HomeMy WebLinkAboutFinance January 15 2008WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
January 15, 2008
Committee Member Sam Crawford called the meeting to order at 11:00 a.m. in the
Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
L. Ward Nelson None
Carl Weimer
Also Present:
Seth Fleetwood
Barbara Brenner
Bob Kelly
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF AN ANNUAL SUPPLY (ON AN AS NEEDED BASIS) OF ROAD
TRAFFIC LINE PAINT AND GLASS BEADS UTILIZING WASHINGTON STATE
CONTRACT, VENDOR ALPINE PRODUCTS, IN THE AMOUNT OF $700,000
(AB2008 -030)
Nelson moved to recommend approval to the full Council.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF AN ANNUAL SUPPLY (ON. AN AS NEEDED BASIS) OF
HERBICIDES UTILIZING WASHINGTON STATE CONTRACT, VENDOR WILBUR
ELLIS, UAP AND TIMBERLAND, IN THE AMOUNT OF $50,000 (AB2008 -031)
Weimer moved to recommend approval to the full Council.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF AN ANNUAL SUPPLY OF TIRES (ON AN AS NEEDED BASIS)
FROM VENDORS GOODYEAR AND LES SCHWAB IN THE AMOUNT OF $50,000
(AB2008 -032)
Crawford moved to recommend approval to the full Council.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF AN ANNUAL SUPPLY OF GUARDRAIL UTILIZING
WASHINGTON STATE CONTRACT, VENDOR CORAL SALES, IN THE AMOUNT
OF $50,000 (AB2008 -033)
Nelson moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 1/15/2008, Page 1
Motion carried unanimously.
5. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF AN ANNUAL SUPPLY (ON AN AS NEEDED BASIS) OF ASPHALT
PRODUCTS UTILIZING WASHINGTON STATE CONTRACT, VENDORS ARE
ALBINA ASPHALT AND MCASPHALT LTD., IN THE AMOUNT OF $40,000
(AB2008 -034)
Weimer moved to recommend approval to the full Council.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ACCEPT A DONATION OF
.23 ACRES OF LAND LOCATED IN BIRCH BAY (PARCEL #405124333125) FOR
PARK PURPOSES FROM ALFRED AND DELORIS RODRIQUEZ (AB2008 -035)
Crawford moved to recommend approval to the full Council. He asked about a
concrete slab shown on the survey. He asked if the County is liable for removing it.
Mike McFarland, Parks and Recreation Department Director, stated this adjoins park
property and extends the beach. There isn't a huge liability. They will ultimately end up
removing it when the berm is designed. It isn't a huge cost. They should be able to pull
out the slab relatively easily.
Fleetwood asked the location. McFarland described the location of the property.
Motion carried unanimously.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND HANDEL INFORMATION
TECHNOLOGIES TO DEVELOP AND IMPLEMENT A JUVENILE OFFENDER CASE
MANAGEMENT SYSTEM IN THE AMOUNT OF $18,000 (AB2008 -036)
Nelson moved to recommend approval to the full Council.
Motion carried unanimously.
8. REQUEST AUTHORIZATION FOR THE EXECUTIVE. TO COMPLETE THE
NECESSARY DOCUMENTATION TO FACILITATE THE SALE OF WHATCOM
COUNTY'S RIGHTS AND INTERESTS OF THE BRUCE CREEK PROJECT (PARCEL
#400628 066330 000) TO WSDOT IN EXCHANGE FOR CONSTRUCTION OF A
SEGMENT OF THE BAY TO BAKER TRAIL (AB2008 -037)
Mike McFarland, Parks and Recreation Department Director, stated the Washington
State Department of Transportation (DOT) is trying to realign the highway and the drainage
underneath. It must straighten the stream. The County has some ownership interest, but
not full title. In exchange for the County's interest, the DOT will construct an off -road trail
segment through this parcel to link up with the existing bridge crossing at Boulder Creek.
Weimer moved to recommend approval to the full Council.
Motion carried unanimously.
Finance and Administrative Services Committee, 1/15/2008, Page 2
1 9. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #07 -131 TO
2 SOLE BIDDER, REISNER DISTRIBUTOR, INC. FOR THE ANNUAL SUPPLY OF
3 FUEL IN THE AMOUNT OF $400,000 (AB2008 -038)
4
5 Crawford asked how this adjusts for changing fuel prices.
6
7 Eric Schlehuber, Public Works Department, stated it is a fixed rate delivery charge.
8 This is the card lock account, not the fuel supply.
9
10 Crawford asked why there was a sole bidder. Schlehuber stated it was advertised to
11 all local fuel companies. There are conversion costs going from Pacific Pride network to a
12 different network.
