AGENDA ITEM #9
November 23,2010
Action
November 19,2010
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Analystfr~
Action:
Bill 34-10, Finance
Public Facilities - Private Projects
Management and Fiscal Policy Committee recommendation
(2-1):
do not enact Bill 34­
10. Councilmember Navarro supported enacting Bill 34-10 with amendments.
Bill 34-10, Finance
Public Facilities - Private Projects, sponsored by Councilmembers
Leventhal, Knapp, and EIrich, was introduced on May 18,2010. A public hearing was held on
June 22 at which several speakers, including a representative of the County Executive, opposed
Bill 34-10. The Committee held worksessions on Bill 34-10 on July 12 and October 4. The
Council held a worksession on Bill 34-10 on October 19.
As introduced, Bill 34-10 would amend the definition of public facilities to specifically exclude
the construction, reconstruction, extension, acquisition, improvement, enlargement, alteration,
repair, or modernization of any privately owned building or facility.
Background
In his recommended FY11-16 Capital Improvements Project, the County Executive
recommended funding certain projects with general obligation (GO) debt, including the Olney
Theater, Ivymount School (to assist with renovation and expansion of Annex Building), and CHI
Centers (to assist with renovation of MacDonald Knolls facility). During the Council CIP
worksessions, Councilmembers learned that while many private projects could not be funded by
GO bonds, the County's bond counsel advised that, under existing laws and regulations, GO
bonds could be used to fund the Ivymount School project.
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At the request of Councilmember Leventhal, Council staff created a chart highlighting the
projected use of revenue for debt service as described in the Council-approved FYl1-FY16
Fiscal Plan. This information is depicted on the chart below.
Debt Service Payments in the
Council-Approved FY11-16 Fiscal Plan
$450 .,..------""-•." . , - - . - - " . - - - - - - - - - - - - - - . ,
$396.1
$378,5
$400
$356.1
$328.6
$350
$295.3
$300
251,5 $264,0
Debt
Service $250
(In millions)
$200
$150
$100
$50
$0
'------'----­
FY10
FY11
FY12
FY13
FY14
FY15
FY16
Fiscal Year
Use of general obligation debt for private projects in the County.
At the public hearing,
Councilmember Leventhal directed Council staff to research whether the County has used GO
bonds to fund nonprofit organizations' capital projects
in
the past. After reviewing the cost­
sharing CIP project, Council staff is unaware of any other time that GO debt has been used to
fund private organizations' projects. A review of past PDFs of the cost-sharing project shows
that the only GO bond funded component in that PDF was for the Old Blair Auditorium, which
would not be affected by this bill (see
©11-12
for the FY09-14 CIP PDF).
Use of general obligation debt in other jurisdictions.
At the public hearing, Councilmember
Trachtenberg directed staff to provide information about the use of GO bonds for private projects
in other jurisdictions. Attached on
©13-1S
is a memorandum from Council Grants Manager
Peggy Fitzgerald-Bare to the Health and Human Services Committee discussing the use of GO
bonds in other jurisdictions, including the use of Maryland state bond bills. That memorandum
noted that local jurisdictions do not generally use GO proceeds to fund capital projects of private
entities; however, Baltimore City gives GO money under its economic development program,
and Charles and S1. Mary's Counties fund hospitals and nursing homes with bonds backed by a
GO pledge.
2
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Issues/Committee Recommendation
1.
How much should the use ofgeneral obligation bonds for private facilities be restricted?
As noted above, as introduced, Bill 34-10 would amend the definition of public facilities to
specifically exclude the construction, reconstruction, extension, acquisition, improvement,
enlargement, alteration, repair, or modernization of any privately owned building or facility. At
the public hearing, Finance Director Jennifer Barrett opposed Bill 34-10 because it would limit
the County's flexibility in acquiring and upgrading buildings and facilities for government
functions. Ms. Barrett argued that existing County law and IRS regulations already limit the use
of GO bonds and that the Council could limit undesired uses of GO bonds through the adoption
of the capital budget and bond authorization bills (see her testimony, ©5-6). Although existing
County law and federal regulations may already limit the use of GO bonds, as bond counsel
noted (see ©7-9), some projects (such as the Ivymount School) could still be funded with GO
bonds.
In response to this concern, Councilmember Leventhal proposed an amendment that better
reflected the sponsor's intent (©23). The amendment would:
• Revise the definition of public facilities related to schools to limit the definition to only
public schools. In this way, GO bonds could not be used to fund private school capital
projects.
• Remove language that specified that GO bond funding could not be used for a variety of
capital related projects for nonprofit or for profit buildings. The amendment would
instead specify that GO bond funding could not be used to fund any project that does not
meet the definition of public facility.
• Make clarifying technical corrections to §20-15 that are not intended to affect the
substance of the bilL
Additionally, Councilmember Leventhal's amendment would revise the definition of public
facilities to allow the use of GO bonds for fa9ade easements related to a community
revitalization project. In May, as part of the CIP, the Council approved Project No. 760900,
Burtonsville Community Revitalization (©26). The project description form (PDF) for that
project identifies
GO
bond funding as the source of funds from FYll-FY14. However, Council
staff understands that current law would not permit the use of GO bonds for this project.
Councilmember Leventhal's amendment would permit GO bonds to be used to fund this project.
The Committee (2-1) recommended against enacting Bill 34-10.
Councilmember Navarro
supported Bill 34-10.
At the October 19 Council worksession, Ms. Barrett indicated that she did not object to
Councilmember Leventhal's proposed amendment if the amendment would allow the County to
use GO bond funds for County-owned buildings even if that building was leased to a private
entity. To address that concern, Councilmember Leventhal revised amendment to allow GO
bonds to be used for "any building or structure that is or will be owned by the County" (©23,
lines 20-21).
3
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The table below summarizes the types of facilities that would be eligible for GO bond funding
under current law, Bill 34-10 as introduced, and Councilmember Leventhal's proposed
amendment.
Facility
I
Current Law
I
Bill 34-10
• Allowed
Not allowed
I Allowed
i
Leventhal
amendment
Allowed
· Not allowed
Allowed
Allowed
· Not allowed
I Not allowed per
bond counsel
i
opinion
Nonprofit in County building Allowed
Allowed
County public roads and
sidewalks
I
Transit facilities
Allowed
Off-street parking lots and
• Allowed
• facilities for parking lot
i
districts
I
Public housing
. Allowed
I
, Agricultural easemen!s
Allowed
Fac;ade easement
Not allowed
!
Public school building
I
Private school building
Private school in a
• County-owned building
Purchase of a private
building for County use
• Nonprofit in private
building (e.g., Olney Theater)
!
. Allowed
Allowed
i
Allowed
Allowed
I
Not allowed
I
Not allowed
i
Allowed
Allowed
Allowed
Allowed
Allowed
Allowed
Allowed
Allowed
Allowed
Allowed
Not allowed
• Allowed
Allowed
Allowed
2. Should bond/unding be available/or accessory uses/or private projects?
At the October 19 Council worksession, Councilmember Andrews expressed an interest in
allowing the County to issue GO bonds for a private project that is not defined as a public facility
if the project is an integral part of a project that would otherwise qualify for GO bond funds as a
public facility. Council staff has drafted the following amendment to Code §20-15 for the
Council's consideration:
!J;U
(g)
[[Any such]] General obligation serial maturity bonds may be issued [[under the
authority of this division and]] for the purposes enumerated in [[the preceding
section]] Section 20-14 at any time, within the limitations provided by law.
