Work Session

Mayor and Council November 19, 2013 Agenda "A diverse, business-friendly, and sustainable community with clean, safe and strong neighborhoods." "Providing the most efficient and highest-quality services as the municipal location of choice for all customers." "Let nature be your teacher." William Wordsworth 3:00 p.m. Mills Park Trail Ribbon Cutting 4:00 PM WORK SESSION 1. Preliminary Agenda Review 4:15 PM 2. Water and Wasterwater 5 Year Rate Plan Presentation 4:45 PM 3. History of Hagerstown Community College 5:00 PM 4. Hub City 100 Miler 5:05 PM 5. Program Open Space (POS) Proposed Projects for FY 2015 5:15 PM 6. City Park Sculpture Project 5:25 PM 7. Greens and Grains Tent 5:35 PM 8. Parks and Rec Rental Fees 5:45 PM 9. Land Transfer/Business Expansion, 1481 Salem Avenue 5:55 PM 10. 2005 APFO/Excise Tax Agreement and New APFO Amendments 6:10 PM 11. Revisions to Crime Free Housing Proposal and Chapter 95 of the City Code CITY ADMINISTRATOR'S COMMENTS 7:05 p.m. MAYOR AND COUNCIL COMMENTS EXECUTIVE SESSION 7:15 p.m. Executive Session ADJOURN 8:00 p.m.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Preliminary Agenda Review Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Water and Wasterwater 5 Year Rate Plan Presentation Mayor and City Council Action Requested: Discussion of the Water/Wastewater Five Year Rate Plan Discussion: The Utilities Department Financial/Administrative staff has been working with Municipal & Financial Services Group (MFSG) staff Dave Hyder and Tracy Moher in the development of a Water and Wastewater Five Year Rate Plan that would be in effect from Fiscal Year 15 through the end of Fiscal Year 19. The analysis has been completed utilizing updated financial operational requirements and capital needs for the departments. I propose the following schedule to benchmark the process; • November work session presentation with members of MFSG and City Staff detailing the final financial projections and requirements of the rate plan • December/January/February discussions, input and deliberations with the Mayor and Council regarding rate study information • Late February/early March adoption of the Five Year Rate Plan • July 1, 2014  effective date of the Five Year Rate Plan The goals of the Five Year Rate Plan include; • The continued financial solvency of both funds • The financial ability to continue investment within the infrastructure • Customer financial budgeting of water and wastewater usage. The five year structure allows our commercial/industrial and wholesale users (residential customers to a lesser degree) to trend usage and cost analysis in their respective budget plans for five years. Page 1 Assumptions were developed utilizing historical data and economic projections including but not limited to; • Fees and Charges collected will continue to self-support the Departments' financial needs  • Fees and Charges collected will allow for continued reinvestment of the systems • Contingency and Unplanned Expense fund reserves should be maintained • 3% Inflation rate • 0.5% Customer growth rate • 0.5% Consumption growth rate • 3% Interest rate on borrowing (maximum) The Revenue Requirements for the model were developed during the previous rate plan and the analysis utilized the points listed below which are contained within our five year capital and budget projections within the approved FY14 Budget. • operating and maintenance costs •  capital improvements • existing debt service • contributions to reserves The following is a partial listing for the revenue requirement findings and recommendations that were developed during the completion of the water and wastewater cost of service update and the proposed five year rate adjustment: Based on projected water sales, the City's current water rates will not produce adequate revenues to cover the costs of operating and maintaining the water system in Fiscal Years 2016 - 2019. To ensure the continued health of the water system we recommend that the City adjust rates as defined by the financial plan. The annual adjustments will eliminate the need for substantial increases in future years. The water fund will experience minor shortfalls due to yearly fluctuations in capital funding; however the water system has sufficient cash reserves to support these fluctuations. Based on projected wastewater sales, the City's current sewer rates will not produce adequate revenues to cover the costs of operating and maintaining the wastewater system over the entire projection period. The annual shortfalls in sewer revenues will exhaust the sewer fund cash balance by FY 2015. To ensure the continued health of the wastewater sewer system we recommend that the City adjust rates as defined by the financial plan. We are recommending a very substantial increase in wastewater rates in FY 2015. This level of increase in recommended due to the limited cash within the fund and the substantial shortfall in revenues compared to expenditures. An increase of this magnitude will be necessary unless the City can reduce expenditures in the wastewater fund or potentially delay/defer capital projects. Although the increases will still result in a shortfall in FY 2015, the overall cash balance of the fund is healthy enough to withstand the shortfall until the fund itself becomes self-sustaining and results in a positive cash flow in FY16. The wastewater increase in the current plan were averaged over the five years in order to avoid an initial projected large increase in the first year with the understanding the fund would not become financial solvent until the fifth year of the plan. This was accomplished through the deference of CIP, vehicle purchases, and the continued open and unfilled positions within the division. Page 2 Proposed Rate Adjustments  FY14* FY15 FY16 FY17 FY18 FY19 Water Rate Increases - Inside 5.0% 2.0% 2.0% 2.0% 2.0% 2.0% City Water Rate Increases - Outside 6.5% 2.0% 2.0% 2.0% 2.0% 2.0% City Total System $638,098 $489,474 $398,904 ($189,092) ($202,039) $20,671 Surplus / (Deficit) Ending Water Operating Cash $4,838,098 $5,327,572 $5,726,476 $5,537,384 $5,335,345 $5,356,015 Balance Sewer Rate 5.0% 12.0% 4.0% 4.0% 2.0% 2.0% Increases - Inside Sewer Rate 3.0% 12.0% 4.0% 4.0% 2.0% 2.0% Increases - Outside Total System ($853,907) $50,366 $146,056 $336,900 $429,533 $762,714 Surplus / (Deficit) Ending Sewer Operating Cash $939,434 $1,188,607 $1,780,495 $2,691,719 $3,546,459 $4,498,963 Balance  * FY14 rate adjustments approved by the City The City currently charges customers with higher than normal strength wastewater surcharges due to the additional cost associated with treating this wastewater. The City increased the surcharge amounts as a result of the cost of service study completed in 2005 and subsequently based on inflation. The current charges were reviewed based on the updated financial model and were determined to be set at the appropriate