Agenda Item 4A
May 2,2017
Introduction
MEMORANDUM
April 28, 2017
TO:
FROM:
County Council
Robert
H.
Drummer, Senior Legislative Attorney
~
SUBJECT:
Introduction:
Expedited Bill 12-17, Fire and Rescue Services - Length of Service
Awards Program for Volunteers - Amendments
Expedited Bill 12-17, Fire and Rescue Services - Length of Service Awards Program for
Volunteers - Amendments, sponsored by Lead Sponsor Council President at the request of the
County Executive, is scheduled to be introduced on May 2. A public hearing is tentatively
scheduled for June 13 at 1:30 p.m.
Background
The current structure of the Montgomery County Fire and Rescue Association was
established by Bill 36-03, which took effect on January 1, 2005. One of the most innovative
changes in Bill 36-03 was the establishment of a process for Local Fire and Rescue Departments
(LFRD's) to select an authorized representative to represent their interests, and a requirement for
the Fire Chief to negotiate in good faith with the authorized representative on certain issues
affecting LFRD's and their volunteers. The rules for the selection of the representative and the
direct negotiation process are included in County Code Section 21-6. The process was intended
to be similar to collective bargaining with career employees.
The LFRD's selected the Montgomery County Volunteer Fire and Rescue Association
(MCVFRA) as their representative. On January 30, 2007, the Council approved the first
Agreement between the County Government and MCVFRA.
Council Review
Code Section 21-6(P) requires the Executive to submit to the Council any element of an
Agreement that requires an appropriation of funds, may have a future fiscal impact, is inconsistent
with any County law or regulation, or requires the enactment or adoption of any County law or
regulation. Section 21-6(
q)
directs the Council to notify the parties within 60 days if
it
disapproves
an Agreement in whole or in part. The Council may by resolution extend the time for action.
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On April 3, 2017, the Executive submitted a negotiated Agreement between the Executive
and the MCVFRA, effective July 1,2017 through June 30, 2020, for Council review and action.
The Agreement includes a provision to recommend for Council approval legislation amending the
Length of Service Awards Program for Volunteers (LOSAP). On April 25, 2017, the Council
adopted Resolution No. 18-784 indicating its intent to approve the negotiated Agreement with the
MCVFRA. See ©11-12.
Discussion
LOSAP is an existing program that provides a small lifetime pension to a local fire and
rescue department volunteer who completes a certain amount of service. LOSAP provides a
retirement benefit, a service-connected disability benefit, a survivor benefit, and a death benefit to
qualified volunteers. Bill 12-17 would increase the retirement benefits for qualified volunteers,
clarify the conditions for earning credits for stand-by duty, and require all payments to be made
by direct deposit. OMB estimated that the increased LOSAP retirement benefits would cost the
County an additional $23,385 in FY18 and $150,722 over the next 6 years. The requirement to
pay benefits by direct deposit would save the County $25,200 over the next 6 years. See ©8.
This packet contains:
Expedited Bill 12-17
Legislative Request Report
Executive's Transmittal Memo
Fiscal and Economic Impact Statement
Resolution No. 18-784
F:\LA w\BILLS\1712 LOSAP Amendments\lntro Memo.Docx
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Expedited Bill No.
12-17
Conceming: Fire and Rescue Services ­
Length of Service Awards Program for
Volunteers - Amendments
Revised: April 14, 2017 Draft No. _1_
Introduced:
May 2,2017
Expires:
November 2, 2018
Enacted:
[date]
Executive:
[date sig ned]
Effective:
[date takes effect]
Sunset Date: [date expires]
Ch,
~,
Laws of Mont. Co.
[year]
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request ofthe County Executive
AN EXPEDITED ACT
to:
(1)
increase the amount of the length of service benefit to certain local ftre and rescue
department volunteers;
(2)
require beneftts to be paid through direct deposit;
(3)
modify the requirements to earn credit for stand-by duty; and
(4)
generally amend the length of service award program for volunteers,
By amending
Montgomery County Code
Chapter 21, Fire and Rescue Services
Section 21-21
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
HeQding 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 unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act.'