[[Bonds]] Except as provided in subsection (c), bonds must not be used to fund
any project that is not a public facility as defined in Section 20-14.
General obligation serial maturity bonds may be used to fun.daproject that
is
not
a public facility as defmedjn Section 20-14· if the Cotlncil finds that:
ill
the facility for which· the bonds would bellsed is an integral part of a
facility that would qualify for bonds under this Article: and
(l1
the facility is necessary serve a public purpose.
to
4
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Council staff has shared this amendment with Finance staff who will be prepared to comment on
the amendment at the Council session.
3. Should there be an exception/or critical capital projects?
At the public hearing, Alan Lovell, speaking for CHI Centers, urged that an exception to any GO
bond restriction be made for needed renovations and repairs to day program facilities and
residential facilities (see testimony, © 10).
At the October 19 Council worksession,
Councilmember EIrich requested an amendment that would allow the County to issue GO bond
funds for private projects if the recipient agrees not to dispose of the property without County
approval and, if the County approves of the disposition, to repay the County. Council staff has
drafted the following amendment to Code
§20-15
for the Council's consideration.
(hl
[[Any such]] General obligation serial maturity bonds may be issued [[under the
authority of this division and]] for the purposes enumerated in [[the preceding
section]} Section
20-14
at any time, within the limitations provided by law.
Bonds must not be used to fund any project that is not a public facility as defined
in Section
20-14,
unless:
ill
the recipient of bond funds agrees:
CA) not to sell. ·lease. exchange, giveaway.. or otherwise transfer pr
dispose
of·
any· interest· ill· the . property .that was acquired,
constructed. extended. improved. ·erilaiged.. rutered.. repaired.
·Of
modemizedwith bond· funds withoutCounWaPoroval
fOf20
years: and
(hl
if the County permits the transfer
Of
disposition
of
the propertv.to
I~Pay
the County the percentage of.the proceeds· allocable to· the
bond funds used to· acquire. construct..· exteng..
improv~.
enlarge,
alter. repair,
Of
modernize the propertv; and
ill
the Council finds that issuillgbonds is necessary to serve apubllcpuwose.
Council staffhas shared this amendment with Finance staff who will be prepared to comment on
the amendment at the Council session.
Committee recommendation: The Committee recommend
(2-1)
disapproval of Bill
34-10.
Councilmember Trachtenberg and Councilmember Ervin felt that it was not necessary to
legislate in this area because the Council, as the fiscal authority, could exercise its judgment
during the annual budget cycle. Councilmember Navarro supported Bill
34-10.
5
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This packet contains:
Bi1l34-10
Legislative Request Report
Fiscal Impact Statement
Select testimony and related materials
Jennifer Barrett, Finance Director
Memo from Bond Counsel
Alan Lovell, CHI Centers
FY11-16 CIP Project No. 720601 (Cost Sharing: MCG)
Memorandum and attachments from Peggy Fitzgerald-Bare
Leventhal Amendment to Bill 34-10
Burtonsville Community Revitalization PDF No. 760900
County Code §§20-14 and 20-15
F:\LA W\BILLS\1034 Finance - Public Facilities - Private Projects\Action Memo 11-23.Doc
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Bill No.
34-10
Concerning: Finance - Public Facilities ­
Private Projects
Revised:
5/14/2010
Draft No. _1_
Introduced: _ _ _ _ _ _ _ __
Expires: _ _ _ _ _ _ _ _ __
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-'-No::<.!n..:.;:e'--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Leventhal and Knapp
AN
ACT to:
(1)
amend the definition of public facilities to specifically exclude the construction,
reconstruction, extension, acquisition, improvement, enlargement, alteration, repair,
or modernization of any privately owned building or facility; and
generally amend the county finance law.
(2)
By amending
Montgomery County Code
Chapter 20, Finance
Section 20-14
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Cmmcil for Montgomery County, Maryland approves the following Act:
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BILL
No.
34-10
1
2
Sec.
1.
Section 20-14 is amended as follows:
20-14. Definition of "public facilities."
.
As
3
4
used in this Chapter,
public facilities
means:
*
extension,
acquisition,
improvement,
*
*
alteration,
repair,
or
5
However,
public facilities
does not include the construction, reconstruction,
enlargement,
6
7
8
9
modernization of any building or facility owned !2y
f!
private for-profit or non-profit
entity, excluding any fire, rescue, and emergency medical service facility subj ect to
Chapter
Approved:
Nancy Floreen, President, County Council
Approved:
Date
Isiah Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk of the Council
Date
@laWlbiIlS\1034 finance - public facilities - private projectslbill l.doc
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LEGISLATIVE REQlJEST REPORT
Bill 34-10,
Finance -Public Facilities
-
Private Projects
DESCRIPTION:
Bill 34-10 amends the definition of public facilities
in
Chapter 20 to
exclude the construction, reconstruction, extension, acquisition,
improvement, enlargement, alteration, repair, or modernization of any
privately o\vned building or facility.
County law could be interpreted to allow the use of general obligation
bonds to fund private projects that meet the definition of public facilities
in §20-14.
PROBLKM:
GOALS AND
OBJECTIVES:
To clarify County law such that private projects are not eligible to be
funded by general obligation bonds.
COORDINATION:
Department of Finance
FISCAL IMPACT:
To be requested.
ECONOMIC
IMPACT:
To be requested
SOURCE OF
INFORMATION:
Amanda Mihill, Legislative Analyst, 240-777-7815
APPLICATION
WITHIN
MUNICIPALITIES: To be researched.
PENALTIES:
None.
F:\Law\Bil1s\1034 Finance - Public Facilities - Private Projects\Lrr.Doc
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OFFICE OF MANAGEMENT AND BUDGET
Isiah Leggett
County Executive
Joseph
F.
Beach
Director
MEMORANDUM
June
23, 2010
TO:
FROM:
SUBJECT:
Nancy Floreen,
prCSide~ouncil
Joseph F. Beach,
Directo~
Bill 34 - 10, Finance - Public Facilities - Private Prqjects
The purpose of this memorandum
is
to transmit a fiscal and economic impact statement
to the Council on the subject legislation.
LEGISLATION SUMMARY
This legislation amends Chapter 20, Finance Section 20-14 of the Montgomery County
Code with respect to amending the definition of public facilities to specifically exclude the construction,
reconstruction, extension, acquisition, improvement, enlargement, alteration, repair, or modernization of
any privately owned biIilding or facility.
FISCAL AND ECONOMIC SUMMARY
Since the subject legislation prohibits, but does not mandate certain actions that would
have been taken in the future
it
does not have
a
direct, quantifiable fiscal impact.
As the Bill is
presently
written, the County Government would not be able to purchase privately owned buildings or facilities for
governmental purposes;
with
the exception of
any fire, rescue, or
emergency
medical service facility.
This could limit flexibility and hinder opportunities to achieve considerable savings
0)'
cost avoidance
compared to new facility design and construction. For example, this bill as written, would prohibit the
purchase of the GE Tech fa.cility.
The following contributed to and concurred with this analysis: David Platt and Glenn
Wyman, Depaltment of Finance; and Bryan Hunt, Office of Management and Budget.
