HomeMy WebLinkAboutFinance October 26 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
October 26, 2004
Committee Chair Sam Crawford called the meeting to order at 12:00 p.m. in
the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present:
Sharon Roy
Also Present:
Barbara Brenner
Laurie Caskey- Schreiber
Seth Fleetwood
Absent:
Dan McShane
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AMENDING THE 2004 WHATCOM COUNTY BUDGET,
THIRTEENTH REQUEST (AB2004 -356)
Dewey Desler, Deputy Administrator, read the requests.
Crawford asked if this is the time to make the decision to purchase the
Anderson property. Desler stated this item appropriates funding. Purchase
approval will come before the Council at the next meeting.
Crawford stated the Council needs to formally make a decision to purchase
the property before approving funding. Desler stated there are timing issues,
including an interlocal agreement with the City of Bellingham. Approval is a two
step process. First, appropriate money from Conservation Futures fund, then seek
the legal approval to purchase the property.
Crawford stated the process seems backwards. Desler stated the Council
already gave the administration the go ahead with the project.
Crawford stated the Council must make sure the public has a sense of due
process.
Desler stated the Council could delay this item, and administration will attach
it to a supplemental budget request at the next Council meeting.
Crawford stated it's a good project. The public should understand that the
Council is following due process. Desler stated this is like any other contract. The
administration will seek the money for a contract, then bring the contract forward.
Finance and Administrative Services Committee, 10/26/2004, 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 the County doesn't have to go through with a contract just
because money is budgeted for the item. Desler stated that's correct.
Rand Jack, Whatcom Land Trust, stated there is a purchase and sale
agreement and closing date of November 5. There isn't another Council meeting
between now and then. The Council has to approve the project and make the
appropriation at this meeting. The City approved its part last night.
Crawford asked for an update on an adjoining property. Jack stated he
talked to the adjoining property owners who are interested in the proposal he's put
together, which will remain a separate process. The timing of this is important
because of the status of the sellers. It would be risky not to hold to the closing
date.
Roy stated she thought that the Council did give formal approval for the
project.
Crawford stated the public would be given due process when the contract
comes before the Council.
Desler stated he would check to see when the approval is scheduled before
the Council. The Council may need to approve a resolution authorizing the
Executive to sign the contract.
Crawford stated the Council must give the public an opportunity to comment
on the potential purchase. Jack stated he agrees. The problem is the closing date.
Crawford asked if the Sheriff's Office will develop a strategic and tactical
procedure rather than having to contract with the City of Bellingham in the future
for SWAT team services. Desler stated the City said it is going to start billing the
County when the SWAT team is called out. The Sheriff wants to develop his own
team over the next two years.
Brenner asked if $90,000 is from federal funding. Desler stated a grant
provides for reimbursement based on a certain number of hours. The grant is
already in the budget. The grant is federal money.
Marvette Gwinner, Accountant, stated the grant is from Transportation
Safety Administration (TSA).
Roy moved to recommend approval to the full Council.
Crawford asked if there is added cost to the County based on how employee
comp time is calculated. Desler stated there will be issues related to expanding the
patrol out to the airport. The administration is discussing it.
Motion carried unanimously.
Finance and Administrative Services Committee, 10/26/2004, 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.
2. ECONOMIC DEVELOPMENT INVESTMENT PROGRAM FUNDING
APPLICATIONS AND RECOMMENDATION OF THE EDI BOARD
(AB2004 -361)
Dewey Desler, Deputy Administrator, stated this is the next round of
applications, which are in the Council's packet. The Economic Development
Investment (EDI) Board recommends supporting the application from the City of
Bellingham for $214,000 and the application from Whatcom County.
Mike Finger, Farmer's Market and Depot Market Planning Committee, stated
the farmer's market is likely to be the main tenant of the depot market. Support
the EDI Board decision to support the grant. The farmer's market has terrific
economic development potential and reality. This year's market sales are projected
to eclipse $700,000 just for the Saturday market. The market brings in over $1
million to downtown Bellingham. Over 260 businesses have been members. The
market is an incubator for small businesses. People are using the market to
develop business ideas and try them out on the public. The depot market square
will allow the farmer's market to expand the things it's done well all along. They
can expand the farmer's market season and handle bad weather better. Olympia
created a permanent market, and it's sales have expanded greatly. The market will
connect rural and urban communities. The market will also provide opportunity for
local agriculture and small businesses to meet the customer directly to develop
products. Please approve funding for the project.