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EXPEDITED BILL
No. 12-17
1
Sec. 1.
Section 21-21 is amended as follows:
2
3
4
21-21. Length of service award program for volunteers.
*
(c)
Length ofservice benefits.
*
*
5
6
(1)
Volunteers Who Qualified Before 1985. Effective January 1,
1985, any volunteer who qualified for a monthly award payment
before January 1, 1985, must receive monthly award payments
equal to 150 percent of the pre-1985 monthly award payment.
(2) Volunteers Who Qualify in 1985 or Later - 25 Years of Service.
(A) Effective January 1, 1985, a volunteer qualifies for a 25­
year award payment when the volunteer:
(i)
is at least age 55, if the volunteer completed 25
years as an active volunteer before 1996, or
(ii) is any age, ifthe volunteer completed 25 years as an
active volunteer on or after January 1, 2004.
(B) A volunteer who qualifies under this paragraph must
receive an award payment of:
(i)
$233 [$230] per month for life; and
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15
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18
19
(ii)
$11.70 [$11.50] per month for life for each year of
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21
service as an active volunteer over 25 years (up to
$117 [$115] per month).
The maximum total
22
23
benefit is $350 [$345] per month.
(3) Volunteers Who Qualify in 1985 or Later - 15 years of Service.
(A) Effective January 1, 1985, a volunteer qualifies for a 15­
year award payment when the volunteer:
(i)
has served 15 years as an active volunteer after
January 1, 1955; and
f:\law\bills\1712Iosap amendments\bill1.docx
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25
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ExPEDITED BILL
No. 12-17
28
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(ii)
(B)
is at least age
60.
A volunteer who qualifies under this paragraph must
receive an award payment of
$9.32 [$9.20]
per month for
life for each year of service as an active volunteer.
30
31
32
33
34
(4)
Volunteers Who Qualify in
1985
or Later -
10
Years of Service.
(A)
Effective January
1, 1985,
a volunteer qualifies for a
10­
year award payment when the volunteer:
(i)
(ii)
(B)
has served
10
years as an active volunteer; and
is at least age
65.
35
36
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A volunteer who qualifies under this paragraph must
receive an award payment of
$9.32 [$9.20]
per month for
life for each year of service as an active volunteer.
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(g
All years of service, including past years of service, must
be included.
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46
ill
A volunteer must receive
~
3.5%
increase, for
~
maximum total
benefit of no more than
$362.00
per month, to his or her LOSAP
benefit payment if he or she:
CA)
received LOSAP benefit payments as of December
2015;
and
lL.
47
48
.em
qualified for the higher nominal fee, as described in
Article
12
of the fire and rescue volunteers collective
bargaining agreement, for calendar year
2015
by:
49
50
ill
(ii)
being on the Integrated Emergency Command
Structure (lEeS) certified list;
receiving
30
LOSAP points for department or
station responses; and
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ExPEDITED BILL
No. 12-17
54
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(iii)
receiving 20 LOSAP points for sleep-in or stand-by
servIce.
*
(i)
*
*
Administration.
(1)
The County Executive or the Executive's designee must
administer this Section under Executive Regulations adopted
under method (3).
(2)
The County must pay benefits under this section from the first
day of the first month after the volunteer, surviving spouse or
domestic partner, or volunteer's estate qualifies for the benefit,
except that benefits must not be paid for any period before the
application for the benefit is filed.
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65
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ill
(k)
All LOSAP payments must be made by direct deposit.
*
Point System.
*
*
*
*
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*
(3)
[Sleep-in or] Stand-by - 20 points maximum. [Sleep-in
service earns 1 point for each full night. Stand-by service
earnsl point for each period of on-duty activity of the fire
department or rescue squad that lasts for at least 4 hours
and does not fall under another category in this
subsection.] Integrated Emergency Command Structure
(lECS) certified personnel may earn stand-by LOSAP
points for performing on-duty activity at the rate of:
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CA)
one quarter point for every hour of stand-by service
~
volunteer is assigned to
~
unit available for
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response; and
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EXPEDITED BILL
No. 12-17
81
ill}
one point for every
1:
hours of stand-by service the
volunteer is available for response in the station, but
not assigned to
~
specific unit.
