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Planning Director, Mitchell resigns

Colonial Beach is currently looking for a Planning Director to fill the shoes of Gary Mitchell, who ...

Colonial Beach boil water notice rescinded

Colonial Beach residents were given the ‘all clear’ on July 25, after being notified 3 days earlier ...

Colonial Beach drinking water contamination determination to notify public lies with Health Department

On July 23, at 10:15 a.m., The Journal spoke with Bennett Ragnauth, Engineering Field Director from ...

Colonial Beach - Boil your water

Don't drink the water, until it is boiled

Public Works Director Rob Murphy said that E-Coli bacteri...

Ellie Caruthers is a Colonial Beach Treasure

Ellie Caruthers is a Colonial Beach Treasure

Residents and visitors to Colonial Beach often walk the shores of the Potomac or prowl the town’s an...

Newman returns to the Black and Gold

Newman returns to the Black and Gold

Colonial Beach School Board members are very excited to welcome back former CB Elementary School Pri...

 

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Office-for-rent Jrnl Bldg 20130925

Closer look reveals dire condition of CB finance records

   There has never been any missing money, but auditor Nancy Miller’s high definition scrutiny of Colonial Beach’s town and school division finance records uncovered no fewer than twenty-two areas in need of immediate improvement.
   The Miller Foley Group was tasked last year with taking its evaluation beyond the scope required by law in order to generate a set of findings whose level of detail might optimally facilitate the remediation of the faulty accounting practices.
   As reported in last week’s Journal, problems uncovered during the audit of Colonial Beach’s Fiscal Year 2008 financial records were several decades in the making, but the results reported last Wednesday could have serious consequence if appropriate remedies are not introduced in a timely manner.
   On Wednesday Miller counseled town officials to take their time and avoid any attempt to hastily remedy all twenty-two of that audit’s findings.
   “None of these things happened last year and it’s not practical to think we can fix everything overnight,” Miller told members of the Colonial Beach Town Council and School Board.
   “Remember that it isn’t possible to have a perfect system of internal controls,” she stated in her opening remarks.
Later in the briefing Miller emphasized the need to avoid an attempt to address all the findings of internal control weaknesses in a hasty manner.
   “Fixing this is going to take a lot of time and a lot of resources. The problems won’t be solved by June 30, 2009,” when financial records associated with the current twelve-month fiscal period are closed.
   “You will probably have findings in your 2009 audit,” Miller then stated. “Right now you need to prioritize. To try and tackle all this right now is a recipe for not doing anything well.”
   According to the auditor, the town should expect “to address no more than three things in a single year. Then,” Miller related, “you can realistically expect to do them well.
   “Your role,” the auditor then advised the two sets of elected officials, “it to keep [the finance office employees] on task. It will be a great process if you allocate the resources and set a tone that is consistent with greater accountability.
   “You are the governance and you need to hold management accountable,” she explained.
   The auditor recommended that the Council and School Board waste no time in establishing a task force charged with addressing financial record keeping problems identified in the report.
   Council responded the following evening. Mayor Fred Rummage and Vice Mayor Trish King will represent the local government on a task force whose first mission will be implementing the computer-based accounting program known as the Bright system in the school division’s finance office. Two School Board members will complete that task force membership.
   Miller advised that June 30, 2010 “should be the timeline to really turn this thing around.” She made it clear that addressing problems associated with the school division’s financial records keeping practices should be all parties’ top priority.
   In a worst scenario the federal government could demand that Colonial Beach return almost $444,000 that its school division received as grant money from the federal government.
   “The federal authorities could ask for the money back, but I have never seen it done,” Miller related. “You just don’t want to have these [same findings] in the 2010 audit. A corrective action plan will be looked on very favorably” by federal government authorities.
The auditor made it quite clear that the school division’s finance office is seriously under-staffed, that existing personnel are being expected to utilize skill sets that they lack and that a properly trained financial staffer charged with tracking federal grants would expect to earn no less than $100,000 a year.
   In Town Hall and in the School Board office finance employees “are being asked to do three to four times what they should reasonably be expected to be doing,” explained Miller.
   In the school division’s finance office, “program people are asked to do accounting when they don’t have the training. Very few localities have the resources to hire a grant manager, and you guys are so tiny that the State Department of Education budget is really not focused on you guys.
   “Ninety-eight percent of the federal money is coming in on the state side, but there’s not much coming into the town right now. For the school system it’s a priority to understand grant management and ledger accounting,” along with creating a mechanism for the filing of timely reimbursement reports to better manage federal grants.
   The audit disclosed that lax procedures resulted in actions that caused the school division’s debt to the town to climb to $662,000. Coupled with the previously referenced federal grant accounting issues, a worst scenario consequence would require the Colonial Beach school division to raise a million dollars just to satisfy local and federal government demands.
   The three hour briefing included a warning from the auditor that the twelve-month budget period ending June 30, 2012 will likely reflect what state budget experts fear may be dire economic conditions. The town was advised to have a reserve balance it can draw from at that time.
Miller additionally delivered a warning about the unprecedented level of strings and accounting protocols attached to the federal government’s economic recovery allocations to local jurisdictions.
   According to information gathered by Miller, the oversight required from local finance employees in tracking allocations from the federal stimulus package will be no less than ten times greater than anything that was experienced in the past.
“There will be such a high level of review on how the money is spent,” the auditor counseled. “You got some pretty big stuff that was packaged really fast.” The details, she related, have not yet been disclosed.
   More will be published in subsequent weeks about the latest Colonial Beach audit findings. The final Miller Foley document is scheduled for release later this week.
During last Wednesday’s deliberations, parties refrained from finger pointing. Members of the town government must remedy their own accounting problems and Miller made it clear that all the players have expressed a willingness to embrace the appropriate sets of remedies as soon as possible.
   “They already have started working on the problems,” said Council member Sparky Ridgely in the final comment before the March 25 meeting was adjourned.

