Regular Session

31st Regular Session Mayor and City Council December 19, 2017 Agenda 7:00 PM - December 19, 2017 - REGULAR SESSION -Council Chamber, 2nd floor, City Hall I. CALL TO ORDER Mayor Robert E. Bruchey, II II. INVOCATION Mayor Robert E. Bruchey, II III. PLEDGE TO THE FLAG IV. ANNOUNCEMENTS A. A. Rules of Procedure - Adopted December 20, 2016 B. Use of cell phones during meetings is restricted. C. All correspondence for distribution to Elected Officials should be provided to the City Clerk and should include a copy for the City Clerk for inclusion in the official record. D. Meeting schedule: 1. Tuesday, January 2, 2018 - No Meeting Scheduled 2. Tuesday, January 9, 2018 - Work Session at 4:00 p.m. 3. Tuesday, January 16, 2018 - Work Session at 4:00 p.m. 4. Tuesday, January 23, 2018 - Work Session at 4:00 p.m. 5. Tuesday, January 30, 2018 - Regular Session at 7:00 p.m. V. APPOINTMENTS A. Oath of Office to Councilmember Shelley McIntire B. George C. Newman, III, Board of Zoning Appeals – Term to Expire January 31, 2021 C. Marshall R. Hammer, Hagerstown Loan Review Authority – Term to Expire January 31, 2021 VI. CITIZEN COMMENTS VII. CITY ADMINISTRATOR'S COMMENTS VIII. MAYOR AND COUNCIL COMMENTS IX. MINUTES November 7, 2017, November 14, 2017, November 21, 2017, and November 28, 2017 X. CONSENT A. Parks and Engineering 1. Pool Management Contract for 2018 - Community Pool Service (Rockville, MD) $  92,800.00 2. Approval of Program Open Space Application B. Utilities 1. Utilities: Arista Contract for Utility Bill Mailing - Postage Change Order - Arista Information Systems (Duluth, GA) $ 135,432.00 XI. UNFINISHED BUSINESS A. Approval of an Ordinance: Land Management Code Amendments - Revision to Cluster Subdivision Requirements of Article 4, Section D (Residential Districts) XII. NEW BUSINESS A. Approval of a Resolution: Revisions to the Hagerstown Revolving Loan Fund Guidelines B. Approval of a Resolution: Execution of a Residential Lease Agreement for the City of Hagerstown Property Located at 38 North Potomac Street Apt #2, Hagerstown, Maryland XIII. ADJOURN  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Mayor Robert E. Bruchey, II Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Mayor Robert E. Bruchey, II Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: A. Rules of Procedure - Adopted December 20, 2016 B. Use of cell phones during meetings is restricted. C. All correspondence for distribution to Elected Officials should be provided to the City Clerk and should include a copy for the City Clerk for inclusion in the official record. D. Meeting schedule: 1. Tuesday, January 2, 2018 - No Meeting Scheduled 2. Tuesday, January 9, 2018 - Work Session at 4:00 p.m. 3. Tuesday, January 16, 2018 - Work Session at 4:00 p.m. 4. Tuesday, January 23, 2018 - Work Session at 4:00 p.m. 5. Tuesday, January 30, 2018 - Regular Session at 7:00 p.m. Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Oath of Office to Councilmember Shelley McIntire Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: George C. Newman, III, Board of Zoning Appeals – Term to Expire January 31, 2021 Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Marshall R. Hammer, Hagerstown Loan Review Authority – Term to Expire January 31, 2021 Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: November 7, 2017, November 14, 2017, November 21, 2017, and November 28, 2017 Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Pool Management Contract for 2018 - Community Pool Service (Rockville, MD) $ 92,800.00 Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Motion_-_Complete_Consent_Agenda.pdf Motion - Complete Consent Agenda Parks_-_2018_Pool_Management_Services.pdf Pool Management Contract  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of Program Open Space Application Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Program_Open_Space_(POS)_Annual_Program.pdf POS Memo Concept_Plan_-_Option_B.pdf Concept Plan Drawing  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Utilities: Arista Contract for Utility Bill Mailing - Postage Change Order - Arista Information Systems (Duluth, GA) $ 135,432.00 Mayor and City Council Action Required: Requested approval of the Utilities Department Consent Agenda item for the Arista Postage Expense in the amount of $135,432.00. Discussion: Financial Impact: Recommendation: Staff recommended approval Motion: Consent Agenda Action Dates: Regular Session 121917 ATTACHMENTS: File Name Description Completed Water_-_Arista_Contract.pdf Consent Water_-_Arista_Contract.pdf Consent Agenda Utilities Department Consent Utilities_Department_Consent_Agenda_Arista_Postage_Expense_Contract_Page_121917.pdf Agenda Arista Postage Expense 121917 Utilities Department Consent Agenda Utilities_Department_Consent_Agenda_Arista_Postage_Expense_Contract_Page_1_121917.pdf Arista Postage Expense Contract Page 121917  City of Hagerstown Mayor and City Council Purchase - Contract Information Meeting of: 12/19/2017 Approval For: Consent Agenda: X New Business: Originating Department: Water Department By: Nancy Hausrath 52-74502-5342 Account Number: 50-74503-5329 Account/Project Name: Utility Billing Outsourcing $65,000/ $47,000/ Budget Amount: FY18 $100,000 Account Balance: $68,000 Year: FY18 CIP Control No.: Source Of Funds: Water and Electric Operating Budget Unbudgeted: NA Quantity Description Value Annual Estimated 224,400 Pieces Utility Bill Mailing - Electric $ 85,272.00 Annual Estimated 132,000 Pieces Utility Bill Mailing - Water $ 50,160 Above To Be Used For: Annual postage expense to mail water and electric bills (regular, late notices, termination notices, and final bills) to all customers serviced by City Electric and Water Utilities. The