JFB:bh
c:
Kathleen Boucher, Assistant Chief Administrative Officer
Dee Gonzalez, Offices of the County Executive
Jennifer Ban'ett, Director, Department of Finance
David Platt, Department of Finance
Glenn Wyman, Department of Finance
John Cuff, Oftlce of Managemcnt and Budget
Bryan Hunt, Office of Management and Budget
Office of the Director
10:
Street, 14th Floor' Rockville, :vlaryland 20850 • 240-777-2800
www.montgomerycountyrod.gov
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Z/i
)
Testimony: Bill 34-10, Finance Public Facilities . Private Projects
Good afternoon, I am Jennifer Barrett, Director of the Department of Finance,
and I am here to testify on behalf of County Executive Isiah Leggett on Bill 34-10
Finance - Public Facilities - Private Projects. The County Executive does not support
Bill 34-10 because it unnecessarily limits the County's flexibility in acquiring and
upgrading buildings and facilities for governmental functions.
I understand that the bill's intent is to modify the defmition of public facilities
under section 20-14 of the Montgomery County Code and specifically restrict the use
of the County's general obligation bond proceeds for the construction, acquisition or
alteration of any building or facility owned by a private for-profit or non-profit entity.
Our primary concern has to do with so general a restriction on acquisition or
renovation of a building or facility owned by a private entity.
In
fact, the proposed
restrictions are in conflict with the Council's adopted Capital Improvements Program
as well as prior funding decisions by the Council that have proved to be wise
investments.
There are instances in which it is most economic to acquire an existing,
privately owned building rather than leasing or building a facility. For example, in
1987, the County acquired 401 Hun,gerford Drive to house governmental offices,
including those ofHHS. The County acquired 1301 Piccard Drive in 1996 for use for
other HHS functions. \Vhile funded with Revenue Authority bonds, the County had
the option of using GO bonds and could have done so under current code.
The County is now set to purchase the GE Tech Park building for the Public
Safety Headquarters, and the Council approved the use of GO bonds to fund a portion
of the renovation costs of the building while it is still privately owned. Bill 34-10
would conflict with the Council's own actions on the CIP in that regard.
In
addition, based on the County's bond counsel's review of the proposed
legislation, it appears that the restrictions cited go far beyond just the acquisition or
renovation of privately owned buildings. Bond counsel has noted concerns with the
potential for broad interpretation of the limitations. Counsel notes that: "While the
word "facility" is not defmed, its common meaning could apply to most ofthe capital
facilities that are acquired with the County's bonds since most are acquired from
private parties.
It
could be applied to prevent the County from acquiring office
buildings, park land, equipment, facade easements and agriculture easements from.
private entities. As a result, the County would lose flexibility regarding the funding of
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projects that serve a public function if the project entails the acquisition, construction
or improvement of a privately owned building or facility."
Bill 34-10 preserves the ability to finance certain fire, rescue, and . .
emergency medical service facilities with general obligation bonds, the bill diminishes
the County's flexibility to fund other categories of projects that the Courity may
determine serve a public function. The events of this spring have illustrated that the
existing provisions of Chapter 20, combined with restrictions on private use and
private payment in the IRS regulations, provide ample limits on the uses of General
obligation bond proceeds. Consistent with prior discussions with the HHS
Committee and full Council, IRS restrictions on the use of tax-exempt bond proceeds
have proved to be even more restrictive than existing Chapter 20 provisions, limiting
the use of general obligation bonds even on County-owned buildings when there is
private use and private payment in violation of the IRS regulations on tax exempt
bonds.
The County Executive shares the Council's belief that general obligation borid
proceeds should be used judiciously. Notwithstanding the limitations noted above,
. the Council can limit undesired uses through the adoption of the capital budget and
bond authorization ordinances.
I urge the Council to oppose Bill 34-10 as its good intentions are far
outvveighed by inherent problems, specifically unnecessary limitations on the County
Council's legislative discretion, additional hurdles to achieving the County's goals,
and specific conflicts with existing law and the approved CIP.
Thank you for your time.
June 22,2010
Althou~1.
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MCKENNON SHELTON
&
HENN
LLP
401 East Pratt Street, Suite 2315
Baltimore, Maryland 21202
(410) 843-3500
(410) 843-3501
(fa,;.)
lVIEMORANDUM
To:
From:
Date:
Re:
Jennifer Barrett
Glenn Wyman
Paul
D.
Shelton
June 11,2010
Use of GO Bond Proceeds
Bill No. 34-10 was recently introduced in the County Council of Montgomery
County, Maryland
(the
"County Council"). The following summarizes the effect of
Bill
No. 34-10.
Article IV of Chapter 20 of the Montgomery County Code (the "Code") sets fort11
terms and conditions pursuant to which Montgomery County, Maryland (the "County")
can borrow money to finance public facilities when the County is authorized by law to
borrow on its full faith and credit. The County must evidence such borrowing by the
issuance of the County's general obligation serial maturity bonds. Bonds authorized by
Article
rv
of Chapter 20 of the Code constitute an irrevocable pledge of the full faith and
credit and unlimited taxing power of the County to the payment of the maturing principal
and interest on such bonds as and when the same respectively mature. The County
Council must authorize the issuance of County general obligation bonds together with the
categories of public facilities authorized to be funded with the proceeds of such bonds.
Section 20-14 of the Code defines "public facilities" to mean, among other things, the
construction and improvement of (a) public school buildings and buildings for school
purposes,
(b)
public roads, sidewalks, free bridges and storm water drainage systems for
the County, (c) structures to house any of the functions of or for the use of the County
government or administration, (d) transit facilities, (e) off-street parking lots and facilities
for the parking of automobiles and other vehicles within certain designated parking lot
districts,
(t)
pubLic housing and housing for persons of low, inoderate or eligible incomes
and (g) water systems and facilities and sewerage systems and facilities.
In
each portion of the definition of public facilities there are requirements
that
the
project be (a) a public function,
(b)
or under the control of the County, (c) or used by the
County or for a function that is typicall'y a governmental function such as transit facilities
and .mass transit. In addition to these definitional restrictions, the County Council must
enact an ordinance to authorize the debt and the projects .must be in the capital budget
with proper appropriation.
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Memo to Jennifer Barrett, et aL
June 9,2010
Page
2
Bill No. 34-10
would amend
the
definition
of public facilities
to,among other
things, exclude the
acquisition,
modernization, construction or improvement of any
privately
owned building
or facility whether
oWlled
by a for
profit
or nonpro.fit entity.
This exclusion
would
not
apply
to any .fire,
Tescue
and emergency medical serv.ice facility
subject to
Chapter 21 of the Code.
The
Bill
does
not
provide
an exception
for agriculture
easements
or
r<u;ade
easements. This legislation as the most current
would overturn
the
recent amendment that allowed
agriculture
easements to be
purchased
with general
obligation debt. A literal reading of the proposed
language
would bar the
County
from
acquiring
any
building or facility privately owned by a
for-profit
or non-profit entity
using
general obligation debt.
Section 20-14 of the Code generally permits
the
County to use the proceeds of
general obligation bonds for projects
that
serve a public purpose. The enactment of Bill
No. 34-10
'would
generally preclude the County from
using
proceeds of general
obligation bonds to finance and refinance County projects involving the extension,
acquisition, improvement. construction
or
any building or facility owned
by
a private for­
protit
or non-profit even if
the
County \vishes to acquire a facility to serve a
public
purpose or that involve government utilized facilities. \-\-'bile the word «facility" is not
defined, its common meaning could apply to most of the capital facilities that are
acquired \vith the County's bonds since most are acquired from private parties.
It
could
be applied to prevent the County from acquiring office buildings, park land, equipment,
facade easements and agriculture easements from private entities. As a result, the County
would lose flexibility regarding the funding of projects that serve a
public
function if the
project entails
the
acquisition,
construction
or improvement of
a
privately owned building
01'
facility. Although Bill No. 34-10 preserves the ability to finance certain fire" rescue
and emergency medical
service
facilities with general obligation debt, Bill No. 34-10
diminishes the County's flexibility to fund other
categories
of projects that the County
may detennine serves a public function.
