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HomeMy WebLinkAboutSpecial Committee of the Whole November 1 20121 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 Special Committee Of The Whole November 1, 2012 CALL TO ORDER Council Chair Kathy Kershner called the meeting to order at 9:35 a.m. in the Council Chambers, 311 Grand Avenue, Bellingham, Washington. ROLL CALL (9:05:37 AM) Present: Barbara Brenner, Kathy Kershner, Bill Knutzen, Ken Mann, Pete Kremen and Carl Weimer Absent: Sam Crawford DEPARTMENT PRESENTATIONS REGARDING WHATCOM COUNTY 2013 -2014 PROPOSED BUDGET (AB2012 -332) Public Defender Jon Komorowski, Public Defender's Office Director, stated that since he's come into the office, conflict cases were 80 percent higher than they are now. They've been able to save the County tens of thousands of dollars in conflict costs per year. In 2011, they saved the County over $100,000 due to rewriting contracts. He anticipates a similar savings this year. The City of Bellingham now handles the public defense of its own misdemeanor cases, saving about $16,000 per year. They decided to eliminate a social worker position, saving $72,000 plus benefits each year, and contract the case work instead. He's mindful that they have to be careful stewards of taxpayers money. The caseload is steady, other than mental health commitments. The office is expected to do 566 mental health commitment cases. He handles over 300 of those himself. He also handles 72 fugitives, a couple of homicides, and manages the office. Weimer stated Public Defender office employees have testified that they can no longer adequately defend people because of recent wage freezes. Komorowski stated he disagrees with that assessment. The attorneys are excellent and highly motivated. He understands the necessity of a wage freeze. Generally, the office morale is high. When there are 16 lawyers in one office, there will always be issues. Other partners in the criminal justice system, judges, and members of the Bar will say that they deliver high quality service to clients and taxpayers. Knutzen asked which .2 fulltime equivalent (FTE) position was cut in 2012. Special Committee of the Whole - Budget, 11/1/2012, 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 Julie Wells, Public Defender's Office, stated a rapid border federal grant was cut, so they cut three positions. Komorowski stated those were support positions, not attorney positions. Kremen stated they have one of the best public defender programs in the state. Their clients get as good or better representation as any county in Washington state. They are fortunate to have a Public Defender's Office that provides high caliber representation. The rapid border prosecution money was cut. It totaled about $525,000 a year and impacted the Public Defender's Office. The taxpayers are getting very good service from the Public Defender's Office. The clients are getting excellent representation. Council Budget Work Session (9:13:49 AM) Kershner asked if departments worked within their 2012 budgeted amount or the actual budget amount, without their budget lapse, when the Council told departments to work within their existing budgets. Jack Louws, County Executive, stated the departments worked with their 2012 budget, but the administrative services charge was less, so their total budget was generally less. Dewey Desler, Special Projects Manager, stated the departments all had their base budget. Various costs go up or down, but all staff was retained. Kershner stated some governments have a policy that their departments must spend all their money, or they lose it the next budget cycle. She wants to make sure Whatcom County doesn't have that policy. Mann asked the process today and going forward. Desler submitted and read from a handout (on file) of technical corrections. Kershner referenced the emergency medical service (EMS) budget adjustment of over $1 million and asked if that amount is in addition to what is already budgeted. Louws stated it is. They budgeted the same amount from last year. Bellingham hadn't submitted it's estimate to the County yet. The Bellingham labor agreements were open. To catch up on the labor agreements, an $800,000 increase is required. He negotiated with the Mayor. Three medic staff are retiring at the end of 2013. Some of that cost will go away at that time, which will allow the County to move more money into to the Ferndale medic program. He decided to not allow them to expand at the pace they were, to control costs. There is an escalation of costs within the program that is not sustainable at this time. He and the Mayor are putting together a new program to control costs prior to the departments making their decisions. At this time, the County doesn't have many ways to control the costs. The money comes from the reserve funds, not the general fund. Bellingham knows that Whatcom County must have a much larger role in terms of being able to set the budget, otherwise the system will collapse. The County can't afford to absorb the costs from the general fund, which already includes $1.4 million, plus a one percent increase. Kershner asked if this is an increase of $1 million on a $1.4 million budget amount. The Bellingham Herald should write this up as front page news. Special Committee of the Whole - Budget, 11/1/2012, 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 Knutzen stated the $1.4 million comes out of the general fund. Other money goes into the EMS. He asked if the fifth unit is up and running. He asked the cost per unit for Whatcom County. Desler stated there are four units in Bellingham and a lieutenant structure called Medic 6 that is mid - management. It doesn't provide a lot of service. There is also a half time unit operating in District 7 that serves the western portion of the county, and will operate countywide if necessary. The County puts in about $1.45 million per year in a contract designed to go up one percent per year. The City also contributes an additional one percent per year. The remainder of the money comes from a fund that will have $4 million at the end of 2012. The EMS fund is funded by sales tax. The City of Bellingham has requested about $2.2 million from that fund each year. The County put in a budget of $1.9 million. The technical adjustment that needs to be made is based on what the City says it now needs for 2013. Kershner asked if the City wants $1.3 million in 2014 in addition to the $1,087,000 increase for 2013. Desler stated it is not in addition to the increase in 2013. Knutzen stated there are only four units, and Whatcom County is paying well over $4 million total. He asked how much the County is paying in total. Desler submitted and read from a handout (on file) and stated the EMS fund pays the City $2.93 million in 2013. The County pays another $1.45 million from the general fund. There are also fees received from insurance companies, Medicare, and Medicaid. The cost increase is not just based on cost increases occurring at the City of Bellingham. The labor settlement pushed many costs into 2013. There are also increasing problems with collecting fees from the Medicare and Medicaid systems. Maintaining a system like this will result in more costs being pushed to the local government from the federal and state government. The average cost per unit is about $1.9 million. Louws stated $441,000 fewer fees are expected this year from last year due to Medicare and insurance changes. Structural changes are happening that are creating huge challenges. Mann asked about labor increases. Desler stated labor costs are about $400,000 annually. Mann stated the technical correction amount of $1 million includes an increase of $400,000 for labor and loss of revenue from the Medicaid and Medicare in the amount of about $400,000. He asked what makes up the rest of that amount. Louws stated increased What -Comm fees are included in that amount. Desler stated the County budgeted $1.9 million in 2012. The City asked for an additional $300,000. When the administration prepared the budget, they prepared it at the $1.9 million level, not $2.2 million level. The total increase is an accounting budget issue over 2012, including increased costs of medic staff and the loss in revenue from the healthcare industry. Mann asked if the technical adjustment of $1,087,000 will come from the EMS fund. Desler stated that's correct. Weimer asked for an explanation of how the numbers on page 68 of 2013 -2014 Budget Volume I match the numbers in this discussion. Marianne Caldwell, Administrative Services Department, stated the $2.6 million in Volume I also includes the criminal justice portion. The tax requires that two - thirds of the Special Committee of the Whole - Budget, 11/1/2012, 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 EMS fund revenue goes to EMS, and the remaining one -third goes to criminal justice. The combined amount of sales tax received is $2.6 million. Only part of that goes to EMS. (9 :33:50 AM) Kremen stated the criminal justice portion goes exclusively to the municipalities, because the City said it would not support the measure unless one -third of the tax revenue went to help their criminal justice programs. Desler stated the law requires that one -third go to criminal justice. Kremen asked if it's split evenly. Desler stated the County gets 60 percent of the money and the cities get 40 percent of the money. One -third of all the money collected must go to law and justice. The County may use the other two - thirds for the things the County wants. The County decided it will all go to EMS. The County has agreements with the cities that they share that revenue with the County. Kremen stated that when this EMS program started in 1974, the City of Bellingham and Whatcom County evenly shared the cost of the EMS program, at $30,000 each. The population was about 120 percent less than it is now. He asked the split today. The split is not even anymore. Desler stated the County provides about $1.45 million from the general fund, and the City provides about $1.1 million. Kremen asked why the County pays about 25 percent more. Desler stated seven years ago, the City said it would adjust the way it delivers the service to spend more money on their basic life support (BLS) operations, which everyone accepted. The one percent increase is built on the $1 million the City spent at the time. The County will spend about $2.9 million in 2013, which goes to the City of Bellingham. Part of increase for 