estimated annual cost to mail Utility Bills is $85,272 for electric and $50,160 for Water. The contract with Arista is a Three Year Contract with Two 1-Year Renewal Options (see attachment). An annual Purchase Order will be generated each Fiscal Year during the City's contract with Arista - the amount will be estimated on the number of accounts/bills and the postage rate at time of Purchase Order. Estimated 5-year expense to mail Electric and Water Utility Bills is $677,160 or $135,432 annually. Recommended Vendor: Business Name: Arista Information Systems Address: 2220 Northmont Parkway - Suite 100 City, State: Duluth, GA 30096 Bid/Proposal/Quote No.: NA - Postage Only Expense Other Vendors: Firm City, State Amount  Comments Department Manager (required on all unbudgeted items): Adequate Funding is in place for the Water and Light Funds/Budgets. Annual postage expense is expected to decrease as a result of bill sorting and mailing software. December 4, 2017 Director of Utilities Date December 4, 2017 Water Operations Manager Date Finance Department Signature Date Finance Manager: Signature Date City Administrator's Recommendation: Signature Date  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of an Ordinance: Land Management Code Amendments - Revision to Cluster Subdivision Requirements of Article 4, Section D (Residential Districts) Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Approval of an Ordinance: Land Management Code Amendments - Revision to Ord-Cluster_Amend.pdf Cluster Subdivision Requirements of Article 4, Section D (Residential Districts).  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of a Resolution: Revisions to the Hagerstown Revolving Loan Fund Guidelines Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: hereby move that the Mayor and City Council approve a resolution to adopt revised guidelines for the Hagerstown Revolving Loan Fund Program. The revised guidelines will replace and update obsolete guideline language as recommended by the Hagerstown Loan Review Authority (HLRA) and the City Attorney. The revised guidelines are attached. Action Dates: DATE OF INTRODUCTION: 12/19/2017 DATE OF PASSAGE: 12/19/2017 EFFECTIVE DATE: 12/19/2017 ATTACHMENTS: File Name Description HRLF_Guideline_Revisions_121917.pdf HRLF Guidelines  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of a Resolution: Execution of a Residential Lease Agreement for the City of Hagerstown Property Located at 38 North Potomac Street Apt #2, Hagerstown, Maryland Mayor and City Council Action Required: We are requesting review of a proposed lease agreement for a new artist tenant, Amanda Fairchild and co-occupant Andrew Laxton, at 36-40 N Potomac Street. With the support of the Mayor and City Council at the December 12, 2017 Work Session, staff will seek approval of the lease agreement during the Regular Session on December 19, 2017. Discussion: The City acquired the property in September 2011. The residential renovations were completed in November 2013 creating four (4) artist lofts that were fully occupied by May 2014. Renovations of the gallery space were completed in the Spring of 2015 and Engine Room Art Space opened in June 2015. Key terms and conditions of the proposed lease include: Unit 2: Recommended Artist – Amanda Fairchild and co-occupant Andrew Laxton One year term Lease is for $6,000 annually ($500 monthly) for approximately 800 square feet. Artist tenant shall contribute at least 5 hours of time weekly assisting in the operation of the Engine Room Art Gallery The prospective tenant’s art portfolio was reviewed by the Artist Review and Selection Advisory Group. Staff have worked with the prospective tenant to review all aspects of the proposed lease. A copy of the proposed lease agreement is attached. Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Motion_-_Resolution_for_Lease_Agreement_for_38- Motion - Lease 40_N_Potomac_Street.pdf Agreement Resolution_-_38-40_N_Potomac_Street_#2.pdf Resolution - Lease Agreement DRAFT_Artist_Lofts_Residential_Lease_FAIRCHILD_and_LAXTON.pdf Draft lease Memo_Artist_Lofts_Tenant_Fairchild_and_Laxton_Apt_2.pdf Memo  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND DATE: December 19, 2017 TOPIC: Approval of a Resolution: Execution of a residential Lease Agreement for the City of Hagerstown property located at 38 North Potomac Street Apt #2, Hagerstown, MD. Charter Amendment __ Code Amendment __ Ordinance __ Resolution X Other __ MOTION: I hereby move that the Mayor and City Council approve the attached resolution authorizing the execution of a residential Lease Agreement at the City of Hagerstown property located at 38 North Potomac Street in Hagerstown, MD. The Lease will be between the City of Hagerstown and Amanda Fairchild and Andrew Laxton and shall be in effect from January 1, 2018 to December 31, 2018. DATE OF INTRODUCTION: 12/19/2017 DATE OF PASSAGE: 12/19/2017 EFFECTIVE DATE: 12/19/2017  CITY OF HAGERSTOWN, MARYLAND A RESOLUTION AUTHORIZING THE CITY OF HAGERSTOWN TO ENTER INTO A RESIDENTIAL LEASE AGREEMENT WITH AMANDA FAIRCHILD AND ANDREW LAXTON FOR A PORTION OF THE PROPERTY KNOWN AS THE STUDIOS ON NoPo, 38 NORTH PROSPECT STREET, HAGERSTOWN, MARYLAND RECITALS WHEREAS, the City of Hagerstown owns real property known as The Studios on NoPo, 38 North Prospect Street, Hagerstown, Maryland, upon which artist lofts are located; WHEREAS, a portion of said property is currently available and is intended to be used by Amanda Fairchild and Andrew Laxton, the Tenants, solely for the purposes of residential lease and the creation of art, as set forth in the attached Lease Agreement; WHEREAS, the City of Hagerstown desires to lease a portion of said property (further described in the attached Lease Agreement) to Amanda Fairchild and Andrew Laxton, adult individuals; and NOW THEREFORE, BE IT RESOLVED, by the Mayor and Council of the City of Hagerstown, Maryland as its duly constituted legislative body as follows: 1. That the aforegoing recitals are incorporated herein as if fully set forth. 