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Stand-by service must be recorded in the data system
provided
Qy
the County. A volunteer must not earn more
than
1
points for stand-by service during any 24-hour
period.
Sec. 2.
Expedited Effective Date.
86
87
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The Council declares that this legislation is necessary for the immediate
protection of the public interest.
The amendments in Section 1, except for the
90
91
amendments to subsection (k), take effect on July 1, 2017. The amendments to
subsection (k) in Section 1 take effect on January 1,2018.
Approved:
92
93
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Roger Berliner, President, County Council
Date
95
Approved:
96
Isiah Leggett, County Executive
Date
97
This is a correct copy ofCouncil action.
98
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 12-17
Fire and Rescue Services -Length o/Service Awards Program/or Volunteers­
Amendments
DESCRIPTION:
The legislation provides additional length of service benefits to
local fire and rescue department volunteers.
The recently negotiated agreement between the County and the
Montgomery County Volunteer Fire and Rescue Services
Association provides that legislative changes will be made to
provide additional Length of Service Awards Program (LOSAP)
benefits to local fire and rescue department volunteers covered
under the agreement, that LOSAP payments be provided to local
fire and rescue department volunteers through direct deposit, and
that the statute be amended regarding stand-by duty for local fire
and rescue department volunteers. This statutory change in
eligibility for additional LOSAP benefits is effective on July 1,
2017. The statutory change in stand-by duty is effective on January
1,2018.
PROBLEM:
GOALS AND
OBJECTIVES:
This amendment to Sec. 21-21 of the County Code implements the
provision of the MCVFRA agreement.
COORDINATION:
Office of Human Resources and Finance
FISCAL IMPACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
Office of Management and Budget
N/A
N/A
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Darryl Gorman, Office of Human Resources (x.75026)
NIA
NIA
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OFFICE OF mE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
April 14,2017
TO:
FROM:
SUBJECT:
Roger Berliner, Council President
~
..................._....- ........__..........................................................._ ...................._......_....- .............................................................................- ................................
Isiah Leggett, County Executive
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Proposed BilJ - To amend the length of service award program for local fire
and rescue department volunteers.
I
I
The proposed Bill amends Chapter 21 of the Montgomery County Code based on
a negotiated agreement between the County and the Montgomery County Volunteer Fire and
Rescue Association.
These amendments make increases in the Length of Service A wards Program
benefits
fOT
members of the Montgomery County Volunteer Fire and Rescue Association.
These amendments also clarify the conditions for earning credits for stand-by
duty for members of the Montgomery County Volunteer Fire and Rescue Association.
Attachments
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montgomerycountymd,gov/311
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301-251-4850 TTY
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Fiscal Impact Statement
Bill
XX-17 -
Personnel- LOSAP Benefits - Volunteer Fire and Rescue Bargaining Unit
1. Legislative Summary
This bill would provide an increase in the Length of Service Awards Program (LOSAP)
available to volunteers who are members of a Local Fire and Rescue District (LFRD),
provide for payment of these benefits through direct deposit only, and amend the law
regarding stand-by duty for volunteers who are members of an LFRD.
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.
This bill changes the award payments in LOSAP for qualifying volunteers. For FY18,
the aetuarially determined cost of these award increases is $23,385, covering the
additional amount required to meet the annual contribution.
This bill would also provide that payment ofLOSAP benefits would be direct deposit
only. It is estimated that this change will provide a savings of up to $4,200 annually,
through decreased administrative costs.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Over the next 6 fiscal years, the actuarially determined cost of these increased benefits is
estimated to be $150,722. Administrative cost savings over the next 6 fiscal years as a
result of switching to direct deposit are estimated to be $25,200.
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 authorizes
future spending.
Not applicable.
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7. An estimate of the staff time needed to implement the bill.
Not applicable.
8. An explanation of how the addition of new staff responsibilities would affect other
duties.
Not applicable.
9.
An
estimate of costs when an additional appropriation is needed.
10. A description of any variable that could affect revenue and cost estimates.
Not applicable.
11. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
12.