level. The City should continue to monitor the costs associated with treating high strength sewage. The recently completed Local Limits Study confirmed this approach. The City currently has two types of maintenance charges, materials and labor, imposed upon customers with grinder pumps required for low pressure systems. For those customers within the Woodlands area, a pump is shared among two dwellings and the maintenance charge is approximately $45 per dwelling. Customers within other areas are charged a maintenance fee of approximately $82 per pump. In FY14 the annual cost to fund replacements and repairs to the grinder pump systems equals approximately $106K. The current charges are projected to provide adequate revenues to cover the costs of maintaining these systems. The City currently imposes benefit charges on customers who connect to the water and/or wastewater system. The benefit charges are based on the capital costs of providing water and sewer capacity for new customers. Benefit charges are proportioned based upon anticipated usage and jurisdiction (inside/outside city). Benefit charges are intended to recover the capital cost of capacity constructed to serve a new customer. This includes treatment as well as pumping, distribution and collection for systems that are off-site. The current benefit charges are set at the appropriate level based on the cost of providing  water and wastewater capacity to new customers. The level of growth in the water and wastewater systems is not forecasted to generate sufficient revenues from benefit charges to cover the cost of growth related capital expenditures. Page 3 In 2002 the City acquired the Conocoheague and Martins Crossroads portion of the water system and in doing so assumed the debt that had been used to fund the area. In order to make the annual principal and interest payments on this debt the City imposes an annual debt surcharge to customers living within this area. The current surcharge imposed by the City was reviewed. The surcharge is calculated by dividing the annual payment by the number of customers located within this area. Based on the number of customers and the annual debt payments the charge per EDU should be $14.50 in FY14. The charge should decrease to approximately $6.00 per EDU for FY16 and beyond until the debt is extinguished. The City currently charges customer fire line charges based on meter and/or pipe size. The City increased the charges for fire lines by approximately 15% in FY10 to bring the revenues from these charges in line with the cost of providing private fire protection. Based on the updated model we recommend that the City adjust fire line charges at an annual rate of 3% to ensure that the fire line charges keep up with the increasing cost of providing private fire protection service. The following charts utilize a quarterly billed usage of 13,000 gallons to list the billed comparisons with other local regional utilities. The proposed rate increases for each of the divisions, water on top and wastewater below, are shown with City data through FY19.  The City has utilized 13,000 gallons of usage per quarter for comparison purposes the past few years. An inside customer would pay $1.22 per day for water/wastewater service and an outside customer would pay $2.29 per day. This is a combined utilities rate differential between the inside/outside customer rate base of 1.88. Per the recently completed study, our average residential customer is billed for 8,500 gallons per quarter. Our average inside residential customer would therefore be charged $.90 per day and an outside residential customer would be charged $1.70 per day for water/wastewater service. Page 4 For comparative outside rates with local utilities who use the same rate structure as the City, the next chart details the quarterly  billing for residential customers who use 13,000 gallons per quarter. The City FY15 rate is our actual proposed rate and the comparative rates are stated using a 3% increase per year period as an update for their stated rates. Water/Wastewater Rates at 13,000 gallons per Quarter Outside City Rate Outside City Rate FY15 City of Hagerstown $189.57 $205.82  City of Frederick $321.68 $340.98 Town of Funkstown $287.23 $304.46 City of Winchester, VA $225.58 $239.11 City of Cumberland, MD $275.63 $292.17 The following chart was supplied by Scott Nicewarner and details the most recent ageing analysis of water and wastewater billing, receivables, outstanding balances. Aggressive collection practices have assisted in the lowering of the funds that could be considered carrying charges on a monthly basis. City and MFSG Staff will be available to discuss the status of the Five Year Rate Plan preliminary financial information during the November 19, 2013 Work Session. Financial Impact: To be determined Recommendation: To be determined Motion: Action Dates: November 19 Work Session ATTACHMENTS: Name: Description: Memo_for_WWW_Five_Year_Rate_Plan_111913_3.doc Memo for WWW Five Year Rate Plan 111913 3 City_of_Hagerstown_-_Water_and_Sewer_Rate_Study_Update_3.pptx City of Hagerstown - Water and Sewer Rate Study Update 3  City of Hagerstown Department of Utilities 425 East Baltimore Street 1 Clean Water Circle 51 West Memorial Blvd Hagerstown, MD 21740-6105 Hagerstown, MD 21740-6848 Hagerstown, MD 21740-6848 November 19, 2013 TO: Bruce Zimmerman, City Administrator FROM: Michael S. Spiker, Director of Utilities Nancy Hausrath, Water Operations Manager Nelia Tidler, Utilities Financial Manager Dave Hyder, VP Municipal & Financial Services Group Tracey Moher, Municipal & Financial Services Group SUBJECT: Water/Wastewater Rates Five Year Rate Plan ACTION: Discussion The Utilities Department Financial/Administrative staff has been working with Municipal & Financial Services Group (MFSG) staff Dave Hyder and Tracy Moher in the development of a Water and Wastewater Five Year Rate Plan that would be in effect from Fiscal Year 15 through the end of Fiscal Year 19. The analysis has been completed utilizing updated financial operational requirements and capital needs for the departments. I propose the following schedule to benchmark the process; • November work session presentation with members of MFSG and City Staff detailing the final financial projections and requirements of the rate plan • December/January/February discussions, input and deliberations with the Mayor and Council regarding rate study information • Late February/early March adoption of the Five Year Rate Plan • July 1, 2014 effective date of the Five Year Rate Plan The goals of the Five Year Rate Plan include; • The continued financial solvency of both funds • The financial ability to continue investment within the infrastructure • Customer financial budgeting of water and wastewater usage. The five year structure allows our commercial/industrial and wholesale users (residential customers to a lesser