BALTIMORE COUNTY COUNCIL

NOTES TO THE AGENDA

LEGISLATIVE SESSION 2017

Issued: November 9, 2017

Work Session: November 14, 2017

Legislative Day No. 19 : November 20, 2017

The accompanying notes are

compiled from unaudited

information provided by

the Administration and

other sources.

OFFICE OF THE COUNTY AUDITOR

BALTIMORE COUNTY COUNCIL

November 20, 2017

NOTES TO THE AGENDA

TABLE OF CONTENTS

Mr. Quirk (By Req.)

Fire Department

FEMA Fire Prevention and Safety – Smoke Detectors

The Administration is requesting a supplemental appropriation of federal funds totaling $589,048 to the FEMA Fire Prevention and Safety – Smoke Detectors Gifts and Grants Fund program. The funds will be used to purchase 20,000 combination smoke and carbon monoxide detectors as part of a countywide residential smoke detector distribution and installation program. See Exhibit A.

Fiscal Summary

Funding Source	Supplemental Appropriation	Current Appropriation	Total Appropriation
County ⁽¹⁾	—	—	—
State	—	—	—
Federal ⁽²⁾	$ 589,048	—	$ 589,048
Other	—	—	—
Total	$ 589,048	—	$ 589,048
⁽¹⁾The County is required to provide a 5% match ($29,452) of the grant award, which will be met through the Fire Department’s General Fund Operating Budget. ⁽²⁾ U.S. Department of Homeland Security – Federal Emergency Management Agency (FEMA) funds.

Analysis

The purpose of the federal Assistance to Firefighters Grant Program – Fire Prevention and Safety Grants is to protect the health and safety of the public and firefighting personnel from fire and fire-related hazards. The proposed $589,048 supplemental appropriation will be used to purchase

Bill 64-17 (Supplemental Appropriation) (cont’d) November 20, 2017

20,000 combination smoke and carbon monoxide (CO) detectors, installation equipment, and deliverable public safety materials over a 2-year period in order to reduce fire injuries and deaths in the County. The Department advised that it will use data collected from internal fire incident reporting, the County’s Department of Economic and Workforce Development, and the U.S. Census to identify areas of concentrated poverty and high-fire risk within the County to install the detectors. The Department further advised that it will organize canvassing events in those communities, and any residence identified as lacking appropriate detectors will be offered the opportunity to have one installed. Residents may also contact the Department to request a detector be installed. Further, first responders may provide the detectors to residents in need as identified during other emergency responses.

The Department advised that its personnel will install the combination smoke and CO detectors. The Department further advised that the detectors are maintenance-free, 10-year sealed units and cost approximately $30 each.

The grant period is August 25, 2017 through August 24, 2019. The County is required to provide a 5% match ($29,452) of the grant award, which will be met through the Fire Department’s General Fund Operating Budget.

With the affirmative vote of five members of the County Council, Bill 64-17 will take effect December 3, 2017.

Keith Dorsey Fiscal Note November 20, 2017

Bill 65-17 Council District(s) _All

Mr. Quirk (By Req.)

Office of Budget and Finance

Bond Ordinance

The Administration is requesting approval of an ordinance that authorizes the issuance, sale, and delivery of up to $600 million in General Obligation (G.O.) bonds for Consolidated Public Improvements and Metropolitan District projects, $600 million in bond anticipation notes (BANs), and $2,372,708,000 in refunding bonds. This ordinance also authorizes the County to purchase development rights (Installment Purchase Agreement Program) and to pursue the use of tax advantaged bond status. In addition, this ordinance sets a $600 million limit on the aggregate principal amount of BANs outstanding.

Fiscal Summary

Proposed Debt Issuance	Maximum Amount
Consolidated Public Improvement (CPI) (2019 Series)	$ 250,000,000
Metropolitan District (81^st Issue)	350,000,000
Total – General Obligation Bonds	600,000,000	⁽¹⁾

CPI Bond Anticipation Notes (BANs)	$ 250,000,000
Metropolitan District BANs	350,000,000
Total – BANs	$ 600,000,000	⁽²⁾

CPI/Metro District Bonds (Refunding Series)	$2,372,708,000	⁽³⁾
⁽¹⁾Authorization for issuance expires on the latter of December 31, 2018 or the expiration of any outstanding BANs. ⁽²⁾BANs are limited to no more than $600 million outstanding at one time. ⁽³⁾Represents 130% of outstanding bonds totaling $1,825,160,000. Amount to be issued depends on interest rates, issuance costs, and other variables at the time of refunding.