Brian Griffin, Depot Market Square Committee, asked the County to help
fund the market venue. The depot market will become a community icon,
economic generator, meeting place, and tourist attraction. This project will create
opportunities for more than the farmer's market. The financial backers represent a
true partnership of interests, including the City of Bellingham, State of Washington,
Market Association, and many individuals. The depot market square is a volunteer
group of citizens that met its $550,000 commitment. It purchased the old Skagit
River bridge to use as structural steel. They also solicited and received 547
donations totaling $177,600. However, there is still a $214,000 gap. He asked
that the County to become the fifth member of the partnership by approving the
EDI Board's recommendation. The project is widely supported in the community
and by agricultural groups, including the County's agricultural committee, Food Co-
Op, and Agricultural Preservation Committee. Approval of this grant is the final
piece in the funding. It presents a substantial development opportunity to the
County.
Crawford asked if the $550,000 commitment is changed because they
obtained lower cost materials. Griffin stated the architect estimated that the
structural steel would cost $430,000. They purchased the bridge for $175,000,
which will provide all the steel needed. They have to raise $125,000 to pay for the
bridge. They have an arrangement to pay for the bridge over a year, interest free.
Finance and Administrative Services Committee, 10/26/2004, 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.
Crawford asked if the $214,000 is separate from the $550,000. Griffin
stated it is.
Crawford asked who owns the depot market venue. Griffin stated the City of
Bellingham owns the venue.
Crawford asked about operations and maintenance. Griffin stated operations
and maintenance would be an ongoing City obligation.
Desler stated the City is prepared to assign revenue from its parking fund to
pay for maintenance and operations.
Griffin stated the City would rent the facility, including to the farmer's
market. The structure will also generate revenue from parking under the facility.
Caskey- Schreiber stated she is in favor of the project because of its
connection between rural and urban communities. Citizens of the urban areas will
be able to fully appreciate the agricultural community in the county.
Fleetwood asked the completion date. Griffin stated he hopes to bid out in
January. The project should be done by early summer of 2005.
Fleetwood asked if the funds are from the Public Utility Improvement Fund,
and if the EDI portion constitutes one part of the Public Utility Improvement Fund.
Desler stated it does. The amount is about 60 percent, divided approximately 40
percent for loan, 20 percent for grant, and 40 percent for County public facilities.
The fund brings in about $2 million per year currently.
Roy moved to recommend that the full Council authorize the County
Executive to sign an interlocal agreement with the City of Bellingham for the
implementation of the grant award to the Depot Market Square. She is in favor of
this because of the connection between the rural and urban areas in the county.
The opportunity for incubation of local businesses is worth every penny.
Crawford stated he would support the motion. The variety of funding
sources is a benefit.
Motion carried unanimously.
Desler stated the second EDI Board recommendation is for a grant to the
developer of a light industrial park development in the northern Ferndale urban
growth area (UGA). Staff has been working on this development to help construct
a road to divert traffic onto a different road.
Hal Hart, Planning and Development Services Director, stated he is working
with Klaus Klix, the County Engineering Division, and County legal counsel on this
project. A small segment of road is necessary to provide access to the industrial
Finance and Administrative Services Committee, 10/26/2004, 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.
area. The cost incurred by the County is $170,000. Mr. Klix has done engineering
for that road segment already. Rerouting the traffic will improve access to the
industrial area, consistent with GMA. The road segment will also address safety
concerns at Grandview and Vista roads and will support job creation, consistent
with EDI program goals and objectives. This grant allows a light industrial park to
go forward and provide up to 200 jobs. The State Department of Commuinty,
Trade, and Economic Development says this is one of the best projects they've
seen this year.
Caskey- Schreiber asked if the annexation of this area could be conditioned
on reimbursement from the City of Ferndale for this investment. Hart stated legal
counsel would address that issue.
Roy asked the location of the Ferndale UGA boundary. Hart indicated the
location on a map. The site is near the headwaters of California Creek. There are
wetlands. Mr. Klix has met every condition the County has required.
