Work Session

Mayor and Council American Rescue Plan Act (ARPA) Discussion, Special Session (28th Voting Session), and Work Session December 14, 2021 Agenda "The City of Hagerstown will promote a diverse, business-friendly, and sustainable community with clean, safe, and strong neighborhoods." "The City of Hagerstown shall be the model provider of the most efficient and highest quality customer services to be known as the municipal location of choice for all" The agenda and meeting packet is available at www.hagerstownmd.org/government/agenda “Blessed is the season which engages the whole world in a conspiracy of love!” -Hamilton Wright Mabie 9:00 AM American Rescue Plan Act (ARPA) Discussion Meeting Location: Council Chamber, Second Floor, City Hall 4:00 PM SPECIAL SESSION 4:00 PM 1. Approval of an Ordinance: Quit Claim Deed for Portion of Alley #2-105 to Columbia Gas of Maryland, Inc. 4:00 PM WORK SESSION 4:10 PM 1. FY21 Comprehensive Annual Financial Report ~ Michelle Hepburn, Chief Financial Officer and Christopher Lehman, Engagement Partner 4:35 PM 2. Preliminary Agenda Review 4:45 PM 3. Red Light and Speed Cameras Update ~ Paul Kifer, Chief of Police 5:00 PM 4. Code Amendments – Section 238 and 240 ~ Nancy Hausrath, Director of Utilities 5:15 PM 5. Review of Ideas and Options for a Proposed New Farmer’s Market ~ Jill Thompson, Director of Community & Economic Development and Cathleen Miller, Part-Time Farmers Market Coordinator CITY ADMINISTRATOR'S COMMENTS MAYOR AND COUNCIL COMMENTS ADJOURN  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: American Rescue Plan Act (ARPA) Discussion Meeting Location: Council Chamber, Second Floor, City Hall Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Approval of an Ordinance: Quit Claim Deed for Portion of Alley #2-105 to Columbia Gas of Maryland, Inc. Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Motion_Ordinance_and_Deed_-_Columbia_Gas_of_MD__12-14- Motion, Ordinance, Quit 21.pdf Claim - Columbia Gas  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Date: December 14, 2021 TOPIC: Approval of an Ordinance: Quit Claim Deed for Portion of Alley #2- 105 to Columbia Gas of Maryland, Inc. Charter Amendment Code Amendment Ordinance X Resolution Other MOTION: I hereby move to approve an ordinance approving a Quit Claim Deed for a portion of Alley #2-105 to Columbia Gas of Maryland, Inc. The Mayor and City Council have determined that this property is no longer needed for a public purpose and are authorizing its conveyance to an adjoining property owner subject to certain conditions set forth in the Ordinance. DATE OF INTRODUCTION: November 23, 2021 DATE OF PASSAGE: December 14, 2021 EFFECTIVE DATE: January 14, 2022  CITY OF HAGERSTOWN, MARYLAND AN ORDINANCE MAKING A DETERMINATION THAT CERTAIN PROPERTY IS NO LONGERNEEDED FOR A PUBLIC PURPOSE AND AUTHORIZING CONVEYANCE TO AN ADJOINING PROPERTY OWNER SUBJECT TO THE LAND DIVISION REQUIRED PER THE TERMS OF SALE OF THE ADJOINING PROPERTY TO THE CITY RECITALS WHEREAS, the City of Hagerstown is a Municipal Corporation existing under and by virtue of the laws of the State of Maryland; and WHEREAS, the City has an interest in a parcel of land lying west of Potomac Street, in the City of Hagerstown, commonly known and designated as Alley #2-105 (“the Alley”); and WHEREAS, in accordance with the provision of the Maryland Code and the Charter of the City of Hagerstown, the Mayor and Council, as the duly constituted legislative body for the City has determined that a portion (specifically 3645 square feet as depicted on the drawing which is attached as Exhibit 1 to the attached Quit Claim Deed) of the aforesaid Alley, will no longer be needed for a public purpose, should the City effect the land division contemplated in Paragraph 2 of that certain Purchase Agreement between it and Columbia Gas of Maryland, Inc. (“Columbia”) dated July 16, 2021 and subsequently amended on October 26, 2021 (collectively “the Purchase Agreement.”) The portion of said Alley #2-105 is hereinafter referred to as the “Alley Portion”; and WHEREAS, Columbia owns property adjoining Alley #2-105 and has requested that the City execute a quit claim of its right, title and interest to the Alley Portion adjacent to and adjoining its property, as a condition of subdividing its property and ultimately selling the subdivided portion to the City in accordance with the Agreement. The portion of Columbia’s property to be subdivided and sold to the City is depicted as Purchase Area “A” and Purchase Area “B” on Exhibit 1 to the attached Quit Claim Deed; and WHEREAS, the City agrees to transfer the Alley Portion to Columbia, subject to the terms set forth in this Ordinance; WHEREAS, the introduction of this Ordinance shall constitute the twenty (20)-day notice of the proposed transfer as required by law; and  WHEREAS, the Mayor and Council find that the Alley Portion may be quit claimed to the property owner, Columbia, but that said quit claim is made specifically contingent upon the City effecting the land division required in the Purchase Agreement, as well as any subsequent amendments to said Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED, ENACTED AND ORDAINED as follows: 1. That the foregoing recitals be and are incorporated herein as if fully set forth. 