PHED Item 7
April 26, 2017
Worksession
MEMORANDUM
April 24, 2017
TO:
FROM:
Planning, Housing and Economic Development clr\ttee
Robert H. Drummer, Senior Legislative Attorney
'~'j--
SUBJECT: Worksession: Bill 8-17, Executive Branch - Business Services Center ­
Established
Bill 8-17, Executive Branch - Business Services Center - Established, sponsored by Lead
Sponsors Council President Berliner and Councilmember Riemer and Co-Sponsors
Councilrnembers EIrich, Navarro and Katz, was introduced on April 4. A public hearing is
scheduled for ApriI2S.!
Bill 8-17 would establish a Business Services Center in the Office ofthe County Executive
and define the duties of the Center. The County Attorney's Office found no legal issues with the
Bill. See
©S.
Background
The Business Services Center would be a dedicated office within County Government to
assist, inform, and advocate on behalf of businesses, including helping businesses interact with
County Government. It would provide dedicated constituent service for County businesses in the
Office of the Executive. The existing small business navigator would become part of the Center.
In addition to the existing duties ofthe small business navigator, the Center would:
(1)
provide constituent services for businesses operating in the County or planning to
operate in the County, including:
(A) communicating about new and revised County laws and regulations
affecting County businesses;
(B) public outreach;
(C) providing technical publications on County policies;
(D) operating workshops and conferences; and
(E) convening targeted business development events; and
serve as a point of contact for County businesses seeking to:
(A) obtain a County contract; or .
(B) comply with County requirements and regulations; and
advocate for County businesses with other State, County, and local government
agencIes.
(2)
(3)
I
Council staffwill send out a summary ofthe public hearing as an addendum to this memorandum.
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Discussion
1.
What is the fiscal and economic impact of the Bill?
OMB estimated that the Bill would require the addition of 2 new Grade 25 Program
Manager II positions at an annual cost of $227,380. OMB also estimated an additional cost of
$70,000 each year for events and marketing. See ©7-8. Finance was unable to estimate the
potential increase in the number of businesses operating in the County due to the new Business
Services Center. See ©9-1
O.
2. The Executive's recommended amendments.
The Executive has requested the following amendments (see ©ll):
a.
b.
c.
d.
e.
change the name from Business Services Center to Business Solutions Group;
change "public outreach" to "outreach" in the list of duties on line 38;
change providing "technical publications" to "publications" in the list of duties on
line 39;
change "targeted business development events" to "targeted business events" in the
list of duties on line 41 ;
delete the requirement for the Center to serve as a point of contact for businesses
seeking to "obtain a County contract or comply with County requirements and
regulations" on lines 43-44; and
change "advocate for County businesses" to "assist County businesses" on line 45.
f.
Executive Branch representatives are expected to explain these recommended amendments at the
worksession.
3. Should the Bill be enacted?
Providing constituent service for County based businesses is a core function for the County
government. Each County department and office that interacts with a business operating in the
County"is charged with providing service to the business. Each of the tasks listed in the Bill for
the Center (or Group if the Committee agrees to change the name) is important and useful. The
question for the Committee is whether these business constituent services can be fulfilled by each
individual department or office under our current structure or do we need a central organization to
provide a liaison between an individual department or office and a business.
The Committee must weigh the cost to add 2 new Grade 25 positions along with other
much needed expenses as the Council deliberates on the FY18 operating budget and the County's
6-year fiscal plan. Since labor and benefits costs for each employee tend to rise each year, one of
the most effective methods to control the growth of overall labor costs is to limit the number of
new positions created. Enactment of the Bill must be accompanied by an addition to the
Executive's operating budget or a corresponding reduction to be implemented.
2
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This packet contains:
Bill 8-17
Legislative Request Report
County Attorney Bill Review Memo
Fiscal and Economic Impact Statement
Executive's Recommended Amendments
F:\LA W\BILLS\1708 Office Of Business Services\PHED Memo.Docx
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4
5
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Bill No.
