TOWN OF BETHANY BEACH TOWN COUNCIL REGULAR MEETING JANUARY 19, 2018 MINUTES
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1 TOWN OF BETHANY BEACH TOWN COUNCIL REGULAR MEETING JANUARY 19, 2018 MINUTES The Bethany Beach Town Council held a regular meeting at 2:00 p.m. on January 19, 2018 in the Town Meeting Room, 214 Garfield Parkway, Bethany Beach, DE Members present for the meeting were: Jack Gordon, Mayor, who presided; Lew Killmer; Jerry Morris; Rosemary Hardiman; and Patrick Sheplee. (Bruce Frye and Joseph Healy were excused). Also present were: Cliff Graviet, Town Manager; Lisa Kail, Administrative Assistant/Town Clerk; and interested members of the public. Approval of the Agenda Mr. Hardiman made a motion to approve the agenda. Seconded by Mr. Sheplee, the motion was unanimously approved. Approval of minutes of regular meeting held on November 17, 2017 Ms. Hardiman made a motion to approve the minutes as previously amended. The motion was seconded by Mr. Morris and unanimously approved. Approval of minutes of executive session minutes held on November 17, 2017 Ms. Hardiman made a motion to approve the minutes. The motion was seconded by Mr. Morris and unanimously approved. Approval of minutes of special meeting/workshop held on December 12, 2017 Ms. Hardiman made a motion to approve the minutes as previously amended. Seconded by Mr. Morris, the motion was unanimously approved. Approval of Financial Report Mr. Morris advised that this report covers the fiscal year-to-date performance through the month of December. We are nine months into the fiscal year This year is going well. The budget is as projected and is right on schedule. Operation Budget Revenues The Town collected 102.8% of the budgeted revenue compared to 99.8% at this time last year. Operation Budget Expenses The Town expended 75.1% of its budgeted expenses compared to 77.7% expended this time last year. Recognizing that this report is subject to audit, Mr. Morris respectfully moved that the Council accept and approve this unaudited report. Ms. Hardiman seconded the motion and it was unanimously approved. 1
2 Approval of Tax Adjustment List #2 Mr. Morris made a motion to approve Tax Adjustment List #2 as presented. Mr. Sheplee seconded the motion and it was unanimously approved. Announcements/Recognition of Visitors and Public Comment There were no comments. Report from Audit Committee Mr. Chuck Peterson read the following prepared statement into the record. The Audit Committee met this morning to discuss the Internal Audit from last year, Internal Controls and the Audit Plan for the current year. The Internal Audit is performed by Mr. Phil Rossi, who presented a report on his activities during calendar year These activities include opening and reviewing bank statements, reviewing all bank transfers, examining payments made, and ensuring that Town procedures are properly documented and followed. He reported on 44 reviews with no significant findings The specific focus of the internal audit for calendar year 2017 was grants, specifically the approval process, proper recording of allowable expenditures, and cash management. The State recently reviewed our grants records and found everything to be in order. The committee discussed, revised and approved the Internal Audit Plan for calendar year The Internal Auditor was asked to place particular emphasis on infrastructure projects. The next Audit Committee meetings will be with the External Auditors and are planned for May 11, 2018 and July 13, Report from Budget and Finance Committee Mr. Morris advised that the Budget & Finance Committee met on Thursday, January 18, 2018 to review the third quarter of the current year and to discuss the proposed budget for fiscal year 2019, which will begin on April 1, The results of the first three quarters of the current year are very good. Revenues should end the year around $750,000 over budget, mainly from Real Estate Transfer Taxes and building permit revenues far exceeding expectations. Operating costs should end the year a few percent under budget. The first draft of the new budget for 2019 was discussed in detail. Town-wide revenues are currently budgeted at $9.6 million, operating costs are $7.9 million and the capital and debt budget is $1.3 million. This first draft of the budget contained no changes to taxes rates or fees. 2
3 The Committee will meet again on February 15, 2018 to discuss the second draft of the budget, including a discussion of water fees. Report from the Town Manager Mr. Graviet provided the following report: ASSAWOMAN CANAL PATH DNREC (Delaware Department of Natural Resources and Environmental Control) has held multiple public hearings (some were actually held in our Town Hall) on this project. Possibly, as it gets closer, we can ask that DNREC do another presentation in Town Hall for our citizens. At this stage there is little citizen or NIMBY protest can do about this. The state owns 50 on each side of the Assawoman Canal and they have elected to build a multiuse path on the eastern side of the Assawoman in Bethany Beach, to pick up the trail they already created on the western side over the last few years. One of the hang-ups with the whole plan was how people using the trail were going to segue from one side of the canal to the other without having to cross Route 26. Apparently that issue is resolved. It now appears that people will be using an underpass for the transition. This moves the project forward with work in Town to come probably late 2018 or early 2019 if state funding is available. DINKER COTTAGE Although it may seem that there is not much progress at the Dinker Cottage, actually much of what was planned is near completion on the