Mayor & Board of Aldermen Workshop - October 30, 2024

The Mayor and Board of Aldermen held a workshop on October 30, 2024, discussing three major items: implementation plans for rental licensing funds, the annual report on small, minority, and women-owned business enterprise (SBR/MWBE) programs, and a rezoning request for Frederick County's proposed Prospect Center. No public comments were made.

Rental Licensing Fund Allocation and Implementation

• HHS Director Ruth provided an update on rental inspections: 90% complete; 34 units awaiting first inspection, 243 requiring a second inspection, and three condemnations (due to tenant hoarding, unsanitary conditions, and an illegal bedroom).
• FY24 rental registration income was $912,240; expenditures $384,299, leaving a surplus of $527,941. FY25 surplus is projected at approximately $5,269.
• Proposed changes to fund allocations: cap the Tenant Protection Fund at $50,000 (instead of 30% of surplus), allocate 40% to the Rental Assistance Fund (up from 20%), and the remainder to the Affordable Housing Conservation Fund.
• A debate arose over whether the Rental Assistance Fund should serve tenants displaced by ordinance enforcement or all low-income residents facing housing insecurity. Several aldermen favored broader use, while others noted the current language restricts it to those required to vacate.
• Ruth presented eligibility criteria for each fund, including a 90-day tenancy requirement. Aldermen Russell and Nash questioned this requirement, arguing it should not apply.
• The board expressed preference for partnering with existing community organizations to disburse funds rather than running an in-house program.
• For the Affordable Housing Conservation Fund, a home repair program with Habitat for Humanity was proposed. Board members called for a wider menu of options and suggested issuing an RFI to solicit proposals.
• Next steps: schedule another workshop with DPW staff to obtain detailed inspection data and revisit the ordinance language.

SBR/MWBE Annual Report and Proposed Revisions

• Gerard Bowens, Business Outreach Coordinator, presented the annual report on the MWBE and SBR programs.
• Since the last report: added over 200 vendors to the tracking sheet, launched the Frederick Buys campaign (adding ~90 new vendors), hosted a vendor resource fair (86 registered, 36 attended), created a mentor-protege program, and published a "Doing Business with the City" guide.
• MWBE program: on $39 million in projects, average goal 33%, actual participation 36%, total MWBE spend exceeding $11 million.
• SBR program: 103 exemptions out of 370 qualifying purchases in CY23; 118 out of 433 YTD in CY24. Many exemptions due to inability to obtain three SBE quotes.
• Proposed revisions:
  • Exempt purchases over $50,000 from the SBR program, as only 1 of 81 purchases over that threshold successfully used the set-aside. This would allow focus on the $10,000 to $50,000 range.
  • Add a 1% contract goal for service-disabled veteran-owned small businesses.
  • Integrate contract compliance software (~$30,000/year) to improve data tracking.
• Board reaction: Alderman Russell requested more time to study the $50k exemption proposal; the veteran-owned goal and software integration were generally well-received.

Rezoning Request for Frederick County's Prospect Center (585 Himes Avenue)

• The board continued discussion of a request to rezone 19.5 acres from Professional Business (PB) to Institutional (IST) for the Prospect Center, a multi-agency government services complex.
• County representatives (Will Savish, Jason Stitt, Peter Soprano, Todd Buckmanic, Carl Wilson, Anthony Rosato) addressed previous questions:
  • Site selection: no formal study, but other sites were considered; the Prospect Center was chosen for affordable price, underserved community location, walkability, and transit access.
  • Traffic: road diet on Himes Avenue (city project) will not impact site; a bus stop will be located on the property.
  • Pedestrian path to Route 40 to be coordinated with future affordable housing on adjacent parcel.
  • Emergency access: gated north entrance with SOS beacon.
  • Screening: additional evergreens requested by board; monopole cannot be camouflaged cost-effectively.
  • Microgrid to power critical operations and serve as a community resiliency hub.
  • Fiber infrastructure: board requested assurance of city access to support economic development.
• Board members (Russell, Nash) proposed conditions for approval:
  • Robust year-round screening with evergreens.
  • Covered, protected bicycle parking.
  • Monopole restricted to emergency communications; no third-party co-location.
  • Binding intergovernmental agreement to preserve city access to fiber network.
  • Continued access for city residents to training and emergency response facilities.
• Next steps: city attorney to draft conditions; applicant to accept; public hearing likely in November or December, depending on applicant's readiness.

Key Outcomes

• No votes were taken; the workshop was for deliberation and direction.
• The rental licensing ordinance will be revisited in a future workshop with DPW staff present to provide comprehensive inspection data.
• An RFI may be issued for uses of the Affordable Housing Conservation Fund.
• SBR program modifications (exemption over $50k, veteran-owned goal, compliance software) will be studied further before formal action.
• Conditions for the Prospect Center rezoning will be drafted and presented to the applicant, followed by a public hearing and final vote.