HomeMy WebLinkAboutPublic Works June 4 20131
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WHATCOM COUNTY COUNCIL
Public Works, Health, and Safety Committee
June 4, 2013
CALL TO ORDER
Committee Chair Barbara Brenner called the meeting to order at 1:30 p.m. in the
Council Chambers, 311 Grand Avenue, Bellingham, Washington.
ROLL CALL
(1 :34:27 PM)
Present: Barbara Brenner, Ken Mann and Pete Kremen.
Absent: None.
Also Present: Carl Weimer
COMMITTEE DISCUSSION
1. UPDATE RELATED TO MULTIPLE FERRY OPERATION ISSUES (AB2013 -162A)
Funding Clarification - Ferry Deficit Reimbursement Funding
Frank Abart, Public Works Department Director, gave a staff report and stated
members of the public have had questions about attributable funding since 2009. Staff put
together a group in 2010 to look into the issue more thoroughly and whether the County
was complying with the ordinance and the law. Staff concluded that the County was in
complete compliance. The County Road Administration Board (CRAB) also looked into
County compliance and also determined the County was doing things correctly. The County
Council can add or increase the subsidy from the road fund at any time.
Brenner stated this is money from the State for counties that have ferry operations.
The State didn't say that the money had to be used for ferry operations. She believes the
County should use the money for ferry operations.
Jeff Monsen, County Road Administration Board, submitted a handout (on file) and
stated State guidance is that the reimbursement is in place only for implementation of the
agreement between Whatcom County and the State Department Transportation regarding
ferry deficit reimbursement. The funds are distributed among Whatcom, Skagit, and Pierce
Counties. Whichever county has had the worst financial year gets more than the other
counties. The term "attributable" is within the statute.
Kremen asked for more information on how the funds are calculated for each county.
Monsen stated the formula is based only on the ferry operation budgets. The counties share
$500,000 per year. The formula calculates the cost of ferry operation expenses compared
to certain revenues. Whichever county has the biggest difference gets the biggest share of
the ferry revenue. The calculation considers two ferry revenue sources, which are fare box
dollar amount and also fuel tax attributable to the boat. The term 'attributable to the boat"
refers to fuel tax that wouldn't exist if the County didn't have the ferry and docks. Certain
maintenance and repair activities wouldn't be included in the calculation for the ferry deficit,
but may influence the general fuel tax distribution a bit. The County can set the policy for
the use of the amount attributed to the county ferry.
Public Works, Health, and Safety Committee, 6/4/2013, Page 1
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Weimer stated the County receives two sources of funds from the State Department
of Transportation. One of the fund sources is this deficit fund. He asked if there are any
requirements for using those two funds, and if the County gets those two funds only
because it has a ferry. Monsen stated the one fund is Whatcom County's share of the deficit
reimbursement. The other fund is the fuel tax that is attributable to the boat. That value
over the years has been significant regarding certain financial decisions made in the past.
Skagit County specifically builds the attributable fuel tax into its rate - setting process. Pierce
County also has a separate ferry fund into which the attributable fuel tax is deposited. They
do that because they choose to, not because they have to. The attributable fuel tax is no
more significant to the ferry than the fuel tax attributable to Hannegan Road is to Hannegan
Road.
Brenner stated the only reason the County gets the money is because it has a ferry.
Monsen stated that's correct for the portion of the ferry deficit.
Mann stated that even if Mr. Monsen's information is the opposite of what he's
saying, it doesn't matter because the 55/45 split is as arbitrary as anything. If the Council
wants, it can just change the 55/45 split and have the exact same impact. It seems to be
much ado about nothing. The 55/45 split is the real political debate.
Brenner stated how they get to the 55/45 split is what this is about.
Kremen stated the issue is where they are or aren't applying this money that
Whatcom County receives because it is a ferry county. He's not hearing a concern about
the 55/45 split. He's hearing concerns about where the money is being allocated. He asked
if Skagit County allocates all the money it gets to the ferry system because their formula is
a 65/35 split. Monsen stated Skagit County increased its fare recovery a few years ago.