The Council can currently limit
the use
of general obligation debt through· the
adaptation of the
capital
budget
and
bond authorization ordinances. The enactment
Bill 34-10 would greatly restrict the current use of general obligation and limit the
County from exen-'1sing its legislative discretion.
or
The proposed Bill would force the County to attempt to fund acquisitions from
private
entities
with
debt
that is not supported
by
its
fun
faith and credit. This wHl likely
result
in
lower ratings from the national rating agencies and higher borrowing costs for
the County. Since most capital acquisitions are from private entities and given the
ullcertainty
of what is or is not a facility,
it
is likely that a
substantial
amount of the
County's capital program will be
subject
to the higher borrowing costs and lower ratings.
We are not aware of any
Maryland
jurisdiction that
has
a similar restriction on the
use of general obligation debt for the acquisition, construction, or improvement of
Memo conceming Bii! No 34-10 (04061810-8),DOC
(j)
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Memo to Jennifer Barrett, et
aI.
June 9, 2010
Page 3
buildings and facilities owned by private persons. The most restrictive provision is the
prohibition on the acquisition of privately owned facilities. We recommend that the
County carefully consider the implication of this
restriction.
\.Iemo concerning Blil No 34-10 (0406181 0-8).DOC
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c ·
H ·
I Centers Inc.
Supporting people with disabilities since 1948
Harold Blank
D.D.S.
President
Alan Lovell, Ph.D.
Chief Executive Officer
June 22,2010
TestlmonyofCHI Centers with Regard to Bi1134-10
CHI Centers is a non-profit agency serving over 1OOOind,ividuals with developmental
disabilitie~.
Currently CHI Centers operates day prograrqs from five different facilities
and twenty-eight residential sites. Of the five day prograir;t facilities, CHI Centers leases
one from a commercial operation, owns one, and leases three from the Montgomery
County Department of Facilities that are former elementary schools that have been closed
by the Montgomery County Board of Education.
CHI Centers has had a good trackrecord of obtaining state of Maryland bond funds either
.
.
through the legislative bond process or through the bond program administered by the
Department ofHealth and Mental Hygiene. County funds and agency fund raising
dollars were used to match the state of Maryland bond funding. CHI Centers has
completely renovated the former Lone Oak Elementary School and the Hillandale
Elementary school. Important aspects of the renovation projects were to bring the
building up to current county and state building codes, making need adaptations for
people with disabilities and creating an environment for adults rather than for children.
CHI Centers has obtained 1.6 million dollars in state bond. funds to renovate the third
county-owned facility known as the former MacDonald Knolls Elementary School
located in Silver Spring. CHI Centers will lose $200,000,ofthese funds if they are not
matched and committed in fiscal year 2011. CHI Centers requested funding from the
county in its fiscal year 2011 budget which was partially granted by the County
Executive and was not supported by members ofthe County Council.
As CHI Centers understands the legislation being created in Bill 34-10, renovation
funding would be restricted with the use of county bond funding. CHI Centers would
like to see some means where funds can still be obtained from the county to make ne'eded
renovations and repairs to both day program facilities and residential facilities that are
either owned by the nori-profit corporation or have a long term lease. The state of
Maryland determines that a long term lease is at least fifteen years.
In
today's tight economy, non profits across our county are having a very difficult time
just with their operating budgets. Many difficult decisions are being made to reduce
operations without impacting on the people that are served by the non-profit agency.
With both the state and the county, bond funding is a separate funding stream and cannot
be used for operating purposes. State and county funds receIved for operating purposes
cannot be used for capital expenses. Therefore CHI Centers would request a mechanism
be developed to assist non-profit with needed renovation projects.
10501 New Hampshire Avenue, Silver SprL.'1g, MD 20903-1122
TeI301.445.3350 Fa..x
301.439.8117
TDD 30lA39.5366
www.C:E-HCenters.org Emaillnfo@CHICenters.org
The RehabilitatiOI1 Accreditation Commission (CARFj
Un.ited
Way Agency
#8059
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Cost Sharing: MCG -- No. 720601
Category
Subcategory
Administering Agency
Planning Area
Culture and Recreation
Recreation
Recreation
Countywide
Date Last Modified
Required Adequate Public Facility
Relocation Impact
Status
June 04, 2008
No
None.
On-going
EXPENDITURE SCHEDULE ($000)
Cost Element
Planning. Design and Supervision
Land
Site Improvements and Utilities
Construction
Other
Total
Current Revenue: General
G.O. Bonds
Economic Development Fund
Long-Term F-lOanclOg
Total
Total'
Thru
FY07
Est.
FY08
300
Total
I
FY12
FY09
FY.10
FY11
6 Years
O!
Q
L
0
01
01
01
0
01
01
O!
0'
Q'
0
Q1
- 01 ..
·0
01­ -
·oT
0
·6,8751 5,475
!
1,400
i
0
6,875 [ 5,475 1
1,400 1
0
01
I
I
882
0
4
0
8,419
9,305
582
0
4
0
0
586
I
FY13
0
0
01
0
0
0
1 544
O.
I
Beyond
FY14 '6 Years
0
0
0
0,
0
0
.
0
0
a
0
0
0
0
0
0
0
0
1,844
FUNDING SCHEDULE ($000)
1,404
1
140 1
1,925
0
o'
01
01
0
0
0
0
0
0
0
0
0
0
01
3,915
L
586
Q
140 1
1,400
I
3,850,
9,305 I
0
0
586
1,844
~
6,815
1,925 1
0
0
01
01 1,400
3,550
0
5,475
I
1,400
0
0
0
0
a
O!
01
01
°
0
DESCRIPTION
This project provides funds for the development of non-government projects in conjunction with public agencies or the private sector. County
. participation leverages private and other public funds for these facilities. Prior to disbursing funds, the relevant County department or agency and
the private organization will develop a Memorandum of Understanding which specifies the requirements and responsibilities of each.
COST CHANGE
Increase represents County's contribution to match the State's funding for the music venue in Silver Spring and the County's participation in CASA
of Maryland, CHI Centers, Jewish Council for the Aging, Montgomery General Hospital, YMCA of Metropolitan Washington· Youth and Family
Services Branch, Boys and Girls Club of Greater Washington, Institute for Family Development - Centro Familia, Nonprofit Village, Inc., and Aunt
Hattie's Place.
JUSTlFICATlON
The County has entered into or considered many public-private partnerships, which contribute to the excellence and diversity of facilities serving
. County residents.
OTHER
For FY09, County participation is anticipated for the following projects in these amounts:
CASA of Maryland, Inc: $150,000
CHI Centers: $50,000
Jewish Council for the Aging: $250,000
Montgomery General Hospital: $500,000
YMCA of Metropolitan Washington and Youth and Family Services Branch: $200,000
Boys and Girls Club of Greater Washington: $250,000
Institute for Family Development Inc., doing business as Centro Familia: $75,000. The organization must demonstrate to the County's satisfaction
that it has commitments for the entire funding needed to construct the project before the $75,000 in County funds can be spent.
Nonprofit Village, Inc.: $200,000
Aunt Hattie's Place: $250,000. FY09 funds for this item must only be spent on construction. Also, the organization must demonstrate to the
County's satisfaction that it has commitments for the entire funding needed to construct the project before the $250,000 in County funds can be
spent. Disbursement of FY09 County funds is conditioned on the owner of the property giving the County an appropriate covenant restricting the
use of the leased property to a foster home for boys for a period of ten years from the time the facility commences to operate as a foster home.
