mr. Wood quoted from the County’s Comprehensive Plan and stated that their map shows a future residential area halfway from Route 50 and the Choptank River. He stated that this is a much larger area than the piece of property they are proposing to annex. Mr. Wood stated that town’s facilities and services can be extended to this situation. He stated that the physical utilities are there. He stated that the zoning they are applying for is R10A, which is 10,000 square foot lots, which is medium density in the town. Mr. Wood asked for questions. There were none at this time.

Mr. Wood stated that he had promised to bring along a conceptual plan. He stated that what they are talking about is what the town has been asking for. Mr. Wood stated that this is a residential development of the southeastern quadrant of the development area of the town. He stated that the project incorporates a major collector road which runs the entire southern border of the property. He stated that they had decided to maintain the existing entrance. Mr. Wood stated that the other major components of the project include a large buffer area along Route 50. He stated that on the northeasterly portion of the project, there will be an open space buffer area which exceeds the town’s requirement.

Mr. Ford questioned to what extent the South Beechwood communities’ comments have been. Mr. Wood stated that since the last denial, he has not met personally with that group. He stated that he had incorporated the last comments into this plan. He stated that he had mailed a sketch plan to the residents in South Beechwood with his telephone number and a page long description of the development. He stated that out of 108 mailings, he had received one telephone call.

Mr. Heinmuller questioned if the developers had been in contact with State Highway Administration regarding acceleration and deceleration lanes. Mr. Wood stated that they would incorporate the capital improvements that would allow them to do future expansion.

Mr. Heinmuller questioned the location of the houses on the collector road. Mr. Wood stated that these houses would be facing in towards the development and would include a buffer strip much like the buffer along Fisher Range Road and Matthewstown Road which would include berming and vegetation screen.

The President of the Council opened the Public Hearing for public comments and questions.

Mr. Chris Davis, President of the South Beechwood Association, stated that the developers did send a letter with a sketch but did not go to the community association’s meeting in December. Mr. Davis stated that they had questions that needed to be answered. Mr. Davis stated that with the growth, it will be harder to get in their neighborhood with added congestion. Mr. Davis discussed water quality problems.

Mr. Ford asked what questions the Association had for the developer. Mr. Davis stated there were questions about future plans. He stated that the Town of Easton is a wonderful town just as it is now.

Ms. Mary Ellen Larrimore, 29319 Pin Oak Way, South Beechwood, stated that she understands the Comprehensive Plan and Smart Growth and understands how that works together. She stated that she is having problems seeing how Smart Growth can work when they are seeing an impact from Smart Growth, specifically, traffic. Ms. Larrimore discussed traffic problems and the Sts. Peter and Paul Church, Family Center and School which is coming. She stated that there needs to be a pro-active look at the traffic pattern in that area. Ms. Larrimore stated that the collector road needs to be looked at now.

Ms. Fran Elliott, 29251 Pin Oak Way, stated that she has traffic concerns. Ms. Elliott described the buses’ and emergency vehicles route going east to west on Route 50. She stated that additional houses will face the same problems.

The Town Engineer, Mr. Glass, discussed the crossover plan that State Highway Administration has planned. He stated that the plan is to have the crossover completed before June 30, 2000. He stated that the crossover at the church will be closed and shifted to Holly Road. Mr. Glass discussed the collector road and stated that their engineering department is putting together plans for the location of that road. He stated that traffic designs are underway for Dutchman’s Lane.

Mr. Heinmuller asked the Town Engineer to explain the intent of the east-side collector road. The Town Engineer stated that the intent is for local access which would allow motorists to get back and forth from neighborhood to neighborhood or to shopping center or other destinations without having to get onto Route 50. He stated that this will be prioritized as they approve these development plans and design processes.

Mr. Davis questioned the Town Engineer about the Church’s crossover.

Mr. Dan Schwaninger, 29679 Schwaninger Road, stated that his only connection with this property is that of a past tenant. He stated that in his mind, it seems to be a simple matter. He stated that this development is logical. Mr. Schwaninger stated that it seems to him that this is the natural progression for the town to grow.

Mr. Ford questioned Mr. Wood on the average lot size. Mr. Wood stated that they would be approximately 10,200 square feet. Mr. Ford questioned the amount of open space to be included. Mr. Wood stated that they have met the 1/35^th of an acre but he was not sure of the overall open space. Mr. Wood pointed out that the proposed number of lots is a maximum of 80.

Mr. Mayer questioned the average price of the houses in the proposed development. Mr. Wood stated that they will start out at the same market price as Matthewstown Run between $100,000 and $135,000 with three or four different models.

There being no further comments, the President of the Council closed the Public Hearing at 7:56 P.M. He stated that the record will be held open until 4:00 P.M. Friday for written comments.