degree) to trend usage and cost analysis in their respective budget plans for five years. Page 1  Assumptions were developed utilizing historical data and economic projections including but not limited to; • Fees and Charges collected will continue to self-support the Departments’ financial needs • Fees and Charges collected will allow for continued reinvestment of the systems • Contingency and Unplanned Expense fund reserves should be maintained • 3% Inflation rate • 0.5% Customer growth rate • 0.5% Consumption growth rate • 3% Interest rate on borrowing (maximum) The Revenue Requirements for the model were developed during the previous rate plan and the analysis utilized the points listed below which are contained within our five year capital and budget projections within the approved FY14 Budget. • operating and maintenance costs • capital improvements • existing debt service • contributions to reserves The following is a partial listing for the revenue requirement findings and recommendations that were developed during the completion of the water and wastewater cost of service update and the proposed five year rate adjustment: • Based on projected water sales, the City’s current water rates will not produce adequate revenues to cover the costs of operating and maintaining the water system in Fiscal Years 2016 – 2019. • To ensure the continued health of the water system we recommend that the City adjust rates as defined by the financial plan. The annual adjustments will eliminate the need for substantial increases in future years. The water fund will experience minor shortfalls due to yearly fluctuations in capital funding; however the water system has sufficient cash reserves to support these fluctuations. • Based on projected wastewater sales, the City’s current sewer rates will not produce adequate revenues to cover the costs of operating and maintaining the wastewater system over the entire projection period. The annual shortfalls in sewer revenues will exhaust the sewer fund cash balance by FY 2015. • To ensure the continued health of the wastewater sewer system we recommend that the City adjust rates as defined by the financial plan. We are recommending a very substantial increase in wastewater rates in FY 2015. This level of increase in recommended due to the limited cash within the fund and the substantial shortfall in revenues compared to expenditures. An increase of this magnitude will be necessary unless the City can reduce expenditures in the wastewater fund or potentially delay/defer capital projects. Although the increases will still result in a shortfall in FY 2015, the overall cash balance of the fund is healthy enough to withstand the shortfall until the fund itself becomes self- sustaining and results in a positive cash flow in FY16. The wastewater increase in the current plan were averaged over the five years in order to avoid an initial projected large increase in the first year with the understanding the fund would not become financial solvent until the fifth year of the plan. This was accomplished through the deference of CIP, vehicle purchases, and the continued open and unfilled positions within the division. Page 2  Proposed Rate Adjustments FY14* FY15 FY16 FY17 FY18 FY19 Water Rate Increases - 5.0% 2.0% 2.0% 2.0% 2.0% 2.0% Inside City Water Rate Increases - 6.5% 2.0% 2.0% 2.0% 2.0% 2.0% Outside City Total System Surplus / $638,098 $489,474 $398,904 ($189,092) ($202,039) $20,671 (Deficit) Ending Water Operating $4,838,098 $5,327,572 $5,726,476 $5,537,384 $5,335,345 $5,356,015 Cash Balance Sewer Rate Increases - 5.0% 12.0% 4.0% 4.0% 2.0% 2.0% Inside Sewer Rate Increases - 3.0% 12.0% 4.0% 4.0% 2.0% 2.0% Outside Total System Surplus / ($853,907) $50,366 $146,056 $336,900 $429,533 $762,714 (Deficit) Ending Sewer Operating $939,434 $1,188,607 $1,780,495 $2,691,719 $3,546,459 $4,498,963 Cash Balance * FY14 rate adjustments approved by the City • The City currently charges customers with higher than normal strength wastewater surcharges due to the additional cost associated with treating this wastewater. The City increased the surcharge amounts as a result of the cost of service study completed in 2005 and subsequently based on inflation. The current charges were reviewed based on the updated financial model and were determined to be set at the appropriate level. The City should continue to monitor the costs associated with treating high strength sewage. The recently completed Local Limits Study confirmed this approach. • The City currently has two types of maintenance charges, materials and labor, imposed upon customers with grinder pumps required for low pressure systems. For those customers within the Woodlands area, a pump is shared among two dwellings and the maintenance charge is approximately $45 per dwelling. Customers within other areas are charged a maintenance fee of approximately $82 per pump. In FY14 the annual cost to fund replacements and repairs to the grinder pump systems equals approximately $106K. The current charges are projected to provide adequate revenues to cover the costs of maintaining these systems. • The City currently imposes benefit charges on customers who connect to the water and/or wastewater system. The benefit charges are based on the capital costs of providing water and sewer capacity for new customers. Benefit charges are proportioned based upon anticipated usage and jurisdiction (inside/outside city). Benefit charges are intended to recover the capital cost of capacity constructed to serve a new customer. This includes treatment as well as pumping, distribution and collection for systems that are off-site. The current benefit charges are set at the appropriate level based on the cost of providing water and wastewater capacity to new customers. The level of growth in the water and wastewater systems is not forecasted to generate sufficient revenues from benefit charges to cover the cost of growth related capital expenditures. Page 3  • In 2002 the City acquired the Conocoheague and Martins Crossroads portion of the water system and in doing so assumed the debt that had been used to fund the area. In order to make the annual principal and interest payments on this debt the City imposes an annual debt surcharge to customers living within this area. The current surcharge imposed by the City was reviewed. The surcharge is calculated by dividing the annual payment by the number of customers located within this area. Based on the number of customers and the annual debt payments the charge per EDU should be $14.50 in FY14. The charge should decrease to approximately $6.00 per EDU for FY16 and beyond until the debt is extinguished. • The City currently charges customer fire line charges based on meter and/or pipe size. The City increased the charges for fire lines by approximately 15% in FY10 to bring the revenues from these charges in line with the cost of