Agenda Item 4
May 14, 2013
Action
MEMORANDUM
TO:
FROM:
County Council
~
Michael Faden, Senior Legislative Attorney
\?J~
, Essie McGuire, Senior Legislative Analysti:1\lv
SUBJECT:
Action: Bill 7-13, Emergency Medical Transportation Use of Revenue ­
Amendment
Public Safety Committee recommendation: enact with amendments.
Bill 7-13, Emergency Medical Transportation - Use of Revenue
Amendment,
sponsored by the Council President at the request of the County Executive, was introduced on
March 5, 2013.
Bill 7-13 would set aside 15% of the net Emergency Medical Services Transport (EMST)
Insurance Reimbursement Program revenue to be allocated for the benefit of the local fire and
rescue departments (LFRD's). This Bill would implement the Memo of Understanding that the
Executive signed with the Montgomery County Volunteer Fire and Rescue Association
(MCVFRA) in 2012 (see ©9-11). A public hearing was held on April 2 at which all speakers
then-Fire Chief Bowers, representing the County Executive, and representatives of the
MCVFRA - endorsed the Bill.
Amendments A Public Safety Committee worksession was held on May 3.
Committee recommended 2 amendments that all parties reviewed without objection:
The
Amendment
1
(see ©2-3, lines 27-42) would (a) delete language from the 2012 law that
required the Fire Chief to specify each year in the annual operating budget how the funds
allocated to the LFRD's would be used; and (b) clarify that any employees hired by the LFRD's
using EMST funds are neither County employees nor members of a separate LFRD merit
system.
Amendment
2 (see ©2, lines 11-16) would authorize the funds to be allocated under a
procedure specified in the annual operating budget resolution, rather than allocate the funds in
the resolution itself. The Committee also recommended implementing language for the budget
resolution, which the Council is scheduled to review on May 13.
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This packet contains:
Bill 7-13 with Committee amendments
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact Statement
Memo of Understanding with MCVFRA
F:\LAW\BILLS\1307 EMT Use Of Revenue-Amendment\Action Memo.Doc
Circle #
1
4
5
6
9
2
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Bill No.
7-13
Conceming: Emergency
Medical
Transportation - Use of Revenue ­
Amendment
Revised: 5-9-13
Draft No.2
Introduced:
March 5, 2013
Expires:
September 5, 2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective:
_ - - 1 -_ _ _ _ _ _ __
Sunset Date:
-!..!.N.:::.:on,.:.::e~
_ _ _ _ __
ChI _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN ACT to:
(1)
(2)
establish the percentage of emergency medical transport revenue to be allocated for
the benefit of local fire and rescue departments; and
clarify and expand the purposes for which a local fire and rescue department may
spend emergency medical transport revenue.
By amending
Montgomery County Code
Chapter 21, Fire and Rescue Service
Section 21-23A
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 lmv 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. 7-13
1
Sec. 1. Section 21-23A is amended as follows:
21-23A. Emergency Medical Services Transport Insurance Reimbursement
Program.
2
3
4
5
*
(h)
Use of Revenue.
*
*
*
*
6
7
*
(3)
(A)
[A
percentage of this account, which the Council must
8
9
specifY annually in the operating budget resolution, must
be used to replace or augment apparatus owned and staffed
by local fire and rescue departments and training, gear, and
equipment for local fire and rescue departments.]
150/0
of
the net Emergency Medical Services Transport Insurance
Reimbursement Program revenue must be allocated under
a procedure specified in the annual operating budget
resolution for the benefit of local fire and rescue
departments for:
10
11
12
13
14
15
16
17
18
19
ill
eH)
replacement or augmentation of apparatus owned
Qy
£!
local fire and rescue department;
facilities owned
Qy
£!
local fire and rescue
department;
20
21
22
23
24
25
(iii) training for volunteers;
(iv) gear and equipment for volunteers;
(y)
administrative staff to support
£!
local fire and rescue
department;
(vi) volunteer recruitment and retention; and
(vii) volunteer stand-by support.
ill)
26
27
[[As part of the Executive's operating budget submission,
@F;\LA\V\BILLS\1307 EMT Use
Of
Revenue-Amendment\BiIl2 Committee.DOC
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BILL
No.