8-17
Concerning: Executive
Branch
Business
Services
Center
Established
Revised: March 28, 2017 Draft No. _2_
Introduced:
April 4, 2017
Expires:
October 4, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-'-No=n:""e=-----_ _ _ _ __
ChI _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsors: Council President Berliner and Councilmember Riemer
Co-Sponsors: Councilmembers EIrich, Navarro and Katz
AN
ACT to:
(1)
(2)
(3)
establish a Business Services Center in the Office of the County Executive;
define the duties ofthe Center; and
generally amend the laws governing the organization of the Executive Branch.
By amending
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. 8-17
1
Sec.
1.
Section 2-25B is amended as follows:
2-25B. [Small Business Navigator] Business Services Center.
(a)
2
3
4
Definitions.
As used in this Section:
Center
means the Business Services Center.
Navigator
means the Small Business Navigator designated
Qy
the
Executive under subsection
(£}.
5
6
7
8
Small business
means a privately owned business that meets the
requirements of Section IlB-65(a).
(b)
Establishment of [Program]
Center. The Executive must create and
administer a [Small Business Assistance Program] Business Services
Center [with] that includes a Small Business Navigator. [to help small
businesses comply with County policies and regulations] The Center
must be part of the Office of the County Executive.
(c)
9
10
11
12
13
14
15
16
17
18
19
Small Business Navigator.
The Executive must designate an employee 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)
promote communications 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;
20
21
22
23
24
25
26
o
f:\lawlbills\170B office of business serviceslbill2.docx
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BILL
No. 8-17
27
(4)
advise small businesses on how to comply with County
requirements and regulations; and
28
29
30
31
(5)
identify changes to regulations and requirements that would
improve turnaround, eliminate duplication, resolve conflicts in
authority, and eliminate unnecessary regulations and requirements.
32
33
34
35
36
37
38
39
40
41
(d)
Additional duties fOr the Office.
In addition to the duties of the Small
Business Navigator described in subsection
(£1
the Office must:
ill
provide constituent services for businesses operating in the County
or planning to operate in the County, including:
.cAl
ill.)
communicating about new and revised County laws and
regulations affecting County businesses;
public outreach;
providing technical publications on County policies;
operating workshops and conferences; and
convening targeted business development events; and
.cg
CD)
ill}
42
ill
serve as
~
point of contact for County businesses seeking to:
43
44
45
46
47
.cAl
ill.)
obtain
~
County contract; or
comply with County requirements and regulations; and
ill
W
advocate for County businesses with other State, County, and local
government agencies.
Reports.
On or before September 15 of each year, the Executive must
48
49
report to the Council on the activities and recommendations of the
[Navigator] Center.
o
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LEGISLATIVE REQUEST REPORT
Bill 8-17
Executive Branch
-
Business Services Center
-
Established
DESCRIPTION:
Bill 8-17 would establish a Business Services Center in the Office of
the County Executive and define the duties ofthe Center.
There is no central office in County government for a business to
receive constituent service.
PROBLEM:
GOALS AND
The Business Services Center would be a dedicated office within
County Government to assist, infonn, and advocate on behalf of
businesses, including helping businesses interact with County
Government.
It
would provide dedicated constituent service for
County businesses in the Office ofthe Executive. The existing small
business navigator would become part of the Center.
OBJECTIVES:
COORDINATION: Office ofthe County Executive
FISCAL IMPACT: To be detennined.
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
To be detennined.
NIA
NIA
Robert
H.
Drummer, Senior Legislative Attorney
APPLICATION
WITIDN
MUNICIPALITIES:
NI
A
PENALTIES:
NIA
F:\LAw\BILLS\1708 Office Of Business Services\LRR.Docx
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.1. ..
i ..
II
r
I,
I,
OFFICE OF THE COUNTY ATTORNEY
Isiah Leggett
County Executive
Marc P. Hansen
County Attorney
MEMORANDUM
TO:
LilyQi
Assistant Chief Administrative Oflicer
Edward
B.