2. That the Mayor and Council find that the Parcel no longer needed for a public purpose. 3. That the Mayor be and is hereby authorized to execute and deliver the attached Quit Claim Deed vesting all of its right, title and interest in the Alley Portion to the adjoining property owner, Columbia Gas of Maryland, Inc. The description and extent of the property so conveyed is as depicted on the attached Quit Claim Deed. The Mayor shall execute said Quit Claim only in the event that the City effects the land division required in the Purchase Agreement, as well as any subsequent amendments to said Purchase Agreement. If the land division is not effected, then the City shall not quitclaim the Alley Portion to Columbia. 4. That the Mayor be and is hereby authorized to execute the attached Quit Claim Deed, and such additional documentation and take all necessary steps to carry out the purpose of this Ordinance. BE IT FURTHER RESOLVED, ENACTED AND ORDAINED, that this Ordinance shall become effective upon the expiration of 30 days from the date of its passage. WITNESS AND ATTEST MAYOR AND COUNCIL OF THE AS TO CORPORATE SEAL CITY OF HAGERSTOWN, MARYLAND __________________________ _________________________________ Donna K. Spickler Emily N. Keller, Mayor City Clerk Date of Introduction: November 23, 2021 PREPARED BY: Date of Passage: December 14, 2021 SALVATORE & MORTON Effective Date: January 14, 2022 CITY ATTORNEYS NO TITLE EXAM THIS QUIT CLAIM DEED, Made this ____ day of ___________________, 2022, by THE CITY OF HAGERSTOWN, a MARYLAND MUNICIPAL CORPORATION, “Grantor”, to COLUMBIA GAS OF MARYLAND, INC, a corporation formed and existing under the laws of the State of Maryland, “Grantee”. The Mayor and Council of the City of Hagerstown, as its duly constituted legislative body, and pursuant to Article 23A of the Annotated Code of Maryland and the Charter of the City of Hagerstown, have determined that the property hereinafter described and shown is no longer needed for a public purpose. On November 23, 2021, the Mayor and Council enacted an Ordinance, with an effective date of January 14, 2022, to that effect and authorized abandonment of the hereinafter described property and the transfer of the property by Quit Claim Deed to Columbia Gas of Maryland, Inc. a corporation authorized to conduct business in the State of Maryland, hereinafter referred to as “GRANTEE”. The purpose of this Quit Claim Deed is to transfer ownership of all that hereinafter described property to Columbia Gas of Maryland, Inc. WITNESSETH: NOW, THEREFORE, the GRANTOR, for no monetary consideration, but for other good and valuable consideration, does by these presents release and forever quitclaim to GRANTEE, all the right, title, interest, estate, claims, and demands, both at law and in equity of the GRANTOR in and to the hereinafter described portion of the bed of Ally #2-105, situate and lying in Election District 3, City of Hagerstown, Washington County, Maryland, namely, a portion of Alley 2-105 containing 3,645 S.F. as depicted on a drawing prepared by Jeffrey N. Swan, City Surveyor, dated July 22, 2021 and titled “Subdivision of Lands of Columbia Gas of Maryland, Inc.,” attached hereto and incorporated by reference. The above-described parcel is hereby conveyed subject to and together with any and all conditions, restrictions, limitations, easements and rights of way of record applicable thereto, including but not limited those set forth on said drawing. The City specifically reserves unto itself a perpetual and permanent easement over all of said quitclaimed property for access to the electric and communication system including all trenches, conduits, cables, poles, guy wires & anchors, and other facilities over, under, and upon said property, for the purpose of constructing, inspecting, maintaining, repairing, altering, replacing, operating and/or removing said utility lines. City shall replace and restore any area on the property disturbed by City’s construction, inspection, maintenance, repair, alteration, replacement, operation and/or removal of said facilities to as near as practical to the property’s original condition. This easement is for the benefit of the City and shall be covenant running with said lands and binding upon the Grantee’s heirs, successors and assigns.  