HomeMy WebLinkAbout190403 - Minutes, Tri-County Council
Council Membership Meeting
April 3, 2019
Officer Name Representing MEETING ATTENDANCE
June ‘18 Nov ‘18 Apr ‘19
Chairman Commissioner Jake Shade Allegany County E E P
Commissioner Creade Brodie Allegany County A
David Nedved Allegany County E P P
Eugene Frazier Allegany County Municipalities P P P
vacant Allegany County Municipalities
Robert Smith Allegany County At-Large E P P
Stephen Nelson Allegany County At-Large E P E
Vice-Chair Commissioner Jim Hinebaugh Garrett County P P P
Commissioner Larry Tichnell Garrett County P P E
Michael Hough Garrett County P P P
Jay Moyer Garrett County Municipalities P E A
Spencer Schlosnagle Garrett County Municipalities P E P
Jonathan Kessler Garrett County At-Large A E A
Merlin Beitzel Garrett County At-Large P E P
Secretary/Treasurer Commissioner Jeff Cline Washington County A P P
Commissioner Wayne Keefer Washington County P
Susan Small Washington County A
Howard Long Washington County Municipalities P E P
Donnie Stotelmyer Washington County Municipalities P E P
Roger Fairbourn Washington County At-Large P P E
Jack Miller Washington County At-Large P P E
Senator George Edwards Maryland State Senate District 1 P P E
Senator Andrew Serafini Maryland State Senate District 2 E P E
Delegate Wendell Beitzel Maryland House of Delegates District 1A P P E
Delegate Jason Buckel Maryland House of Delegates District 1B E E E
Delegate Neil Parrott Maryland House of Delegates District 2B E E E
Tri-County Council Staff: Leanne Mazer, Guy Winterberg, Darlene Steyer, Christie Wakefield, Amy Jacobs
Guests: Julianna Albowicz, US Senator Van Hollen; Bill Atkinson, ARC/MDP; Al Delia, Frostburg State University; Jayci Duncan,
Attorney at Law; Paul Edwards, Garrett County Commissioner; Dr. Jim Klauber, Hagerstown Community College; Kevin Null, Garrett
County Administrator; Wendi Peters, Special Secretary of Smart Growth; Ralph Salvagno, Mayor, Town of Hancock; Tracy Salvagno, Tri-
State Community Health; Cindy Sharon, Garrett County Economic Development; Jen Smith, guest; Robin Summerfield, US Senator Ben
Cardin; Mark Widmyer, Western Maryland Rep for Governor Hogan, Linda Widmyer, guest; Tyler Patton, Maryland Broadband
Cooperative; Dr. Cynthia Bambara, Allegany College of Maryland and Linda Spence, Washington County Economic Development.
I. Call to Order – Chairman Shade called the meeting to order at 5:06pm at Ristorante
Ottaviani in Cumberland, Maryland.
II. Pledge of Allegiance – Chairman Shade led the Pledge of Allegiance.
III. Welcome & Introduction of Guests – Chairman Shade welcomed everyone to
the meeting and recognized Maryland Special Secretary of Smart Growth,
Wendi Peters and the elected officials in attendance. A quorum of voting
members was present.
IV. Approval of Agenda – Chairman Shade presented the agenda.
David Nedved moved to approve the agenda as presented, Spencer Schlosnagle
seconded the motion and the motion carried.
V. Minutes of November 19, 2018 – Chairman Shade presented the minutes of the
November 19, 2018 meeting.
Howard Long moved to approve, Bob Smith seconded the motion and the
motion carried.
VI. Financial Report – Darlene Steyer/Leanne Mazer
A. 2018 Year-End Financial Statements – Darlene Steyer presented the
consolidated statement of revenue and expenditures for calendar year 2018. She
reported that the 2018 expense to budget was underspent by $42,318 with an
excess revenue over expense of $198,574 which is made up of a combination of
unrestricted funds and net VLT Funds. The ARC and EDA programs were 100%
spent. Some programs that appear to be overspent such as Technical Assistance,
are programs that are actually on a Fiscal Year budget and are being spent
accordingly.
Donnie Stotelmyer moved to approve the 2018 year-end financial statements,
David Nedved seconded the motion and the motion carried.