Bill 65-17 (cont’d) November 20, 2017

Analysis

General Obligation (G.O.) Bonds: This bill authorizes the County to issue up to $600 million of G.O. bonds consisting of $250 million in Consolidated Public Improvement (CPI) bonds and $350 million in Metropolitan District bonds. The Office advised that the bonds must be sold at competitive bid per State law, except for up to $5 million in Agricultural Preservation bonds that may be designated for agricultural property owners according to the Installment Purchase Agreement (IPA) Program (explained later) and any bonds designated as financed from the Maryland Water Quality Financing Administration (MWQFA) as authorized in the bill. In addition, this bill authorizes the County to issue G.O. refunding bonds and to pursue the use of tax advantaged obligations. The authority to issue the G.O. bonds expires on the latter of December 31, 2018 or upon expiration of any outstanding BANs.

Consolidated Public Improvement (CPI) Bonds:

This bill authorizes the issuance of CPI bonds up to the following amounts, for the following types of capital improvements:

Type of Improvement		Maximum Amount
Schools		$ 153,000,000
Public Works (roads, bridges, sidewalks, storm drains)		60,000,000
Community and Economic Improvement		10,000,000
Community College		7,000,000
Operational Buildings		7,000,000
Refuse Disposal		6,000,000
Agricultural Land Preservation		5,000,000
Parks, Preservation, Greenways		2,000,000
Total		$ 250,000,000

This borrowing was approved by voters on prior-year referenda, as required by the Baltimore County Charter, Section 718.

Repayment of the principal and interest (collectively known as debt service) on the CPI bonds is guaranteed by the irrevocable pledge of the full faith and credit – and unlimited taxing powers – of the County. This debt service cost is financed by General Fund revenues and is subject to the

Bill 65-17 (cont’d) November 20, 2017

Spending Affordability Committee’s (SAC) debt service guideline, which states that County debt service, including non-general obligation debt, should not exceed 9.5% of General Fund revenues. In addition, the County’s debt policy states that the County will maintain a Debt Service to General Fund Revenues ratio in the range of 8.5% to 9.5%.

Agricultural Preservation Bonds/Installment Purchase Agreement (IPA) Program: In lieu of issuing all or any of the CPI bonds under the Agricultural Land Preservation Borrowing Plan Ordinance, the Administration is requesting authority to issue IPAs to purchase development rights in accordance with Section 12-902 of the Local Government Article. The Office advised that the $5 million bond authorization for Agricultural Preservation projects may be used for IPAs.

The IPA option was established in June 2007 to encourage agricultural landowners to sell land or land preservation easements to the County. Many landowners would have to pay high capital gains tax when selling land or easements for cash. Through the IPA Program, the purchase price is paid in a lump sum after a period of up to 30 years, thus deferring capital gains tax, and the seller receives tax-exempt interest at a pre-established rate on the purchase price in the interim. The interest paid by the County is exempt both from Federal income taxes under Federal tax law and from State income taxes in the State of Maryland. The Office advised that other benefits of IPA bonds for landowners include better estate planning since heirs can use cash from the sale to pay estate taxes. Landowners can also sell IPAs to bond investors for cash prior to their maturities. An IPA has two payment components, interest paid semi-annually and a balloon principal paid after a period of up to 30 years.

Metropolitan District Bonds: The purpose of the Metropolitan District bonds is to finance the construction of improvements to the Metropolitan District sewer and water system. The debt service on these bonds is financed by sewer and water assessments and charges levied against all users in the Metropolitan District. If the sewer and water revenues are insufficient to finance the debt service, the County may levy a tax on all properties in the Metropolitan District or in the County to finance any deficiency. Metropolitan District debt does not require voter approval. The Office advised that the total outstanding balance of Metropolitan District debt as of June 30, 2017, plus the net of additional Metropolitan District debt authorized by this bill, totals $1,918,374,187. This level of Metropolitan District debt is compliant with the County Charter limitation.

