State - Maryland General Assembly
The 427th session of the Maryland General Assembly convened January 13th; 1011 bills and 10 joint resolutions had been introduced as of February 2. The bill introduction deadlines are February 5 in the Senate and February 12 in the House; bills introduced after the deadlines must be referred to the Rules Committee in each chamber.
As required by law, Governor Martin O’Malley (D) has submitted a proposed $32.1 billion FY 2011 budget bill to the General Assembly. The General Assembly may reduce the amounts proposed in the Governor’s budget for the Executive Branch, but may not increase them. The Constitution requires that the budget bill be balanced, and that the General Assembly pass a budget bill by the 83rd day (April 5), or else the Governor must proclaim an extended session. If the budget bill does not pass by the 90th day, the General Assembly may thereafter deal only with the budget bill and with the cost of the extended session.
The Governor’s proposed budget proposes no new taxes and is balanced by using special fund transfers, reliance on federal stimulus funds, one-time shifts of funds, and a continuation of the budget cuts approved by the Board of Public Works last year; that said, it contains no solutions for the State’s ongoing structural deficit.
The elected officials are keenly aware of potential political fallout from their budget actions-- 2010 is an election year for all 188 members of the General Assembly and the Governor. While no new taxes are expected, proposed new fees and increased fees are abundant. One such example is SB 248/HB 106, which increases the surcharge on civil cases filed in Circuit and District Courts, and authorizes increasing the current surcharge on eviction cases from $5 to $10. If passed, building owners/management companies filing summary ejectment (tenant eviction) cases, as well as small businesses filing civil cases, will pay increased filing costs. The fiscal note estimates increased revenues of almost $10 million. The funds raised will go to the Maryland Legal Services Corporation Fund, which finances civil legal services to indigent clients.
On the brighter side, Governor O'Malley has dropped his demand for legislation this session to re-regulate energy markets. The ferocious and successful opposition last session to his bill re-regulating electricity suggested an even tougher challenge this year. Instead, the Governor wants the Public Service Commission to use its existing authority to order new power generation, as needed.
Additional bills of interest to AOBA members:
MC 4-10, Delegate Ali (D) requested a late-filed bill for Montgomery County to prohibit rental housing providers from conducting a credit check of any applicant who qualifies for a 100% monthly housing assistance payment from the County’s Housing Opportunities Commission.
SB 110/HB 175 Labor and Employment - Job and Financial Privacy Protection Act - prohibits an employer from using an applicant’s credit report or credit history when making hiring decisions, unless there is a bona fide work-related purpose.
SB 243 Housing - Discrimination Based on Source of Income - Prohibitions - Prohibits basing rental decisions on source of income, e.g. Sec. 8 Housing Choice Vouchers
HB 372 Business Occupations and Professions - Plumbers - Lead-Free Materials- requires that materials used in the installation or repair of plumbing intended to dispense water for human consumption be lead-free. The provisions of the bill are similar to a 2008 California law which limits the weighted average lead content in pipe, fittings, and fixtures used to convey drinking water.
SB 212 Residential Property - Prohibited Restrictions on Exercise of Free Speech - states that a homeowner or tenant may not be prohibited from (1) peacefully assembling on the individual’s property or contacting neighbors; (2) engaging in lawful election-related activities; or (3) using common property based on constitutionally protected beliefs, expressions, or activities. The bill specifies that the authority of homeowners or tenants to engage in these activities is subject to the reasonable rules of a condominium council, homeowners association, housing cooperative, or housing provider and may not be restricted or prohibited, except as required to protect the public health or safety or unless the activity would otherwise violate federal, State, or local law. The bill also provides for reasonable attorney’s fees and costs to a party who prevails in an action to enforce the law.
Bi-County
WSSC - FY 2011 Budget Proposes Major Increase
The Washington Suburban Sanitary Commission (WSSC) is considering a preliminary proposed FY 2011 budget that calls for a 9.5% rate increase. After a public hearing and comments are received, the budget will be reviewed and voted on by the Commission before being transmitted by March 1, as State law requires, to the Prince George’s and Montgomery County Executives and Councils for their review and approval.
It’s possible, though, that the Commission may not endorse the 9.5% rate hike; and, even if it does, that may not be the end of the story, because the two County Councils have previously adopted conflicting spending affordability limits-- the Prince George’s County Council specified a maximum of 8.0%, while the Montgomery County Council specified a maximum 9.9% rate increase. If the Counties fail to agree to and adopt a compromise by June 1, the budget submitted by WSSC, including whatever rate increase it proposed, will be approved. The approved budget will take effect on July 1.
The entire budget proposal can be viewed at: http://www.wssc.dst.md.us/budget/BudgetFY11/FY11PreliminaryBudgetRollup.pdf
WSSC - Unit Billing Count
Amendments recently adopted to the WSSC Plumbing and Fuel Gas Code (2009 Edition), SP CUS 99-02, Section 3-6 require that separate meters be installed in any mixed-use building, in order to allow for the separate registering and computation of residential and commercial water consumption in the building. The changes alter the ADC formula by requiring that the total number of occupied residential dwellings be factored into the equation, and then allow for existing multi-unit “mixed-use” properties to make use of this new formula -- but only if the building’s commercial uses are separately metered from residential, as set out in 111.5.8 of the WSSC Code. In any affected building which does not have separate commercial meters, the entire building’s consumption will now be billed at the (higher) commercial rate.
