HomeMy WebLinkAboutFinance February 10 20041
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
February 10, 2004
Committee Chair Sam Crawford called the meeting to order at 11:30 a.m. in
the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
L. Ward Nelson None
Sharon Roy
Also Present:
Barbara Brenner
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. REQUEST AUTHORIZATION TO RENEW WHATCOM COUNTY'S
PROPERTY INSURANCE POLICY (AB2004 -067)
Dewey Desler, Deputy Administrator, submitted information (on file). The
documents in the County Council packet should be reconsider based on additional
work they've done the last couple of days. Consider the additional option, which is
a better arrangement for the County. Consider option two from Commonwealth.
There is a $16,400 difference between the two options. Option two is over $2,400
less than the current premium.
Roy asked if the County has worked with Commonwealth in the past. Desler
stated it has.
Crawford asked what they're giving up by not having coverage for domestic
terrorism. Desler stated that item is not well defined in the law. There's confusion
with what exactly domestic and foreign terrorism is.
Barry Hanson, Unity Group, stated the federal government put in place the
federal Terrorism Risk Insurance Act of 2002, to distinguish between foreign and
domestic terrorism. By purchasing foreign terrorism insurance, the insurance
companies participate with the federal government to provide a re- insurance
mechanism for September 11. To trigger coverage for foreign terrorism, the
Secretary of State and Attorney General needs to certify the event as a foreign act
of terrorism. Foreign terrorism is someone from a foreign country taking action
that causes harm to people or property to influence and impact the government.
The language is specific, but there is little case law about it. The County is
purchasing insurance for foreign acts of terrorism when the federal government
deems it a federal terrorist act.
Finance and Administrative Services Committee, 2/10/2004, Page 1
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Crawford stated they should have insurance to cover incidences of domestic
terrorism if it's not covered under other categories of insurance. Hanson stated
there is a difference between vandalism, which has always been covered, and
domestic terrorism, which is now not covered, but he can't clearly articulate it. He
provided a copy of the endorsement that excludes non - certified acts of terrorism.
The endorsement clearly says that the insurance does not cover anyone who uses
any form of chemical or biological properties in an effort to coerce the civilian
population or influence policy and affect the conduct of government.
Crawford asked if the County can go with option two and get a rider to cover
those things. Hanson stated there isn't. The marketplace is divided in this area.
That coverage is simply not available to many insurance carriers.
Desler stated legal counsel feels there is a miniscule risk of domestic
terrorism, given the other coverages they carry.
Nelson asked if the difference between the two insurance options is outlined
in the handout. Desler stated there are modest differences between the two
options. The substantial differences are the total loss, strength of the company,
and the earthquake coverage. That's where most of the cost comes from.
Hanson stated the most dramatic change in benefit is an increase in
coverage for earthquake and floods.
Desler stated that the buildings are exposed to some earthquake issues.
Nelson moved to recommend option two, the Commonwealth insurance
plan, to the full Council.
Motion carried unanimously.
Desler stated the administration recommendation includes adding option B
for earthquake and flood coverage.
Crawford moved to include option B for earthquake and flood coverage.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND RE
SOURCES, TO DESIGN AND IMPLEMENT A TECHNICAL ASSISTANCE
PROGRAM FOCUSING ON WASTE REDUCTION AND RECYCLING FOR
WHATCOM COUNTY BUSINESSES, IN THE AMOUNT OF $35,000
(AB2004 -089)
Finance and Administrative Services Committee, 2/10/2004, Page 2
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Nelson moved to recommend approval to the full Council.
Brenner stated she recalled that more money than this was approved in the
2004 budget. She asked if the County would still get all the services it wanted.
Dewey Desler, Deputy Administrator, stated he doesn't recall that, but he
would check.
Nelson stated they went out for a request for proposal (RFP), and this is the
amount that was bid.
Brenner stated the RESources RFP came back at $50,000 or $60,000, and
this is only for $35,000.
Crawford stated the bid is in the packet, and is $35,000.
Brenner stated all she wants to know is what has been reduced from the
original RFP.
Roy stated she would prefer to wait to get this clarified before recommending
this item.
Nelson stated there is a bid from RESources. If RESources had a problem
with the amount of money or have been given a decreased scope of work, it would
be worth knowing. However, they applied a bid. This item won't change. There's
not reason for it to not move forward now.
Motion carried 2 -0 with Roy opposed.
(Clerk's Note: Discussion of this item continued below.)