providing private fire protection. Based on the updated model we recommend that the City adjust fire line charges at an annual rate of 3% to ensure that the fire line charges keep up with the increasing cost of providing private fire protection service. The following charts utilize a quarterly billed usage of 13,000 gallons to list the billed comparisons with other local regional utilities. The proposed rate increases for each of the divisions, water on top and wastewater below, are shown with City data through FY19. Proposed Rates FY 14 FY15 FY16 FY17 FY18 FY19 City of Hagerstown, MD $25.60 $26.12 $26.64 $27.17 $27.70 $28.23 Town of Smithsburg, MD $59.71 City of Cumberland, MD $71.38 City of Frostburg, MD $73.75 Town of Funkstown, MD $92.60 City of Frederick, MD $88.46 City of Martinsburg, WV $127.15 City of Winchester, VA $107.08 Proposed Rates FY14 FY15 FY16 FY17 FY18 FY19 City of Martinsburg, WV $46.76 City of Hagerstown, MD $74.58 $83.49 $86.89 $90.32 $92.18 $94.05 City of Frederick, MD $88.46 City of Frostburg, MD $89.90 City of Cumberland, MD $145.25 City of Winchester, VA $132.08 Town of Smithsburg, MD $116.44 Town of Funkstown, MD $135.67 The City has utilized 13,000 gallons of usage per quarter for comparison purposes the past few years. An inside customer would pay $1.22 per day for water/wastewater service and an outside customer would pay $2.29 per day. This is a combined utilities rate differential between the inside/outside customer rate base of 1.88. Per the recently completed study, our average residential customer is billed for 8,500 gallons per quarter. Our average inside residential customer would therefore be charged $.90 per day and an outside residential customer would be charged $1.70 per day for water/wastewater service. Page 4  For comparative outside rates with local utilities who use the same rate structure as the City, the next chart details the quarterly billing for residential customers who use 13,000 gallons per quarter. The City FY15 rate is our actual proposed rate and the comparative rates are stated using a 3% increase per year period as an update for their stated rates. Water/Wastewater Rates at 13,000 gallons per Quarter Outside City Rate Outside City Rate FY15 City of Hagerstown $189.57 $205.82 City of Frederick $321.68 $340.98 Town of Funkstown $287.23 $304.46 City of Winchester, VA $225.58 $239.11 City of Cumberland, MD $275.63 $292.17 The following chart was supplied by Scott Nicewarner and details the most recent ageing analysis of water and wastewater billing, receivables, outstanding balances. Aggressive collection practices have assisted in the lowering of the funds that could be considered carrying charges on a monthly basis. Billed Current % of Total 1-30 % of Total 31-60 % of Total 61-120 % of Total 120+ % of Total Total Customers 8/30/2012 $ 1,197,749.44 54.0% $ 370,279.81 16.7% $ 297,385.52 13.4% $ 125,134.51 5.6% $227,996.29 10.3% $ 2,218,545.57 11,305 9/30/2012 $ 2,040,199.69 61.4% $ 572,588.86 17.2% $ 181,619.80 5.5% $ 272,209.80 8.2% $ 253,613.65 7.6% $ 3,320,231.80 14,155 12/31/2012 $ 1,878,956.08 60.7% $ 246,851.33 8.0% $ 246,805.76 8.0% $ 389,072.23 12.6% $ 335,477.37 10.8% $ 3,097,162.77 15,538 3/31/2013 $ 1,859,551.05 59.8% $ 512,072.83 16.5% $ 137,111.62 4.4% $ 255,710.53 8.2% $ 345,771.10 11.1% $ 3,110,217.13 14,218 4/30/2013 $ 678,210.67 33.0% $ 700,884.58 34.1% $ 135,864.26 6.6% $ 205,707.83 10.0% $ 334,253.72 16.3% $ 2,054,921.06 12,966 5/31/2013 $ 996,633.88 53.1% $ 334,615.19 17.8% $ 184,789.17 9.8% $ 74,390.71 4.0% $ 288,105.67 15.3% $ 1,878,534.62 11,911 6/30/2013 $ 1,492,170.43 59.0% $ 516,795.47 20.4% $ 154,783.76 6.1% $ 121,797.14 4.8% $ 241,756.16 9.6% $ 2,527,302.96 11,865 7/31/2013 $ 1,449,337.96 59.5% $ 483,745.76 19.9% $ 166,907.51 6.9% $ 115,168.75 4.7% $ 219,543.95 9.0% $ 2,434,703.93 12,850 8/31/2013 $ 1,404,059.90 62.1% $ 279,656.87 12.4% $ 208,207.42 9.2% $ 126,765.55 5.6% $ 242,845.77 10.7% $ 2,261,535.51 12,254 9/30/2013 $ 1,119,213.53 53.3% $ 531,272.16 25.3% $ 104,248.57 5.0% $ 125,898.90 6.0% $ 217,470.32 10.4% $ 2,098,103.48 11,775 10/15/2013 $ 1,498,574.30 61.7% $ 501,471.26 20.7% $ 142,510.04 5.9% $ 72,869.37 3.0% $ 212,547.45 10.1% $ 2,427,972.42 12,660 10/31/2013 $ 549,255.65 33.6% $ 697,398.65 42.6% $ 111,506.26 6.8% $ 67,631.14 4.1% $ 211,119.03 12.9% $ 1,636,910.73 10,469 City and MFSG Staff will be available to discuss the status of the Five Year Rate Plan preliminary financial information during the November 19, 2013 Work Session. Page 5 Phone 301.739.8577 ext. 143 Electric Fax 301.739.7958 TDD 301.797.6617 Phone 301.739.8577 ext. 650 W/WW Fax 301.733.2873 TDD 301.797.6617 Municipal & Financial Municipal Services& Group Financial Services Group City of Hagerstown Water and Sewer Rate Study Executive Summary November 19, 2013 Contents 1 Summary of Findings 2 Revenue Requirements / Financial Plans 3 Sample Customer Bills 4 Discussion 2 Summary of Findings and Recommendations • Based on the City’s projected water and sewer sales, the City’s current water and sewer rates will not generate sufficient revenues to cover system expenses beginning in FY15. • The shortfalls in sewer revenues will completely exhaust the sewer fund cash balance in FY15. • Increases in water and sewer rates are required to ensure the continued financial health of each system. Recommended Increase FY 15 FY 16 FY 17 FY 18 FY 19 Water Rates 2.0% 2.0% 2.0% 2.0% 2.0% Sewer Rates 12.0% 4.0% 4.0% 2.0% 2.0% 3 Water and Sewer Revenue Requirements “Building Blocks” of Revenue Requirements Contributions to Reserves Planned Capital Improvement Projects Total Revenue = Requirements Existing Debt Service Payments Operating & Maintenance Expenses 5  Water Revenue Requirements (in millions) FY 15 FY 16 FY 17 FY 18 FY 19 Operating Costs Total Operating Expenses(1) $8.25 $8.50 $8.76 $9.02 $9.29 Total Operating Reserve $- $- $- $- $- Capital Costs 3R Reserve Contribution(2) $- $- $- $- $- Existing Debt Service $1.89 $1.83 $1.84 $1.84 $1.61 Cash Funded Capital Projects $1.12 $0.54 $0.95 $0.93 $0.91 Projected Debt Service $0.97 $1.22 $1.69 $2.05 $2.13 Total Revenue Requirement $12.23 $12.09 $13.24 $13.84 $13.94 Less: Misc. Other Revenues ($0.60) ($0.57) ($0.57) ($0.57) ($0.58) Less: Benefit Charges ($0.63) ($0.64) ($0.64) ($0.64) ($0.65) Less: Use of Capital Fund Balance ($0.67) ($0.19) ($0.44) ($0.73) ($0.75) Net Revenue Requirement $10.33 $10.69 $11.59 $11.90 $11.96 (1) Assumes annual 3% increase in operating expenses (2) A balance of $1.7 million is maintained with no additional contributions 6  Performance of Water Fund (without Rate Increase) (in millions) FY 15 FY 16 FY 17 FY 18 FY 19 Net Revenue Requirement $10.33 $10.69 $11.59 $11.90 $11.96 Projected Revenues with Current Rates $10.61 $10.67 $10.74 $10.80 $10.87 Surplus / (Shortfall) $0.28 ($0.02) ($0.85) ($1.10) ($1.12) Additional contributions to Reserves $- $- $- $- $- End of Year Total Unrestricted $3.42 $3.40 $2.55 $1.45 $0.33 Water Fund Cash Balance(1) (1) Does not include $1.7 million 3R reserve balance 7  Water Financial Forecast (without Rate Increase) $14.00 Net Revenue Requirements $12.00 Projected Revenues with $10.00 Current Rates $8.00 (in millions) $6.00 Total Unrestricted Cash + Reserves Balance Minimum Balance (2 months Operating + 1% $4.00 of System Assets) $2.00 Existing Rate Structure falls below Minimum Balance $0.00 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 8  Financial Plan Financial plan identifies necessary water revenue increases to: Fund system revenue requirements as shown on page 6 To maintain recommended minimum cash balance of 2 month operating requirements plus 1% of replacement cost of system Five-year financial plan provides inflationary increases to keep revenues in line with increasing costs. FY 15 FY 16 FY 17 FY 18 FY 19 Total Revenue Increase 2.0% 2.0% 2.0% 2.0% 2.0% End of Year Total Unrestricted $3.63 $4.03 $3.84 $3.64 $3.66 Water Fund Cash Balance (million) (1) (1) Does not include $1.7 million 3R reserve balance 9  Financial Forecast - Financial Plan (with Proposed Rate Increase) $14.00 Net Revenue Requirements $12.00 Projected Revenues with Financial Plan $10.00 $8.00 (in millions) Total Unrestricted Cash + Reserves Balance $6.00 $4.00 Minimum Balance (2 months Operating + 1% $2.00 of System Assets) $0.00 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 10  Sewer Revenue Requirements (in millions) FY 15 FY 16 FY 17 FY 18 FY 19 Operating Costs Total Operating Expenses(1) $10.03 $10.33 $10.64 $10.96 $11.29 Total Operating Reserve $0.08 $0.20 $0.20 $0.05 $- Capital Costs(2) 3R Reserve Contribution $0.12 $0.25 $0.37 $0.38 $0.19 Existing Debt Service $2.00 $2.00 $2.01 $2.01 $1.89 Cash Funded Capital Projects $1.00 $0.54 $0.39 $0.39 $0.39 Projected Debt Service $0.01 $0.16 $0.27 $0.36 $0.42 Total Revenue Requirement $13.24 $13.48 $13.88 $14.15 $14.18 Less: Misc. Other Revenues ($0.20) ($0.20) ($0.20) ($0.20) ($0.20) Less: Benefit Charges ($0.50) ($0.50) ($0.50) ($0.50) ($0.51) Less: Use of Capital Fund Balance ($0.34) ($0.12) ($0.13) ($0.14) ($0.16) Net Revenue Requirement $12.20 $12.66 $13.05 $13.31 $13.31 (1) Assumes annual 3% increase in operating expenses (2) Includes costs associated with approved Synagro contract obligations 11  Performance of Sewer Fund (without Rate Increase) (in millions) FY 15 FY 16 FY 17 FY 18 FY 19 Net Revenue Requirement $12.20 $12.66 $13.05 $13.31 $13.31 Projected Revenues with Current Rates $10.95 $11.01 $11.06 $11.12 $11.17 Surplus / (Shortfall) ($1.25) ($1.65) ($1.99) ($2.19) ($2.14) End of Year Total Unrestricted ($0.32) ($1.97) ($3.96) ($6.15) ($8.29) Sewer Fund Cash Balance Excluding Reserve Contributions $0.20 $0.45 $0.57 $0.43 $0.19 End of Year Total Unrestricted ($0.12) ($1.32) ($2.74) ($4.50) ($6.45) Sewer Fund Cash Balance 12  Sewer Financial Forecast (without Rate Increase) $15.00 Net Revenue Requirement $12.50 Projected Revenues with $10.00 Current Rates $7.50 Minimum Balance (2 (in millions) $5.00 months Operating + 1% of System Assets) $2.50 $0.00 ($2.50) Total Unrestricted Cash + Reserves Balance ($5.00) ($7.50) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 13  Financial Plan Financial plan identifies necessary sewer revenue increases to: Fund system revenue requirements as shown on page 11 To ensure financial viability of the sewer fund Financial Plan provides for a five-year phase-in with substantial increase in first year to align revenues with annual expenses. FY 15 FY 16 FY 17 FY 18 FY 19 Total Revenue Increase 12.0% 4.0% 4.0% 2.0% 2.0% End of Year Total Unrestricted $1.19 $1.78 $2.69 $3.55 $4.50 Sewer Fund Cash Balance (million) 14  Financial Forecast - Financial Plan (with Proposed Rate Increase) $15.00 Projected Revenues with Financial Plan $12.50 Net Revenue Requirements $10.00 $7.50 Minimum Balance (2 Total Unrestricted Cash + $5.00 months Operating + 1% Reserves Balance (in millions) of System Assets) $2.50 $0.00 ($2.50) ($5.00) ($7.50) ($10.00) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 15 Sample Customer Bills 16 Sample Bills – Inside City Residential Combined Quarterly Sample Bills Meter Quarterly Current FY 15 FY 16 FY 17 FY 18 FY 19 Size Usage FY 14 5/8" 2,000 $36.05 $39.43 $40.82 $42.25 $43.10 $43.96 Quarterly Dollar Increase $3.38 $1.38 $1.44 $0.85 $0.86 5/8" 8,500* $73.95 $80.92 $83.77 $86.73 $88.46 $90.23 Quarterly Dollar Increase $6.97 $2.85 $2.96 $1.73 $1.77 5/8" 13,000 $100.18 $109.64 $113.51 $117.51 $119.86 $122.26 Quarterly Dollar Increase $9.46 $3.86 $4.01 $2.35 $2.40 3/4" 20,000 $143.61 $156.99 $162.49 $168.18 $171.55 $174.98 Quarterly Dollar Increase $13.38 $5.49 $5.70 $3.36 $3.43 *8,500 gallons per quarter represents average residential customer. 17 Sample Bills – Outside City Residential Combined Quarterly Sample Bills Meter Quarterly Current FY 15 FY 16 FY 17 FY 18 FY 19 Size Usage FY 14 5/8" 2,000 $70.33 $76.17 $78.69 $81.29 $82.92 $84.58 Quarterly Dollar Increase $5.84 $2.52 $2.61 $1.63 $1.66 5/8" 8,500* $140.79 $152.78 $157.90 $163.19 $166.46 $169.78 Quarterly Dollar Increase $11.99 $5.11 $5.30 $3.26 $3.33 5/8" 13,000 $189.57 $205.82 $212.73 $219.89 $224.29 $228.77 Quarterly Dollar Increase $16.25 $6.91 $7.16 $4.40 $4.49 3/4" 20,000 $271.83 $294.84 $304.67 $314.86 $321.16 $327.58 Quarterly Dollar Increase $23.01 $9.83 $10.19 $6.30 $6.42 *8,500 gallons per quarter represents average residential customer. 18 Discussion 19  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: History of Hagerstown Community College Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: History_of_HCC.pdf History of Hagerstown Community College  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Hub City 100 Miler Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: 11.19.13MemoHubCity100.docx.doc Hub City 100  CITY OF HAGERSTOWN, MARYLAND Department of Parks and Engineering November 13, 2013 TO: Bruce Zimmerman, City Administrator FROM: Amy Riley, Recreation Promotion & Services Coordinator RE: Hub City 100 Miler 1. Background Beginning late November, the Parks and Recreation Division is launching the Hub City 100 Miler, an active living community challenge that will serve two purposes. One, to showcase a new recreational event for the City of Hagerstown while meeting a need in the community. Second, to be used as a marketing tool to promote our parks, trails, bike paths, and recreational facilities. 2. Mayor & Council Action Requested Staff requests that the Mayor & Council endorse this initiative of the Parks & Recreation Division and help us raise awareness. 