This deed has been prepared without the benefit of a title examination. All parties affirm their understanding that only a title examination will disclose the status of title, including but not limited to, the quality and quantity of title; the possibility of other persons having an interest in the property conveyed by this deed, as well as any other matters disclosed by an examination of title. Notwithstanding this disclosure and having been fully informed of the cost of accomplishing an examination of title, we elect not to have an examination of this title and release the scrivener of this deed from all and any loss, claim, damages and/or liability resulting from a condition of title which might have been disclosed by a title examination of the property conveyed by this deed. AFFIDAVIT OF TOTAL PAYMENT TO GRANTOR(S) Pursuant to the Annotated Code of Maryland, Tax General Article Section 10-912, the herein Grantor(s) hereby state under the penalties of perjury that: (1) It is a Resident Entity of the State of Maryland; (2) The purchase price of the herein described property is $0.00, as recited herein; The above property is conveyed subject to and together with all the conditions, restrictions, easements, and rights of way of record applicable thereto. WITNESS the hand and seal of the Grantor by its duly authorized officer. ATTEST: CITY OF HAGERSTOWN, a Maryland Municipal Corporation _________________________________ __________________________________(SEAL) Donna K. Spickler, City Clerk By: Emily N. Keller, Mayor ATTEST: COLUMBIA GAS OF MARYLAND, INC. _________________________________ __________________________________(SEAL) By: Printed name: Title: STATE OF MARYLAND, COUNTY OF WASHINGTON, to-wit: I HEREBY CERTIFY, that on this _____ day of ______________________, 2022, before me, the subscriber, a Notary Public of the State and County aforesaid, personally appeared Emily N. Keller, Mayor of the City of Hagerstown, who acknowledged that he executed the aforegoing deed for the purposes therein contained. WITNESS my hand and Official Notarial Seal. ________________________________________ Notary Public My Commission Expires: STATE OF MARYLAND, COUNTY OF WASHINGTON, to-wit: I HEREBY CERTIFY, that on this _____ day of ______________________, 2022, before me, the subscriber, a Notary Public of the State and County aforesaid, personally appeared _______________, the __________________of Columbia Gas of Maryland, Inc., who acknowledged that he executed the aforegoing deed for the purposes therein contained. WITNESS my hand and Official Notarial Seal. ________________________________________ Notary Public My Commission Expires: This is to certify that the within instrument was prepared by or under the supervision of the undersigned attorney at law. ________________________________________ Jason Morton Mail to: Columbia Gas of Maryland, Inc. c/o NiSource Real Estate Services 801 E. 86th Avenue Merrillville, Indiana 46410 Attn: Corporate Real Estate Department  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: FY21 Comprehensive Annual Financial Report ~ Michelle Hepburn, Chief Financial Officer and Christopher Lehman, Engagement Partner Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description FY21 Comprehensive FY21_Auditor_Annual_Report_Presentation.pdf Annual Financial Report and Presentation Knowledge ∙ Quality ∙ Client Service Presentation to the City Council December 14, 2021 AGENDA Introductions Executive Summary Audit Approach Audit Results Required Communications Meeting Your Expectations K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 2  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Introductions  INTRODUCTIONS SB & Company, LLC ❖ Chris Lehman, Engagement Partner K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 4  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Executive Summary  SCOPE OF SERVICES ▪ Audit of the June 30, 2021, financial statements ▪ Performance of Uniform Guidance Single Audit ▪ Review of Uniform Financial Report ▪ Review of Data Collection form ▪ Available for year-round consultation K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 6  SUMMARY OF THE RESULTS 2021 2020 2019 Change in Net Position $ 15,060,007 $ 3,964,305 $ 4,794,879 Net Position $ 218,658,511 $ 203,598,504 $ 199,634,199 K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 7  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Audit Approach K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 9  ASSESSMENT OF CONTROL ENVIRONMENT Area Points to Consider Our Assessment ▪ Key executive integrity, ethical, and behavior ▪ Control consciousness and operating style Control ▪ Commitment to competence Effective Environment ▪ Board’s participation in governance and