The President of the Council asked Mr. Glass to address the brown water issue discussed during the public hearing and asked for a sketch of the Holly Road crossover. Mr. Glass stated that he will work with the State to get that information.

The President of the Council brought to the floor Resolution No. 5684 (AS AMENDED), "A RESOLUTION TO ANNEX CERTAIN LANDS OWNED BY PHILEMON K. CROFT AND RANDELL D.B. CROFT CO-TRUSTEES TRUST U/W MARY LOCKWOOD HARDCASTLE WRIGHT; AND LOUIS C. WRIGHT, TRUSTEE U/P P. KENNARD WRIGHT JR. TO THE TOWN OF EASTON LOCATED ON THE SOUTHERLY SIDE OF MARYLAND ROUTE 33 AND CONSISTING OF 3.176 ACRES OF LAND, MORE OR LESS, AND TO PROVIDE FOR THE TERMS AND CONDITIONS OF THE ANNEXATION."

The President of the Council asked if there were any questions or concerns on the Resolution.

Mr. Drummond discussed a slight change in Resolution No. 5684. He stated that he had made some editorial changes which are not substantive in nature.

Mr. Ford moved Resolution No. 5684 for passage, seconded by Mr. Mayer and carried unanimously following a roll call vote.

The President of the Council brought Ordinance No. 401, "AN ORDINANCE OF THE TOWN OF EASTON AMENDING THE OFFICIAL ZONING MAP OF THE TOWN OF EASTON TO APPLY AN ORIGINAL ZONING CLASSIFICATION OF A-1 (AGRICULTURAL) TO CERTAIN LANDS ANNEXED TO THE TOWN OF EASTON LOCATED ON THE SOUTHSIDE OF MARYLAND STATE HIGHWAY 33 OWNED BY PHILEMON K. CROFT AND OTHERS AND CONSISTING OF 3.176 ACRES MORE OR LESS" to the floor.

Ordinance No. 401 was moved for passage by Mr. Mayer seconded by Mr. Ford and carried unanimously following a roll call vote.

At 7:57 P.M., the President of the Council stated that there is another public hearing scheduled for 8:00 P.M. He stated that he will recess in order to let them get set up.

At 8:09 P.M., the President of the Council re-convened the meeting and opened the Public Hearing to provide the public an opportunity to comment on proposed Gas Service Rate Revisions.

Mr. Mark Heckler, Business Manager for Easton Utilities was present for their public hearings. Mr. Heckler asked Mr. Jim Silvius, Assistant General Manager of Easton Utilities Commission, to pass out copies to the Mayor and Council of overhead material which will be presented this evening.

Mr. Heckler stated that his purpose here this evening is to present a brief overview of the gas and cable television rate proposals Easton Utilities has submitted for consideration and answer any questions regarding these proposals. Mr. Heckler reviewed the major points and stated that they are asking for an overall increase of 3.53% in operating revenue. He stated that their last rate increase in the gas department was in April 1996. Mr. Heckler stated that this proposal will provide a minimum rate of return on the Town’s investment of 5.5% which is the current cost of capital or cost of debt. He stated that they are requesting some tariff provisions and certain service charges and policies. Mr. Heckler discussed the new rate structure and their reasons for implementing the change. He stated that they identified three customer classes which are residential, commercial and large commercial and industrial as well as three rate components. Mr. Heckler reviewed other typical gas charges from other utilities in the region.

The President of the Council asked what a typical customer’s bill would be with the proposed rates. Mr. Heckler stated that in the cost of service study, is established an average residential usage in a non-heating month as well as an average heating month. He stated that lower end users were not paying what it costs Easton Utilities to serve these customers. He displayed true numbers from the billing records. He stated that in a typical non-heating month, a residential customer uses 14 units of gas. He stated that under the current rate, they would be charged $15.63 and the proposed rate they would be charged $18.28 an increase of $2.65. Mr. Heckler stated that in an average heating month, the average residential customer used 116 units of gas and with the proposed rate, that customer would recognize a savings of $5 in that month. Mr. Heckler stated that the proposed rates are driven by how much gas the customer uses.

Mr. Heckler stated that with respect to both of these rate presentations, the gas and the cable, there are no Consolidated Office Building related expenses in the test year numbers.

Mr. Heckler asked for questions. Mr. Heinmuller questioned which portion of this charge would go towards another gas provider. Mr. Heckler stated that it would just be the cost of the fuel.

The President of the Council asked for audience comments.

Ms. Libby Dawkins stated that she thinks something is wrong with her gas meter because her bill this month was $125. Mr. Heckler stated that this reflected what she used from February 15 to March 15.

Mr. Heckler reviewed the process for gas extensions.

There being no further comments, at 8:30 P.M., the President of the Council closed the public hearing on the proposed gas service rate revisions. He stated that the records for written comments will be open until close of business Friday.

