PETITIONS, REPORTS AND COMMUNICATIONS
- Presentation from the U.S. Postal Service on new retail location within the City of Annapolis
- Reports by Committees
BUSINESS and MISCELLANEOUS
1. Ratification of Proposed Union Memoranda of Understanding (Available 10/28)
My Comments: The City offers pension and healthcare benefits for all or most of its employees. The amount that the City is forecast to owe for future pension payments is referred to as the pension liability. As in most jurisdictions, the City has underfunded that liability (current underfunding is about 15% or $20+ million), which means that - on an actuarial basis - the account set aside to pay that liability is not sufficient and will run out over time.
In addition, the City has been paying its healthcare costs out of pocket, rather than from a dedicated account with sufficient funds to pay for those obligations, referred to as the Other Post Employment Benefits (OPEB) liabilities. By 2014, that unfunded liability is estimated at $44.7 million, and is projected to grow to $124 million by 2033. Clearly, this is not sustainable.
For years, the City's advisors and bond rating agencies (and some Council members) have expressed concern about these unfunded and underfunded liabilities. To substantively address these issues in a legally and financially prudent manner would be a huge accomplishment.
Prior negotiations between the City's union representatives and the City administration have taken positive steps to address these challenges, but have not resulted in the broad, holistic solution to address these risks to the City's fiscal health nor to enable the City to fulfill its commitments to its employees and retirees.
For the past 14 months, representatives from the City and its four unions have met and studied these issues in an interest based bargaining (IBB) process. The IBB team collaboratively addressed specific subjects of bargaining, such as wage and benefit issues for the purpose of entering into a collective problem-solving process.
It now appears that the negotiations are at a conclusion. Like legal negotiations, it is customary and necessary to keep those negotiations confidential until the terms have been accepted by participants of those negotiations. Hence, the terms of the proposed MOU have not been made public. Within the past couple of weeks, the City's representatives in the IBB process provided a confidential briefing to the rest of us on the City Council about the proposed agreement terms. Assuming that the relevant unions have ratified the agreement by Monday, the City will make the agreement public and the entire City Council will be asked to ratify the agreement.
Until the proposed agreement is made public, I cannot publically discuss its details or state my thoughts on it. However, I will be happy to do so after the agreement is made public.
2. Budget revisions
My Comments: Includes transfers to cover additional City Dock consultant expenses, ABA holiday decorations, and fire department expenses.
3. Appointments
My Comments: I am pleased to see appointments to the Transportation Board, but I remain concerned about the time it takes to fill the vacancies on boards and commissions generally, particularly for the Annapolis Environmental Commission.
LEGISLATIVE ACTION - 2nd READER
ORDINANCES AND RESOLUTIONS
R-49-12 2012 City Dock Master Plan
- For the purpose of adopting the Draft City Dock Master Plan as an addendum to the 2009 Annapolis Comprehensive Plan.
My Comments: Please see above comments.
O-51-11Amd. Use and Redevelopment of Property in C2 Zoning Districts - For the purpose of adding certain provisions governing use and redevelopment of property located in a C2 Zoning District. Proposed to be postponed indefinitely.
and
O-52-11Amd. Rezoning Parcels [1244] 1247 and 1255, Grid 20, Tax Map 52A - For the purpose of rezoning parcels [1244] 1247 and 1255, Grid 20, Tax Map 52A to C2, "Conservation Business" Zoning District. Proposed to be postponed indefinitely.
My Comments: If the City Dock resolution passes in some form, then I expect that these Ordinances will postponed again so that the new Council seated in December could consider a new zoning ordinance that matches the adopted City Dock plan, in which case this legislation will expire with the conclusion of this Council's term. If the City Dock resolution does not pass, then I would not support this legislation at this time because this Council has not adequately or thoroughly considered its rezoning options.
O-19-13 Capacity of Schools in the Development Review Process - For the purpose of adding current and projected school capacity of Annapolis Feeder System schools geographically located within the City of Annapolis to the list of development review criteria and findings; and specifying duties of the Director of Planning and Zoning regarding school capacity.