Bill 65-17 (cont’d) November 20, 2017

General Obligation Bond Anticipation Notes (BANs): This bill authorizes the County to issue up to $600 million in BANs. BANs are short-term notes sold in anticipation of issuing long-term bonds at a later date when more favorable market conditions may occur. When issued, long-term bond proceeds are used to retire the BANs. The bill limits the aggregate principal amount of BANs outstanding to no more than $600 million outstanding at one time, an increase from the $500 million limit set by the County’s prior bond ordinance, Bill 22-16, approved by the Council on May 26, 2016. The bill further provides that the face value of all BANs outstanding may from time to time exceed the limit. BANs may be issued at a private sale in the nature of commercial paper or other variable rate demand notes, which are more flexible than issuing fixed-rate notes. Proceeds from the sale of BANs are reinvested until the funds are needed thereby creating a legal arbitrage profit (i.e., interest earnings from investments exceeding interest cost on BANs). Issuing BANs also allows capital projects to proceed while awaiting more favorable market conditions for issuing long-term bonds.

The Office advised that by issuing Variable Rate Debt (VRD) – i.e., fixed rate BANs and/or commercial paper, when applicable, for a portion of its debt program – and by issuing bonds through the MWQFA, the County is able to obtain a lower cost of borrowing. The Office advised that on March 15, 2017, under the authorization of Bill Nos. 67-10, 17-11, and 60-12, the County issued $99.8 million in CPI bonds and $99.3 million in Metro District bonds to pay off all outstanding commercial paper BANS.

General Obligation Refunding Bonds: This bill also authorizes the County to sell $2,372,708,000 of refunding bonds to refinance the callable amounts of outstanding CPI and Metropolitan District bonds issued between 2009 and 2017, which total $1,825,160,000. The callable bonds by issuance date for CPI bonds ($1,151,385,000) and Metropolitan District bonds ($673,775,000) are listed in Exhibits A and B, respectively. The refunding bond authority totals 130% of the outstanding principal amount.

Under a refunding, the outstanding debt is “defeased” (nullified) by the issuance of new debt, the proceeds of which are placed in a trust fund. The amount of proceeds required depends on factors such as current interest rates, the remaining term of the original bonds, bid discount, and costs of issuance. The trust fund invests the proceeds in U.S. Government obligations and guarantees the debt service (interest and redemption payments) on the original debt. The County is then obligated to make debt service payments only on the new issue. The County is permitted to issue the refunding bonds in one or more series, subject to the determination of the County

Bill 65-17 (cont’d) November 20, 2017

Executive. Approval of the refunding is requested without an expiration date so that the Office can access the credit market as favorable market conditions occur. The benefit to the County is derived from the difference between the interest rate paid on the original debt, and the related costs and the rate to be paid on the issuance of the refunding bonds. The debt service savings to be realized due to this refinancing authorization are dependent upon the timing of the refunding and the applicable interest rates and, therefore, cannot be determined at this time.

The refunding bonds may be sold at such times and in such manner as shall be determined by the County Executive; the Executive must give the County Council prior notice of such issuance. The refunding bonds may be sold at a private, negotiated sale unless the County Executive determines that it is in the best interest of the County to sell the bonds through a competitive bid process. The Office advised that the County’s most recent refunding, which occurred on November 2, 2017, consisted of $31,035,000 of Metropolitan District and $60,130,000 of CPI callable bonds.

Tax Advantaged Obligations: The Administration is requesting authority to take necessary action, when entitled, to ensure bonds and notes authorized by this ordinance are afforded a tax advantaged status. The necessary actions may include, but are not limited to, covenants or agreements relating to proceeds and earnings and elections and designations as required under the Internal Revenue Code (IRC) to assure proper entitlement to a subsidy or tax credit benefit for both the issuer and holder. The County has previously issued tax advantaged obligations (e.g., Qualified School Construction Bonds and Build America Bonds); these programs expired on December 31, 2010. However, the Office advised that retaining the authority to issue tax advantaged obligations is in the best interest of the County in the event that Congress should choose to renew these provisions.

Administrative Costs: The Office advised that estimated one-time administrative costs associated with this borrowing ordinance are as follows:

Rating agency		$375,000
Bond counsel		40,000
Financial printing and advertising		5,000
Total		$420,000

Bill 65-17 (cont’d) November 20, 2017

The Office further advised that expenses for the G.O. bonds will be paid from the premium from each issuance.

Other: The bill states that any premium funds received from the sale of bonds and BANs shall be set apart in a separate account and can be used for the first interest payments on those bonds and BANs or allocated for other expenditure purposes permitted under Federal income tax law. The bill also states that any earnings from the investment of proceeds of CPI bonds and BANs and Metropolitan District bonds and BANs may be treated as general revenues and applied to the general purposes of the County and Baltimore County Metropolitan District, respectively. The bill further states that the County Executive or County Administrative Officer may designate specific expenditures to be paid from such earnings. The Office previously advised that such language regarding the use of premium funds and earnings constitutes appropriation authority, despite its lack of specificity as to the amount(s), program(s), and fiscal year(s) of the expenditure authorization.

