Please bring the April 26 Worksession Packet to the Meeting.
..---~-------'
PHED Item 4
April 30, 2012
Worksession 3
MEMORANDUM
April 27, 2012
TO:
FROM:
SUBJECT:
Planning, Housing and Economic Development Committee
Robert H. Drummer, Senior Legislative Attorney
~
Worksession 3:
Bill 5-12, Administration - Small Business Navigator­
Established
Bill 5-12, Administration - Small Business Navigator - Established, sponsored by
Council President Berliner, was introduced on February 7, 2012. A public hearing was held on
February 28 and Planning, Housing and Economic Development Committee worksessions were
held on March 19 and April 26.
Background
Bill 5-12 would require the Executive to designate an employee in the Office of the
Executive or the Office of the Chief Administrative Officer as the Small Business Navigator.
Among other duties, the Navigator must:
(1)
advise the Executive, the Council, the Chief Administrative Officer, County
Department heads, the Planning Board, and any other appropriate government
agency, of any action needed to assist small businesses to comply with County
requirements and regulations;
(2) serve as primary point of contact between a small business and each County
department or agency that the small business must interact with;
(3) develop and maintain a database of information necessary for a small business to
comply with County requirements and regulations; and
(4) advise small businesses on how to comply with County requirements and
regulations.
March 19 PHED Worksession
Council President Roger Berliner attended the worksession along with the Committee
members. DED Director Steve Silverman, Peter Bang, DED, and Katie Knowlin, DED,
represented the Executive Branch. The Committee reviewed the Bill and discussed the potential
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fiscal impact. The Executive had not yet submitted a fiscal impact statement for this Bill. The
Committee decided to consider this Bill along with the budget review of the DED and DPS
budgets. The Committee did not vote on the Bill.
April 26 PHED Worksession
The Committee discussed the Bill with DED Director Steve Silverman. Mr. Silverman
said that the Executive generally supported the Bill if the Council appropriated funding for new
staff to implement it, but raised concerns over the requirement in the Bill that the Executive
designate an emp loyee in the Office of the County Executive to be the small business navigator.
The Executive supports adding the small business navigator to the Department of Economic
Development. The Committee also questioned the requirement in lines 19-21 of the Bill that the
small business navigator "serve as a primary point of contact between a small business and each
County department or agency that the small business must interact with." The Committee agreed
that funding for new staff would be necessary to implement the Bill.
The Committee asked Council staff to work with DED Director Silverman to draft
amendments that would address the issues raised at the worksession. Council staff worked with
Mr. Silverman to draft proposed amendments. The proposed amendments on lines 11-12, 19,
and 25-26 on the draft Bill at ©10-12 would address the concerns raised by Mr. Silverman at the
April 26 worksession. If the Committee recommends approval of the Bill, funding for the new
staff in DED would have to be put on the reconciliation list to implement it in FYI3.
This packet contains:
Bill 5-12
Legislative Request Report
Fiscal and Economic Impact Statement
Draft Bill 5-12
F:\LAW\BILLS\1205 Small Business Navigator\PHED 3 Memo,Doc
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1
4
5
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Bill No.
5-12
Concerning: Administration
Small
Business Navigator - Established
Revised: February 2.2012 Draft No.
Q
Introduced:
February 7.2012
Expires:
August 7.W!2: :. : 0:. .:.1: :.,3_ _ __
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-'-No::::.:.n..:.>;e'--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Berliner
AN
ACT to:
(1)
(2)
(3)
establish a program to assist certain small businesses located in the County;
require the appointment of a dedicated staff member to assist small businesses to
comply with County requirements and regulations; and
generally amend the law concerning small businesses.
By adding
Montgomery County Code
Chapter 2. Administration.
Section 2-25B
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 Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
5-12
1
Sec. 1. Section 2-25B is added as follows:
2-25B.
Small Business Navigator.
2
3
4
ill
Definitions.
As used in this Section:
Navigator
means the Small Business Navigator.
Small business
means
~
5
6
privately owned business that meets the
requirements of Section 11 B-65(a).
7
8
(Q)
Establishment
Qj
Program.
The Executive must create and administer
~
Small Business Assistance Program with
~
Small Business Navigator to
help small businesses comply with County policies and regulations.
(£1
9
10
11
12
13
14
Small Business Navigator.
The Executive must designate an employee
in the Office of the Executive or the Office of the Chief Administrative
Of~cer
as the Small Business Navigator.
