HomeMy WebLinkAboutFinance June 17 20141
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
June 17, 2014
CALL TO ORDER
Committee Chair Sam Crawford called the meeting to order at 11:00 a.m. in the
Council Chambers, 311 Grand Avenue, Bellingham, Washington.
ROLL CALL
(11:04:09 AM)
Present: Sam Crawford, Rud Browne and Barry Buchanan.
Absent: None.
Also Present: Barbara Brenner and Carl Weimer.
SPECIAL PRESENTATIONS — WHATCOM COUNTY BUSINESSES
1. INFORMATIONAL BRIEFING FROM WHATCOM COUNTY BUSINESSES,
FEATURING: DAVID PLENKOVICH OF LYNDEN DOOR, IAN RAE OF
CHUCKANUT BUILDERS, AND PETER GRUMAN OF ACCELITEC (AB2014 -132)
John Michener, Port of Bellingham, introduced today's presenters.
Peter Gruman, Accelitec, stated he thanks the Council for the opportunity to present.
Most of their business isn't done locally. They sell software to independent grocery stores.
Their software helps independent grocers differentiate their brand from national chain
groceries through a variety of marketing, targeted messaging, and other programs. He
described how they try to keep local shoppers buying local products from local stores. He
described the business location, size, and number of employees. He would like to see more
technology -based companies in Whatcom County. Many qualified technology graduates
from Western Washington University are available and want to stay here, but there are few
opportunities.
Crawford asked how to bring those companies here.
Buchanan asked and there was discussion about whether Accelitec is required to
have a non - compete requirement for their clients.
Crawford asked and there was discussion about Accelitec work with the local Haggen
stores.
Brenner asked about past and current marketing strategies for younger and older
generations and changing consumer strategies.
David Plenkovich, Lynden Door, submitted and read from a presentation (on file).
Brenner asked and there was discussion about whether their location here is a
benefit because of local available wood products.
Finance and Administrative Services Committee, 6/17/2014, Page 1
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Buchanan asked the plant's manufacturing capacity and their shift schedule.
John Ridder, Lynden Door Executive Vice - President, answered questions.
(11:43:17 AM)
Ian Rae, Chuckanut Builders, submitted and read from his handout (on file).
Brenner asked and there was discussion about how Chuckanut Builders kept going
during the recession. Rae stated his business started in 2010 and focused narrowly on
remodels, which are less volatile than new construction. Being a contractor for the energy
challenge was a way to diversify the work and have a different income stream.
Browne asked what the award is in the energy challenge.
Crawford stated there is an energy saving program to convert street lights to LED in
cities.
Kremen asked and there was discussion about the population threshold of the
competition in which the City of Bellingham is enrolled and whether Bellingham is at a
disadvantage because it is smaller and in an area that is not very sunny. Rae stated it is for
cities between 50,000 and 250,000 people. The competition measures energy use
reduction per capita. Solar energy works pretty well in this area. They've already captured
a lot of energy savings in this community. Infrastructure is in place to gain additional
efficiencies.
Crawford thanked all of today's presenters.
COMMITTEE DISCUSSION AND RECOMMENDATIONS TO COUNCIL
1. ORDINANCE AMENDING ORDINANCE 2012 -050 (AMENDMENT #1)
ESTABLISHING THE BIRCH BAY DRIVE AND PEDESTRIAN FACILITY PROJECT
FUND AND ESTABLISHING A PROJECT BASED BUDGET FOR THE BIRCH BAY
DRIVE AND PEDESTRIAN FACILITY PROJECT (AB2014 -216) (11:58:53 AM)
Browne moved to recommend approval to the full Council.
Jack Louws, County Executive, gave a staff report.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
2. ORDINANCE AMENDING ORDINANCE 2014 -13 (AMENDMENT #1)
ESTABLISHING THE TELECOMMUNICATIONS SYSTEM REPLACEMENT FUND
AND RELATED CAPITAL BUDGET APPROPRIATION (AB2014 -218) (12:00:18
PM)
Crawford asked and there was discussion about why this is being amended.
Finance and Administrative Services Committee, 6/17/2014, Page 2
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The following people answered questions:
• Jack Louws, County Executive
• Perry Rice, Administrative Services Department
• J.R. Simmons, COMGroup, Inc.
Buchanan moved to recommend approval to the full Council.
Browne stated he supports upgrading the phone system and data infrastructure. He
asked and there was discussion about the high per -unit costs and whether they considered
a hosted solution compared to a County -owned infrastructure solution. He asked the
number of employees and handsets they are planning for.
Simmons gave a staff report and stated they plan for 1,170 users, including devices
that aren't associated with an actual employee. The phone system component is about $1
million. An additional $387,000 is for interactive voice response call center functionality.
Network upgrades are $432,000. The amount also includes a contingency and sales tax.