2. That the City of Hagerstown be and is hereby authorized to enter into a Lease Agreement with Amanda Fairchild and Andrew Laxton, for a portion of the property located at premises known as 38 North Potomac Street, Apartment #2, Hagerstown, Maryland, pursuant to the terms of the Lease Agreement attached hereto and incorporated herein by reference. 3. That the City of Hagerstown be and is hereby authorized to execute and deliver the Lease Agreement attached hereto, and to execute any additional documentation required to effectuate the purposes of this Resolution. BE IT FURTHER RESOLVED, that this Resolution shall become effective immediately upon its approval. WITNESS AND ATTEST MAYOR AND COUNCIL OF THE CITY AS TO CORPORATE SEAL OF HAGERSTOWN, MARYLAND ______________________________ By:__________________________ Donna K. Spickler, City Clerk Robert E. Bruchey, II Mayor Date of Introduction: December 19, 2017 Date of Passage: December 19, 2017 Effective Date: December 19, 2017  Residential Lease THIS LEASE made on the 19th day of December, 2017, between City of Hagerstown, Landlord, and Amanda Fairchild, and Andrew Laxton, Tenants. WITNESSETH, that the Landlord hereby leases to the Tenants and the Tenants hereby lease from the Landlord, premises known as The Studios on NoPo, 38 North Potomac Street, Apartment #2, Hagerstown, Maryland 21740. 1. TERM. This Lease shall be for a term of one year, beginning on the 1st day of January 2018 and ending on st the 31 day of December, 2018. Thereafter, the Tenants shall be considered a month to month, periodic Tenants. 2. RENT. Total annual rent of Six Thousand Dollars ($6,000) payable in equal monthly installments of Five Hundred Dollars ($500) per month in advance on the first day of each and every month of said term, without deduction or demand at the office of the Landlord at the cashier’s office, 1 East Franklin Street, Hagerstown, MD. If this Lease commences on a day other than the first of the month, the pro-rated amount of rent for the balance of the first month shall be paid to the Landlord at the time of possession. Thereafter, rent shall be paid on the first day of each month according to the amounts described above. 3. SERVICE CHARGES. Landlord shall have the right to require rent payments to be made in cash, money order, Cashier's Check and/or certified check. A service charge of $35.00 will automatically be made for each instance in which a check is returned unpaid by the Tenants's bank for any reason. A late Charge of five percent (5%) of the amount of rent due for the monthly rental period shall be assessed for any payment delinquent ten (10) days after the due date. 4. SECURITY DEPOSIT. In addition to payment of the first month’s rent, Tenants, upon the execution of this Lease, will deposit with Landlord the sum of $500 as Security Deposit. If the Tenants have a pet within the guidelines outlined in Section 9 of this lease, an additional $250 shall be collected as the Pet Deposit. This Security Deposit shall be held as security by Landlord for the full and complete performance by Tenants of Tenants’ obligations under this Lease, and shall be applied at the expiration of the term of this Lease, or any extensions, thereof, if any, on account of any unpaid rent, damage due to breach of this Lease or damage to the premises by Tenants, Tenants’ family, agents, or social guests in excess of ordinary wear and tear. In no event, shall Tenants apply the Security Deposit toward any month’s rent due under this Lease, without prior written consent of Landlord. In the event Tenants shall have fully and completely performed Tenants’ obligations under this Lease upon its termination, the Security Deposit shall be refunded to Tenants within forty-five (45) days after the termination of the Lease in accordance with the terms hereof, together with simple interest which shall have accrued in the amount required by State law, currently three percent (3%) per annum, from the receipt of the Security by Landlord. A move-in checklist will be completed by Tenants within three (3) days of moving in and Landlord will use the move-in checklist during the move out inspection to determine if any of the Tenants’ deposit will be retained for cleaning or repairs after move-out. Upon Tenants’ written notification to Landlord of Tenants’ intention to vacate premises, the date of moving and Tenants’ new address, Tenants have the right to be present when Landlord inspects the premises in order to determine the existence of any damages caused during the tenancy. Upon receipt of Tenants’ written notice of Tenants’ intention to vacate premises, Landlord shall notify Tenants in writing of the date and time when the premises are to be inspected. The date of inspection shall occur within five (5) days before or five (5) days after the date of moving as designated in Tenants’ written notice. 1 5. DELIVERY OF POSSESSION. Delivery of possession shall occur only after the first month’s rent and security deposit have been paid to the Landlord. The Landlord shall then tender two key sets for the premises to the Tenants. 6. SUBLEASE. Tenants shall not assign this Lease or sublet the premises, or any portion thereof, or transfer possession or occupancy thereof to any other person or persons without prior written consent of Landlord. 