Among other duties, the
Navigator must:
ill
advise the Executive, the Council, the Chief Administrative
Officer, County Department heads, the Planning Board, and any
other appropriate government agency, of any action needed to
assist small businesses to comply with County requirements and
regulations;
15
16
17
18
19
ill
serve as primary point of contact between
~
small business and
20
21
each County department or agency that the small business must
interact with;
22
23
24
25
ill
develop and maintain
~
database of information necessary for
~
small business to comply with County requirements and
regulations; and
ill
advise small businesses on how to comply with County
requirements and regulations.
26
o
f:\law\bills\1205 small business navigator\biIl5.doc
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Bill
No. 5-12
27
28
29
@
Reports.
On or before September
12
of each year, the Executive must
report to the Council on the activities of the Navigator.
Approved:
30
Roger Berliner, President, County Council
31
Approved:
Date
32
Isiah Leggett, County Executive
33
This is a correct copy ofCouncil action.
Date
34
Linda M. Lauer, Clerk of the Council
Date
f:\lawlbills\1205 small business navigator\bill 5.doc
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LEGISLATIVE REQUEST REPORT
Bill 5-12
Administration
-
SmallBusiness Navigator
-
Established
DESCRIPTION:
This Bill would require the Executive to appoint a dedicated staff
member to assist small businesses to comply with County
requirements and regulations.
Small businesses often have trouble understanding and complying
with County requirements and regulations. Currently, there is no
dedicated staff member available to help small businesses meet
County requirements.
To help small businesses comply with County requirements and
regulations.
CAO, DED Director, DOS Director
To be requested.
To be requested.
To be requested.
To be researched.
Robert
H.
Drummer, Senior Legislative Attorney, 240-777-7895
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\1205 Small Business Navigator\LEOISLATIVE REQUEST REPORT.Doc
f:\(aW\bills\1205 small business navigator\legislative request reportdoc
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ROCKVILLE, MARYLAND
MEMORANDUM
March 23, 2012
TO:
FROM:
Roger Berliner, President, County Council
Jennifer
A.
Hughes: Director, Office
Joseph F. Beach, DIrector, Department
ofFmanc~-
ofMa~agement ~d BUdg~~
\-i ....,...)
.J
SUBJECT:
Bill 5-12 - Administration -Small Business Navigator -Established
Attached please fmd the fiscal and economic impact statements for the above­
referenced legislation.
JAH:bh
c: Kathleen Boucher, Assistant Chief Administrative Officer
Lisa Austin, Offices ofthe County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
Alex Espinosa, Office of Management and Budget
Sonetta Neufville, Offices ofthe County Executive
Pam Jones, Office ofProcurement
Peter Bang, Department ofEconomic Development
Bryan Hunt, Office of Management and Budget
Angela Dizelos, Office ofManagement and Budget
Naeem Mia, Office of Management and Budget
Michael Coveyou, Department ofFinance
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Fiscal Impact Statement
Bill 5-12,
Administration - Small
Business
Navigator - Established
1. Legislative Summary
Bill
5-12 would require the Executive to appoint a dedicated staff member to assist small
businesses to comply with County requirements and regulations, and to serve as the
primary point of contact between a small business and each County department or agency
with which the small business must interact Small businesses often have trouble
understanding and complying
with
County requirements and regulations. Currently,
there is no dedicated staffmember available in the Offices of the County Executive to
help small businesses meet County requirements.
2. An estimate of changes in County revenues and expenditures regardless ofwhetber
the revenues or expenditures are assumed iu the recommended or approved budget.
Includes source ofinformation, assumptions, and methodologies used.
No change in County revenues is anticipated or assumed as a result oftbis bill.
AssUmed expenditures for one (1) new Manager II position and one
(l)
new Principal
Administrative Aide
(PAA)
to administer the program are shown in item 3 below. A .
senior-level position is necessary as the position is assumed
to
require at least ten years of
experience in working with small business finns.
This individual will advise the Ex.ecutive, the Council, the ChiefAdministrative Officer,
County Department heads, the Planning Board, and any other appropriate government
agency, of any action needed to assist small businesses; assess issues; receive complaints;
and, be the point of contact for a universe of about 30,000 small businesses in the
County.