B: Financial Statements through February 28, 2019 – Darlene Steyer presented the
current financial statements. Currently the budget is 15.08% spent which is on
track for where the spending should be this time of year. If spending were even
for each month across the year then the budget would be 16.67% spent however
Mrs. Steyer explained that for many of the Fiscal Year programs, spending is
not consistent monthly and generally anticipated to be higher near the end of the
grant period. Year to date we currently have excess revenue over expense of
$14,980.
Donnie Stotelmyer moved to approve the financial statements, Bob Smith seconded
the motion and the motion carried.
VII. Liaison/Committee and Staff Reports
A. Director’s Report – Leanne Mazer offered the following reports:
Legislative Report
President Trump’s FY 2020 Budget Request was released on March 11, 2019 and
largely includes across the board cuts to non- defense discretionary spending. The
amount of funds in the budget for ARC is the largest request ever from a president
and continues to fund the POWER program. The budget also proposes the
elimination of the US Department of Commerce EDA program as well as the
CDBG program under HUD. It is noteworthy that both of these programs were
eliminated in the President’s FY18 and FY19 budgets but were restored by
Congress.
Ms. Mazer thanked Senator Edwards and Delegate Buckel for introducing bills to
restore the 1.5% of proceeds from the Video Lottery Terminals across the State of
Maryland to the Video Lottery Terminal Account for the Small, Minority, and
Women-Owned Business Program. In fiscal years 2018, 2019 and 2020 those
dollars were re-directed to the Education Trust Fund.
On February 13, 2019 the Senate Budge and Taxation Committee held a hearing on
SB 277. TCC submitted written testimony along with that from 9 of our client
businesses that have used the program.
On February 27, 2019 the House Ways and Means Committee held a hearing on
HB 688. TCC again submitted written testimony along with that from 10 of our
client businesses. Additionally, Jon Felton from Clatter Coffee also attended the
hearing and provided testimony along with 8 other business owners from across the
state that have benefitted from the VLT program.
Ms. Mazer noted that referrals from existing loan clients have helped to bring new
businesses to the program. It was also mentioned that marketing of this program
has been limited as there are no new funding allocations coming into the program
with the exception of loan repayments.
Operating Report
All calendar year final reports for 2018 were completed in a timely and accurate
manner with due dates of January 31, 2019.
The 2019 ARC planning grant was executed on February 19, 2019 for $155,500
utilizing $7,500 in recovered funds. The current balance in the recovered funds
account is just over $40,000. The 2019 EDA planning grant was executed on March 25, 2019 for $70,000. This
is the first year of a 3 year grant period beginning January 1, 2019 and extending
through December 31, 2021. The Department of Commerce FY19 grant in place for $200,000, reporting and
funding requests are current.
The MTA FY19 grant is in place for $26,000, reporting and funding requests are
current.
The RMC-RMPIF – The FY 2019 grant is in place with a grant period of August 1,
2018 through June 30, 2019 for $411,133. The Council budgeted $153,000 from
that grant for Revolving Loan Fund capital. Additionally, the Council is using this
grant to aid in the formation of a Certified Development Company which will
enable the Council to provide SBA 504 loans locally.
B. Revolving Loan Fund and Video Lottery Terminal Fund – Christie Wakefield
reported on RLF and VLT loan fund activity for calendar year 2019. To date, the
fund had 19 loan inquires resulting in 1 application. Currently there are 9 clients in
various stages of working with the Council, many of which will make application
in the future totaling over $1.6 million.
C. Maryland Transit Administration – Leanne Mazer gave a brief overview of the
Council’s role as the Regional Coordinating Body for MTA. This includes
promoting programs and scoring projects from the applicants. During FY 19
and FY 20 the Council endorsed 11 applications for over $2 million in Federal
Assistance. Awards for these grants will be announced in late April or early
May 2019.
D. ARC Project Package Update – Amy Jacobs gave a brief overview of the
current process for the FY 20 Project Package. Request for projects were sent
by the Counties in February with project requests due in early April. The
Council expects to receive a list of ranked projects from each County by mid-
May. A completed project package will be presented to the Board for
consideration at the June 19, 2019 Council meeting.