7. OCCUPANTS. Tenants agrees that the premises shall be occupied by the individuals listed below, and as set forth in the NoPo Studio Application, who are specifically declared as follows: • Amanda Fairchild (Tenant) • Andrew Laxton (Tenant) Otherwise, children of the above-listed Tenants are allowed to occupy the premises. Additional persons will be permitted to occupy the Premises only upon written consent of the Landlord. Guests of Tenants will be considered additional occupants of the Premises if any such guest remains on the Premises for more than five (5) days in any 30 day period. Tenants shall notify Landlord immediately if Tenants intends to have a guest for more than five days. 8. THE STUDIOS ON NOPO APPLICATION. In connection with The Studios on NoPo Application, Tenants has submitted asset verification, employment verification, rental verification, and income certification statements, all of which are considered a part of the Studios on NoPo Application. Tenants have also provided authorization for the Landlord to perform credit report check(s) and criminal background check(s) for the household member(s). The parties acknowledge that Landlord relies upon the information given by Tenants in the Rental Application to enter into this Lease, and said information is incorporated herein by reference as fully as if attached hereto. 9. ANIMALS. One cat or dog under 25 pounds is permitted in each studio apartment, after paying the Pet Deposit described above in Section 4. 10. MAINTENANCE, CONDITIONS, NOISE AND ALTERATIONS. (a) Tenants have examined the Premises and all appliances and equipment thereon owned by Landlord, and hereby accepts them in their “AS IS” condition and acknowledges that Landlord has made no representations or warranties, either expressed or implied, as to the condition or use of the Premises. Tenants shall immediately notify Landlord of any defects or dangerous conditions. Tenants shall keep the Premises in good order and condition and shall pay Landlord promptly for any repairs to the Premises or its equipment caused by Tenants’ negligence or misuse or by the negligence or misuse of Tenants’s invitees, licensees or guests. Tenants shall return the Premises and all fixtures, appliances and improvements therein owned by Landlord in substantially the same condition as received, including but not limited to, general cleanliness and upkeep. Tenants acknowledges that Tenants shall pay to Landlord, upon vacating the Premises, expenses as may be incurred to restore the Premises to the condition in which it was delivered to Tenants at the commencement of this Lease, reasonable wear and tear excepted. (b)Tenants shall not make any alterations or additions to the Premises without the prior written consent of Landlord. 2  (c)Tenants shall maintain the premises in a clean and sanitary condition at all times; and complies with all laws, ordinances and regulations, health, fire and police regulations with respect to the Premises. Tenants shall indemnify and save Landlord from all liability arising out of any violation by Tenants of such laws or regulations or arising out of any neglect or any violation or non-performance by the Tenants of any of the covenants contained in this Lease. Landlord shall monitor the condition of the premises and maintenance of the property. If the Tenants is negligent and Landlord incurs cost to maintain property, or be charged fines or fees the Tenants will subsequently be charged for any and all costs incurred and shall be due as additional RENT. (d)Tenants shall keep all plumbing from becoming obstructed due to negligence. NOTE: the sanitary sewer system may only be used for its designed and intended purposes. No diapers, condoms, paper towels, feminine hygiene products, or like materials may be flushed in the sanitary sewer system. If the plumbing becomes obstructed because of Tenants negligence or deliberate acts, Tenants shall pay the costs to have lines cleared. (e) Tenants shall keep noise of occupants and guests and noise from radios, television sets, stereos, etc. to a level of sound that does not annoy or interfere with neighbors. 11. UTILITIES. The Landlord shall provide the utilities listed in Column 1 without any additional charge to the Tenants. The utilities listed in Column 2 are not included in the rent and are to be paid solely by the Tenants. The utilities payable by the Tenants in Column 2 shall be considered additional rent. Column 1 Column 2 Utility Landlord Paid Tenant Paid Heating (Electric) X Hot Water (Electric) X Cooking (Electric) X Lights (Electric) X Water/Sewer/Trash Collection X Phone/Cable TV/Hard-Wired Internet X 12. INSPECTION. Landlord shall have the right to enter the Premises at all reasonable times necessary to inspect the Premises, to control pests and vermin, and to make necessary repairs to and maintain the Premises, including but not limited to, the heating, ventilation and air conditioning systems, the plumbing system, the electrical systems, etc. When practical, the Landlord shall give Tenants a one (1) day posted written notice of its intent to inspect the premises and the approximate time for said inspection. The notice shall be posted to the front door and such posting shall meet all requirements for said notice. In case of emergency, Landlord may enter the premises immediately and without notice to Tenants. During the last 60 days of the term of this Lease or any extension thereof, Landlord or its Agent may enter the premises during daylight hours to exhibit the same, and place a “for rent” or “for sale” sign thereof. 13. USE OF PREMISES. The Premises shall be primarily used for residential and light artistic use, not to include industrial arts. Tenants shall comply with all requirements of the Landlord and by all applicable laws, ordinances, and governmental regulations. No smoking or burning of incense or candles shall be permitted on the premises. 