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APPROVED: Meeting No. 8-08 |
MAYOR AND COUNCIL
ROCKVILLE, MARYLAND
Meeting No. 04-08
February 11, 2008
The Mayor and Council of Rockville convened at 7:05 p.m. on Monday, February 11, 2008, in the Mayor and Council Chambers, Rockville City Hall, 111 Maryland Avenue, Rockville, Maryland.
PRESENT | |
Mayor Susan R. Hoffmann | |
Councilmember John B. Britton | Councilmember Piotr Gajewski |
Councilmember Phyllis R. Marcuccio | Councilmember Anne M. Robbins |
In attendance: City Manager Scott Ullery, City Attorney Paul T. Glasgow, and City Clerk Claire Funkhouser.
Re: Opening Remarks
Mayor Hoffmann said that she would entertain a motion to televise this evening’s worksession. Upon motion by Councilmember Marcuccio, duly seconded by Councilmember Robbins, and passed, with Mayor Hoffmann and Councilmembers Britton, Marcuccio and Robbins voting, “aye,” and Councilmember Gajewski abstaining, the Mayor and Council voted to reinstate the televising of worksessions.
After the vote was taken, the Mayor welcomed the viewing audience. She explained that there had been a bit of business before the cameras had begun rolling and that the Mayor and Council had voted to approve the reinstatement of televising worksessions. The Mayor also extended greetings to the fourth graders she had visited with today at Christ Episcopal School and Maryvale Elementary School, especially Hannah, who had asked for a special greeting.
In comments on the vote on televising the worksessions that had been taken, Councilmember Britton said that his rationale for originally voting against televising the worksessions, which had taken place at the Mayor and Council’s retreat last month, was that he wanted to establish a venue with a less formal structure where ideas could be vetted openly and freely. Councilmember Britton said that, too often, he sees a leap to act before all of the facts are known and opinions are vetted so he thought that a setting that is more give and take could be beneficial. Also, he said he felt there could be some grandstanding when the meetings are televised. Councilmember Britton stressed that it was always intended that the meetings remain open, just not televised. He thanked Jacquie Kubin for her thoughtful email on this subject, which had been sent to the Mayor and Council earlier today.
In lieu of the plans now not to televise worksessions, Councilmember Britton suggested quarterly retreats similar to the one held in January to give the Mayor and Council an opportunity to have a fruitful discussion, which would be public, but not televised. Councilmember Britton also noted the recent public controversy about the way in which appointments are made, saying he was stunned that people in the D.C. area would find the City ’s process, where the Mayor puts nominees on the agenda for approval by the entire Council as unusual or surprising.
Councilmember Robbins said that she felt that people now expected for all of the meetings of the Mayor and Council to now be televised. She, too, spoke of the recent public controversy related to appointments saying that her experience with Mayor Krasnow regarding such appointments had been a collegial one, with the Mayor and Council having the opportunity to interview candidates for the Planning Commission. She said she respected the Mayor’s role, but that the City’s form of government was different from the County’s where the Executive would make an appointment. Councilmember Robbins also cited the Mayor and Council liaison process instituted under Mayor Giammo. In returning to the topic of televising worksessions, Councilmember Robbins said she was happy to revert to televising them and that the retreat, although public, was perhaps not the best venue for discussing some things.
Councilmember Marcuccio said her main interest in considering not televising worksessions was her desire to get to work, but that in thinking about it, the review that would be available in any notes, etc., is not thorough enough so an audiotape would be the minimum she would need to review a topic. She said she was delighted to have the worksessions televised.
Councilmember Gajewski noted that the meeting had started over thirty minutes ago and the Mayor and Council had not even begun the agenda. He said he felt that this was exactly what the Mayor and Council had been trying to avoid by turning the cameras off. He wondered if there might be a possibility of some sessions without cameras. Otherwise, all that changed was the configuration of the furniture. He also said that he would propose opening up all meetings to Citizens’ Forum.
Mayor Hoffmann said that she hoped that, despite televising the meeting, that the discussion would be free flowing and creative, stressing that the purpose of a worksession is to deliberate and discuss certain subjects at length.
