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Home My WebLink About180530a Individuals requiring special accommodations are requested to contact the Office of the County Commissioners, 240.313.2200 Voice/TDD, to make arrangements. BOARD OF COUNTY COMMISSIONERS May 30, 2018 Agenda 02:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CALL TO ORDER, President Terry L. Baker Location: 100 West Washington Street, Suite 1113, Hagerstown 02:05 P.M. EMERGENCY RELATED CONTRACTS IN SOUTH COUNTY – Scott Hobbs, Director of Engineering 02:15 P.M. FY2019 SOLID WASTE BUDGET DISCUSSION – Dave Mason, Deputy Director of Solid Waste and Watershed Programs and Sara Greaves, Chief Financial Officer 02:45 P.M. FY2019 OPERATING AND CAPITAL BUDGET ADOPTION – Sara Greaves, Chief Financial Officer and Kim Edlund, Director of Budget and Finance 03:15 P.M. ADJOURNMENT President Jeffrey A. Cline, Vice President John F. Barr Wayne K. Keefer LeRoy E. Myers, Jr. WWW.WASHCO-MD.NET Open Session Item SUBJECT: Emergency Related Contracts in South County PRESENTATION DATE: May 30, 2018 PRESENTATION BY: Scott Hobbs, P.E., Director, Division of Engineering RECOMMENDED MOTION: Move to proceed with emergency related contracts to dewater and repair the culvert at Chestnut Grove Road to expedite the opening of the road. Other work on South County roads may be included as the assessment of the area continues. REPORT-IN-BRIEF: The work will include utilizing current on-call state contracts and preparing condensed bids. DISCUSSION: Earlier this month South County experienced significant flooding and damage to numerous roads and structures. Some roads have remained closed due to damage, including the 2500 Block of Chestnut Grove Road (north of Mt. Lock Hill Road). FISCAL IMPACT: The cost of this work will be determined. CONCURRENCES: N/A ALTERNATIVES: N/A ATTACHMENTS: AERIAL MAP AUDIO/VISUAL TO BE USED: N/A Board of County Commissioners of Washington County, Maryland Agenda Report Form South County Closed Roads Status & Plan of Action Last Updated: May 24, 2018 4:00 PM Virginia WASHINGTONCOUNTY FREDERICKCOUNTY WestVirginia Flood Effected Areas Below LimekilnRd ChesnutGroveRd Townsend Rd HarpersFerryRd PleasantvilleRd HoffmasterRd SandyHookRd SandyhookRd Keep Tryst Rd MillerAve ValleyRoad US340 SevenDaysLn WevertonRd GarrettsMillRd HarrisHollowLn FrogEyeRd BrownRd Morgan Pine Rd Harpers Ferry Rd Back Rd HarpersFerryRd BackRd HarpersFerryRd DarganRd DarganSchoolRd MazeLn JohnBrownLn YarrowsburgRd BrownsvilleRd RohrersvilleRd(MD67) McCoyRd Mt LockCanal MtLockHill ChesnutGroveRd HawksHillLn HarpersFerryRd KaetzelRd RohrersvilleRd(MD67) Multiple options under consideration. Estimated road closure 12+ months.1.)Back Road- Contractor to constr uct retaining walls in portions of affected road. Estimated road closure less than 1 month.Har pers Fer ry Road-4.) 1 2 3 4 5 6 0 0.25 0.5 0.75 1Miles Legend - Road Closed Lower section of road will be passable; however, County is pursuing a design-build stabilization project to permanently repair the damag ed edges of road and drainage str uctures which will require the road to be closed. County is preparing a concept plan and design parameters prior to project adver tisement for engineer-contractor teams to finish design and complete work. Estimated road closure 6 months. Hoffmaster Road-5.) Contract work in two phases. Initial phase is to dewater and unclog the existing culvert. Second phase is an accelerated construction adver tisement process to re place the pipe and rebuild the road and embankments. Estimated road closure 3-6 months.Chesnut Grove Road-2.) Pursuing a design-build bridge replacement project. Initial work includes collecting geotechnical information and preparing a concept plan, then project adver tisement for engineer-contractor teams to finish the design and build the new bridge. Estimated road closure 12+ months.3.) Gar retts Mill Road- National Park Ser vice (NPS) is addressing the landslide in two phases. Initial phase is repairing overhead utilities, removal of material and debris which may allow reopening of the road on a provisional basis. Second phase is the slope stabilization of the exposed embankment. National Park Ser vice is responsible for remediating the situation. Timeframes for road closures are therefore less certain; however, a 6+ month closure is possible. County is coordinating with NPS to accelerate the work and reduce the closing duration. 