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HomeMy WebLinkAboutFinance June 17 2008WHATCOM COUNTY COUNCIL Finance and Administrative Services Committee June 17, 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: Sam Crawford Bob Kelly Also Present: Seth Fleetwood Carl Weimer Laurie Caskey- Schreiber Absent: L. Ward Nelson COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 1. ORDINANCE AMENDING THE 2008 WHATCOM COUNTY BUDGET, SEVENTH REQUEST, IN THE AMOUNT OF $252,010 (AB2008 -226) Crawford asked about the Copper Building cleaning, and if the cost is included in the lease. Dewey Desler, Deputy Administrator, stated it is not part of the lease. They didn't recognize the cost. The Facilities Division doesn't have budget authorization for this cost. They had been paying some costs from other places. The administration is working on a proposal to move staff to the Civic Center third flood. They will use the current rent as the basis to pay the cost to rehabilitate the Civic Center third floor. They will renegotiate this lease to a month -to -month arrangement. Crawford moved to recommend adoption to the full Council. Motion carried unanimously. COUNCIL "CONSENT AGENDA" ITEM 1. REQUEST AUTHORIZATION FOR THE COUNTY EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY DIVISION OF EMERGENCY MANAGEMENT AND SNOHOMISH COUNTY DEPARTMENT OF EMERGENCY MANAGEMENT TO PROVIDE FUNDING TO ENHANCE LOCAL JURISDICTION CAPABILITY TO PREVENT, DETER, RESPOND TO, AND RECOVER FROM INCIDENTS OF TERRORISM, IN THE AMOUNT OF $140,815 (AB2008 -229) Crawford stated the Committee would discuss this item and the Consent .Agenda item two together. Don Boyd, Sheriff's Office, stated the first item is the State Homeland Security support program, which is the annual federal support to sustain homeland security in Whatcom County, which receives $75,000 for one full -time equivalent (FTE) employee. The remainder of the grant monies is distributed throughout other jurisdictions. The second item supports law enforcement equipment capabilities and operations. The Sheriff's Office Finance and Administrative Services Committee, 6/17/2008, Page 1 receives $41,000, and the remainder is distributed among the rest of the agencies in Whatcom County. Snohomish County is the pass- through agency for region one. Fleetwood asked what the FTE does. Boyd stated the primary task is homeland security issues, such as the national incident management system (IVIMS) compliance for all Whatcom County emergency response agencies. The FTE manages the national incident command training system and reports to the State on homeland security issues. The primary training is on the national incident management system. The training must be done to maintain Whatcom County revenues. Incident commanders must take management courses. They are attempting to do a presentation by the State in September to explain the system to elected officials and executive -level members. They will talk through what happens during a response. Crawford asked about a recent training exercise. Boyd stated they had two field venues, at Camp Horizon and the Lynden Fairgrounds, to test the integration of Department of Defense resources locally, under local control. It was a test for the Department of Defense. It was a huge success in Whatcom County. It was contamination of an explosion of hazardous material. Kelly moved to recommend approval of this item and Consent Agenda item two to the full Council. Motion carried unanimously, 2. REQUEST AUTHORIZATION FOR THE COUNTY EXECUTIVE TO ENTER INTO AN INTERAGENCY AGREEMENT BETWEEN WHATCOM COUNTY AND SNOHOMISH COUNTY TO PROVIDE FUNDING TO ENHANCE THE CAPABILITY OF LAW ENFORCEMENT TO DETECT, DETER, DISRUPT, AND PREVENT ACTS OF TERRORISM UNDER THE DEPT OF HOMELAND SECURITY LAW ENFORCEMENT TERRORISM PREVENTION PROGRAM FOR FEDERAL FISCAL YEAR 2007, IN THE AMOUNT OF $126,895 (AB2008 -230) See Consent Agenda item one. 3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT WITH CATHOLIC COMMUNITY SERVICES OF NORTHWEST WASHINGTON TO PROVIDE OUTPATIENT SUBSTANCE ABUSE SERVICES TO LOW - INCOME PEOPLE IN WHATCOM COUNTY (AB2008 -231) Crawford moved to recommend approval to the full Council. Motion carried unanimously. 4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT WITH ADVANCED CHOICES TO PROVIDE OUTPATIENT SUBSTANCE ABUSE SERVICES TO LOW- INCOME PEOPLE IN WHATCOM COUNTY (AB2008 -232) Kelly moved to recommend approval to the full Council. Motion carried unanimously. S. