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HomeMy WebLinkAboutFinance March 11 20141 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 WHATCOM COUNTY COUNCIL Finance and Administrative Services Committee March 11, 2014 CALL TO ORDER Committee Chair Sam Crawford called the meeting to order at 11:35 a.m. in the Council Chambers, 311 Grand Avenue, Bellingham, Washington. ROLL CALL (11 :34:03 AM) Present: Sam Crawford, Rud Browne and Barry Buchanan. Absent: None. Also Present: Barbara Brenner, Pete Kremen, Carl Weimer and Ken Mann. SPECIAL PRESENTATIONS 1. PRESENTATION BY COUNTY ASSESSOR KEITH WILLNAUER ON IMPLICATIONS OF TAX APPEALS (AB2014 -102) Keith Willnauer, Assessor, presented and read from information submitted earlier in the day (on file) and answered questions. The British Petroleum (BP) plant site is the County's number one tax payer. He is not allowed to speak to the merits of the valuation appeal to the Board of Equalization outside of executive session. Crawford asked and there was discussion of the impact to Whatcom County should BP's appeal prevail. The appeal proposes two separate levels of taxation. Willnauer stated that the assessment for all four refineries in the state of Washington are performed with the assistance of the Washington State Department of Revenue's advisory appraisal team to ensure uniformity and equalization on very specific and high -value properties. The current valuation in question is $700,000,000. The four County funds that would be affected are the County's current expense fund, the flood fund, the road fund, and conservation futures fund. Many other districts will also be affected. The County current expense fund lost $193,577 of revenue. The County road fund lost $258,536 in tax revenue. In total of all the taxing districts, $915,669 was lost in tax revenue. Also, others in the same levy district would have increased taxes to compensation. For example, someone with a $250,000 average tax valuation would have to pay an additional $78.71 in taxes. Crawford asked if the rest of the county taxpayers pay the amount that BP will not pay. Willnauer stated they do. Every taxpayer in Whatcom County is paying at additional $1.32 per $250,000 for the County's current expense fund. Crawford asked if the rural library district, the Northwest Park and Recreation District #2, and Cemetery District 7 would all lose money, because no one makes up the difference. Willnauer stated that revenue to those districts will vanish. They have no ability to increase their levy rate to absorb the cost. They will lose money. Finance and Administrative Services Committee, 3/11/2014, Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Browne asked and there was discussion of the Council's role in this process and the County's ability to approve or disapprove the appeal. Kremen stated BP and Conoco Phillips are great corporate citizens for the community. BP has been fine with their assessment and paid their taxes for more than 25 years. In recent years, BP has been improving its operation in the amount of $500,000,000 without paying any sales tax. Now BP claims the entire value is less than what they spent on the facility in the last four or five years. If approved, all the remaining property owners in Whatcom County would have a tax increase. Certain tax districts will be out that money. He's disappointed in the situation. Brenner asked and there was discussion of BP's tax amount last year, whether part of this is because all the land they dedicated to open space, and BP's reason for the appeal. Buchanan asked and there was discussion of the State's timeline for the appeal. Mann asked if it's possible for the Board of Tax Appeals to determine the County's assessment is not enough and increase the assessment. Willnauer stated it's not possible. Browne asked and there was discussion of whether there will be an immediate reduction in services for the rural library, the park district, and the cemetery district. Brenner asked and there was discussion of how they use valuations from other states. Kremen stated BP's recent sale of its facilities in California and Texas indicate it is making a bigger investment in this facility, making it more valuable. 