BALTIMORE COUNTY COUNCIL

NOTES TO THE AGENDA

LEGISLATIVE SESSION 2016

Issued: November 10, 2016

Work Session: November 15, 2016

Legislative Day No. 20 : November 21, 2016

The accompanying notes are

compiled from unaudited

information provided by

the Administration and

other sources.

OFFICE OF THE COUNTY AUDITOR

BALTIMORE COUNTY COUNCIL

November 21, 2016

NOTES TO THE AGENDA

TABLE OF CONTENTS

Mr. Marks

Zoning Regulations – Riding Stables

Bill 76-16 permits a riding stable to be located in a R.C. 5 (Rural Residential) Zone as a matter of right under certain conditions.

A riding stable is defined as a building where riding horses are boarded or kept for hire. A riding stable is permitted in a variety of zones by special exception. Bill 76-16 proposes to permit this use by right in a R.C. 5 Zone if it is located more than 200 feet from a residential property line and to permit this use by special exception in a R.C. 5 Zone if it is located within 200 feet of a residential property line.

Bill 76-16 will take effect 45 days after its enactment.

Council Fiscal Note November 21, 2016

Bill 77-16 Council District(s) _All_

Mr. Marks

Public Works – Notification

Bill 77-16 requires the Director of Public Works to give prior notice of certain road projects.

Specifically, before beginning any project for the construction or resurfacing of any road, highway, or alley, the Director of Public Works must:

$ Provide written notification of the project to the County Councilmember in whose district the project is located; and

$ Post notice of the project on the County website.

Additionally, on or before June 1 of each year, the Director shall provide a list to each Councilmember of road resurfacing projects in the member=s district.

Bill 77-16 will take effect 45 days after its enactment.

Steve Walsh Fiscal Note November 21, 2016

FM-1 (2 Contracts) Council District(s) All_

Department of Public Works

Snow Removal and Deicing Services

The Administration is requesting approval of contracts with Rite Enterprises, LLC and Cuttin’ It Close Services, LLC to provide on-call snow removal and salt application services. The contracts commenced November 1, 2016, continue through April 30, 2017, and may be renewed for 9 years (November 1 through April 30 constitutes a snow season). Compensation for the two contracts, together with all other contracts for these services, may not exceed the amount appropriated for snow removal and salt application services during the entire 9-year and 6-month term of the agreements.

Fiscal Summary

Funding Source	Initial Term		Maximum Compensation
County	*		*
State	—		—
Federal	—		—
Other	—		—
Total	*	⁽¹⁾	*	⁽²⁾
⁽¹⁾The hourly rates are $160 for Rite Enterprises, LLC and $100 and $110 for Cuttin’ It Close Services, LLC, depending on the type of equipment provided, with no specified maximum compensation. The contracts, together with all other contracts for these services, are limited in the aggregate to the amount appropriated for snow removal and salt application services. The contract amounts are not reasonably estimable at this time. ⁽²⁾Maximum compensation together with all other contracts for these services for the entire 9-year and 6-month term, including renewals, may not exceed the amount appropriated for snow removal and salt application services each year. The amounts are not reasonably estimable at this time.

FM-1 (2 Contracts) (cont’d) November 21, 2016

Analysis

In accordance with the Department’s snow removal plan, responsibility for most Priority 1 routes (i.e., roads with traffic volumes of at least 10,000 vehicles per day) will be assigned to contractors, allowing the County to focus its efforts on subdivision streets more quickly.

The contracts commenced November 1, 2016, continue through April 30, 2017, and may be renewed for 9 years on the same terms and conditions, unless the County provides notice of non-renewal. A snow season begins November 1^st and ends April 30^th. The contracts do not establish a fixed dollar amount; rather, the contracts state that the compensation paid to all contractors providing snow removal and salt application services may not exceed the amount appropriated during the entire term of the agreement. The Department advised that an estimated amount for each contract is undeterminable due to the unpredictable nature and timing of snow falls (i.e., density and depth of snow falls, number of snow falls occurring during the season). The County may terminate the agreements by providing 30 days prior written notice.