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT WITH WESTCOAST COUNSELING AND TREATMENT SERVICES TO Finance and Administrative Services Committee, 6/17/2008, Page 2 PROVIDE OUTPATIENT SUBSTANCE ABUSE SERVICES TO LOW- INCOME PEOPLE IN WHATCOM COUNTY (AB2008 -233) Crawford moved to recommend approval to the full Council. Motion carried unanimously. 6. REQUEST RATIFICATION OF 2008 — 2012 TEAMSTERS UNION LOCAL 231 HEALTH CLERICAL COLLECTIVE BARGAINING AGREEMENT (AB2008 -121D) Kelly moved to recommend approval to the full Council. Motion carried unanimously. 7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND WHATCOM CENTER FOR EARLY LEARNING FOR CHILD DEVELOPMENT SERVICES, IN THE AMOUNT OF $296,000 (AB2008 -234) Crawford moved to recommend approval to the full Council. Motion carried unanimously. 8. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND ARC OF WHATCOM COUNTY, PARENT COALITION AND FAMILY SUPPORT SERVICES, IN THE AMOUNT OF $51,105 (AB2008 -235) Kelly moved to recommend approval to the full Council. Motion carried unanimously. 9. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A CONTRACT BETWEEN WHATCOM COUNTY AND WHATCOM COUNSELING AND PSYCHIATRIC CLINIC TO FUND THE JAIL DIVERSION PROJECT, IN THE AMOUNT OF $135,442 (AB2008 -236) Crawford moved to recommend approval to the full Council. Motion carried unanimously. 10. REQUEST AUTHORIZATION FOR AN INCREASE IN THE EXPENDITURE AMOUNT FOR THE ANNUAL SUPPLY OF LIGNOSITE FOR DUST CONTROL ON COUNTY ROADS DUE TO SURCHARGE BY SOLE SOURCE VENDOR, MEENDERINCK, LLC FOR INCREASED FUEL COSTS FROM $50,000 TO $60,000 (AB2008 -237) Crawford moved to recommend approval to the full Council. He asked if the surcharge is reasonable and if the County can say no to the surcharge. Eric Schlehuber, Public Works Department, stated the surcharge is reasonable, the Council can say no. There would be no dust control measures on gravel roads in Whatcom County. Finance and Administrative Services Committee, 6/17/2008, Page 3 Crawford asked if they can back out of an existing contract because the County wouldn't pay the surcharge. Schlehuber stated it is technically not a contract, because the purchase is as- needed. Crawford asked the future of getting this product. Schlehuber stated the County has been getting this from Meederinck during the last five years. They have had sources from Oregon. Now, the source is from Everett. It's a consistent source. Motion carried unanimously. 11. APPROVAL BY COUNCIL, ACTING AS THE WHATCOM COUNTY FLOOD CONTROL ZONE DISTRICT BOARD OF SUPERVISORS, FOR CONSTRUCTION CONTRACT AWARD TO GRANITE CONSTRUCTION NORTHWEST, INC. AS LOW BIDDER FOR SWIFT CREEK CHANNEL EXCAVATION, STOCKPILING AND BANK ARMORING, IN THE AMOUNT OF $289,970 (AB2008 -238) Crawford moved to recommend approval to the Flood Control Zone District Board of Supervisors. Kelly asked if this is part of a plan. Paul Pittman, Public Works Department, stated they have an informal plan. They've been creating a long -term plan. These are intermediate steps to hold things at bay until they can get to the long -term plan. They used to do a project on a much larger scale. Dredging is limited this year. They will do bank armoring. The objective is to keep the creek within its banks until they get to the long -term plan. There will be dust control measures that will bind the soil together. It lasts about five years per application. They apply from a water truck. Motion carried unanimously. COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 2. DISCUSSION REGARDING PROPOSED BUDGET DEVELOPMENT GUIDELINES FOR 2009 -2010 (AB2008 -227A) Kelly stated he hadn't voted on these items. He was concerned that this would limit the councilmembers' abilities to be flexible during the budget cycle. He asked if this guidance is to department heads. Dewey Desler, Deputy Administrator, stated it is. Every year over the last 15 years, the Council has always developed a statement like this in May or June. The administration uses the statements to confirm the budget with all the people involved during the budget. They also reference it when the budget is presented in October. Kelly stated that given the answers he received from legal counsel regarding the 2005 ordinance, it may not be appropriate to reference the biennial budget in the guidelines. Desler stated the administration will propose another ordinance at its next meeting. Other civil deputies in the office discovered that the initial biennial budget ordinance was for 2005 and 2006, but the Council effectively did it again for this budget by adopting a biennial budget. They are working on proposed language for another ordinance. The administration continues to advocate for a biennial budget. It is a good practice for the Finance and Administrative Services Committee, 6/17/2008, Page 4 1 County administration and a confirmation of what the voter's authorized when they 2 approved the provision. 