7-13
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Approved:
the Fire Chief must transmit a plan for use of funds
designated for local fire and rescue departments. The plan
the Chief transmits must specify:
[(A)]
ill
the amount of this account the Chief recommends to
allocate to replace apparatus that is owned [and
staffed] by local fire and rescue departments in the
next fiscal year; and
[(B)]
(ii)
the amount of this account to allocate to facilities,
training,
gear,
and
administrative
retention,
staff,
volunteer
standby
recruitment
volunteer
support, and equipment for volunteers.]]
Any administrative staff hired or retained by a local fire
and rescue department using revenue allocated under this
Section is not a County employee or a member of the
separate merit system referred to in Section 21-16(a).
*
*
*
Nancy Navarro, President, County Council
Date
47
Approved:
48
Isiah Leggett, County Executive
Date
49
This is a correct copy o/Council action.
50
51
Linda M. Lauer, Clerk of the Council
Date
@:\LAw\BILLS\1307 EMT Use Of Revenue-Amendrnent\BiII2 Committee. DOC
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LEGISLATIVE REQUEST REPORT
Expedited Bill 7-13
Emergency A1edical Transportation
-
Use ofRevenue
-
Amendment
DESCRIPTION:
Requires the County's annual budget to allocate 15% of the net
revenues from the Emergency Medical Transport Insurance
Reimbursement Program to local fire and rescue departments.
The bill implements one component of an agreement between the
County and the Montgomery County Volunteer Fire and Rescue
Association (MCVFRA) regarding implementation of the Emergency
Medical Transport Insurance Reimbursement Program.
The 15% allocation established in the bill replaces language in
current law that requires the Council to make a determination each
year as to how much should be allocated to local fire and rescue
departments in the annual budget. Under the bill, the authorized uses
of this allocation are expanded to include:
(1)
replacement or
augmentation of apparatus owned by local fire and rescue
departments; (2) a facility owned by a local fire and rescue
department; (3) training for volunteers; (4) gear and equipment for
volunteers; (5) administrative staff to support a local fire and rescue
department; (6) volunteer recruitment and retention; and (7)
volunteer stand-by support.
Montgomery County Fire and Rescue Service
See Fiscal Impact Statement.
See Economic Impact Statement.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICA TION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Michael Faden, Senior Legislative Attorney, 240-777-7905
Fire and Rescue Service operates County-wide.
Not applicable
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071695
OFfiCE Of THE COUNTY EXECUTIVE
ROCKVilLE. MARYLAND
2()X~()
;::nv.:_.
Isiah Leggett
Count\' Execulin!
MEMORANDUM
February 25,2013
'~<.:~
••..J
rq
,'..,
:
TO:
FROM:
SUBJECT:
Nancy Navarro, President, County
Coun~il
,~~
,~-J
/
Isiah Leggett, County
Executiv~-?~~tJt--­
.1 ,}
",~
..
t"0
Proposed Legislation: Emergency Medical Transport Insurance Reimbursement
Program - Use of Revenue
I am transmitting for Council introduction a bill that requires the County's annual
budget to allocate 15% of the net revenues from the Emergency Medical Transport Insurance
Reimbursement Program to local fire and rescue departments. 1 am also transmitting a
Legislative Request Report, Fiscal Impact Statement and Economic Impact Statement for this
bil1. In a separate package transmitted simultaneously, I am recommending a supplemental
appropriation to the FYI3 Operating Budget of the Montgomery County Fire and Rescue Service
in the amount of $1,204,0 16 to fund the 15% allocation to the Montgomery County Volunteer
fire Rescue Association (MCVFRA) in FYI3.
The 15% allocation established in the bill replaces language in current law that
requires the Council to make a determination each year as to how much should be allocated to
local fire and rescue departments in the annual budget. Under the bill, the authorized uses of this
allocation are expanded to include: (1) replacement or augmentation of apparatus owned by
local fire and rescue departments; (2) a facility owned by a local fire and rescue department; (3)
training for volunteers; (4) gear and equipment for volunteers; (5) administrative staff to support
a local fire and rescue department; (6) volunteer recruitment and retention; and (7) volunteer
stand-by support.