structure itself. The building s electrical systems have been completely updated and modernized. The HVAC system is ready to install with ductwork installed in the crawlspace and the outside air handlers waiting for the construction of the rear steps and deck, which will be done in the next few weeks. Structural issues that need to be addressed in the attic require that an entryway be created in the soffit in order to get the required lumber into the space. That work is underway and is near completion. Accommodation, both structural and electrical, have been done for the mini-splits that will provide heat and air to the second floor. A design has been chosen for the front steps and work will begin on them shortly. Melinda Linde is finishing design work for the Dinker complex and planting is planned as weather permits. The some of the original plaster walls were cracked in the move of the house. As soon as we have the whole house heated we will repair those cracks. The Town will have the house complete and ready by spring. But I believe CHAC is still in the very early stages of determining the who, what, when, and where of how the house will be presented to the public and the what and how of what will be displayed. 3
4 FIRE AND ICE The Bethany-Fenwick Chamber of Commerce is planning a three-day event at the end of this month. It will involve a skating rink on Hollywood Street and ice sculpting throughout our downtown business district. This is the biggest off-season event the Chamber has been involved with that I can recall. I hope it is well attended and there is more of an interest with the Chamber and the business community in really working together to create and sponsor bigger and better off season events. HOLIDAYS The Town had another great Holiday season with multiple seasonal events that all went off without any problems or issues. Hats off to staff. JANUARY 3/4 SNOWSTORM AND SNOW REMOVAL As always a large snowfall (especially) if it is accompanied by wind poses a large problem for removal. Public Works does the best it can but when there is so much snow there is nowhere to put or push the snow. The simple plowing of snow depending on conditions piles snow along the side of the plow indiscriminately blocking driveways, but there is no way with literally thousands of driveway openings in the Town that our crews can work to do anything but simply work to keep the streets open. This storm also brought home the fact that many business owners think it is the Town s responsibility to shovel sidewalks in front of their businesses. It is not, it is the property/business owners responsibly to do this and we are noticing them that this is the case. (First Reading) An Ordinance Amending Chapter 223, Beach, of the Bethany Beach Town Code to Add a New Article VIII Relating to Restrictions on the Use of Shading Devices on the Beach Synopsis This ordinance amends Chapter 223 by adding Article VIII relating to restrictions on the use of shading devices and other fixtures on the beach. Ms. Hardiman advised that this proposed ordinance adds a new article relating to restrictions on the use of shading devices on the beach. Standard size umbrellas and baby tents are permitted. Definitions are provided in the ordinance for both. All other shading devices are prohibited. The proposal also adds violations and penalties. This will be presented for adoption next month. (First Reading) An Ordinance to Amend Section 217 of the Bethany Beach Town Code to Clarify that Liquor Stores are Prohibited from Permitting On-Premises Consumption of Alcoholic Liquors Synopsis This ordinance amends Chapter 217 (Alcoholic Beverages) by inserting a definition of Liquor Store and by clarifying that liquor stores are prohibited to allow on-premises consumption of 4
5 alcoholic liquor since it is not deemed to be a clearly integral and harmonious component of any use permitted in the Town of Bethany Beach. Mr. Killmer read the title and synopsis of the ordinance. He advised that this prevents liquor stores from allowing on premise consumption of alcohol. The Planning and Zoning Commission will be reviewing a zoning ordinance similar to this one at tomorrow s meeting. Mr. Patrick McGuire, resident, asked why this was an issue. Was it complaint driven? Mr. Graviet explained that this ordinance prohibits tastings of any sort including home brews, wine tastings, etc. Mr. Killmer advised that this is not being considered as a result of a complaint. It is just an attempt to be proactive. This ordinance will be presented for adoption next month. Discussion, Consideration, and Possible Vote on Approving a Contract Submitted by George & Lynch, Inc. for the Atlantic Avenue, Phase I, Improvement Plan for the Amount of $1,337, Mr. Graviet asked for a motion to approve a contract submitted by George & Lynch, Inc. for the Atlantic Avenue, Phase I, Improvement Plan for the amount of $1,337, He noted that three bids were received for this project and George & Lynch, Inc. was the low bidder and they met all bidding requirements. Mr. Killmer so moved. Ms. Hardiman seconded the motion and it was unanimously approved. Discussion, Consideration, and Possible Vote Regarding the Reconstruction of Cedarwood Street with Pervious Pavement and a Multi-Use Pathway, Connecting South Pennsylvania Avenue to the South Atlantic Streetscape Project Mr. Graviet advised that he is proposing an ad-on to the Atlantic Streetscape Project that would provide pervious pavement and a multi-use path similar to South Atlantic Avenue. This will create a safe bicycle and pedestrian thoroughfare from the southern limits of Bethany Beach on Pennsylvania Avenue to boardwalk business areas. Engineering costs are