oversight ▪ Organizational structure, responsibility, and authority ▪ HR policies and procedures Risk ▪ Mechanisms to anticipate, identify, and react to significant events Effective Assessment ▪ Processes and procedures to identify changes in GAAP, business practices, and internal control ▪ Adequate performance reports produced from information systems ▪ Information systems are connected with business strategy Information & ▪ Commitment of HR and finance to develop, test, and monitor IT systems and programs Effective Communication ▪ Business continuity and disaster recovery for IT ▪ Established communication channels for employees to fulfill responsibilities ▪ Adequate communication across organization ▪ Existence of necessary policies and procedures ▪ Clear financial objectives with active monitoring Control ▪ Logical segregation of duties Effective Activities ▪ Periodic comparisons of book-to-actual and physical count-to-books ▪ Adequate safeguards of documents, records, and assets ▪ Assess controls in place ▪ Periodic evaluations of internal controls Monitoring ▪ Implementation of improvement recommendations Effective K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 10  EVALUATION OF KEY PROCESSES Process Function A B C D Our Assessment • Cash Management • Investment Accounting • Investment Monitoring • Investment Valuation Treasury ✓ ✓ ✓ ✓ Effective • Investment Policy • Reconciliation • Methodology Estimation • Information ✓ ✓ ✓ * Effective • Calculation • Accounting Principles and • General Ledger and Journal Disclosure Entry Processing Financial • Closing the Books • Verification and Review of ✓ ✓ ✓ * Effective Reporting • Report Preparation Results • Purchasing • Receiving Expenditures ✓ ✓ ✓ ✓ Effective • Accounts Payable and Cash Disbursement A Understand the Process B What Can Go Wrong? C Walk-through D Test of Controls/Substantive * Substantive approach only K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 11  EVALUATION OF KEY PROCESSES (CONTINUED) Process Function A B C D Our Assessment • Attendance Reporting • Payroll Accounting and Processing Payroll ✓ ✓ ✓ ✓ Effective • Payroll Disbursements • Billing • Cash Receipts Revenue • Revenue Recognition ✓ ✓ ✓ ✓ Effective • Cutoff • Physical Custody • Asset and Construction in Process Accounting Fixed Assets ✓ ✓ ✓ ✓ Effective • Report Preparation A Understand the Process B What Can Go Wrong? C Walk-through D Test of Controls/Substantive K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 12  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Audit Results 14 FINANCIAL STATEMENT HIGHLIGHTS Governmental Activities Business-type Activities 2021 2020 2019 2021 2020 2019 Current and other assets $ 49,581,181 $ 34,564,319 $ 36,100,964 $ 48,385,929 $ 41,706,209 $ 44,549,690 Capital assets 87,371,825 85,000,642 84,100,043 198,258,171 203,091,109 201,017,529 Total assets 136,953,006 119,564,961 120,201,007 246,644,100 244,797,318 245,567,219 Deferred outflows 3,894,871 4,880,737 5,439,875 1,914,337 1,918,520 1,944,490 Long-term liabilities 75,365,678 83,119,191 82,329,480 54,300,512 58,249,238 60,975,530 Other liabilities 20,310,551 11,389,147 11,012,353 12,261,804 12,468,440 16,068,554 Total liabilities 95,676,229 94,508,338 93,341,833 66,562,316 70,717,678 77,044,084 Deferred inflows 7,203,001 1,576,619 2,423,082 1,306,257 760,397 709,393 Net position Net investment in capital assets 71,600,496 67,629,556 66,784,135 157,963,476 159,951,217 154,076,731 Restricted 5,539,165 4,812,010 11,549,646 - - - Unrestricted (39,171,014) (44,080,825) (48,457,814) 22,726,388 15,286,546 15,681,501 Total Net Position $ 37,968,647 $ 28,360,741 $ 29,875,967 $ 180,689,864 $ 175,237,763 $ 169,758,232 K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 14 15 FINANCIAL STATEMENT HIGHLIGHTS (CONTINUED) Governmental Activities Business-type Activities 2021 2020 2019 2021 2020 2019 REVENUES Charges for current services $ 9,455,056 $ 8,227,084 $ 9,038,555 $ 53,458,451 $ 52,065,364 $ 52,589,568 Operating grants and contributions 4,923,824 2,246,769 3,061,406 894,857 240,000 750,196 Capital grants and contributions 5,151,802 1,006,232 845,126 4,965,080 5,037,394 2,568,732 Property taxes 33,417,546 32,399,365 32,047,754 - - - Income and other taxes 6,749,366 5,930,706 5,735,651 - - - Miscellaneous 614,928 943,594 932,282 41,928 295,674 409,075 Total Revenues $ 60,312,522 $ 50,753,750 $ 51,660,774 $ 59,360,316 $ 57,638,432 $ 56,317,571 EXPENSES General government $ 10,425,129 $ 10,986,324 $ 10,613,252 $ - $ - $ - Public safety 26,871,881 26,395,843 24,243,025 - - - Highways and streets 2,693,869 3,044,652 3,258,426 - - - Waste, collection and disposal 2,834,652 2,621,986 2,562,226 - - - Culture and recreation 2,946,663 3,267,389 3,090,190 - - - Economic and community development 