6.)Sandy Hook Road- Open Session Item SUBJECT: FY2019 Solid Waste Budget Discussion PRESENTATION DATE: May 30, 2018 PRESENTATION BY: Sara Greaves, Chief Financial Officer, Dave Mason, Deputy Director of Solid Waste RECOMMENDED MOTION: Move to adopt any combination of proposed landfill fees and/or adjustments to the budget as presented. REPORT-IN-BRIEF: On April 24, 2018 the Commissioners held a public hearing and heard public testimony, if any, on the proposed establishment and modification of certain landfill user fees for FY 2019. On May 22, 2018, the proposed fees as presented were voted on and were not approved. Staff has brought several options for discussion to provide a solution that the majority is comfortable with. DISCUSSION: An enterprise fund such as Solid Waste operates much like a private-sector business. It is primarily self-supported through user fees which cover the cost of service provided. Solid Waste tipping and permit fees have not increased since 2012. Staff has prepared some background information and several options for the Board of County Commissioners to consider. The discussion will include a history of fee increases, budgets and components thereof, fund balance, and cash reserves. Any fee increases presented for consideration are one facet of the overall budget proposal to help address the projected FY 2019 Solid Waste Department Operational Budget shortfall. The proposed rates reflect the current and projected cost of landfill and recycling operations, and are also in line with landfill user rates at other facilities in our local region. FISCAL IMPACT: The proposed Solid Waste budget for FY2019 is $8,121,710 CONCURRENCES: Not applicable ALTERNATIVES: Not applicable ATTACHMENTS: Solid Waste History and Budget document AUDIO/VISUAL NEEDS: Not applicable Board of County Commissioners of Washington County, Maryland Agenda Report Form Gen Fund Increase – $488,070 Solid Waste Budget Discussion – Wednesday May 30, 2018 Background Enterprise funds such as the Solid Waste fund operate much like a private-sector business. By design, it is important to understand the extent to which fees and charges are sufficient to cover the cost of providing goods or services. The Solid Waste fund is Self-Supported by and large, except for an annual transfer from the General Fund to cover the costs associated with closed landfill sites. Fee History 0 200000 400000 600000 800000 1000000 1200000 1400000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 History of Contributions to Solid Waste SW Fund Balance General Fund CIP Operating Transfer When fees do not cover expenditures, where does the money come from to balance the budget? - General Fund – Taxpayer dollars o FY2019 General Fund Transfer increased by $488,070 - Solid Waste operating cash reserves o FY2019 operating reserves increased by $175,690 - Solid Waste capital reserves Closure/Post Closure and Debt Service History GASB 18 requires a reserve to be set aside for Closure/Post Closure care costs. The County is required to put a final cover on closed landfill sites and to perform certain maintenance and monitoring functions at the site for up to 30 years after closure. - Sites that are closed are still quite dynamic - No Closure/Post Closure budgeted in years 2015-2018 - Debt service increases in 2018 and 2019 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Closure/Post Closure and DS History Total Budget Closure/Post Closure Debt Service Fund Balance compared to Cash Reserve Balance Fund Balance – ‘Assets – Liabilities = Fund Balance’ - What are examples of Assets and Liabilities? o Assets can be equipment, roads, landfills, and buildings. Liabilities include debt and landfill closure costs. Cash Reserves – Cash available to use. Policy states we must maintain 25% of Operating and Maintenance expense as reserve. - Annual operating and maintenance expense = $3,868,740 X .25 = $967,185 - Reserve levels fell below requirement in 2016 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Solid Waste Fund Balance and Cash reserve Fund Balance Cash Balance Debt Service FY2019 debt service increased by $562,370 FY2020 – FY2023 – Reductions to occur in FY 2020 and 2021, followed by increases in 2022 and 2023. FY2019 Ten Year Capital Plan has additional Solid Waste Projects funded through bonds totaling 11.7 million Cash Flow Projection - FY2020-21 Cash flow projections assume lower debt levels, normal GF contribution and an increase in fees. 1 1.5 2 2.5 3 3.5 2019 2020 2021 2022 2023 Mi l l i o n s Upcoming debt service -$3.0 -$1.0 $1.0 $3.0 $5.0 $7.0 $9.