 

By Betsy Ficklin

Beach financial records are this Wednesday’s discussion topic

   Colonial Beach financial record keeping difficulties that have been at least twenty years in the making are this Wednesday morning’s topic of discussion in the Town of Colonial Beach. Town and school audits will hear from auditor Nancy Miller at a meeting scheduled to begin at 9:00 a.m.

The Miller Foley Group’s audit of town government and school division financial records associated with the 12-month fiscal period that ended on June 30, 2008 identified a multitude of problems.
Numerical values associated with auditor findings were unavailable at the time of this reporting, but Colonial Beach Mayor Fred Rummage told The Journal on March 9 that problems are far worse than he had previously supposed.
Rummage won election to the office of Colonial Beach Mayor in May 2008, following two years of service on Town Council. A retired attorney and former Maryland legislator, he vowed to introduce a greater level of transparency to town business that would be dominated by concerted efforts to resolve the problems that had not been properly addressed by prior administrations.
New in 2009’s audit reporting is the return of auditor Nancy Miller to review the town’s financial records. Miller was previously associated with an audit firm known as Tingler and Miller, whose services as town auditor ended approximately seven years ago.
According to the narrative  portions of Miller’s February 2009 draft report, the problems cited as a result of the financial professional’s past visits to the town were never properly resolved.
The difficulties associated with financial record keeping in the Town of Colonial Beach were not altogether unanticipated. During 2007 some elected officials identified instances in which unappropriated monies had been expended by the school division and also by the municipal government.
The town government’s introduction of a more modern financial accounting computer software program was intended as a measure that would correct shortcomings associated with previously financial record keeping efforts. Improvements were noted by Colonial Beach’s previous auditors.
Those reports encouraged the school division to convert to the same financial accounting computer software program that the local government converted to as long ago as 2004. Despite ongoing discussions, the school division has continued to use a computer-based accounting program of its own.
By April 2008 Town Council had instructed the town’s chief finance officer to implement a new set of protocols in order to ensure that the Colonial Beach school division expenditures did not result in financial deficit conditions.
In order to comply with modern accounting requirements, a Colonial Beach police officer, Ryan Hood, was charged several years ago with developing an inventory of the municipality’s fixed assets.
The tasking included compiling a list of all town owned properties and equipment, including an inventory of office computers, copy machines and miscellaneous equipment. The new audit asserts that as of June 30, 2008 the inventory of the town’s fixed assets fails to meet the requisite standard.
Financial records were a major issue in Colonial Beach’s 1990 and 1992 general elections. By 1992 it had become understood that the town’s government and school division needed to invest in an integrated financial accounting software package and a program known as SDS was purchased by the town.
Hopes that the new accounting system would resolve lingering financial records keeping problems were thwarted as quickly as the Robertson, Farmer and Cox audit firm released the findings associated with its audit of the 12-month budget period that ended on June 30, 1993.
Internal controls were that audit’s big issue and efforts were made to create a system of checks and balances that would provide appropriate oversight. Despite the town’s concerted effort, accounting problems continued to be identified in annual audits. SDS went out of business and successor computer software vendors attempted to improve the workings of the integrated computer software program.
As long ago as summer 1992 a Colonial Beach Treasurer had attempted to persuade Town Council to purchase the integrated financial accounting computer software package known as the Bright System, but the town delayed its conversion to the Bright System until 2004.
When Council became vocal during 2008 about the school division’s need to utilize the Bright accounting system, proponents of the transition were advised that the Bright package may be already obsolete.
  Nancy Miller is expected to make it known on March 25 just exactly how problematic Colonial Beach government and school division financial record keeping problems have become.
  Westmoreland Commonwealth’s Attorney Dean Atkins will reportedly review the final report and then determine whether or not criminal charges should be brought.
The already disclosed audit finding that Colonial Beach school division expended unappropriated monies may or may not have a serious legal consequence. The audit identifies as many as 19 serious town government and school division financial accounting shortcomings whose cause may be linked to inadequate checks and balances or, in auditor language, internal controls.
   Once again Colonial Beach has an audit suggesting the town is unfamiliar with modern accounting principles. Problems include the manner in which trial balances, account reconciliations and debt service payments are recorded. The report asserts that proper levels or monitoring did not occur and senior management may have over ridden the established set of internal controls.
   A portion of the reported record keeping problems may be associated with inadequate communication between  the members of the local government and the Colonial Beach school division.
   School division and local government changes in administrative personnel  may have created additional financial reporting difficulties identified in the audit that will be this Wednesday’s discussion topic in the Town of Colonial Beach.