4,719,711 4,958,500 4,757,014 - - - Interest on long-term debt 475,278 668,563 615,223 - - - Utilities and other proprietary funds - - - 53,645,648 52,484,620 54,044,110 Total Expenses $ 50,967,183 $ 51,943,257 $ 49,139,356 $ 53,645,648 $ 52,484,620 $ 54,044,110 K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 15  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Required Communications  REQUIRED COMMUNICATIONS Auditor’s Responsibilities Under The financial statements are the responsibility of management. Our Generally Accepted Auditing audit was designed in accordance with auditing standards generally Standards (GAAS) accepted in the United States of America, and provide for reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. We were engaged to perform our audit in accordance with the standards of the accounting principles generally accepted in the United States of America. Significant Accounting Policies Management has the responsibility for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by management are described in the notes to the financial statements. Auditor’s Judgments About the We discuss our judgments about the quality, not just the acceptability, We have reviewed the significant Quality of Accounting of accounting principles selected by management, the consistency of accounting policies adopted by the Principles their application, and the clarity and completeness of the financial City and have determined that these statements, which include related disclosures. policies are acceptable accounting policies. Audit Adjustments We are required to inform the City’s oversight body about There were no recorded or adjustments arising from the audit (whether recorded or not) that unadjusted audit adjustments for could in our judgment either individually or in the aggregate have a the City’s audit. significant effect on the entity’s financial reporting process. We also are required to inform the City’s oversight body about unadjusted audit differences that were determined by management to be individually and in the aggregate, immaterial. K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 17  REQUIRED COMMUNICATIONS (CONTINUED) Fraud and Illegal Acts We are required to report to the City’s oversight body any Our procedures identified no fraud and illegal acts involving senior management and fraud instances of fraud or illegal and illegal acts (whether caused by senior management or other acts. employees) that cause a material misstatement of the financial statements. Material Weaknesses in We are required to communicate all significant deficiencies in We have not identified any Internal Control the City’s systems of internal controls, whether or not they are material weaknesses in internal also material weaknesses. controls. Other Information in None. Documents Containing Audited Financial Statements Disagreements with None. Management on Financial Accounting and Reporting Matters K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 18  REQUIRED COMMUNICATIONS (CONTINUED) Serious Difficulties Encountered in Performing the None. Audit Major Issues Discussed with Management Prior to None. Acceptance Management Representations We received certain written representations from management as part of the completion of the audit. Consultation with Other Accountants To our knowledge, there were no consultations with other accountants since our appointment as the City’s independent public accountants. Independence As part of our client acceptance process, we go through a process to ensure we are independent of the City. We are independent of the City. K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 19  REQUIRED COMMUNICATIONS (CONTINUED) Our Responsibility Related to Fraud • Comply and perform the audit to obtain reasonable assurance that there is no material misstatement caused by error or fraud; • Comply with GAAS AU-C 240 “Consideration of Fraud in a Financial Statement Audit”; • Approach all audits with an understanding that fraud could occur in any entity, at any time, by anyone; and • Perform mandatory procedures required by GAAS and our firm policies. Examples of Procedures Performed • Discuss thoughts and ideas in areas where the financial statements might be susceptible to material misstatement due to fraud; • Understand pressures on the financial statement results; • Understand the tone and culture of the organization; • Look for unusual or unexpected transactions, relationships, or procedures; • Discussions with individuals outside of finance; • Evaluate key processes and controls; and • Consider information gathered throughout the audit. K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 20  RESPONSIBILITY FOR MITIGATING FRAUD Management:  CFO/Controller: controls to deter and