The bill and supplemental appropriation implement one component of an
agreement between the County and the MCVFRA regarding implementation of the Emergency
Medical Transport Insurance Reimbursement Program. 1 am attaching a copy of that agreement.
If you have any questions about this bill, please contact Assistant Chief Administrative Officer
Kathleen Boucher at 240-777-2593 or Fire Chief Richard Bowers at 240-777-2435.
Attachments (4)
montgomerycountymd.gov/311
240-773-3556 TTY
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Statement
Bill xx-12 - Emergency Medical Transportation - Use of Revenue - Amendment
1. Legislative Summary
The amendment would allocate 15 percent ofnet revenues
from
the Emergency Medical
Services Transport Insurance Reimbursement Program to Local Fire and Rescue
Departments (LFRDs) and
expands
the purposes for which a
LFRD
may expend the
revenue. The legislation results from the Memorandum ofUnderstanding (MOU)
between the County and the Montgomery County Volunteer Fixe Rescue
Associati~n
(MCVFRA) regarding the use of
EMS
reimbursement revenue.
The
amendment would allow the LFRDs to allocate this
funding
to replace or augment
Fis~allmpact
apparatus owned by the LFRDs, facilities, training, gear and equipment. administrative
staff. vohmteer recruitment and retention, volunteer standby support, and equipment for
volunteers.
2. An estimate of changes
in
County revenues and expenditures regardless ofwhether
the revenues or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
The amendment would have no impact on total EMS reimbursement revenues or
expenditures. But, because the bill allocates 15 percent
of
net revenues to the LFRDs, the
funding available for other eligible purposes would
be
reduced by
15
percent. The
amounts that would go to the LFRDs
are
shown below.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
The last
lin~
on the chart shows the funding that would be set aside for the LFRDs:
I
I
FY13
I
I
FY14
FY15
FY16
FYI7
Revenue
Projections
Implementation
. Costs
I
S8,557 640
I
I
I
$1,030 870 •
$7.526,770
~
I
I
I
PY18
TOTAL
$17,619,696
S18,100,911
i
$18628,920
$19188,3291
$19,759,9031
$101,855,399
$7963,240
$93 892,159
Sl,329J80
1
$1355J50
$16,745161
i
Available
LRevenue
I
I
$1,384,790
$17,244 130
$2.586~620
i
$1415,560
$17,772,769
U!665~15
$1,446,990
1
$18,312,913 •
$2!746
1
9371
I
I
I
I
l
$16,290,416
$2443562
I
I
1
I
!
i
LFRD Funding
I
$1 129016
I
1
I
$2,511774 1
i
$14P83,824
I
4.
An
actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5. Later actions that may afIect future revenue and expenditures
if
the bill authorizes
future spending.
The bill does not authorize future spending.
6.
An
estimate of the staff time needed to implement the bill.
While not specifically addressed
in
the legislation, the MOU with the MCVFRA specifies
that the distribution process would be similar to
the
Amoss
grant
process. The amount of
- Page
1
of2­
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work effort to administer the payments to the LFRDs depends on how the
funds
are
distributed and
the
proposed use ofthe funds. While this cannot be known with
specificity at this time, MCFRS estimates it may require 0.50 PTE of work effort to
admjnister the payments
to
the LFRDs.
7.
An
explanation of how the addition of new staff responsibilities would affect other
duties.
See number
6
above.
8.
An
estimate of costs when an additional appropriation is needed.
An
additional appropriation
is
required to implement this legislation. The County
Executive has transmitted a supplemental appropriation request for $1,204,016 related
to
this proposed legislation and to implement the MOU with the MCVFRA. MCFRS
has
received approval from the Department ofHomeland Security
(DHS),
the
granting
agency, to use the SAFER
grant
funds as intended, which will :free up EMS
reimbursement revenue originally appropriated to provide a ladder truck
in
the
First
Battalion. The freed up revenue plus position lapse and previously unappropriated EMS
revenue
will
provide the funding needed for the supplemental appropriation.
