HomeMy WebLinkAbout170509BOARD OF COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
Hagerstown, Maryland
May 9, 2017
INVOCATION AND PLEDGE OF ALLEGIANCE
Commissioner Barr offered the Invocation followed by the Pledge of Allegiance to the
Flag by the full assemblage.
CALL TO ORDER
President Terry L. Baker called the regular meeting of the Board of County
Commissioners of Washington County, Maryland, to order at 10:12 a.m. at 100 West
Washington Street, Room 1113, with the following members present: Vice President
Jeffrey A. Cline and Commissioners John F. Barr, Wayne K. Keefer and LeRoy E. Myers,
Jr.
APPROVAL OF MINUTES — MAY 2, 2017
Commissioner Barr, seconded by Keefer, moved to approve the minutes of May 2, 2017.
The motion passed unanimously.
CONVENE IN CLOSED SESSION
Commissioner Barr, seconded by Keefer, moved to convene in closed session at 10:12 a.m.
to discuss the appointment, employment, assignment, promotion, discipline, demotion,
compensation, removal, resignation, or performance evaluation of appointees, employees,
or officials over whom this public body has jurisdiction; any other personnel matter that
affects one or more specific individuals; and to consider a matter that concerns the
proposal for a business or industrial organization to locate, expand or remain in the state, in
accordance with Section 3-305(b) (1) and (4) of the General Provisions Article of the
Annotated Code of Maryland. The motion passed unanimously.
In closed session, the Commissioners discussed the potential appointment of a number
specific individuals to a local nominating commission over which the Commissioners have
appointment authority; and considered/discussed a proposal submitted by a business entity
desiring to locate, expand or remain in the County/State.
During closed session, the Commissioners agreed to further discuss the individuals being
considered for appointment to a local nominating commission later in today's open session
meeting; and provided direction to staff regarding a proposal by an entity desiring to
locate, expand, or remain in the County/State and further instructed staff to place the
proposal on a future open session meeting agenda at the appropriate time for further
discussion and a potential vote.
Present during closed session were Commissioners Terry L. Baker, Jeffrey A. Cline, John
F. Barr, Wayne K. Keefer and LeRoy Myers, Jr. Also present were Robert J. Slocum,
County Administrator; Sarah Sprecher, Assistant County Administrator; Vicki C. Lumm,
May 9, 2017
Page 2
County Clerk; John M. Martirano, County Attorney; and at various times Kassie Lewis,
Director, Business Development; and Jerry DeWolf
RECONVENE IN OPEN SESSION
Commissioner Cline, seconded by Barr, moved to reconvene in open session at 10:45 a.m.
The motion passed unanimously.
REPORTS FROM COUNTY STAFF
Budget and Finance
Chief Financial Officer Debra Murray stated that she would soon be reporting on the bond
rating bids being held at 11:00 a.m. this morning.
County Clerk - Appointments to Boards/Commissions
Agricultural Education Center
Commissioner Cline, seconded by Barr, moved to reappoint Susan Hull to serve a second,
three-year term through April 30, 2020; reappoint Dennis Reeder to serve a third, three-
year term through April 30, 2020; appoint David Moore to serve a first, three-year term
from August 1, 2017 through July 31, 2020, and appoint Jay Miller to fulfill an unexpired
term through April 30, 2018. The motion passed unanimously.
County Administrator
County Administrator Rob Slocum stated that the postponed evening meeting with the
Town of Hancock would soon be rescheduled.
CITIZENS' PARTICIPATION
No citizens attending the meeting wished to participate.
MODIFICATION OF WATER AND SEWER RATES FOR FISCAL YEAR 2018
Julie Pippel, Director, Environmental Management, requested approval of the proposed
modification of water and sewer rates for the Fiscal Year 2018 General Fund Budget. The
Water Fund of $1,381,410 represents an overall increased percentage of 3.28% and the
Sewer Fund of $12,356,140 represents an overall increase of 4.03%, most of which is
attributable to debt costs, electric costs and salaries and benefit increases. Ms. Pippel
reviewed the proposed water and sewer rates for FY 2018 that include an increase per
quarter for the average residential user of 3.5% (or $5.80) for water and 3.5% (or $5.35)
for sewer. Similar increases are proposed for other user classes. The increases are needed
to meet expenditure requirements for the two enterprise utility funds due to long-range
financial plans.