Betsy Ficklin

Council, Mayor hash out committee system, communication, power

   In June, 2008 Mayor Fred Rummage assigned “monitoring and oversight appointments” to oversee issues that previous administration appointed committees had been responsible for; Budget (Mr. Ridgley); streets and roads (Mr. Kennedy); planning and zoning (Mr. Coombes); water and sewer (Ms. Payne); public safety (Mr. Lyburn); and economic development (Ms. King).
   Councilman Kennedy raised the issue of returning to the committee system at the last Council work session on January 29th.  “The oversight appointments have fallen short of my expectations as I see it. I have a number of reasons for feeling that way. I think communication between council members has fallen, we don’t have a good conduit of communication. I think that we are chasing rabbits; sometimes I don’t know who’s doing what.”
Kennedy concluded his presentation by saying, “I think these committees served a better purpose by having two to three people on each committee, there was a better line of communication, there was more input into what we were doing.”
   Kennedy’s concerns stem from the fact that although these appointments are separate matters, members often end up researching the overlapping information but never confer with each other. For example, when dealing with public works, Kennedy handles the roads and Councilwoman Payne handles water and sewer. Payne confirmed in last week's meeting they have never met to discuss public works, yet they both have to meet with Public works director Rob Murphy.
   Mayor Rummage replied, “I was surprised to see this on the agenda because I never heard that you were dissatisfied with the assignment that you agreed to.”
   Kennedy clarified that he was not dissatisfied with the appointment but that he was dissatisfied with the lack of communication. Kennedy proposed instituting the resolution to reinstate committees on July 1st of this year to coincide with the new fiscal year. “I’m open for any discussion on this matter.”  Kennedy indicated that he wanted input from the Council and if it was voted down he would accept that but he didn’t want the issue to fall through the cracks.
   Originally when Mayor Rummage asked for comments from the Council, there were none, but as discussions between Rummage and Kennedy continued all members joined in to give their opinions.
   Rummage began his argument against the resolution by saying, “The ways and Means Committee to my knowledge, in the past two years prior to July 1 of this year has never met! Were you aware of that?”
   To which Kennedy replied, “No.”
   Rummage continued, “The administration of the finance committee according to my predecessor was set for the convenience of an individual that wanted to chair a committee. Nothing ever came out of that committee.”
   Rummage explained that the Finance committee and Ways and Means committees are a duplication of effort. He told Kennedy, “If you're willing to settle on Public works, public safety, and planning and economic development, I don’t have a problem.”
   Appearing to reach a compromise Kennedy said, “I’d still like to see adding a finance committee in there. We can combine the two.”
   Other Council members finally began to join the discussion; Ridgley stated that when he was appointed to oversee the Budget he did not receive any written information from his predecessors or any committee concerning finances.
Coombes said in the past the success or failure of a committee was due to its chair and said, "We have had some weak chairs in the past."
 Payne had no objection to going back to committee system.
   King's general comment was to point out that with a committee meeting, several people engage in the discussions and others can attend. With the present system "Council members are only given a report and are not privy to how decisions are reached."
   Finally Lyburn said he doesn’t feel left out because he just goes out and asks people to find out what he wants to know.
    Lyburn said he is happy to share information any time it is requested. He is not opposed to committees but he cautions the time consumption issue and he addressed the need to find ways to share information. If three or more members of council meet to discuss town issue it must become public and advertised adding to the burden of scheduling.
   After much discussion the majority of the Council voted in favor of tabling the issue till May.
   The next two items on the agenda seamed to set an atmosphere of addressing uncertainty in the rolls of the Council members and the Mayor.
   Kennedy presented a list of Bylaws and Rules of Procedures drafted by Town Attorney Erard which the council covered line by line. The Resolution following this list addressed, commitment to excellence, the Mayor and Council complying with the letter and spirit of the laws affecting the operation of town government as well as being required to be impartial and fair in judgment and actions while in public office.
   Mayor Rummage presented a document also prepared by Erard outlining the powers, duties and authority of the Mayor compiled from the Town Charter, Town Code and The Code of Virginia and other legal precedence.
   Although there was no formal discussion on the documents concerning the Mayor he apparently was responding to the opposition he has received from Council in the past.

