Agenda Item 6B
December 13, 2016
Action
MEMORANDUM
December 9, 2016
TO:
FROM:
County Council
Robert
H. Drummer, Senior Legislative
Attorney
~
SUBJECT:
Action:
Expedited Bill 47-16, Montgomery County Economic Development
Corporation - Board of Directors - Initial Terms - Amendments
Expedited Bill 47-16, Montgomery County Economic Development Corporation - Board
of Directors - Initial Terms - Amendments, sponsored by Lead Sponsor Council President at the
request of the County Executive, was introduced on November 15, 2016. A public hearing was
held on November 29.
Background
Bill 25-15, Economic Development - Reorganization - Montgomery County Economic
Development Corporation, enacted on June 30, 2015 and signed into law on July 7, 2015,
eliminated the Department of Economic Development and authorized the Council to designate a
non-profit corporation as the Montgomery County Economic Development Corporation
(MCEDC). Bill 25-15 also provided that the designated corporation have a Board of Directors
appointed by the Executive, subject to confirmation by the Council, to 3-year terms ofoffice. The
Executive appointed each member of the Board to begin their term on December 30, 2015.
Expedited Bill 47-16 would authorize the Executive to extend the initial terms ofoffice for
each Board member by up to 6 months to coincide with the fiscal year beginning on July 1. This
change would apply only
to
the Board members first appointed on December 30, 2015, and would
permit each Board member to be considered for a position as an officer when the Board elects
officers at the beginning of a fiscal year.
Public Hearing
Both Assistant Chief Administrative Officer Lily Qi, speaking on behalf of the Executive
(©8) and Jacob Sesker, speaking on behalf of the Montgomery County Economic Development
Corporation (©9) supported the Bill.
Discussion
In
order to stagger the terms for the MCEDC Board members, Bill 25-15 required the
Executive to initially appoint four members to a I-year term, four members to a 2-year term, and
three members to a 3-year term. Future appointments must all be for a 3-year term. The initial 1­
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year tenns for 4 members expire on December 30,2016. Bill 47-16 would pennit the Executive
to extend the tenns ofthe 11 initial appointees for up to 6 months in order to coordinate each tenn
of office with the corporation's fiscal year.
Council staff recommendation:
enact the Bill as
introduced.
This packet contains:
Expedited Bill 47-16
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
Testimony of Lily Qi
Testimony of Jacob Sesker
Circle #
1
3
4
5
8
9
F:\LAW\BILLS\I647 MCEDC - Board Of Directors\Action Memo.Docx
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Expedited Bill No.
47-16
Conceming: Montgomery
County
Economic Development Corporation ­
Board of Directors - Initial Terms ­
Amendments
Revised: November 10.2016 Draft No.
£..
Introduced:
November 15.2016
Expires:
May 15. 2018
Enacted: ___________________
Executive: _________________
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ---=-:.No=n..:..::e'--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
authorize the County Executive to extend the term of a voting member first appointed
to the Board of Directors to coincide with the end of a fiscal year; and
(2)
generally amend the law governing the Montgomery County Economic Development
Corporation.
By amending
Montgomery County Code
Chapter 30B, Economic Development
Section 30B-3
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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ExPEDITED BILL
No. 47-16
1
Sec.
1.
Section 30B-3 is amended as follows:
30B-3. Board of Directors.
2
3
4
*
(b)
*
*
Each voting member serves a 3-year term. The individual terms of the
voting members must be staggered. Of the voting members first
appointed, four must be appointed for a I-year term, four must be
appointed for a 2-year term, and three must
~e
5
6
7
8
appointed for. a 3-year
term. The Executive may extend the term of
~
voting member first
appointed for an additional
Q
months or less to coincide with the end of
~
fiscal year. A voting member appointed to fill a vacancy serves the rest
of the unexpired term. A voting member continues in office until his or
her successor is appointed and confirmed.
9
10
11
12
13
*
Sec. 2.
*
*
14
15
16
17
18
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection ofthe public interest. .This Act takes effect on the date on which it becomes
law.
Approved:
19
20
Nancy Floreen, President, County Council
Date
21
Approved:
22
Isiah Leggett, County Executive
Date
o
f:\law\bills\1647 mcedc - board
of
directors\bill 2.docx
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LEGISLATIVE REQUEST REPORT
Expedited
Bill 47-16
Montgomery County Economic Development Corporation
-
Board ofDirectors ­
Initial Terms
-
Amendments
DESCRIPTION:
This bill authorizes the County Executive to extend the tenu of a voting
member first appointed to the Board of Directors of the Montgomery
County Economic Development Corporation to coincide with the end of a
fiscal year.
The tenus of the voting members first appointed to the Board do not
coincide with the end of a fiscal year.
PROBLEM:
GOALS AND
OBJECTIVES:
This change would expand the pool of experienced board members who
would be eligible to run for election in the Board's next annual meeting.