As stated previously, on March 15, 2017, the County issued $99.8 million in CPI bonds and $99.3 million in Metropolitan District bonds at true interest costs of 2.96% and 3.4%, respectively, to payoff all outstanding commercial paper BANS issued in 2011 and 2012.

Also on March 15, 2017, the County issued $121 million in CPI BANs and $225 million in Metropolitan District BANs at true interest costs of 0.90% and 0.85%, respectively. (The County will issue bonds by March 2018 to pay off the BANs.)

The Office further advised that it expects to issue up to $250 million in CPI BANs and up to $250 million in Metropolitan District BANs in March 2018 at an anticipated interest rate of 1.5%. (The County will issue bonds by March 2019 to pay off the BANs.) The Office expects that the March 2018 BAN issuances will generate FY 2019 debt service costs of $7,500,000 ($3,750,000 CPI and $3,750,000 Metro). In addition, the Office expects to finance up to $100 million in Metropolitan Water Quality (MWQFA) bonds at an anticipated rate of 2%, with issuances to occur at various times throughout the year.

The bill indicates that the outstanding balance of County G.O. debt as of June 30, 2017, plus the net balance of additional G.O. debt authorized by this bill, totals $2,416,511,500. This level of

Bill 65-17 (cont’d) November 20, 2017

outstanding debt (including pension obligation debt) is compliant with the County Charter limitation (4% of assessed property value). The Office provided a detailed breakdown of the estimated outstanding debt balance as of June 30, 2018. Projected debt subject to the guidelines adopted by the Spending Affordability Committee (excluding pension obligation debt) is within maximum recommended levels (9.5% of General Fund revenues for debt service, and 2.5% of assessed property value for outstanding debt). See Exhibit C.

With the affirmative vote of five members of the County Council, the borrowing ordinance will take effect 45 days from the date of enactment.

Council Fiscal Note November 20, 2017

Bill 66-17 Council District(s) _6_

Mrs. Bevins

Zoning Regulations – Residential Uses in Zones Adjacent to CT Districts

Bill 66B17 proposes to permit residential uses in certain zones that are adjacent to a certain C.T. (Commercial, Town Center Core) District.

Specifically, the M.L. (Manufacturing, Light) Zone must be at least 10 acres in size, must be located within 525 feet of the B.M. (Business, Major) – C.T. District of White Marsh, and must be part of a contiguous area of 200 acres or more of M.L. zoning west of I-95. Additionally, the tract areas developed for residential use may not occupy more than 6% of the contiguous area of M.L. zoning in which they are located.

The residential uses permitted are allowed on any story of a building. The provisions of section 235B of the Baltimore County Zoning Regulations govern all floor area ratio, density, open space ratio, building height, and parking requirements.

With the affirmative vote of five members of the County Council and signature by the County Executive, Bill 66-17 will take effect on December 4, 2017.

Council Fiscal Note November 20, 2017

Bill 67-17 Council District(s) _3_

Mr. Kach

Parking

Bill 67-17 prohibits the parking of vehicles in a certain area of the AHorses and Hounds Scenic Byway@ and provides penalties for violating the prohibition.

The Horses and Hounds Scenic Byway is one of the scenic byways located in Baltimore County. It is situated in an area traditionally known as AHunt Country,@ where fox hunts and steeplechase races still occur, and some of the farms along the countryside are famous for producing thoroughbred racehorses. It begins on Cromwell Bridge Road in Towson near the Beltway, meanders through Glen Arm and Long Green near the Loch Raven Reservoir, proceeds through Jacksonville, Monkton, Hereford, west toward the Carroll County line in Upperco, south to Glyndon, and east along Tufton and Shawan Roads, ending at its intersection with York Road.

Along Monkton Road near the Monkton Station, the Byway crosses the Gunpowder River. There is a long-standing issue with persons parking vehicles along both sides of Monkton Road near the Gunpowder River, particularly in the summer, in order to go tubing or swimming or walking in the area. Persons park in clearly marked Ano parking@ areas and are often ticketed with the $50 fine, but this has not deterred persons from parking there. It has resulted in traffic congestion in that area and a safety hazard for motorists and pedestrians.