Councilmember Gajewski then moved that there be a Citizens’ Forum at every meeting, but the motion died for lack of a second. The discussion of the Mayor and Council then moved to items listed on the published agenda.
Re: Agenda Review
City Manager Scott Ullery said that he would like to switch the placement of Items 6 and 7 on the agenda so that the amendment to the FY 2008 budget would occur immediately after the FY 2008 Quarterly Report.
Re: Consent Agenda
Councilmember Marcuccio expressed her concern that the City had not had a good experience with some of the contracts that had been awarded, citing what she believed was shoddy work on sidewalks that had been done in her area. Mr. Ullery asked Craig Simoneau, Director of Public Works, to address Councilmember Marcuccio’s comments. Mr. Simoneau said that he was unaware if there had been any work on sidewalks that could be described as shoddy, but that there was insurance and contract management in place if any problems arose. In response, Councilmember Marcuccio cited comments that had been made previously by Mr. Simoneau about gaps in the sidewalks, etc. Mr. Simoneau explained that he was referring to areas where work needed to be done, especially due to damage caused by tree roots, not areas where work had been completed. He said that one of the reasons the City likes to have several contractors respond to a bid such as this one because, if a workmanship problem does arise, the City would move to one of the other contractors to do the work.
Upon motion by Councilmember Marcuccio, duly seconded by Councilmember Robbins, and unanimously passed, the following agenda items, A through C were approved:
(A) Award of Bid #40-08
To: Sagres Construction Corporation
Of: Alexandria, Virginia
In the amount of $863,950
For: Construction of the Lewis Avenue Water Main Upgrade(B) Award of Bid #43-08
To Olney Masonry, Corporation
In an amount: Not to exceed $178,220
For construction, repair, and maintenance of various types of brick sidewalks
and roadways within the City(C) Award of Contract Modification Award of Bid #42-08
To: Romano Concrete Construction
Of: Laurel, Maryland
and
To: Olney Masonry Corporation
Of: Beltsville, Maryland
and
To: D&F Construction, Inc. of Forestville,
In an aggregate amount of: Not to exceed $2,000,000
For: Requirements contract for construction, repair and maintenance of
concrete sidewalks, curbs, driveway aprons and miscellaneous construction
Re: Presentation on the City's water system
City Manager Scott Ullery thanked the Mayor and Council for touring the City’s water plant over the last few days. Mr. Ullery said that 2008 marked the 50th Anniversary of the construction of the Water Plant. Mr. Ullery commented that the subject of the briefing this evening was indicative of a problem confronting water authorities at both a local and a national level. He cited an article in the Washington Post to that effect. The City Manager then introduced Craig Simoneau, the Director of Public Works to begin the staff presentation.
Mr. Simoneau said that tonight’s topic represents a very serious situation that will require the commitment of a number of resources to address impending problems with Rockville’s Water System. Mr. Simoneau said that the purpose of the briefing was to discuss issues impacting the City’s Water System Infrastructure in terms of increasing stringent federal water regulations, aging infrastructure and degrading pipe conditions. The degrading pipe conditions impact fire flow, pipe breaks, and water quality. Mr. Simoneau said that staff had prepared an infrastructure plan to address issues related to upgrades to the Water Treatment Plant and replacement of water lines over fifteen years. Mr. Simoneau said that the City Charter designates the Mayor and Council as the City’s Water and Sewer Board with the authority to construct and maintain an adequate water system and water plant, including setting fees and borrowing money when needed to cover costs. Mr. Simoneau also tied the presentation to the Mayor and Council’s new vision areas for 2008-2009.
Mr. Simoneau said that the purpose of the Public Water System is to provide water for domestic and commercial uses such as drinking, washing, laundering, watering lawns as well as fire suppression. He stressed that Rockville’s aging infrastructure is not unique but a national issue. Locally, other systems, notably WSSC are also grappling with the need to make necessary updates. Since some of Rockville is served by WSSC rather than the City’s system, the crisis will affect all of the City’s citizens.