Ongoing maintenance is about $108,000 for the full solution. These estimated budget
amounts are high, and they expect actual proposals to be less. The costs paid to the
telephone company for telephone lines aren't part of this budget because there is an
existing ongoing telephone expense. This system replaces the other without substantially
affecting the amount paid for telephone lines. The break -even point for a premise -based
solution compared to a hosted solution is at 41 months. A hosted solution is a good solution
for short term with fewer upfront costs. Over time, it will cost more. A hosted solution is
good with small customers. The payback gets shorter when the organization gets larger.
Browne stated make sure they take a broad approach when asking people to provide
a quote and when considering different options for solutions. Simmons stated they would
accept hosted solutions in the request for proposal (RFP) process. A premise system has
better disaster recovery.
Browne asked when the County RFP is released and due. He stated and there was
discussion about extending the RFP response time to 90 days instead of 30 days.
Kremen stated he would consider extending the process a couple of weeks, but not
90 days. He asked and there was discussion about how technologically advanced is the
system they're pursuing.
Brenner stated she would not consider extending the bid process because this is a
high tech industry in which the vendors are very attuned to the bid process.
Browne stated his issue is making sure they have a wide variety of technological
solutions, which will impact productivity. A hosted solution includes a product refresh every
three years. He is concerned about soliciting the hardware solution instead of a hosted
solution. He asked and there was discussion about whether they have encouraged
equipment refurbishment with the bid vendors.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
Browne asked for a copy of the RFP, the questions the bidders asked, and the
County's responses to the bidders' questions.
Finance and Administrative Services Committee, 6/17/2014, Page 3
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3. ORDINANCE AMENDING ORDINANCE 2008 -025 (AMENDMENT #5), PROJECT
BUDGET NO. 2, WHICH ESTABLISHED THE INITIAL EAST WHATCOM
REGIONAL RESOURCE CENTER PROJECT BUDGET (AB2014 -219) (12:24:04
PM)
Browne moved to recommend approval to the full Council.
Crawford asked and there was discussion about why they are asking for this
increase; why they can fund it from the economic development investment (EDI) program,
which is for economic development; and why there is $30,000 for Leadership in Energy and
Environmental Design (LEED) certification. He would like information on how much it would
have cost to build the building without LEED components, how much the LEED components
and certification cost, and the amortization of LEED costs. The County has many capital
building projects coming up. If they have to spend millions of extra dollars on a project, he
wants to know if it's worth the investment.
The following staff answered questions:
• Jack Louws, County Executive
• Mike Russell, Administrative Services Department
Kremen stated things weren't the same a decade ago. Federal and State grants for
this project required the LEED certification. Technology has improved over the years. This
facility is in an area that is colder in winter and hotter in the summer. It's difficult to
compare that facility with one built with conventional construction in Bellingham.
Calculating those differences in costs is understandable, but not practical.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
4. ORDINANCE AMENDING THE 2014 WHATCOM COUNTY BUDGET, TWELFTH
REQUEST, IN THE AMOUNT OF $2,312,053 (AB2014 -220) (12:39 :05 PM)
Buchanan moved to recommend approval to the full Council.
Browne asked if they are required to spend the money they allocate and what the
County's obligation is if it doesn't like any of the telephone system bids.
Jack Louws, County Executive, answered questions.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
S. RESOLUTION IN THE MATTER OF THE SALE OF SURPLUS PROPERTY AND
SETTING OF A DATE FOR PUBLIC HEARING PURSUANT TO WCC 1.10
(AB2014 -229) (12 :40 :55 PM)
Browne moved to recommend approval to the full Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
Finance and Administrative Services Committee, 6/17/2014, Page 4
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6. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AWARD BID #14 -31
AND ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND THE LOW
BIDDER, JANSEN, INC., FOR THE LOWER CANYON CREEK PHASE 2,
SCHEDULE B RESTORATION PROJECT, IN THE AMOUNT OF $888,963.29
(AB2014 -236) (12:41 :41 PM)
Buchanan moved to recommend approval to the full Flood Control Zone District
Board of Supervisors.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
COUNCIL "CONSENT AGENDA" ITEMS
1. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND PIONEER HUMAN SERVICES
FOR OPERATION OF THE WHATCOM COUNTY BEHAVIORAL HEALTH TRIAGE
CENTER, IN THE AMOUNT OF $545,140 (AB2014 -230) (12:42 :31 PM)
Buchanan moved to recommend approval to the full Council.
Browne asked and there was discussion about the format for providing information
about contracts that come before the Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
2. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A FIVE -
YEAR LEASE AGREEMENT BETWEEN WHATCOM COUNTY AND MERIDIAN
SCHOOL DISTRICT FOR SHERIFF'S OFFICE SUBSTATION, IN THE AMOUNT
OF $46,170 (AB2014 -231) (12:44:21 PM)
Browne moved to recommend approval to the full Council.