estimated at $350,000, but as an add-on to the previous contact awarded, George & Lynch, Inc. would do the job for $200,000. Those monies will come from current fiscal year transfer tax received in excess of the budgeted amount. As can be seen on the attached drawing, property owners will not be affected on Cedarwood Street. Everything will be constructed in the Town's right-of-way. This is presented today and informational only. The add-on of $200,000 from George & Lynch, Inc. will be presented as an agenda item next month. Ms. Joan Thomas, property owner, was recognized. She explained that she lives on Ashwood Street and that street floods much more that Cedarwood Street. She felt that if money was going to be spent on Cedarwood that Ashwood should be considered as well. Mr. Graviet advised that the driver for Cedarwood Street is the pedestrian walkway. However, he offered to look into her request. 5
6 Discussion, Consideration, and Possible Vote on a Supplement to the FY 2018 General Fund Budget of $1,350,000 for the South Atlantic Avenue Streetscape Project Mr. Morris made a motion to approve a supplement to the FY 2018 General Fund Budget of $1,350,000 for the South Atlantic Avenue Streetscape Project. Ms. Hardiman seconded the motion and it was unanimously approved. Discussion, Consideration, and Possible Vote on Approving a Contract Submitted by Paul s Paving for the Installation of a Water Main in the Northern Commercial Alley of Garfield Parkway for the Amount of $54, Mr. Graviet advised that the Town was recently approached by the property owner and developer of the Ropewalk Restaurant. The new restaurant will require a fire suppression system. This system requires a six-inch water main. The Town s existing main is only four inches. The developer has offered to pay for the costs associated with upgrading the main from Atlantic Ave. to his property line. The developer s cost will be approximately one-third of the total cost. After discussion with the water department, it was recommended to upgrade to an eight-inch main along the entire alley at this time. This would enable the Town to take advantage of the savings associated with the developer paying for 1/3 of the cost. He advised that three bids were received for the project and Paul s Paving is the low bidder. There will also be a cost of $24, for the purchase of needed hardware. Because of past problems associated with faulty parts, the water department has chosen to handpick what they will need. This would bring the estimated total cost of the project to $79,677.77, of which the developer will pay approximately 1/3. Mr. Sheplee made a motion to approve the contract submitted by Paul s Paving for the installation of a water main in the northern commercial alley of Garfield Parkway for the amount of $54, to replace the existing four-inch water main with a new eight-inch water main. Ms. Hardiman seconded the motion. Mr. Killmer requested that the motion be amended to include the fact that the developer will pay one-third of the project s total cost. Mr. Sheplee amended his motion to include this. Ms. Hardiman seconded the revised motion. Mr. Morris asked whether it was the responsibility of the developer to pay 1/3 of the cost or whether it is the responsibility of the Town to provide the required infrastructure. Mr. Graviet explained that the Town s individual property/business owners have the responsibility to pay for connections to the main, not construction of the actual main. He added that he would have to check with counsel regarding whether the Town is legally obligated to upgrade the water main. However, if the Town doesn t upgrade the main and other older buildings along the alley are torn down and rebuilt, he felt sure that those owners/developers would be after the Town to upgrade its water main to accommodate the Fire Marshall s requirements for water suppressant systems. Mr. Tracy Mulligan, property owner, was recognized. Mr. Mulligan raised concerns about the process with this agenda item. He felt that the developer is going to pay the Town to do something that benefits him. He explained that the process, in his opinion, should have included a formal acceptance of the developer s offer separate from the approval to go ahead 6
7 with construction. That was not done. The offer, acceptance and total project cost were all included in one single motion. Mr. John Gaughan, resident and member of the Planning Commission, asked if a new business owner would have to pay a pro rata amount of the remaining cost to use the new eight-inch main. Mr. Graviet advised that would not be necessary. The new infrastructure would already be in place. As with all new residential and business construction and reconstruction, owners pay an impact fee to buy into the infrastructure. Mayor Gordon asked for a vote on the pending motion. The motion was unanimously approved. Consider and vote on a motion to go into Executive Session pursuant to 29 De. C (b)(6) for discussion of documents excluded from the definition of public record because public discussion would disclose the contents of such documents Mayor Gordon asked for a motion to go into Executive Session. Mr. Killmer so moved. Ms. Hardiman seconded the motion and it was unanimously approved. Mayor Gordon recessed the regular meeting at 2:51 p.m. Mayor Gordon called the Town council meeting back in session at 3:29 PM. There was no further business to discuss. Ms. Hardiman made a motion to adjourn. It was seconded by Mr. Sheplee and unanimously approved. The meeting was closed by the Mayor at 3:33 PM. Respectfully submitted: Lisa A. Kail, MMC Town Clerk/Administrative Assistant 7
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