MUSic venue in Silver Spring: $3.550,000 ($150,000
was
expended out of the Economic Development Fund in FY07 for a feasibility study for a
music venue, and $300,000 will be expended in FY08, bringing the total County match to the State to $4,000,000)
,APPROPRIATION AND EXPENDITURE DATA
1
Date
First A ro nation
: Firsl Cost
Estimate
Current
$co
e
Last
FY's Cost
Estimate
COORDINATION
Private organizations
State of Maryland
Municipalities
Montgomery County Public Schools
Community Use of Public Facilities
Department
of
General Services
Department of Economic Development
FY06
FY08
Appropriation Request
FY09
2,325
i
i-A-p-'-pro-pn-·a-ti-on-Requ-'--e-st-E-S-t.---FY-1-0---=-1'"':,4-=-00::-1
, Supplemental Appropriation Request
i
Transfer
0
0
5,440
1,682
3,558
Cumulative Appropriation
Expendit'Jres
i
Encumbrances
, . Unencumoered Balance
I
Partial
Closeout
Thru
Partial Closeout
FY06
0
0
I
J,
17-7
I
New Partial
Closec~o.:;.ut,--
_ _ _
;..FY.:.O;..7_ ___
0-i.
i
Te>tal
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Cost Sharing: MCG -- No. 720601 (continued)
For FY1 0, County participation is anticipated for the fellowing projects in these amounts:
Adventist HealthCare: 5;'1,400,000
Funds for the music venue in Silver Spring will not be expended until an agreement is reached between the development partners and the County,
which includes Council review and approval of the general business terms. The County will own the facility and will fund its contribution with
short-term financing proceeds consistent with the terms of the lease agreement with the operator of the music venue.
The Adventist HealthCare Project provides incentive funding to assist with the construction of a medical office building at 8702 Flower Avenue in the
Long Branch community. With the announced departure of Washington Adventist Hospital from Takoma Park, construction of this site underscores
the County's commitment to access to health care in the Long Branch area. The County initially committed to fund the project with $700,000 for
each of the three years from FY07-FY09 for a total of 52,100,000. During FY08, the project was substantially delayed due to legal proceedings.
The previously programmed $1,400,000 has been"deferred to FY10 and the'additional $700,000
will
be programmedin-Iater-years:--Based·on·the- .
current project time line, the County's funding SChedule will not have any material impact on the project. EDF funds will not be expended until there
is an agreement between Adventist HealthCare, the property owner, and the County Executive which includes specific performance requirements.
The requirements should address the length and terms of the lease; public use of the garage, the use of the building for medical-oriented
businesses, and other EDF requirements including fiscal analysis and job generation. OED, the property owner, and Adventist HealthCare will keep
the Council informed of modifications to the project and the status of litigation.
The Old Blair Auditorium Project (a
privat~,
non-profit organization) received State bond bill funding of $600,000 for the renovation of the Old Blair
High School Auditorium. The County is providing $190,000 as a partial match for the State funds with $50,000 in current revenue in FY06-FY07 for
DPWT to develop a Program of Requirements and cost estimate for the project, and a programmed FY06-FY07 bond funded expenditure of
$140,000 to pay for part of the construction. The Council will consider appropriating the $140,000 after: a) facility planning is complete and the full
cost of the renovation is known; b) the County, MCPS, and the Old Blair Auditorium Project resolve issues about management of the renovation
project, operation of the facility, and parking for the facility; and cj the Old Blair High School Auditorium project raises the remaining $410,000
required to match the State funding. MCPS has included funds for a feasibility study for the auditorium in its Facility Planning project (No. 966553).
During the study, MCPS will work with the community to develop a new program of requirements for the auditorium.
OTHER DISCLOSURES
• A pedestrian impact analySis will be performed during design or is in progress.
17-8
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MEMORANDUM
May 13, 2010
TO:
FROM:
SUBJECT:
Health and Human Services Committee
Peggy
FitZgerald-Bii~uncil
Grants Manager
State and Other Jurisdictions/ Use of General
Obligation Bonds
CIP Amendment: Cost Sharing: Montgomery County Government
State Match Community Grants
On Apri121 the Committee reviewed the County Executive's recommended nonprofit
capital project Community Grants contained in the Cost Sharing CIP and the Executive's
proposed use of General Obligation bonds for three projects (CHI Centers,
Ivymount School, and Olney Theatre). Councilmember Trachtenberg asked for follow-up
information on the State of Maryland's criteria and practices for State bond bills for
nonprofit capital projects, and
also
whether other local jurisdictions in Maryland use
General Obligation bonds to fund nonprofit capital projects.
State of Maryland State Bond Bills
I have attached portions of a document,
Guidelines for the Submission ofIndividual Bond
Bill Requests to the Maryland General Assembly,
prepared by the Dept. ofLegi.slative
Services. This document provides guidance and instructions to applicants seeking State
Bond Bills. The complete document can be found at:
http://mlis.state.md.us/Other/Bond bill/Bond Bill Submission guidelines.pdf.
Highlights from
the document include the following information:
Basic Eligibility Criteria:
• Project must be capital in nature. Can include land acquisition as well as
construction.
• Project must have a useful life of 15 years. A group leasing land or a structure
related to a proposed capital project must demonstrate that the lease will extend
for 15 years or more.
• Project must not be used for religious purposes.
• Certain structures may be subject to historic easement
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Evaluation Criteria include:
• Has the organization explored alternative funding sources, including other State
capital grant and loan programs?
• Vlhat priority does the County delegation place on the project?
• The organization should provide matching funds for the project. The specific
bond bill may require either a "hard" (cash
in
hand) or "soft" (real property, in­
kind contributions, or funds expended for project prior to bond bill effective date)
match. The required match is typically equal to the State contribution, but can be
greater than, equal to, or less than the State contribution.
• Organizations showing a history of adequate fundraising or documentation of
adequate future funding are given priority, i.e., the 'readiness' factor.
• Local projects serving a wide spectrum of the community or the State as well as
an important public purpose are preferred.
Staff also spoke with staffin the State Dept. of Budget and Management who indicated
that there are several references in State law to capital grant programs administered by
State agencies to provide grants to local governments and non-profit organizations. In
addition, the general authority in the State Finance and Procurement Article describes the
powers of the General Assembly to borrow money for public purposes, issue State bonds,
and discusses the content of the Capital Budget, referencing "other special projects." The
other special projects category refers to local government and non-profit capital projects
funded by the State. Each bond bill is submitted as legislation and bas a finding of a
''public purpose" in authorizing the appropriation to a private entity.
Practices in other Maryland jurisdictions:
According to Finance Department
staff
they surveyed local jurisdictions, bond counsels,
and firumcial advisory finns conducting business in the State. They contacted ten local·
government officials, three bond counsels, and a few financial advisory finns.
The Finance Department notes that only a limited number oflocal jurisdictions regularly
issue general obligation debt so the universal of potential respondents is small.
Below are some of their general [mdings.
"Local jurisdictions, not including the State, generally do not use general obligation
proceeds to fund capital projects of private, non-profit or for-profit entities. Harford,
Fr~derick,
Prince Georges, Charles, Anne Arundel, and Carroll counties are included in
that group. There are some exceptions, including the State. The State gives its general
obligation bond proceeds to private entities as part of it annual grants program. This is
done through the State's "Bond Bills" and usually involves matching funds on behalf of
2
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the grantee. The City of Baltimore also gives general obligation money away under its
economic development program. Charles County and St. Mary's County continue to
fund their hospitals and nursing homes (typically non-profit entities) with bonds backed
by a general obligation pledge.
