Town of Berwyn Heights

Worksession Minutes

April 16, 2007

The meeting was called to order at 7:00 p.m. Present were Mayor Calvo, Mayor Pro Tem (MPT) Jewitt, CMs Dennison, Gourley and Lofgren. Also present were Town Administrator Murphy, Clerk Harper and citizens.

1. Mayor

Announcements: Mayor Calvo, on behalf of the Council, expressed sympathy with the victims of the Virginia Tech shooting.

Calendar: The time of Pontiac Street field meeting with the Boys & Girls Club was changed to April 17, 7:30 p.m. The April 23 budget worksession was dropped. The date for the Farwell rededication ceremony was added for May 14, 2 - 3 p.m.

Minutes: On a motion by CM Gourley and second by MPT Jewitt, the minutes of the March 19 worksession were approved 4 to 0, with corrections with CM Lofgren abstaining. On a motion by CM Dennison and second by MPT Jewitt, the March 26 budget worksession minutes were approved 5 to 0 with corrections.

Department reports: Mayor Calvo reported that at the last Four Cities Coalition meeting the focus of discussion was development in College Park, especially plans for a major development between College Park Metro Station and Route 1 that includes student housing and a commercial component. The Greenbelt Station development is moving forward with detailed site plans for the apartment complex up for approval. AIMCO's redevelopment of Springhill Lake was reviewed by College Park, which took a stand against current proposal because infrastructure problems have not been adequately addressed. The mayors of Berwyn Heights, College Park and Greenbelt plan to stay in closer touch about this development. Another topic was municipal budgets and tax increases in Greenbelt and New Carrollton. Discussion of homelessness was postponed to the next meeting. Mayor Calvo further reported that there was an armed robbery at the McDonald's earlier that day. Berwyn Heights police pursued the suspect who escaped.

CM Gourley reported that floors and carpets were cleaned in the Town Center and Municipal Building and that repairs were made to the air handler, the Town Center boiler room and junction box. The Town Office is still in the process of getting estimates for new carpeting and painting. MPT Jewitt reported that the Code Director's blackberry is not functioning today. She can be reached by phone or email. CM Dennison reported that preparations for Berwyn Heights Day have moved into high gear; the Maryland Senate has passed legislation to return to a 9 district member school board; the Historical Committee is preparing for the unveiling of the next street marker; and she will meet with the new leadership of the Boys & Girls Club.

CM Lofgren reported that he and Public Works Director Coleman have met with the Boys & Girls Club leadership regarding maintenance of the ball fields; the Public Works crew has put temporary patches on Branchville and Edmonston Roads; and there has been a rash of vandalism at Pop's Park. He also received an e-mail from the Recreation Council requesting help with a number of Berwyn Heights Day preparations. TA Murphy reported that there has been vandalism at the pedestrian bridge, which will cost about $3,000 to repair.

Citizen Comments: CM Dennison received a comment about the raising of police fees and fines and a question about the use of police fees and fines as a revenue stream. Mayor Calvo received a comment about a possible violation of open meeting laws by a Town Committee.

Council Rule 3 – minutes procedures: CM Lofgren said that he merged the more recent minutes procedures outlined in a 2003 Administrative Policy memorandum into an updated Council Rule No. 3. He then explained his annotations. Mayor Calvo proposed rewriting the Council Rule as a unified document and include the relevant parts of the Administrative Memorandum. However, the section on spelling conventions and abbreviations should be a separate attachment, so that changes made there won't require approval by resolution. Clerk Harper was asked to make the requested changes and e-mail them to Council when done.

Retirement plan: TA Murphy provided the Council with additional information on the pension plan. He said that there is $421,000 in the Town's 401-a retirement plan and $463,000 in the 457 retirement plan. If the Town decides to join the State Retirement Plan, all part time employees must be included, except those working less than 500 hours per year. If the Town joins the Plan based on crediting less than full service, the relevant service is the most recent. TA Murphy has also reached out to bond counsels about options for financing entry into the Plan but has not yet heard back. Lastly, he asked if the Council wants to explore setting up its own retirement plan.