The FY 2017 budget for the Storm Emergencies Program totals $5,986,000, including $1,100,000 for contractual snow removal services. The Department advised that snow removal expenditures for FY 2016 totaled approximately $15.6 million, including approximately $8.9 million for contractual services.

Rite Enterprises, LLC will provide one tri-axle dump truck with a plow and spreader at an hourly rate of $160. Cuttin’ It Close Services, LLC will provide five 1-ton pick-up trucks with plows and spreaders at an hourly rate of $110 and two skid steers at an hourly rate of $100. Each contractor will be paid based on the actual hours the equipment is in service, including up to 2 hours for travel time (1 hour each to and from the County highway shop). Additionally, the minimum work shift for any dispatched truck is 4 hours. The County will provide all rock salt for spreading on road surfaces.

The Office of Budget and Finance, Purchasing Division advised that the pricing and contract terms are based on similar contracts established by the State of Maryland. However, hourly rates may be changed at the time of each annual renewal based on the state’s rates in effect at that time. The state contract includes an additional incentive payment to each contractor after the snow season ends in the amount of $500 per truck if the contractor was available and present for all snow events. The County’s contract also includes this incentive payment.

FM-1 (2 Contracts) (cont’d) November 21, 2016

In procuring these services, the Department requested and received a waiver of a sealed bid process from the Administrative Officer due to the competition with surrounding jurisdictions. Accordingly, each contractor was selected on a non-competitive basis.

For the 2016/2017 snow season, the Department advised that approximately 246 pieces of snow removal equipment (e.g., trucks, loaders, backhoes, and graders) are available from its Bureau of Highways and Equipment Maintenance and Bureau of Utilities, the Department of Recreation and Parks, and the Department of Education. The County currently has contracts with 54 contractors, excluding these two contractors, which provide approximately 259 pieces of equipment.

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….”

Thomas Joseph Fiscal Note November 21, 2016

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

Department of Aging

Transportation Services – Disabled/Elderly

The Administration is requesting approval of a contract with Med-Care Transportation, LLC to provide short-distance transportation services to eligible CountyRide clients primarily for ambulatory and non-ambulatory trips of 2 miles or less. The contract commenced August 1, 2016, continues through December 31, 2016, and may not exceed $25,000 unless approved by the Council. If approved, the contract will continue through July 31, 2017 and will automatically renew for four 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. Estimated compensation totals $50,000 for the initial 1-year term. Compensation may not exceed $275,000 for the entire 5-year and 3-month term, including the renewal and extension periods. See Exhibit A.

Fiscal Summary

Funding Source	Initial Term		Maximum Compensation		Notes
County	—		—		⁽¹⁾ Maryland Department of Transportation, Maryland Transit Administration funds. ⁽²⁾ Estimated compensation for the initial 1-year term. The contract does not specify a maximum compensation for the initial 1-year term. ⁽³⁾ Maximum compensation for the entire 5-year and 3-month term, including the renewal and extension periods.
State⁽¹⁾	$ 50,000		$ 275,000
Federal	—		—
Other	—		—
Total	$ 50,000	⁽²⁾	$ 275,000	⁽³⁾

Analysis

The CountyRide program provides specialized transportation services to Baltimore County residents 60 years of age or older, persons with disabilities ages 18 to 59, and rural residents of

FM-2 (Contract) (cont’d) November 21, 2016

any age who have limited access to proper public, private, or commercial transportation. Transportation is provided primarily by 8- and 12-passenger vehicles that operate Monday through Friday, from 8:00 a.m. until 4:00 p.m. Destinations include medical appointments, shopping, and other general purpose trips. Fares range from $2.50 to $6.00 each way, depending on whether the destination is within the County or crosses the City-County line.