3 14. INDEMNIFICATION. The Tenants agrees to indemnify, exonerate and save the landlord harmless from any and all suits, claims for loss, expenses, damages or injury to person or property sustained on the premises or arising out of the use of the premises by the Tenants or the Tenants’s family, employees, invitees, guests or licensees. 15. HANDBOOK. The Tenants shall be in compliance with all property rules and regulations in the booklet titled, The Studios on NoPo Tenants Handbook, revised 3/2014 and hereby incorporated into this lease by reference and attached as Exhibit 2. 16. ILLEGAL ACTIVITY. Notwithstanding anything which in any way might be construed to the contrary, it shall be deemed to be a material breach of this Lease for Tenants, or any member of the Tenants’s household to engage in and/or to suffer the engagement in any criminal activity, including drug-related criminal activity, on or off the premises, while such Tenants is a Tenants in occupancy of any housing unit under control of Landlord. The term “drug-related criminal activity” shall mean the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance [as defined in Section 102 of the Controlled Substance Act (U.S.C. 802) as amended]. 17. INSURANCE. Tenants acknowledges that Landlord maintains insurance on the Premises, which insurance does not protect the personal property, possessions, or personal liability of Tenants. Tenants must consult her own Agent for insurance protection. It is the responsibility of the Tenants to obtain adequate insurance on personal property of Tenants placed on, in, or about the premises. 18. CASUALTY. (a) If the Premises is damaged or destroyed by fire or other casualty to an extent that the use of the Premises is substantially impaired, Tenants may immediately vacate the Premises and may terminate this Lease upon written notice to Landlord given within ten (10) days of Tenants’s vacation of the Premises. In the event Tenants remains in possession of the damaged Premises, Rent shall be reduced in proportion to the impairment of use of the premises until same are repaired. (b) In the event the Premises are damaged by fire or other casualty, and Landlord elects not to restore, repair and rebuild, Landlord may terminate this Lease by giving written notice to Tenants, whereupon Tenants shall promptly vacate the premises. Rent shall be paid through the date Tenants vacates. 19. CONDEMNATION. (a) If the whole or any part of the Premises shall be taken by any competent authority for public or quasi-public use or purpose, then and in that event, this Lease shall cease and terminate from the date when the possession of the part so taken shall be required for such use or purpose. (b) All damages awarded for such taking shall belong to and be the property of Landlord. Tenants shall not be entitled to any sum from Landlord or the condemning authority as compensation for the loss to the unexpired Term, nor for any other damages. 20. BREACH AND REMEDIES. If Tenants breaches this Lease, Landlord may repossess the Premises pursuant to judicial process, and Landlord shall have other rights as may be allowed by law. Tenants will pay the court costs charged to Landlord for notice sent for non-payment of rent, and Tenants also agrees to reimburse Landlord for all reasonable expenses incurred by Landlord, including attorney’s fees as Additional Rent, if ejectment is ordered by the court. 4 21. ATTORNEY FEES. If Landlord be compelled to incur any expenses including reasonable attorney’s fees in instituting and prosecuting any action or proceeding by reason of any default of Tenants hereunder, the sum or sums so paid by Landlord with all interest, costs, and damages shall be deemed to be additional rent hereunder and shall be due from Tenants to Landlord on the 1st day of the month following the incurring of such respective expenses. Tenants agrees to reimburse Landlord for any reasonable attorney fees incurred by Landlord in enforcing the provisions of this Lease. In the event that Tenants files suit against Landlord in connection with this lease and Tenants is unsuccessful in obtaining a judgment against Landlord, Tenants agrees to pay Landlord’s reasonable attorney fees in defending said suit. 22. EXTENDED ABSENCES. Tenants shall give Landlord prior written notice of any anticipated absence from the premises in excess of seven (7) days, during which absence Landlord may enter the premises as reasonably necessary. In the event Tenants fails to give notification to Landlord of an extended absence in excess of seven (7) days, Landlord may recover actual damages, if any, from Tenants. 23. ENTIRE AGREEMENT. The provisions hereof together with the Rental Application and the Rules and Regulations which are incorporated herein by reference along with any addendum attached hereto and initialed by the parties represent the complete and entire agreement between the parties with respect to the Premises. This Lease cannot be changed or supplemented except by agreement in writing signed by both parties. 