The position will also need to coordinate with the Department ofEconomic
Development, Department ofPermitting Services, and the Office ofProcurement in
providing assistance
to
small businesses. The PAA position v.rill provide general
administrative support and assist with database development and maintenance.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Continued on next page
(New) lYianager
n
Full Year
Reference
Cost
First Year
FY13 at.8
FTE
$
83,200
2nd Year
FY141.0
FTE
$104,000
$
31,200
$
135,200
$
$
3rd Year
FY15
$104,000
$ 31,200
$135,200'
$
$
4th Year
FY16
S 104,000
$
31,200
$
135,200
5th Year
FY17
$
104,000
$
31,200
$
135,200
$
$
6th Year
FY18
$104,000
Salary
&
Wages ( c )
Fringes 30% ( c )
Sum (PCs)
OE -OTO(a)
OE - Ongoing ( b )
Subtotal->
$
104,000
$
31,200
$ 24,960
$ 108,160
$
$ 31,200
$
135,200
$
135,200
$
3,000
1,000
3,000
-
2,000
-
2,000
S
$
-
2,000
-
2,000
$
$
-
2,000
$
$
1,600
$
112,760
$
137,200
$137,200
$
137,200
$137,200
$137,200
I
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(New) Principal
Administrative Aide
Full Year
Reference
Cost
$
43,300
$
12,990
$
56,290
$
First Year
FY13 at.6
FIE
$
25,980
2nd Year
FY14.75
FTE
3rd Year
FY15
$
32,475
$
4th Year
FY16
5th Year
6th Year
m1
$
32,475
FY18
.$
32,475
Salary
&
Wages ( e)
Fringes
30010
(
c )
Sum (PCs)
OE-OTO(a)
OE - Ongoing ( b )
Subtotal->
Toi.'l1 Cost Estimate
$
32,475
$
$
$
$
32,475
$
$
$
$
$
7,794
2,000
750
9,743
9,743
9,743
$
$
9,743
$
$
9,743
$
33,774
$
42,218
$
42,218
$
42,218
$
42,218
$
42,218
$
2,000
750
$
$
750
$
750
$
~
750
$
750
750
$ 36,524
$149.284
$
42,968
~ 180~168
$
42,968
$180.168
$
42,968
180
1
168
$
42,968
$180~168
$
42,968
$180~168
( a) ne-time only office furniture, laptop
wi
docldng station, office phone costs, wireless data device.
O
( b) ffice phone, IT support, wireless data plan, miscellaneous office supplies, and mileage reimbursements.
O
( c) S
&
W and Fringes flatlined due to unknown future wage agreement, health care, retirement costs.
Notes: 0.8 FTE for the MJI position is assumed
:in
FY13 due
to
the time it'V\<i11 take to recruit and hire this
position.
The PAA osition will only be funded at 0.75 FTE based on antici ated 'ob duties and res IlSlbilities.
4.
An
actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
.
Personnel costs for this position are currently flat lined due
to
uncertainty about future
wage agreement, health care, and retirement costs.
5. Later actions that may affect future revenue and expenditures
if
the bU1 authorizes
future spending.
Not applicable. Bill 5·12 does not authorize future spending.
6. An estimate of the staff time needed to implement the bill.
The new MIT position is estimated at 0.8 PTE in the first year ofimplementation (FY13)
due to the time necessary for recruitment and hiring. On-going funding will be at 1.0
~.
'
The new Principal Administrative Aide (PAA) position
will
be funded at 0.6 FTE in the
first year ofimplementation (FY13), based on anticipated job duties and responsibilities.
On-going future funding
will
be
at .75 PTE.
7. An explanation;ofhow the addition of new staff responsibilities would affect other
duties.
These would be new positions
hired
specifically to perform the duties and tasks set forth
in Bill 5-12. The current staff at the Offices ofthe County Executive could not absorb
this new workload within their presently assigned job duties.
8. An estimate of costs when an additional appropriation is needed.
An additional appropriation of$149,284 would be needed in
FY13,
as detailed
in
item 3.
2
(j)
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9. A description of any variable that could affect
reven~e
and cost estimates.
Variables that impact collected revenue are not applicable. Variables that impact the
position's cost estimates are future wage agreements, health care, and retirement costs.
10. Ranges
of revenue
or expenditures that are uncertain or difficult to project.
Future wage agreements, health care, and retirement costs (for all employees) are
U1~certain
or difficult to project.
11.
If
a
biII
is
likely
to have no fiscal impact, why that is the case.
An impact on expenditures will occur due to the creation and filling of a new position.
12.
pther
fiscal impacts or comments.
The new Manager
II
and Principal Administrative Aide positions are the minimum
required resources to support the program established by
this
bill.