9. A description of any variable that could affect revenue and cost estimates.
The LFR..Ds would receive
15
percent ofnet revenue collected by the
EMS
reimbursement program. The variables affecting the estimate are the same
as
those that
could affect gross revenues, which were listed
in
the FIS for the original legislation: fee
rates charged, documentation to support billing, changes
in
Medicare and Medicaid
reimbursement rates
and
regulations, changes
in
private insurance market rates, the
number oftransports performed annually by the FRS, changes in local health
care
costs,
and the negotiated fee associated with third party billing.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable
11.
If
a bill
is
likely to have no fiscal impact, why that
is
the case.
Not applicable
12. Other fiscal impacts or comments.
Not applicable
13. The following contributed to and concurred
with
this analysis:
Dominic Del Pozzo, Department ofFire and Rescue Service
Amy Wilson, Office of Management and Budget.
Date
- Page 2 of2­
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Economic Impact Statement
Emergency Medical Transportation - Use
of
Revenues
Co1D1CD. Bill XX..12
1. The sources
of
information, assumptions,
and
methodologies used.
Bill XX-I2£, Emergency Medical Transportation - Use of Revenues would: 1) establish
the percentage
of
revenue to be allocated for the benefit of the local
fire
and rescue
departments
(LPRDs); and 2) expand the purposes for which an LFRD
may
expend
emergency
medical
transport revenue.
.
Based on our review of the legislation we do not believe the legislation
will
have an
economic impact since it only regulates how Emergency Medical Services Transport
reimbursement revenue may
be
used but does not result
in
a
~bange
in
the total amount of
revenne generated
2. A
description of
any
variable
that
could affect economic impact estimates.
Not applicable
3. The bill's positive or negative
effect,
if
any,
on employment, spending, saving,
investment, incomes, and property values
in
the
County.
Not applicable
4.
If'
a
bill
is
likely
to
have no economic
impact,
why
that
is
the case.
Based on our review of
the
legislation we do not believe
the
legislation
will
have an
economic impact since it only regulates how Emergency' Medical Services Transport
reimbursement
revenue
may
be used but does not
result
in
a change
in
the
total
amount of
revenue generated.
s.
The following contributed to and concw:red
with
this
analysis:
David Platt,
Depm:t:ment
of
Fmance. Michael Coveyou,
Department of Finance
Department of Finance
1
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Amended
Memorandum of Understanding
Between The County Executive of
Montgomery County, Maryland
And the
Montgomery County Volunteer Fire Rescue Association
I.
Recitals
Whereas, the County Executive of Montgomery County, Maryland (the
"Executive") and the Montgomery County Volunteer Fire Rescue Association (the
"Association"), collectively referred to here in as the Parties, seek to improve
communication and promote cooperation between the Parties as a means of
enhancing the volunteer contribution to the County's combination volunteer-career
emergency fire and rescue selVice and ultimately improving such selVices for
residents of and visitors to the County; and
Whereas, the Parties,through good-faith discussion and negotiation have
identified specific measures to foster such communication and cooperation as
described herein; and
Whereas, the Parties intend and agree that the commitments and obligations
described in this Memorandum of Understanding ("MOU") are binding and
enforceable;
It is hereby agreed as follows:
II. Efforts to Ensure No Person Is Charged for EMS Transport
The parties agree to work together to seek a legal basis satisfactory to the
parties to achieve the policy goal that no person should receive from the County any
out-of-pocket bill for that portion of the emergency medical selVice transport
reimbursement charge that is not covered by the person's public or private
insurance.
III. Allocation of EMS Transport Fee
A.
The Parties agree that a portion of the revenue EMS Transport Fee
program established in Legislative Bill 17-12 (as may be amended from time to time
- this agreement is transferable to any amended law, policy or procedure involving
an EMS Transport Fee program) shall be allocated to strengthening the volunteer
component of the County's combination fire and rescue selVice.
B. The Executive agrees to propose an amendment for the Fiscal 2013
budget and in future annual budget submissions to the County Council that fifteen
percent (15%) of net EMS Transport Fee program revenue be provided to the Local
Fire and Rescue Departments (LFRD) for the purposes set forth in Section III.C of
this MOU. The Executive further agrees that such proposed increases will be
(j)
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supplemental to and not supplant the amount currently provided in the Montgomery
County Fire and Rescue Service (MCFRS) Fiscal 2013 budget.