The Department advised that the proposed contract will provide an expansion of the CountyRide program. Under the proposed contract, the contractor will provide short-distance taxi services for CountyRide clients primarily for ambulatory and non-ambulatory trips of 2 miles or less within the program’s operating hours. The Department previously advised that its research had shown that using 8- and 12-passenger vehicles was less efficient for short distances. Rates to be charged must reflect the current metered rates approved by the Maryland Public Service Commission; the Commission must approve any price increase in metered rates. The Department advised that these services will increase its capacity and expand client services, especially at much-needed peak operational times. The Department advised that in FY 2016, the program provided 44,750 trips and served 3,168 clients. The Department estimates that with the proposed services, an additional 1,200 trips will be provided and 100 clients will be served annually.

The contract commenced August 1, 2016, continues through December 31, 2016, and may not exceed $25,000 unless approved by the Council. If approved, the contract will continue through July 31, 2017 and will automatically renew for four 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. Estimated compensation totals $50,000 for the initial 1-year term. Compensation may not exceed $275,000 for the entire 5-year and 3-month term, including the renewal and extension periods. The Department expects expenditures of approximately $4,000 prior to Council approval. The County may terminate the agreement by providing 30 days prior written notice. The contract also stipulates that the Maryland Transportation Authority may terminate the agreement in whole or part at any time by providing written notice.

The contract was awarded through a competitive procurement process based on low bid from two bids received.

FM-2 (Contract) (cont’d) November 21, 2016

Amy Grossi Fiscal Note November 21, 2016

FM-3 (Contract) Council District(s)_2_

Department of Permits, Approvals and Inspections

Drainage/Utility Easement

The Administration is requesting approval of a contract with Reservoir Limited Partnership, Hooks Lane Executive Park Office Condominium Council, Inc., and Michael D. Moriarty, Trustee, of the State of Maryland to acquire property totaling approximately 0.671 acre for $175,386. The property, which is located in the Hooks Lane Executive Park at 8 Reservoir Circle in Pikesville, will be used for the installation of a new parallel discharge water main for increased safety and reliability. The property is zoned R.O. (Residential Office) and will be used for a drainage and utility easement area. See Exhibit A.

Fiscal Summary

Funding Source	Purchase Price	Notes
County ⁽¹⁾	$ 175,386	⁽¹⁾Capital Projects Fund (Metropolitan District).
State	—
Federal	—
Other	—
Total	$ 175,386

Analysis

Robert W. Kline, staff appraiser, completed an appraisal of the property in January 2016, recommending a value of $175,386. After review and analysis, S. David Nantz, review appraiser, concurred with the appraisal and recommended the respective amount as just compensation for the acquisition. The Department of Permits, Approvals and Inspections – Real Estate Compliance Division advised that the property owner accepted the County’s offer.

FM-3 (Contract) (cont’d) November 21, 2016

The 0.671-acre property to be acquired is part of a 7.07-acre parcel of land identified as Hooks Lane Executive Park, which is improved with five multiple-tenant detached office buildings, driveways, sidewalks, and asphalt-paved parking lots. The construction contractor will be responsible for completely restoring any impact to the existing parking lot paving and landscaping.

The Department of Public Works advised that the new 42-inch parallel discharge water main is sized to completely replace the existing main in the event of failure and is being installed for increased safety and reliability. The Department also advised that this water main will run from the Pikesville Water Pumping Station (inside the I-695 Beltway), cross under the Beltway, and travel north to Old Craddock Lane, where it will connect to an existing 36-inch main. This project will provide service to all of Owings Mills, Randallstown, and Reisterstown.

Estimated project costs total $11,871,572, including $10,770,000 for construction and $919,186 for engineering costs. As of November 2, 2016, $919,501 has been expended/encumbered for this project, excluding the cost of this acquisition. The Division advised that construction will begin in April 2018 and is expected to be completed in August 2019. The Division also advised that this is the only property acquisition needed for this project.