COORDINATION:
Office of the Chief Administrative Officer.
FISCAL IMPACT:
Office of Management and Budget.
ECONOMIC
IMPACT:
EVALUATION:
Office of Finance.
Subject to the general oversight of the County Executive and the County
Council.
EXPERIENCE
ELSEWHERE:
Unknown
SOURCES OF
INFORMATION:
Edward
B.
Lattner, Chief
Division of Government Operations
Office of the County Attorney
Lily Qi
Office of the Chief Administrative Officer
APPLICATION
WITHIN
MUNICIPALITIES:
None.
PENALTIES:
N/A.
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• 17
76 •
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,./
O~CEOFTHECOUNTYEXECUTINE
ROCKVIILE. MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
November 9, 2016
To:
From:
Subject:
Nancy Floreen, President, County
coun~i~
Isiah
Leggett, County Executive
-k?~LU-_-
.'
Legislation
to
extend the term of board of directors-Montgomery County
Economic Development Corporation
I am attaching for Council introduction legislation to authorize the County
Executive to extend the term of a voting member first appointed
to
the Board of Directors ofthe
Montgomery County Economic Development Corporation (MCEDC) to coincide with the end of
a fiscal year, and to generally amend the law governing MCEDC as it relates to board tertns.
According to County Code Section 30B-3, each voting member serves a 3-year
term and the legislation amends that section by adding language such that the County Executive
may extend the term ofthe voting member first appointed for an additional 6 months or less to
coincide with the end of a fiscal year. The amendment would allow all board members,
regardless of their terms, to be considered for officers at the time ofboard elections, which take
place at the beginning of each fiscal year.
Attachment
cc:
Timothy
L.
Firestine, Chief Administrative Officer
Jennifer Hughes, Director, Office of Management and Budget
Alexandre Espinosa, Director, Department of Finance
Bonnie Kirkland, Assistant Chief Administrative Officer
Lily Qi, Assistant Chief Administrative Officer
Marc Hansen, County Attorney
Bob Buchanan, Chair, Montgomery County Economic Development Corporation
.
'.3
.
,.<.~"
301-251-4850 TTY
montgomerycountymd.9
OV/311.;._:,.'
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Fiscal Impact Statement
Bill XX-16 Montgomery County Economic Development Corporation
- Board of Directors - Initial Terms - Amendments
1. Legislative Summary:
Bill XX-16 will authorize the County Executive to extend the term ofa voting member
first appointed to the Board of Directors (Board) of the Montgomery County Economic
Development Corporation (MCEDC) to coincide with the end ofa fiscal year. According
to Montgomery County Code Section 30B-3, each voting member serves a three-year
term and the legislation amends that section by adding language such that the County
Executive may extend the term of the voting member first appointed for an additional six
months or less.
'
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget.
This bill does not impact County revenues or expenditures.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
There are no estimated six year revenue or expenditure impacts as a result of this bill.
4.
An
actuarial analysis through the entire amortization period for each regulation that
would affect retiree pension or group insurance costs.
Not applicable.
5. An estimate of expenditures related to County's information technology
(In
systems,
including Enterprise Resource Planning (ERP) systems. '
No additional systems or resource planning will be required to implement the bill.
6. Later actions that may affect future revenue and expenditures if the regulation authorizes
future spending.
The
Dill
does not authorize future spending.
7.
An
estimate of the staff time needed to implement the regulation.
The implementation of this bill will not require any additional staff time to enforce or
adopt extended terms for Board members.
8.
An
explanation of how the addition of new staff responsibilities would affect other duties.
See number 7. '
@
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:
..
:.:;
.......
9.
An
estimate of costs when an additional appropriation is needed.
No additional appropriation is needed with adoption ofthis bill.
10. A description of any variable that could affect revenue and cost estimates.
There are no variables that impact revenue or costs estimates as a result of this bill.
11. Ranges of revenue or expenditures that are uncertain or difficult to project.
See number
to.
12. Ifthe regulation is likely to have no fiscal impact, why that is the case.
The changes made
in
this bill simply extend the tenn. of a voting members of the Board
of the Montgomery County Economic Development Corporation (MCDEC) to coincide
. with the end of the fiscal year. Therefore, it has no fiscal impact.
13. Other fiscal impacts or comments.
Not applicable.
14. The following contributed to and concurred with this analysis:
Lily Qi, the Executive Office
Dennis Hetman, Finance
Pofen Salem, Office of Management and Budget
Date
Office
0
anagement and Budget
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Economic Impact Statement
Bill ##-16, Montgomery County Economic Development Corporation ­ Board of
Directors ­ Initial Terms
i
I
Background:
This legislation would authorize the County Executive to extend the tenn of a voting
member first appointed to the Board of Directors (Board) of the Montgomery County
Economic Development Corporation (MCEDC) to coincide with the end of a fiscal year.