They don't have a separate ferry fund, so it's all deposited in the road fund anyway. Pierce
County and Whatcom County have separate funds. It only influences the calculation they
use to set the rates.
Kremen asked if Mr. Monsen is familiar with the Pierce County fare recovery split.
Monsen stated the State set a goal of 80 percent fare recovery rate, but they've never come
close to that amount. When the State set that goal, Pierce County adopted that policy as
well. They achieve a fare recovery of 70 to 75 percent. Pierce County includes capital
expenditures in its rate setting calculation. No other ferry system in the state does that.
Brenner asked the cost of a ferry ticket in Pierce County. Monsen stated the ticket
costs aren't dramatically greater than the other systems, but they also have two boats with
longer runs and greater ridership.
Web -Based Ferry Ticket Project Status
Abart stated he's been working closely with the Treasurer's Office to comply with
State and local requirements for the exchange of funds.
Steve Oliver, Treasurer, stated the web -based ferry ticket project was included in a
request for proposals (RFP) they issued earlier this year. They chose to issue an RFP for a
countywide provider for these e- commerce based transactions. The State auditors had
concerns about departmental activities that are occurring in the county. The staff was
having some performance issues with its current provider. This was an opportunity to
address both of those issues through an RFP. The RFP requires the contractor to have that
project done within 30 days of contract signing. This is a high priority project of the Council
and Public Works Department. He hopes to make a vendor selection this week and get
going.
Public Works, Health, and Safety Committee, 6/4/2013, Page 2
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Brenner asked if that includes paying with a credit card at the boat. Oliver stated
that's a separate conversation he's having with the Public Works staff.
Abart stated there are connectivity and other issues with the boat. There are things
in each RFP that could provide a possible solution. They never know what they will have
until they award the RFP and start talking about it.
Oliver stated they also wrote into the RFP a response for on -board processing
solutions and potentially a shore -side kiosk. They received a number of different proposals.
The Public Works staff is also investigating the kiosk in the courthouse parking lot for its
ability to be used for ferry ticketing purposes. The issue with the on -board processing is
connectivity for real -time authorization. They don't build rugged, weather - resistant
handheld processing units that would be useful in the ferry environment.
Kremen stated the ability to pay the fare onboard with a credit card is a high priority
for him. The technology and connectivity issues can be resolved. It would save the County
money in the long run. Oliver stated the technology exists today. The biggest cost savings
would come from eliminating cash collections on the ferry altogether.
Kremen stated that if they work with enough vendors and the right vendors, they will
be able to resolve the issue and come up with a system that will work on an ongoing basis.
He agrees that eliminating cash transactions is desirable.
Abart stated the RFP's received are encouraging. He hopes to start on this next
week.
Ferry Kiosk Project Discussion, Pilot Project
(2:05:14 PM)
Abart stated he has some concern about the value of a kiosk. He will suggest a pilot
project that is similar to handling nonsufficient funds checks. Just because they take credit
cards, there will be people who don't have cash or a credit card. They need another
mechanism to attach to them. It will also keep track of how big any problem is. It will
provide a mechanism to track and recover those funds.
Jack Louws, County Executive, stated part of the challenge is that the State Auditor
has more requirements on the County than on private business, including bank deposit
requirements and privacy requirements for a person's credit card information. He
appreciates the work staff are doing and is also frustrated, but they are making progress.
They've received eight responses to the RFP. The institution they choose will have
proprietary encryption technology. He's trying to get government as efficient as private
business can be with credit card transactions.
Brenner asked about the system in place currently to take property tax and other
payments by credit card. Oliver stated the activity and card information is on the vendor's
server, not the County's. If there is no connectivity, the information is stored on the device
until transaction authorization occurs. There is some liability to having that handheld device
with stored card information on it.
Mann stated there is cell service on the ferry. There are devices that plug into a cell
phone and accept credit cards. Oliver stated the State indicated that services such as
PayPal or Intuit do not meet compliance regulations, even though some jurisdictions do use
those services.
