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CONTACT: NORMAN BASSETT                    
 240-313-2130

Review of Actions Taken in the Washington County
Board of County Commissioners  Meeting
January 14, 2003

    
The Commissioners held a joint meeting with the Board of Education to discuss textbook needs, status of school libraries, the BOE capital improvement plan, a review of technology needs and transportation needs.

COMMISSIONERS' REPORTS AND COMMENTS
    Commissioner John Munson reported on a meeting of the Agricultural Preservation Advisory Committee that revealed the state funding for the program has been reduced to $10 million. Last year over $250 million was available statewide.  
    Commissioner Dori Nipps commented on a meeting of the Historical District Advisory Committee, that reviewed a development plan on Marsh Pike. Historical structures within that plat of land will be preserved, Nipps reported. The issue of the statue of Robert E. Lee at Sharpsburg will be submitted to the Board of Zoning Appeals by the property owner, Nipps said. The Historic Advisory Commission is in the process of reorganization and requested appointment of Pat Schooley to its membership. The measure was approved by unanimous vote. That Commission also requested a small amount of funding to be used for postage and office supplies.
    Commissioner Bill Wivell reported on last week’s Maryland Association of Counties’ (MACo) Winter Conference, held in Annapolis.
    Commissioner Jim Kercheval reported on a meeting regarding Septic Systems at the MACo conference.
    Commissioners' President Greg Snook told the Board that a joint letter of support on the regional airline service has been submitted to the General Assembly by Washington and Allegany Counties. A meeting of the Disability Advisory Committee discussed response to the recent needs assessment survey. About 10% of the forms were returned. Information from the surveys will be used to assist the Commissioners in meeting needs of persons with disabilities. The Committee will present a report to the Board in April, Snook said. The Board of Education has requested a change in the time of the Joint meetings with the Commissioners. The BOE wants to meet at 8:30 a.m. at the County Administration Building on the joint meeting days, rather than the 3:30 p.m. meeting time which had been in effect. The next meeting of the Maryland Municipal League Western Maryland group is January 27th  in Funkstown, Snook reported.

DISCUSSION OF SCHOOL BOARD REPLACEMENT MEMBERS
    Commissioner Snook reported that the Board of Education has requested  Commissioner membership on the selection committee to find a replacement for Dori Nipps. Commissioner Kercheval expressed concern over the size of that Board, saying that the time is right to address the issue due to the existing vacancy, and asking if the number could be reduced to 5 members. Higher salaries could be paid if the number of Board members was reduced, Kercheval said.  Commissioner Nipps told the Board that changes to the Board of Education would have to come through General Assembly action, and would need to be made during this legislative session in order to meet the December filing date for the 2004 election. Commissioners’ President Snook will serve on the replacement committee.

TEACHER EXTERN PROGRAM
    Arnold Hammann of the Washington County Public Schools (WCPS) and Peggy Bushey of the Economic Development Commission (EDC) brought a request for County participation in the 2003 Teacher Externship Program before the Board. The Externship program has been in place for one year, and is jointly sponsored by the EDC, Hagerstown Community College (HCC) and Hagerstown Business College (HBC). Teachers are matched with partnering businesses or local governments for three days of worksite observations, then undergo nine hours of professional development, debriefing by mentors and educators, and distribution of lesson plans created from the experience. The program updates teachers’ skills and understanding of applied skills in the workplace. The program was fully funded in 2002 by a federal grant, and supported 36 teachers from WCPS, HCC and HBC, Hammann said. Total cost for the program would be $32,800.00. As much as $10,000.00 could be available in private funding, Hammann said, and remaining 2002 funds of $7,000.00 are available. Hammann requested $15,800.00 in support. Commissioner Snook said the request should be included in the EDC operating budget for FY 2004, it will be addressed when budgets are set.