Chief of Engineering Susan Strauss described the City’s water treatment plant, which the members of the Mayor and Council had visited. Ms. Straus reviewed the history of studies that had impacted the water plant and also led to improvements in terms of increasing capacity since the 1960’s, stressing those that had been implemented between 1993 and 2006. Over that period, the City put in approximately $13,500,000 in the Capital Improvement Projects to maintain and improve the current system. The water plant now faces significant challenges related to more stringent regulations from the Environmental Protection Agency (EPA) in addition to aging components, power outages and anticipation of future capacity. Ms. Straus then highlighted some of the regulatory changes at both the national and state level. The situation at the Water Treatment Plan has been the subject of a recent study with two phases. Phase 1, which concentrated on evaluating regulatory compliance, solids handling, and assessing plant capacity was completed in June 2007. Phase B will be completed in the fall of 2008. This part of the study focuses on the specifics of the needs and costs associated with the impacts of future demand and necessary upgrades as described.
The next topic was an overview of the City’s water distribution system including all of the statistics as to number of residents served, miles of pipes, fire hydrants, etc. The number so miles of piping increased over the years, with a change in the material used for the pipes in the mid 1970s. The presentation included a decade-by-decade look at the miles of pipes added from the 1940s until present.
An improvement to the water distribution system already underway has been the replacement of the individual water meters, which is scheduled to be completed by Fall 2009. It is anticipated that the updated meters will be much more accurate. Residents’ water bills may rise as a result. Another area where some improvements have been made has been the removal or rehabilitation of water tanks. A pump station, the Glen Mill Pump Station, was also constructed to boost water volume. However, it has not yet routinely been operated so new CIP projects are planned to resolve some operational issues related to hydraulic surge suppression and air release valves.
Over the years, the City has conducted several studies to look at water distribution, both city-wide and in specific areas, such as the new developments of Fallsgrove, Twinbrook Station, and Town Square as well as Lincoln Park. Current challenges to the water distribution system are an increased frequency of pipe breaks, water quality tuberculation, and restricted flow tuberculation. Water line breaks due to the aging pipes in the water distribution system have been increasing, with last year seeing historic high numbers for both the City and WSSC. Some of the breaks have occurred on busy streets such as West Montgomery Avenue and Rockville Pike, resulting in significant disruptions to service and traffic.
In terms of the affects of tuberculation, staff showed pipes that had internal corrosion caused by water reacting with metal in unlined pipe. Tuberculation not only affects flow, but also creates discoloration in the water, decreases chlorine in the water, and reduces fire flow. A study conducted in 2008 regarding issues related to flow conducted tests on the current system, projected water demands up to 2030, recommended improvements and developed the Water System Master Plan. At this time, Rockville has 1,369 fire hydrants. A total of 259 have less than optimal flow. The City has worked with Montgomery County Fire and Rescue Services (MCFR) on this issue in terms of coordinating priorities and improvements to the system.
In conclusion, Mr. Simoneau said that staff is recommending the following:
In terms of next steps, staff will present funding and rate recommendations to the Mayor and council, conduct public outreach, and continue to coordinate with MCFR. Phase B of the Water Treatment Plant Study will be completed and the 2008 Water Distribution Master Plan will be finalized.
At the end of the presentation, Mr. Ullery thanked the Mayor and Council for their attention. He said he knew that such an undertaking would require not only material resources, but also significant thought to the public relations aspect due to several factors, including the possibility of an increase in rates as new water meters come into use, the issue of fees to cover the work on upgrading the pipes, and the concerns about fire flow in certain areas.
Mayor Hoffmann thanked staff for the presentation. She said that she thought that the position the current Mayor and Council found themselves in was akin to that of the Mayor and Council in 1958 who had to take responsibility for providing adequate resources which laid the foundation for the current system.
Councilmember Marcuccio thanked staff for the tour of the City’s Water Plant, which she said she found to be very enlightening. She asked how the City tests for cryptosporidia. Ms. Straus said it is looked at by examining raw water in the Potomac. Mr. Simoneau said that the City had just stared testing for this. Councilmember Marcuccio asked if there was any testing of the water in the water tanks and Ms. Straus responded that Rockville had been doing that for 5 to 10 years and was now in the process of doing things a bit differently. There was additional discussion about other means of testing the pipes.
Councilmember Gajewski asked if this situation was similar to that of WSSC and Mr. Simoneau said it was. Mr. Gajewski also asked if any WSSC customers in Rockville would be charged for the upgrades to Rockville’s system and Mr. Simoneau said they would not.