13
14 Crawford moved to recommend approval to the full Council.
15
16 Motion carried unanimously.
17
18 10. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #07 -125 TO
19 LOW BIDDER, FERGUSON WATERWORKS #1652, FOR ANNUAL SUPPLY OF
20 ADS N -12 CULVERT IN THE AMOUNT OF $111,998.16 (AB2008 -039)
21
22 Nelson moved to recommend approval to the full Council.
23
24 Motion carried unanimously.
25
26 11. RESOLUTION CANCELING UNCOLLECTIBLE PERSONAL PROPERTY TAXES
27 (AB2008 -040)
28
29 Weimer moved to recommend approval to the full Council.
30
31 Motion carried unanimously.
32
33 12. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ACCEPT A THREE -YEAR
34 GRANT AGREEMENT FROM WASHINGTON STATE DEPARTMENT OF
35 COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT AND ENTER INTO A
36 CONTRACT BETWEEN WHATCOM COUNTY AND CTED FOR THE GRANT FUNDS
37 TO IMPLEMENT THE HGAP RE -ENTRY PROJECT IN THE AMOUNT OF
38 $1,214,400 (AB2008 -041)
39
40 Crawford asked what this program is.
41
42 Gary Williams, Health Department, stated it's funding from document fees for re-
43 entry housing for folks coming out of jail. It will provide for permanent housing for those
44 folks. The funding will also go to two beds at Sun Community Services for transitional
45 housing for inmates being released from jail. They will receive case management for
46 mental health services.
47
48 Brenner asked if the funds are ongoing. Williams stated the State portion is a three -
49 year grant. The State may be willing to continue funding a portion if the project is
50 successful and can be a model for other areas around the State.
51
52 Brenner asked if these people will be from Whatcom County. Williams stated they
53 are.
54
Finance and Administrative Services Committee, 1/15/2008, Page 3
Crawford moved to recommend approval to the full Council.
Motion carried unanimously.
(This item continues below.)
13. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT FOR SERVICES AGREEMENT BETWEEN WHATCOM COUNTY AND
MATERIAL TESTING AND CONSULTING, INC. FOR SAMPLE COLLECTION,
INSPECTION AND TESTING OF CONCRETE, ASPHALT, AGGREGATES AND
OTHER CONSTRUCTION MATERIALS FOR COUNTY PUBLIC WORKS PROJECTS
IN THE AMOUNT OF $50,000 (AB2008 -042)
Nelson moved to recommend approval to the full Council.
Motion carried unanimously.
14. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT FOR SERVICES AGREEMENT BETWEEN WHATCOM COUNTY AND
WESTCOAST COUNSELING AND TREATMENT CENTER FOR OUTPATIENT
SUBSTANCE ABUSE OUTREACH AND TREATMENT SERVICES TO LOW- INCOME
PERSONS IN WHATCOM COUNTY IN THE AMOUNT OF $95,376 (AB2008 -043)
Crawford moved to recommend approval of this item and the next item to the full
Council.
Motion carried unanimously.
15. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT FOR SERVICES AGREEMENT BETWEEN WHATCOM COUNTY AND
CATHOLIC COMMUNITY SERVICES NORTHWEST FOR OUTPATIENT
SUBSTANCE ABUSE OUTREACH AND TREATMENT SERVICES TO LOW- INCOME
PERSONS IN WHATCOM COUNTY IN THE AMOUNT OF $54,624 (AB2008 -044)
See Consent Agenda item 14.
16. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND DAVID EVANS AND
ASSOCIATES, INC. FOR THE DESIGN PHASE OF THE BIRCH BAY LYNDEN
RD /PORTAL WAY SIGNALIZATION, CRP #901011 IN THE AMOUNT OF
$49,154.79 (AB2008 -045)
Crawford asked the reason for the signal.
Joe Rutan, Public Works Department, stated it will accommodate the redevelopment
of the outlet mall, improve channelization, and reconfigure the intersection. The developer
has done several aspects of the design.
Jim Karcher, Public Works Department, stated the intersection now meets signal
warrants. The developer is supposed to pay $120,000 to mitigate the signal. The County
will contribute funding to get the configuration it wants to accommodate future growth.