CITIZENS PARTICIPATION
    Each week the Board of County Commissioners sets aside time to hear from the Citizens of Washington County on matters of community interest.
    Herald-Mail Editor Bob Maginnis asked about the possibility of using the old Fort Ritchie Gym to assist the CSLV sports League. Commissioner Wivell told Maginnis that One Mountain Foundation, PenMar Development Corporation and the Commissioners have been working on the reuse of that facility. The issues of $30,000.00 in operation costs and $20,000.00 in repairs needed to enable the facility to meet codes are in discussion, Wivell said.
    T.S. Alford of Hagerstown commented on the amount of rent paid for a hangar at Hagerstown Regional Airport and the state of repair of that hangar. Commissioner Snook said that Airport staff will take a look at the problem.

OTHER BUSINESS    
    County Administrator Comments:  County Administrator Rod Shoop said that Commissioners from the neighboring Counties will gather for a meeting in the spring, to renew collaborative activities. A meeting is being set for this Thursday for the new Commissioners with School Superintendent Betty Morgan and staff of the BOE, Shoop said.
    
AWARD OF BID FOR 2003 BONDS
    Budget and Finance Director Debra Bastian and Financial Advisor Lester Guthorn brought this award, for low bid on $7,450,000.00 in Public Improvement Bonds for 2003, before the Board. Electronic bids were taken at 11 a.m. and Guthorn opened the bids via the Parity software program. Commissioners viewed the bids on-line as they were received. Low bidder was Legg, Mason, Wood, Walker, Inc. with an interest rate of 4.188%. That bid was the lowest rate recorded in recent history. Next lowest bid was 4.21%. The bid was verified, and a resolution to accept the bonds at the low bid rate was approved by unanimous vote. The bond sale was enlivened this year by recent news of the County’s bond rating being elevated to A1 by Moody’s bond assurance company. On January 2nd Moody’s issued a statement praising Washington County’s fiscal policies and procedures, and affirmed an A1 rating on the County’s outstanding debt. The FY ’03 Capital Improvement Budget was approved by the Board with the use of this bond issuance financing. A Declaration of Intent to Reimburse was signed on behalf of the Board, to allow expenditures for the projects prior to the actual bond sale.

NON-PUBLIC SAFETY COMPENSATION SAVINGS
    Human Resources Director Alan Davis reported to the Board on compensation savings due to turnover of non-public safety personnel. Davis presented the analysis by General Fund, Enterprise Fund or Grant Fund, department affected, budgeted amounts, new hire date, new employee compensation, amount saved during recruiting of the new hire, and turnover credit. The General Fund saved $108,901, the Enterprise funds saved $92,677.00 and Grant Funds saved $40,444.00. Commissioner Wivell requested that $110,000.00 of funds saved be set aside as seed money for the proposed study of administrative and operational functions of County Government. The measure was approved by unanimous vote.
    
POSITION VACANCIES
    Davis, Water/Sewer Director Greg Murray and Highways Department Maintenance Manager Jack Reynard requested that 4 vacant positions be filled immediately, due to operational and/or licensing requirements. The positions are Facilities Engineer at $46,555 annually, an Electrician II at $34,734 and a Treatment Plant Operator III at $30,011 at Water and Sewer, plus a Welder at the Highways Department at $32,746 per year. The requested positions were not part of the vacant position study presented earlier. The measures were approved by unanimous vote.

CERTIFICATE OF AWARD
    The Board presented a Certificate of Award to Clyde Harris of Hagerstown, for his outstanding service to the Local Emergency Planning Committee (LEPC). Harris resigned as Co-Chair of the Committee in November of 2002, and has been transferred to Florida by his company, Synagro, Inc. Initially elected to the position in 1996, Harris made many contributions to the LEPC, establishing an outreach program to local businesses to explain the role of the Committee in the Community, appointing an Educational Committee, and establishing chemical safety programs for homes and schools. The annual poster contest for school children was made possible in part through his financial support, and Harris was instrumental in securing grants form the Maryland Emergency Management Administration for annual training exercises in Washington County. The LEPC promotes awareness of safety in dealing with Hazardous Materials, especially chemicals in the community.