detect fraud Financial Misconduct by Fraudulent  General Counsel/Compliance: Member(s) of Financial Sr. Management Reporting monitoring of the Board Costs & External Auditor: Expenses Misappropriation Avoided by of Assets  Evaluate management programs and Fraud controls to deter and detect fraud for Revenue & Expenditures & Audit Committee: Liabilities identified risks Assets Obtained by for an Improper  Evaluate management Purpose Fraud  Reasonable assurance that financial identification of fraud risk statements are free of material  Evaluate implementation of fraud misstatement due to fraudulent financial controls reporting or misappropriation of assets  Reinforce “tone at the top”  Compliance with fraud standard (SAS 99)  Conduct special investigations ⎯ Conversations with finance and operations personnel ⎯ Disaggregated analytics ⎯ Surprise audit procedures ⎯ Journal entry testing K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 21  REQUIRED COMMUNICATIONS – FRAUD • Generally provided through weaknesses in internal control Opportunity • Tone at the top is important • We assess controls and tone at the top • Pressure can be imposed due to economic troubles, personal vices and Pressure unrealistic deadlines and performance goals • There are increased pressures due to economy and minimal salary increases • Individuals develop a justification for their fraudulent activities Rationalization • Increased rationalization due to minimal salary increases and less personnel K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 22  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Meeting Your Expectations  SBC’S SERVICE PLEDGE TO YOU We will consistently deliver a Quality Product and Quality Service so that we have the opportunity to establish a Quality Relationship with you, allowing us to provide you with Quality Knowledge for your continual success. Only after we have provided you with the knowledge that enables your business to grow and prosper, we have hit the bullseye! Our commitment to you is the execution of our Bullseye Philosophy. We execute this philosophy for every client, on every engagement, every time. K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 24  ENGAGEMENT TEAM CONTACT INFORMATION Chris Lehman Engagement Partner Office: (410) 584-2201 Mobile: (301) 785-7408 clehman@sbandcompany.com Executive Assistant: Tina Riley Office: (410) 584-9304 Email: triley@sbandcompany.com K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e 25  K n o w l e d g e ∙ Q u a l i t y ∙ C l i e n t S e r v i c e Baltimore Office: Washington, DC Office: Philadelphia Office: Richmond Office: South Florida Office: 10200 Grand Central Avenue 1200 G Street, NW 1500 Market Street 6802 Paragon Place 4000 Hollywood Suite 250 Suite 821 12th Floor, East Tower Suite 410 Suite 555-S Owings Mills, MD 21117 Washington, DC 20005 Philadelphia, PA 19102 Richmond, VA 23230 Hollywood, FL 33021 410.584.0060 202.434.8684 215.665.5749 804.441.6000 954.843.3477  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Preliminary Agenda Review Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description December_21__2021_Preliminary_Agenda.pdf Preliminary Agenda  MAYOR AND COUNCIL REGULAR SESSION (29TH VOTING SESSION) DECEMBER 21, 2021 AGENDA “The City of Hagerstown will inspire an inclusive, business-friendly, and sustainable community with clean, safe and vibrant neighborhoods.” “The City of Hagerstown shall be a community focused municipality.” Preliminary Agenda ************************************************************************************** The agenda and meeting packet is available at www.hagerstownmd.org/government/agenda ********************************************************************************************** 7:00 p.m. REGULAR SESSION – Council Chamber, 2nd floor, City Hall I. CALL TO ORDER - Mayor Emily Keller II. INVOCATION III. PLEDGE TO THE FLAG IV. ANNOUNCEMENTS A. Rules of Procedure – Effective December 15, 2020 B. Use of cell phones during meetings is restricted. C. All correspondence for distribution to Elected Officials should be provided to the City Clerk and should include a copy for the City Clerk for inclusion in the official record. D. Meeting Schedule: 1. Tuesday, January 4, 2022 – No Meeting Scheduled 2. Tuesday, January 11, 2022 – Work Session at 4:00 p.m. 3. Tuesday, January 18, 2022 – Work Session at 4:00 p.m. 4. Tuesday, January 25, 2022 – Regular Session at 7:00 p.m. V. CITIZEN COMMENTS Citizens are welcome to provide comments in person or by sending an email to councilcomments@hagerstownmd.org no later than 5:00 p.m. on Tuesday, December 21, 2021. Include your full name, home street address, and topic of your comments. You may attach a letter to the email, or write your comments in the body of the message. The City Clerk will read your name, address, and provide a summary of the comments. The full copy of the comments will be provided for public viewing as part of the minutes. VI. CONSENT AGENDA A. Engineering 1. Design of Phase I of Improvements to Wheaton Park – Mahan Rykiel Associates, Inc. (Triad Engineering is sub for Mahan Rykiel) (Baltimore, MD) $36,200.00 2. Restoration of Fairgrounds Entrance Building and Gatekeepers House and Contingency for Change Orders – Popowski Brothers, Inc. (Hunt Valley, MD) $160,000.00 Regular Session (29th Voting Session) Agenda December 21, 2021 Mayor & City Council Page 2 B. Public Works: 1. 