Dan Gibson, Senior Civil Deputy Prosecutor, stated the sales and use tax
fund is not for the benefit of the County general fund. The fund is for the benefit of
development of distressed areas. It is not an opportunity for the County to make
money. The question to consider is about who is being reimbursed.
Caskey- Schreiber asked if the County can get reimbursement from the City
of Ferndale if funded from the general fund. She likes the project. Gibson stated
from a property tax standpoint, the County would continue to collect property taxes
when the area is annexed. However, when annexed, the County road fund would
no longer receive a tax benefit. When a property is annexed into a city, the
property continues to pay property tax from which the County continues to benefit.
However, the County no longer collects taxes for the road fund.
(Clerk's Note: End of tape one, side A.)
Gibson continued to state that road funds are used when the County
negotiates with the City for reimbursement.
Fleetwood stated the question is whether the County can legally be
reimbursed. Gibson stated constitutionally, one fund cannot benefit another. The
question to consider is which fund benefits. There is no problem with one fund
benefiting itself. In terms of negotiations with cities for road improvements, it is
done in light of the road fund revenue stream. They are not talking about road
fund expenditure or general fund expenditure, but sales and use tax funds for
distressed areas. In that case, application of funds doesn't make a difference.
Brenner stated Mr. Klix has put a lot of his own resources into this project
already. Creating 200 good - paying jobs is appealing.
Finance and Administrative Services Committee, 10/26/2004, 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.
Joe Rutan, County Road Engineer, stated he asked for the ability to close
that section of Delta Line Road, which the Council approved. The County maintains
the underlying right -of -way.
Desler stated County administration and Mr. Klix will have an agreement.
The County will acquire right -of -way if Mr. Klix develops the road to certain
standards.
Caskey- Schreiber asked if this is similar to a latecomer's fee, only
backwards. Gibson stated it's more like road development within a subdivision.
Someone comes to the County, brings a proposal for developing roads within the
boundaries of the development, and the County assumes control of the roads.
Caskey- Schreiber asked if the County could do the work for a lower cost.
Gibson stated it could not.
Klaus Klix, project proponent, stated a lot of industrial jobs have left the
county and have not been replaced. Industry is important for a diversified
economy. It's important to do something different. They can carry on industry in
this county in a responsible way that protects the environment and also makes
money. Protecting the environment enhances the value of the property and
businesses that locate there. There is a better business climate for the whole
county. This is the best solution for the long -term. This project also opens up
industrial land already zoned light impact industrial.
Fleetwood asked the reason for opposition to the project from
Councilmember McShane and Mr. Louws.
Caskey - Schreiber stated Councilmember McShane feels that Mr. Klix will
benefit financially, and the tenants should carry the cost. However, this is a cost of
economic development.
Klix stated there's no guarantee that he will make money on this. Given the
investment, he hopes to expect some profit.
Brenner stated it shouldn't matter to the Council who may or may not make
a profit. The Council shouldn't base its decisions on who profits. It would bring the
Council to a stand -still on all kinds of things. She hopes Mr. Klix makes a profit.
She's concerned that people won't come to the County with these kinds of ideas if
they won't make a profit, and the good - paying job market won't expand.
Roy moved to recommend to the full Council to authorize the County
Executive to enter into a Developer Agreement process for the Delta Line Road
project in accordance with Revised Code of Washington (RCW) 36.70B.170.
Motion carried unanimously.
Finance and Administrative Services Committee, 10/26/2004, 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.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND
NORTHWEST HYDRAULIC CONSULTANTS FOR THE DEVELOPMENT OF
A HYDRAULIC MODEL OF THE SOUTH FORK NOOKSACK RIVER FROM
SAXON TO THE CONFLUENCE WITH THE NORTH AND MIDDLE FORKS
AND FOR EVALUATION OF ALTERNATIVES FOR THE POTTER ROAD
BRIDGE REPLACEMENT PROJECT, IN THE AMOUNT OF $200,000
(AB2004 -362)
Paula Cooper, River and Flood Division Manager, stated this is a follow up
regarding projects at the south fork of the Nooksack River. The advisory
committee approves of the study and this contract.