Mayor Calvo elaborated that the money set aside in the 401(a) plan can be shifted into the State Retirement Plan with permission from the Internal Revenue Service (IRS), but not the 457 funds. However, if the 401(a) funds are used, the Town could probably not join on the basis of compensating at 1/3 of credit for prior service. Joining at 1/3 of credit for prior service was not estimated in the study but he speculated that it would cost approximately $500,000 and require legislative action by the Maryland Assembly.

Issues to be decided include 1) whether to shift 401(a) funds into the State Retirement Plan; 2) whether to join on the basis of 1/3 or 1/2 of credit for prior service; 3) what to do about retiree health benefits; and 4) how to involve employees in the decision to join a retirement plan. Mayor Calvo added that some municipalities use an “85 Rule”, which allows retirees to remain in their health plan if their age and years of service add up to 85. The Town may want to adopt some mechanism by which employees can stay in the municipal health plan provided they pay for the premium out of pocket. Further, consultation of employees about joining a retirement plan should begin soon. Mayor Calvo believes that having a defined pension benefit plan is needed to prevent more employees from leaving. He would like to have a plan in place by July 1, 2008.

In response to CM Dennison, Mayor Calvo suggested that to pay for joining the State Retirement System, the Town would first need to increase its retirement contributions from 9% to 11.5% and then finance the rest. It would commit a large part of the FY 2009 budget, possibly $40,000 - $60,000, but is doable.

MPT Jewitt agreed that the pension issue must be taken up. However, he believes that the Town cannot afford to pay a pension that is based on more than 1/3 of service. He envisions holding information sessions for Town employees beginning this summer, perhaps with representatives from the State Retirement Agency present, to get their input and then have everyone vote. CM Lofgren said that he supports establishing a retirement plan, especially as the Town currently has few long term employees. CM Gourley agreed that a pension plan should be set up, but suggested the Town might be able to afford giving credit for 1/2 of prior service by using Metroland funds and borrowing from itself.

Lastly, Mayor Calvo expressed concern that long-term employees could leave as soon as the plan is implemented and take the pension with them. The implementation of a pension plan might therefore be linked to a commitment from employees to remain with the Town for a certain period. TA Murphy commented that this may be a reason for the Town to set up their own pension plan. Mayor Calvo replied that he is leaning against it because the Town would assume all the risk. If an officer were to become permanently disabled, for example, it would bankrupt the plan.

CM Lofgren moved to establish a committee to consult with employees about joining the pension plan. MPT Jewitt seconded. The motion passed 5 to 0.

At 8:30 p.m., the Council took a 10 minute break.

5. Code Enforcement (discussed out of order)

Code appeal – 6216 Quebec Place: MPT Jewitt explained that the owner of the rental home is appealing $ 1,400 in code fines that have been attached to the County tax bill as a lien. Of the $1,400, $1,100 are cumulative fines for failure to renew a rental license and $300 are fines for expired vehicle tags.

The appellant explained that she failed to address the violations because she was taking care of a terminally ill father, who lived in a nursing home in Charles County. She did not renew her rental license, due on August 31, 2006, because she intended to sell the house, but was not able to get the tenants to move out until she took legal action to evict them. At this point, all violations have been corrected: the tenants have moved out, the car with expired tags has been removed and the house is on the market.

Mayor Calvo asked questions to confirm that the rental owner received the rental license packet in July and did not take action until after she had received 2 certified letters on September 5, notifying her of a $100 late fee, and on October 11, notifying her of another $100 late fee and $100 fine. In conjunction with the rental license fee of $200 she then owed $500 due to be paid on November 11. On November 7, the owner spoke to the Code Director and explained that she did not plan to renew her license and was trying to get her tenants to move out by December 1. She was given a reprieve and told that no further fines would be imposed unless her tenants did not move out by December 1 Not all tenants moved out by December 1, at which point the owner began legal proceedings to evict. Fining resumed until fines and fees totaled $1,100 and a lien letter was sent to the County on January 29. The rental home was put on the market for sale on January 2.

