Work Session

Mayor and Council 28th Special Session and Work Session November 14, 2017 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." "Choosing to be positive and having a grateful attitude is going to determine how you're going to live your life." Joel Osteen 4:00 PM SPECIAL SESSION 1. Approval of Purchase - Battalion Vehicle - McCafferty Ford (Mechanicsburg, PA ($ 62,601.87 2. Approval of an Open Containers Exemption – Christkindle Markt 3. Approval of Fund Balance/Retained Earnings Policy 4:00 PM WORK SESSION 4:10 PM 1. Proclamations: Transgender Day of Remembrance (November 20) World AIDS Day (December 1) 4:15 PM 2. Donation Offer for City Park - Rodney Tissue, City Engineer, and Jennifer Keefer, City Attorney 4:35 PM 3. Hagerstown Business Revolving Loan Program Guideline Updates - Jonathan Kerns, Community Development Manager 4:55 PM 4. Homeownership Program Guideline Updates - Jonathan Kerns, Community Development Manager 5:10 PM 5. VerStandig Broadcasting Discussion - Mayor and City Council CITY ADMINISTRATOR'S COMMENTS MAYOR AND COUNCIL COMMENTS ADJOURN  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of Purchase - Battalion Vehicle - McCafferty Ford (Mechanicsburg, PA ($ 62,601.87 Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Purchase_-_Battalion_Vehicle.pdf Motion and Purchase Form  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of an Open Containers Exemption – Christkindle Markt Mayor and City Council Action Required: Discussion: At the November 14, 2017 Special Session, staff will review and seek Mayor and City Council approval of an additional exemption from the Open Container Law for Main Street Hagerstown’s Christkindle Markt event on December 2nd, 2017. The actual liquor license for this event will be held by the Schmankerl Stube Bavarian Restaurant. Per the City of Hagerstown’s Open Container Law, the Mayor and City Council may permit the possession of alcoholic beverages in open containers on the streets, lanes, alleys, sidewalks, parking lots or public ways of the City during special events upon application or upon its own initiative. If approved by the Mayor and City Council, these applications will go to the Liquor Board for review and final approval. Financial Impact: Recommendation: Motion: I hereby move that Mayor and Council approve an exemption from the City of Hagerstown’s Open Containers regulation under section 173-6 of the Code of the City of Hagerstown for the Christkindle Markt on December 2, 2017. Action Dates: DATE OF PASSAGE: 11/14/2017 ATTACHMENTS: File Name Description Approval of an Open 111417_Open_Container_Christkindle.pdf Containers Exemption – Christkindle Markt  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of Fund Balance/Retained Earnings Policy Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Motion.General_Fund_Balance_-_Retained_Earnings_Policy.pdf Motion - Fund Balance/Retained Earnings Fund_Balance_Policy_November_14__2017.pdf Fund Balance/Retained Earnings Policy  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Date: November 14, 2017 TOPIC: Approval of Fund Balance/Retained Earnings Policy Charter Amendment Code Amendment Ordinance Resolution Other X MOTION: I hereby move for Mayor and Council approval of the attached amended General Fund Balance/Retained Earnings Policy to provide guidance during the preparation and execution of the annual budget to ensure that sufficient reserves are maintained for future sustainability. This amendment updates the policy approved in 1993. DATE OF PASSAGE: 11/14/2017  FUND BALANCE /RETAINED EARNINGS POLICY GENERAL FUND 1. The City will maintain a minimum unassigned General Fund balance to be used for unanticipated emergencies of not less than seventeen (17) percent of the General Operating Budget (excluding Capital Outlay). This is a minimum level necessary to avoid cash flow interruptions, generate interest income, reduce the need for short–term borrowing and assist in the maintaining an investment grade bond rating. Consideration must also be given to the number of months of coverage the minimum level provides. A minimum level of two (2) months of regular General Fund operating expenditures should be maintained within the fund balance 2. To the extent that the unassigned General Fund balance exceeds the targeted seventeen (17) percent, the City may draw upon these funds to provide pay-go financing for capital projects or for other one-time capital items. The City may designate parts of the unassigned General Fund balance that would represent tentative management plans rather than actual restrictions on the use of the funds. The funds may also be used to allow time for the City to restructure its operations in a deliberate manner but only in the context of long-term fiscal planning. a. If the fund balance should fall below the above minimum due to use for an unplanned emergency situation, defined as a sudden steep decline in revenue from which no reasonable expenditure reduction or tax rate increase can