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HomeMy WebLinkAboutFinance March 25 2008WHATCOM COUNTY COUNCIL Finance and Administrative Services Committee March 25, 2008 Committee Chair L. Ward Nelson called the meeting to order at 11:00 a.m. in the Council Chambers, 311 Grand Avenue, Bellingham, Washington. Present: Absent: Sam Crawford None Bob Kelly Also Present: Laurie Caskey- Schreiber Seth Fleetwood Barbara Brenner Carl Weimer SPECIAL PRESENTATION 1. CITY OF BELLINGHAM FINANCE DIRECTOR JOHN CARTER AND PUBLIC FACILITIES DISTRICT MANAGER TARA SUNDIN WILL PRESENT THE 4T" QUARTER REPORT FOR 2007 ON THE BELLINGHAM - WHATCOM PUBLIC FACILITIES DISTRICT ACTIVITIES (AB2008 -026) Tara Sundin, Public Facilities District Manager, read from the activity report in the Council packet and stated the new Children's Museum is on budget and on schedule. The Mount Baker Theater should reopen in December. The new Art and Children's Museum is a Leadership in Energy and Environmental Design (LEED) building, and received a grant to improve stormwater treatment on -site. John Carter, City of Bellingham Finance Director, submitted and read from the December 2007 Public Facilities District Operating Statement in the Council packet. Crawford asked what they are doing about parking. The County became involved in the district and gave the City control over the project. The County always emphasized its desire to have combined -use parking. Parking would serve the theaters and museums in the evening, and be available for the public during the day. The new district staff must be aware of the County's interest in this matter. To -date, the District has not created one additional parking space near the courthouse. He will always bring up this issue. Nelson asked that the next District presentation include an update on parking facilities and a diagram or map of the area construction projects. Crawford stated amend the City and County interlocal agreement to present updates from the Public Facilities District every six months instead of every three months. Nelson stated he prefers updates every three months, since construction happens rapidly. If there is nothing new to report, allow the PFD to submit written reports only. Dewey Desler, Deputy Administrator, stated the County could receive a written report every six months and presentation every six months. It is not necessary to change Finance and Administrative Services Committee, 3/25/2008, Page 1 1 the interlocal agreement. The Council can appoint to the Public Facilities District Board, 2 which is a separate municipal board. 3 4 Crawford stated the Executive appoints the position. The Council only confirms the 5 Executive's appointment. 6 7 8 COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 9 10 1. ORDINANCE ADOPTING 2008 BUDGET SUPPLEMENTAL REQUEST #5, IN THE 11 AMOUNT OF $248,274 $848,274 (AB2008 -127) 12 13 Crawford moved to recommend approval of the substitute ordinance to the full 14 Council 15 16 Nelson stated he'd had a question regarding language in the Lily Point contract 17 regarding habitat restoration, but his question was resolved. 18 19 Fleetwood asked the balance in the conservation futures fund after this expenditure. 20 21 Dewey Desler, Deputy Administrator, stated the balance will be about $3.3 million. 22 23 Motion carried unanimously. 24 25 (Clerk's Note: Discussion continued, below.) 26 27 28 COUNCIL "CONSENT AGENDA" ITEM 29 30 1. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY PUBLIC 31 AUCTION, REQ. #TR2008 -03 (AB2008 -135) 32 33 Crawford moved to recommend approval to the full Council of Consent Agenda 34 items one and three and the substitute version of Consent Agenda item two. 35 36 Motion carried unanimously. 37 38 2. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY PUBLIC 39 AUCTION, REQ. #TR2008 -04 (AB2008 -136) 40 41 See Consent Agenda item one. 42 43 3. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY PUBLIC 44 AUCTION, REQ. #TR2008 -05 (AB2008 -137) 45 46 See Consent Agenda item one. 47 48 4. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY PUBLIC 49 AUCTION, REQ. #TR2008 -06 (AB2008 -138) 50 51 Crawford moved to recommend approval to the full Council of Consent Agenda 52 items four and the substitute version of Consent Agenda item five. 53 Finance and Administrative Services Committee, 3/25/2008, Page 2 1 Motion carried unanimously. 2 3 5. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY PUBLIC 4 AUCTION, REQ. #TR2008 -07 (AB2008 -139) 5 6 See Consent Agenda item four. 7 8 6. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY 9 NEGOTIATION, REQ. #TR2008 -08 (AB2008 -140) 10 11 Crawford moved to recommend approval to the full Council of Consent Agenda 12 item six and the substitute version of Consent Agenda item seven. He asked why the 13 County would buy fractional interests in beach reserves, and if they will negotiate with other 14 property owners with interests. 15 16 Steve Oliver, County Treasurer, stated the County will negotiate with the other 17 interests. The other property owners have requested the sale. 18 19 Motion carried unanimously. 20 21 7. RESOLUTION TO SET HEARING TO SELL TAX -TITLE PROPERTY BY 22 NEGOTIATION, REQ. #TR2008 -09 (AB2008 -141) 23 24 See Consent Agenda item six. 25 26 S. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AWARD BID #08 -21 27 TO SOLE BIDDER, CONCRETE TECHNOLOGIES CORPORATION, FOR PRE - 28 STRESSED VOIDED SLAB BRIDGE GIRDERS IN THE AMOUNT OF $166,816.51 29 (AB2008 -142) 30 31 Crawford moved to recommend approval to the full Council. 32 33 Motion carried unanimously. 34 35 9. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AUTHORIZE THE USE 36 OF THE WASHINGTON STATE CONTRACT TO PURCHASE AUTO PARTS FOR 37 MAINTENANCE OF COUNTY VEHICLES AND EQUIPMENT FROM LOCAL 38 FRANCHISE DEALERS OF CARQUEST AND NAPA PARTS IN AN AMOUNT TO 39 EXCEED $35,000 (AB2008 -143) 40 41 Nelson moved to recommend approval to the full Council. 42 43 Motion carried unanimously. 44 45 10. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A 46 CONTRACT BETWEEN WHATCOM COUNTY AND WESTERN WASHINGTON 47 UNIVERSITY SMALL BUSINESS DEVELOPMENT CENTER FOR FUNDING FOR 48 PHYSICIAN RECRUITMENT IN THE AMOUNT OF $19,980 (AB2008 -144) 49 50 Nelson moved to recommend approval to the full Council. 51 52 Crawford asked who came up with this idea. 53 Finance and Administrative Services Committee, 3/25/2008, Page 3 1 Nelson stated it was a survey that was done three years ago. 2 3 Regina Delahunt, Health Department Director, stated the Health Department did this 4 in conjunction with the Whatcom Alliance for Healthcare Access (WAHA). Western 5 Washington University will do a physician survey in the community to identify gaps and 6 shortages. This particular survey will be on all physicians, including specialties. They will 7 focus on access for low- income Medicaid folks. 8 9 Brenner stated the Health Department brought this forward a few years ago. 10 Delahunt stated Western Washington University did an excellent job on the two prior 11 surveys. The last survey was on obstetrical care. As a result of that survey, they have 12 made progress in filling those gaps in the community. 13 14 Crawford asked if this expense is in the current budget. Delahunt stated it is. 15 16 Motion carried unanimously. 17 18 11. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A 19 MEMORANDUM OF UNDERSTANDING WITH THE CITY OF NOOKSACK TO 20 PROVIDE FCZD FUNDING TO ASSIST IN PROVIDING THE MATCH TO GRANT 21 FUNDS IN THE AMOUNT OF $25,000 (AB2008 -145) 22 23 Crawford moved to recommend approval to the full Flood Control Zone District 24 Board of Supervisors. 25 26 Nelson stated this is lower on the project priority list. He asked if this is coming 27 forward because it has grant funding, and if the grant funding was included in the priority 28 rating calculation. 29 30 Paula Cooper, Public Works Department, stated the City and Flood Control Zone 31 District Advisory Committee requested and recommends approval. The cost and outside 32 funding aren't included in the scoring criteria. The grant doesn't change the benefit 33 evaluation score, which is a measure of how a project benefits the community. The fact of 34 outside funding is a post- scoring factor. 35 36 Crawford stated the Federal Emergency Management Agency (FEMA) maps aren't 37 available on its website. Cooper stated the detailed work maps are those used internally to 38 review things. For some reason, FEMA makes them all generic and less useful. 39 40 Crawford asked how they can get that information to the public via the internet. 41 Cooper stated they can put it on the County website. Officially, they still have to use the 42 FEMA map to make determinations, for flood insurance purposes. 43 44 Crawford stated FEMA will do a letter of map amendment (LOMA) based on County 45 maps. The information to the property owner is very important. Cooper stated that's 46 correct. 47 48 Crawford stated he would love to see the public have access to these maps. Cooper 49 stated people can come into her office and get them. 50 51 Motion carried unanimously. 52 Finance and Administrative Services Committee, 3/25/2008, Page 4 12. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AWARD BID #07 -15 TO MILLER'S PAINTING FOR ADDITIONAL MISCELLANEOUS PAINTING OF WHATCOM COUNTY BUILDINGS IN THE AMOUNT OF $60,000 (AB2008 -146) Crawford moved to recommend approval to the full Council. Motion carried unanimously. 13. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO A LEASE AGREEMENT WITH ]IM SNYDAR AND WHATCOM COUNTY FOR LEASE OF 80 ACRES OF LAND FOR FARMLAND USE AT HOVANDER HOMESTEAD PARK IN THE AMOUNT OF $3,000 (AB2008 -147) Nelson moved to recommend approval to the full Council. Motion carried unanimously. 14. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO ENTER INTO AN INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY AND THE CITY OF BELLINGHAM TO PROMOTE, EDUCATE AND ADVOCATE FOR TECHNOLOGY BUSINESS AND TECHNOLOGY -BASED ECONOMIC DEVELOPMENT IN WHATCOM COUNTY IN THE AMOUNT OF $48,000 (AB2008 -148) Nelson moved to recommend approval to the full Council. Crawford asked if the County received a presentation on this work during the last budget cycle. Dewey Desler, Deputy Administrator, stated he doesn't recall a budget presentation from the applicant. He described the request. Motion carried unanimously. 15. REQUEST APPROVAL FOR THE COUNTY EXECUTIVE TO AWARD BID #08 -09 TO LOW BIDDER, TOPSIDE ROOFING & CONSTRUCTION, FOR REPLACEMENT OF THE ROEDER HOME ROOF IN THE AMOUNT OF $42,362.72 (AB2008 -149) Crawford moved to recommend approval to the full Council. Motion carried unanimously. COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 1. ORDINANCE ADOPTING 2008 BUDGET SUPPLEMENTAL REQUEST #5, IN THE AMOUNT OF $4 $848,274 (AB2008 -127) (Clerk's Note: Discussion continued from above.) Nelson asked about emergency management services (EMS) request. "there is a decreased service need because the City of Bellingham is no longer involved, yet they want to maintain the same level of funding. Finance and Administrative Services Committee, 3/25/2008, Page 5 I Desler stated there is an Emergency Management Council. The City of Bellingham 2 withdrew its support of this effort. The Emergency Management Council voted last fall to 3 ask for increase assessments. Whatcom County's share of that was $41,000. It was also 4 going to spend down some of its fund balance. It wants to maintain the existing level of 5 personnel and capacity in the Emergency Management Division. 6 7 Crawford stated the removal of the City's participation has actually created more 8 work for the Emergency Management Division. They are completely duplicating efforts. He 9 asked if the new mayor has considered rejoining the joint effort. Desler stated he hasn't 10 talked to the new mayor about that. 11 12 Brenner stated the County should put a request in writing to the City to combine 13 services again. 14 15 Desler stated the Council could create a resolution related to policy issues. 16 17 Nelson stated he would develop a County Council resolution for the City about not 18 duplicating those services. He would like to see information on the additional expenditures 19 because of the divided and duplicative services. In the meantime, he's not sure what the 20 additional money is going for. Desler stated he will provide information before the Council 21 meeting on the additional expenses. 22 23 24 COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 25 26 2. ORDINANCE FOR PROJECT -BASED BUDGET REQUEST NO. 2008 -02 FOR 27 COUNTY ROAD PROJECT 905014, REPLACEMENT OF THE WHATCOM CHIEF 28 (AB2008 -109) 29 30 Frank Abart, Public Works Director, submitted a Power Point presentation (on file). 31 32 (Clerk's Note; End of tape one, side A.) 33 34 Patrick Vasicek, Art Anderson Associations, Bremerton, stated it's been a pleasure 35 working with the County staff. He is impressed with their knowledge, professionalism, and 36 dedication to duty. He read the presentation. 37 38 Nelson asked if service life is determined over the course of time, not during 39 construction. Vasicek stated that's correct. They build in protection systems, strength, and 40 durability of the systems to last for 40 years. There are criteria they can use. They have to 41 go through a trade -off analysis to make sure they provide the best value for the money. 42 43 Brenner stated someone from the Coast Guard should tell them the life left in the 44 Whatcom Chief. She asked why the Coast Guard would change the Chief's Certification of 45 Inspection to Reduce Lane Widths. Vasicek stated the Coast Guard's Code of Federal 46 Regulations (CFR) specifically states they are required to provide the ability for passengers 47 to exit their cars. 48 49 Brenner stated the Coast Guard has allowed an exception for the Whatcom Chief. 