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cash Flow Projection Option 1 – $250K assumed plus reduced fee increases 421000 Permit Fees TOTAL PERMIT REVENUE = 890,400.00$ 421035 Tip Fees - 40 West FY17 Tip Fee Revenue =5,362,580.00$ 5,537,080.00$ 205,500.00$ Total Revenues = 6,283,980.00$ Loan Repayment Total Budget Increase 455,500.00$ Option 2 – $250K assumed plus adjustments to tip fees Tipping Fee Increases - $186,660 Loan repayment - $250,000 421035 Tip Fees - 40 West FY17 Tip Fee Revenue =5,362,580.00$ 5,553,080.00$ 190,500.00$ Total Revenues = 6,252,980.00$ Loan Repayment Total Budget Increase 440,500.00$ Option 3 - $250K assumed plus adjustments to Permit fees and minimum charge Permit Fee increases - $65,300 Minimum Increase of $15 instead of $10 - $130,000 Loan repayment - $ 250,000 Total $445,300 421000 Permit Fees TOTAL PERMIT REVENUE = 890,400.00$ Option 4 – Reduce several proposed Fee increases and postpone new FTE Permit Current Permit Cost Proposed Permit Cost # of Permits Total Regular 130.00$ 130.00$ 3200 416,000$ Senior 95.00$ 95.00$ 3600 342,000$ Disabled Veterans 95.00$ 95.00$ 70 6,650$ 2nd Permit, Same Residence 65.00$ 65.00$ 40 2,600$ Regular, Half Price 65.00$ 65.00$ 120 7,800$ Senior, Half Price 47.50$ 47.50$ 50 2,375$ Veterans, Half Price 47.50$ 47.50$ 10 475$ Yard Waste Permit - Add-on 15.00$ 20.00$ 2700 54,000$ Yard Waste Permit - Individual 15.00$ 50.00$ 700 35,000$ Recycling Permits 36.00$ 36.00$ 2000 72,000$ Tipping Fee Current Tipping Fee Proposed Tipping Fee Refuse 52.00$ 55.00$ Refuse Large Haulers 45.00$ 45.00$ White Goods 52.00$ 52.00$ MD Paper Sludge 52.00$ 52.00$ Industrial Waste 52.00$ 52.00$ E-Waste 52.00$ 52.00$ Yard Waste 63.00$ 63.00$ Dirt 75.00$ 20.00$ Recycling Permit Only 52.00$ Mattresses 52.00$ 10.00$ Carcasses 52.00$ 200.00$ Rubble 75.00$ 75.00$ Wood 75.00$ 75.00$ Building Debris 75.00$ 75.00$ Sludge, Industrial 60.00$ 60.00$ Sludge, Domestic 60.00$ 60.00$ High Volume/Low Weight 120.00$ 120.00$ Tires, Small 162.00$ 250.00$ Tires, Individual (per/Each)3.00$ 5.00$ Tires, Large 250.00$ 350.00$ Freon Appliances (units)5.00$ 5.00$ Mulch 30.00$ 30.00$ Compost 20.00$ 20.00$ Minimum Scale Fee 10.00$ 15.00$ Mattresses currently charged at $52/ton, proposed $10 each Carcasses are per ton, minimum fee applies (was $10, proposed $15) **Competetive bids - lowest awarded November 14 for $200/ton, cost as of January 1, 2017 was $100/ton, cost as of January 1, 2016 was $55/ton Option 5 – Cuts to services, staff, and staff hours • With this option – Union approval required Eliminate Electronics Recycling 63,000.00$ Eliminate Scrap Tire Program 24,000.00$ Eliminate Styrofoam Recycling 2,000.00$ Add Cardboard Recycling to Permit Program (Now Free to Citizens)8,000.00$ Total Item 4 97,000.00$ 5 Eliminate Gas Testing for Resh and City/County Landfill 30,000.00$ 6 Close Dargan Transfer Station 35,000.00$ 7 Additional Operating Budget Cuts (reduce line items by amount shown) Maintenance Contract Services 4,000.00$ Supplies Materials - Operating 20,000.00$ Leachate Testing 4,000.00$ Travel Expenses 400.00$ Small Tolls and Equipment 1,750.00$ Building Maintenance 1,750.00$ Tires 5,000.00$ Total Item 7 36,900.00$ Total 439,973.00$ Open Session Item SUBJECT: FY2019 Operating and Capital Budget Adoption PRESENTATION DATE: May 30, 2018 PRESENTATION BY: Sara Greaves, Chief Financial Officer, Kim Edlund, Director of Budget & Finance RECOMMENDED MOTION: Move to adopt the FY2019 Operating and Capital Budgets. REPORT-IN-BRIEF: On May 15, 2018, the Commissioners held a public hearing and heard public testimony, if any, on the proposed FY2019 Operating and Capital budgets. DISCUSSION: The Fiscal Year 2019 Budget process has been a collaborative effort where the Office of Budget & Finance worked alongside departments, the administration, and the BOCC. We have brought forth a budget that was prepared in line with sound financial management and provides for both existing services and new initiatives. The Fiscal Year 2019 proposed budgets provide services to our citizens, maintain low debt levels, provide increased funding for education and public safety, and meets infrastructure needs. The 2019 proposed budget was balanced with no increase in the property tax and income tax rates. FISCAL IMPACT: The FY2019 operating and capital budgets, which include all funds amount to $328,752,270. The General Fund Budget is $229,639,310 and the Capital Improvement Budget is $43,958,000 for Fiscal Year 2019. CONCURRENCES: Not applicable ALTERNATIVES: Not applicable ATTACHMENTS: Not applicable AUDIO/VISUAL NEEDS: Not applicable Board of County Commissioners of Washington County, Maryland Agenda Report Form