There was some discussion about the role of the EPA in mandating more stringent regulations and the rate at which pipes are scheduled to be replaced. Mayor Hoffmann commented that it was possible that things could go faster subject to the availability of resources to cover the costs. Mr. Ullery said that the effect of the funding needed at the recommended level would impact both the CIP for the work of the replacement of the pipes themselves and in the Operating Fund for staff to oversee the construction and maintenance associated with the project.
Re: FY2008 Second Quarter Budget Review
Budget Officer Stacey Tate summarized the revenues and expenditures for the second quarter of FY 2008. Ms. Tate said that, in terms of revenue, the City had experienced an increase in revenue from income taxes of approximately $700,000, while experiencing a decrease in revenue from highway user fees and interest income. A significant transfer to the parking fund from the income in revenue was included in the proposed budget amendment to compensate for the shortfall in the parking fund due to not charging for parking in the garage up to now. Ms. Tate said that the revenue from speed camera fines continues to be a substantial source in income, with the City handing out approximately 10,000 tickets per month. Another finding is that Redgate Golf Course continues to stay on target with its revenue and expenditure projections.
Councilmember Britton asked about uses of the city-wide contingency fund. Ms. Tate used the example of extra money for snow and ice removal or a one-time study that needs to be conducted. Also, the debt shown for the enterprise funds is shown within those funds while other debt, which is related to the General Fund, shows up there. Councilmember Britton also asked about what revenue from the speed cameras could be used for and City Manager Ullery said that the uses were very restricted to pedestrian safety measures, such as sidewalks and lighting.
Councilmember Marcuccio asked where the bond measures for the refuse and recycling would show up and Gavin Cohen, Director of Finance, responded that the bond offerings show up in the City’s Financial Statement and will be enumerated in the budget document for FY 2009.
Referring to the transfer from the General Fund, Councilmember Gajewski commented that, despite this injection of money, the Parking Fund would still be in deficit for this year. Mr. Cohen agreed, saying that it will take at least one full year of being fully operable and charging users before the City truly knows the full picture on deficits versus expenditures.
Re: Introduction and Adoption of Ordinance to amend Ordinance No 23-07 to appropriate funds and levy taxes for Fiscal Year 2008
Ordinance No. 1(a)-08
In addition to the items mentioned earlier, it was noted that a transfer within the CIP $275,000 from the Air Release Valves project to the for Horizon Hill water project was needed to assist with the capital expenditures associated with the water main rehabilitation program. Staff is also recommending that the project be renamed the Water Main Rehabilitation project to more accurately reflect the project description and goal. Since this is a transfer from one project to another, there is no change to the overall water fund total.
Councilmember Marcuccio introduced the ordinance. A motion was made by Councilmember Robbins to waive the layover, which was seconded by Councilmember Britton. In discussion of the motion, Councilmember Robbins said she was very pleased to hear that Redgate was doing so well. Burt Hall, Director of Recreation and Parks, said that he hoped that the course would end up in the black, but much would depend on the weather.
Councilmember Gajewski said he was uncomfortable about waiving the layover period. The vote was taken, and the layover period was waived, with Mayor Hoffmann and Councilmembers Britton, Marcuccio, and Robbins voting, “aye,” and Councilmember Gajewski voting, “nay.”
Upon motion by Councilmember Marcuccio, duly seconded by Councilmember Robbins, and unanimously passed, Ordinance No. 1 (a)- 08, amending Ordinance No 23-07 to appropriate funds and levy taxes for Fiscal Year 2008 was adopted.
Re: FY2009 Budget Preview
Councilmember Marcuccio asked if the proposed budget would include some tax relief for seniors as well as a maintenance program to help seniors repair their homes and do some general chores and upkeep. City Manager Ullery said that the same tax benefits were planned as in last year’s budget and Burt Hall, Director of Recreation and Parks had proposed some funding for the maintenance program through the supplemental process.