50 She asked what information Mr. Vasicek has that indicates the Coast Guard is considering 51 changing its exception. Vasicek stated it is a judgment call. The Masters on the boat have 52 authority and are responsible for the safety of the passengers. There is a good chance it 53 can happen. The CFR is explicit. Finance and Administrative Services Committee, 3/25/2008, Page 6 Brenner asked why they would do any Nation will renew its lease with the County wing walls is not stable. redesign until the County knows if the Lummi t Gooseberry Point. Abart stated one of the Brenner stated it seems that costs for repairs will be less if they keep the Whatcom Chief at Gooseberry Point. Abart stated that is correct. She asked if they can measure the different costs if the County stays at Gooseberry Point with either the Chief or a new boat, or moves to a new location. Abart stated the costs will be higher if they build the docks to fit a new ferry. The work they have to do this year has to be done either way. Caskey- Schreiber asked when the agreement with the Lummi Nation expires and whether the County will pursue a 40 -year agreement, since they are considering a ferry that's supposed to last for 40 years. Abart stated the agreement expires in 2010. Their discussions now with the Lummi Nation are between five and 15 years, with renewal options. Caskey- Schreiber stated she's not comfortable moving forward until the County secures a lease for the dock location. Fleetwood asked the arguments for proceeding without that certainty. Abart stated he doesn't have a position one way or another. He's just providing information. Arguments in favor of a new ferry would be the grant from the State in the amount of $407,500 per year for 20 years to help with the debt service. This is also an opportunity to upgrade that equipment. Dewey Desler, Deputy Administrator, stated the administration recommends that the County acquire a new ferry. It is part of the 14 -year plan that the County Council approved. The administration is trying to carry out implementation of those components. Vasicek stated a key issue is that demand for capacity of the system is over the top right now. They don't have enough capacity to deal with the current demand. The reason for the 14 -year plan was to meet the demand. Weimer stated they haven't seen information from the Coast Guard on the life left in the Whatcom Chief. He asked which parts of the Whatcom Chief are approaching the end of their useful life. Vasicek stated the mechanical systems, structural supports inside the boat, hull, and all control systems are components. They routinely upgrade, replace, and repair those components. At some point they reach a point of diminishing returns. The Chief will probably last for another 12 years. That's not the reason they're replacing the Chief. They are replacing the Chief because they need extra capacity. Weimer stated he hasn't seen information that the Chief will last only 12 more years. He has information that the hull is good for another 45 years, and that the other structural components have been replaced. He asked why they need to replace it in 10 or 12 years. Vasicek stated maintenance costs go up on an older boat. Buying a new ferry is a better financial decision for the people of the county. It will eventually produce a more cost - effective system. Caskey- Schreiber asked why they would keep the Chief as a backup ferry, which is in the plan, since it only has 12 years left on its life. Vasicek stated it is a good fiscal decision, because they won't have certain expenses to support passenger ferry contracts, which are Finance and Administrative Services Committee, 3/25/2008, Page 7 expensive. They won't have to overhaul a backup boat as often. It requires less service and will have less wear. It will last longer as a backup boat. Caskey- Schreiber stated the real issue for her is about cost. She's not sure the County can afford this. Only 50 percent of the population wants the new boat. Vasicek read the presentation on the demand /capacity analysis. The Whatcom Chief is now at a level of service F. Fleetwood stated people think that a new ferry will lead to more development on the island. He disagrees. Density is limited by zoning. He wants to base his decision on the question of structural soundness. He's asking for a strong opinion from an expert on hull strength and how much time the current ferry has. Nelson stated the County's hired engineer estimates that there is 12 years structural capacity, which will include higher costs to maintain service during that 12 