Lattner, Chief
Division of Government Operations
April 7,2017
Bill 8-17, Executive Branch - Business Services Center - Established
FROM:
fM-­
DATE:
RE:
Bill 8-17 would establish a Business Services Center
in
the Office of
the
County
Executive and define the duties of the Center. The existing small business navigator would
become part of the Center.
I see no legal issues. Because it is not a defined term, it might
be
helpful to describe the
"Office" identified in line 33
as
the "Office ofthe County Executive."
ebl
cc:
Bonnie Kirkland, Assistant CAO
Marc P. Hansen, County Attorney
Robert H. Drummer, Senior Legislative Attorney
17-013623
Bill 8-17 OCA
review
101
Monroe
Street, Rockville.
Maryland
20&50-2580'
(240)
777~735
• TIT (240) 777-2545. FAX (240) 777-6705.
F.dwnrd.LattnerUllmontgomerycountymd,gov
®
,.
:
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ROCKVILLE, MARYLAND
MEMORANDUM
April 21, 2017
TO;
Roger Berliner, Presi e
'!:!~
Council
Jennifer A. Hughes,
FROM:
SUBJECT:
~ffice
of
Management
and Budget
Alexandre A. Espin· sa, Director. Department of FinanC1fe
FElS
for
Bill 8-17, Executive Branch"- Business Services Center - Established
Please find attached the fiscal
<1»<1
economic impact statements
for the above­
referenced legislations.
JAH:ti:
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lily
Q1. Assistant Chief Administrative Officer
Lisa Austin,
Offices
of
the
County Executive
Joy Nurmi, Special Assistant to
the
County Executive
Patrick Lacefield, Director, Public Infonnation Oitice
David Piatt, Department of Finance
Dennis Hetman. Department of Finance
Pofcn Salem, Office of Management and Budget
Naeem Mia, Office of Management and Budget
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Fiscal Impact Statement
Council BillS-!7
Executive Branch - Business Services Center - Established
1.
Legislative Summary.
Bill 8-17 would establish a Business Services Center within the Office of the County
Executive and defme the duties ofthe Center.
The Center would include the existing Small Business Navigator positon and would expand
services offered to the business community. The Center would assist, inform and advocate on
behalf of businesses, with a focus on providing constituent services to Montgomery County
businesses and to assist with their interactions with Montgomery County Government.
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.
Includes source of information, assumptions, and methodologies used.
The Bill does not impact revenues but
will
impact expenditures.
It
is anticipated that up to
two additional full-time equivalent Program Manager II positions, Grade 25, would be
required to deliver the expanded scope of services as identified in BiH 8-17. The total cost
estimate of two
staff
positions is approximately $227,380 (each position is estimated at
$109,190 for PC and $4,500 for OE). In addition, a budget of approximately $70,000 is
needed for events and marketing in order to comply with the duties presented in the proposal
Bill. The total annual expenditures are approximately $297,380.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
There is no estimated change to County revenues. The total expenditures for the next six
fiscal years are estimated at approximately $1.
78M.
including $1.36M for personnel cost
(=$227
~380
x 6) and $420,000 for events and marketing (=$70,000 x 6).
4.
An
actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5.
An
estimate of expenditures related to County's information technology (IT) systems,
including Enterprise Resource Planning (ERP)
systems.
Not applicable.
6. Later actions that may affect future revenue and expenditures if the bill authoru..es
future spending.
Not applicable. The Bill does not authorize future spending.
7. An estimate of the staff time needed to implement the bill.
As indicated in
#2.
it is anticipated that up to two full-time equivalent Program Manager II
positions, Grade 25, will be required to deliver the expanded scope ofservices as identified
in Bill
8~
17 at an estimated cost ofapproximately $227,380.
8. An explanation of how the addition of new staff responsibilities would affect other
duties.
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The additional new staff is anticipated to be fully occupied
with
delivering the expanded
services
to
County busiriessesas required
by
the proposed Bill.
9. An estimate of costs when an additional appropriation is needed.
Not
Applicable.
10. A description of any variable that could affect revenue and cost estimates.
If
the duties of this group are either significantly increased or decreased, the number of staff
members needed would be impacted.