Crawford moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 1/15/2008, Page 4
Weimer stated the intersection backs up because of growth in Birch Bay. Karcher
stated this will help that problem. It will also address the vertical separation between the
railroad crossing and the actual intersection, so there will be a smooth transition through
that intersection. The stop will not allow any vehicles past the tracks before they stop.
Motion carried unanimously,
17. REQUEST APPROVAL FOR THE EXECUTIVE TO ENTER INTO AN AGREEMENT
FOR CONSULTING SERVICES BETWEEN WHATCOM COUNTY AND CASCADIA
CONSULTING GROUP FOR OUTREACH SERVICES TO PROMOTE WASTE
REDUCTION AND RECYCLING IN THE AMOUNT OF $30,000 (AB2008 -046)
Weimer moved to recommend approval to the full Council.
Brenner stated there's little information about the specifics. She asked if the County
makes it a practice to notify past contractors when a request for proposals (RFP) goes out.
Frank Abart, Public Works Department, stated it goes to the purchasing department
and through the County policy.
Brenner stated keep a list of contractors they've used for services, and notify them
when an RFP goes out. She asked how many responses the County received. Abart stated
there may have been two responses.
Brad Bennett, Administrative Services Department, stated they generally do identify
and notify people who can do that service and send them an unsolicited invitation to submit
a bid.
Brenner stated that didn't happen this time. Table this until they can notify local
vendors.
Weimer stated he would like to know who applied and who didn't. Table the item
until then. The contract isn't specific about the scope of work. He would like more
information on the scope of work and product received for this higher cost for a firm from
Seattle. Local firms do the same work at a lesser cost. He would like to know what the
County will receive for the higher cost.
Crawford asked if there is a problem with delaying it a couple of weeks. Abart stated
he can get the information today. This is an outreach and education product, which is part
of the Comprehensive Plan. He has examples of brochures this company has produced.
Crawford stated the committee can withdraw the motion to approve. The committee
can move it forward with no recommendation.
Nelson asked if they have gotten any benefit from the previous contract, including an
increase in the amount of materials being recycled per capita. He's not sure there is a
benefit from this at all. They may be able to use the money on better services, such as
recycling hazardous waste materials and computers. Abart stated he doesn't if they can tie
specific statistics to education outreach. The Comprehensive Plan can be changed if they
prefer to not have that education component. He is following the Comprehensive Plan.
They have lots of statistics from over the years.
Weimer stated the contract is small and doesn't include money for paid advertising
to change public opinion. They need to discuss that, also.
Finance and Administrative Services Committee, 1/15/2008, Page 5
He is more interested in getting quarterly reports from the contractor to see what
they produce. The County website doesn't include information on curbside recycling. There
isn't a brochure about it, either. The County's solid waste side doesn't have that
information. The website and brochures aren't updated.
Brenner stated one very well -known contractor wasn't notified. The bid should go
back out.
Weimer withdrew is motion.
Crawford stated this item will be held in committee for two weeks.
18. REQUEST APPROVAL FOR THE EXECUTIVE TO ENTER INTO A GRANT
AGREEMENT BETWEEN WHATCOM COUNTY AND THE STATE OF
WASHINGTON DEPARTMENT OF ECOLOGY TO COMPLY WITH NATIONAL
POLLUTANT DISCHARGE ELIMINATION SYSTEMS PHASE II PERMIT IN THE
AMOUNT OF $75,000 (AB2008 -047)
Crawford moved to recommend approval to the full Council.
Motion carried unanimously.
19. RESOLUTION TO SET HEARING AND NOTICE OF HEARING OF THE SALE OF
COUNTY TAX TITLE PROPERTY BY PUBLIC AUCTION — REQUEST #TR2008 -01
(AB2008 -050)
Crawford moved to recommend approval to the full Council.
Motion carried unanimously.
20. RESOLUTION TO SET HEARING AND NOTICE OF HEARING OF THE SALE OF
COUNTY TAX TITLE PROPERTY BY PUBLIC AUCTION — REQUEST #TR2008 -02
(AB2008 -051)
Nelson moved to recommend approval to the full Council.
Motion carried unanimously.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated he looks forward to working with the
committee this year on significant financial issues.