If
a bill is likely to have no fiscal impact, why that is the case.
Not applicable.
13. Other fiscal impacts or comments.
Not applicable.
14.
The following contributed to and concurred with this analysis:
Corey Orlosky, Office of Management and Budget
Linda Herman, Executive Director, Montgomery County Employee Retirement Plans
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Economic Impact Statement
Bill ##-17, Personnel- LOSAP (Length of Service Award Program) Benefits ­
Volunteer Fire and Rescue Bargaining Unit
Background:
This legislation would:
• provide an increase in length of service benefits to volunteers who are members
of a Local Fire and Rescue District, and
• provide for payment of benefits through direct deposit, and
• amend the law regarding stand-by duty for volunteers in the volunteer fire and
rescue services bargaining unit.
The assumption is that the Department of Finance (Finance) and the Office of
Management Budget estimates a pay-go amount of$23,835 in FY2018. Finance did '
not employ any methodologies in the preparation of the economic impact statement.
2.
A
description of any variable that could affect the economic impact estimates.
The only variables that could affect the economic impact estimate
are
changes to the
amount of the increase and whether
the
individual received "Length of Service Award
Program (LOSAP)" benefit payments
as
ofDecember 31, 2015, as currently drafted
in
Bill ##-17.
3. The Bill's positive or negative effect,
if
any on employment, spending, savings,
investment, incomes, and property values in the County.
Based on the estimated pay-go amount in paragraph
1,
Bill #-17 would have no
significant impact 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 ##-17 would have no significant economic impact. See paragraph 3.
5. The following contributed to or concurred with this analysis:
David Platt, Dennis
Hetman, Finance; Corey Orlosky, Office of Management and Budget.
Alexandre A. Espinosa, DirectOr
Department of Finance
~1,.~,4C;b~
birecW
Page
1
of 1
r
Date
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Resolution No.: ] 8-784
~~~----------
Introduced:
April ] 8, 20] 7
Adopted:
April 25, 2017
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Public Safety Committee
SUBJECT:
Memorandum of Agreement with Montgomery County Volunteer Fire and
Rescue Association (MCVFRA)
Background
1.
County Code Section 21-6 establishes a process for Local Fire and Rescue
Department..~
(LFRD's) to select an authorized representative
to
represent their interests, and requires the
Fire Chief to negotiate in good faith with the authorized representative on certain issues
affecting LFRD's and their volunteers.
The LFRD; s selected the Montgomery County Volunteer Fire and Rescue Association
(MCVFRA) to
be
their authorized representative.
On April
3,
2017, the Council received from the County Executive the attached
Memorandum of Agreement between Montgomery County Government and Montgomery
County Volunteer Fire and Rescue Association for the period from July 1, 2017, until June
30,2020.
Code Section 21-6(p) requires the Executive to submit
to
the Council any element of an
agreement
that
requires
an
appropriation of funds, may have a
future
fiscal
impact, is
inconsistent
with any
County law or regulation, or requires the enactment or adoption of
any County law or regulation. Section 21-6{
q)
directs the Council to notifY the parties
within 60 days
if it
disapproves an agreement in whole or in or
part.
The Council may by
resolution extend the time for action.
The Public Safety Committee reviewed and made recommendations on each ofthe portions
of the Memorandum of Agreement requiring an appropriation of funds for FY
18
on
Apri117.
2.
3.
4.
5.
@
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Page 2
Resolution No.: 18-784
Action
The County Council for Montgomery County, Maryland approves thefollowing resolution:
The County Council approves the following provisions of the Agreement for FY2018:
1.
2.
50 gear sets for active volunteers.
Article 12 - Option 1 nominal fee of$435 and an Option 2 nominal fee of$650 for
active volunteers, effective July 1,2017.
Funding for training up to $15,000.
Volunteer Basic Orientation Course funding up to $21,000.
Side letterlMOU - $246,340 for MCVFRA operating expenses.
Length of Service Awards Program (LOSAP) law amendments in concept.
75 printed copies of the Agreement.
3.
4.
5.
6.
7.
This is a correct copy of Council action.
~7A.~
Linoa M. Lauer, Clerk of the Council