Commissioner Barr, seconded by Keefer, moved to approve by resolution the water and
sewer rate increases for Fiscal Year 2018 as presented. The motion passed unanimously.
(Resolution No. RS -2017-09 is recorded among the Acts, Ordinances, and Resolutions of
Washington County and the original is located in the County Commissioners' Office.)
May 9, 2017
Page 3
APPROVAL OF FISCAL YEAR 2018 OPERATING BUDGET
Chief Financial Officer Debra Murray discussed several adjustments made to the proposed
FY 2018 Operating Budget since the public hearing held May 2, 2017. The semi-annual
interest reduction line item was increased by $95,000, a rent reduction was increased by
$16,000 due to a tenant's departure, a Board of Education State mandate adjustment for
disparity grant was increased by $53,000, $26,100 was restored to the Commission on
Aging's budget for programs and services, a reduction of $72,810 was made to the budget
for Engineering and Construction Management due to the recent reorganization, $603,000
was added due to the insurance shift and retiree insurance (not being passed on to
employees as originally proposed), and the budget for a proposed reorganization of the
Departments of Business Development and Public Relations was increased by $156,010.
The net increase in cost equals $876,300.
The Commissioners discussed several budget items. Commissioner Baker questioned the
absence of $5,000 in funding for the Historical Advisory Committee. The Commissioners
agreed to discuss such funding in the future. Commissioner Cline supported the budget as
presented but commented that funds from the use of speed cameras should only be used for
specific projects, not as long-term funding. The Commissioners discussed the remaining
wage reserve amount of $3,053,350 affected by the $876,300 net increase, which now
amounts to $2,177,050. Funding for potential County employee raises is included in that
amount. A salary study to be conducted this year will be considered for salary adjustments.
Commissioner Baker spoke against the use of speed cameras but supported the budget as
presented. Commissioner Cline confirmed that County employees would receive a 5%
raise and County retirees a 3% raise in July 2017.
Commissioner Barr, seconded by Myers, moved to approve the Fiscal Year 2018
Operating Budget including the discussed and agreed upon amendments and the specified
FY 2018 tax rates as presented and discussed. The motion passed unanimously.
APPROVAL OF FISCAL YEAR 2018 CAPITAL IMPROVEMENT PROJECT
BUDGET
Debra Murray stated that no changes have been made to the proposed FY 2018 Capital
Improvement Project (CIP) budget since last week's public hearing. The budget as
presented contains a borrowing amount of $12 million.
Commissioner Myers, seconded by Barr, moved to approve the Fiscal Year 2018 Capital
Improvement Project Budget as presented. Commissioner Keefer discussed the funding for
the new Public Safety Training Center facility and the sustainability of speed camera
revenue used to support public safety. The motion passed unanimously.
Ms. Murray stated that she has been notified of the results of the County's sale of 2018
Public Improvement Bonds of $13,780,000. M&T Securities is the low bidder at 2.85%.
May 9, 2017
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PROCLAMATION - TEEN PREGNANCY PREVENTION COALITION
James Kercheval, Executive Director, Greater Hagerstown Committee, appeared with
representatives of The Family Center, Washington County Health Department, and
Community Free Clinic to bring attention to the consequences of teen pregnancy. Coalition
member Carol Lourie discussed the issue of teen pregnancy and its effect on the
community. Commissioner Keefer presented a proclamation to the representatives in
recognition of Teen Pregnancy Prevention Month observed in May 2017.
EXTENSION OF CONDITIONAL LOAN FOR CYCLE AVIATION, INC.