2. PRESENTATION REGARDING LAKE WHATCOM RECONVEYANCE FINANCING OPTIONS (AB2014 -103) (12:11:50 PM) Mike McFarlane, Parks and Recreation Department Director, read through the proposal on Council packet pages 43 and 44. He would like direction from the Council. Brenner asked and there was discussion of State timber revenue the County lost when the State maintained it and not using the conservation futures fund for capital facilities on property that has already been purchased. Kremen asked and there was discussion of whether conservation futures fund expenditure restrictions apply to the $1.5 million that was transferred into the conservation futures fund from the park improvement fund. Brad Bennett, Administrative Services Department, answered questions. Crawford stated there isn't enough land around the county to remove from the tax rolls and turn into park land. Reconsider the entire conservation futures fund assessment. Propose to the voters a reduction with a simultaneous increase in the general fund to maintain parks that need a lot of maintenance. He prefers that the Council move the money back into the park improvement fund to be a separate county fund that can be sustainable over a long period of time. Brenner stated and there was discussion of whether or not the County was legally required to be in the conservation futures fund. Finance and Administrative Services Committee, 3/11/2014, Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Jack Louws, County Executive, stated the State Auditor said the County needed to identify where the money was going. According to State rules, the money was undedicated. To correct it, the County could have moved the money to conservation futures fund or passed a resolution to keep the money in the parks fund. The Council decided to move the money back to the conservation futures fund. Either option was acceptable. According to the State, the money is unallocated. The administration treats the money as restricted unless the Council passes a resolution that allows the administration to use the money as unrestricted money. The administration is asking for direction. If they use the money in the conservation futures fund that is unallocated, on an annualized basis, they would use about $40,000 for the maintenance of the reconveyed property. If he moves it forward without a change in direction, they will use general fund money needed to make this happen. Browne moved to recommend that the full Council request the administration bring forward a supplemental budget ordinance to replace the $1.5 million from the conservation futures fund into the parks improvement fund to establish a fund for the future maintenance of park properties. Buchanan asked and there was discussion of whether the County has the flexibility to move the funds from one fund to the other. Kremen stated and there was discussion of the current balance and anticipated annual revenue to the conservation futures fund. The motion carried by the following vote: Ayes: Crawford, Browne and Buchanan (3) Nays: None (0) 3. PRESENTATION FROM CLIFF STRONG, PLANNING AND DEVELOPMENT SERVICES, REGARDING A TRAINING AND EDUCATION PROJECT FOR CITIZENS ON ISSUES SURROUNDING WETLANDS DURING THE DEVELOPMENT PROCESS (AB2014 -104) (12:44:17 PM) Cliff Strong, Planning and Development Services Department, gave a staff report on a proposal to produce videos to educate the public on the different types of wetlands, the rules, the permit process, how the staff can help people, and how they can update the critical areas ordinance (CAO) regulations. Executive Louws has approved funding for the project, and a production contractor has been chosen. This is for information to the Council only. Weimer stated it's a good idea. There has been some public concern recently about some of the people who will be involved. He hopes there will be a statement from the administration about any potential conflict of interest. Jack Louws, County Executive, stated he is proud of the Planning Department for improving customer service. They hope to provide information for the customers to make the process as efficient as possible. Finance and Administrative Services Committee, 3/11/2014, Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 COMMITTEE DISCUSSION AND RECOMMENDATIONS TO COUNCIL 1. ORDINANCE AMENDING THE 2014 WHATCOM COUNTY BUDGET, SEVENTH REQUEST, IN THE AMOUNT OF $95,000 (AB2014 -099) (12:50:58 PM) Buchanan moved to recommend approval to the full Council. Jack Louws, County Executive, submitted a handout (on file) and gave a staff report and asked permission to hire a fulltime project manager. It's in the best interest of the County and Executive's Office. The motion carried by the following vote: Ayes: Crawford, Browne and Buchanan (3) Nays: None (0) 2. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE, ON BEHALF OF THE WCFCZD BOARD OF SUPERVISORS, TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND WATERSHED SCIENCE AND ENGINEERING FOR DEVELOPMENT OF THE HIGH CREEK MANAGEMENT PLAN IN THE AMOUNT OF $69,758 (AB2014 -105) (12 :56:14 PM) Browne moved to recommend approval to the Council acting as the Whatcom County Flood Control Zone District Board of Supervisors. The motion carried by the following vote: Ayes: Crawford, Browne and Buchanan (3) Nays: None (0) 3. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A CONTRACT AMENDMENT BETWEEN WHATCOM COUNTY AND SHANNON AND WILSON, INC. FOR ADDITIONAL ENGINEERING AND TECHNICAL SUPPORT AND WRITING OF THE SYSTEM -WIDE IMPROVEMENT FRAMEWORK PLAN, IN THE AMOUNT OF $180,000, FOR A TOTAL AMENDED CONTRACT IN THE AMOUNT OF $199,955 (AB2014 -111) (12 :57 :12 PM) Buchanan moved to recommend approval to the Council acting as the Whatcom County Flood Control Zone District Board of Supervisors. Crawford asked and there was discussion of why the contract amount is increasing. Paula Cooper, Public Works Department, gave a staff report. 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 (AS THEIR GRANT ADMINISTRATOR) AND JEFFERSON COUNTY TO FUND THE ADOPTION AND Finance and Administrative Services Committee, 3/11/2014, Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 State. IMPLEMENTATION OF SPECIFIC POLICIES WITHIN JEFFERSON COUNTY RELATED TO SMOKE FREE VENUES, SCHOOL DISTRICT WELLNESS, AND SAFE ROUTES TO SCHOOL, IN AN AMOUNT NOT TO EXCEED $25,000 (AB2014- 106) (12 :58:50 PM) Crawford asked for a staff report. Katy Hicks, Health Department, gave a staff report and stated it's funded by the 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) 2. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY (AS THEIR GRANT ADMINISTRATOR) AND ISLAND COUNTY TO IMPROVE HEALTH OF ISLAND COUNTY COMMUNITIES, REDUCE CHRONIC DISEASES AND REDUCE HEALTH DISPARITIES IN ISLAND COUNTY, IN AN AMOUNT NOT TO EXCEED $35,000 (AB2014 -107) (1 :00 :12 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) 3. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND NORTHWEST EDUCATIONAL SERVICE DISTRICT #189 FOR MENTAL HEALTH TREATMENT SERVICES, IN AN ESTIMATED AMOUNT OF $30,000 (AB2014 -108) (1 :00 :40 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 NEW WORLD SYSTEMS CORPORATION FOR CONTINUATION OF THE SOFTWARE MAINTENANCE FOR THE AEGIS PUBLIC SAFETY INTERFACE SOFTWARE, IN THE AMOUNT OF $60,150 (AB2014 -109) (1 :01 :23 PM) Buchanan moved to recommend approval to the full Council and asked for a staff report on what the software is and how it's used. Brad Bennett, Administrative Services Department, stated it's software that allows the County to communicate with the State. Finance and Administrative Services Committee, 3/11/2014, Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Browne stated he's concerned about going with a five -year maintenance agreement because software is typically to be replaced in two years. Jack Louws, County Executive, stated there is an opt -out provision in the agreement. Browne moved to amend to indicate that the contract is approved annually. Crawford stated it's difficult to amend contracts. Browne withdrew the motion. He asked and there was discussion on how they developed this five -year maintenance contract. 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 SOLE SOURCE PROVIDER, BIRCH BAY CHAMBER OF COMMERCE, TO PROVIDE FUNDING FOR OPERATIONAL EXPENSES INCURRED IN THE PROMOTION OF TOURISM IN WHATCOM COUNTY, IN THE AMOUNT OF $32,500 (AB2014 -110) (1:06:05 PM) Buchanan moved to recommend approval to the full Council. Crawford stated there is a concern about duplication of services, but they discussed it. He supports this request. Similar concerns can be revisited during the budget process. This comes from the lodging tax. 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 AN INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY AND THE CITY OF BELLINGHAM FOR MANAGEMENT AND OPERATION OF THE JOINT CITY - COUNTY AQUATIC INVASIVE SPECIES BOAT INSPECTION PROGRAM AT LAKE WHATCOM AND LAKE SAMISH, IN THE AMOUNT OF $70,000 (AB2014- 075A) (1 :07 :42 PM) Browne moved to recommend approval to the full Council. Crawford asked and there was discussion of the County's investment this year versus last year. Gary Stoyka, Public Works Department, answered questions. The motion carried by the following vote: Ayes: Crawford, Browne and Buchanan (3) Nays: None (0) Finance and Administrative Services Committee, 3/11/2014, Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 7. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND GEOENGINEERS FOR SILVER BEACH WATERSHED INFILTRATION MAPPING, IN THE AMOUNT OF $49,986.20 (AB2014 -112) (1 :09:08 PM) Browne moved to recommend approval to the full Council. Crawford asked and there was discussion of which fund this comes from. Kirk Christensen, Public Works Department, answered questions. The motion carried by the following vote: Ayes: Crawford, Browne and Buchanan (3) Nays: None (0) OTHER BUSINESS There was no other business. ADJOURN The meeting adjourned at 1:10 p.m. ATTEST: , Council Clerk -, Minutes Transcription WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON Sam Crawford, Committee Chair Finance and Administrative Services Committee, 3/11/2014, Page 7