Linda Farneth

 

Public hearing to raise water and sewer fees . . . continued

Town Council held its public hearing to decide the issue of raising water and sewer rates and connection fees on January 8. The proposed rate increase has been a subject of regular meetings since January 2007 when it was first introduced by Town Manager Tim Krawczel.
During its development many citizens have spoken out against the increase, causing it to be revamped with various different proposed rate increases. Each time the amount is changed a new hearing has been set.

The latest proposal is the combined efforts of a committee comprised of five members; Council members Karen Payne, Sparkey Ridgley, Director of Public works, Robert (Rob) Murphy, Chief financial officer, Joan Grant and the Acting Town Manager, Val Foulds.

Krawczel’s original proposal was to raise water and sewer fees by roughly 41%. The newest proposal would, if passed, be a 20% increase. Combined water and sewer rates would be $600.00 per year and connection fees would be raised to $9600.00 until June 30th when they would increase to $12,000.00 on July 1st.

Karen Payne explained that the raised fees are needed to cover the 6 million dollar grant for new upgrades to the power plant that were required by the Department of Environmental Quality (DEQ) and that more improvements will ultimately be needed. Payne said the cost of running the plant has increased as well as the need for a larger crew. The town is scheduled to start repayment of the grant in January, 2010 at the cost of $2,671,606.00 a year.

“The fees have not been raised in 14 years and we are paying for that lack of attention now,” Payne said.

The first to oppose the rate hike was Jay Breedon who said, “I don’t believe this time is the right time to raise anything in this town.” Breedon spoke of the elderly as well as construction workers who are out of work due to the slow housing market. “This council turned down another tax earlier.”
Breedon said he feels the elderly are being asked to pay the burden.

John Gleason asked why this meeting could not be postponed and heard during the summer when the summer people are here and senior citizens could get to the meetings.

Three representatives from the Monroe Point housing project spoke in opposition of raising connection fees.  Monroe Point is the plaintiff in a case against the town. The company is seeking relief from certain aspects of their contract to replace vegetation as per requirements of the Chesapeake Bay Act. Jonathan Natelson, One of the developers of Monroe point Subdivision was the key speaker for the group.

He began by saying “We, meaning all of us, are facing a financial crisis. The government is taking action to try to stimulate the housing market.” He apprised the Council of their production at Monroe point reporting that the company has 65 homes built and are building 40 more homes. The company has had negative sales in the last 3 months meaning there have been no new sales and there have been cancellations. Natelson says they have cut prices to “at cost of production” to keep the project alive.

“We understand that the town has financial needs especially in the Water and Sewer plant. We don’t expect the connection fee to stay static forever but we absorbed an increase in connection fees about 3 years ago. We are asking that you defer an increase in connection fees until there is a demonstrable change in the housing market in Colonial Beach.

 “We think this connection fee increase will backfire. It will make [housing] sales impossible.”
Sales Rep, Mark Sheppard for Ryan homes has had to be reassigned as a result of the slow market at this project. Sheppard spoke mainly to support his colleague, Natelson, but had this to add, “I’m not sure I understand why this needs to be executed at this time. I think most of us would consider this the most absolute worst time and economic environment.”