24. DEFAULT. If the premises are abandoned or become vacant during the term, the Lessor or its agents may re-enter the same by force or otherwise without being liable to any prosecution therefore and, in addition to any other remedies, re-rent the premises in whole or in part as the agent of the Lessee who in all events shall remain liable for any unpaid rentals for the full term of this Lease. Lessor may receive the rent from any such re-rental applying the same first to the payment of such expenses as the Lessor may incur in re-entering and re-letting, and then to the payment of the rent due hereunder. If any default is made in the payment of the rent due hereunder including utilities, or if any default or violation be made in the performance of any of the covenants and agreements herein contained on the part of the Lessee to be performed, and if such default shall not be cured by the Lessee within fifteen (15) days after receipt by the Lessee of written notice from the Lessor of such default, then the relation of Lessor and Lessee, at the option of the Lessor, shall wholly cease and determine and, in addition to any other remedies, the Lessor may re-enter the premises by force, if necessary, and remove all persons therefrom and distrain for rent, if any be due, and assume and take possession of the premises and Lessee's property therein; and the Lessee, in any such event, expressly waives the service of any notice to Quit or Demand for Possession, but the Lessee shall, nevertheless, remain liable for any unpaid rental for the full term of this Agreement. If any legal process whatsoever shall be issued for the purpose of attaching or taking in execution of any of Lessees’ chattels located on the premises or Lessees’ interest in the premises created by this Agreement, or if Lessee shall petition or have a petition filed against him to be adjudicated a bankrupt or insolvent, and such petition is not removed within ten (10) days, or if a receiver or trustee shall be appointed for Lessee's business or property, or if Lessee shall make a general assignment for the benefit of creditors, or if a corporate reorganization of Lessee or any arrangement with Lessee's creditors shall be approved by a court under any provision of the Federal Bankruptcy law, or if, in any other manner, the Lessees’ interest under this Agreement would otherwise pass to another by operation of law, or if Lessees, without Lessor's prior written consent, shall assign or transfer to another in bulk, and not in the ordinary course of business, a major part of the materials, supplies, merchandise and other inventory, or substantially all of the fixtures and equipment located on the premises, then in any such event, Lessee 5 shall be deemed to have committed a material breach of this Agreement and the Lessor may, at its option, forthwith by written notice re-enter the premises, and re-rent the premises as the agent for the Lessee. Notwithstanding any such action(s) by Lessor, Lessee shall in all events remain liable for any unpaid rental for the full term of this Lease. Lessees hereby expressly waive the benefits of all laws exempting property of any amount or value from levy and sale on execution of distress for rent, or upon any execution under any judgment that may be recovered from rent due under this Agreement. Lessor shall in all events be entitled to the benefit of all provisions of applicable laws respecting the speedy recovery of lands and tenements held over by Tenants or proceedings in forcible entry and detainer. 25. FAILURE TO PERFORM. Tenants covenants that in case Landlord, by reason of the failure of Tenants to perform any of the provisions hereof, shall be compelled to pay or shall pay any sum of money, or shall be compelled to do or shall do any act which requires the payment of money, then the sum or sums so paid or required to be paid, together with all interest, costs and damages, shall be added to the next installment of rent due or to any subsequent installment of rent and shall be collectible as additional rent in the same manner and with the same remedies as if it had been originally reserved. 26. ADDITIONAL ITEMS / REQUIREMENTS. 1. Tenant Fairchild, in addition to rent, commits to assist in the operation of the Art Gallery on the first floor of the premises by contributing time at the Gallery without compensation for a minimum of five (5) hours per week. This obligation shall be scheduled through the Gallery Coordinator. Tenant Fairchild may also display his/her own art in the Gallery, which display shall be subject to the discretion of the Gallery Coordinator. 2. The terms of the Lease shall include the terms of the Tenants Handbook, a copy of which is incorporated herein as Exhibit 2. 4. Attached as Exhibit 1 is a lead paint notification. 5. Attached as Exhibit 3 is the wireless network benefit. 27. CRIME FREE HOUSING. Tenants, any members of the Tenants’ household or a guest or other persons affiliated with the Tenants or affiliated with any member of the Tenants’ household: a. Shall not engage in criminal activity at, on or near the said premises. “Criminal activity” means the commission of any of the acts defined in the Maryland Criminal Law Code Annotated, as from time to time amended. b. Shall not engage in any act intended to facilitate criminal activity and shall not permit the premises to be used for or to facilitate criminal activity, regardless of whether the individual engaging in the activity is a Tenants, a member of the Tenants’s household, a guest, or another person affiliated with the Tenants. c. Violation of the above provisions shall be a material breach of the Lease and good cause for immediate termination of tenancy. Proof of a violation of the Lease hereunder shall not require a criminal conviction, but shall be by a preponderance of the evidence. 6 28. MODIFICATIONS. The provisions contained in this Lease shall not be changed or modified without express consent of Tenants and Landlord. 