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND NORSTAN
FOR REPLACEMENT OF PHONE SYSTEM AT HEALTH DEPARTMENT'S
STATE STREET FACILITY, IN THE AMOUNT OF $49,406.99 (AB2004-
090)
Roy moved to recommend approval to the full Council.
Crawford stated this was included in the Health Department budget.
Dewey Desler, Deputy Administrator, stated this is in preparation for the
Health Department consolidation.
Nelson asked if the company is from Whatcom County. Desler stated this
company is the contractor that has been with the County for 14 or 15 years.
Finance and Administrative Services Committee, 2/10/2004, Page 3
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND
NORTHWEST YOUTH SERVICES TO PROVIDE SERVICES RELATED TO
TEEN COURT, IN THE AMOUNT OF $18,500 (AB2004 -091)
Nelson moved to recommend approval to the full Council.
Crawford stated this item is funded through a grant from Alcoa, Juvenile
Accountability Incentive Block Grant (JAIBG), and the Whatcom County Superior
Court. The County is the pass- through agency for these funds.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
PROFESSIONAL SERVICE CONTRACT BETWEEN WHATCOM COUNTY
AND SHEARER DESIGN LLC, FOR THE STRUCTURAL DESIGN OF FROST
ROAD BRIDGE, IN THE AMOUNT OF $43,457 (AB2004 -092)
Roy stated there was much discussion and community input on this. She
thought this was done.
Nelson stated this is the money for the project.
Chris Brueske, Engineering Manager, stated the Council included the project
in the annual road program, six -year road program, and budget. This request is to
enter into the contract.
Roy moved to recommend approval to the full Council.
Motion carried unanimously.
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND RE
SOURCES, TO DESIGN AND IMPLEMENT A TECHNICAL ASSISTANCE
PROGRAM FOCUSING ON WASTE REDUCTION AND RECYCLING FOR
WHATCOM COUNTY BUSINESSES, IN THE AMOUNT OF $35,000
(AB2004 -089)
(Clerk's Note: Discussion continued from above.)
Brenner stated she just talked to the staff at RESources on the phone.
RESources submitted a proposal for $50,000 and was asked to revise it to $35,000,
even though the Council approved $50,000. The reduction means 20 percent fewer
businesses will be served, and they'll be no promotionals at all. They weren't given
Finance and Administrative Services Committee, 2/10/2004, Page 4
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
a reason for the reduction. She's concerned about the reduction. They're talking
about getting rid of exemptions because they're so concerned about people
recycling. This is the one contract that provides the most benefit for waste
reduction and recycling, and they're reducing the amount that was approved.
Desler stated he will check on the reason for the changes.
(Clerk's Note: Discussion continued below.)
S. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
GRANT AGREEMENT BETWEEN WHATCOM COUNTY AND THE
DEPARTMENT OF ECOLOGY TO PROVIDE MATCHING FUNDS FOR
SOLID WASTE PROGRAMS INCLUDING EDUCATION FOR SCHOOLS
AND THE GENERAL PUBLIC, FUNDING FOR THE DISPOSAL OF TOXICS
FACILITY, RECYCLING HOTLINE, AND SOLID WASTE AND LITTER
ENFORCEMENT, IN THE AMOUNT OF $495,505 (AB2004 -093)
Nelson moved to recommend approval to the full Council.
Crawford stated the State Department of Ecology is the source of the funds.
The County is also contributing money to the program.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND
PICTOMETRY INTERNATIONAL CORP. FOR LICENSED USE OF
SHORELINE ORTHOGONAL AND OBLIQUE IMAGES, IN THE AMOUNT
OF $145,000 (AB2004 -094)
Crawford stated funding is from the State Department of Ecology (DOE).
Roy moved to recommend approval to the full Council.
Nelson asked how this serves the public. He asked about the rights of use
for users. Staff people will use the pictures for shoreline assessment. They won't
have access to software except through authorized workstations. He asked how
people, except staff, examine the pictures.
Dewey Desler, Deputy Administrator, stated he would find out more
information.
Nelson stated the pictures are to remain the property of the company unless
a fee is paid. The County is paying them to do the pictures.
Finance and Administrative Services Committee, 2/10/2004, Page 5
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Jeff Chalfant, Senior Planner, stated an individual property owner can get a
copy of the image for personal use. If related to County business, the County can
make copies for individual use for no charge.
Nelson stated the contract isn't clear about that. Chalfant stated the
language is in the licensing agreement.
Nelson asked how the hard copy is different from the electronic copies.
Chalfant stated the digital copies are original copies. There would be no need for
use of a digital copy. They're not too concerned about individual property owners.