2014 is to help Fire District 7 complete training and deployment of their staff. Kershner asked why that's delayed to 2014. Louws stated the County can't afford it now. Kershner stated they may not be able to afford it in 2014. Louws stated they may not. If the County can get the technical oversight group together and develop a service - oriented contract, the County will know where it is at financially. At that point, he hopes Whatcom County is an equal partner in terms of controlling the system costs. They plan to set up the new system next year so they can set budget parameters. Unless they have more money to put into the system, they will have to reduce the amount of people on the ground providing the service. They aren't going to be able to afford these huge increases in costs with the current revenue. The Mayor knows the City can't afford these increases also. When reserves become too low, the City's $1.1 million contribution must go up proportionately with the County's. There is equal tension. He would like the opportunity to solve this with the City. They are making good progress. Kershner stated districts are also taxing their district members, who are paying twice. Kremen stated he agrees with Councilmember Kershner. He pays more to his fire district than he does to the Whatcom County general fund. Whatcom County is the only county in the state that pays for EMS service for the municipalities. Special Committee of the Whole - Budget, 11/1/2012, 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 53 Mann stated he doesn't have a problem with the federal government passing costs to them locally. It's a local service. He asked why they would want the federal government to pay for it. Desler stated the federal government says they will get less, and also says they can't bill the client any more. Mann asked if the federal government requires a certain level of service. Desler stated it doesn't. The level of service (LOS) is a local choice. Mann asked how the federal government mandate constrains or obligates the County to perform a certain way. Desler stated it's called balanced billing. If it costs more to deliver the service than the federal government is willing to pay, the County can't bill the balance to the client or insurance company. Mann stated the community decided to provide a more sophisticated system, with a lower response time and more highly- trained paramedics, than the federal government requires. Desler stated the federal government will pay only so much based on medical circumstances. Kershner stated the government keeps shrinking the amount it pays for Medicaid and Medicare services. The County can't bill the patient for the difference in the cost. (9:49:21 AM) Desler stated the insurance companies have the same financial restrictions as Medicare. That pushes the providers to figure out where the money comes from. When transport is provided by a hospital, the hospital does all kinds of cost shifting that masks the costs. The County's system of providing the service with firefighters and paramedics employed by the fire department doesn't allow them to mask those costs. Mann asked if the only way to solve the discrepancy between federal government reimbursement of pre - hospital emergency transport is if the County had less expensive pre - hospital emergency transport or more revenue from the EMS tax. Desler stated that's correct. Louws stated all local governments get used to funding streams from the federal and state governments. They build programs around those funds, thinking they're going to be available every year. In a situation like this, when things change at the federal level and there is a $441,000 shift from one year to the next, it's difficult for the County to react. This year, they're making up the difference from the reserves. The decision is whether they are going to backfill that gap and, if so, which service will be modified or eliminated so things balance. Their goal is to provide as many services to the community as possible, with the money they have. Ultimately, they always try to make the services equal to the available revenue. They will be faced with one of many of these scenarios in the next few years. Mann stated it's easy to complain about the federal government over - spending and having deficits. On the other hand, they complain about the federal government not paying for local services. It's important for him to understand how those mechanisms work. It's much easier for the federal government to stop writing a check than it is for the local government to change it's delivering mechanisms. Louws stated that if the federal government weren't a part of the system, the local government would develop and take care of the system internally, as part of its ongoing Special Committee of the Whole - Budget, 11/1/2012, 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 53 cost. Since the federal government began to contribute many years ago, the federal contribution has become institutionalized. Kershner stated everyone pays into Medicare. It's not federal government money. It's taxpayer money that comes back to citizens in healthcare services. It's troublesome when the system is managed poorly at the federal level and the amount coming back to the taxpayers is reduced. Brenner stated the local government expects to see a certain amount returned from the federal government for emergency services. The federal government doesn't do well in reaching out to people eligible for Medicare or make it easy for her to understand. The federal government almost intentionally makes things so complicated and costly that people won't do it. She asked how other counties pay for EMS. Desler stated other jurisdictions have an EMS property tax. Many cities use their general fund money to pay for EMS. Brenner asked if other counties and cities work unilaterally or together. Desler stated there are different structures and different methods of delivering the service. Brenner asked if Medicaid receives federal dollars. Desler stated it does. It is 50 percent state and 50 percent federal. Brenner stated a big issue is getting people who need it on Medicaid. It's difficult to coordinate with the federal government. There is a lot of federal responsibility that they don't do a good job on. Mann asked the reason the federal government won't allow the County to pass on costs. Desler stated it's probably due to pressure from constituents. Constituents don't want to pay more. Weimer asked if there is an analysis of what services would look like if Medicare paid the entire cost. Desler stated there is not. Weimer stated that if they are going to talk to the public, they need to paint a picture of what the Medicare services actually pay for. Desler stated healthcare changes and evolves. Most response is designed to serve about ten or twelve percent of the population. The vast majority of the users are older people with disabilities who have sudden attacks or a chronic condition. Fifteen or twenty years ago, they used to care for people more intensively in the hospital. Today, people are in and out of the hospital quickly. It is designed to reduce costs. That puts lots of pressure on this kind of response. When someone has a problem, they are home, not at a hospital. Weimer stated the federal government and insurance companies are trying to push those costs down, and Whatcom County wants to provide the best services possible to keep people alive. He wants to know what that difference is. They have to decide whether they will administer medicine at a people's homes or whether people have to wait until they get to the hospital. Desler stated that's correct. One option is to have a paramedic and EMT in the vehicle working together at the same time. Weimer asked if Medicare would come close to paying for that. Desler stated it would not. It pays a certain rate. Louws stated the County has a contract with St. Joseph Hospital for jail inmates at a 46 percent discount from published rates, which is close to federal rates. People who pay Special Committee of the Whole - Budget, 11/1/2012, 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 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 out -of- pocket or private insurance subsidize the shortfall. The federal government mandates the reimbursement rates. West coast reimbursement rates are the lowest in the nation. It doesn't do them any good to have a great program, and then starve it to death. Kremen stated they all want the federal government to reduce and eliminate the deficit. There are enormous inequities in the system. Florida reimbursement rates is almost twice what it is for the same service. There is no equity in that. They all pay the same amount into the system. It's about political clout. As the federal deficit accelerates from a surplus to $16 trillion, local reimbursement from the federal government has declined more than 50 percent. Knutzen asked if there is a contingency plan if they can't work things out for this contract. Desler stated there is not. He hopes they will find a way to reduce costs and extend the ability to keep service costs within the available revenue. Knutzen stated Whatcom County, at a cost of $1.9 million per unit, is on the high end of the service cost scale. Kershner stated the system is cannibalizing itself. If they can't figure this out, the system will have spent all the money by 2015, and they can't fund an EMS in Whatcom County. Brenner stated a lot of it will be up to the employees in the system. Maybe they've had a reality check since the last time this came up. (10:10: 58 AM) Knutzen stated he talked to Frank Abart regarding questions that came up in an email with the Building Industry Association of Whatcom County (BIAWC) (on file). He read from the email and asked about eliminating the practice of in -house construction surveying. There is a concern from people about retribution for asking those questions. Frank Abart, Public Works Department, referenced his responses to the questions in an email dated today (on file). The County will spend over $2 million on outsourced services in 2011 and 2012. Almost all construction projects include a large part of outside surveying, but not all. Surveying crews do many activities, including property research to answer councilmember questions. There is a need for the in -house service for maintenance and operations (M &O) or locating lines. They do use in -house service on construction projects regularly on Lummi Nation