2022 F-150 4x4 SuperCab Pickup 6 Foot Box – Keystone Ford (Chambersburg, PA) $33,457.00 2. 2022 F-150 4x4 SuperCab Pickup 8 Foot Box – Keystone Ford (Chambersburg, PA) $33,958.00 3. Roof Replacement at 60 West Washington Street – Ruff Roofing and Sheet Metal, Inc. (Baltimore, MD) $191.679.00 C. Technology & Support Services: 1. Barracuda Backup Server and Cloud Storage - Three Year Agreement – System Source (Hunt Valley, MD) $90,000.00 2. ESO Fire RMS-Incident Management Software Renewal (Year 2 of 3) – ESO Solutions, Inc. (Dallas, TX) $24,705.60 D. Utilities: 1. Wastewater Division: MSA LEL Gas Detection Transmitter and Sensor Assembly with Start Up Services – Sherwood Logan and Associates (Annapolis, MD) $15,546.00 2. Wastewater Division: FY22 Pass Thru Costs for the Pelletizer Facility – Synagro (Baltimore, MD) $60,000.00 3. Wastewater Division: Engineering Services to Evaluate the Solids Processing Operation – Black & Veatch Corporation (Gaithersburg, MD) $219,440.00 4. Water Division: Annual Software Support and Services at the Willson Plant for SCADA – ABB, Inc. (Warminster, PA) $70,688.00 VII. UNFINISHED BUSINESS A. Approval of an Ordinance: Amending the City Code, Chapter 64, Article IV – Modification of Electrical Registration and Fee Structure B. Approval of Application for FY2023 Program Open Space VIII. NEW BUSINESS A. Amendment to FY22 CDBG Annual Action Plan – Creation of New Activity for Wheaton Park Enhancements B. Amendment Two to the MOU for the Potomac Street at Howard Street Signal Improvements Safe Routes To School Infrastructure Project C. Amendment One to the MOU the for Marsh Run Multi-Use Trail Project D. Approval of an Engagement Agreement between Kane, Wilburn & Stone, P.A. and the City of Hagerstown to Assist Salvatore & Morton in Pending Litigation E. Approval of a Resolution: Assignment and Assumption of Lease between GB&J’s, LLC and HMS Hagerstown, LLC F. Approval of a Resolution: Assignment and Assumption of Purchase Agreement between GB&J’s, LLC and HMS Hagerstown, LLC G. Approval of a Resolution: License Agreement for Public Art on West Lee Street H. Approval of a Resolution: Grant Agreement for Consultant Fees and Designing a Plan for a Visitors’ Center for the Jonathan Hager House Museum at City Park between the City of Hagerstown and Maryland Heritage Areas Authority ** Please note all times are approximate and subject2 to change. Meetings are televised and recorded. ** City Hall • Council Chamber • 1 East Franklin Street • Hagerstown, MD 21740 301.739.8577, Ext. 113 • Telephone for the Hearing Impaired 301.797.6617 Regular Session (29th Voting Session) Agenda December 21, 2021 Mayor & City Council Page 3 IX. CITY ADMINISTRATOR COMMENTS X. MAYOR & COUNCIL COMMENTS XI. ADJOURN ✓ Items that have been discussed and reviewed previously or are of a routine nature and, therefore, additional information may not be attached to this agenda. ** Please note all times are approximate and subject3 to change. Meetings are televised and recorded. ** City Hall • Council Chamber • 1 East Franklin Street • Hagerstown, MD 21740 301.739.8577, Ext. 113 • Telephone for the Hearing Impaired 301.797.6617  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Red Light and Speed Cameras Update ~ Paul Kifer, Chief of Police Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Red_Light_and_Speed_Cameras_Update_12.14.21pdf.pdf Red Light and Speed Cameras Update  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Code Amendments – Section 238 and 240 ~ Nancy Hausrath, Director of Utilities Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description To_MCC_-_Memo_Code_Amendments_- Code Amendments - _Rates_and_System_Allocation_12082021.docx Section 238 and 240  CITY OF HAGERSTOWN DEPARTMENT OF UTILITIES 425 East Baltimore Street 51 West Memorial Blvd Hagerstown, MD 21740-6105 Hagerstown, MD 21740-6848 December 8, 2021 To: Scott Nicewarner, City Administrator From: Nancy Hausrath, Director of Utilities Subject: Code Amendments – Section 238 and 240 Action: Discussion ___________________________________________ Over the past six to twelve months, staff has been evaluating the