In response, Bill 67-17 prohibits parking along the Horses and Hounds Scenic Byway on Monkton Road, between York Road and Sheppard Road. The bill also increases the fine for illegal parking in that particular area to $130.

With the affirmative vote of five members of the County Council and signature by the County Executive, Bill 67-17 will take effect on December 4, 2017.

Council Fiscal Note November 20, 2017

Bill 68-17 Council District(s) _1, 2, 5 & 6_

Councilmembers Marks & Bevins

Social Host – Unruly Social Gatherings

Bill 68-17 extends the life of the Social Host B Unruly Social Gatherings Pilot Program. This program was adopted by the Council by Bill 90B15, effective February 1, 2016, as a 2-year pilot program.

Bill 68-17 extends the program to November 1, 2022. Further, it redefines the Towson area that is covered by the Program. Rather than define this area by street designation, as was done in Bill 90-15, the Towson area covered by the law is defined as the area encompassed within the Towson Precinct of the Baltimore County Police Department.

With the affirmative vote of five members of the County Council and signature by the County Executive, Bill 68-17 will take effect on December 4, 2017.

Andrea Van Arsdale Fiscal Note November 20, 2017

FM-1 (Contract) Council District(s) _6_

Department of Planning

Elevation of Residential Structure Above Flood Limit – 838 Seneca Park Road

The Administration is requesting approval of a contract with PPS Contractors, Inc. to perform home elevation work to protect a residential structure located at 838 Seneca Park Road in Bowley’s Quarters from flood/storm-related damage. The contract commences upon Council approval, continues for 6 months, and may be extended an additional 90 days. Compensation may not exceed $134,900 for the entire 9-month term, including the extension period. The Department advised that the contract amount will be increased to comply with additional FEMA requirements and that a revised contract should be in place by the November 20, 2017 Council meeting. This contract was “DEFERRED” at the Council’s November 6, 2017 Council Meeting. See Exhibit A.

Fiscal Summary

Funding Source	Maximum Compensation		Notes
County	—		⁽¹⁾U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA) funds passed through the Maryland Emergency Management Agency (MEMA). ⁽²⁾ Private funding from homeowner. ⁽³⁾ Maximum compensation for the entire 9-month term, including the extension period.
State	—
Federal ⁽¹⁾	$ 101,175
Other ⁽²⁾	33,725
Total	$ 134,900	⁽³⁾

Analysis

PPS Contractors, Inc. will provide all labor, materials, supervision, tools, equipment, and incidentals to perform home elevation services at 838 Seneca Park Road to protect the home from flood/storm-related damage. Services to be provided include site preparation, home elevation, construction, and utilities systems connections and extensions.

FM-1 (Contract) (cont’d) November 20, 2017

The contract commences upon Council approval, continues for 6 months, and may be extended an additional 90 days on the same terms and conditions. Compensation may not exceed $134,900 for the entire 9-month term, including the extension period. The Department advised that the contract amount will be increased to comply with additional FEMA requirements and that a revised contract should be in place by the November 20, 2017 Council meeting. This contract was “DEFERRED” at the Council’s November 6, 2017 Council Meeting. The County may terminate the agreement by providing 30 days prior written notice.

The Department advised that as of October 18, 2017, the estimated project cost is $134,900. The County will pay 75% ($101,175) and the homeowner will pay 25% ($33,725) of the cost. The Department also advised that the County has $592,923 available for such flood hazard mitigation projects. The Department further advised that four other Baltimore County property owners took steps to apply for this funding, and that two additional contracts for similar services may be presented for Council approval at a later date.

The Department advised that the homeowner submitted an application to MEMA/FEMA for funding after Hurricane Sandy. MEMA and FEMA approved the application, and the County issued a formal request for bids in November 2015 in order to identify contractors to complete the work. The Department further advised that the solicitation did not attract any bids, and the homeowner identified PPS Contractors, Inc. after the County was unable to find any other contractor whose proposal would not exceed the approved grant funding.

Chief Terrence Sheridan Fiscal Note November 20, 2017

FM-2 (Contract) Council District(s) _All_

Police Department

Accommodations/Food & Beverages – Hostage Negotiation Seminar

The Administration is requesting approval of a contract with Delta Hotels Baltimore Hunt Valley to provide meeting space, food and beverages, and lodging for the annual Police Hostage Negotiation Seminar. The contract commenced October 1, 2017, continues through June 30, 2018, and may be renewed for four additional 1-year periods. The maximum liability to the County is $89,462 for the initial 9-month term and an estimated $449,666 for the entire 4-year and 9-month term, including the renewal periods. The Baltimore County Police Foundation will fund all costs associated with the seminar, including any liquidated damages charged to the County.