projects. That's the County's contribution to that partnership. For major projects, they do a tremendous amount of outsourcing. Another issue was hydro- seeding. All hydro- seeding is contracted out during projects. Only in -house hydro- seeding is for the County's own maintenance. They also discussed the mowing issue yesterday at a meeting with Councilmember Knutzen. Knutzen referenced the mowing service and stated that for $1.5 million, they can hire a lot of kids with weedeaters. The County has invested a lot of money in replacing mowers. It's a large budget item that they continue to deal with every year. The County must also deal with people who sue the County because their windshield got broke by a County mower. The County would get out of that situation as well. Abart stated the County is ultimately still responsible. The County would require the contractor to have liability insurance. A lot of contractors can't or won't acquire that level of insurance, which is about $1 million or $2 million. Special Committee of the Whole - Budget, 11/1/2012, Page 7 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 Knutzen stated any contractor who would bid the project would have liability service. Kershner asked if the $2 million being contracted out is just for operations, because the County contracts out for capital projects. Abart stated it is the engineering and survey services in the capital line item. Kershner asked if that is for projects such as a road resurface, a new roundabout, or a new traffic signal. Abart stated it is. Kershner asked if the County or a contractor resurfaces the roads. Abart stated the County contracts resurfacing work. (10:21:37 AM) Kershner referenced Lincoln Road improvements and asked if it was mostly contracted out. Abart stated it was. Kershner asked if the County can do projects like that for $2 million per year. Abart stated the $2 million budgeted for professional services includes multiple projects. Kershner asked if the budget item for capital projects includes the actual project work. Abart stated they have project -based budgets that ought to be included in the total. Joe Rutan, Public Works Department, stated the $9 million line item for capital work includes preliminary engineering, right -of -way acquisition, and construction. The $2 million is just for professional services for preliminary engineering and right -of -way when they hire consultant engineers, surveyors, or right -of -way buyers. The remaining $7 million is for in- house work and construction. The construction is almost always contracted out, but that is separate from the professional service work. The annual construction program will list which projects will be done with County forces. It's very limited. The State limit for County forces is $1.8 million, but the County stays around $400,000. Kershner stated that the entire budget for the department in 2013 is $52 million. Much more than $2 million is contracted out. Abart stated they contract out a total of about $10 million, which includes work for flood, stormwater, paving, and maintenance and operations. Kershner stated it is about 20 percent of the total budget. Brenner stated she has an issue with the on -call list. Contractors don't bid to be on the on -call list because the equipment is expensive and they don't know for sure if they're going to be used. The County should stop purchasing expensive equipment. Instead, let the contractors handle everything through the on -call list. One of the largest contracting firms in the State agreed to prioritize Whatcom County above everything else if the County made them the on -call provider. Otherwise, they can't buy equipment to sit. The County should consider looking at the on -call service process differently, and discontinue buying equipment for emergency services. Abart stated the on -call contracts are for the smaller projects. The nature of on -call service that the County doesn't know if or when the work is needed. The County may never need the work. That's why it's difficult to go to one contractor. Special Committee of the Whole - Budget, 11/1/2012, Page 8 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 Brenner stated it's more likely that a contractor won't ever be called if the County provides the service, and a contractor is backup to the County. There are well- trained private companies who could respond at a moment's notice. The County needs to change the way it does on -call services. Abart stated things will change drastically, because the State Auditor has recently issued an opinion about the process of on -call work. Kershner stated she heard that the Public Works Department is planning to let 160 miles of road go to gravel. She asked if that is the budget. Abart stated he doesn't know anything about it. Kershner asked if they plan to let asphalt roads revert to chip seal. Louws stated the County traditionally does 60 to 80 miles of chip seal in a year. Multiply that over a biennial budget equals about 160 miles of chip seal. Abart stated that is a preventative maintenance activity. It's not a conversion. Kershner referenced the Lummi Island Ferry Task Force recommendations and asked about the recommendation to implement handheld credit card readers to collect fares. Abart stated an internal committee is reviewing the option. The plan is to address it in 2013. Kershner stated she would like to see the discussion expedited. The courts have a system where people can pay via credit cards online. It's been a year. Abart stated the subject is on the schedule for consideration. The Task Force said it would cost around $26,000, which is a low estimate. Kershner moved to expedite the Lummi Island Ferry Task Force recommendation regarding handheld credit card readers, to implement the recommendation within the first quarter of 2013. Kremen stated it looks easy to implement the service, but companies charge a fee of $2.75 per transaction. If the transaction fee is two or two and a half percent, that would be nice. Brenner stated churches and nonprofits don't have much money, and they have that ability. If done efficiently, it wouldn't be costly. Abart stated they budgeted $30,000 in the 2013 ferry budget to look at this service. Kershner stated she's heard that the Ferry Advisory Committee has had to submit a public records request to get information it needs to have discussions and make decisions. Abart stated he's not aware of any public records request from the committee. The only issue is that the committee members are beginning to request information from department staff rather than following the process outlined in the ordinance. The information is supposed to come through the Executive and Council. Knutzen referenced the mowing program and stated he's still not comfortable with spending $1.5 million. The State Department of Transportation (DOT) doesn't mow the State roads nearly as often as the County mows. Farmers used to mow their portion of the roads. See if anyone in the private sector would like to bid on the service. They may save the County money. Louws stated he's heard the concern. At this point, the Council needs to make motions regarding specific changes to the budget document. Special Committee of the Whole - Budget, 11/1/2012, Page 9 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 Kershner amended her motion and moved to expedite the Lummi Island Ferry Task Force recommendation regarding handheld credit card readers, to implement the recommendation within the first quarter of 2013, without increasing the Public Works Department budget and without dropping any other very important program. She's asking for information from the administration. For the past year and a quarter, the Council has heard nothing about any progress other than it will be expensive. She would like a report. The motion carried by the following vote: Ayes: Brenner, Kershner, Knutzen, Mann, Weimer and Kremen (6) Nays: None (0) Absent: Crawford (1) Knutzen moved to put out a request for proposals (RFP) to contract the County mowing program, a $1.5 million contract plus equipment costs, within the next year. He wants to find out what it would cost the private sector. Louws stated it's important for the Council to make a clear and concise motion, so he knows exactly what they're looking for. A request for proposals can be misinterpreted in many ways. There are labor issues and ramifications for snow removal. It can get very complicated. Mann stated the motion isn't part of the budget. It can be done outside the formal budget process. Louws stated that if the County is willing to go out for bid, it must be willing to let the contract. The Council can't make the private sector go through the process just to see how much it will cost. Council needs to decide whether or not it wants to go in this direction. It may be legal to put out an RFP with the understanding that they're just interested in seeing what the results are, but may not be ethical. Brenner stated an RFP depends on the wording. She supports moving in that direction. The Council can make a motion to move in that direction. Louws stated the Council may make a motion. Understand what they're really going to get. One result is that people will be concerned about their jobs. Know if they are willing to go through that. Know exactly what they want to achieve through the motion. Brenner stated Whatcom County cross - trains employees. There should be something else available for that employee. It doesn't mean that employees will lose their jobs. She wants to know from Public Works staff how it can be done. Knutzen withdrew his motion. He will work with Public Works Department staff to figure out what direction he wants to go. Brenner moved to change the on -call process to allow private sector bidders to be first in line for on call emergency work, before the County does the work. Begin the transition in that direction. Kershner asked if Councilmember Brenner intends to increase the budget, so the County can pay the on -call providers. Brenner stated it won't happen this year. She wants to see a transition. It won't cost more. The people who do that work for the County now can do something else for the County. Kershner stated the County would still have to pay them. Special Committee of the Whole - Budget, 11/1/2012, Page 10 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 Brenner stated the County wouldn't be hiring. Kershner stated the County would pay the on -call people, whereas the County hasn't