Developer, Mr. Dzaman reminded the Council that when they came here 3 years ago the connection fees were $3500.00. The company priced their homes based on that price. Since then the company has seen almost a 100% increase to $6000.000. Dzaman argues that the company can’t absorb this type of increase during this economic stall in the housing market. “We are the housing market in this town right now.”

When the resolution came up for vote Councilman David Coombes appealed to the other members of Council to continue the matter till the following week. His reasons ranged from his agreement with testimony regarding the economic impact on the town and housing to the financial burden already brought about by the economic crisis.

Coombes feels that cut-backs and raising fees go hand in hand. “We need to work at this and this council has not done that. No one has called us together to do it… and I find it, in this day and age, almost intolerable that we’re going to raise the tax without having looked as a collective group at where we can cut back!”

The entire council agreed to a motion to continue till January 15th at 6:00 p.m. at which time Council plans to have a work session to fully explore all options for cut-backs and re-evaluate the proposal to raise water and sewer, use and connection fees.

  Linda Farneth

   

One out of three ain't bad

One of Mayor Rummage's campaign promises slated to come to fruition this summer; Santa Maria will be paved. That was his bright moment in last week's Town Council session.
Despite the Mayor’s failed attempts to approve a resolution that would assist RAP (Related Apartment Preservation) in procuring a $4,200,000.00 bond from the Harrisonburg Redevelopment and Housing Authority last month and Thursday's failed attempt to start the ball rolling towards collecting a 25 cent fee for entrance to Riverboat if they acquire slots, the Mayor's victory in the approval of Resolution #03-09 to match funds for the paving of Santa Maria Avenue gave him a one out of three victory for the meeting.
Larry Roberson, Westmoreland Board of Supervisors member announced, “The State sold all of its bonds for their big improvement and we now have the $100.000 for paving Santa Maria. The county has given $50,000 plus and your coming up to vote for your $50.000.00,”  said Roberson, makes the project viable.
The resolution received a unanimous vote to pass.
For his losses, Mayor Rummage faced opposition from Council on his attempt to set in motion at the state level, a bill that would eventually result in an entrance fee of .25 cents per patron entering any establishment where gaming is held just in case Riverboat eventually is permitted to have slot machines. He took a public brow beating from Council member Steve Kennedy for his letter in the January 7 issue of the Westmoreland News regarding Council's position on the RAP proposal.
Kennedy stood at the public podium saying, “I like to face the people I’m talking to.”
Kennedy continued, “After reading your letter to the editor in this week's Westmoreland News, I was both amazed and disgusted! Amazed that you had the audacity to write such a scathing piece, and disgusted by the false impression it left. To imply that this Council did anything less than honorable without consideration to the citizens of this town, was both erroneous and without merit.
"This council works hard to serve the citizens of this town. And for you to imply otherwise leaves a bitter taste in my mouth. I hope the citizens of this town know that we make hard decisions… that are sometimes not popular but are always thought out and with the town’s best interest at heart. For you to attempt to chastise this Council in a public forum because they did not agree with you… this person [referring to the Mayor] was both unprofessional and a discredit to the members of this Council. Thank you Sir!”
To which Rummage replied, “I didn’t insinuate anything. I stated facts. Thank you.”
Paving on Santa Maria Avenue is slated to be finished this summer. This is one of Mayor Rummage's campaign promises.

Linda Farneth

    

Council no closer to resolution on Riverwood sale; a tale of two meetings

Related Apartment Preservation (RAP) is the entity that is trying to purchase The Riverwood Housing Development, a federally subsidized housing development that must remain as such until 2036 due to the Deed of Trust. Related began the process of contacting the Town and seeking their approval of the project as far back as July.  Initially, Related contacted the Town for its approval because of the mode of financing they are trying to use – state issued tax exempt bonds.  To use this form of financing, the purchasers must have “the blessing” of the Town Council.  According to Related's representative, Richard Hurlbert, this is the way their company prefers to do business; this way the community is kept in the loop and the purchaser is aware of any concerns that the community has with the property.  However, perhaps there has been a misunderstanding on the Town Council concerning the necessity of their blessing.
 