3. Proposal The goal of the Hub City 100 Miler is to have the participant complete 100 miles in 100 days. What’s unique about the program is that it’s self-reporting and participants can choose how they will complete the 100 miles. A mileage tracking form will be available via our website. The miles can be accomplished through walking, running, biking, taking a fitness class, or even golfing. Staff will be the weekly “coach” offering suggestions on how to get your miles in and weekly prizes will be drawn as an incentive to keep going. We will build this campaign into the City’s Wellness program, as well as continue to build partnerships with organizations like HEAL and area fitness professionals to make it successful. Parks and Recreation Division Engineering Division 351 North Cleveland Avenue ● Hagerstown, MD 21740 1 East Franklin Street ● Hagerstown, MD 21740-4817 Ph: 301.739.8577 Ext. 169 ● Fax: 301.790.0171 Ph: 301.739.8577 Ext. 125 ● Fax: 301.733.2214  Page 2 4. Budget Staff is using budgeted operating funds and a participation fee will be charged to offset the costs associated with running the event. Anticipated expenses are those to cover advertising and t-shirts. We also will seek a cash sponsor to support the program and call on local businesses to donate the weekly and grand prizes. Those registered will have two fees to choose from: $20 with a t-shirt and $10 without a t-shirt. 5. Timeline Event registration begins November 25 and will continue through mid-January. The event will officially begin on January 6 with a small event in one of our parks. At that time, the community will be invited to walk the first mile with the Mayor. The program will continue for 100 days and will conclude on April 15 with a small celebration and grand prize drawing(s) for those who have completed the 100 miles. 6. Other In conclusion, here is the promotional information to be used on banners, flyers and our website: HUB CITY 100 Miler 100 Miles in 100 Days Walk, bike, run, hike, skate….your way into 2014! How it works: • Make it your New Year’s Resolution - register for the challenge by January 6 • Track your own miles – the goal is to stay active for 100 days • Move your body your way – walking, biking, skiing, a fitness class…it counts! • HAVE FUN – generate a lifestyle change that gets you active and healthy while having fun! Weekly Prizes through April 15 – Personal Fitness Sessions, Gift Cards, Golf and Swim Passes, and more! Grand Prize – Trek Bike Giveaway! Fee: $10 without t-shirt; $20 with t-shirt For more info or to register online: www.hagerstownmd.org/hubcity100 Email/call: ariley@hagerstownmd.org 301-739-8577 x 180 Staff will be available on Tuesday to discuss the proposed project.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Program Open Space (POS) Proposed Projects for FY 2015 Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Program_Open_Space.pdf Program Open Space Application  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: City Park Sculpture Project Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Sculpture_Project.pdf City Park Sculpture Project  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Greens and Grains Tent Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Greens_and_Grains.pdf Greens and Grains Tent  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Parks and Rec Rental Fees Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Land Transfer/Business Expansion, 1481 Salem Avenue Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: 2005 APFO/Excise Tax Agreement and New APFO Amendments Mayor and City Council Action Requested: Since the County Commissioners amended the Adequate Public Facilities Ordinance (APFO) for schools last month, the City must follow suit if we desire to continue the 2005 APFO/Excise Tax Agreement with the County. Staff will be present at the November 19th Mayor and City Council work session to discuss whether to continue the 2005 Agreement and, if so, to explain the recent APFO amendments. Discussion: The following provides information on changes which occurred to the County ordinances and the economic climate since the 2005 Agreement went into effect - all of which have had an impact on the City's revenues. 2005 Excise Tax/APFO Agreement between Hagerstown and the County The County Commissioners received State enabling authority in 2005 to adopt new rates in their Excise Tax Ordinance for all new development in the county; and to allow the municipalities in the county to retain 28% of the tax collected for their own infrastructure upgrades, if the municipalities adopted an APFO for schools substantially similar to the County's. At this time, the County and some of the municipalities were experiencing rapid growth and alternative sources of revenue to support infrastructure upgrades were desirable. As a result of this excise tax sharing proposal and the significant revenue to be gained under the 2005 rates, the City adopted an APFO for schools in 2006 which allowed us to retain 28% of the County excise tax for our Capital Improvements Program (CIP) for roads and parks improvement projects. In the first three years under the 2005 rates, the City retained $1.98 million in excise tax revenue for our CIP. Since adoption of an APFO in 2006, ten City projects have been affected by the APFO. Five projects were reviewed and approved (four via mitigation approvals) and four projects stalled at the hurdle. The New Haven annexation, which was approved just prior to the City's adoption of an APFO, was adopted with phasing constraints in anticipation of the APFO. Of the five approved projects, two have been abandoned (Potomac Square and Hager's Crossing condos), one has had tax sale issues (Deerfield Knolls), and one has been stalled for several years (Hamilton Hotel condos). The New Haven project has not been able to attract a developer and the owner attributes this to the phasing constraints in the annexation agreement. The Impact on City Revenues from Adjustments to the Excise Tax Rates Starting in 2008, the County Commissioners amended the Excise Tax Ordinance several times in an effort to address concerns about the tax's alleged stifling affect on economic development in the county. As a result of these amendments, the fee system in the Excise Tax Ordinance has been reduced by as much as 78-85% on residential development and 33-69% on non-residential development. Within the past five years under the much reduced rates, the City has retained $475,150 for our CIP (see Appendix A). Changes to the Excise Tax Ordinance in March 2013 will drop our revenue prospects even further, as illustrated in Appendix B. Issues to Consider When Assessing the 2005 Agreement Today The City entered into the 2005 agreement with the County, because of the anticipated benefit to be gained from excise tax revenues for City infrastructure projects - as well as due to pressure from the Board of Education and their staff to subject City development to a school APFO at a time when development activity was much higher in the city. While staff can respect those motivations in 2005, subsequent actions by the County Commissioners and the reality of growth in the Hagerstown Urban Growth Area in the intervening years have created a different environment today that raise the question of whether this agreement is still in the best interests of the City of Hagerstown. The following are issues for consideration as the Mayor and City Council weigh the merits of continuing the 2005 APFO/Excise Tax Agreement: 1.The revenue to be gained from the excise tax is vastly reduced from what was available to us in 2005. In the first year, we retained $1.04 million. In FY 2013, we retained $118,229 (75% of the year being under the 2008 rates). Revenues in FY 2014 are likely to be even lower due to the rate changes which went into effect on March 26th of this year. For example, our 28% share on 55 dwelling units at 2,500 sq.ft. each would drop from $115,500 under the prior rates to $38,500 under the new rates. 