3 4 Kelly stated it's premature to reference a two -year budget in the guidelines until they 5 adopt another ordinance approving a biennial budget process. 6 7 Weimer stated the guidelines are good, whether it's an annual or biennial budget. 8 They can take out that reference for now. He has proposed changes. 9 10 Crawford stated he has no concern with the language and supports the biennial 11 budget process. His intent in 2004 was to adopt the biennial process permanently. A 12 biennial process makes sense in terms of the amount of work required for budget 13 preparation by all County staff. The County is flexible enough to address any issues that 14 come up in the meantime. Move forward. 15 16 Weimer stated he doesn't have a concern with the biennial process. The 17 councilmembers do have a concern with not having a opportunity to review the budget 18 during the off -year. They will need to discuss how the Council will have an opportunity to 19 review the budget between years. 20 21 Fleetwood referenced guideline one regarding revenue remaining stable. He thought 22 sales tax revenues were going down. Desler stated it's difficult to predict revenues. 23 Historically, sales tax revenue has increased five to six percent each year for several 24 reasons. In the last few months, they've noticed that the increases will be more like 1.5 25 percent per year. Sales tax revenue also comes from people outside the county. The 26 County has had more Canadian visitors, which affects retail sales in cities. However the 27 drop -off in construction activity has been profound, and counters the rise in retail sales tax. 28 29 The last few years, they have had interest income from the reserves. When they 30 spend down the reserves, the interest income will be less. Also, the Federal Reserve 31 reduces its discount points, which drives down interest rates. Principal and rates are both 32 going down. 33 34 They are also concerned about income, such as construction permit fees, recording 35 fees, and septic tank application fees. That activity has slowed, and the fee revenue is less. 36 Grant revenue continues to shrink, also. 37 38 Property tax revenue will remain stable. The total revenue will remain between $70 39 million and $74 million between now and 2009. Costs are rising faster than revenue, 40 however. 41 42 Caskey- Schreiber stated councilmembers are working on an ordinance to address the 43 mental health sales tax that is available. It can be used to augment drug court operations, 44 for example. Find other areas of the budget for which that tax can be applied. Her goal is 45 to eliminate the high number of people who have mental health issues entering into the 46 correctional system. She would like to time that with the budget process. 47 48 She is not concerned about the biennial budget process, other than those who 49 weren't aware of it and seemed to get left out of the process. 50 51 Weimer stated the Council has directed the administration to come back with a 52 budget that increases the revenue by $5 million or more so they can fund stormwater 53 around the lake. The Birch Bay Watershed and Aquatic Resources Management (BBWARM) 54 district will bring in more money. He's trying to find a way to capture instances in which the 55 Council has directed the administration to come back with increasing levels of revenue. Finance and Administrative Services Committee, 6/17/2008, Page 5 He's looking for suggestions. One idea is to delete the first sentence of item one on Council packet page 37. Crawford stated this committee only makes recommendations to the full Council. The full Council must vote on those recommendations. It's up to the committee members to make motions. If they don't, other councilmembers can make motions at the full Council meeting. Weimer stated the language indicates that the revenue is stable, but the