In a bold move last Wednesday by Colonial Beach Town Council three resolutions regarding Riverwood Apartments in Colonial Beach were put in a state of suspended animation.
After the meeting was called to order; Mayor Rummage made a motion to approve the first Resolution 89-08. When no one came forward to second the motion, the Mayor called a ten minute recess. Then Rummage walked into the back room.
While some members of Council sat thumbing through papers, others sat back in their chairs waiting. After roughly two minutes Rummage returned to his chair. A few more moments of awkward silence followed, then Vice Mayor Trish King asked the Mayor if they could come out of recess.
Rummage asked, “What is the purpose of coming back into session at this point?”
To which King responded, “So we can move on with the agenda for this evening.”
Mayor Rummage said, “Well, we tried 89-08 and we didn’t get it before us, shall we try 93-08? Do I hear a motion?”
Vice Mayor Trish King responded, “I’ll make a motion for 93-08.”
 Rummage called for a second. A second was heard. Council member Sparky Ridgely asked for clarification on the motion asking, “Is this to accept it?” One member said, “No this is to put it on the table.”
To which Rummage replied, “No no this is for acceptance.” The original second was withdrawn.
Mayor Rummage announced, “93-08 is not before us therefore it can not be discussed.”
There was discussion as to whether the resolutions had failed. Town Attorney Erard stated that no action had been taken. Mayor Rummage said, “It’s a continuing resolution… It can be brought up at anytime… I would guess that it would be the parliamentary recommendation.”
That took care of two of the motions regarding Riverwood.
Then King began to make a motion on the last resolution but was cut off in mid sentence by the Mayor, clarifying that it was a motion to approve. When no second was heard Mayor Rummage adjourned the meeting.
That took care of all three motions regarding Riverwood.
The meeting was a continuation of a public hearing held over from a rainy Thursday December 10th. At the beginning of that meeting, tokens of gratitude where handed out to citizens giving much of the public attendees reason to leave early.
The hearing on Riverwood heard no opposition nor support from residents but a heated discussion ensued between members of council and Mayor Rummage leaving Richard Hurlbert Jr. attorney for Related Apartment Preservation LLC standing at the podium for over an hour.
For several months Related Apartment Preservation LLC has been under contract to purchase Riverwood apartment from the current owners Riverwood Limited Partnership and have been negotiating with the Town Council.
The prospective buyer (Related Apartment Preservation LLC) is seeking to acquire a $4,200,000.00 bond from Harrisonburg Redevelopment and Housing Authority for the purpose of purchasing and improving Riverwood Apartments. In order to be approved for the Bond the Colonial Beach Town Council must adopt a resolution Res. #88-08 declaring the need for a Bond to be issued and their approval.
Although the Bond would not require repayment, the Council members have many concerns about the three resolutions pertaining to Riverwood.
At the core of the matter is resolution #93-08 which comprises an agreement between the town and the current owners of Riverwood apartments to provide greater access to the property by Colonial Beach Police and provisions for the current owners to pay a salary of $40,000.00 for an officer to patrol the premises.
The agreement is for a period of 3 years and would be carried over to the Prospective buyers. Members of the council are finding it difficult make a decision that would only temporarily handle the situation and result in a new problem for the Council in three years.
 During these discussions some have mistaken the scope of Beach Police powers over the 83-unit complex. Mayor Rummage had expressed in the December 10th meeting his concerns that if the Resolution did not pass, Riverwood would become a “Federal Island”. Some members seemed worried that C.B. Police would not be able to enforce the law.  “The Resolution would only make access easier in certain situations but is not needed for Beach police to carry out their lawful duties.” states Councilman Ridgely.
The third and last resolution involved is #89-08 which sets out an agreement that ensures that certain improvements will be conducted by the new owners as well as various actions that would call for a “zero tolerance” policy to be enforced with respect to criminal conduct and unlawful behavior by tenants.
According to Vice Mayor Trish King, many of the improvements outlined by the prospective buyer are already required by law from the HUD manual.    
The big argument during the December 10th meeting was, “These agreements have “no teeth” with no legal recourse.”
 Hurlbert, the attorney for the prospective buyers, argues that these Resolutions are binding contracts and the Town has legal recourse through the laws concerning Breach of Contract.
Councilman Sparky Ridgely stated he doesn’t want to enter into a contract on the basis that they would have to seek legal action through the court that would take time and tax payers’ money.
Ridgely’s concerns echo that of other members of council by saying, “they were assured certain security improvements to the tune of $18,000.00 per unit by the prospective buyers only to be told later that those improvements where contingent on the buildings being “sound”, that they didn’t have to make any major improvements.”
 After the meeting Mayor Rummage had this to say, “We have a number of people here that just absolutely, I think, it's not that they don’t want to do anything for Riverwood, I think they’re very upset that we have a disproportionate amount of subsidized housing in this town. But they’re here and that’s a problem and we should address that. I’ve got a number of people who have contacted me who live out there who are really looking forward to having a change. And we could have made a difference with these resolutions. But now we’ll have to use a different approach.” Rummage is particularly concerned about the elderly residents of Riverwood.
When asked if the failure of these resolutions could lead to displacement of any residents, he assured The Journal that the residents have no reason to worry about that. Rummage is confident that the sale of Riverwood will go through. He reassured that if the sale did not go through and the current owners abandoned the property, HUD would take over but Rummage does not see any evidence of that happening.
When asked if the resolutions were still on the table or if they were null and void, Mayor Rummage responded, “They could be reconsidered. Right now they are null and void. See, in order to get any one of them before the council there has to be a motion and a second then that brings it before us. Then we debate it, discuss it, then we either defeat it or pass it.”
By this response and the Mayor's insistence during the meeting for motions “to pass” the resolutions, it brings up the question of whether or not there was a procedural misunderstanding between the Mayor and members of council.