My Comments: From my prior emails, you know that one of my chief concerns since joining the City Council has been the lack of a provision in the City code that requires the City to consider, during the approval process, the impact of a proposed residential development on the capacity of the schools in the Annapolis feeder system. To remedy this situation, I have proposed, along with two co-sponsors (Aldermen Arnett and Pfeiffer), Ordinance O-19-13 which would require that the City consider the impact of proposed residential developments on Annapolis feeder schools. Rather than making over-capacity at the schools an automatic bar to development, as is the case with sewer and water capacity, this legislation purposefully leaves the weighing of school capacity as a factor to the experts on the City staff and Planning Commission.
At the recent public hearing on this legislation, citizens testified about the condition of the local elementary schools, and how most of them are already over-capacity, and how that negatively impacts the educational opportunities for their children. Representatives for developers also testified, arguing that the proposed legislation introduces uncertainty to the development review process.
At this Council session, I plan to offer additional amendments in an attempt to remain supportive of citizen's concerns about overcapacity schools, but provide some compromise to the concerns of developers to the extent that those goals are mutually compatible.
I remain committed to this legislation because it is better to consider the impacts of residential developments at the time of the City's decision-making, rather than wait to address the issue when new students show up to overcapacity schools. To me, it is a question of how the City Council will balance competing and legitimate concerns: developers' interests for certainty and citizens' interests for quality education. I welcome your advocacy to the Mayor and City Council.
O-35-13 Issuance of Bonds and Bond Anticipation Notes
- For the purpose of authorizing and empowering the City of Annapolis (the "City") to issue and sell, upon its full faith and credit, (i) general obligation bonds in the aggregate principal amount not to exceed $11,500,000, and (ii) general obligation bond anticipation notes in anticipation of the issuance of such bonds in the maximum aggregate principal amount equal to the maximum aggregate principal amount of such bonds.
Analysis of Fiscal Impact:
| PROJECT | FISCAL YEAR | BOND FUNDING |
| City Dock Infrastructure | 2014 |
$5,150,445
|
| Capital Program Land Acq'n | 2013 |
$2,500,000
|
| City Dock Infrastructure | 2014 Grant |
$1,500,000
|
| Hillman Garage Repl't | 2014 |
$765,190
|
| City Dock Infrastructure | 2013 |
$275,000
|
| General Sidewalks | 2014 |
$250,000
|
| Truxton Swimming Pool | 2014 |
$150,000
|
| Wayfinding Signage | 2014 |
$114,500
|
| Wayfinding Signage | 2013 |
$40,000
|
| Kingsport Park | 2014 |
$10,931
|
| Total | |
$10,756,066
|
The total bond amount of $11,500,000 includes almost $750,000 for issuance costs and underwriter's fees.
My Comments: These are projects that the City previously approved in the Capital Improvements Program (CIP) budget. When the Finance Director presented this ordinance, I asked for more information or explanation on why bonds, rather than operating funds, are being used for these projects. I expect to hear his response during this Council session. I'm reserving judgement on whether to support this bond issuance pending his explanation and to hear the opinions from you and my colleagues. In general, I prefer avoiding more bonds and long term debt in general.
O-47-11 Fence Permits - For the purpose of amending the Code of the City of Annapolis with respect to the issuance of fence permits.
My Comments: This legislation applies to new fences; owners of existing fences need not apply for a new permit or conform their fences. One of the primary changes of this legislation is to reduce the default maximum height of front yard fences from 8' to 4'. The director of Planning and Zoning may still approve a fence up to 8' in his discretion. There is a proposed amendment to change the reference from 4' to 6'. The legislation also introduces increased scrutiny of the ratio of solid fence materials to open space. In addition, it would change the responsibility for the review of designs from the Department of Neighborhoods and Environmental Programs to the Department of Planning and Zoning. I expect substantial discussions during the session with regard to the height issue. I'm reserving judgment on these issues, and welcome your input, but am generally in favor of this legislation.
O-30-11 Deleting the Contiguous Lots Section of 21.40.020 - R1 Single Family Residence District - For the purpose of amending Section 21.40.020 - R1 Single Family Residence District to delete Section D related to contiguous lots.