Most local jurisdictions facilitate funding private entities via their conduit bondJeconomic
development bond programs. Via these programs, the county issues
tax~exempt
bonds
and lends the proceeds to the private entity.
In
almost every fmancing, the private entity
is a non-profit, but there are some very limited opportunities to lend to for-profits.
Montgomery County has had a conduit/economic development bond program for many
years and issued bonds and lent the proceeds to. a range of entities such as Holy Cross
Hospital, Riderwood Village, Sidwell Friends School, and Imagination Stage. The State
has a similar program run by MHHEFA (Maryland Health and Higher Education
Financing Authority). Under such programs, the conduit debt is an obligation ofthe
borrower and not the County or State; therefore, the conduit debt does not compete with
the County or State's ability to issue its own debt."
Attachment: Bond Bill Submission Guidelines (pp.
1~3) ©6~12
F:\Communlty Gl"ant:;\FYl I Grants lnformaiionlcosl sharingfOllow up md bond bill crileria.tioc
3
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Guidelines for the Submission of
.
Individual Bond Bill Requests to the
Maryland General Assembly .
Department of Legislative Services '
Office of Policy AIlalysis
Annapolis, Maryland
November 2007
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=
For further informatioD concerning this document contact:
Library and Information Services
Office ofPolicy Analysis
Department ofLegislative Services
90 State Circle
Annapolis, Maryland
21401 '
Baltimore Area:
410-946-5400.
Washington'Area:
301-970-5400
,
Other Areas:
1-800-492-7122,
Extension
5400 '
TDD:
410-946-5401 .301-970-5401
Maryland Relay Service: 1
~800-735-2258
E-mail: libr(a).mlis.state.md:us
Home Page: mlis.state.md.us
The Department of Legislative Services does not discriminate on the basis of race, color, national
origin, sex, religion, or disability
in
the admission or access to
its
prograrnsor activities.
The
department's Information Officer has been designated to coordinate compliance with the
nondiscrimination requirements contained in Section
35.107
of the United States Department of
Justice regulations. Requests for assistance should be directed to the Information Officer at the
, telephone numbers shown above.
ii
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Introduction
The
Guidelines for the Submission of Individual Bond Bill Requests to the Maryland
General Assembly
is published by the Department of Legislative Services (DLS) to assist those,
requesting funding from the General Assembly for capital projects through the submission of
bond bills. The manual provides a summary of the basic eligibility requirements and evaluation
criteria, the legislative process, and the schedule for bond
bill
consideration by the General
Assembly.
'
Before a bond bill may be scheduled for a hearing, the potential applicant must provide
additional information by preparing a "Bond Bill F'act Sheet." These fact sheets provide
important information concerning an organization's grant
requ~st
- information' required at the
time of the bond bill hearing. Since the start of the
2005
session, DLS staff has coordinated the
"Bond Bill Fact Sheet" process. The manual provides an outline of the DLS process
as
well
as
copies of all forms necessary for a bond bill to be scheduled fora hearing. This manual is also
available in electronic format at
http://mlis.state.md.us/bondpUlsub.htm.
Comments and suggestions directed at improving future editions of the
Guidelinesfor the
Submission ofIndividual Bond Bill Requests to the Maryland General Assemb£v
are welcome.
iii
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Contents
Introduction·..........
~.......
........................................... ...................................................................
Guidelines for the Submission of Individual Bond Bill Requests to the Maryland
General Assem bly
.
Overview of State Funding of Local Projects Bond Bills.........................................................
Eligibility ................................................................ .................. .... ...................................
Strategies for Achieving Success ..:.......... :............................................................. ,...........
Process .............................................................................................................................
Instructions.................................................. ;.............................................................................
Applicant's Proposal ............................
~
...........................
~...............................................
SponsorshiplDraftinglIntroduction ofthe Bill.................................................................
Department of Legislative Services Assistance ...............................................................
Approval Notifications ..............
~......................................................................................
1
1
2
3'
5
5
5
6
6'
iii
Attachment I
Bond Bill Project Request Fonn.........................................................................
8
Attachment II
Sample Senate Bill....................................................................................................................
Sample House Bill .....
~...............................................................................................................
9
11
Attachment
ill
Instructions for Completing the State of Maryland Bond Bill Fact Sheet................................. 13
Introduction ..................................................................................................................... :.
13·
Explanation of Fields ....................................................................................................... 14
State of Maryland Bond Bill Fact Sheet ................................................................................... 16
Attachment IV
State Capital Grant and Loan Programs: Potential Sources of Funding for Bond Bill
Requests .................................... : ..............................................................
~..
21
v
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Guidelines for the Submission of Individual Bond Bill
Requests to the Maryland General Assembly
The capital budget is funded through several sources. These include bond bills, general
funds, special funds, and federal funds. Bond bills include the Maryland Consolidated Capital
Bond Loan, revenue bonds, and legislative initiatives.
Legislative· initiatives are used to fund individual bond bill requests. They are bond
authorization bills filed by members of the General Assembly to support specific local or
non-state-o\\ined capital projects. These projects include, but are not limited to, health facilities,
historic preservation projects, museums, and sports and recreational facilities. Legislative
initiatives are not submitted as part of the Governor's capital budget. However, as they have an
impact on State finances, the Department of Legislative Services COLS) reviews them in
accordance with procedures established by the Governor and the General Assembly.
The following instructions and attachments provide guidelines to applicants seeking State
grantS through the submission of individual bond bills.
.
Overview of State Funding. of Local Projects Bond Bills
This document is intended to provide basic information on eligibility and priority for
State funding of local capital projects (bond bills). Any group may request funding from the
General Assembly for a capital project. As a practical matter, the number and type of projects
funded by the General Assembly is limited - requests for funding greatly exceed available
resources each year. In some years, the total amount requested for local capital projects has
exceeded by 10 times the available resources. ThUS,. after ascertaining a project's· basic
eligibility, the General Assembly must assess the project's level of priority among the total
number ofprojects requested.
Eligibility
:.'.
A
project
must
be capital in nature to be eligible for bond
bill
consideration.
A
capital project deals with land andlor structures. Capital projects do not include items
such as employee salaries, bep.efits, expendable equipment (automobiles, for example), or
operating costs.
1
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A project must have a useful life of 15 years. Items such as automobiles and
computers do not have a useful life of 15 years. A group that is leasing land and/or a
structure relating to the proposed capita) project must demonstrate that the lease will
extend for 15 years or more.
.
A project must not be used for religious purposes. For example, State funds may not
be used to construct a building in which religious services, Sunday school, or religious
.education will
be
held, regardless of other non-religious uses planned for the building.
Certain structures may be subject to an internal and/or external historic easement.
The applicant must grant the easement to the Maryland Historical Trust as a condition for
State funding.
.
Strategies for Achieving Success
After the General Assembly evaluates the eligibility of a project, ·all of the projects are
evaluated based upon several criteria, including the following:
Aljernative Funding
Groups should show that they have explored alternative sources of funding. In addition
to requesting alternative funding from agencies, corporations, etc;, a group may be asked to show
whether a potential revenue source, such as entrance fees, membership fees, or concession profits
could cover the cost of the capital project. Please refer to Attachment IV of this document for
information on potential alternative sources of funding for bond bill requests through State
capital grant and loan programs.