At 8:30 P.M., the President of the Council opened the public hearing on the proposed Cable Television Rate Revisions.

Mr. Heckler discussed the cable rate revisions. He stated that it is a cost of living approach. He stated that they are asking for overall revenue of 9.86% on non-internet revenue. He stated that they specifically excluded Internet because as a start-up, they predicted losing money for the first fifteen months. He discussed tier revisions. Mr. Heckler stated that their last increase was five years ago in April 1995. He stated that their programming costs have increased over 35%. Mr. Heckler discussed Disney forcing them to move their channel to tier 2 which immediately means an estimated annual lost in revenue of approximately $45,000. Mr. Heckler reviewed the upgrades of channels since 1995. He compared rates to other cable providers in the area and stated that with the new rates, the best comparison is Easton Utilities at $.55 per channel compared to Falcon at $.65 per channel or 18% higher for basic service. He stated that Comcast is currently $.73 per channel for their basic channels.

Mr. Heckler asked for questions relating to the proposed cable rate proposal.

Mr. Heinmuller questioned why they used a different methodology for the proposed gas rate structure and the cable rate structure. Mr. Heckler stated that they had brought in outside help to embark on a cost of service study. He stated that they believe what they present to the Public Service Commission will be accepted. Mr. Heckler stated that he has never seen such a study done in the cable industry. He stated that the cable is strictly a cost of living request. Mr. Heckler stated that the hotel/motel rate is not being revised as they believe they are charging appropriately.

The President of the Council asked for audience comments.

Ms. Libby Dawkins referred to Mr. Heckler’s mention of the last increase date. Mr. Heckler stated that the increase is much needed. He stated that they need both of these requests in order to provide the service.

Ms. Dawkins questioned possible solutions to gas extensions.

Mr. Mayer questioned working with Channel 5. Mr. Russell stated that at this point, they have exhausted all possibilities. He stated that unfortunately, they are not going to be able to carry Channel 5. Mr. Russell stated that that would be filled immediately with C-Span 2.

Ms. Dawkins questioned if satellite owners receive Channel 5. Mr. Russell stated that they do not.

There being no further comments, at 8:45 P.M., the President of the Council closed the public hearing on the proposed Cable Television Rate Revisions. He stated that the record would be kept open until 4:00 P.M., Friday.

The Town Engineer reported that the asphalt plant is scheduled to re-open Wednesday so paving will occur at various locations. He reported that they are putting the final touches on the budget for their requests so if there are any areas of concern, please contact their office. He stated that they are expecting a proposal that will entail the Dutchman’s Lane area.

Mr. Heinmuller questioned what was found during the road show in terms of the condition of the streets. The Town Engineer reported that most of the work now is focusing on the older sections of the town such as downtown and the surrounding areas. Mr. Glass stated that they are seeing the results of paving and curb, gutter and sidewalk projects. He stated that putting money into what the town looks like and rides like, gets to be less of a burden as the years go by.

The President of the Council as the only member of the Traffic and Parking Commission present tonight gave the Town Engineer a request for handicapped parking at the Baptist Church.

The Town Attorney requested enacting a resolution to honor Mr. Purdy and thank him for his service to the town. Mr. Kehoe stated that Mr. Purdy also served as an elected official.

The Town Attorney discussed the County’s Public Hearing on the bill introduced by Mr. Foster. The Mayor asked that a document be forwarded to the County Council stating the Town’s position. He stated that it should be known that the Town Council is concerned with building on the borders of the Town. It was the consensus of the Town Council that the Mayor compose a letter to the County Council stating the position of the Town and present it during the public hearing.

Mr. Mayer made a motion seconded by Mr. Reed to invite Mr. Purdy to a Town Council meeting for recognition.

Mr. Ford stated that Shut Down the Town Day was very productive. He stated that he looks forward to the compilation report which Ms. Hager of EBMA will be presenting in the near future.

Mr. Mayer stated that he also spent the morning at Shut the Town Day. He stated that Mr. Ford represented the Town Council very well.

Mr. Reed asked the Mayor to mention in his letter to the County Council the inconvenience of their meeting time.

Mr. Heinmuller encouraged the County Council to take the steps to have meetings at a more appropriate time. He stated that he enjoys the fact that the Town Council gets more participation from the public.

The President of the Council stated that he had two requests to waive building permit fees at the EMS facility at the Easton Airport and the other at the Health Department Renovation project. Mr. Mayer moved the waiver of both projects, seconded by Mr. Ford and carried with Mr. Heinmuller opposing.

The President of the Council asked if Sean or Tracy Connelly were present. They were not.

There being no further business, Mr. Ford made a motion to adjourn the meeting seconded by Mr. Mayer and carried unanimously. At 8:55 P.M., the President of the Council adjourned the meeting.

___________________________________

Town Clerk