According to County Code Section 30B-3, each voting member serves a three-year tenn
and the legislation amends that section by adding language such that the County
Executive may extend the tenn ofthe voting member first appointed for an additional six
months or less.
1.
The sources of information, assumptions, and methodologies used.
There are no sources of infonnation, assumptions, or methodologies used by the
Department of Finance in the preparation of the economic impact statement.
2.
A
description of any variable that could affect the economic impact estimates.
There are no variables that could affect the economic impact estimates. Bill ##-16
essentially extends the tenn ofa voting member of the Board of the MCEDC to
coincide with the end of a fiscal year. Therefore, it
has
no economic impact.
3.
The Bill's positive or negative effect, if any on employment, spending, savings,
investment, incomes, and property values in the County.
Bill ##-16 has no positive or negative effect on employment, spending, savings,
investment, incomes, and property values in the County.
4.
If
a Bill is likely to have no economic impact, why is that the case?
Bill ##-16 has no economic impact for the reasons stated in paragraphs 2 and 3.
5. The following contributed to or concurred with this analysis: David Platt, Dennis
Hetman, and Robert Hagedoorn, Finance.
Alexandre
A.
Esp osa, DIrector
Department ofFinance
Date
Page 1 of1
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~\
TESTIMONY ON BEHALF OF COUNTY EXECUTIVE ISIAH LEGGETT ON
EXPEDITED BILL 47-16, MONTGOMERY COUNTY ECONOMIC
DEVELOPMENT CORPORATION - BOARD OF DIRECTORS - INITIAL
TERMS - AMENDMENTS
November 29,2016
Good afternoon Council President Floreen and Members of the County Council. I
am Lily Qi, Assistant Chief Administrative Officer, and I am here to testify today
on behalf of County Executive Leggett in support of Expedited Bill 47-16.
The purpose of Bill 47-16 is to authorize the County Executive to extend the term
of a voting member first appointed to the Board of Directors of the Montgomery
County Economic Development Corporation CEDC) to coincide with the end of a
fiscal year.
Currently, the EDC board members serve staggering one-year, two-year and three­
year terms ending on December 31. Because the EDC's fiscal year coincides with
the County government's fiscal year for budgetary purposes, its board election of
officers - chair, vice chair, treasurer, or secretary - takes place in June of each year
for the fiscal year starting in July. This creates a problem for the board's operation
because certain board members whose terms expire on December 31 would not be
eligible to serve as officers of the board because their terms would expire midway
through the year for which they would be elected to serve as officers.
It
is therefore the intention of the County Executive to extend the terms of all board
members for an additional six months so that all members of the board will be
eligible to serve as officers. We appreciate your favorable and timely action on
Expedited Bi1147-16.
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s
Testimony of Montgomery County Economic Development Corporation
Bill 47-16
Public Hearing, November 29, 2016
On
behalf of MCEDC, I
am
here
to
voice support for Bill
47-16.
The legislation would allow the
Executive
to
extend the terms of the initial voting members of the board by
6
months thereby
synchronizing the board terms and the fiscal year.
Currently, initial Board members serve initial terms that align with the calendar year. All initial
terms end
on 12/31/16,12/31/17
or
12/31/18.
The election of officers occurs
on a
fiscal year
basis (the terms for Chair, Vice Chair, Secretary and Treasurer will end
on
6/30/17, 6/30/18, and
6/30/19) in order
to
ensure that the same Board leadership is in place throughout the budget
cycle.
During the June 2016 election of officers, Board members realized that the misalignment of
Board terms and the annual election of officers limited the pool of Board members who would
be willing
to
serve as officers. Without this amendment, the board members who will be able
to
run for FY18 office in June of 2017 (Chair, Vice Chair, Secretary, Treasurer) and who could serve
a
fulll-year term in that capacity would be limited
to
those board members who either (a)
were initially appointed
to 3
year terms ending
12/31/18,
or (b) any board members newly
appointed or officially re-appointed in December 2016. Those whose terms are set
to
end in
December 2017 would presumably choose not
to
put themselves forward for one of those
critical roles due
to
the uncertainty as
to
whether they would still be
on
the Board in the second
half of the fiscal year.
The effects of this legislative change would include:
(1) For the initial board: This change would expand the pool of experienced board members
who would be eligible
to
run for election in the Board's next annual meeting (assuming that the
initial terms of initial Board members are in fact extended); and
(2) For newly appointed members of later boards: assuming that board terms remain synched
with the fiscal year, the effect would be
to
shift the pool of board members who would likely
stand for election in the annual meeting from those in their first and second years of their 3-year
terms
to
those in the second and third years of their 3-year terms, thereby allowing the more
experienced Board members
to
serve as officers.
For these reasons, MCEDC urges your support of Bill
47-16.