Delegation Support
The General Assembly will consider the priority a county delegation places upon a
project.
Matching Funds
Groups should provide a matching fund for their projects. Matches may be classified as
"hard" or "soft." A "hard" match is "cash in hand" and may include money from any source,
other than State sources. A "soft" match MAYbe made up of real property, in-kind
contributions, (donated services or materials) or funds expended for the project prior to the
effective date of the bond bill, June 1 of the year the bill is passed. A "soft" match may consist
of a combination of the abovementioned elements, including cash.
A matching fund NrAY also be greater than, eqwil to, or less than the State contribution,
though at least an equal match is preferred. Among those projects with unequal matching funds,
an·applicant providing an unequal matching fund that shows that
at
the
time afthe request,
the
group holds or
has
letters of commitment totaling 25 percent.or more of the matching fund will
be given priority.
2
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Project Readiness
Groups will be required to supply the General Assembly with 'adetailed funding analysis
prior to the hearings on their bills. Projects that show a history of adequate fundraising or groups
that can provide documentation of adequate future funding
(e.g.,
letters of commitment) will be
given priority.
State or Local Purpose
Local projects that serve a wide spectrum of the community or the State as well
important public purpose are
p~eferred.
as
an
Process
Sponsors,
Organizations seeking funding must contact a senator and a delegate to sponsor a bond
bill that requests funding for their project Bond bills must be introduced in both the House and
the $enate, known as cross-files,. so organizations must arrange for a sponsor in each house.
Required Information .
DLS needs certain information before
draft~g
a bond bill. The "Bond Bill Project
Request Form" identifies the required information and is available on the Maryland General
Assembly web site at htip:llmlis.state.md.uslbondbillsub.htrn.
An
organization requesting
funding should ensure that their sponsors have the required information when their sponsors
request that a bond bill be drafted
Bond bills must contain certain technical information to legally permit funds to be
disbursed. Therefore, after DLS drafts a bond bill, the sponsor and requesting organization
should refrain from altering the language in the bilL If a change is necessary, please' contact
DLS at
(410)946-53501
(301)970-5350 to request the change.
The most important form is the "Bond Bill Fact Sheet." This form provides background
information needed by the budget committees at the time of the bond bill hearings. Legislators
use this information as they make their funding decisions and the failure to complete and submit
a Fact Sheet may result in the Legislature not funding the bond bill project request. After DLS
drafts a bond bill, the applicant will receive an email from DLS that provides a
link
and access to '
the applicant's specific Fact Sheet for completion. It is important that the applicant retain the
DLS email as the provided link can be used at any time by the applicant to gain access to their
Fact Sheet up until the time that it is formally submitted by the applicant through the
prov~ded
toolbar.
Applicants
should
ensure
that
they
can
receive
email
from
bondbillapP(wl\'lLIS.state.md.us.
Tne
fact sheet form and instructions for completion are
provided as a sample (Attachment
Ill).
3
"
\J:t:!
......
1j)
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AMENDMENT
To Bill 34-10, Finance
Public Facilities
Private Projects
BY COUNCILMEMBER LEVENTHAL
Beginning on page
1,
line
1,
change Sections 20-14 and 20-15 to read:
1
2
Sec.
1.
follows:
[[Section]] Sections 20-14 [[is]] and 20-15 are amended as
3
4
20-14. Definition of "public [[facilities]] facility."
As used in this Chapter,
public [[facilities]] facility
means:
(a)
The construction, reconstruction, improvement, extension, alteration,
repair, purchase,
conversion~
5
6
7
and modernization of any public school
~~
[[buildings]] building or any [[buildings]] building used for
8
9
school purposes, [[including any such County-owned building leased
to a private entitv.]] including the [[sites]] site therefor, the cost of
acquiring any such [[buildings]] building or [[sites]] site,
architectural and engineering services, including preparation of
[[plans, drawings and specifications]]
10
11
12
13
Pilln,
drawing, or specification
for such [[schools]] school or the conversion or modernization thereof
and the development of the grounds, and all customary permanent
appurtenances and recreational and pedagogical equipment for such
[[schools]] school;
14
15
16
17
18
19
*
(c)
*
*
The construction, reconstruction, extension, acquisition, improvement,
enlargement, alteration, repair and modernization of any [[structures]]
building or structure . that is· or will
be
owned by the "Count)for
buildirig or structqre used to house any [[of the functions]]
[[or for the use of the county]]
County government
20
21
22
ally
of
[[or
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23
24
25
administration]], especially any health [[clinics]] clinic, rescue
[[squads]] squad, fire engine [[houses and]] house or police
[[stations]]
stati~:m,
[[airports and]] airport or landing [[fields]] field,
26
27
[[parks and]] park or recreational [[facilities]] facility, or any
combination of the foregoing, including the acquisition and
development of [[sites therefor]] any site, [[the]] any architectural and
engineering services [[incident
thereto]]~
28
29
30
and the acquisition and
installation of any necessary [[furnishings]] furnishing, fire fighting
and rescue squad
[[therefor]] ;
equipment~
31
32
33
34
and fixed permanent equipment
*
(g)
*
*
The planning, acquisition, construction, improvement, repatr.! and
extension of any water [[systems and facilities]] system or facility and
sewerage [[systems and facilities]] system or facility; [[and]]
35
36
37
(h)
The purchase of agricultural easements as defined in Article 3 of
Chapter 2B [[.]]; and
38
39
40
ill
The purchase of facade easements necessary to implement a
community revitalization project.
41
42
43
44
45
46
47
[[However,
public
facilities
does
not
include
the
construction,
reconstruction, extension, acquisition, improvement, enlargement, alteration,
repair, or modernization of any building or facility owned
.Qy
~
private for-profit or
non-profit entity, excluding any fire, rescue, and emergency medical service
facility subject to Chapter 21.]]
20-15. Borrowing money and issuing bonds-Authority.
W
[[With regard to]] For any County borrowing authorized by law on the
full faith and credit of the County to finance the public facilities
defined in [[the preceding section]] Section 20-14, the County must
48
49
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50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
evidence that borrowing or indebtedness by [[the issuance of its]]
issuing general obligation serial maturity bonds. Subject to the terms
and conditions in this Section, the County Executive must determine
the terms and conditions of any such bonds, the interest payable
thereon.1 and the advertising for their sale.
au
[[Any such]] General obligation serial maturity bonds may be issued
[[under the authority of this division and]] for the purposes
enumerated in [[the preceding section]] Section 20-14 at any time,
within the limitations provided by law. Bonds must not be used to
fund any project that is not a public facility as defined in Section 20­
[[All]] Any action taken [[pursuant to]]
~~
this Article must be
[[taken]] by order of the County Executive. The County Executive
must [[cause]] send a correct copy of every such order to [[be filed
with]] the Clerk of the County Council, who must keep a permanent
record of [[all of such orders; and certification]] each order.
Certification by the Clerk is evidence of the authenticity of [[any
such]] each order.
f:\law\bills\1034 finance - public facilities - private projects\leventhal amendment 3.doc
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Burtonsville Community Revitalization - No. 760900
Category
Subcategory
Administering Agency
Planning Area
Community Development and Housing
Community Development
Housing
&
Community Affairs
Fairland-Beltsville
Thru
FY09
Est.
FY10
Date Last Modified
Required Adequate Public Facility
Relocation Impact
Status
Total
6 Years
January 09, 2010
No
None.