be planned and implemented in a timely fashion, the City will budget a portion of General Fund revenue estimated for that fiscal year in an amount to get back to the seventeen (17) percent within five (5) fiscal years. ENTERPRISE FUNDS 1. The City will strive to maintain sufficient retained earnings in the Enterprise funds to ensure its working capital needs, minor continuing system improvements, and general system improvements needs are met. In addition, there is a review and monitoring of the Enterprise funds retained earnings for the Enterprise Fund Dividend Transfer Policy. This dividend transfer policy includes a minimum working capital reserve level of two (2) months. HEALTH INSURANCE FUND 1. The City will maintain a minimum unassigned fund balance: a. that covers thirty (30) percent of its annual total expenditures excluding transfers to other city funds; b. that will adequately fund annual Other Post Employment Benefit (OPEB) trust as determined from prior year actuarial report; and c. that covers a minimum level of three and half (3.5) months of regular health insurance fund operating expenditures. 2. To the extent all of the above conditions are met, transfers of surplus fund balance amounts can be utilized to reimburse other city funds for prior year accumulations based upon percentage of funding provided by each fund. Approved: August 20, 1993 Amended: November 14, 2017  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Proclamations: Transgender Day of Remembrance (November 20) World AIDS Day (December 1) Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Donation Offer for City Park - Rodney Tissue, City Engineer, and Jennifer Keefer, City Attorney Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description memo_-_Donation_Offer_for_City_Park.pdf Memo- Donation Offer  CITY OF HAGERSTOWN, MARYLAND Donna K. Spickler City Clerk One East Franklin Street • Hagerstown, MD 21740 E-mail: dspickler@hagerstownmd.org Telephone: 301.766.4183 • TDD: 301.797.6617 TO: Mayor and City Council Members Valerie Means, City Administrator FROM: Donna K. Spickler, City Clerk SUBJECT: Donation Offer for City Park DATE: November 9, 2017 ------------------------------------------------------------------- Time is included during the November 14, 2017 Work Session to continue a discussion with all Mayor and Council members regarding a donation offer for the City Park. Rodney Tissue, City Engineer, and Jennifer Keefer, City Attorney, will be present at the Work Session.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Hagerstown Business Revolving Loan Program Guideline Updates - Jonathan Kerns, Community Development Manager Mayor and City Council Action Required: Staff seek Mayor & City Council feedback on proposed updates to the City’s Hagerstown Revolving Loan Fund (HRLF) guidelines. DCED staff have reviewed the existing guidelines with the members of the Hagerstown Loan Review Authority (HLRA) and the City Attorney. Many of the proposed updates are routine in nature and all updates will ensure the guidelines reflect current practice. Discussion: Background The Hagerstown Revolving Loan Fund was established in 1999 in order to make direct low- interest loans to businesses for certain approved activities within the City of Hagerstown. The program was initially funded with local funding and State grant funding. In recent years, additional State grant funding has been awarded to the program. The HRLF currently has 15 active loans with a total outstanding balance of $948,889.75. Highlights of Proposed Guideline Updates The majority of the proposed changes to the existing guidelines are routine in nature. Highlights of the recommended updates include the following: All references to Hagerstown Redevelopment Authority (HRA) to be deleted and replaced with Hagerstown Loan Review Authority (HLRA) Adding flexibility to the interest rate section of the guidelines to allow the HLRA to determine loan interest on a case-by-case basis Adding a standard, fixed fee for late payments and defining when delinquent loans transition to default status Removing Federal Community Development Block Grant job creation language that is not applicable to the HRLF Updating loan approval process section of the guidelines to reflect actual practice of requiring HLRA approval for all loans above $10,000 With assistance from the City Attorney and the HLRA, DCED staff are finalizing all proposed updates to the HRLF guidelines. A draft version of the full guidelines reflecting the proposed updates will be available for review during Tuesday’s work session. Staff will be available to answer any questions on the proposed guideline updates. Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description 111417_HRLF__Guidelines.pdf HRLF Guidelines  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Homeownership Program Guideline Updates - Jonathan Kerns, Community Development Manager Mayor and City Council Action Required: Staff seek Mayor & City Council approval to update the City’s CDBG Homeownership Program Guidelines. The proposed updates will align with Federal CDBG regulations and provide more flexibility when selling CDBG Homeownership properties. Discussion: During the October 10th Work Session, City staff updated the Mayor & Council on City owned properties. A segment of this discussion focused on properties owned as part of the CDBG Homeownership Program. The City’s Homeownership Program utilizes Federal CDBG funding to acquire, renovate, and sell residential properties to homeowners. The majority of the properties acquired through this program are blighted and/or vacant structures with significant code violations. Since the early 1990’s, the City has purchased, renovated, and sold approximately 105 properties within the program. The goal of the program is to encourage homeownership opportunities through the rehabilitation of vacant and blighted properties. The City currently owns four structures as part of the CDBG Homeownership Program. This includes the following: 212-214 N Jonathan Street - Duplex structure purchased in 1993, two units for sale. Property is in need of general interior and exterior maintenance. 441-443 N Jonathan Street - Duplex structure purchased in 2005, two units for sale. Recent maintenance work was completed and property is in move in condition. 64 East Franklin Street - Single Family structure purchased in 2014, one unit for sale. Full renovations were completed within last 12 months and property is in move in condition. 261 South Prospect Street - Multi-unit structure purchased in 2015, currently contains four vacant, substandard units. Initial demo work has begun and renovations expected to begin in late 2017 to create two units for sale. Proposed Homeownership Program Guideline Updates 1. Current program guidelines require ALL CDBG Homeownership units to be resold directly to a CDBG eligible, low/moderate income household. Staff recommend removing this requirement for duplex structures within the Homeownership Program. For duplex structures within the program, only 1 of 2 units would be required to be resold to a CDBG eligible, low/moderate income household. The remaining unit could be sold to a household with no income restrictions.  1. Current program guidelines require CDBG Homeownership homes to be resold at appraised value. Staff recommend the target sale price remain at appraised value but guidelines should permit an exception to this requirement. Exception would require Mayor & City Council approval on a case-by-case basis. 1. Current program guidelines require all units be resold and utilized for owner occupancy. Staff recommend owner occupancy remain the priority use for homes resold within the program but guidelines should permit an exception to this requirement. Exception would require Mayor & City Council approval on a case-by-case basis. 1. Current program guidelines require Homeownership Program mortgage lending to be provided in-house by the City of Hagerstown and/or be provided via a combination of in- house mortgage lending and private mortgage lending. Staff recommend updating the guidelines to reflect current practice of permitting applicants to secure any private mortgage lender of their choice. All of these recommended changes would be permitted under the Federal CDBG regulations. Per the City of Hagerstown CDBG Citizen Participation Plan, any proposed changes to the Homeownership Program guidelines must be advertised in the Herald Mail. This advertisement is followed by a 30 day public comment period. Once the 30 day comment period expires, any guideline changes would become effective after approval by the Mayor & City Council. Staff will be available during the work session to answer any questions on the proposed changes to the Homeownership Program guidelines. Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description 111417_Homeownership_Guidelines.pdf Homeownership Program Guideline Updates  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: VerStandig Broadcasting Discussion - Mayor and City Council Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Memo_-_VerStandig_Broadcasting_Discussion.pdf Memo- VerStandig Broadcasting  CITY OF HAGERSTOWN, MARYLAND Donna K. Spickler City Clerk One East Franklin Street • Hagerstown, MD 21740 E-mail: dspickler@hagerstownmd.org Telephone: 301.766.4183 • TDD: 301.797.6617 TO: Mayor and City Council Members Valerie Means, City Administrator FROM: Donna K. Spickler, City Clerk SUBJECT: VerStandig Broadcasting DATE: November 9, 2017 ------------------------------------------------------------------- The November 14, 2017 Work Session agenda includes continuation of the Mayor and Council discussion regarding VerStandig Broadcasting. This item was tabled at the October 24, 2017 Regular Session. At that time, Councilmembers requested it be brought back for discussion at a Work Session. The tabled item will be placed on your Regular Session agenda on November 28, 2017 as Unfinished Business. Thank you.