Crawford asked and there was discussion about the location of this substation and
other substations.
Jeff Parks, Sheriff's Office, answered questions.
Browne stated he likes that this is co- located with the school.
Brenner stated she also agrees that the location is great.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
Finance and Administrative Services Committee, 6/17/2014, Page 5
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3. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND WHATCOM FAMILY AND
COMMUNITY NETWORK FOR DELIVERY OF PREVENTION STRATEGIES TO
REDUCE RISK FACTORS FOR SUBSTANCE ABUSE, IN THE AMOUNT OF
$25,000 (AB2014 -232) (12:51 :01 PM)
Browne moved to recommend approval to the full Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
4. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND KULSHAN SERVICES, LLC,
FOR DRY WEATHER OUTFALL INSPECTIONS AND PRIVATE STORMWATER
FACILITY MAINTENANCE EDUCATION AND INSPECTIONS, IN THE AMOUNT
OF $45,949 (AB2014 -233) (12 :51 :42 PM)
Buchanan moved to recommend approval to the full Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
S. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND WILSON ENGINEERING, LLC,
FOR CONSTRUCTION SERVICES FOR CORONADO- FREMONT STORMWATER
IMPROVEMENTS, IN THE AMOUNT OF $65,852 (AB2014 -234) (12 :52 :31 PM)
Browne moved to recommend approval to the full Council.
Brenner stated they are contracting out the entire service, and the County doesn't
have to oversee it.
Browne stated this contract does require staff time to put out the bid, examine the
bids received, and oversee the contract.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
6. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND SARGENT ENGINEERS, INC.,
FOR DESIGN OF PAINTING SYSTEM AND CREATION OF PLANS AND
SPECIFICATIONS FOR THE SLATER ROAD /NOOKSACK RIVER BRIDGE NO.
512 PAINTING PROJECT, IN THE AMOUNT OF $28,449.49 (AB2014 -235)
(12 :54 :38 PM)
Browne moved to recommend approval to the full Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
Finance and Administrative Services Committee, 6/17/2014, Page 6
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7. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AWARD BID #14 -21
AND ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND THE LOW
BIDDER, ANDGAR CORPORATION, FOR CENTRAL PLAZA HVAC UPGRADES, IN
THE AMOUNT OF $69,176,88 $69,176.68 (AB2014 -237) (12:55:42 PM)
Buchanan moved to recommend approval to the full Council.
Crawford asked what they are doing and what phase the project is in.
Mike Russell, Administrative Services Department, answered questions.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
8. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND OPPORTUNITY COUNCIL FOR
PROGRAMMATIC AND ADMINISTRATIVE SERVICES ASSOCIATED WITH THE
OPERATION OF THE HOUSING AND ESSENTIAL NEEDS PROGRAM, IN THE
AMOUNT OF $1,354,277 (AB2014 -238) (12:58:38 PM)
Buchanan moved to recommend approval to the full Council.
Crawford stated this expense does not come from the general fund.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
9. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A
COMMERCIAL LEASE AGREEMENT TO RENT PARKING SPACES AT THE
CORNWALL CENTER FOR THE BELLINGHAM SENIOR ACTIVITY CENTER
(AB2014 -242) (12:59:40 PM)
Crawford asked and there was discussion of why the cost more than doubled and
about traffic on Lookout Mountain trails.
Mike McFarland, Parks and Recreation Department Director, answered questions and
gave a staff report.
Browne moved to recommend approval to the full Council.
The motion carried by the following vote:
Ayes: Crawford, Browne and Buchanan (3)
Nays: None (0)
OTHER BUSINESS
Crawford asked and there was discussion about scheduling regular County Executive
updates to the Council.
Finance and Administrative Services Committee, 6/17/2014, Page 7
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Jack Louws, County Executive, updated the Council on recent events regarding an
Executive Order reflecting State Senate Substitute Bill (SSB) 5173 that created two new
unpaid calendar holidays per year for religious purposes, a purchase and sale agreement on
park property in Birch Bay, closing on the State Street property in June, signing the contract
for dolphin replacement at Gooseberry Point, and completion of the Executive - authorized
contract report through May.
Crawford asked and there was discussion about legal counsel response to
information sent from Zender Thurston regarding Joint Board expenditures. He would like
the Prosecutor's Office to respond to what this is. Louws stated he has a meeting with legal
counsel and they plan to provide a response. He will provide that information to the
Council.
ADJOURN
The meeting adjourned at 1:12 p.m.
ATTEST:
Dana Brown- Davis, Council Clerk
Jill Nixon, Minutes Transcription
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Sam Crawford, Committee Chair
Finance and Administrative Services Committee, 6/17/2014, Page 8