REPORTS FROM COUNTY STAFF
    Human Resources Director Alan Davis discussed progress on the Employee classification and salary study, and on the monthly meeting with Union leaders. The Board should appoint a negotiating team soon, for the upcoming Union contract renewal, Davis said.
    Emergency Services Department Director Joe Kroboth reported on a statewide Emergency Services activity dealing with biochemical preparedness, and meetings with Allegany and Garret Country officials on regional emergency preparedness issues.
    Planning and Community Development Director Bob Arch told the Board that state Program Open Space Funds are still an unknown issue, but cuts are likely in that program. Arch requested Board guidance in distribution of Hotel-Motel Tax funds for the current year. Commissioner’s President Snook suggested the funds be set aside for economic development marketing or business retention programs to assist in these tough economic times.

CONTINUED DISCUSSION OF TAX INITIATIVES FOR THE 2003 LEGISLATIVE SESSION
    The Board discussed alternative forms of revenue generation to provide additional funds for education, debt reduction and public safety. A building Excise Tax and a county transfer tax are alternative types of excise taxes for generating additional revenue. Such laws were passed for Calvert and Frederick counties in the 2001 General Assembly session. The Frederick County proposal was based upon a rate of $.25 per square foot for residential construction and $.75 per square foot for non-residential construction. The Commissioners presently have statutory authority to impose Impact Fees, but the statute is limited to specific districts, the proceeds must be used only for additional or expanded public works, improvements or facilities within the districts, and the proceeds must be returned with interest if not expended within five years. Other threshold requirements in the statute such as the creation of a division of public works, the adoption of an adequate public facilities ordinance, and updating the comprehensive plan have already been met. These limitations do not appear in the statutes providing for impact fees in comparable counties such as Carroll, Calvert, Frederick, and Garrett.  A County Transfer Tax would “piggyback” on the State transfer tax. It would be assessed only on transfers of property. In last week’s meeting the Board requested more information on several of the subjects, and requested that time be set aside on this week’s agenda to discuss the matters. Commissioner Wivell had suggested a flat $10 fee per improved property tax account to be used for Agricultural Preservation and Scenic Easement. The fee would affect 44,000 such accounts in Washington County. The measure was approved by a 4-1 vote, with Commissioner Munson voting “no”. Commissioner Snook requested enabling legislation for a Transfer Tax to be used for overall debt reduction, school construction capital costs and Public Safety issues. Commissioner Wivell did not support the Public Safety aspect of the proposal, and Commissioner Munson did not support the measure, which passed on a 3-2 vote. None of the Commissioners supported revising Impact Fees, and the Excise Tax enabling legislation failed on a 4-1 vote with Commissioner Kercheval voting “yes”.

DISCUSSION OF PROPERTY TAX SETOFF
    Budget and Finance Director Debra Bastian brought information on the current Property Tax Setoff before the Commissioners. Bastian said two methods of rebating County taxes to municipalities exist. The current Tax Rebate calculation addresses Sheriff’s patrol and park expenditures within the general fund with applied caps but does not take into consideration other county services such as education and detention. Under a Tax differential method, municipalities provide some services such as police, planning, and zoning that the county also provides to county residents. The County does not have to provide those same services in those areas, thereby saving county expenditures. The county provides services to all county residents that the municipalities do not provide such as education, detention, and the courts, in which tax base revenue is used to support the function. The overall need to reduce county expenditures in municipal areas would reflect in a lower county tax rate that is applicable for municipal residents. The reduction of the county tax rate or a tax differential would give the benefit directly to the citizen. The County has agreed to participate and lead a committee in the research and development of a new property tax set-off methodology. The new model makes the tax rate a function of what services are provided, where they are provided, and whom they are provided for. The Tax Rebate for fiscal year 2003 was $1,121,887, and the budget was $1,150,000. Impact of a Tax Differential could be in the range of $130,000 to $450,000 based on preliminary estimates, Bastian said. Under the new model, all expenditures and revenues supported by the tax base would be incorporated, and the cap would be removed. Two taxing districts would be created, and revenues and expenditures allocated between them. The County-Wide Taxing District would deal with services the County provides to the entire area, including municipal areas such as the City of Hagerstown, Williamsport and Hancock, while the Unincorporated Taxing District would feature those services provided only to the areas outside municipal boundaries.  The County will continue to use the current Tax Rebate formula for this fiscal year. Bastian told the Board that the municipalities will receive an overall 9% increase. The City of Hagerstown will receive the largest amount, $899,063 which is an increase of 9.55%. Boonsboro’s share is $68,691, up 8.87%; Hancock receives $42,273, an increase of 8.87%; Williamsport’s share, $45,778 also represents an 8.87% increase. Funkstown will receive $5,239, a decrease of 0.7%. Smithsburg will receive $52,591, an increase of 8.87%. Both Sharpsburg and Keedysville experience 0.7% decreases, with Sharpsburg receiving $3,683 and Keedysville’s share being $2,569. Clear Spring will receive the minimum of $2,000. The figures are derived using a formula that takes into account a municipality’s assessable base, its population in the latest census and net taxable income. The first of the tax setoff meetings was held in Boonsboro on Tuesday evening. Meetings with the Mayors and Council Members of the municipalities will be held through the coming months to explain the setoff procedure and amounts received.