County Charter, Section 715, requires Council approval of real property acquisitions where the purchase price exceeds $5,000.

Mike Field Fiscal Note November 21, 2016

MB-1 (Res. 121-16) PILOT Council District(s)_7_

Mrs. Almond (By Req.)

Office of Law

Payment in Lieu of Taxes – Lyon Homes Preservation LLC

Resolution 121-16 authorizes the County to enter into a 10-year agreement with Lyon Homes Preservation LLC for stipulated payments-in-lieu-of-real-property-taxes (PILOT) in order to provide financial assistance for a mixed-income housing redevelopment project located at 411 New Pittsburg Avenue in Turner Station in Dundalk. On September 6, 2016, the Council approved Resolution 83-16 which authorized the PILOT agreement. However, the Administration advised that the resolution contained an error regarding the tax payment provisions. Resolution 121-16 is being resubmitted with the correct provisions with all other terms and conditions the same. See Exhibit A.

Fiscal Summary

Funding Source	Property Tax Reduction
County	$ 2,566,399	⁽¹⁾
State	—
Federal	—
Other	—
Total	$ 2,566,399
⁽¹⁾ Estimated net present value of property tax loss over the 10-year term of the PILOT agreement.

MB-1 (Res. 121-16) PILOT (cont’d) November 21, 2016

Analysis

New Pittsburg Avenue, LLC currently owns the 242-unit Lyon Homes mixed-income rental housing complex located at 411 New Pittsburg Avenue in Turner Station in Dundalk. In December 2016, Lyon Homes Preservation LLC will acquire and begin the substantial rehabilitation of 118 units (9 one-bedroom units; 85 two-bedroom units; and 24 three-bedroom units). One hundred of these rehabilitated units, including 29 project-based voucher units for individuals with disabilities, will be reserved for households whose incomes do not exceed 80% of the area median income ($69,360 for a four-person household). (The Department of Planning advised that the complex’s remaining 124 units may be rehabilitated in the future, depending on the availability of state financial assistance.)

Improvements to the approximately 100-year old units include:

Renovation of interiors and exteriors to become certified lead-free housing;
Installation of new kitchens and bathrooms;
Installation of central HVAC systems;
Installation of energy efficient appliances and upgraded windows and doors;
Addition of washer/dryer hookups in each unit;
Upgrades of electrical and plumbing systems;
Improvements to the exterior facades, brick work, and porches;
Creation of a community center for resident meetings/activities; and
Expansion of landscaping and installation of community gardens and outdoor community spaces.

Construction is expected to take 1 year to complete. The Department advised that vacant units will be renovated first in order to accommodate the temporary relocation of existing tenants.

On September 6, 2016, the Council approved Resolution 83-16 which authorized the County to enter into a 10-year PILOT agreement with Lyon Homes Preservation LLC. The resolution provided for payments totaling $200 per unit in the first year that would increase 3% annually in years 2-5, and payments totaling $300 per unit in year 6 that would increase 3% annually in years 7-10. However, the Administration advised that the 3% annual increases were an error.

MB-1 (Res. 121-16) PILOT (cont’d) November 21, 2016

Resolution 121-16 authorizes the County to enter into a 10-year PILOT agreement with Lyon Homes Preservation LLC effective July 1, 2018 with payments-in-lieu-of-taxes in the amount of $200 per unit for the first 5 years, and increasing to $300 per unit for the second 5 years. If the property is transferred or sold subject to the governing Declaration of Covenants and the PILOT agreement, the payments will increase by 4% per year. The PILOT agreement will reduce County real property tax revenue for the earlier of 10 years or as long as the developer continues to operate the facility as low-income housing. The PILOT agreement states that the property owner shall make annual payments at the end of each calendar year, and the tax payment shall be made prior to payment of any debt service on the property.

