Work Session

Mayor and Council 30th Special Session and Work Session December 3, 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." "He who does not prevent a crime when he can, encourages it." Seneca, Roman philosopher 2:00 p.m. - Joint Meeting With Washington County Delegation - Hagerstown Community College, Career Programs Building, Rooms 211/213 11400 Robinwood Drive, Hagerstown, Maryland SPECIAL SESSION 4:00 PM 1. 30th Special Session - Economic Analysis and Implementation Plan for Hagerstown's Sustainable Community Plan 4:20 PM WORK SESSION 1. Proclamation - Houses of Worship Tour 4:25 PM 2. Community Coalition Lobbyist 4:35 PM 3. Enterprise Fund Dividend Transfer Policy 4:55 PM 4. Hagerstown Light Department Wholesale Power Contract 5:05 PM 5. Noise Ordinance Update 5:20 PM 6. Ice Rink Operating Agreement Extension with Hagerstown Youth Hockey Association (HYHA) 5:35 PM 7. Police Residency Program 5:50 PM 8. Crime Free Housing CITY ADMINISTRATOR'S COMMENTS MAYOR AND COUNCIL COMMENTS ADJOURN 6:30 p.m.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: 30th Special Session - Economic Analysis and Implementation Plan for Hagerstown's Sustainable Community Plan Mayor and City Council Action Requested: Award of contract to the selected consultant team at a special meeting on December 3rd. Staff will be present at the December 3rd work session to answer any questions about the selection process and the planned project to develop a strategic implementation plan for Hagerstown's Sustainable Community Plan. This project will be 100% grant funded. Discussion: Planned Project The City will hire a consultant with a deep portfolio in downtown revitalization planning and in conducting economic analyses of downtown catalyst projects to assist the City in developing a strategic implementation plan for the objectives in Hagerstown's 2012 Sustainable Community Plan. The scope of work for the project includes not only an economic analysis of Hagerstown's 2012 Sustainable Community Plan, but also a community engagement exercise. This exercise will further develop tactics and strategies to implement the plan's objectives and build community support for our downtown vision and projects intended to catalyze revitalization. As a result of their analysis and the community engagement process, the consultant will prepare a cost benefit analysis of identified catalyst projects to spark revitalization of Hagerstown's City Center and an implementation plan to achieve our vision for downtown. Our budget is the $100,000 DBED grant. We anticipate starting the project in mid-December with project completion by the end of June 2014. Review of Consultant Proposals The City posted the RFP for this project on a number of web sites likely to draw the attention of planning and economic firms. We received a very good response with 14 proposals. A committee of City Planning and Economic Development staff reviewed and ranked the proposals based on experience of the team and their proposed approach for our project. As a result of this process, the committee selected a short list of six consultant teams for interviews. The ranking of the proposals was further refined following the interviews and the committee decided, as a result, to narrow the selection process down to three preferred consultant teams. Each preferred team demonstrated a deep portfolio of relevant work history for our project, had a dynamic team put together, and outlined an intriguing approach to our project. We opened the price proposals from those three teams and then deliberated on which team we felt would mesh best with Hagerstown, bring forward an achievable action plan to implement our Sustainable Community Plan, and build interest for the downtown through community engagement. After narrowing the firms down to one recommended team, staff contacted references for our recommended team to determine if their experiences would reinforce our impressions of the recommended team. Staff Recommendation Staff recommend that the City award the contract to Urban Partners for their price proposal of $79,910. The Urban Partners proposal was not only the low bid, but the consultant team was the Committee's preferred team based on their experience, the individuals involved in the interview process, and their approach for our project. Staff contacted representatives from six communities with prior experience working with Urban Partners and their sub-consultant, Brown & Keener. Of the five who returned our calls, each had glowing comments about their experiences with Urban Partners and Brown & Keener. They all said they would work with these consultants again, and, in fact, many of them have worked with them on multiple projects. One particular long association is Urban Partners' 20 year relationship with the City of Savannah, GA. Representatives indicated that Jim Hartling, the founding partner of Urban Partners, is quite skilled at combining ambitious ideas with pragmatism and bringing people together in formulating strategic action plans to turn around or enhance downtown economies. Mr. Hartling has both public and private sector experience in economic development, has undertaken development projects in addition to assisting clients to assess the financial feasibility of undertaking catalyst projects, serves on the board of a number of Philadelphia non-profits related to economic and community development, and teaches on this topic at the University of Pennsylvania. We believe Urban Partners with their sub-consultant, Brown & Keener, is qualified to meet the requirements of this project and their price proposal is within budget. In fact, given the fact that the project came in under budget, there is the potential to expand the scope of work to gain additional work from the consultants, if so approved by the Mayor and City Council and our granting agency. Financial Impact: This project is 100% funded by a $100,000 grant from the Maryland Department of Business & Economic Development. Recommendation: Award of contract