years. Structural capacity is measured over time. They can't pinpoint the amount of life left. It's not the Coast Guard's job to provide an opinion on the life of the boat. It is to provide an inspection and report of safety issues. The Coast Guard will not give an opinion because it will put them in the position of liability or responsibility. The Council must accept the opinion for which it paid, or wait for the Coast Guard to make a determination. This is a tough decision. The expert opinion is that the ferry has 12 years of life expectancy. Abart stated the County has a 25 -year renewal for the current Gooseberry Point ferry dock location. It's under discussion now. The Lummi Nation would like to alter that renewal. Caskey- Schreiber asked on what they projected the costs of the new ferry and whether they projected fuel costs with four runs instead of five runs every two hours. Vasicek stated they factored those things in. Abart stated the cost of repairs on the current ferry have escalated in the same fashion of building the new one. Caskey- Schreiber stated costs escalate quickly. She asked if the larger boat will use less fuel since it makes one less run every two hours. Vasicek stated it will use more fuel. It comes down to capacity and the number of vehicles and people they serve. Crawford moved to recommend approval to the full Council. These are all good points. It is a challenging decision. Costs are going up. There is no reason to delay any longer. If they delay, they are deferring an inevitable decision. Weimer stated he wants to see a marine survey. (Clerk's Note: End of tape one, side 8.) Weimer stated some of the island folks don't seem to think there is a capacity problem. The reason for this seems to be capacity, not whether the ferry is about to quit operating. He won't support this until he sees a marine survey on the life left in the ferry. One boatyard company can provide a specific report on how long different parts of the ferry will last, and how much longer the ferry will last. Finance and Administrative Services Committee, 3/25/2008, Page 8 Nelson stated the County's engineering contractor said the ferry has 12 years left. Vasicek stated everyone on his team is confident about that estimate. Much of it depends on how much money they put into it. They are operating at a capacity level of service F, which is unacceptable in transportation. The fact is that they are over capacity. Caskey- Schreiber stated the new ferry will cost about $11 million. The dock improvements will cost $4 -5 million. The County must get a bond for the money. She asked if they are going to take this to the voters. She prefers to do that. Desler stated that is a County Council decision. It's an option. Brenner stated she is opposed to taking it to the voters. They must make a decision. Motion carried unanimously, COUNCIL. "CONSENT AGENDA" ITEM 16. REQUEST AUTHORIZATION FOR THE COUNTY EXECUTIVE TO ENTER INTO AN AGREEMENT WITH THE WHATCOM LAND TRUST FOR THE ASSIGNMENT OF THE TRANSFER AND SALES AGREEMENT, ASSIGNMENT OF THE DEED OF RIGHT, AND A CONSERVATION EASEMENT FOR APPROXIMATELY 90 ACRES OF UPLAND AND 40 ACRES OF TIDELANDS AT LILY POINT, POINT ROBERTS WASHINGTON, IN THE AMOUNT OF $600,000 (AB2008 -153) Nelson moved to recommend approval to the full Council. Motion carried unanimously. (Clerk's Note: Discussion continued, below.) COMMITTEE DISCUSSION 1. DISCUSSION WITH PUBLIC WORKS DIRECTOR FRANK ABART AND DEPUTY ADMINISTRATOR DEWEY DESLER REGARDING ROAD FUND AND CAPITAL PROJECT REVIEW (AB2008 -097) This item was not discussed. Held in committee two weeks. COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL 2. ORDINANCE FOR PROJECT -BASED BUDGET REQUEST NO. 2008 -02 FOR COUNTY ROAD PROJECT 905014, REPLACEMENT OF THE WHATCOM CHIEF (AB2008 -109) (Clerk's Note: Discussion continued from above.) Ben Rogers, North Nugent Road, Lummi Island, stated they may need more public transportation for people, not vehicles, given the rising fuel costs. They could convert the existing boat to be used by more people and fewer cars. The design of the new boat may become obsolete soon. Finance and Administrative Services Committee, 3/25/2008, Page 9 1 2 OTHER BUSINESS 3 4 There was no other business. 5 6 7 ADJOURN 8 9 The meeting adjourned at 12:50 p.m. 10 (� 11 12 13 Jill Nixon, Minutes Transcription 14 15 u urrp� 16 AT f E �l�`. 0 N 17 .�` G ••Goes• 18 G�PZ co •.• 19 „2G • 20 - - -_ 21 ML O 22 �21rown= pnci lerk 11 see S WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON r�walkd Nelson, Co mittee Chair Finance and Administrative Services Committee, 3/25/2008, Page 10