paid them before. It would be a budgetary deficit. Brenner stated it wouldn't necessarily be a deficit if there are job openings in other parts of the county that need to be filled. Take it from the cost of equipment rental and revolve (ER &R). The County pays a lot of money to maintain the equipment it won't need if a private contractor provides the service. There are many sources from which the money can come without raising costs. Within a year or two of implementation, she expects the costs to go down. Kershner stated she would have to know how much work is done on call and whether any positions would be eliminated. Knutzen stated they need an estimate of the amount of work that would be available on call. Many contactors on the on call list don't have the equipment. They'll have to rent the necessary equipment. (10: 54 :24 AM) Brenner stated average how much on -call emergency work the County has used in the past ten years. That won't guarantee anything, but it will be an average. Kershner stated she doesn't know enough about what they're talking about. Louws stated the County owns the equipment now. It will be less expensive for the County to pay just the labor on an on -call basis and use it's own equipment. When the equipment wears out is when it will be appropriate to consider on -call service. They can't let $15 million in equipment sit while they hire out replacements on the small works roster. It doesn't make fiscal sense until it's time to evaluate each piece of equipment. Brenner amended her motion and moved to change direction regarding on -call services as equipment becomes no longer useable and is surplussed, so the private sector provides the equipment and the County would use the on -call list first. Louws stated the Council already has the ability to ask the appropriate questions of whether the administration has gone through that process. The motion isn't necessary at this point. The points are well- taken. To make that direction on a wholesale basis right now is the wrong thing to do. Brenner stated she disagrees. The wording that goes out the contractors say that the service is backup to the County. That's the problem. She amended her motion and moved to issue an RFP to replace the County use of equipment for emergency work with the private sector as that equipment becomes too old for the County to use and when it is suggested for surplus. The motion failed by the following Ayes: Brenner (1) Nays: Kershner, Knutzen, Absent: Crawford (1) vote: Mann, Weimer and Kremen (5) Special Committee of the Whole - Budget, 11/1/2012, Page 11 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 Brenner asked if the County is required to use it's own staff when it works on projects with the Lummi Nation. Abart stated it is not required. Brenner asked if the County has liability when private sector contractors contract for County projects. Abart stated it does. Brenner stated the County would contract with a company that has ample liability insurance. Abart stated it would. Many vendors can't afford or acquire that level of insurance. Louws stated the private sector charges an appropriate amount to cover that liability cost. Brenner moved to change the chip seal program for straight stretches of road so the County applies chip seal half as often as it does. Keep the schedule the same for sharp curves and steep slopes. On curves in the road and on steep slopes, maintain the current chip seal replacement schedule. On straight stretches of more than one - quarter of a mile, cut back on chip seal, and do it half as frequently as they do now. A chip seal project scheduled every five years would now be done every ten years, for example. Kremen stated he would like to know the fiscal impact of the motion. The motion failed by the following vote: Ayes: Brenner (1) Nays: Kershner, Knutzen, Mann, Weimer and Kremen (5) Absent: Crawford (1) Mann asked about the progress of getting the Nooksack Tribe to contribute funding to the Potter Road Bridge project. Rutan stated the Tribe was unsuccessful in obtaining federal funds. Mann asked about progress to adjust the design. Rutan stated they are proceeding with the original design as approved by the Council. Kershner asked about an alternate design that narrowed the bridge. Rutan stated a lesser design would not allow use of the granted federal funds. Knutzen asked when the Council gets to meet the new replacement for flood staff. Abart stated the new hire paperwork was signed yesterday. He's not sure when the new staff person is coming on board. He will let the Council know. (11:12:05 AM) Auditor's Office Brenner moved to pay for a voter pamphlet that includes statewide candidates. She knows it's not the County's job. If they are concerned about people not knowing what's going on, the County is obligated to have an informed electorate. One benefit is a more informed electorate. A second benefit is that people get to know more about candidates that don't have a lot of money. It is the State's obligation, but having a disagreement with the State doesn't get them anywhere. This is important, given the amount of money. Special Committee of the Whole - Budget, 11/1/2012, Page 12 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 Mann stated he originally didn't agree, but the argument about candidates without much money being at a disadvantage is valid. He's not sure it will affect the outcome of any race, but it's good to do in principle. He will support the motion. Brenner moved to approve the additional service request (ASR) for this item. The motion carried by the following vote: Ayes: Brenner, Kershner, Knutzen and Mann (4) Nays: Weimer and Kremen (2) Absent: Crawford (1) (11:15:28 AM) Prosecuting Attorney and Law Library Kremen stated the Law Library requested an additional $16,000 per year. Louws stated it is an ASR. He has no problem with the request, other than the percentage of the cost is continually increasing. At some point, they will have to say no or continue to absorb the increases. The County's obligation is to provide the space for the Law Library. The rest of it is not necessarily the County's responsibility. The County provides the service for people who need access to the library, and it's the right thing to do. The question is how much the County will contribute. Kremen stated a law library, not just the space, is a good thing. Those who use it and benefit are members of the Bar and the lawyers. Kathy Walker, Prosecutor's Office, stated the biggest percentage of use is from the public. It takes more of the librarian's time because the public isn't as knowledgeable about the law. The Bar asks for publications they don't have. Most lawyers have electronic access through Westlaw. Some of those big publications aren't available because they're costly. Over time, there has been a five to eight percent increase in the cost of the publications. They have been trying to shift everyone to the electronic version. Rather than funding the law library at the level it needs, the County has done supplemental budget requests. It's been that way for a number of years. The advent of electronic Westlaw shifted the major users from the lawyers to the public. The most frequent complaint received is that the Law Librarian isn't full -time. Kremen asked if the Bar Association reduced it's funding amount. Walker stated the Bar Association cut its contribution from $6,000 to $3,000 per year a couple of years ago. Mr. McEachran asked the Bar Association to increase their contribution, but he hasn't gotten a response yet. Mann asked if members of the public are people who are representing themselves, and whether their cases are civil or criminal. Walker stated the people are representing themselves for civil cases such as divorce, tenant law, property disputes, and things like that. Brenner stated she would like to approve that ASR. Desler stated the ASR was for more than $18,000, but Mr. McEachran stated he can accept $16,000. Brenner moved to approve an ASR in the amount of $16,000 in 2013 and $18,000 in 2014. Louws stated he wanted to ask the Bar Association to increase their contribution. The increase is about 15 percent. Special Committee of the Whole - Budget, 11/1/2012, Page 13 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 Walker stated revenue comes in separate from the courts. It should be in a separate fund. The square footage and maintenance costs are the County obligation. Revenue that comes in should stay with the law library. Kershner asked how much money is generated. Walker stated the revenue generated is $89,000. Kershner asked if the shortfall is $16,000. Walker stated that includes the maintenance and administrative costs. Kremen asked the total the County spends on the library, over the revenue generated. Louws stated the 2012 budget was $128,000, with $89,000 in revenue. Of the $39,000 not funded by revenue, $21,000 was the cost of the building maintenance and administrative cost. (11:27:27 AM) The motion carried by the following vote: Ayes: Brenner, Knutzen, Mann and Weimer (4) Nays: Kershner and Kremen (2) Absent: Crawford (1) Brenner asked about the number of attorneys in the Prosecutor's Office. Many people have cases that are often postponed. She asked if it's a problem with the requirement to provide speedy trials. Walker stated there are only three judges, so cases get bumped. Brenner asked if there are liability issues with that. Walker stated she doesn't think there are. There is a process to continue a court date to a specific date. Kremen asked if the bottleneck is in the court. Walker stated they need a fourth judge. People in custody have to be tried in 60 days. People out of custody have to be tried in 90 days. Problems occur in between, and cases get continued. A case average is 265 days. That's a pretty good average. Kremen stated the cases getting bumped are almost exclusively civil, not criminal. That's why he advocates for a fourth superior court judge. Brenner asked if the civil cases must have a speedy trial. Walker stated they don't have to, but some cases can languish, and they are bumped behind the criminal cases. (11:32:42 AM) Juvenile Court Weimer asked about a $15,000 increase for the court appointed special advocate (CASA) program. Desler stated additional CASA revenue was approved. It's appropriate for a technical correction. Revenue and expenditures are equal. Special Committee of the Whole - Budget, 11/1/2012, Page 14 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 Weimer