29. SEVERABILITY. In the event that any term or condition of this Lease shall be determined to be void or unenforceable for any reason, then notwithstanding such determination, the balance of this Lease shall nonetheless remain in full force and effect and be construed and applied as though that term or condition was not contained herein. This Lease contains the entire understanding between the parties hereto. There are no representations, warranties or agreements concerning the subject matter of this Lease other than as expressly set forth herein. LANDLORD: The City of Hagerstown TENANT: Amanda Fairchild Signed: _______________________________ _______________________________ Print: Robert E. Bruchey, II Title: Mayor of the City of Hagerstown TENANT: Andrew Laxton Witness: Witness: ___________________________________ _____________________________ 7  Exhibit 1 LEAD-BASED PAINT DISCLOSURE Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards Lead Warning Statement: Every Tenants of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Landlord of any interesting residential real property is required to provide the Tenants with any information on lead-based paint hazards from risk assessments or inspections in the Landlord’s possession and notify the Tenants of any known lead- based paint hazards. A risk assessment or inspections for possible lead-based paint hazards is recommended prior to occupancy of the rental property. Landlord’s Disclosure (initial) _____ (a.) Presence of lead-based paint and/or lead-based hazards (check one below): ( X ) Known lead-based paint and/or lead based paint hazards are present in the housing (explain). Structure was constructed prior to 1950 and it is likely that lead based paint was used in building components at that time. ( ) Landlord has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b.) Records and reports available to the Landlord (check one below): ( ) Landlord has provided the Tenants with all available records and reports pertaining to lead-based paint and/or lead based paint hazards in the housing (list documents below). ___________________________________________________ ___________________________________________________ (X) Landlord has no reports or records pertaining to lead-based paint and/or lead-based hazards in the housing. Tenants’s acknowledgement (initial) ______ (c.) Tenants has received copies of all information listed above. ______ (d.) Tenants has received the pamphlet Protect Your Family From Lead in Your Home ______ (e.) Tenants has received a copy of the lead inspection certificate from Landlord (to be delivered to the Tenants upon receipt in March 2017). ______ (f.) Tenants has received a copy of the Notice of Tenants’ Rights, a Maryland Department of Environment publication from Landlord, as required by Annotated Code of Maryland, Environment Section 6-820. 8 Certification of Accuracy By signing this lease, the parties agree that they have reviewed the information above and certify; to the best of their knowledge, that the information provided by the signatory is true and accurate. LANDLORD: The City of Hagerstown TENANT: Amanda Fairchild Signed: _______________________________ _______________________________ Print: Robert E. Bruchey, II Title: Mayor of the City of Hagerstown TENANT: Andrew Laxton Witness: Witness: ___________________________________ _____________________________ 9  Exhibit 2 The Studios on NoPo Tenants Handbook Welcome to the Studios on NoPo! This Tenants handbook has been created for easy reference of answers to anticipated questions. Maintenance Requests: Please see the Residential Maintenance Request Information at the end of this handbook. Common Areas: The second floor lounge is considered a common area. Tenants are encouraged to use this area to enhance the enjoyment of their stay. Noise: All residents and guests of the Studios on NoPo must conduct themselves in a respectful manner to the other residents and guests. Noise levels must be reasonable so as to not impair the quiet enjoyment of the other residents. Entrance Vestibule: The entrance area is a common space. Tenants shall not change, alter, decorate or store any items in this area. Landscaped Areas: The Landlord will maintain all landscaped areas. Tenants are not permitted to alter or change any landscaping without prior permission from the Landlord. At no time shall a planter, plant or support for a plant be attached to the structure or any component of the structure without prior permission from the Landlord. Sanitation - Exterior of Structure: The Landlord shall maintain the exterior of the structure in a clean and sanitary manner. Tenants are responsible for ensuring that all household rubbish and garbage is secured in leak proof containers. Grocery or similar bags cannot be used for the temporary storage of rubbish and garbage. Additionally, Tenants are responsible for the timely removal of any litter caused by said Tenants or their guests. Recycling: The City of Hagerstown offers numerous recycling programs. The Landlord encourages all Tenants and their guests to participate in the recycling programs. Exterior Storage: Tenants are prohibited from storing (temporarily or long-term) any items outside their dwelling unit. Boxes, household items, cleaning instruments, and other such personal items must not be stored on the exterior of the structure. Items left in the common areas and entrance vestibule will be considered discarded. As such they will be disposed of at the Tenants’s expense. Stickers, flags, banners, signs, posters, or similar items: Such items are prohibited on the exterior of your dwelling unit or affixed to the interior of the unit in such a manner as to intend them to be visible on the exterior of the structure. Smoking/Burning: Smoking is ONLY permitted at the exterior rear area of premises. Candles, Incense or similar burning devices: Use of these or any such item is prohibited. 