If
demand for services
increase, then additional resources and staffing
will
be required for continued support.
13. The following contributed to and concurred with this analysis:
Sonetta Neufville, Offices of the County Executive
Peter Bang, Department ofEcononllc Development
Michael Coveyou, Department ofFinance
Angela Dizelos, Office ofManagement and Budget
Bryan Hunt, Office of Management and Budget
Naeem Mia, Office of Management and Budget
Pam Jones, Office ofProCllrement
Date
3
®
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. .
Economic Impact Statement
Bill 5-12,
Administration -Small Business Navigator -Established
Background:
This legislation would
require
the Executive
to
designate an employee in the Office of the
. Executive or the Office of the Chief Administrative Officer
as the
Small Business Navigator.
The Small Business Navigator would advise of any action needed
to
assist small businesses
. to comply with County requirements and regulations; serve
as
the primary point of contact
between a small business and the County; develop and maintain a database of infonnation
necessary for a small business to comply with County requirements and regulations; and
advise smail businesses on howto comply with County requirements and regulations
1.
The sources of information, assumptions, and methodologies
used.
Not applicable-.this legislation
is
administrative only.
2. A
description of
any
variable
that
could affect the economic impact estimates.
Not applicable-this legislation is administrative only.
3.
The Bill's positive or negative effect,
if
any on employment, spending. saving,
investment, incomes, and property values in the County.
While this legiSlation
is
predominantly administrative in nature, its intent is to
authorize support for local
small
businesses which are
an
important part of the local
economy. However, since the role of the authorized position of
Small
Business
Navigator is to support local small businesses it is not possible to reliably quantify
its
impact on local economic factors such
as
employment or iIivestment
4.
If
a Bill is likely to have no economic impact, why
is that
the case?
Not applicable-this legislation is administrative
only.
5. The following contributed to and concurred with this analysis: David Platt and Mike
Coveyou, Finance
],oseph F.
(Beach, Director
~artment
of
Finance
(j)
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Bill No.
5-12
Concerning: Administration
Small
Business Navigator - Established
Revised: April 27, 2012 Draft No. _6_
Introduced:
February 7,2012
Expires:
August 7,2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ----'-"No=n.,..,e'-:-----::---_ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Berliner
AN
ACT to:
(1)
(2)
(3)
establish a program to assist certain small businesses located in the County;
require the appointment of a dedicated staff member to assist small businesses to
comply with County requirements and regulations; and
generally amend the law concerning small businesses.
By adding
Montgomery County Code
Chapter 2. Administration.
Section 2-25B
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 Council for Montgomery County, Maryland approves the following Act:
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BILL No. 5-12
1
2
3
4
Sec. 1. Section 2-25B is added as follows:
2-25B.
Small Business Navigator.
Definitions.
As used in this Section:
Navigator
means the Small Business Navigator.
Small business
means
~
ill
5
privately owned business that meets the
6
7
requirements of Section IlB-65(a).
(hl
Establishment
Q[
Program.
The Executive must create and administer
~
8
9
lOW
11
Small Business Assistance Program with
~
Small Business Navigator to
help small businesses comply with County policies and regulations.
Small Business Navigator.
The Executive must designate an employee
[[in the Office of the Executive or the Office of the Chief
Administrative Officer]] as the Small Business Navigator.
other duties, the Navigator must:
Among
12
13
14
15
ill
advise the Executive, the Council, the Chief Administrative
Officer, County Department heads, the Planning Board, and any
other appropriate government agency, of any action needed to
assist small businesses to comply with County requirements and
regulations;
16
17
18
19
ill
[[serve as primary point of contact]) IK-omote.
~oITIrnunications
between
~
small business and each County department or agency
that the small business must interact with;
20
21
22
23
ill
develop and maintain
~
database of information
necess~
for
~
small business to comply with County requirements and
regulations; [[and]]
24
25
26
ill
advise small businesses on how to comply with County
requirements and regulations;.JIDd
-2-
f:\law\bills\1205 small business navigator\bill6.doc
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BILL
No.
5-12
27
ill
identify . changes to regulations and requirements that would
improve turnaround. eliminate duplication. resolve conflicts in
authority, . and
requirements.
eliminate
unnecessary
regulations
and
28
29
30
31
32
33
@
Reports.
On or before September
12
of each year, the Executive must
report to the Council on the activities and recommendations of the
Navigator.
Approved:
34
35
Roger Berliner, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy o/Council action.
39
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\1205 small business navigator\bill 6.doc