Fiscal Summary

Funding Source	Initial Term		Total Compensation		Notes
County	—		—		⁽¹⁾Police Foundation Grant. ⁽²⁾Maximum liability for the initial 9-month term. ⁽³⁾Estimated maximum liability for the entire 4-year and 9-month term.
State	—		—
Federal	—		—
Other ⁽¹⁾	$ 89,462		$ 449,666
Total	$ 89,462	⁽²⁾	$ 449,666	⁽³⁾

Analysis

The Department advised that the Baltimore County Police Foundation and the Baltimore Office of the Federal Bureau of Investigation have sponsored the annual Hostage Negotiation Team Seminar for the past 38 years and have held the seminar at this venue for the past 25 years. The upcoming seminar is scheduled for February 6-7, 2018. The County will pay the costs related to the 2-day seminar, and the Foundation, which will collect a $195 registration fee from each participant, will subsequently reimburse the County for the actual costs incurred. The Department

FM-2 (Contract) (cont’d) November 20, 2017

estimates 750 participants will attend the seminar each year, including approximately 75 County employees. The Department advised that the registration fees for the County employees are absorbed by the Police Foundation’s Hostage Negotiation Team account; therefore, there is no cost to the County.

The $195 registration fee includes two lunches and two continental breakfasts. Lodging is not included in the registration fee and participants must arrange lodging directly with the hotel. The County will receive a credit of one complimentary room night (e.g., for use by seminar speakers) for every 40 room nights utilized for the seminar. The County will also receive a complimentary meeting room rental.

The contract commenced October 1, 2017, continues through June 30, 2018, and may be renewed for four additional 1-year periods. The maximum liability to the County is $89,462 for the initial 9-month term and an estimated $449,666 for the entire 4-year and 9-month term, including the renewal periods. The Baltimore County Police Foundation will fund all costs associated with the seminar, including any liquidated damages charged to the County. The contract provides that the County may terminate the agreement if funds are not appropriated or otherwise made available to support the continuation of the contract.

The contract provides that liquidated damages and other costs will be incurred if certain stipulated commitments are not met as follows:

Guest Room Commitment

The hotel will provide guest rooms for participants at the rate of $122 per night for the first 3 years and $125 per night for the final 2 years of the agreement. The County has guaranteed that 613 room nights will be utilized. In the event that at least 80% of the room nights (i.e., 490 room nights) are not utilized, the County will be responsible for the balance (i.e., the difference between 490 room nights and the actual room nights utilized) at the per night rate, as liquidated damages (at $122, or $59,829, the first 3 years and at $125, or $61,300, the final 2 years).

Food and Beverage Commitment

The hotel will provide food and/or beverages at certain seminar functions (e.g., lunches, breaks, evening reception). The contract guarantees that food and beverage revenue will total at least $52,000. In addition, if the food and beverage revenue for the seminar does not total at least

FM-2 (Contract) (cont’d) November 20, 2017

$52,000, the County will pay 100% of any shortfall. All food and beverage is also subject to a 21% service charge.

In the event that the County cancels within 89 days of the scheduled seminar for a reason other than a circumstance beyond the control of either party, the County will be responsible for liquidated damages totaling 80% of the room and food and beverage commitments as follows:

	Annual Liability Years 1 – 3	Annual Liability Years 4 – 5
613 Room Nights x 80%= 490 Room Nights x $122 per night	$ 59,829	—
613 Room Nights x 80%= 490 Room Nights x $125 per night	—	$ 61,300
Food and Beverage Revenue	52,000	52,000
Total Minimum Revenue per year	$ 111,829	$ 113,300
Annual Maximum Liability to the County (80% of Total Minimum Revenue)	89,462	90,640
Total (Annual Max. Liability x number of years)	$ 268,386	$ 181,280
The estimated maximum liability for the 4-year and 9-month term totals $449,666.

The Department advised that it has always met the guest room and food and beverage commitments for past seminars and expects to meet the commitments in 2018. The Department further advised that it expects the annual cost of the seminar to total approximately $80,000, based on prior years’ experience.

On September 2, 2014, the Council approved a 3-year contract with an estimated maximum liability of $327,240 with Hunt Valley Inn (now known as Delta Hotels Baltimore Hunt Valley) for the same services. Expenditures under this contract totaled $222,810.