Council has already directed the administration to present a budget with significant increases in certain areas. Don't have different statements with cross - purposes. Crawford moved to amend Council packet page 37: • Item 1: "The Council recognizes that projected 2009/2010 general fund revenues" • Item 1: "A proposal for new or expanded high priority services funded by revenue to the general fund should be offset by a reduction or elimination of lower priority services or an increase in revenue." • Item 3: "The Council supports the administration's desire to avoid layoffs. The Council anticipates that no new positions funded by revenue to the general fund will be considered unless...." Motion carried unanimously. Crawford moved to amend item one, "The Council recognizes that projected 2009/2010 general fund will likely remain stable in 2999/2010 the coming years. "rhe Council also...." And all other references to 2009/2010 in the guidelines and its title. (Clerk's Note: End of tape one, side A.) Kelly asked if it would be easier to ask staff to remove any reference to a biennial budget rather than wordsmithing the document. Desler stated the administration will recommend a biennial budget to the Council. The Council can take the language out, but the administration will propose continuing with the biennial budget process. The administration will bring forward an ordinance for introduction tonight. Motion carried unanimously. Crawford stated it's already administrative policy to downsize staff levels through attrition, retirement, and voluntary separation first. State that in the guidelines. He moved to add a sentence reflecting that policy in the guidelines. Desler stated that is an administrative policy now. They can include a sentence to the guidelines, number three. "The Council supports staff reductions first be accomplished through attrition, retirements, and voluntary separations." Motion carried unanimously. 3. DISCUSSION REGARDING THE PROPOSED FORMAT AND CONTENT OF THE ADDITIONAL SERVICE REQUEST (ASR) FORMS TO BE USED IN PREPARING 2009 -2010 DEPARTMENTAL BUDGETS (AS2008 -2278) Dewey Desler, Deputy Administrator, stated he wants to know if there are other questions that should be included on the additional service request (ASR). They have used this form for six or seven years. They want to know the nature of the problem, the proposal, the outcome of the proposal, and impacts to other operations. They need to know Finance and Administrative Services Committee, 6/17/2008, Page 6 1 all the issues of a proposed additional services request. The form is designed to inform the 2 Executive's Office, Council, and public. 3 4 Kelly stated the questions look good to him. 5 6 Crawford stated he agrees. It provides accountability to the process. 7 8 Rebecca Craven, Council Policy Analyst, stated the instructions on the form direct the 9 department head to reprioritize existing expenditures before submitting an ASR. She asked 10 if the Council receives that information at the time it receives an ASR. She asked if the 11 Council learns information on what programs no longer receive all or partial funds when re- 12 prioritizing the new ASR. It doesn't seem exactly clear. Under item three or six, create an 13 explicit question of whether the ASR is funded from already - allocated budgeted authority. 14 15 Kelly stated he would like a way for the ASR to describe the effects of an ASR to 16 other items in the budget. It would be good to know what is suffering or being left out. 17 18 Caskey- Schreiber stated she agrees that there should be a explanation of how other 19 things in the department's budget will be shifted. 20 21 Crawford stated add third bullet point under item three of the ASR questions, "How 22 will this proposal affect the priorities and objectives of the existing budget ?" 23 24 The Committee concurred. 25 26 Crawford stated the Council appreciates the ASR process. It is very useful. Desler 27 stated he agreed. 28 29 30 OTHER BUSINESS 31 32 There was no other business. 33 34 35 ADJOURN 36 37 The meeting adjourned at 12:08 p.m. 39 40 41 Jill Nixon, Minuh j anscr tion 42 %%INe1�� iihl, Y C O 43 . � (/ 44 ATTE`y�HAtC�•.`GW���i 45 + ;so 46 O COLNV f 48 A . 49 • 50 Dana row *-P914 0 M tf cil *rk �If1111111�``' WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON & owwa Sam rawford, Adil Committee Chair Finance and Administrative Services Committee, 6/17/2008, Page 7