Public Works, Health, and Safety Committee, 6/4/2013, Page 3
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Louws stated State legislation is behind in its technology requirements and currently
doesn't allow the County to use such devices that plug into a cell phone and provide the
ability to swipe a credit card.
Kremen stated he will bring this information forward to the Washington State
Association of Counties Legislative Steering Committee. Regarding the kiosk, there is
potential value to the idea, but he's concerned about vandalism.
Needs -Based Ticket Discussion and Status
Abart stated the Public Works Department and Treasurer's Office have looked for
ways to eliminate this program due to administrative costs, but it won't happen. They will
try to remove the administrative burden from the Treasurer's Office and create a contract
with the Opportunity Council to take on that administrative task. This will now become a
program. Whenever the government has a program, the cost will probably increase.
Kremen asked if they've heard from the Ferry Advisory Committee on this issue.
Abart stated he has not heard from the Ferry Advisory Committee officially. He heard that
the Advisory Committee will address it soon.
Kremen stated this issue goes beyond an advisory committee because it is a greater
public policy issue. It would be helpful for the Council to get input from the Advisory
Committee.
Surcharge Status
Abart stated the surcharge is in the ordinance and the fee is permanent, from his
perspective. It's a significant portion of revenue that keeps the ferry operations balanced.
Mann asked if ridership changed when the County implemented the surcharge.
Abart stated he doesn't have that information available now. Ridership has stabilized nicely
in 2012.
Mike McKenzie, Lummi Island Ferry Advisory Committee Chair, stated he would like
there to be regular meetings with the County to keep each other informed of what's on their
minds. They didn't know the RFP was out. The committee should be informed of that
process. The intent of the State ordinance regarding attributable funds is clear. County
compliance has never been challenged. The intent is that those funds must be attributable
to ferry expenses. The committee will make a recommendation when it has a quorum at its
next meeting. The online information about State regulations is very enlightening. The
advisory committee recommendation was that a kiosk would not be in their best interest
due to costs and potential vandalism. The 55/45 split is not arbitrary. It's been in place for
40 to 50 years. The Council is supposed to review it every year. The Protect Lummi Island
Community (PLIC) group made recommendations to the advisory committee on the needs -
based ticketing, but the committee has not yet looked at it. The advisory committee will
give a recommendation when it does. There is room for the option of making it a program
of another organization. He would like information about the purchase of punch cards on
the ferry. It doesn't seem to be complicated.
Abart stated they are focused on web -based purchases at this time.
Brenner stated the advisory committee members can get updates by calling Mr.
Abart's office periodically.
Public Works, Health, and Safety Committee, 6/4/2013, Page 4
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Abart stated they've agreed to attend quarterly meetings, but such a meeting has
never been arranged.
Brenner stated meetings should happen when necessary.
McKenzie stated the Advisory Committee would like to operate jointly with the
department and County Council.
Kremen stated the Council could consider having a councilmember from the third
district or the at -large councilmember attend the Advisory Committee meetings.
Bill Lee stated there used to be quarterly ferry and transportation meetings between
residents and staff. They were very useful.
Jim Dickinson stated they've lost ridership on the ferry and working families from the
island. Ferry costs have impacted those things.
Abart referenced the 2012 report of ferry activity he presented to the Council in
March and stated it includes a ridership summary. The number of vehicles using the ferry
went up from 2011 to 2012, and the number of passengers went down. The information
represents the ridership stabilizing.
Kremen stated the demographics on the island have changed. There aren't as many
commuters and families and there are more retirees.
Mary Ross stated there are more island visitors and fewer full -time residents due to
ferry fares. The school population has dropped by half.
Rayma Blake stated the surcharge hit the pedestrian fares disproportionately. It
drove some of the pedestrians into their cars. Reconsider whether the pedestrian fares are
fair.
OTHER BUSINESS
There was no other business.
ADJOURN
The meeting adjourned at 2:50 p.m.
ATTEST:
, Council Clerk
-, Minutes Transcription
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Barbara Brenner, Committee Chair
Public Works, Health, and Safety Committee, 6/4/2013, Page 5