The contract was awarded on a sole-source basis. The Department advised that the Delta Hotels Baltimore Hunt Valley is the only hotel in Baltimore County that is able to accommodate the expected 750 participants.

County Charter, Section 902(f), states that when competitive “bidding is not appropriate, a contract shall be awarded only by competitive negotiations, unless such negotiations are not

FM-2 (Contract) (cont’d) November 20, 2017

feasible. When neither competitive bidding nor competitive negotiations are feasible, contracts may be awarded by noncompetitive negotiations.”

County Charter, Section 715, requires that “any contract must be approved by the County Council before it is executed if the contract is…for services for a term in excess of two years or involving the expenditure of more than $25,000 per year….” As previously mentioned, the proposed agreement commenced October 1, 2017. We believe this situation may constitute a violation of the aforementioned section of the County Charter.

Will Anderson Fiscal Note November 20, 2017

FM-3 (Contract) Council District(s) _All_

Department of Economic and Workforce Development

One Stop Operator Services – American Job Centers

The Administration is requesting approval of a contract with KRA Corporation to provide One Stop Operator (OSO) coordination services for the County’s three American Job Centers (formerly known as Career Centers). The contract commenced July 1, 2017, continues through December 30, 2017, and may not exceed $25,000 unless approved by the Council. If approved, the contract will continue through June 30, 2018 and will automatically renew for three additional 1-year periods with the option to further extend the initial term or any renewal term an additional 90 days. The contract does not specify a maximum compensation for the initial 1-year term. Compensation may not exceed $400,000 for the entire 4-year and 3-month term, including the renewal and extension periods. See Exhibit A.

Fiscal Summary

Funding Source	Maximum Compensation		Notes
County	—		⁽¹⁾U.S. Department of Labor funds passed through the Maryland Department of Labor, Licensing, and Regulation. ⁽²⁾Maximum compensation for the entire 4-year and 3-month term, including the renewal and extension periods. The contract does not specify a maximum compensation for the initial 1-year term.
State	—
Federal ⁽¹⁾	$ 400,000
Other	—
Total	$ 400,000	⁽²⁾

Analysis

The federal Workforce Investment Opportunity Act (WIOA) requires that each local workforce area procure a One Stop Operator (OSO) to coordinate effective, customer-centered service delivery by its partner agencies (e.g., Department of Social Services, Community College of Baltimore County, and Maryland Department of Labor, Licensing, and Regulation) at its American Job

FM-3 (Contract) (cont’d) November 20, 2017

Centers (AJCs, formerly known as Career Centers). Baltimore County has three fixed location AJCs (Hunt Valley, Eastpoint, and Randallstown) as well as a mobile center. Each center offers career consultation and referrals to training and education, introductory computer skills classes, résumé preparation and guidance, work spaces and computer equipment to facilitate job searches, and assistance to employers with recruitment, specialized training, and outplacement. The OSO’s responsibilities include coordinating meetings of the Baltimore County Workforce Development Board’s CAREER Team (the collective name of the partner agencies); collecting and analyzing operational data, and preparing and presenting reports; and identifying and sharing best practices in order to better coordinate with workforce development service providers. The Department advised that there were 26,411 visits to the AJCs in FY 2017 and expects approximately the same number in FY 2018.

The contract commenced July 1, 2017, continues through December 30, 2017, and may not exceed $25,000 unless approved by the Council. If approved, the contract will continue through June 30, 2018 and will automatically renew for three additional 1-year periods with the option to further extend the initial term or any renewal term an additional 90 days on the same terms and conditions, unless the County provides notice of non-renewal. The contract does not specify a maximum compensation for the initial 1-year term. Compensation may not exceed $400,000 for the entire 4-year and 3-month term, including the renewal and extension periods. The County may terminate the agreement by providing 30 days prior written notice.

The County awarded the contract through a competitive procurement process, with final terms determined through negotiation. KRA Corporation was the only respondent. The Department advised that the value of services incurred under the contract as of November 9, 2017 is unavailable; the contractor has not submitted invoices for work performed since July 1, 2017.

County Charter, Section 715, requires that “any contract must be approved by the County Council before it is executed if the contract is…for services for a term in excess of two years or involving the expenditure of more than $25,000 per year….” Although the County has not yet paid for services incurred during the contract term to-date, it would appear that the County may have incurred costs greater than $25,000 prior to Council approval ($100,000 ÷ 12 months = $8,333 x 4.5 months = $37,500). We believe this situation may constitute a violation of the aforementioned section of the County Charter.