Linda Farneth

CB welcomes Vadar, new K-9 dog

Council member Burkett Lyburn cautioned that Vadar, Colonial Beach’s new four-legged officer is "very mean."
Although Vadar picked up on Lyburn’s fear by growling at him, his handler, Patrolman Brown showed expert control allowing Lyburn and Chief Hawkins to pose with them.
Vadar is a Patrol Utility Dog trained for handler protection and finding suspects. He is utilized for tracking suspects, searching buildings and article searching. If a person robs a bank, Vadar can not only track the suspect, but can find items dropped by the suspect along the way, such as a gun, money or article of clothing.
Vadar is trained to pick up various scents from a suspect such as human odor, perfume or alcohol. He is capable of clearing a building, meaning he can detect and indicate if a suspect is in a building or not. He has been trained to overcome obstacles that a suspect may maneuver through while running from the law.
“Vadar’s handler, Patrolman Everett Brown was chosen because he is young and in top physical shape which is required to keep up with K-9 Vadar.” said Chief Hawkins.
Brown trained right along with Vadar for 14 long weeks and they are now a working team with the Colonial Beach Police Department. A week before on Friday the 12th Vadar and Brown where called upon to track a suspect for Breaking and Entering but unfortunately the trail was over 4 hours old and the scent was too faint to track.
Vadar would not be used for tracking lost children or Alzheimer’s patients because he is trained to be aggressive. Different dogs are trained for different uses. Vadar lives with Brown but does not interact with any other members of the family. This is necessary to keep Vadar focused on his training to be aggressive in the pursuit of suspects.