C. The Parties agree that the funds provided in this Section may be used for
the following purposes: LFRD-owned facilities, apparatus, and equipment; supplies;
training; volunteer recruitment and retention; stand-by support; and administrative
personnel. The Parties further agree that such funds may not be used for any other
purpose, including but not limited to fundraising, political activities or lobbying
activities. Parties agree to jOintly propose amending the current law to allow for
funds to also
be
used for facilities and hiring administrative personnel.
D. The Parties agree that the funds provided in this Section shall be
disbursed to the Association and allocated among the LFRDs in a manner similar to
that used to allocate funds to the LFRDs under the state's Section 508 AMOSS
Grant Funds and follow the Montgomery County Fire and Rescue Service Policy 03­
07 AM procedures for the allocation process but not the internal Montgomery County
departmental administrative review and sign off for the distribution of the funds.
E. If an LFRD requests EMS reimbursement funds for apparatus replacement
or augmentation, the LFRD must submit to the Fire Chief a volunteer staffing plan for
the apparatus unless a volunteer staffing plan for the apparatus already exists. The
Fire Chief and MCVFRA President will review and consider each request following
the approval process for use of EMS reimbursement funds set out in paragraph D.,
above.
F. The Executive also agrees to support legislation that would codify the
allocation described in Section III.B and C of this MOU in County law.
IV. Development and Implementation of Fire/Rescue Policy
A.
On or about January 1 of each year, the Fire Chief would propose and
submit to the Association a list of issues on which he plans to develop a new policy.
regulation or general order during that year. The Fire Chief shall solicit input from the
LFRDs through the Association prior to the submission of the list. The Fire Chief
agrees to refrain from proposing new policies, regulations or general orders not on
the list absent exigent or extenuating circumstances. The Association, working with
the LFRDs, agrees to use the opportunities created by this process to provide
substantive and timely input to the Fire Chief to foster more effective planning and
analysis in the policy formulation and development process.
B. To further promote communication and cooperation in the policy
formulation and development process, the Fire Chief shall (absent exigent or
extenuating circumstances) provide the Association with advanced notice and copies
of draft policies, regulations and general orders at least 45 days in advance offormal
publication for notice and comment.
ftJ
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C. The Fire Chief shall create and maintain County-Volunteer Working
Groups to assist in policy formulation and development, and it is the intent of the
Parties that to the maximum extent possible future policies, regulations and general
orders would be formulated and developed through these joint Working Groups. The
volunteer members of such Working Groups shall be appOinted by the Association
President. The Fire Chief shall create such Working Groups for the following areas:
Apparatus and Vehicles, Equipment, Facilities, EMS, Training, and Operations ..
V.
Areas for Bargaining Between the County and Association
A.
The Parties agree that the following issues are subject to bargaining
under the collective bargaining agreement between the County and
the Association pursuant to Section 21-6 of the Montgomery County
Code:
use of vehicles titled to the LFRDs;
use of buildings and facilities owned by the LFRDs;
staffing of apparatus with volunteer personnel;
grants submitted by LFRDs to governmental organizations or private
entities;
and
physical and other requirements for volunteer chief and operational
officers.
B. The Parties agree to begin discussions promptly on the issues in this
Section with the goal of reaching agreements without the need for formal bargaining.
If agreement cannot be reached between the Parties in a reasonable timeframe, the
Parties agree to enter into formal bargaining on the issues unresolved in the above
on the normal bargaining schedule.
VI. Miscellaneous Provisions
A.
If any provision of this MOU is deemed by a court to be unlawful, the
remaining provisions shall remain in full force and effect.
B.
The Parties agree to a one-time-only (OTO) supplementation to the
MCVFRA of $75,000 in FY13 in accordance with our collectively bargained
agreement.
rcine
D.
Goodloe. resident
ontgomery County Volunteer
Fire and Rescue Association
Date:
fI.
- /
s
-
J:3