The Department of Planning also advised that the total estimated project cost has increased from $25,941,998 to $27,711,017. Estimated PILOT-generated revenue is $281,221 less than the estimated County property tax revenue amount in the first year. PILOT-generated revenue is estimated to be a net present value amount of $2,566,399 less than the County property tax amount over 10 years (assuming that payments are $200 per unit in years 1-5 and $300 per unit in years 6-10; the initial assessed value of the property is equal to the project cost of $27,711,017; the property value is to increase by 3% per year; and the present-value discount rate equals 5% per year). Should the property no longer be used as low-income housing, all foregone County property taxes would accrue from the date of the change in usage.

Estimated project costs total approximately $27.7 million and will be financed as follows:

Federal Low Income Housing Tax Credits	$ 15,448,455
M&T Realty Corporation Loan	8,340,337
Maryland Department of Housing and Community Development Rental Housing Funds	2,000,000
Multifamily Energy Efficiency and Housing Affordability Program Weatherization Assistance Program Loan (State funds)	960,325
Baltimore County CDBG Loan (federal funds)	500,000	*
Baltimore County Lead Safe Grant (federal funds)	461,900
Total	$ 27,711,017
* Approved by Council on September 6, 2016 per Resolution 84-16

MB-1 (Res. 121-16) PILOT (cont’d) November 21, 2016

The Annotated Code of Maryland, Tax-Property Article, Section 7-506.1 exempts certain subsidized rental housing projects from property taxation if the owner and governing body of the County agree to negotiated payments in lieu of real property taxes.

Council Fiscal Note November 21, 2016

MB-4 (Res. 124-16) Council District(s)_All_

Mr. Quirk

Community Development Corporations

Resolution 124-16 asks the Planning Board to develop a strategy to assist Baltimore County communities with investigating the possibility of creating Community Development Corporations.

Community Development Corporations, or CDCs, are locally based tax-exempt, non-profit corporations that promote physical and social improvements in communities. They can be established by community residents, local small business owners, religious congregations and leadership, members of civic associations, and others to promote the revitalization of their community. CDCs can perform a wide variety of roles, such as housing, commercial and retail development, community planning, providing social services, health education, workforce development, and assisting with community improvement programs such as improved lighting and streets.

There are currently only a few CDCs in the County, but there are more communities that might benefit from the programs that are available to them.

The County Council believes that the County can play a role in assisting communities with investigating the establishment of additional CDCs in Baltimore County so that these organizations can avail themselves of the programs that are available from the Maryland Department of Housing and Community Development to benefit the neighborhoods that are within the CDC.

Resolution 124-16 asks the Baltimore County Planning Board to develop a strategy to assist Baltimore County communities with investigating the possibility of creating CDCs and to assist CDCs in availing themselves of the benefits of the various programs offered by the Maryland Department of Housing and Community Development. It further asks the Planning Board to consult with the leadership of all CDCs that currently operate in the County, as well as other organizations that can assist in developing such a strategy for the County.

Council Fiscal Note November 21, 2016

MB-5 (Res. 125-16) Council District(s)_All_

Mr. Quirk

Medication & Supplies for Treatment of Diabetes

Resolution 125-16 asks the Maryland General Assembly to review the laws and practices relating to the provision of medical insurance coverage for medication and supplies required for the treatment of diabetes.

Nearly 29 million people in the United States have diabetes, and according to the Centers for Disease Control and Prevention, about 1.9 million people aged 20 years or older were newly diagnosed with diabetes in 2010 in the United States. The CDC data report released in 2008 confirmed that diabetes is the largest and fastest growing chronic disease in the nation.

Most states have recognized the major effects diabetes has, both in its impact on patients and on society. As of 2016, 46 states and the District of Columbia have some law that requires health insurance policy coverage for diabetes treatment. Most states require coverage for direct treatment as well as for diabetes equipment and supplies that are often used by the patient at home. Insurance coverage of prescription medications for diabetes, including insulin and supplies, such as test strips for glucose monitors, lancets and meters, is essential to this medical treatment.