PROPOSED REPLACEMENT OF EMERGENCY & LOCAL GOVERNMENT RADIO COMMUNICATIONS SYSTEM
Public Works Director Gary Rohrer, Communications Maintenance Manager Pete Lowenheim, Chief Sheriff’s Deputy Captain Doug Mullendore and Director of Emergency Services Joe Kroboth brought this issue before the Board. Development of a plan to replace the antiquated communications system has been a previous County Goal.  Lowenheim described extensive research into other jurisdictions’ communications redevelopment projects and plans. The 30-year old county-wide communications system is used to dispatch fire, rescue and public safety units, and for general government
communications, but unit-to-unit direct communications is difficult, at best.  Communications Maintenance was authorized last year to obtain a 10-channel trunking license from the Federal Communications Commission, to reserve needed radio frequencies. An automatic sunset provision goes into effect on September 13, 2003, and if the frequencies are not in use, the County would have to forfeit them. Rohrer told the Board that the system has been pushed beyond its limits. Proposed remedies for the problems were explained and operational limitations discussed by Mullendore and
Kroboth. Rohrer told the Board that preliminary cost estimates are in the $15 million range.
 
VISION & MISSION DISCUSSION
    County Administrator Rod Shoop brought this issue before the Board. Last week, Shoop discussed the process by which the County Vision, Mission and Goals are developed. On September 27th and October 18th, Core County Staff met with facilitator Liz Weber to review the County Vision and Mission statements, and begin drafting preliminary goals for calendar year 2003. The Vision statement was amended and simplified. Staff felt the existing 2002 Mission statement remains active and effective in support of the amended Vision for Washington County.   Staff met to review these measures on November 6th. Discussion included the Goal setting process and how each department plays into the overarching management process.  The new Board of County Commissioners should set four-year initiatives, which Vision, Mission and Goals will support. The proposed 2003 Vision of Washington County Government is “to become the regional leader in providing and coordinating efficient and effective public services.”
Commissioner Kercheval requested adding “in an open, cooperative manner” to the Vision statement. Staff felt the 2002 Mission statement would not need adjustment. That statement reads, “The Mission of Washington County Government is: Supporting and strengthening individual and community self-reliance and responsibility; Promoting education, economic opportunities, public health, safety, and welfare; Protecting the environment and cultural resources we share; and Planning for future urbanization and a culturally diverse population.” Shoop discussed four preliminary goals developed by staff involving Zoning changes due to the comprehensive plan, development of a County-wide disaster recovery plan, improved Public Information and Marketing Strategies, and development of a plan to adopt the revised Wage and Salary plan. Commissioners’ President Snook said that the privatization plan for the Conococheague Industrial Pretreatment Facility should be continued. Shoop requested that the Board propose initiatives that it sees as paramount over the next four years, so that goals may be set to support those initiatives. Further discussions on the issues will take place over the next several weeks.

The Board held a joint meeting with the Mayor and Council of Boonsboro to discuss the FY 2003 Tax Set-Off during the evening.