Worksession Minutes
April 26, 2010

The meeting was called to order at 7:18 p.m. Present were Mayor Calvo, MPT Lofgren, CMs Ahrens, Dennison and Wilkinson. Also present were TA Murphy, Clerk Harper, and Council candidate Jodie Kulpa-Eddy.

1. Mayor

Agenda: Discussion of an employee's 401 (a) loan was moved into executive session.

Announcements: Staples has obtained bids for painting its store front and will start painting within 2 weeks.

Calendar: The May 10 worksession will focus on finalizing the health insurance section of the FY 2011 budget. The May 17 worksession may be moved as it conflicts with the visit of PGCPS Superintendent Hite to Berwyn Heights Elementary School (BHES).

Minutes: The Council reviewed the minutes. On a motion by CM Wilkinson and second by CM Ahrens, the March 29 budget worksession minutes were approved 5 to 0. On a motion by MPT Lofgren and second by CM Dennison, the April 5 worksession minutes were approved 5 to 0. On a motion by CM Dennison and second by CM Wilkinson, the April 12 budget worksession minutes were approved 5 to 0. The April 14 Town meeting minutes were distributed for approval at the May Town meeting.

Department reports: CM Wilkinson reported that the Administration Department has been busy working on the budget, Berwyn Heights Day and Town Council elections. MPT Lofgren reported that Public Works has been busy with spring cleanup and preparations for Berwyn Heights Day. Yard waste volume was up. CM Dennison reported that plans for Berwyn Heights Day have been finalized and the organizers are hoping for good weather. She went over the itinerary, noting that 4 local bands have been recruited to perform and that prospective Councilmember Jodie Kulpa-Eddy has arranged for H1N1 flu shots to be available. CM Ahrens reported that the Code Department is citing homeowners for still having tree trunks and branches downed in the February snow storms in their yards. Citations for high grass violations are also increasing.

Mayor Calvo reported that a burglary occurred in a home on Seminole Place last night at a time when there was no Berwyn Heights police coverage. It highlights the need to get a 7th officer back on patrol. County Councilmember Eric Olson had a District 3 Town Hall meeting at Parkdale High School, which was well attended. One issue that came up was the opening of an estate sale shop in front of the old Washington Post printing press on Greenbelt Road. Olson is sponsoring legislation to tighten regulations for such establishments. The General Assembly passed legislation that imposes a 10% cap on Park & Planning taxes effective immediately. The legislation will not affect Berwyn Heights residents until next year. However, some jurisdictions in the County have not yet completed their triennial assessment cycle and would now pay taxes based on a 10%, rather than a 30% - 40% increase. This represents a revenue loss of $18 million to Park & Planning, on which Prince George's County relied to fund schools. For this reason, Governor O'Malley may veto the legislation. In a related matter, Prince George's County gave notice of the constant yield tax rates for municipalities and unincorporated areas. It showed that Berwyn Heights had the greatest decline in assessments of all municipalities and will pay 11% less in County taxes and 27% less in Park & Planning taxes in FY 2011.

CM Dennison asked whether there was another burglary on Pontiac Street. Mayor Calvo confirmed this.

Citizen comments: CM Dennison received comments on speed cameras, bike trails, road repairs, policing and the Refuse Collection Ordinance amendments. One resident expressed opposition to the new recycling mandate. MPT Lofgren received an e-mail complaining about bamboo being picked up with general trash rather than yard waste. The resident was informed that this was done in accordance with County disposal rules, which requires that bamboo goes to the landfill. Further, a resident complained about Public Works not picking up pressured containers, such as helium tanks. He was likewise told that they are not picked up because neither the County landfill nor the recycling center accepts them. They must be returned to the point of purchase.

CM Wilkinson received comments on sidewalks, speed cameras, the hiring of a new police chief and once-a-week trash collection. Mayor Calvo received comments on the former problem properties improving after being sold to new owners in foreclosure or bank sales. He also received comments on the way the Code Department interfaces with residents, speeding and pawn shops. CM Ahrens received a comment about College Park's Smart-leaf mulch not being available to Berwyn Heights residents.

Four Cities agenda: Updates on the construction permit for Greenbelt Middle School, as well as on the Metroland and East Campus developments were requested. Invitations for the May 17 meeting with Superintendent Hite at Berwyn Heights Elementary School should be extended to the Four Cities representatives. The Council's worksession scheduled for May 17 will be rescheduled to May 18 or 24.