moved to approve that technical correction. Louws stated the Council could approve the technical corrections as a group. Weimer withdrew his motion. Kremen moved to approve the process of considering all technical corrections as a consent agenda. The motion to approve the consent agenda process carried by the following vote: Ayes: Brenner, Kershner, Knutzen, Mann, Weimer and Kremen (6) Nays: None (0) Absent: Crawford (1) Kremen moved to approve the technical corrections consent agenda. Knutzen withdrew the EMS item. Brenner withdrew the onsite septic (OSS) increase, Health Department O &M services, flood fund O &M services, and the travel increase. Kershner stated that leaves animal control and CASA program. Mann asked if the animal control item reflects an agreement with the Humane Society. Louws stated it does. Brenner asked the exact total of the animal control contract. Louws stated the total amount is $360,708. The motion to approve the animal control contract and the CASA program carried by the following vote: Ayes: Brenner, Kershner, Knutzen, Mann, Weimer and Kremen (6) Nays: None (0) Absent: Crawford (1) (11:39:07 AM) Health Department Brenner stated don't increase the OSS O &M fee. She asked if that includes the yearly property tax. Regina Delahunt, Heath Department, stated it does. The technical correction is about not taking $25,000 from the flood fund, increasing the proposed O &M fee by $1 to use that revenue instead of the flood fund revenue. Knutzen asked when that will come to the Health Board for discussion. Delahunt stated it already did. Brenner moved to eliminate the $25,000 transfer from the flood fund and eliminate the entire $19 OSS fee. Special Committee of the Whole - Budget, 11/1/2012, Page 15 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 Knutzen stated there is no incentive for people who follow the program and take the class. He hopes there is an incentive for people to take the class, rather than charge the people who follow through with inspections. Construct the fee structure so there is an incentive. He's unwilling to support a flat fee. Kremen stated that if the Council doesn't do anything, they exacerbate the problem that Councilmember Knutzen wants to correct. Now, people who take care of their septic systems are being charged $35 per year. The technical corrections make the fee structure more equitable. Knutzen stated there's no incentive. Brenner stated this is only the first part of her motion. Councilmember Kremen is wrong. It's not less. It will still cost more for people with gravity systems. It will be a little less for people who have other kinds of systems. The point is that the fee is too much for what it costs to do it. A fee is supposed to be a fee for service. The service is to put something in a computer program. Staff shouldn't have to type the whole thing in. They should just be able to scan it in. She's tired of the cost of this. It's appropriate that Councilmember Knutzen talked about what he did. She restated her motion to not approve any of the technical corrections related to the OSS program and to also eliminate the entire $19 fee. The other part of her proposal will be a motion to charge people who are not complying, and not charge people who do comply. Weimer stated he is against the motion. The fee is more equitable. The motion failed by the following vote: Ayes: Brenner and Knutzen (2) Nays: Kershner, Mann, Weimer and Kremen (4) Absent: Crawford (1) Weimer moved to approve the technical correction to end the withdrawal of $25,000 from the flood fund by increasing the OSS O &M fee in the amount of $1, for a total of $20. Kremen stated there is no incentive to get people to take the class and adhere to the program. The motion failed by the following vote: Ayes: Kershner, Mann and Weimer (3) Nays: Brenner, Knutzen and Kremen (3) Absent: Crawford (1) Knutzen moved to request that staff come forward with a fee structure that provides incentives for people to adhere to the program. Encourage people to participate in the program and take the classes. Kershner asked if a disincentive is a higher fee for noncompliance. Knutzen stated it would, or there could be an incentive from lowering the fee for people who do comply. Special Committee of the Whole - Budget, 11/1/2012, Page 16 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 Kershner stated the program has to be paid for. Even if people comply, the Health Department still has to implement the program. She asked how to pay for the program if they reduce the fee. Knutzen stated they are adding $19 to the bill of every property owner in Whatcom County. Kershner stated that takes the place of the fees they're not going to collect from people who have submitted their inspections. Delahunt stated the budget as submitted breaks even. The proposed fee revenue will cover the cost of the program. If they rebate the fees to some of the people, they will have to increase the fees for everyone in order to make the revenue and expense balance. Knutzen stated they are currently charging $35 for the 15 or 20 percent of the people who have done the program. Delahunt stated there is a 39 percent compliance rate. That 39 percent have paid $35. Kershner stated the people who haven't complied have paid nothing. Brenner stated charge people who comply $5, because it costs less than that to scan something. Charge people who don't comply whatever it costs to make the program whole. She doesn't agree with the estimate of what it costs to break even. The Health Department wants to get even to the point where it helps to support all kinds of things. She doesn't believe that's what it costs. An important aspect is that people who comply shouldn't be charged anything. The OSS program is a basic human health issue. Her taxes pay a lot of money for the Lake Whatcom watershed even though she doesn't live in that watershed. It's important. She doesn't live in a flood plain, but her taxes pay the flood fee. Charge someone who doesn't comply an annual compliance violation rate. Mann stated councilmembers voted to remove all the compliance follow up letters and enforcement. Hearing the councilmembers complain about this makes his skin crawl. They eliminated all this stuff. That's why it's not workable as they're now proposing it. He asked how staff is supposed to put a program in place if the Council reverses its direction every 15 minutes. Delahunt stated that in the areas where the Health Department ensures that people comply, they have a 95 percent compliance rate in Lake Whatcom and an 82 percent compliance rate in Drayton Harbor. They don't have the staffing to do that countywide. The Council gave staff the direction to leave staffing levels as they are, and leave enforcement and compliance program the way it is. That's what she's proposing. For the record, the $35 isn't just to type in or scan in a document. It pays for the staffing the County needs to assure the compliance to track all the systems. There are almost 29,000 systems in the county. Those all have to be tracked. When properties are sold, the database has to be updated. It pays for much more than receiving the documents, which staff does scan. They don't type them in. Brenner stated that there can be a fee during transfer of property. People who don't transfer their property shouldn't be charged. This isn't going to every taxpayer. It's going to every OSS owner, which is half the population. Half the population drinks the Lake Whatcom water. This is a basic functions of the County Health Department. She has no problem with a fee during transfer of property. She'd rather do it on their property tax bill than the way it's done now. Put it on as a punitive measure for those who don't comply, Special Committee of the Whole - Budget, 11/1/2012, Page 17 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 but don't charge a fee to people who do comply. All this does is trade one bad system for another. If they are going to charge everyone the same price, fewer people will want to comply. If they are going to raise a fee across the board, there's no incentive. Create an incentive for those people who do comply and a disincentive across the board for those who don't. Most of this should be funded from the general fund. She's fine with punishing those who aren't complying. Kershner stated she has issues with Councilmember Brenner's comments. She drinks water from Lake Whatcom and lives in the city. She pays dearly for her water. Councilmember Brenner is talking about incentivizing people to follow the law. The law is what it is. People need to follow the law. The County is not obligated to create an incentive program for people to follow the law. She is in favor of a disincentive program. She and Councilmember Mann were the strongest supporters of the proposal to allow people to inspect their own systems on the condition that the County will enforce if the owners don't inspect their systems or lie about their inspections. The County gave a lot of trust to the people to do this, because the people were saying they can do this inspection themselves. The County agreed with that. Now they find out that there is a 39 percent compliance rate. She is disappointed in the people of Whatcom County who have OSS systems and who complained loudly about having to comply with this mandatory inspection. They said they could do the inspection on their own, and they haven't. She doesn't have a problem at all with charging $20 to barely fund the minimum that the County must comply with at the State level. She would entertain the idea of charging more so they can ensure that the people in Whatcom County do have septic inspections and systems that work. Brenner stated the idea of an incentive was Councilmember Knutzen's idea, not hers. When people are obeying the law, and the service is a basic function, it should come from the Health Department. She doesn't live in the watershed, and her taxes do go to all kinds of programs in the watershed. The city residents pay for a sewer system that is managed by other people. People with OSS systems manage their own systems, which is more expensive than what city residents do. Charging them an extra fee is ridiculous. She doesn't have problems with punitive measures for those who don't comply. This proposal is across the board for everyone. It doesn't provide any reason for people to comply. It doesn't make sense. Knutzen asked the fees the County collects when someone pumps their system and when the County