10 Clothes lines, exterior blinds or similar items: These items are prohibited. Pets: Pets are permitted, as outlined in the Lease Agreement. Yard Sales, Flea Markets, and Porch Sales: Permission must be obtained from the Landlord prior to conducting any such sale on the premises. Window Treatments: Mini-blinds are provided for each window. Tenants may add window treatments with permission of the Landlord. However, such window treatments must be designed and constructed for that purpose. Window treatments visible to the exterior of the structure shall not contain any messages, (written or drawn). Sheets, blankets, drawn characters, or items considered signs shall not be used as additional window treatments. The mini-blinds shall not be removed without prior permission from the Landlord. City, State, and Federal Laws, Codes, Ordinances: Tenants and their guest must comply with any and all laws, codes, and ordinances. Any costs incurred by the Landlord for the Tenants violating the above shall be billed as rent on the next following month. These rules are hereby incorporated into the lease and are part of said lease. Violations of rules and regulations constitute a material violation of said lease. Acknowledge of Receipt __________________________ Tenant Amanda Fairchild __________________________ Tenant Andrew Laxton Rev. 3/2014 11  Exhibit 3 WIRELESS NETWORK BENEFIT A wireless internet connection is available via a secured network to the Tenants of the Studios on NoPo at 38 North Potomac Street, Hagerstown, MD. This access is for the exclusive benefit of our Tenants, with the following understandings: • The access of this network is not to be used for any commercial venture or any illegal activity. • The use of this wireless network is not and will not be included in the lease agreement. • The owners may at any time without cause or notice eliminate access to this network. The Tenants is prohibited from giving others the access code to this secured network. • The owners do not warrant against any damage or injury from the use of or access to the internet via this connection. The Tenants assumes all risk associated with use of the internet and releases, indemnifies, and holds harmless the owners in regards to internet access, the Tenants’s computer and associated components and related activities. RELEASE, INDEMIFICATION AND HOLD HARMLESS AGREEMENT Whereas, The City of Hagerstown, hereinafter known as the “owners” desire to make available to the Tenants of the Studios on NoPo, Secured Network Wireless Internet, and Whereas, the herein named Tenants desires to use said Secured Network Wireless Internet, the Tenants hereby releases the owners, their agents or assignees of any and all liability either real or perceived arising from damage to personal property or personal injury in gaining access to or the use of said Secured Network Wireless Internet. The Tenants hereby releases, indemnifies, and holds harmless the owners in reference to the herein described activity. The Tenants further acknowledges that access to and use of said Secured Network Wireless Internet is not a requirement of any lease or other written or verbal agreement. Further that the access to and use of said Secured Network Wireless Internet may be terminated by the owners without notice or cause. Further, Tenants agrees and affirms that the Tenants shall follow all laws associated with internet use and use ordinary care in the access of the Secured Network Wireless Internet. The Tenants agrees and affirms that any and all damage caused to The Studios on NoPo, equipment or building systems by the Tenants’s unlawful use of the internet shall be the sole responsibility of the Tenants. ______________________________________ __________________ Tenant ______________________________________ __________________ Tenant ____________________________________ __________________ City of Hagerstown Date Rev. 3/2014 12  CITY OF HAGERSTOWN, MARYLAND Department of Community and Economic Development To: Valerie Means, City Administrator From: Amanda Whitmore, Downtown Coordinator Date: December 6, 2017 RE: Approval of New Residential Lease for 36-40 N Potomac Street Unit 2 We are requesting review of a proposed lease agreement for a new artist tenant, Amanda Fairchild and co-occupant Andrew Laxton, at 36-40 N Potomac Street. With the support of the Mayor and City Council at the December 12, 2017 Work Session, staff will seek approval of the lease agreement during the Regular Session on December 19, 2017. Key terms and conditions of the proposed lease are listed below. Key terms and conditions of the proposed lease include: Unit 2: • Recommended Artist – Amanda Fairchild and co-occupant Andrew Laxton • One year term • Lease is for $6,000 annually ($500 monthly) for approximately 800 square feet. • Artist tenant shall contribute at least 5 hours of time weekly assisting in the operation of the Engine Room Art Gallery The prospective tenant’s art portfolio was reviewed by the Artist Review and Selection Advisory Group. Staff have worked with the prospective tenant to review all aspects of the proposed lease. A copy of the proposed lease agreement is attached. Additional Background The City acquired the property in September 2011. The residential renovations were completed in November 2013 creating four (4) artist lofts that were fully occupied by May 2014. Renovations of the gallery space were completed in the Spring of 2015 and Engine Room Art Space opened in June 2015. Attachments: Draft lease for Amanda Fairchild and Andrew Laxton c. Jill Frick, Director of DCED Eric Deike, Director of Public Works Michelle Hepburn, Director of Finance ______________________________________________________________________________ 14 N. Potomac Street, Suite 200A Hagerstown, MD 21740 (301) 739-8577 Ext. 111