11. Ranges of revenue or expenditu.res that are uncertain or difficult to project.
Costs for marketing and programming are difficult to project because the scope of what
"'ill
be needed andlor provided depends on legislative activity and the needs ofthe business
community.
12. If a bill is
likely
to have no fiscal impact, why that is tbe case.
Not Applicable.
13. Other fIScal impacts or comments.
None.
14. The following contributed to and concurred
with
this analysis:
Judy
Stephenson, Office of the County Executive
Lily
Qi,
Office
ofthe County Executive
Pofen Salem. Office of Management and Budget
..
Hughes:Direc"·~·"
anagement and Budget
,
i~
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Economic Impact Statement
Bin
8-17 Executive Branch - Business Services Center -Established
Background:
This legislation would:
• Establish a Business Services Center (Center) in the Office of the County
Executive: and
• Dei:ine the duties of tIle Center.
The Centcr would include the small business navigator and additional duties \.vould
include:
• Providing constihlcnt
services for businesses operating in Montgomery County
(County) or planning to operate in the County;
• Serving as a point of contact for the County businesses wanting
to
obtain a
County contract or seeking to comply vvith County requirements and regulations;
and
• Advocating
for
County businesses \vith State, County. and local govemment
agencies
in
Montgomery County.
1. .The sources of hlformation, assumptions, and methodologies used.
The source of information is from the Statistics of U.S. Businesses, U.S. Census
Bureau (Census Bureau). Thc Department of Finance (Finance) assumes the focus of
Bill 8-17 is to assist small businesses both ·within the County and those small
businesses who plan to operate in the County. For purposes ofthis economic impact
statemcnt, Finance assumes a small business employs less than
hventy
workers.
There ate no methodologies used in the preparation ofthe economic impact
statement.
2. A description of any variable that could affect the economic impact estimates.
According to the Census
Bureau~
there were 18,962 fmus with less than 20
employees operating in the County in calendar year 2014, the latest date
thai
data arc
available. Of those firms, there were 19,056 establishment" that employed 72,919
Vlrith a payroll of$3.778 bilHon. The County's share ofsmaU businesses (firms and
establishments)
was 20.6 percent of total statewide small
businesses
with employees
below 20, and 19.3
percent
of
total
statevvide
employment.
'Ibe variables that could affect the economic impact estimates are the number of small
businesses operating in the COlmty and plan to operate
in
the County, employees in
those small businesses, and total employee's annual income.
Page 10f2
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Economic Impact Statement
BiU 8-17 Executive
Branch - Business Senrices Center - E,stablished
3. The Bill's positive or negative effect, if any on employment, spending, savings,
investment, incomes, and property
values
in
the
County.
The establishment of a Business Services Center could have a positive impact on the
County by increasing the number of small businesses, employment in small
businesses, and incomes
to
both businesses and employees. However, we do not have
specific data on how the creation of the Business Services Center might impact small
businesses in the County.
4.
If
a BiU is likely to have no economic impact, why is that the case?
Bill 8-17 could have
an
economic impact. Please see paragraph 3.
5. The following
contributed to or concurred with this
analysis:
David Platt" Dennis
Hetman, Mary Casciotti, and Rob Hagedoom" Finance;
sa,
Director
Alexandre
Es
Department of Finance
~~~---,----,,-"'''''--,
""/
J
Date "
7.0
I
'Ul17
Page 2 of2
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PROPOSED AMENDMENTS TO BILL 8-17, EXECUTIVE BRANCH - BUSINESS SERVICES CEI\lTER
On lines 2, 4, and 10 and 11, in each instance, strike "Services Center" and substitute "Solutions
Group".
In lines 4, 9, and 12, in each instance, strike "Center" and substitute "Group".
In lines 32 and 33, in each instance, strike "Office" and substitute "Group".
In line 38, strike "public".
In line 39, strike "technical".
In line 41, strike "development".
Strike beginning with the colon in line 42 through
"(B)"
in line 44.
In line 45, strike "advocate" and substitute "assist" and in the same line, after "businesses"
insert "interacting".