2. Any new proposed developments in the city are held up by the APFO for schools even though the vast majority of new home construction in the county is occurring outside the City of Hagerstown and most of our schools serve areas well beyond the corporate boundaries (see Appendices C and D). 76% of the new home construction in the county between 2009-2013 (excluding the elderly housing for the HHA) was in the unincorporated areas of the county, while only 21% occurred in the city. 3.Residential development is not rebounding within the city - our new home construction has dwindled since 2009 and we have not received a new subdivision plan for single family detached or attached homes since 2008. 4.We have not annexed a large tract of land for new development since 2008; and only two tracts have annexed in the past two years (Pangborn Corporation and a house in Cedar Lawn). 5.We are not experiencing growth in our property tax base as we were in 2005; in fact the base has declined in recent years. As we attempt to improve the fiscal health of Hagerstown, we must consider whether policies adopted during the growth boom that were designed to control growth and support infrastructure upgrade needs are still relevant in an era where the City struggles to attract economic growth and forge a sustainable path for our future. The City needs measures that would make city tracts of land and annexation opportunities more competitive for the residential and commercial market in our county. The resulting development would increase the City's tax base and help to make us more fiscally sustainable. New Amendments to the County APFO Last month, the County Commissioners amended their APFO to impose a fee in this ordinance that would apply to new residential development wishing to move forward even though inadequate school exists or will exist to serve it. These amendments set up a formula for calculating a fee known as an Alternative Mitigation Contribution. Based on data provided during the Commissioners deliberations this summer, the fee would range from about $1,600-$3,000 per unit, based on unit type. Payment of the APFO fee must be made up front at time of site plan or final plat approval. This mechanism would not be available to developers if the affected schools would be more than 120% over capacity. In those instances, the developer would need to negotiate a mitigation plan with the County Commissioners to further redress the school inadequacies. In order to continue retaining 28% of the Excise Tax collected in our jurisdiction, the City will need to amend our APFO for schools to reflect these new County amendments. While these amendments create a mechanism to allow new residential development to move forward within the city (provided the developer is willing to pay the upfront APFO fee), the City will not be sharing in the APFO fee revenue. The APFO fee revenue will be paid directly to the County for their CIP for schools. The City would still retain $0.28/square foot on new residential units and most non-residential development through the Excise Tax Ordinance, however. Next Steps 1. Continue with the 2005 Agreement: Provided the Mayor and City Council decide to continue with the 2005 Agreement, attached are draft amendments to the City APFO for schools which would make our ordinance substantially similar to the recently amended County APFO (see Appendix E). These amendments could be introduced at the November 26th regular meeting. or 2.Discontinue the 2005 Agreement: If the Mayor and City Council decide to discontinue the 2005 Agreement, we will need to repeal the City's APFO for schools, as well as the City's Excise Tax Ordinance. If we take this step, we will continue to collect the County excise tax on all new development in the city, but we would not retain 28% of the revenue for our CIP. We would be able to approve new residential development, however, without the need for developers to pay an APFO fee if the development fails the school test or seek additional mitigation approvals from the County if the schools would be over 120% of capacity. Financial Impact: If amend APFO to match recent County APFO amendments, the City will continue to retain $0.28/square foot on new residential development and most non-residential development. If the City ends the 2005 Agreement and repeals the City APFO, we will still collect the County Excise Tax on building permits, but would not retain 28% for our CIP for infrastructure projects. Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: APFO_Exise_Tax_Agreement_2013_-_Memo.pdf 2005 APFO/Excise Tax Agreement and New APFO Amendments 2013_APFO_Amendment_Proposal.pdf 2005 APFO/Excise Tax Agreement and New APFO Amendments  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Revisions to Crime Free Housing Proposal and Chapter 95 of the City Code Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Crime_Free_Housing.pdf Crime Free Housing Crime_Free_Housing2.pdf Revisions to Crime Free Housing Proposal and Chapter 95 of the City Code  CITY OF HAGERSTOWN, MARYLAND A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HAGERSTOWN AND UNIVERSITY OF SYSTEM OF MARYLAND AT HAGERSTOWN CONCERNING POLICE SERVICES AT THE UNIVERSITY RECITALS WHEREAS, the University System of Maryland at Hagerstown (USMH) desires to have the Hagerstown Police Department continue to provide certain policing services at the University facility; and WHEREAS, the City of Hagerstown, Maryland, currently maintains and desires to continue to maintain a substation at the University System of Maryland, Hagerstown facility; and WHEREAS, the City and USMH desire to establish their mutual rights and obligations with respect to the policing services to be provided, the substation and other related issues at the University System of Maryland at Hagerstown facility; and WHEREAS, the City and USMH previously entered into a Memorandum of Understanding for Police services at USMH, the term of which has expired; and WHEREAS, the Mayor and Council of the City of Hagerstown find it in the best interests of the citizens of the City to do so; 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. The foregoing recitals be and are hereby incorporated herein by reference. 