Kassie Lewis, Director, Business Development, requested approval of the modification of
a conditional loan agreement with Cycle Aviation, LLC (Cycle) of Leesburg, Virginia. The
original loan agreement agreed to in September 2016 provided for a $100,000 conditional
loan under certain employment terms and conditions. The current proposal requests a one-
year extension to the existing loan agreement extending the job creation requirement
through December 31, 2017 and extending the job creation and retention requirement
through December 31, 2027. The company now employs eight permanent full-time
positions, one less than required. Cycle employed eleven permanent, full-time employees
in December 2016 but the number dropped to eight after three employees chose to leave
the company. The current salaries range from $38,000 to $95,000 per year. Cycle fully
expects to meet the remaining terms of the agreement. The Commissioners discussed the
company which is a good tenant and employs highly skilled workers.
Commissioner Barr, seconded by Keefer, moved to approve the modification of terms for
the conditional loan agreement with Cycle Aviation, LLC as presented. The motion passed
unanimously.
WASHINGTON COUNTY JOB CREATION AND CAPITAL INVESTMENT
REAL PROPERTY TAX CREDITS ORDINANCE
Kassie Lewis discussed a proposed modification to the resolution (Resolution No. RS -
2016 -21) adopted on December 13, 2016 pursuant to the Washington County, Maryland
Job Creation and Capital Investment Real Property Tax Credits Ordinance (Ordinance No.
ORD -2016-10) (Ordinance) concerning the wage eligibility requirement. Resolution No.
RS -2016-21 contained certain eligibility requirements that business entities must meet to
receive a real property tax credit under the Ordinance. One such requirement set the wage
amount the business entity would be required to pay the new permanent Full -Time
Positon(s) created under the Ordinance at 90% of the Average Weekly Salary for a
Washington County Worker ($17.53). The Department of Business Development reviewed
the findings and staff believes the current wage requirement is excessive based on the
review of the State's and other counties' programs. The State's requirement of 150% of the
prevailing federal minimum wage is recommended to assist a small business looking to
expand. The recommendation is to replace the current wage requirement of 90% of the
Average Weekly Wage per Washington County Worker ($17.53) with the requirement to
pay at least 150% of the prevailing federal minimum wage ($10.88) per hour. The
Commissioners discussed the proposal.
May 9, 2017
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Commissioner Keefer, seconded by Myers, moved to repeal Resolution No. RS -2016-21
and adopt a resolution modifying the current wage requirement of 90% of the Average
Weekly Wage per Washington County Worker ($17.53) with the requirement to pay at
least 150% of the prevailing federal minimum wage ($10.88) per hour. Commissioner
Keefer commented on the initial 90% rate and the reasoning/data behind the suggested
change. Ms. Lewis stated that staff had reviewed the information, looking at large
companies, and decided that it was not an accurate picture of smaller companies. The
motion passed unanimously. (Resolution No. RS -2017-10 is recorded among the Acts,
Ordinances, and Resolutions of Washington County and the original is located in the
County Commissioners' Office.)
2018 PUBLIC IMPROVEMENT BONDS SALE
Lester Guthorn, Financial Advisor, Public Advisory Consultants, announced that the
County received ten bids for its 2018 Public Improvement Bonds of $13,780,000, which is
a large number of bidders. M&T Securities was the successful bidder at 2.852%; the next
bidder was 2.857%, a nominal difference. Mr. Guthorn discussed the County's continued
strong rankings by ratings agencies and its excellent financial management. He
complimented County staff and officials for being able to manage finances during past
financial constraints and for its continued due diligence.