issues a permit for a new OSS system. Delahunt stated it's around $1,000 for a new system. Pumping is done by private companies. The County doesn't charge for that. There is a $.02 per gallon surcharge that comes to the County when a septic tank is pumped. That surcharge would go away with this new fee structure. It was an attempt to help pay for the O &M program. Since not many systems are being pumped, and not many people are paying the $35 fee, the County isn't collecting the revenue it needs to pay for the program. The County only collected about $60,000 in revenue last year. That fee structure doesn't work. To have the base level of funding necessary to operate the program is why they propose a more equitable fee structure across all OSS owners. Mann asked how feasible it is to assess a fine on a property tax bill. Delahunt stated they can't. Mann stated issuing fines happens rarely and is an extremely complicated process. Delahunt stated that can't put a fine on a property tax. They are allowed to put this on because of a state law that says a fee can be collected on the property tax bill to operate this program. If the County levies punitive measures, it's a fine. They can't differentially charge people who haven't paid versus people who have. That isn't legal. The only other Special Committee of the Whole - Budget, 11/1/2012, Page 18 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 way would be to try to collect a fine, but the County isn't successful in collecting fines. That action requires hearings. Mann stated the proposal is reasonable, given the history of this program. Knutzen withdrew his motion. It won't pass. Delahunt stated the technical amendment did not pass. The fee proposal of $19, with $25,000 coming from the flood fund stands. Mann stated he intends to revisit the money designated for Catholic Housing Services downtown project. He asked if that is a Health Department project. Delahunt stated it's not in the Health Department budget. Louws stated the Council committed the money as part of the Economic Development Investment (EDI) fund and behavioral health sales tax fund. Mann stated he wants to revisit that commitment when appropriate. Louws stated that commitment is part of the general fund balance, but is not part of the Health Department. He will review the record of Council action on this item. Mann stated he wants to clarify the Council's intent. They changed a technical definition that may have made the program not qualify for those funds, but the Council already committed the funds. Rather than argue about whether or not the change invalidates the Council's commitment, have a Council vote on whether it still wants to fund the project with those two funds. Kershner asked if there are any fee changes to the unified fee schedule. Delahunt stated the only fee change that has been controversial has been the one they've been talking about. They propose modest increases of about five or ten percent in standard fees. The department hasn't increased fees in four years. There shouldn't be any increase that is controversial. Desler stated the unified fee schedule will come forward for Council approval. There were few modifications. He doesn't anticipate it being controversial (12:15:08 PM) Parks and Recreation Department Kershner asked about Parks Department fees in the unified fee schedule. Mike McFarland, Parks and Recreation Department Director, stated they reinstituted the Lighthouse Marine Park launch fee that was suspended when the dock was out. Most changes are technical in terms of the hours. Knutzen asked for the names of the people who attended the North Fork meeting with him and Councilmember Mann. McFarland stated they were Steve Saunders and Ben Cleveland, who has since retired. (Clerk's Note: The Committee took a break from 12:20 p.m. to 1:31 p.m.) (1:31:46 PM) Special Committee of the Whole - Budget, 11/1/2012, Page 19 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 Planning and Development Services Department Mann asked what long range projects the Planning Department staff are working on. Sam Ryan, Planning and development Services Department Director, stated they are working on the docketed Comprehensive Plan items, a code rewrite in 2013, reconfiguration, a Caitac settlement agreement, and the 2051 in terms of the national pollutant discharge elimination system (NPDES). They are waiting for the decision on the rural element. Knutzen asked if there is potential to streamline the permit process. Ryan stated they work on it all the time. They are trying to get away from a linear process. Updating the website to allow people to look up information has been tremendously helpful. Knutzen asked about the possibility of web conferencing. Ryan stated they do telephone conference calls. Knutzen stated he hears often that it takes a long time to get a permit. Ryan stated they work on shortening that timeframe always. Louws stated staff will present an in -depth update to the Council in December on its goals and plans. They are improving customer service. He's pleased with the direction in which they're going. They are attempting to get training to be more efficient. Kershner asked how much money is necessary for Planning Commission meeting notes to be typed up in a more thorough fashion. Ryan stated they would need more clerical support. Brenner stated the Planning Commission is an arm of the Council. She would like to see the Planning Commission have more in -depth minutes that are similar to Council minutes. Kershner stated she would like to know how much it would cost. Ryan described the workload of the Planning Commission coordinator. Mann stated the Planning Commission coordinator used to take a lot of time on the Commission minutes. A change was made when there were staff shortages. It's reasonable for the Council to specify what kind of minutes it wants. It's the Council's advisory body. If the Council wants, it can allocate more funding. Kershner stated a lot of time is spent rehashing issues already discussed by the Planning Commission. Planning Commissioners often testify about what happened at their meetings. More in -depth meeting notes could result in reduced time if the information is made available. Kershner asked about the County's involvement in the Whatcom Futures effort. Ryan stated a staff member went to one meeting, but they decided to not participate. Knutzen asked about the effect on the budget from loss of revenue. He asked if revenue collected has always been 49 percent of the department's budget. Ryan stated it has not. In 2004 and 2005, they didn't need as much from the general fund. A lot of the money came from building permits. A 2009 audit said the County should not charge more Special Committee of the Whole - Budget, 11/1/2012, Page 20 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 for building permits to cover long range planning and other similar efforts. She is very cautious about what the permit fee schedule is. Kershner stated it seems like staff find grants for projects on which they want to work, outside the loop of anything that might be more important. She asked how the staff prioritize grant finding and writing efforts. Ryan stated staff is working on one grant right now, which the Agricultural Advisory Committee and Farm Friends requested. She checked to make sure it was okay to apply for it. Now they don't consider grants that will cost the County and the County can't handle. They usually include staff time as in -kind contributions. They only look for things that don't require a match and that fit into a plan. Staff isn't out there looking for all the grants. Kershner stated they need to be really attuned to what staff should pursue, given the limited amount of resources. She asked if there is a comprehensive plan for the Comprehensive Plan review process. Ryan stated there is a plan. She will show that process at the upcoming presentation in December. Kershner asked if there are pieces of the process that the County can contract out. Ryan stated there are. They are doing what they can in- house, but staff doesn't have all the expertise necessary to do a number of things. Kershner asked if there are any surprises to the fee schedule. Ryan stated there are not. Brenner stated all the planners have incredible gifts. She asked if there is some way Planning staff can work with the Planning Commission to let the Planning Commission decide which staff they want to work with. Ryan stated there is not. She makes that decision. She assigns people according to their strengths. Brenner stated that regardless of staff's strengths, staff without good people skills cost everyone in time and efficiency. She asked if there is any way that the administration can work with the Planning Commission to give them a list of people with which they can work. Ryan stated she can appreciate the comment. They already work with the Chair. She will talk with the Planning Commission Chair. Knutzen asked if the County has hired a new fire marshal. Ryan stated they are not getting a new fire marshal. Wain Harrison is the deputy fire marshal and has taken on those duties. He is working very hard to establish good rapport with the different fire chiefs and educate himself. The fire marshal position isn't budgeted. Technical Corrections Kershner moved to approve the technical correction for the EMS budget adjustments in the amount of $1,087,136 in 2013 and $1,309,401 in 2014. Knutzen stated he's not fond of the direction this is going. He hopes the new County Executive and City Mayor can work this out, but he has doubts. He would rather spend the money preparing a Plan B in case this negotiation doesn't work out. He has a very hard time allocating this much money. (2:02:04 PM) Special Committee of the Whole - Budget, 11/1/2012, Page 21 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 Brenner stated she won't support this for two years. The administration can bring back a portion of it that they can live with for a certain amount of time. Kershner asked when the current agreement expires. Desler stated the agreement expires at the end of 2013. Kershner asked if the County Council has the power to reduce the EMS system by half a unit in order to not accept these costs. Desler stated he doesn't see that option. If no other changes were made and the same budget problems existed, the system will last about three and a half years. After that, the City and County would have to split the deficit. That's the arrangement