2. That the Mayor be and is hereby authorized to execute and deliver the Memoranda of Understanding between the City of Hagerstown and University System of Maryland at Hagerstown, copies of which are attached hereto and incorporated herein by reference. 3. That the Mayor be and is hereby authorized to execute and deliver any other documentation that may be necessary to effectuate the purposes of this resolution. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its approval. ATTEST: CITY OF HAGERSTOWN, MARYLAND BY: _______________________________ BY: ________________________________ Donna Spickler, City Clerk David S. Gysberts, Mayor Date of Introduction: November 26, 2013 PREPARED BY: Date of Passage: November 26, 2013 NAIRN & BOYER, LLC Effective Date: November 26, 2013 City Attorney  MEMORANDUM OF UNDERSTANDING between the CITY OF HAGERSTOWN and the UNIVERSITY SYSTEM OF MARYLAND AT HAGERSTOWN This Memorandum of Understanding (“MOU”) between the City of Hagerstown and the University System of Maryland at Hagerstown (“USMH”) sets forth the principles, terms, and conditions under which the Hagerstown Police Department (“HPD”) will provide certain police services at the University System of Maryland Hagerstown Education Center, Hagerstown, Maryland Recitals The University System of Maryland at Hagerstown (USMH) is a regional higher education center operating under the aegis of the University System of Maryland at facilities in Hagerstown, Maryland. USMH desires to enter into this MOU to provide certain policing of USMH and its surrounding property and the City of Hagerstown agrees to provide those services through its police department pursuant to the following terms and conditions: I. Term a. The term of this MOU shall be from July 1, 2013 through June 30, 2016. The term may be renewed or extended upon the mutual written agreement of both parties, under such additional terms and conditions as the parties mutually agree. The parties agree to discuss renewal terms at least (90) ninety days prior to June 30, 2016. II. Rights and Responsibilities of the University System of Maryland at Hagerstown a. USMH shall provide a room on the ground floor of USMH’s Main building, located at 32 W. Washington Street, to serve as a police substation for HPD. The substation shall be located in Room 105. Room 105 is equipped with an interview area, data ports and telephone lines. Currently, there is no charge for phones or copiers. Two desks, one table, and several chairs have been provided at no charge. Room 105 has an outside entrance that provides access to the Substation for police officers. USMH will provide access to the restrooms for use by the police officers. The bicycles used by the police officers are stored in an area by the back alley door on a bicycle rack. b. USMH shall provide HPD with a classroom for any in‐service training when requested by HPD, at a rental rate of $18.00 per square foot for the space utilized. Additionally, should HPD desire to again rent space for its Western Maryland Police Academy in the future, USMH will accommodate HPD’s request. c. USMH has installed and maintains a “blue light” emergency telephone on the USMH grounds. d. USMH has no expectation of rental income or other compensation for HPD’s continued use of this space. The only consideration due USMH is performance as outlined in this document under III, below. e. The primary contact for the implementation, modification or amendment of this MOU shall be the USMH Executive Director. III. Rights and Responsibilities of the Hagerstown Police Department. HPD will make every reasonable effort to fill the following responsibilities based on manpower availability. a. HPD agrees to conduct “walk‐thrus” of USMH, the University Plaza and the property behind the Main building, and the adjacent parking garage each Monday thru Thursday evening, preferably after dark.  b. HPD agrees to provide Monday thru Thursday evening coverage for the University District between 7:00 pm and 11:00 pm, ensuring coverage while evening USMH students are entering and exiting the buildings. c. HPD agrees to assist USMH with the enforcement of the “No Smoking” ordinance in University Plaza, and with vacating any individuals refusing to leave UP after 10:00 pm. A portion of the USMH property adjacent to the University Plaza is exclusively reserved for use for USMH activities and by USMH students. Said Reserved Area is depicted on the attached Exhibit 1. HPD shall assist USMH in the enforcement of this exclusive use in the Reserved Area. d. HPD shall respond to any and all “blue light” emergency phone calls on USMH grounds. All telephone calls from the “blue light” will be picked up at the Emergency Communications Center. e. University Plaza gates, which are locked by USMH on Monday – Thursday evenings when classes are in session, shall be unlocked by HPD (or others as directed by the Chief of Police) on Tuesday – Friday mornings at 6:00 am. This MOU does not require the City to lock the gates when not locked by USMH. f. In order to facilitate USMH’s responsibilities for reporting crimes pursuant to the Cleary Act, HPD agrees to establish a special crime district consisting of the USMH grounds, adjacent public property, and the parking garage used for the USMH (the “University District”). Crime statistics in this special district shall be submitted to the USMH Executive Director at least annually at the request of USMH. g. HPD agrees not to use the Substation as a holding area for prisoners or suspects. If an arrest occurs at the Substation after an interview has taken place, HPD must immediately relocate the individual(s) to an appropriate detention facility or jail. h. HPD shall provide all other furnishings for the Substation not specified in this MOU. i. The primary contact from the City of Hagerstown for implementation, modification, or amendment of this MOU shall be the Chief of Police of the HPD. IV. Modification and Amendment a. This MOU may be modified or amended only in writing by mutual agreement of the parties. IN WITNESS WHEREOF, the authorized representatives of the City of Hagerstown and the University System of Maryland at Hagerstown have signed this MOU on the date and year written below. CITY OF HAGERSTOWN ____________________________________ Date: ___________________________ David S. Gysberts Mayor UNIVERSITY SYSTEM OF MARYLAND AT HAGERSTOWN ____________________________________ Date: ___________________________ Mark C. Halsey Executive Director  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: 7:05 p.m. Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: 7:15 p.m. Executive Session Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: 8:00 p.m. Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available