BID AWARD — FIRE SERVICE PERFORMANCE TESTING/INSPECTION
SERVICES
Karen Luther, Purchasing Director; Jonathan Hart, Assistant Director, Fire Services; and
Samuel Anderson, Emergency Planner, Fire Services, recommended award of the
contract(s) for Fire Service Performance Testing/Inspection of Fire Hoses, Fire Pumps,
Ground Ladders and Aerial Devices to the responsive, responsible bidders based on Option
No. 2 totaling $46,193.90 for the Total Sum Bid Price for Group as follows:
• Option No. 2A to Fail Safe Testing of Manalapan, New Jersey for $10,800
• Option 2B and 2C to Waterways of Southwest, Pennsylvania for $28,440 (213),
$3,778.90 (2C)
• Option 2D to Diversified Inspections/ITL, Inc. of Phoenix, Arizona for $3,175
Ms. Luther stated that the bid for the service contained two award options, Option No. 1,
the lowest Total Sum Bid for all services or Option No. 2, to award multiple contracts to
the responsive, responsible Bidder(s) who submit(s) the lowest Total Sum Bid Price for
each service group. The County will issue a purchase order, which will serve as the Notice
to Proceed, for any awarded contract(s) on July 1, 2017 based on which option was the
most advantageous to the County. If Option No. 1 is awarded, it will be an "all or nothing"
award for each group. The contract period tentatively begins July 1, 2017 with an option
by the County to renew for two consecutive one-year periods.
Commissioner Myers, seconded by Barr, moved to award the contract for Fire Service
Performance Testing/Inspection of Fire Hoses, Fire Pumps, Ground Ladders and Aerial
May 9, 2017
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Devices to the responsive, responsible bidders as proposed using Option No. 2 totaling
$46,193.90 for the Total Sum Bid Price for Group. The motion passed unanimously.
APPALACHIAN REGIONAL COMMISSION PRELIMINARY PROJECT
DESCRIPTION REVIEW AND RANKING
Jim Hovis, Director, and Susan Buchanan, Senior Grant Manager, Office of Community
Grant Management, introduced Bill Atkinson, ARC Program Manager, Maryland
Department of Planning, and Amy Jacobs, Economic Development Planner, Tri -County
Council of Western Maryland. Mr. Hovis and Ms. Buchanan described the process taken to
compile the preliminary project description prioritizations as determined and forwarded to
the Tri -County Council of Western Maryland (TCC) for funding consideration. Area
development projects require a cost match of 50% of total project costs, whereas access
road projects are 100% Appalachian Regional Commission (ARC) funded. This year's
ARC funding for Allegany, Garrett, and Washington counties totals $1,500,000 for Area
Development Projects and $2,500,000 for Local Access Road Projects. Funding for
Washington County's Area Development Projects includes six proposed projects
requesting $1,010,000 in ARC funds. Funding from the Transportation Equity Act for the
21st Century (TEA -21) Access Road category includes five projects requesting $4,100,000
in funding. Total requested ARC funding for all nine projects is $5,110,000. There is no
required match for TEA -21 funds. The overall goal of ARC funding is to improve the
quality of life and economy through jobs creation.
Ms. Buchanan presented the requests developed from submittals by various municipalities
and organizations for funding through the ARC as follows: 1) Hagerstown Community
College (Electronic Health Records Management) - $50,000; 2) The Maryland Theatre
(Expansion -Equipment & Furnishings Phase I) - $250,000; 3) Brook Lane (New Well and
Water System) - $200,000; 4) Town of Boonsboro (Sludge Dewatering Facility) -
$250,000; 5) Hagerstown Neighborhood Development Partnership (Down Payment
Assistance and Community Outreach) - $10,000; and 6) Washington County Museum of
Fine Arts (HVAC Replacement) - $250,000.
Requests for TEA -21 Funds for Local Access Road Projects (100% ARC -funded) were
submitted by 1) Washington County (Halfway Boulevard Phase II) - $1,000,000; 2)
Washington County (Halfway Boulevard Phase III) - $1,000,000; 3) Washington County
(Crayton Boulevard Phase II) - $1,000,000; 4) Washington County (Eastern Boulevard
Phase I) - $1,000,000; and 5) Town of Smithsburg (East School Lane) - $100,000.