On-going
Beyond
6 Years
EXPENDITURE SCHEDULE
($OOO)
Cost Element
Planning. Design. and Supervision
Land
Site Improvements and Utilities
Construction
Other
Total
Current Revenue: General
Total
FY11
FY12
FY13
FYi..
FY15
FY1B
FJ=:
62
885
0
62
I
0
158
0
0
140
100
398
665
1.
1~
01
3,755
155
0
600
190
0
945
180
0
600
300
0
1,080
180
0
300
400
0
880
150
0
300
400
0
850
()
0
0
0
0
0
0
()
0:
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
G.O. Bonds
I Total
1
3
4215
FUNDING SCHEDULE ($000)
0
0
01
0
0
1.080
9451
3.7551
621
3981
37551
9451
10ao
of
880
850
0
880
850
0
DESCRIPTION
This project provides for community revitalization in the Burtonsville area with primary focus on the commercial core. Project elements will mitigate
the
impact
of transportation improvement projects to buSinesses in the Burtonsville commercial area. The objective Is to support the existing small businesses and create
new opportunities for private investment, as well as, create a "village center" by improving the visual appearance of the area. project elements InClude
G ataway Signage, pedestrian lighting, streetface elements, acquisition of long-term fa,.ade easements and center signage.
COST CHANGE
Increase due
to
the addition of gateway signage, facade improvements. streetface elements and pedestrian lighting to the project scope.
JUSTIACATION
The project responds
to
concerns relating to changes in the community resulllng from population increases and the road realignment of US Rte 29 and MD Rte
198.
OTHER
Plans and Studies: M-NCPPC Fairland Master Plan In
1997:
Burtonsville Market Study
(2007):
the Burtonsville Legacy Plan.
OTHER DISCLOSURES
- A pedestrian Impact analysis will
be
performed durlng design or is in progress,
APPROPRIATION AND
EXPENDITURE DATA
Date First Appropriation
First
Cost
Estimate
Current Scope
Last FY's Cost Estimate
Appropriation Request
Appropriation Request Est
FYOg
FY11
($000)
COORDINATION
Department of Transportation
Maryland State Highway Admin!s tration
M-NCPPC
Maryland Department of the Environment
Department of Permitting Services
MAP
4,215
460
FY11
FY12
945
I
~ental
Appropriation Request
Cumulative Appropriation
1.0aO
0
0
See Map on Next Page
460
86
Expenditures
I
Encumbrances
Unencumbered Balance
Partial Closeout Thru
New Partial Closeout
FY08
FY09
;)74
0
0
I
,Tot3l Partial Closeout
0
I
I:)
I
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MONTGOMERY COUNTY CODE
Sec. 20-14. Definition of "public facilities."
As used in this Chapter,
public facilities
means:
(a)
The construction, reconstruction, improvement, extension, alteration, repair,
purchase, conversion and modernization of public school buildings or buildings for school
purposes, including the sites therefor, the cost of acquiring any such buildings or sites,
architectural and engineering services, including preparation of plans, drawings and
specifications for such schools or the conversion or modernization thereof and the development
of the grounds, and all customary permanent appurtenances and recreational and pedagogical
equipment for such schools;
(b)
The construction, improvement, repair, opening, relocation, grading, resurfacing,
widening, extension and drainage of all public roads, streets, highways and sidewalks in the
county now or hereafter maintained and operated by or under the jurisdiction of the county,
including the acquisition of necessary rights-of-way, the acquisition of equipment for highway
construction, maintenance and repair and planning and engineering services; the planning,
design, construction and reconstruction of free bridges constituting parts of such roads, streets or
highways; the planning, construction, repair and permanent improvement of any storm water
drainage systems necessary in the county;
(c)
The construction, reconstruction, extension, acquisition, improvement,
enlargement, alteration, repair and modernization of any structures to house any of the functions
of or for the use of the county government or administration, especially health clinics, rescue
squads, fire engine houses and police stations, airports and landing fields, parks and recreational
facilities, or any combination of the foregoing, including the acquisition and development of sites
therefor, the architectural and engineering services incident thereto and the acquisition and
installation of necessary furnishings, fire fighting and rescue squad equipment and fixed
permanent equipment therefor;
(d)
The construction, reconstruction, improvement, extension, enlargement,
alteration, conversion, modernization, repair, relocation, grading, resurfacing, widening,
draining, and acquisition (including the preparation of plans, architectural and engineering
services) of transit facilities which are defined to be all those matters and things utilized in
rendering mass transit service by means of rail, bus, water or air and any other mode of travel,
including without limitation, tracks, rights-of-way, bridges, tunnels, subways, rolling stock for
rail, motor vehicle, marine and air transportation, stations, terminals and ports, areas for parking
and all equipment, fixtures, buildings and structures and services incidental to or required in
connection with the performance of mass transit service; and any part of the county's share of
contributions agreed to be made under any contracts or agreements by the Washington Suburban
1
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MONTGOMERY COUNTY CODE
Transit District to the capital required for the construction or acquisition of transit facilities (as
defined in this subsection or as may be defined in chapter 870 of the Laws of Maryland of 1965,
as the same may be amended from time to time) in the Washington metropolitan area, as
provided by chapter 870 of the Laws of Maryland of 1965, as amended from time to time;
(e)
The construction, reconstruction, improvement, extension, acquisition,
enlargement, alteration, repair, modernization, relocation, grading, resurfacing, widening and
drainage of off-street parking lots and facilities for the parking of automobiles and other vehicles,
within and for the parking lot districts heretofore or hereafter established by law as the same are
described in section 60-1 of the Montgomery County Code as amended from time to time,
including the acquisition and development of sites therefor, the architectural and engineering
services incident thereto and the acquisition and installation of necessary furnishings and fixed
permanent equipment therefor;
(f)
The planning, acquisition, construction, improvement, repair and extension of
facilities, including the sites therefor, for public housing or housing for persons of low, moderate
or eligible incomes, as defined pursuant to law;
(g)
The planning, acquisition, construction, improvement, repair and extension of
water systems and facilities and sewerage systems and facilities; and
(h)
The purchase of agricultural easements as defined in Article 3 of Chapter 2B.
(Mont. Co. Code 1965, § 2-111; 1968 L.M.C., Ex. Sess., ch. 2 § 1; 1971 L.M.C., ch. 23, § 1;
1974 L.M.C., ch. 39, § 1; 1975 L.M.C., ch. 13, § 1; 1975 L.M.C., ch. 16, § 1; 2010 L.M.C., ch.
14, § 1.)
Editor's
note-The Washington Suburban Transit District Act is contained in Appendix
N to this Code.
Sec. 20-15.
Borrowing money and issuing bonds-Authority.
With regard to any County borrowing authorized bylaw on the full faith and credit of the
County to finance the public facilities defined in the preceding section, the County must evidence
that borrowing or indebtedness by the issuance of its general obligation serial maturity bonds.
Subject to the terms and conditions in this Section, the County Executive must determine the
terms and conditions of any such bonds, the interest payable thereon and the advertising for their
sale. Any such bonds may be issued under the authority of this division and for the purposes
enumerated in the preceding section at any time, within the limitations provided by law.
All action taken pursuant to this Article must be taken by order of the County Executive.
The County Executive must cause a correct copy of every such order to be filed with the Clerk of
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­
the County Council, who must keep a permanent record of all of such orders; and certification by .
the Clerk is evidence of the authenticity of any such order. (Mont. Co. Code 1965, § 2-112; 1971 '
L.M.C., ch. 23, § 2; 1998 L.M.C., ch 24, § 1.)
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