In beginning the presentation, Ms. Tate said that the estimated General Fund budget for FY 2009 will be $62.2 million, which is a 5.6% increase over adopted FY2008. She said this is a conservative estimate to ensure that funds are sufficient to cover expenses throughout the year and that updated information is being received all of the time. She said that property taxes and income taxes are expected to go up, but highway user fees are expected to go down, with tax duplication expected to be the same. Property taxes are based on a tax rate of $0.302 per $100 of assessed valuation. The Homeowners’ Tax Credit Program would still be continued. FY 2009 expenditure needs would:
Ms. Tate also reviewed the budgets of each of the enterprise funds. The Water Facility Fund will contain new operating and capital expenditures for FY 2009 based on the following studies, the Water Treatment Plant Study and the Water Distribution System Study. The Sewer Fund rate will be based on recommendations contained in a March 2006 study approved by the Mayor and Council. The Refuse Fund will be based on a once per week, semi-automated refuse and recycling program, with a rate of $32.70 per month, which is the same as this year’s budget.
The Parking Fund will include a parking district rate of $0.30 per $100 of assessed value, providing over $90,000 towards funding the District. Parking fees of $1.00 per hour for parking in the Town Center will be implemented on Monday through Friday, 7:00 a.m. to 7:00 p.m., beginning March 10. Staff is proposing a transfer of $950,000 from the General Fund to the Parking Fund to assist with the revenue gap. This transfer would be the same as in adopted FY 2008.
If approved, the Stormwater Fund will include funds from the Stormwater Management Utility Program and provide a dedicated funding source for stormwater management needs, relieving the General Fund from that cost.
As mentioned, the Redgate Golf Course’s situation continues to improve. Redgate is in the middle of a five–year business plan to intended to help the Golf Fund. As part of that plan, the City will transfer $93,000 to the Golf to support capital improvements.
Regarding the Town Center Management District, staff is evaluating the assessed values of properties in the Town Square in order to develop the tax rates for the special districts so as to cover the proposed expenditure budget for the Town Center Management District Fund of approximately $820,000, an increase of $98,982 or 12% over FY2008.
The Speed Camera Fund is expected to continue to generate considerable revenue for the City. Approximately, 10,000 citations per month are being issued. By law, the revenue is very restricted funding only projects related to enhanced pedestrian safety, enhanced street lighting, improved bikeway systems and additional police officers in the traffic unit.
The FY2009 budget is being developed to implement the Mayor and Council’s long-range vision and identified priorities for the next two years. The two-year priorities for each of the vision target areas have been introduced into the budget preparation process. These include:
Ms. Tate described the next steps in the budget process, including the presentation of the budget by the City Manager scheduled for March 24, two public hearings on March 31 and April 14 and at least two budget worksessions leading to the proposed adoption date of May 19, 2008.
In discussion, Councilmember Britton asked about the revenue for the Town Center Management District. He wondered if the units were not occupied, who would be paying the tax. Ms. Tate said that this is the first year for the tax so staff will be looking to see if things are listed correctly on the tax rolls and that it would be the developers responsibility until the units were sold or occupied. Councilmember Britton also asked about a “Homestead Deferral” Program for the City similar to that of the County. Ms. Tate said that staff is looking into that possibility, although until now, the County, who administers the tax bills, only administers programs that they use.
Concilmember Marcuccio asked if there had been further thought of the City taking over the maintenance in Town Center. Mr. Hall said that staff is continuing to evaluate this. Mayor Hoffmann said she had noticed that the garages were cleaner than they had been.
Councilmember Gajewski asked if a surplus would be anticipated in the Refuse Fund in light of the changes to the program. Gavin Cohen, Director of Finance, said that any savings would come fewer staff and less equipment, but that it would probably be that things would only stay flat in FY 2009. Craig Simoneau, Director of Public Works, said that FY 2009 should be considered as a transition year.
Regarding the Parking Fund, it was mentioned that, at the time of the budget presentation on March 24, the fees would have been in place for only a couple of weeks. Councilmember Gajewski commented that he felt a great deal would be learned in April and May so adjustments could be made if necessary prior to the adoption of the budget on May 19.
The Mayor and Council thanked Ms. Tate and Mr. Cohen for the information presented tonight.
Re: Old/New Business
Councilmember Gajewski noted that tomorrow is Primary Election Day. He said it would be wonderful if there were a good turnout.
Re: Adjournment
There being no further business, the meeting adjourned at 10:22 p.m.