They're concerned about real estate folks and engineers who would take the
imagery to enhance their businesses.
Crawford asked if these pictures are more detailed than the public access
provided through the internet of shorelines from the State. Chalfant stated much
more detailed.
Roy asked if they can use the digital imagery to create models. Chalfant
stated it's not that sophisticated.
Motion carried unanimously.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF THREE REPLACEMENT LIGHT UTILITY VEHICLES
USING THE WASHINGTON STATE CONTRACT, FROM BUD CLARY
CHEVROLET FOR A TOTAL PURCHASE PRICE OF $65,141.14 (AB2004-
095)
Nelson moved to recommend approval to the full Council. The vehicles are
old, but have low mileage. Newer vehicles can last for more miles. He asked if
they've evaluated that before trading it in. He asked if they are using the same
policies they had 20 years ago.
Mary Green, Equipment Rental and Revolve (ER &R) Division Manager, stated
she used to replace the vehicles at 80,000 miles. Now she replaces them at
100,000 to 125,000. When she replaces a vehicles, they can usually add 10,000
more miles to the new vehicles. She uses the 80,000 mile benchmark to see if the
vehicle is any trouble. She uses the 100,000 to 125,000 mile benchmark to
actually replace the vehicle. She has raised the mileage a few years ago. Across
the state, she looks at getting the best return for money at auction, which is right
around 100,000 miles. She also looks at service records in addition to the mileage.
Crawford asked if anyone is commuting in these vehicles or using them for
personal use. Green stated it's up to the department head and Executive to
determine whether they can be used as commuting vehicles. She's only the renting
agent. One of the vehicles used in the Emergency Management Division by Division
Manager Neil Clement may be a commuting vehicle. The two vehicles being used
Finance and Administrative Services Committee, 2/10/2004, Page 6
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
for 25,000 miles per year may not be commuting vehicles. They are inspector
vehicles.
Motion carried unanimously.
8. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF FOUR GAS /ELECTRIC HYBRID SEDANS USING THE
WASHINGTON STATE CONTRACT, FROM BUD CLARY OF YAKIMA FOR
A TOTAL PURCHASE PRICE OF $85,681.60 (AB2004 -096)
Nelson moved to recommend approval to the full Council.
Crawford asked if these cars cost more.
Dewey Desler, Deputy Administrator, stated they do cost a little more. The
County has a couple of them now. The administration wants to try out these
vehicles. So much of the mileage put on the cars is done around the urban areas.
There are a lot of gas savings that can occur with these vehicles. Staff has been
trained on how to properly maintain the vehicles.
Roy stated she appreciated the administration taking the initiative to do this.
Crawford stated he doesn't want to spend money on a problem that doesn't
exist. Desler stated this is a priority for the Executive. Staff is looking at the data.
They're going to test them out.
Motion carried unanimously.
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND RE
SOURCES, TO DESIGN AND IMPLEMENT A TECHNICAL ASSISTANCE
PROGRAM FOCUSING ON WASTE REDUCTION AND RECYCLING FOR
WHATCOM COUNTY BUSINESSES, IN THE AMOUNT OF $35,000
(AB2004 -089)
(Clerk's Note: Discussion continued from above.)
Jeff Monsen, Public Works Director, stated the Solid Waste Division budget is
put together by the Solid Waste Advisory Committee before going to the Council.
For the last two or three years, the County has been out of this program area. The
Solid Waste Advisory Committee made a recommendation that the program be
reinstituted. The discussion with the committee was that $35,000 was probably
enough, but it included $50,000 to allow some leeway. Their instructions were to
not spend that full amount if they didn't have to. When the County sent out the
RFP, respondents were aware of the $50,000 limit. He was concerned with how
they could deliver a good return for the dollars spent. RESources had a proposal
that was more flexible than the other respondent. They were awarded the
Finance and Administrative Services Committee, 2/10/2004, Page 7
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
contract, and asked to put together a contract for $35,000 with the idea that if they
are getting a good return on the investment by mid -year, they will approve more
money.
Roy asked if they can tell what was in the $50,000 proposal that is no longer
in the $35,000 proposal.
Nelson stated the services eliminated are to 20 businesses and the
community outreach.
(Clerk's Note: End of tape one, side A.)
OTHER BUSINESS
There was no other business.
ADJOURN
The meeting adjourned at 12:17 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
Dana Brown - Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Sam Crawford, Committee Chair
Finance and Administrative Services Committee, 2/10/2004, Page 8