Council Fiscal Note November 20, 2017

MB-2 (Res. 99-17) Council District(s) _All_

All Councilmembers

Baltimore County Department of Health, et. al. –

Laws, Regulations, and Policies – Opioid Crisis

Resolution 99‑17 requests the Baltimore County Department of Health, in collaboration with Public Safety as well as other County agencies it deems appropriate, to review County laws, regulations, and policies relating to the opioid crisis in Baltimore County, and to make recommendations on the need for additional legislative action by the County Council to combat this ever increasing opioid crisis.

The resolution acknowledges that for the better part of the last decade, the opioid crisis has affected the entire country, including urban, suburban, and rural areas, and has also cut across all demographics and communities, and socio-economic status. The crisis has also affected similar areas in Baltimore County, while also impacting the resources of public safety agencies.

The resolution also acknowledges the efforts that have been made on the State and local levels, with the Maryland General Assembly passing and the Governor signing legislation this year aimed at addressing the opioid crisis, and the Governor declaring a state of emergency and committing additional monies in response to the opioid addiction crisis; and the County Executive committing additional County resources to respond to this alarming epidemic, including the Opioid Intervention Team, and equipping police and EMS personnel with naloxone B a medication designed to reverse opioid overdose.

The resolution recognizes that, while significant resources are being committed to fight the opioid crisis, there is likely more that can be done B specifically mentioning the Asafe stations@ that are being utilized in other jurisdictions. As the Legislative Branch, the Council desires to be a partner with the Administration, and specifically the Health Department and Public Safety agencies, to provide whatever assistance it can legislatively in order to combat this threat to public health.

MB-2 (Res. 99-17) (cont’d) November 20, 2017

As such, Resolution 99-17 requests the Health Department and other County agencies to review the County=s laws, regulations, and policies related to the opioid crisis, and to make recommendations on the need for additional legislative action by the County Council to combat this crisis.

This resolution shall take effect from the date of its passage by the County Council, and copies shall be forwarded to the County Executive=s Office and the Department of Health.

BALTIMORE COUNTY COUNCIL

NOTES TO THE AGENDA

APPENDIX A

Tags: Agenda, Baltimore County, Baltimore County Council, Baltimore County Public Schools, Council Meeting, county council, district 3, Legislation, Legislative Process, Maryland, Pending Legislation, Public Meeting, Towson, wade kach

Wade Kach

BALTIMORE COUNTY COUNCIL

OFFICE OF THE COUNTY AUDITOR

PAGE

LEGISLATIVE SESSION

BILLS – FINAL READING

FISCAL MATTERS

MISCELLANEOUS BUSINESS

APPENDIX

Mr. Quirk (By Req.)

Fire Department

FEMA Fire Prevention and Safety – Smoke Detectors

Fiscal Summary

Funding

County (1)

State

Federal (2)

Other

Total

Analysis

Mr. Quirk (By Req.)

Office of Budget and Finance

Bond Ordinance

Consolidated Public Improvement (CPI) (2019 Series)

Metropolitan District (81st Issue)

Total – General Obligation Bonds

CPI Bond Anticipation Notes (BANs)

Metropolitan District BANs

Total – BANs

CPI/Metro District Bonds (Refunding Series)

Analysis

Mrs. Bevins

Zoning Regulations – Residential Uses in Zones Adjacent to CT Districts

Mr. Kach

Parking

Councilmembers Marks & Bevins

Social Host – Unruly Social Gatherings

FM-1 (Contract) Council District(s) _6_

Department of Planning

Fiscal Summary

Funding Source

Maximum Compensation

Notes

County

State

Federal (1)

Other (2)

Total

Analysis

Police Department

Accommodations/Food & Beverages – Hostage Negotiation Seminar

Fiscal Summary

Funding Source

Initial

Term

Total Compensation

Notes

County

State

Federal

Other (1)

Total

Analysis

Department of Economic and Workforce Development

One Stop Operator Services – American Job Centers

Fiscal Summary

Funding Source

Maximum Compensation

Notes

County

State

Federal (1)

Other

Total

Analysis

All Councilmembers

Baltimore County Department of Health, et. al. –

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County ⁽¹⁾

Federal ⁽²⁾

Metropolitan District (81^st Issue)

Federal ⁽¹⁾

Other ⁽²⁾

Other ⁽¹⁾

Federal ⁽¹⁾