The owner further confirmed that the car with expired tags belonged to one of her tenants, who disregarded her requests to remove the car. The fines reached $300 when a lien letter was sent to the County on July 29, 2006. Tenants were recruited from the University of Maryland when she began renting the home in 1997 but more recently through referrals. Not all of them paid security deposits when they signed a lease. Screening and monitoring of tenants became difficult when her father fell ill.

MPT Jewitt proposed to follow the recommendation of the Code Director and reduce the fines to $1,000. Mayor Calvo said that he sympathizes with her personal difficulties and understands that the rental license issue was not a priority. However, the owner should have stayed in touch with the Code Director and informed her that she continued to have difficulties in making her tenants move out. The car fines are an earlier problem he would let stand. He also noted that the rental home is still listed as the owner's principal residence, which allows her to take advantage of the homestead tax credit. Therefore he supports only a reduction of the fines to $1,000. CM Lofgren and CM Gourley agreed.

MPT Jewitt moved to reduce the fine to $1,000. CM seconded. The motion passed 4 to 1 with CM Dennison opposed. The appellant commented that even the reduced fines are a financial hardship because the home is up for a tax sale and she no longer receives any income from iy.

1. Mayor (continued)

Commerce Bank agreement revisions. Mayor Calvo highlighted Commerce Bank's latest changes to the agreement. Out of 6 proposed changes, the Council discussed change No. 1 and 3, which makes maintenance of the rights of way along Greenbelt Road and 58^th and 59^th Avenues contingent on the permission by the State Highway Administration (SHA) to install an irrigation system. Council believed that this may be a loop hole that allows Commerce Bank to be relieved of the maintenance obligation and asked that the section be rewritten to specify which areas would not be maintained if SHA does not permit irrigation systems

Council also discussed change No. 6, which limits consultation with the Town regarding the Commerce Bank mural to its pictorial content. However, Commerce Bank agreed to commission a historical portrait by a local artist instead of the mural. CM Dennison moved to add language specifying that the historical portrait can be anywhere in the Town. The motion failed for lack of a second. Council will review the agreement and clarification of Commerce Bank's proposed changes No. 1 and 3 at the next worksession.

At 10:00 p.m. CM Gourley excused himself to leave.

2. Public Safety

Firearms surplussing: Mayor Calvo explained that Chief Murphy outlined 4 options on how to dispose of 8 old pistols, which are no longer needed after all officers received new, state of the art firearms: 1) the Department can keep them as surplus; 2) they can be destroyed; 3) they can be sold to another Maryland police department; and 4) they can be sold to the officers as mementos of their service. Chief Murphy recommended selling them at $125 each to the officers, who have expressed their desire to purchase them. He agrees with the recommendation. CM Dennison suggested it may not be a good idea to sell them to the officers if the Town remains liable for these weapons. MPT Jewitt moved to permit the sale of the surplussed pistols to the officers. CM Lofgren seconded. The motion passed 3 to 0 with CM Dennison abstaining.

3, Public Works

No items were discussed.

4. Administration

Bulletin cover: The Council approved the following items for the cover of the May Bulletin: Berwyn Heights Day event schedule and call for volunteers, Town Budget banner, and jumps for Farwell Park rededication and the Commerce Bank agreement.

6. Parks and Recreation

Student Mock Town Council meeting: CM Dennison reported that she talked to Ms. Wade at Berwyn Heights Elementary School (BHES) who coordinates the preparation for the meeting. She confirmed that April 30 is a suitable date and that the topic to be discussed is recycling. The School has applied for another grant to expand its recycling activities. The participants are members of the Student Council and the Gold Committee. Mayor Calvo suggested that the recycling topic might be narrowed and to pose a dilemma to stir the debate. CM Dennison said that she would talk with Ms. Wade again and ask her to reformulate the topic.

7. Budget

This item was dropped.

8. Executive Session (10:20 p.m – 11:00 p.m)

CM Lofgren moved to go into executive session to discuss the citizen of the year award. CM Dennison seconded. The motion passed 4 to 0. With the selection made, MPT Jewitt moved to end the executive session. CM Dennsion seconded. The motion passed 4 to 0.

The meeting was adjourned at 11:00 p.m.

Kerstin Harper, Town Clerk