Maryland law requires that insurers, nonprofit health service plans, and HMOs provide coverage for all medically appropriate and necessary diabetes equipment, supplies, and outpatient self-management training and educational services, if certified by an insured=s physician as necessary for the treatment of diabetes. The coverage required by the state may be subject to annual deductibles or coinsurance requirements imposed by the insurer for similar coverages under the same health insurance policy or contract.

However, the types of equipment and supplies covered by insurers and the deductible or co-pay amounts required to be paid by the insured vary greatly, as do the retail prices charged by pharmacies and other retailers.

MB-5 (Res. 125-16) (cont’d) November 21, 2016

Resolution 125-16 asks the Senate Education, Health and Environmental Affairs Committee and the House Health and Government Operations Committee to review the laws, regulations, and enforcement mechanisms applicable to insurance companies, drug companies, and retailers, all of which participate in the provision of diabetes equipment, supplies, and training, in order to bring some certainty and fairness of treatment to all Maryland residents who suffer from diabetes. It also asks the Maryland General Assembly to consider a requirement that all insurance plans, including self-funded plans, provide coverage for test strips for glucose monitors as a preventative measure and with first dollar coverage.

Council Fiscal Note November 21, 2016

MB-6 (Res. 126-16) Council District(s)_1_

Mr. Quirk

Regional Institution Strategic Enterprise (RISE) Zone – UMBC

Resolution 126-16 expresses the Council=s support of an application to be filed with the Maryland Department of Commerce by the University of Maryland at Baltimore County for the designation of a Regional Institution Strategic Enterprise (RISE) Zone.

The RISE Zone Program was created by the Maryland General Assembly in 2014. The purpose of the Program is to access institutional assets that have a strong and demonstrated history of commitment to economic development and revitalization in the communities in which they are located. Qualified institutions and local governments develop a targeted strategy to use the institutional assets and financial incentives to attract businesses and create jobs within the zone.

The University of Maryland at Baltimore County was accepted by the state as a qualified institution in 2015. Now, the University is applying for the designation of a RISE Zone at the University=s research and technology parks, with property located at 5520-5525 Research Park Drive in Catonsville and at 1442-1450 South Rolling Road in Halthorpe.

Qualified businesses located in a RISE Zone are eligible for tax credits.

This resolution shall take effect from the date of its passage by the County Council.

Tags: Agenda, Baltimore County, Baltimore County Council, Bill, district 3, Meetings, Pending Legislation, Public Meeting, Timonium, 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. Marks

Zoning Regulations – Riding Stables

Mr. Marks

Public Works – Notification

FM-1 (2 Contracts) Council District(s) All_

Department of Public Works

Snow Removal and Deicing Services

Fiscal Summary

Funding Source

Initial Term

Maximum Compensation

County

State

Federal

Other

Total

FM-1 (2 Contracts) (cont’d) November 21, 2016

Analysis

In accordance with the Department’s snow removal plan, responsibility for most Priority 1 routes (i.e., roads with traffic volumes of at least 10,000 vehicles per day) will be assigned to contractors, allowing the County to focus its efforts on subdivision streets more quickly.

FM-1 (2 Contracts) (cont’d) November 21, 2016

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

Fiscal Summary

Analysis

FM-2 (Contract) (cont’d) November 21, 2016

FM-2 (Contract) (cont’d) November 21, 2016

Department of Permits, Approvals and Inspections

Drainage/Utility Easement

Fiscal Summary

Funding Source

Purchase Price

Notes

County (1)

State

Federal

Other

Total

Analysis

Mrs. Almond (By Req.)

Office of Law

Payment in Lieu of Taxes – Lyon Homes Preservation LLC

Analysis

Mr. Quirk

Community Development Corporations

Mr. Quirk

Medication & Supplies for Treatment of Diabetes

Mr. Quirk

Regional Institution Strategic Enterprise (RISE) Zone – UMBC

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