that existed for many years. That's why they are working to make changes. The cost increase for 2013 is $475,000 in a $7.9 million budget. The loss in revenue is about $500,000. Kershner asked who ultimately gets to decide to change the program so it fits within the revenue collected and makes sense. She asked if that expiring agreement ties the County's hands. Desler stated it does. They are working on changing the agreement. Kershner asked who specifically is making the decisions about the program right now. Desler stated he can identify the increase. For example, Fire District 7 asked to expand its program in 2013. The Executive, fire commissioners, and chiefs worked together to decide that they're not ready to do that yet. Call volumes aren't high enough and they can't really afford it. Complete the reorganization of the EMS with the County Council first. Then they'll work on a new framework. Kershner asked who makes the framework now. Desler stated the City of Bellingham makes the framework for the Medic One budget. They send $117,000 to Fire District 7. The costs are due to the union agreement employees and the loss of revenue. Kershner asked who decides to cut a unit from the City's paramedic crew. Desler stated the City makes that decision. Mann asked if the County has to just pay the bill, whether or not it likes the service. Louws stated it has to until the end of 2013. Knutzen asked why the Council is asked to approve money for 2014. Louws stated they can do it either way. It doesn't make a difference. If the County walks away from the City of Bellingham, the County will have to spend much more than what it spends here. Having three units with just Whatcom County, instead of sharing four and a half units, costs considerably more money than the existing cost. The County will have to spend money on EMS in 2014 regardless of how much. Until the end of 2013, the City of Bellingham makes 100 percent of the decisions. That's why the County decided two years ago to submit its notice of termination. Consequently, Bellingham realized the County is serious. If Whatcom County walks away from the arrangement, Bellingham Fire Department will lose about 22 positions. The City and County are trying to put together an agreement that results in equal responsibility for making decisions. In the end, he would approve a final proposal that gives Whatcom County control in determining the amount of money it puts into the system and equal responsibilities of running the program. The technical correction in the amount of $1,087,136 for 2013 is very important. It won't make a difference if the Council budgets zero for 2014. Special Committee of the Whole - Budget, 11/1/2012, Page 22 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 Desler stated the City only gives the County a one -year budget at a time anyway. He explained the EMS budget process. If the Council doesn't approve the contract, it will go to mediation. Kershner asked who puts the budget together. Desler stated the Fire Department puts the budget together. Kershner asked who looks at the budget. The County Council doesn't get a chance to look at it to make sure the budget is appropriate. She has concerns that it may be bloated. Desler stated the Executive and Mayor are working together. They took the matter before the Emergency Medical Service Advisory Board also. Kershner stated she hopes that approving the budget doesn't set a precedent for when the Executive and Mayor rework the system, and start from an already - bloated service that has been run by the unions for many years. She amended her motion and moved to approve the technical correction for the EMS budget adjustments in the amount of $1,087,136 in 2013 as a one -time expense. Brenner stated the purpose of drawing a line in the sand in 2010 was so something would be in place that wouldn't cost the County more. If they keep following through with that opinion, the City can keep raising it all it wants, and the County has no recourse. The County must have a recourse, even if it means cutting services and providing the service itself. Don't keep the opinion that the current cost is cheaper than what it costs the County to provide the service on its own. Louws stated the County must have representation, so it can control costs. If the County wants to contribute more money, there must be a logical way to make that happen, so the County isn't forced to contribute more money. Kershner asked how much money is in the budget for 2014. Desler stated there is about $1.45 million from the general fund, and about $2 million from the EMS fund. The Council would have to approve any additional money. Mann stated he's read the interlocal agreement and EMS Plan. He never got the impression that the County had no control over costs or how to deploy assets. Desler stated there is a disagreement. The City has said it doesn't want the County Council to micromanage their budget affairs. It takes a policy change to execute something different for the regional programs. Mann stated he doesn't want to micromanage anything, but the next agreement must give the County equal footing to determine the details of the EMS budget. Louws stated he's trying to work the County out of the current situation. He's as challenged by the million dollar increase as the Council, but he's trying to give the County representation moving forward. They're moving in the right direction. He appreciates the direction in which the City is moving. The Mayor is motivated to make this happen, because they are also experiencing budget increases. Pass this request for next year. If they are unsuccessful in putting together an agreement, the County will have to put together a new system. Kremen stated costs started escalating substantially 12 or 14 years ago. He, as Executive, and the Council began to ask questions of the City and the Fire Department. They expressed concerns about why the costs were so high. Ever since then, the City of Special Committee of the Whole - Budget, 11/1/2012, Page 23 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 Bellingham generally reacted in not the most congenial way. Until this new administration, the City expected Whatcom County to dole over a significant amount of money annually and without any say in how the money is spent. He's encouraged to hear about the new approach and new willingness on the part of the new City administration. He supports the motion. Kershner referenced past arbitration and asked if now is the time to make any changes to the budget that the Council doesn't want to pay for. Desler stated he hears the Council and agrees with the Council. The new administration is really trying. Kershner asked to receive the actual budget for this money. Desler stated he will provide it. Brenner asked the City's opinion now on medical training for other districts. Louws stated the Mayor said that any agreement signed in the future will allow equal opportunity for everyone to be trained at the same time, for the benefit of the system. Brenner asked if Dr. Wayne agrees. Louws stated he can't speak for Dr. Wayne. Joint training will be available. There will be equal run times and seamless run cards throughout Whatcom County so there is no differentiation. Dr. Wayne will have to work within the contract that is put together. Brenner stated the Council was told that same thing years ago, but the union thing came up. They thought they had a seamless system. She's scared about the fine print that the County doesn't see. The union requirement was an unexpected shock. Louws stated it was a shock to everyone since the union agreed to the training format, and then changed it's mind. He can't control Dr. Wayne or the union's reaction. They will put together an agreement that is fair for everyone. There is equal tension between the Bellingham Fire Department and Fire District 7 and between the City and County related to who is providing the service. He hopes it will all work out, but there is no guarantee. The motion carried by the following vote: Ayes: Brenner, Knutzen, Mann, Weimer and Kremen (5) Nays: None (0) Abstain: Kershner (1) Absent: Crawford (1) Kershner moved to approve the technical correction to increase Council travel in the amount of $6,000 each year. Brenner stated she is opposed to the motion. The money should not be so convenient. It should be difficult for councilmembers to request more travel money. It should be spent on something she thinks is really important. During the last budget process, the Council was told that it must cut back expenditures. Now they're suddenly talking about increasing it. Kremen stated that's not true. Kershner stated this item was brought forward because councilmembers expressed an interest in attending national conferences and certain State meetings that regularly occur. This money was lapse, and does not increase the Council's overall budget beyond the Executive's budget guidelines. Special Committee of the Whole - Budget, 11/1/2012, Page 24 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 Mann stated it's important for the County to be represented and get face time with their State and national representatives. Those trips pay for themselves many times over in the form of funding for vital infrastructure. The County should pay travel expenses to councilmembers who are willing to volunteer their time to go to these events. The time commitment is a huge sacrifice. He's willing to contribute a small amount to the County budget. Brenner stated they don't need to raise the budget to contribute a small amount. The County doesn't get any benefit from having three people go instead of having one person go. After watching Congress for so many years, she believes it is a waste of time. Whatever the County got, it got because of interactions by email. A lot of people would love to go traveling on County money and not have to pay for it. Mann stated it's not a vacation. They are not all retired. Brenner stated people do have fun on those trips. They don't need to send a group of councilmembers. It would be great to have that money as a lump sum for all the councilmembers. Kershner stated the cost of traveling to Olympia for all the meetings and at least two events per year would take every penny of all seven travel budgets. This is not a boondoggle. This is a slight increase to send one or two people to a national convention. Brenner stated she agrees that this is not much in the total budget. She doesn't agree with the implication that having