My Comments: This is a technical amendment requested by Alderman Paone to help some residents in Ward 2 that purchased 2 adjacent parcels with the intent to sell 1, but their ability to do so is hampered existing code. The corrections will bring Ward 2 into conformity with the rest of the City residential zoning code. Pending comments to the contrary from you or my colleagues, I intend to support the bill.
O-28-13 New Land Use Article References in the City Code - For the purpose of updating the references to the former Article 66B of the Annotated Code of Maryland to the new title of "Land Use Article."
My Comments: These technical code changes are required in order to bring City Code into conformance with State law. Pending comments to the contrary from you or my colleagues, I intend to support the bill.
O-34-13 Historic Preservation Tax Credit - For the purpose of revising the provisions governing the historic preservation tax credit in the City of Annapolis.
My Comments: (This analysis borrows from Ald. Budge, the bill's sponsor) The City offers a tax credit equal to 10% of qualified expenses related to a preservation, restoration, or rehabilitation project in the Historic District. The program is under-used: while the code allows up to $150,000 of tax credits in any one year, slightly over one-third was claimed last year. Almost all credits claimed were for improvements to private residences.
This Spring the State Legislature increased the allowable credit to 25%. Analysis showed that applying this credit increase across the board would consume the City's entire budget on projects which were already being done anyway. O-34-13 proposes to increase the tax credit to 25% for the following projects:
Qualified interior improvements required for life/safety or hazard mitigationExterior restoration work when there is replacement of a non-historic feature or material with a historically appropriate feature or materialIncome-producing properties
Other projects would remain at the 10% level. The Chief of Historic Preservation and City staff developed this legislation. Pending comments to the contrary from you, I intend to support the bill.
O-32-13 Plumbing Permit Fees - Capital Facilities - For the purpose of authorizing applicants for a special exception or other development proposal, subject to the following group of plumbing permit fees (a connection charge, a capital facility charge, a capital facility assessment charge, and an installation charge), to be eligible for the fees levied at the time of such application rather than the fees at the time the permit may be issued; and making such provisions retroactive to July 1, 2011.
My Comments: This is a matter of fairness to a handful of applicants that got caught by fee changes during a long permit approval process.
O-33-13 Wastewater Conveyance and Treatment (Sewer Service) Contract with the Federal Government - For the purpose of approving a new 10-year wastewater conveyance and treatment (sewer service) contract (Contract) with the Federal Government to adjust the rate as provided; and all matters related to said wastewater conveyance and treatment.
My Comments: This legislation produces significant positive financial impact, as the proposed ordinance would approve a new 10-year wastewater conveyance and treatment (sewer service) contract with the Federal Government to adjust the rate to from the current $2.59 per 1,000 gallons to $4.21 per 1,000 gallons. The average annual sewer flow from USNA in FY12 and FY13 was 320,000 Kgal. The financial impact will
be approximately $518,000 per year in increased revenue. The contract includes a discount as compared with homeowner rates to account for the size of this account and the corresponding reduced administrative work. In addition, it includes an escalating pay rate if the City raises the residential rates. Lastly, the contract is intended to apply retroactively to July 1, 2011, which would result in back payments to the City.
R-35-13 Re-Activating the State Commission on the Capital City - For the purpose of expressing the sense of the Annapolis City Council to ask the Governor of the State of Maryland to re-activate the State Commission on the Capital City to regularly connect key stakeholders in order to "study possible ways to preserve and improve Annapolis as the capital of the State," (State Government Article, §9-406).
My Comments: The members of the Commission are the Governor, Anne Arundel Executive, the Speaker of the House of Delegates, the President of the State Senate, the Commandant of the Naval Academy, the Mayor of Annapolis, and a private citizen as moderator. The Commission had fallen into disuse many years ago.
Our City faces significant local issues that extend beyond the scope our City government: Transportation, dealing with sea level rise, school capacity, affordable housing, and parking facilities are just a few examples. I believe meetings of the Commission can only be beneficial to the City. Pending comments to the contrary from you, I intend to support the bill.
UPCOMING CITY COUNCIL EVENTS
No Council events are scheduled because this Council's term will expire shortly. The Mayor could schedule an additional session before the election if there is unresolved business from Monday's session.