existing capacity at the Hagerstown Wastewater Treatment Plant and the RC Willson and Breichner Water Production Plants. Staff has also reviewed customer usage inside and outside municipal limits. As you are aware, there have been numerous requests for service in the MRGA and a couple requests in the County UGA. Staff along with legal counsel continues to work with Washington County on the Consolidated General Service Agreement and the Flow Transfer Agreement. These agreements will transfer County flow in the Maugansville area back to the County and flow from the Hagers Crossing/Western Maryland Parkway area back to the City. Both the Water and Wastewater Plants are at or exceed 85% capacity and as such, staff is working on amendments to Sections 238 and 240 to restrict allocation, to reduced assigned allocation, and to establish a process and fees to manage system capacity. Staff has initiated a dialog with NewGen to review our rate structure to include usage, fixed, benefit fee, fire-line, etc. to determine the best way to address future funding needs. Staff will present approaches that will be considered and/or evaluated during the December 12th meeting and provide system data and draft Code Amendments. Staff is asking the Mayor and City Council to share their concerns and ideas for capacity management and rates/funding to meet future needs.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Review of Ideas and Options for a Proposed New Farmer’s Market ~ Jill Thompson, Director of Community & Economic Development and Cathleen Miller, Part-Time Farmers Market Coordinator Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Review of Ideas and Options for Review_of_Ideas_and_Options_for_a_Proposed_New_Farmers_Market.12.14.21.pdf a Proposed New Farmers Market  CITY OF HAGERSTOWN, MARYLAND Department of Community and Economic Development TO: Scott Nicewarner, City Administrator FROM: Jill Thompson, Director of Community & Economic Development Cathleen Miller, Farmer’s Market Coordinator DATE: December 8, 2021 RE: Review of Ideas and Options for a proposed New Farmer’s Market At the December 14, 2021 Work Session, staff will review ideas and options for a proposed new Farmer’s Market, and will seek an initial discussion and direction from the Mayor and City Council. The current property at 25 W. Church Street is under contract for sale, and the City is exploring options for the creation of a new Farmer’s Market. Staff seek Mayor and City Council discussion of the options and direction so that a preferred option or preferred options could be more fully explored. Staff have outlined the following options to review with the Mayor and City Council. Seasonal Outdoor Farmers Market – Saturdays – May – September/October (5-6 months) Location Options: Option 1 – University Plaza – Downtown Option 2 – Cultural Trail – Downtown Option 3 – Former Stables in Fairgrounds Park Format City provides space and market coordination/promotion Vendors provide their needed equipment, tables, tents (if desired) Other Points of Consideration and Discussion Vendor Fee or No Vender Fee Day of the week proposed to be Saturdays Hours proposed to be 8 am – 1 pm or possible other alternative Annual Application/Selection Process ______________________________________________________________________________ 14 N. Potomac Street, Suite 200A Hagerstown, MD 21740 The Former Stables at Fairgrounds Park – Additional Information The former stables in Fairgrounds Park are scheduled for a roof replacement in Spring 2022 as shown in the following site map. Site Map: Orange line above represents Phase I area of roof replacement (425’+/-) Additional Idea - Pop-Up Indoor Market Events at Spring/Easter Season and the Holiday Season In addition to the Options above, staff have outlined the idea of Pop-Up Market Events in select seasons. Saturday, April 2022 (Easter/Spring pop-up) Saturdays, December 3, 10 & 17, 2022 (Holiday pop-up) Locations – To Be Further Explored Preference to location with proximity to Downtown for economic impact Staff will review preliminary discussion to date with property owners for possible pop-up, indoor market events. Beyond 2022 – Longer Term Options Additionally, for more long-term planning, attached are photo examples of permanent pavilion structures, some with permanent tables, that could be explored. If desired, any such project, would require lead time beyond 2022 for planning, budgeting/financing and construction. Construction costs may be estimated at $100/sf - $120/sf. An average size pavilion structure may be approximately 7500 sf. Examples of Farmer’s Market Permanent Pavilion Structures Harrisonburg VA Other City Examples Roanoke, VA – Canopy Stalls c: Rodney Tissue Eric Deike Chris Siemerling Doug Reaser Michelle Hepburn