Citizen comments (out of order): Mayor Calvo said that the Boys & Girls Club T-ball enrollment is down because of registration fee increases. CM Wilkinson said that the fee increases were based on increases charged by Prince George's County Boys & Girls Club. This resulted in just two T-ball teams being fielded instead of the previous four.

2. Administration

Town Center rental extension request: CM Wilkinson explained that with MPT Lofgren absent during the April 5 worksession, the Council was stalemated on whether to grant an extension for a Town Center rental, which must normally end by 10 p.m. He proposed a compromise, which would extend the rental hours until 11 p.m. but music would have to end at 10 p.m. TA Murphy reported that the applicant has agreed to those terms.

Mayor Calvo said he and CM Dennison opposed extending the hours and he remains opposed. He has again spoken to the residents next to the Town Center about this, who reiterated that they are happy with the 10 p.m. curfew. In 2008, the Council decided to curtail the rental hours because there had been many problems with late night parties, especially when a DJ was present and alcohol was served. Since the change in policy went into effect, the problems have mostly gone away. He thinks that residents who want to host a late-night party should look for a different facility.

CM Ahrens said that since the adoption of the stricter rental policy, use of the Town Center has gone down. He believes it is a bad policy. The Town should have a venue where residents can gather and have a good time on a Saturday night. He remains in favor of extending the rental hours for this event. CM Wilkinson said he, too, remains in favor of granting the extension. He does not anticipate any problems because this would be a family event with many children in attendance. CM Dennison said that she remains opposed. She questioned whether a baby shower with children present needs to go until 11:00 p.m. She also does not like to break with the precedent that has been set of generally denying extension requests.

MPT Lofgren said that, in his long service on the Town Council, he has become intimately familiar with the problems of the Town Center. He had the north windows blocked off so that party noise would not affect the neighbors so much. He recalled that the building used to house the fire department. Sirens would go off at all hours, while the volunteer fire fighters would play horseshoes in the back with the radio on. He believes that this particular event will not be a problem and moved to extend the hours to 11:00 p.m. with music ending at 10:00 p.m. CM Wilkinson seconded. The motion passed 3 to 2, with Mayor Calvo and CM Dennison opposed.

Employee appreciation lunch date (postponed)

Nothing was discussed under 3. Public Safety, 4. Public Works or 5. Code Compliance.

6. Parks and Recreation

Volunteer appreciation dinner: The date for the volunteer dinner was set for June 16.

7. Budget Discussion

TA Murphy reported that the memorandum polling employees on their preferences about health insurance options went out on April 23. CM Wilkinson said that the Council was promised it would get to review the memo before it went out. Mayor Calvo said that it was the intention to have the Council review it but time ran out. He takes responsibility for authorizing TA Murphy to distribute the memo without consultation of Council.

TA Murphy explained the health insurance options which employees are asked to rate according to preference. Each options shows how much the employee would have to contribute.

Option 1 A continues the current CareFirst Opt-Out plan (most expensive, employees share cost of premium increases)
Option 1 B continues the current CareFirst Opt-Out plan, with employee paying $600 of claims out-of-pocket (less expensive than 1 A, due to reduced funding of HRA Fund)
Option 2 A switches to CareFirst HMO, a closed network plan (less expensive than Option 1 B, employee shares cost)
Option 2 B switches to CareFirst HMO, with employee paying $600 of claims out-of-pocket. (less expensive than 2 B due to reduced funding to HRA fund)
Option 3 switches to Kaiser Permanente HMO (least expensive, with employee also sharing in savings in the form of a reimbursement)

TA Murphy continued that he has offered to meet with employees one on one if they need an explanation. He also plans to have a group meeting with Public Works in the Town Office followed by a vote. So far he has received 3 out of 17 responses from eligible employees. Responses are to be returned in sealed envelopes. Mayor Calvo added that it is important that the ballot is cast privately so as to ensure that employees are free to choose the option they think is best for them.

CM Ahrens asked how the poll would be scored, as there are only 3 ratings for 5 options. TA Murphy said that only the top 3 will be considered. Mayor Calvo added that it will be more important to score Options 1 3 rather than the A or B variants. He believes it will be evident quickly whether employees consider it more important to save money or maintain their current insurance plan. MPT Lofgren said that it will be helpful for TA Murphy to meet with Public Works employees to explain this complicated issue. He also said that the outcome of the poll is likely to favor single male employees, because they outnumber female employees. However, it is usually women who take on responsibility for a family's health care and would carry most of the burden of switching to another insurance plan.