COUNCIL "CONSENT AGENDA" ITEM
12. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ACCEPT A THREE -YEAR
GRANT AGREEMENT FROM WASHINGTON STATE DEPARTMENT OF
COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT AND ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND CTED FOR THE GRANT FUNDS
TO IMPLEMENT THE HGAP RE -ENTRY PROJECT IN THE AMOUNT OF
$1,214,400 (AB2008 -041)
Finance and Administrative Services Committee, 1/15/2008, Page 6
Nelson moved to recommend approval of this item, with the replacement page
submitted earlier.
Motion carried unanimously.
OTHER BUSINESS
Crawford asked what's coming up this year.
Dewey Desler, Deputy Administrator, stated the administration is concerned about
sales tax and fee "revenues flattening. They aren't planning to expand programs. They are
talking on significant issues with capital expenditures, which they've been planning for the
last two or three years. They will take up issues regarding the ferry debt and building
repairs.
Brenner stated Public Works issues that go to the Finance Committee should also go
to the Public Works Committee. Also, sales tax is fluctuating because of the Canadian
dollar. Desler stated they are watching sales tax revenue totals. Much of the sales tax
activity occurs inside the cities. They will have to watch that revenue carefully.
Brenner stated the County was supposed to have a new way of configuring who gets
what when the Growth Management Act was passed, because the County was going to lose
its economic base. That never happened. Desler stated they are undergoing a review of a
report on County finances. He will share the results of the report to the Finance Committee
when the report is done. The State passed the rural sales tax funding for capital facilities.
That is now up to nine - tenths of one percent. It generates about $2.5 million per year for
the County. The County spends about 40 percent of that money on public facilities, 40
percent goes to an Economic Development Investment (EDI) loan fund, and 20 percent
goes to a grant program. The cities, Port, and other taxing districts have access to those
funds. That is the only significant change since the Growth Management Act passed.
Brenner asked about the structure of the rural sales tax. Desler stated it is a
County - government imposed tax, which the County Council imposed in 1998 or 1999. It is
a deduction of the State's portion of the sales tax, so it results in no net increase in taxes to
the individual.
Crawford asked if the Treasurer is seeing the impacts of a downturn.
Steve Oliver, County Treasurer, stated the sales tax revenue is flattening. One -
third of the County's sales tax revenue is related to construction and construction - related
spending. The revenue is very sensitive to that industry. In the City of Bellingham, a lot of
retail mitigates that effect. The unincorporated areas of the county don't have that retail
component to soften the effects. Whatcom County government receives a portion of
construction - related sales tax that occurs in the cities.
Crawford asked if they are seeing the construction decreases as they are happening
or if there is a lag time while the decreases filter through the system. Oliver stated they are
starting to see the impacts. The sales tax reporting and revenue is delayed two months.
Staff measures that revenue closely and with much detail.
Crawford stated he would like ongoing information on the status of the revenue.
Finance and Administrative Services Committee, 1/15/2008, Page 7
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Oliver stated the third largest source of revenue is the County's investment income.
There are significant projections for rate cuts this year. That impacts the County's return on
its investments and will also impact revenue.
Nelson stated inventory is another ,part of the equation. Inventories are dropping
because of high interest rates. He expects to see a drop in the first quarter. He asked if
that would impact the inventory in the community and (inaudible). Oliver stated there is
discussion about aggressive rate cuts by the Federal Reserve. The Fed funds rate could be
as low as two to two - and -a -half percent by this summer.
Brenner asked the rate a few years ago, when the housing interest rate was low.
Oliver stated it was cut to a rate of one percent. They aren't looking at a drastic difference.
They work closely with the Finance Division to discuss significant County revenues and talk
about where things are headed.
Desler stated County projections for the current two -year budget show slightly more
revenue in interest income due to rising rates. However, the sales tax revenue is flattening.
It impacts plans for the use of the Corrections sales tax and funding using to pay for
emergency medical services (EMS). They are hinging that revenue, including growth, to
cover expected expenses for the EMS plan and the jail.
Brenner asked if anyone has talked to the new City administration about its stance
on emergency management. Desler stated they are talking with City leadership about
improving and working together closely. The City intends to do things on its own. The
County administration is talking to the new Bellingham Mayor.
(Clerk's Note: End of tape one, side A.)
ADJOURN
The meetin adjourned at 11:48 a.m.
Jill Nixon, Minutes Transcrip ion
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Finance and Administrative Services Committee, 1/15/2008, Page 8