to the low bidder, Urban Partners of Philadelphia, for their bid of $79,910 for the project to prepare an economic analysis and develop an implementation plan for Hagerstown's Sustainable Community Plan. Motion: Action Dates: M&CC Discussion: August 13, 2013, September 17, 2013, December 3, 2013 M&CC Authorization to Accept Grant: September 24, 2013 M&CC Award of Contract: December 3, 2013 Special Session ATTACHMENTS: Name: Description: Urban_Partners_Proposal.pdf Economic Analyis and Implementation Plan for HSCP Econ_Analysis___Implem_Plan_M_CC_memo_11_26_13.pdf Economic Analyis and Implementation Plan for HSCP Special_Session_12_3_13.pdf 30th Special Session  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Proclamation - Houses of Worship Tour 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: Community Coalition Lobbyist Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Chamber.pdf Community Coalition Lobbyist  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Enterprise Fund Dividend Transfer Policy Mayor and City Council Action Requested: Per the October 8, 2013 request of the Mayor and Council regarding Utility Dividend Transfers to the General Fund, Staff has developed a draft Enterprise Fund Dividend Transfer Policy for review and discussion. The proposed policy has incorporated the evaluation process required to ensure the financial health of the funds and the language contained within the Community Betterment Fund Policy into one definitive document. Staff will be available at the December 3rd Work Session for discussion. Discussion: As part of its year end annual financial evaluation process, the City will consider whether it is appropriate and prudent to transfer a portion of the unused retained earnings of an Enterprise Fund. Uses of the fund will include non-recurring capital expenditures for city neighborhoods, downtown redevelopment, economic development projects, park improvements and special one-time projects. This transfer payment cannot be considered a normal cost of Enterprise Fund operations recoverable through the rate base. Rather, it is to be paid out of the annual net profits of the prior year just as a private investor owned utility would pay their shareholders a dividend from these sources. The following controls will be utilized to ensure that the payment of dividends by an Enterprise Fund does not jeopardize the financial health of the Fund. On an annual  basis after the prior fiscal year end audited financial statements are presented, an updated financial projection analysis of the Enterprise Funds will be done. The analysis will include all expected sources and uses of funds for the current year as well as funding approved through the current approved budget. Adequate funds within the Enterprise Funds must be provided for debt interest, principal repayments and any debt coverage requirements. A minimum working capital reserve level equal to two months of operating costs must be maintained at all times. Operating cost is defined as total operating expenses less depreciation and interest expense. Additionally, for those Enterprise Funds utilizing a 3R Reserve, 1% of the cost of replacement of the total asset must be maintained in a restricted cash account. Capital expenditures on average during the projection period must be at a level at least equal to the average depreciation expense during the projection period. (This control is intended to prevent underfunding replacement capital expenditures to allow for dividend transfers). Payment will be made after reviewing the prior year's audited financial statements, and preparation of an updated financial projection analysis for an Enterprise Fund. Mayor and Council shall act on staff recommendation and declare a dividend if appropriate and in compliance with this policy through an approval of a Motion. These needs must be anticipated and adequately provided for in the Enterprise Funds. Financial Impact: To be Determined Recommendation: Motion: Action Dates: December 3, 2013 Work Session ATTACHMENTS: Name: Description: Memo_for_Enterprise_Fund_Dividend_Policy_120313.doc Memo for Enterprise Fund Dividend Policy 120313 Enterprise_Fund_Dividend_Transfer_Policy_Rev_112513.doc Enterprise Fund Dividend Transfer Policy  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 December 3, 2013 TO: Bruce Zimmerman, City Administrator FROM: Michael S. Spiker, Director of Utilities SUBJECT: Enterprise Fund Dividend Transfer Policy ACTION: Discussion / No action required Per the October 8, 2013 request of the Mayor and Council regarding Utility Dividend Transfers to the General Fund, Staff has developed a draft Enterprise Fund Dividend Transfer Policy for review and discussion. The proposed policy has incorporated the evaluation process required to ensure the financial health of the funds and the language contained within the Community Betterment Fund Policy into one definitive document. Staff will be available at the December 3rd Work Session for discussion. 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  Enterprise Fund Dividend Transfer Policy As part of its year end annual financial evaluation process, the City will consider whether it is appropriate and prudent to transfer a portion of the unused retained earnings of an Enterprise Fund. Uses of the fund will include non-recurring capital expenditures for city neighborhoods, downtown redevelopment, economic development projects, park improvements and special one-time projects. This transfer payment cannot be considered a normal cost of Enterprise Fund operations recoverable through the rate base. Rather, it is to be paid out of the annual net profits of the prior year just as a private investor owned utility would pay their shareholders a dividend from these sources. The following controls will be utilized to ensure that the payment of dividends by an Enterprise Fund does not jeopardize the financial health of the Fund. • On an annual basis after the prior fiscal year end audited financial statements are presented, an