Commissioner Cline, seconded by Myers, moved to accept the Appalachian Regional
Commission Preliminary Project Description prioritizations as prioritized by the County
Commissioners and to forward the ranking to the Tri -County Council of Western
Maryland for funding consideration; to allow applicants to proceed with application
submission to the Appalachian Regional Commission for those projects that receive Tri -
County Council's funding recommendation from the Tri -County Council; and to accept
grant funding approved and provided by the Appalachian Regional Commission as
presented. The motion passed unanimously.
May 9, 2017
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CONTRACT RENEWAL - ELECTRICIAN SERVICES AT COUNTY FACILITIES
Rick Curry, Buyer, Purchasing, and Jim Sterling, Director, Public Works, recommended
the renewal of the contract for Electrician Services at County Facilities (PUR-1251) with
Kube Electric Company, Inc. (KECI) of Williamsport, Maryland, per the rates included in
its letter dated March 27, 2017. KECI is requesting an approximate 2% increase above the
current hourly rates for work performed by an Electrician and an apprentice during regular
hours, evening, weekends and holidays as well as the rate for consulting and design
services. Funds are budgeted in various department line item accounts for these services.
KECI's rates are lower than the other two bidder's original Total Base Bid. This is the last
year of the contract and new pricing will be solicited next year.
Commissioner Keefer, seconded by Myers, moved to approve the contract renewal for
Electrician Services at County Facilities with Kube Electric Company, Inc. at the rates and
terms as presented. The motion passed with Commissioners Keefer, Myers, Cline and
Baker voting "AYE" and Commissioner Barr "ABSTAIN".
BID AWARD - HEATING, VENTILATON AND AIR CONDITIONING
EQUIPMENT UPGRADE AT DEPARTMENT OF WATER QUALITY
ADMINISTRATION BUILDING
Rick Curry and Rocky Bishop, Chief of Maintenance, Water Quality, recommended
awarding the bid for the purchase of the equipment, accessories and components to
upgrade the HVAC system at the Department of Water Quality (PUR-1340) to the
responsible, responsible bidder, Aircon Engineering, Inc. of Columbia, Maryland, which
submitted the total sum bid of $79,430.88. The project involves replacing the existing
HVAC system installed in the facility in 1989. Funds are available in the departmental
budget line item accounts for these services.
Commissioner Myers, seconded by Keefer, moved to award the bid for the purchase of the
equipment, accessories and components to upgrade the HVAC system at the Department of
Water Quality (PUR-1340) to the responsive, responsible bidder, Aircon Engineering, Inc.
of Columbia, Maryland, which submitted the total sum bid of $79,430.88 as presented. The
motion passed unanimously.
CONTRACT RENEWAL — HEATING, VENTILATING, AIR CONDITIONING
AND AUTOMATIC TEMPERATURE CONTROLS MAINTENANCE SERVICE
Rick Curry and Jim Sterling requested renewal of the contract for the Heating, Ventilating,
Air Conditioning and Automatic Temperature Controls Maintenance Services (PUR-1250)
with Miller & Anderson, Inc. of Clear Brook, Virginia, as requested in its letter dated
March 24, 2017. Miller & Anderson last year requested a 9.03% increase to the original
contract. It is not requesting any increase to the hourly labor rates for additional services as
needed, but is requesting an approximate 11.8 % increase for specific services for FY
2018. The contract is for a one-year period that commenced on July 1, 2014 with an option
by the County to renew for up to four additional one-year periods. The Washington County
May 9, 2017
Page 8
Health Department, Washington County Free Library and the Washington County
Museum of Fine Arts are also included in this contract. Funds are available in various
departmental budget line item accounts for these services.
Commissioner Barr, seconded by Myers, moved to renew the contract for the Heating,
Ventilating, Air Conditioning and Automatic Temperature Controls Maintenance Services
(PUR-1250) with Miller & Anderson, Inc. of Clear Brook, Virginia, as requested in its
letter dated March 24, 2017 and as presented. The motion passed unanimously.