Linda Farneth

CB Hearing on water and sewer rates scheduled

On November 26, 2008 Draft 1 of the Recommendation on Water/Sewer Rates for the Town of Colonial Beach was released to the Colonial Beach Town Council for their perusal and suggestions.  The draft proposal is the creation of a study group comprised of Council Members Karen Payne and Sparky Ridgely, Acting Town Manager Val Foulds, Chief Financial Officer Joan Grant and Director of Public Works Rob Murphy.  
The group was formed at the request of Mayor Rummage to examine the many issues surrounding a potential increase in residential water/sewer fees and to hopefully find a way to work out a gentler and more community friendly increase than the original proposal of 41%.    The group was also charged with looking into and resolving the issues surrounding non-working, absent or unread meters at local businesses as the town had a substantial amount in delinquent business accounts as well as discrepancies in who was being read and who was not.
The draft recommendation looks at five areas that impact fees:  Wastewater Treatment Plant Improvements, Water System/Infiltration/Water Line Replacement, Capital Improvement Fund, Increased Costs and Reduced Revenue on Connection Fees.  According to the draft document, the Department of Environmental Quality (DEQ) is funding the improvements to the Wastewater Treatment Plant “through a $6,086,322.00 grant and a $2,671,606.00 loan with a 20 year amortization at 0% interest.”  The town will not have to make a payment until January of 2010 which should equal $66,790.00.  There will be two installments due each year for a combined total of $133,580.00.
With regard to the Water System/Infiltration/Water Line Replacements or Water System and I&I Improvements, the document recounts how Long & Associates Environmental Services Inc. did a 2008 study in the town that estimated 133 million gallons of rain and/or groundwater is being processed by the town each year.  “This is costing the Town approximately $438,000.00 per year in unnecessary influent being processed”.  The report calls for the replacement of the Town's water infrastructure to the tune of an estimated cost of $4,229,190.00.  The annual payments for this aspect of the Town's water/sewer needs is indicated to be $100,000.
With regard to Capital Improvements, the document states “the Town must develop a Capital Improvement funding plan which carries over each year.”  The purpose of this fund will be to cover the cost of rehabilitation and infrastructure needs.  These funds will be kept separate from the General Fund accounts and are estimated to be $100,000 annually.
Increased Costs is the portion of the draft plan that addresses that fact that water/sewer rates “have not been increased in 14 years and have not kept pace with inflation and increased regulatory costs.  Inflation has risen 37.2% since the last user fee rate increase, and 9.17% since the last connection fee increase”, the document states.  To actually keep pace with inflation, the draft proposal states that residential user fees should be raised to $822 from the current $600 per year, but before everyone goes nuts – read on.  
Reduced Revenue on Connection Fees touches upon the fact that with the “poor economy and reduction in new construction” that the projected amount expected from connection fees has fallen short of the mark.  The current budget estimated 80 connections at $6,000 per connection for a total projected revenue of $480,000.00, but in actuality the real number of connections is more along the lines of 60, a difference of 20 connections, which provides revenue equal to $360,000 creating a deficit of $120,000 in expected revenue.  Taking all of those facets of water/sewer into consideration adds up to a “minimum estimated revenue increase” of $597,580.00 annually.
The recommendation that is put forth in the proposal after examining all of the above information, which is based on 2400 residential connections, does not place the whole burden for this $597,580 on the shoulders of the tax payers.  In fact, it does not even call for a rate increase that equates to the inflation that has taken place ($822 from the current $600).  Rather, the suggestion is for the Town to implement a 20% increase which takes the new yearly total for water/sewer for residential accounts from $600 to $720.  In more precise terms that breaks down to the annual residential water bill increasing from $141 to $169; sewer bills go up from $459 to $550 per year.  This change, is expected to bring about an increase in revenue of $288,000.00.
Another part of the proposal deals with a suggested increase in connection fees.  Currently the Town charges $2,000 for a water connection.  It is suggested in the proposal that the Town change the current fees to $3,200 through June 30, 3009 and then initiate another increase to $4,500.  With respect to sewer connections, the current fee is $4,000.  Again, the proposal suggests an increase now to $6,400 to remain in effect through June 30, 2009 followed by another increase as of July 1, 2009 to $7,500.  These increases would, in effect, double the current total combined water/sewer connection fees of $6,000 and take them to $12,000.  It is expected that this change would provide additional revenue equal to $360,000 for the fiscal year 09-10.  Council Member Karen Payne says that this $12,000 fee is “in-line and on the low side of what other localities are charging.”
Now how about those commercial users?  Well, they have not been forgotten; they too are included in the proposal and a 20% rate increase is suggested for them as well; all 92 accounts.  This increase would affect all commercial users whether they are billed at a standard rate because of low usage or receive a bill with a per gallon charge.  It is expected that a 20% increase for the commercial accounts would provide added revenue in the amount of $11,040.00.
As for the delinquent commercial accounts, missing, broken or unread meter problems, Payne says, “Public works has replaced all the missing and not working business meters.”  Payne also assured the community that, “All meters for businesses are being read now” and that due to “better coordination between public works and the treasurer's office” meter readings would no longer fall through the cracks.  
The Town's Chief Financial Officer Joan Grant concurs with Payne that “to the best of her knowledge all the meters are installed”.  Grant says that there is a new revised up-to-date list; “a complete list of all businesses”.  “The expectation”, she continued, “is to get a meter reading and if we don't get that to ask where it is and send someone to go get it”.  Grant did want to point out that some businesses do get charged a flat rate because of low usage.  “The meter”, she said, “only kicks in when they go over the allotted amount”.  Grant confirmed that even if a business ends up being charged a flat rate for a few consecutive months, that the meter is still read; the assumption is not made that since they haven't gone over they never will.  Director of Public Works, Rob Murphy, confirms that the meters have been replaced, but cautioned that it is an ongoing project.  “As a result of this last reading” said Murphy, “one, two, three work orders have been generated to double check the meters.”  Murphy also confirmed that the Town has picked up the cost of replacing, repairing and installing any missing meters.  Public works expects to work on the 3/4” meters regularly and includes keeping a surplus of them on hand in their budget, but this year, two 2” meters had to be replaced, which was not expected, and each of those cost $800.  Murphy said, “It hurt a little, but we'll be alright”.
The Public Hearing on the new Water/Sewer Rates is scheduled for January 8, 2009 at 7:00 p.m.
Anne Congdon

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