Attempting to determine what space WSSC considers a “commercial use” that triggers the defining of a building as “mixed use” for the purposes of this billing change, have received inconsistent responses from the WSSC’s customer care unit. AOBA, seeking to resolve/clarify WSSC’s intent, met with WSSC’s General Manager, Jerry Johnson and its Chief of Customer Care, Rudy Chow.
AOBA shared the various responses that have been received from WSSC staff and requested clarification of the definition of “commercial use.” Johnson and Chow stated that they recognize that the lack of a clear and consistent message on its part has created tremendous anxiety among the property owners, and that it is not WSSC’s intent to create a hardship for building owners.
The General Manager stated that it is “WSSC’s intent that “commercial use” is defined as an income-generating, rented space,” and indicated that WSSC will immediately seek to ensure that a clear and consistent message is in place.
This clarification provides AOBA members some immediate relief on the matter of how far the new policy actually extends -- personnel in the Customer Care Unit had previously asserted that separate meters and commercial billing would be required in spaces serving residential tenants, such as laundry rooms, fitness facilities and community rooms.
AOBA raised two additional concerns with General Manager Johnson: 1) the inadequate notice to customers about the regulation and its unrealistic effective date, and 2) the unreasonableness of adopting a requirement to separately meter buildings without making exceptions for unique features and circumstances; issues that may make separate metering unreasonable or impossible.
Officially, there was about 45 days between when WSSC adopted the rule change and when it would become effective; but its efforts to notify customers (publication in the Gazette) was feeble—no flags on its website, or in customer bills. Many building owners were unaware of the changes to the regulations and, therefore, were unable to comply by the January 1, 2010 effective date.
Some owners who were aware of the date found that it was not physically possible to install separate meters within the time allotted. Typically, the affected buildings are around 30 to 40 years old, and will require consultations with engineers to determine how and where to install the new meters/sub-meters. In order to comply, some affected buildings may also require new risers, mechanical piping and separate hot water heating devices. All of these changes require permits (not typically obtainable overnight), along with payment of the associated fees. Add in the common presence in older buildings of lead or asbestos, extensive destruction and finishing work required for concrete and plaster, and the required inspections for fire, electrical, mechanical and plumbing, and there is considerable unbudgeted expense-- again with barely 45 days’ notice.
The General Manager indicated a desire to be responsive to AOBA concerns, but noted that he and his staff have to work within the confines of the Commission’s Order. For these reasons, AOBA is working with the General Manager on requesting that the Commission consider 1) modifying the start date of the regulation, and 2) amending the regulation to authorize alternative approaches that still fairly and accurately measure the commercial use water when separate metering is impracticable.
Montgomery County
County Adopts 2008 National Electrical Code
On January 12, 2010, the County Council approved Executive Regulation 15-09, which adopts the 2008 National Electrical Code (NEC), with local amendments. The Department of Permitting Services will allow a 60-day grace period to allow customers time to comply with the new regulation. All electrical permits and the electrical plans submitted for review on or after March 15, 2010 must comply with the 2008 NEC. Click here to see a copy of the Regulation: http://www.montgomerycountymd.gov/content/council/pdf/res/2010/20100112_16-1238.pdf
Fire Code Enforcement – Positive Results
AOBA and other members of the business community continue meeting with Montgomery County department heads, in an effort to resolve unreasonable burdens placed on business and property owners as a result of the Montgomery County Fire & Rescue Service’s (MCFRS) enhanced fire code inspection efforts.
Some positive progress has been made regarding the application of current code requirements to existing buildings. AOBA has repeatedly insisted that existing buildings be held to the code standard in effect at the time of construction, unless there is a change in use, or an alteration/modification triggering the threshold for the application of new code standards, or the Fire Marshal determines there is a “distinct hazard.” MCFRS disagreed; however, after researching the matter and consulting with legal counsel, MCFRS now advises that its position is that an existing building is in compliance if it meets the requirements of the code applicable at the time of its construction.
Additional progress has been made in regard to fire protection agreements, scheduling of inspections, continuity of inspectors, billing practices and late fee charges. MCFRS has extended its invoice cycle from 30 days to 60 days, and has capped late fees. The County is also looking into what it can do about the fact that the Codes are not readily available to property owners or the general public. AOBA has long asserted that the Codes adopted by reference as part of the County Code should be readily and easily accessible to the general public, and MCFRS is now looking for a solution. The Fire Code Work Group meets again on February 23 at 9 am, at which it is anticipated that the MCFRS will have reached decisions on a number of the issues that have been raised.
AOBA will continue participating in the larger Fire Code Work Group, but will also continue to have separate monthly meetings with the Chief and AOBA members to address unique concerns that AOBA members may be experiencing. The next AOBA meeting with the Fire Chief is scheduled for Monday February 8 at 10 am. (See details below) The meeting is open to all AOBA members. If you have any questions, please call Lesa Hoover (301) 261-1460.
Pepco Hosts Seminars on Energy Savings Incentives
Commercial members may want to attend an upcoming briefing by Lockheed Martin, administrator for Pepco’s energy efficiency incentive programs. Click here for February dates/locations in Maryland.
Calendar Items
Montgomery County Fire Code Enforcement Meetings with Chief Bowers
February 8, 2010 – Monday
10:00 a.m. – 12:00 noon
255 Rockville Pike -2nd floor
Rockville, MD
Legislative Committee Meeting
February 8, 2010
2:00 pm
GEORGIA WEST APARTMENTS (Located behind Georgian Towers)
8708 FIRST AVENUE
SILVER SPRING, MARYLAND 20910
In the community room located on the Terrace Level
(301) 588-1774 (for directions)
(Parking is available in the county garage or on the street in metered spaces)
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