BID RENEWAL - JANITORIAL SERVICES FOR WASHINGTON COUNTY
OFFICE BUILDINGS
Rick Curry and Jim Sterling recommended the renewal of the contract for Janitorial
Services for Washington County Office Buildings (PUR-1217) using Option No. 1 with
Stockwell Maintenance Systems, Inc. of Williamsport, Maryland, based on its letter dated
March 16, 2017. The letter requests a five percent increase for Fiscal Year 2018 for an
annual total price of $195,777.96 and $2,328 for the annual cost of stripping/waxing and
buffing floors and window cleaning. The original contract was awarded June 18, 2013.
Commissioner Myers, seconded by Barr, moved to renew the contract for Janitorial
Services with Stockwell Maintenance Systems, Inc. of Williamsport, Maryland, including
a five percent increase for FY 2018 as presented. The motion passed unanimously.
REQUEST TO DECLARE CERTAIN REAL PROPERTY AS SURPLUS
PROPERTY
Susan Small, Real Property Administrator, recommended declaring a portion of real
property, consisting of approximately 63+ acres located within the former Fort Ritchie
Military Reservation premises, as surplus property and to authorize the advertising of the
County's intent to convey said property. On January 24, 2017, the Board of County
Commissioners established the "Cascade Development District" at Fort Ritchie to
encourage mixed uses of redevelopment on the site. In November 2016, the County
entered into an agreement with JG Business Link International (JGBLI) to serve as an
agent in brokering redevelopment of the 600 + acre property. The conveyance of 63+ acres
along the north side of the property will assist with the redevelopment efforts for areas of
commercial, residential and retail use. There is no monetary consideration relating to the
conveyance of the property.
County Administrator Rob Slocum discussed the acreage that will be conveyed and
developed using a two -phased approach. Forty-three acres would initially go through the
conveyance process with the remaining lands to be subdivided and conveyed at a later
time. Two acres in a remote area containing a cell tower that provides rental income to the
County would be retained by the County.
Commissioner Barr, seconded by Cline, moved to declare a portion of real property,
consisting of approximately 63+ acres located within the former Fort Ritchie Military
Reservation premises, as surplus property and to authorize the advertising of the County's
May 9, 2017
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intent to convey said property as presented. Commissioner Keefer commented that he
supports the redevelopment efforts but would be voting against the conveyance due to his
not knowing the property would be given away. He would have preferred an initial
conveyance of a smaller portion and that this opportunity would have been offered to other
developers. The motion passed with Commissioners Barr, Cline, Myers, and Baker voting
"AYE" and Commissioner Keefer "NO".
WASHINGTON COUNTY SCHOOL BOARD NOMINATING COMMISSION
APPOINTMENTS
County Attorney John Martirano briefly discussed the Washington County School Board
Nominating Commission to be convened according to State law due to the recent dismissal
of Board of Education member Karen Harshman. The Commission is to be comprised of
six voting members and a non-voting chair. Four members are to be appointed by the
County Commissioners including the chair. Mr. Martirano stated that the other members of
the Commission that have been appointed by others are Tom Berry (Washington County
Delegates appointment), Tom Newcomer (Washington County Senators appointment), and
Pieter Bickford (Washington County Board of Education appointment). President Baker
listed the proposed Commissioners' appointees as Rudy Krumpe (Business Community),
Jennifer Ashbaugh (Citizens Advisory Council), Hal Spielman (Educational Community),
and Jerry DeWolf (Member of the Public -Chair).
Commissioner Myers, seconded by Barr, moved to appoint Rudy Krumpe as the Business
Community representative, Jennifer Ashbaugh as the Citizens Advisory Council
representative, Hal Spielman as the Educational Community representative, and Jerry
DeWolf as the public member appointed as Chair. The motion passed unanimously.
ADJOURNMENT
Commissioner Myers, seconded by Keefer, moved to adjourn the meeting at 12:11 p.m.
Robert J. Slocum, County Administrator
John M. Martirano, County Attorney
Vicki C. Lumm, County Clerk