two or three people attend makes any difference over doing the work by email or phone. Knutzen stated the leadership is held to a higher standard, and any small increase is magnified. Councilmembers should arrange to borrow travel from other councilmembers. A travel cost of $2,000 will get someone to the east coast and back and a hotel room. It's not extravagant. Kremen stated the administration did not force the councilmembers to reduce their travel budget. That assertion is not valid. The Council determined it's own budget cuts, without any input from the Executive's Office. Earlier today, the Council approved $6,000 to do something that is the State's obligation, not the County's. It's important for councilmembers to be informed all the time, not just at election time. They need to be plugged in, active, and effective in working with State and federal officials. An increase of $6,000 for something this important is necessary. Arguing about it defies common sense. The motion is wise, justifiable, and good policy. Kershner stated the travel is for the entire Council Office, including staff. It's not just a pot for councilmembers. Brenner stated one trip to Washington D.C. will ensure there won't be any money for staff. Put the money in the staff's travel budget, not the Council's. Knutzen stated they could allocate $1,000 to each staff person for travel to training. Don't leave staff out from training possibilities due to councilmembers accessing this money every year. Kershner stated the staff currently has a travel budget. They don't use it. Special Committee of the Whole - Budget, 11/1/2012, Page 25 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 Weimer stated the County is under - represented at the Washington State Association of Counties (WSAC) events and its subcommittees. He has the same concerns as Councilmember Brenner about the value of going to Washington D.C. He suggested a friendly amendment to require that any of the additional $6,000 be spent only after a majority of the Council approves. Kershner accepted the friendly amendment. The motion carried by the following vote: Ayes: Kershner, Mann, Weimer and Kremen (4) Nays: Brenner and Knutzen (2) Abstain: None (0) Absent: Crawford (1) Kershner moved to remove from the general fund budget the $1.45 million in 2014 for EMS services. She doesn't want any amount budgeted to automatically become the starting point for the negotiation. They can approve a supplemental budget request after negotiations. Louws stated pulling the amount from the ending balance for 2014 will change the ending cash balance of the general fund by that amount. Don't forget about that amount as they move through this next year. Ultimately, the County will have to spend at least a portion of that money. Don't allow a false sense of security that the County won't need to use that money in the future. Weimer asked if the $1.45 million is just for the City of Bellingham or also includes Fire District 7. Desler stated it does. Knutzen stated keep all the leverage they can. He supports the motion to continue the message that the County is prepared to walk if they can't gain some control over the system. Kershner stated she's motivated to a coordinated unified system that works and is affordable. One can't negotiate with all the cards laying on the table. Kremen stated he is also inclined to send a message. He is also frustrated. Eliminating the funding provides a message to the City, but it is also a false sense of accomplishment because the County will need at least that amount to fund whatever system they have, regardless of the negotiation outcome. He would like to convey the County's sentiment to the City without really changing the budget document, which would be unrealistic. Brenner stated approving the amount for 2014 says the County will pay for salary increases. She asked how that affects the County's labor, because the only purpose of the increased cost is the City's labor. She's concerned about the message this sends. She asked if they are getting raises. Louws stated the labor costs have gone up, 2012 was deferred, and transfer revenue has gone down. Regarding the motion, the County Council has already sent a message to the City. If they don't develop a new agreement, the current agreement ends at the end of 2013. Moving the $1.45 million out of the budget would result in challenges with the ending fund balance. The County will spend at least $1.45 million out of the general fund in 2014, regardless of who pays for the service. Don't remove that money from the budget for 2014. Special Committee of the Whole - Budget, 11/1/2012, Page 26 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 Brenner asked for a comparison of the per person labor costs between Fire District 7 and the City of Bellingham. Knutzen stated he can't believe the County can't provide service for less than $1.9 million per unit. Figure out a way to lower the cost. There is quite a difference between the cost of a medic one unit in Whatcom County versus Skagit County or King County. Louws stated that if the County can get an agreement that limits its cost contribution, they may be able to realize efficiencies. At the end of next year, the County will be able to do it on its own if they can't do it jointly. The budget is higher at the end of next year, but three lieutenant positions are going away, and that money will shift to Ferndale. They haven't negotiated the cost of the administrative component for the City of Bellingham or put the City into a bid process for delivery of the service. Eliminating the extra $1.3 million from the 2014 budget sends a message. Knutzen asked if there have been efforts to look at different staffing models. He asked why advanced life support (ALS) units need two paramedics. Louws stated they haven't been discussing the delivery model. He hopes the agreements will give the County the ability to cooperatively make those decisions. The City has hired more paramedics than emergency medical technicians (EMTs) over the years, and there are related labor issues. Kershner stated the Council should allocate funding to projects and programs that have specific results for the money spent. The County doesn't have an agreement or know what the program will look like in 2014. They're being asked to budget $1.45 million for EMS without knowing anything about how it will be spent. Work out a specific plan and bring it to the Council. Don't put $1.45 million into the budget without a plan. Mann stated the budget is a planning and guidance document. Achieve both goals by putting a nice round number such as $1 million in the budget for 2014 as a placeholder. He wants to defer to the Executive and new Mayor. It's important to have a placeholder in the budget. Louws stated Whatcom County made a commitment to contribute $1. 35 million each year, with a one percent increase, when the sales tax increase took effect. That's the amount they're talking about. The Council would also send a message to the voters that it is changing the plan. Brenner stated table this. Some of the increases seem bizarre. Kershner withdrew her motion. Brenner asked about percentage increases in the EMS budget. She asked if the County is paying for the repair and maintenance of its buildings. That should be funded differently. Kershner stated the information includes all the revenue sources and all the expenses. Louws stated the County owns a facility at the corner of Hannegan Road and Smith Road. The repair and maintenance is for that satellite facility. The City of Ferndale owns a facility in Ferndale that the County leases. Brenner asked about increases to clothing and accessories. Desler referenced the very first page of the handout which describes changes to the budget. Special Committee of the Whole - Budget, 11/1/2012, Page 27 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 Kershner asked about the increase in transportation equipment. Desler stated they reduced that cost also. They will remount only one ambulance, not two. Knutzen asked why the City is paying for computer disposal instead of donating the computers to kids in need. Knutzen referenced the technical correction regarding the flood fund transfer. He asked if the flood fund deduction is still there. Brad Bennett, Administrative Services Department, stated there is no reason to have half the transaction. Kershner stated that because the motion failed, they will continue to use $25,000 from the flood fund to fund the OSS O &M program. Brenner asked why the flood fund is contributing $25,000 to the OSS program. Weimer stated the flood fund was the original fund used for a variety of water quality issues. The County supplemented water quality issues regarding OSS from the flood fund. Now they're creating a new funding source, it makes sense to make the users pay for it, not the flood fund, which city residents pay into even when they don't have OSS systems. Brenner stated it should come out of the general fund, not the flood fund. Kremen stated that when it comes out of the general fund, everyone has to pay for it. Brenner stated the flood fund is intended to pay for flooding issues, but it morphed into something else. She doesn't like that. Miscellaneous Non - Departmental Knutzen stated he will work with Public Works Department Director Frank Abart about his questions and suggestions. Kershner asked about recommendations from the Tourism Board about spending that money. Louws stated the meeting is tomorrow afternoon. They will discuss how to allocate $550,000. Some are under contract, so about $300,000 is already dedicated. He will present the recommendation when it's made. Brenner asked about forestry staff for Washington State University (WSU) Cooperative Extension. Louws stated it's included in his budget proposal. Kershner moved to leave the EMS budget for 2014 at the 2013 level, without the one percent increase. The motion carried by the following vote: Ayes: Brenner, Kershner, Knutzen, Mann, Weimer and Kremen (6) Nays: None (0) Abstain: None (0) Absent: Crawford (1) Special Committee of the Whole - Budget, 11/1/2012, Page 28 1 2 3 4 5 6 7 8 9 10 11 1 i 1 1 1 1 1 ADJOURN The meeting adjourned at 3:27 p.m. The Council approved these minutes on December 4, 2012. ATTEST: WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON Please contact the Council Office to obtain an official, signed copy: 360- 676 -6690 or council &o.w hatcom .wa.us Special Committee of the Whole - Budget, 11/1/2012, Page 29