Mayor Calvo said that the poll asks employees to place a value on their preferred insurance plan. While all options will save the Town the same amount of money, approximately $18,000, employees expenditures vary with the option. They would have to pay a greater share of premiums to keep their current plan and doctors, while receiving a re-reimbursement for switching to Kaiser Permanente, which would restrict their options.

In terms of the budget process, the results of the poll and FY 2011 health insurance rates should be available when the Council meets again on May 10 to make a decision on how much to budget for health insurance. This probably entails picking the insurance carrier, as well. Assuming that $18,000 can be saved on health insurance, this would still leave approximately $40,000 to be found to put the 8th police officer position back into the budget. Mayor Calvo said he would be comfortable taking this sum from the surplus. For FY 2012, additional resources would become available. The bond will be paid off, freeing up $83,000. Another $29,000 in additional real property taxes revenues would come due from the homestead tax credit being rolled up. There may also be a slight increase in income tax receipts if the economy rebounds. However, he hopes to preserve most of the $83,000 in savings for a contribution to the infrastructure improvement fund. With a couple more contributions in this amount, the Town may actually be able to pay for the Seminole/Ruatan Street project.

CM Wilkinson asked if some of this money would not be needed to purchase a new trash truck. Mayor Calvo said that there will be enough money in the vehicle replacement fund next year to buy it. CM Wilkinson asked how big the surplus is. TA Murphy said the surplus will amount to $437,000 after taking out $120,000 to pay for the dump truck and $18,000 for making the vehicle replacement fund whole. Mayor Calvo said that he is prepared take an additional $40,000 a year from surplus for the next 3 years to help fund the 8th officer position, or $120,000 in total. He thinks the Town can afford it and it is worth it because it gives the Town reliable 24 hour police protection.

Mayor Calvo continued that funding the 8th officer and infrastructure are the big challenges. While he thinks that the Town can get through this assessment cycle without raising the real property tax rate, infrastructure needs may warrant that consideration. However, a tax increase should not be considered until FY 2012, when the homestead tax credit will have run out and real property taxes will be flat. He strongly opposes raising the real property tax rate for FY 2011.

At 9:02 CM Ahrens left the meeting with an apology.

CM Wilkinson said that pulling $40,000 from surplus for 3 years would leave less money for the Seminole/Ruatan Street project, which the Town had hoped to start next year before Highway User Revenues were cut. In the long-term, a tax rate increase may be needed to fund infrastructure and the 8th officer. Raising the real property tax rate to 50¢ per $100 of assessed value would only amount to approximately $60 more per year. This may not be so onerous when considering that Berwyn Heights taxes are among the lowest in the County. MPT Lofgren said that the properties adjoining his property have been vacant for a long time because the taxes are too high. Mayor Calvo said that an additional $60 per year would be on top of a tax increase of between 8% -10% next year, as the homestead tax credit continues to phase in and the cost of living goes up. Berwyn Heights residents already pay 1/3 more in taxes than residents of the unincorporated areas of Prince George's County. For some people that puts owning property in Berwyn Heights out of reach. CM Dennison said that raising taxes would make it more difficult for people already struggling to make ends meet.

CM Wilkinson asked if skipping the purchase of a police vehicle next year is still on the table. This would save approximately $30,000. Mayor Calvo said that he is still considering it, but the following year the Town should resume purchasing a new police vehicle every year. The money saved in FY 2011 could be shifted to Public Works to replace snow plow equipment, which wore out this winter. He asked if there is a motion to shift police vehicle funds to Public Works for snow removal equipment with the understanding that the funding reverts to police vehicles the following year. CM Wilkinson so moved. CM Dennison seconded. The motion passed 4 to 0.

Mayor Calvo said that if the Council is comfortable with funding the 8th police officer from surplus, he would authorize Chief Murphy to search for 2 new officers. His search to replace officer Unger has turned up several promising applicants. The second hire would replace the 7th police officer who is also leaving. He asked for a motion to take $40,000 from surplus to help fund the 8th officer position. CM Wilkinson so moved. MPT Lofgren seconded. The motion passed 4 to 0.

8. Executive Session (9:20 p.m. to 9:34 p.m.)

On a motion by CM Wilkinson and second by CM Dennison, the Council went into an executive session to discuss a personnel matter. With the matter discussed, CM Wilkinson moved and CM Dennison seconded to end the executive session.

The meeting was adjourned at 9:34 p.m.