Approved projects will be invited to make a full application to ARC in late
August. Applications should be submitted by mid-November at the latest.
E. ARC Program Manager Update – Bill Atkinson reported the President’s FY
2020 budget requests $165 million for ARC which is level funding and also
represents the largest request for ARC’s non-highway budget in history. The
budget supports $73 million for the base programs, $50 million for a
competitive POWER program, $32 million for assistance targeted to distressed
communities, and $10 million focusing on workforce reentry for individuals
suffering from substance abuse.
Bill also reported that for FY 2019, sixteen projects have been invited to apply
for funding. Of those projects 11 have been approved by ARC, 1 project has
been submitted and is awaiting approval, 2 have been withdrawn by the
applicant, 1 has not yet submitted an application and 1 was denied.
Bill noted that ARC federal Co-Chair has set the priorities for funding as those
projects that create jobs and focus on workforce development including that of
transitioning substance abusers back to the workforce. Additional priorities
include health care and high school programs that can demonstrate immediate
impacts.
Special Secretary of Smart Growth Wendi Peters gave a brief presentation on
the new Appalachian Leadership Institute. This is an extensive nine month
program for economic development training for community leaders that live
and work in Appalachia.
F. Maryland Department of Commerce – There was no report given by the Department
of Commerce.
G. Small Business Development Center – There was no report given by the Small
Business Development Center.
VIII. Unfinished Business – There was no unfinished business.
IX. New Business – Chairman Shade introduced new attendees: Commissioner Wayne
Keefer, Linda Spence and Tracey Salvagno.
A. 2018 Year in Review
The Council provided marketing data for websites, social media, newsletters and
email subscribers. For 2018 there were over 8,000 web page views.
An overview of the Revolving Loan Fund was given noting that only one loan
was made from this fund in 2018 totaling $94,000. Several other loans were
approved but died prior to settlement. Currently the fund has 16 clients with
loans totaling $3.6 million. Since inception this fund has resulted in 2,290 jobs
being created and 2,168 jobs being retained.
An overview of the State Lottery Terminal Fund (SLoT) was given showing that
over 60 inquiries were made which resulted in 6 applications. All six loans were
approved and disbursed for a total of $1.52 million. Currently this fund has 20
loans totaling $3.86 million. Since inception this fund has resulted in 103 jobs
created and 134 jobs retained.
The Council also offers a technical assistance program for existing or new loan
clients. This program was designed to ensure the success of businesses,
particularly those just starting. The Council received 19 inquiries with a total of 8
engagements. Seven of those engagements are currently in progress for a total of
over $31,000. Web design and branding are the most common use for this
program.
A presentation was also given on the FY 19 Project Package. ARC funded 11
Area Development projects and 4 access road projects totaling over $4.5 million.
Projects from each county were highlighted.
The annual update to the Comprehensive Economic Development Strategy
(CEDS) was presented. The Strategic Goals and Objectives remained the same as
defined in 2018. Additional opportunities were included such as Autonomous
Technology. The declining coal industry was included as an additional threat to
the economy. Projects were also updated to include those submitted for
consideration in 2019.
A brief overview of the I-68 Regional Economic Partnership study was also
given. The study consisted of providing a regional asset map, labor shed analysis
and targeted industry study. The consultant also provided recommendations both
regionally and county specific.
The results were given for the FY 2018 MTA special solicitation. The Council
endorsed 7 applications which received almost $700,000 in funding for vehicles,
operations, maintenance, and mobility management.
Tyler Patton from the Maryland Broadband Cooperative gave an update on the
2018 Western Maryland Fiber Project. The project will connect 8 business parks,
bring services to at least 3 previously unconnected laterals and offer services on a
Cumberland fiber footprint. Additionally, the project will offer redundancy in
Garrett County and parts of Western Allegany County which is something that is
almost as important to business owners as having fiber to begin with. The
majority of the work is complete. Fiber splicing will be the last portion of the
project and should be completed by the end of May.
B. Announcements from the floor – Julianna Albowicz announced that she will be
retiring on May 7, 2019.
X. Adjourn – Commissioner Hinebaugh moved that the meeting be adjourned. The meeting
was adjourned at 7:12 pm.