updated financial projection analysis of the Enterprise Funds will be done. The analysis will include all expected sources and uses of funds for the current year as well as funding approved through the current approved budget. • Adequate funds within the Enterprise Funds must be provided for debt interest, principal repayments and any debt coverage requirements. A minimum working capital reserve level equal to two months of operating costs must be maintained at all times. Operating cost is defined as total operating expenses less depreciation and interest expense. Additionally, for those Enterprise Funds utilizing a 3R Reserve, 1% of the cost of replacement of the total asset must be maintained in a restricted cash account. • Capital expenditures on average during the projection period must be at a level at least equal to the average depreciation expense during the projection period. (This control is intended to prevent underfunding replacement capital expenditures to allow for dividend transfers). • Payment will be made after reviewing the prior year's audited financial statements, and preparation of an updated financial projection analysis for an Enterprise Fund. • Mayor and Council shall act on staff recommendation and declare a dividend if appropriate and in compliance with this policy through an approval of a Motion. These needs must be anticipated and adequately provided for in the Enterprise Funds. Revision date November 25, 2013  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Hagerstown Light Department Wholesale Power Contract Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Wholesale_Power_Contract.pdf Hagerstown Light Department Wholesale Power Contract  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Noise Ordinance Update Mayor and City Council Action Requested: Per comments raised at the September 24th meeting of the Mayor and City Council, staff reconsidered certain provisions of the proposed update to the Noise Ordinance, Chapter 155 of the City Code, and have drafted revisions for the Mayor and City Council's consideration. Introduction of an Ordinance on December 17, 2013 to repeal Chapter 155, Noise, and replace it with Chapter 155, Noise Control. (The ordinance introduced on September 24th was allowed to expire, so that the new provisions could be contemplated.) Discussion: The City Attorney has participated in the discussions on these revisions and preparation of the variance provisions, and has determined that he is comfortable that the proposed ordinance passes legal muster. The Police Chief and his staff have also participated in these discussions and they have determined that the proposed ordinance is a reasonable approach to address protection from excessive noise. The proposed update would provide a good tool to complement the other disturbing the peace codes available to HPD. Proposed Revisions The attached draft ordinance incorporates the following revisions in response to concerns raised by members of the Mayor and City Council at the September 24th meeting: 1.The test for determining a violation of the Noise Ordinance will be measured in decibels, rather than a "plainly audible" test as exists in the current ordinance. This means of detection is consistent with other ordinances in Maryland. The decibel maximums cited for daytime and nighttime match the Annapolis and Frederick ordinances and are very similar to the Bowie and Montgomery County ordinances. Decibel readings will be taken at the following distances/locations: a.when the noise source is on private property, the decibel reading is measured at or outside the property boundary or at any point within any other property affected by the noise; b.when the noise source is in the public right-of-way or other public space, the decibel reading is measured at least 100 feet from the noise source; c.when the noise source is located inside a multi-unit residential structure, the decibel reading is measured from common areas or from other dwelling units in the structure.  2.The technical data related to the decibel definition and the equipment and techniques employed in the measurement of noise levels matches language in the Frederick and Bowie ordinances. 3.The Special Permits section has been changed to a Variance section that allows granting approval for sounds exceeding the noise ordinance standards under certain circumstances. The variances would be granted or denied by the City Clerk. Appeals of the City Clerk's decision would be heard by the Appeals Board established in section 95-2 of the City Code. Financial Impact: Recommendation: Introduction of the ordinance to repeal existing Chapter 155, Noise, and adopt new Chapter 155, Noise Control. Motion: Action Dates: M&CC Discussion: September 3, 2013 Introduction of Ordinance: September 24, 2013 (allowed to expire to provide time for further exploration by staff of issues raised at the meeting) M&CC Discussion: December 3, 2013 Introduction of Ordinance (if ready): December 17, 2013 Adoptiof of Ordinance: January 28, 2014 ATTACHMENTS: Name: Description: Noise_Ordinance_Update_-_Cover_Memo_and_Draft_Ordinance_12_3_13.pdf Noise Ordinance Update  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Ice Rink Operating Agreement Extension with Hagerstown Youth Hockey Association (HYHA) Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Ice_Rink_operating_agreement.pdf Ice Rink Operating Agreement Extension with Hagerstown Youth Hockey Association (HYHA)  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Police Residency Program Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Police_Residency_Program.pdf Police Residency Program  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Crime Free Housing Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: Crime_Free_Housing.pdf Crime Free Housing  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: 6:30 p.m. Mayor and City Council Action Requested: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: Name: Description: No Attachments Available