Roy moved to recommend approval to the full Council, but she's not sure
about the project. This project has created a lot of community concern. Cooper
stated there have been concerns from the community, which is why the County
chose this path. Staff was also concerned about hydraulic analysis that had been
done in the initial design. The staff's concerns and the community outcry resulted
on postponing the project for one year. They still hope to build next year. This will
help make sure that the hydraulic analysis was adequate to address concerns.
Ideally, this project will be designed so it doesn't have adverse impacts on flood
levels or channel migration. The model will help the Lummi Nation and Nooksack
Tribe evaluate their project.
Roy asked why the tribes aren't paying the cost. Cooper stated they are
paying $10,000 for the model development costs. It's a $200,000 contract. Of
that, $30,000 is for contingencies, $40,000 is for the County's Potter Road analysis,
and $130,000 is for the model development.
Roy stated it seems like a lot of money to build a model in reaction to
someone else's project. Cooper stated it does. One of the projects is the County's.
They've needed this model in the past to grab opportunities that passed by the
County. This has been on her work plan for five years, but she's never gotten to it.
Crawford asked for an update on the amount collected by the flood tax.
Cooper stated she thinks the amount is about $2.5 million.
Crawford stated this amount represents about seven or eight percent of the
annual revenue received from flood fees.
Caskey- Schreiber stated she liked that they will develop up to three
alternative bridge roadway concepts. The Council needs the science to support its
decisions to make sure they are taking the best course of action for their significant
investments.
Finance and Administrative Services Committee, 10/26/2004, 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.
Roy stated this is an appropriate use of flood money.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT BETWEEN WHATCOM COUNTY
AND BECKWITH CONSULTING GROUP TO REVIEW AND UPDATE THE
COMPREHENSIVE PARKS AND RECREATION OPEN SPACE PLAN, IN
THE AMOUNT OF $155,416 (AB2004 -363)
Mike McFarlane, Parks and Recreation Department Director, stated they
interviewed four firms. This group is most in tune with the project. It recently
completed the City of Bellingham Comprehensive Parks and Open Space Plan. That
is a good fit with urban growth areas to determine how those connections will be
made between the city and county areas.
This plan will pull together a number of things. He is also asking the
contractor for a business plan to determine future funding. This will be a very
public process that includes open houses, surveys, retreats, and meetings. He
hopes to ask for approval of the plan in about one year. The first meeting is
scheduled for November 17, 2004.
Roy moved to recommend approval to the full Council.
Fleetwood asked if the plan would include recommendations on future
acquisitions or just development. McFarlane stated it would include acquisitions.
Caskey- Schreiber stated this is a good idea. An issue before the Council is
whether potential land acquisitions are good investments. This will be a tool to
come up with future parkland plans. They need to figure out how to serve areas of
the county that are growing, but don't have access to parks.
Brenner stated she agreed with Councilmember Caskey- Schreiber. The
County is required to do the plan anyway.
Roy stated the Planning Department has a staff person who works on open
space, transfers of development rights, and purchases of development rights. She
asked if this process would link with that person. McFarlane stated Mr. Holbrook
will coordinate with the process.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID
#04 -70 TO THE LOWEST BIDDER, EBENAL GENERAL, FOR THE ONE -
STOP PERMIT CENTER AND REMODEL AT THE NORTHWEST ANNEX,
IN THE AMOUNT OF $226,138 (AB2004 -364)
Finance and Administrative Services Committee, 10/26/2004, Page 8
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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.
Roy moved to recommend approval to the full Council.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID
#04 -71 TO THE LOWEST BIDDER, MILLER'S PAINTING, FOR
MISCELLANEOUS PAINTING WITHIN COUNTY BUILDINGS, IN THE
AMOUNT NOT TO EXCEED $60,000 (AB2004 -365)
Crawford asked what they are painting.
Dewey Desler, Deputy Administrator, stated staff will be painting interior
walls.
Mike Russell, Finance Division Supervisor, stated the County does $60,000 of
interior painting per year. They will do one and a half floors. The County will be
painting for the next five years.
Crawford asked how they insure the quality of the product. Russell stated
the County tells the bidders the specific paint brand. If a bidder offers an
alternative brand, the alternative will have to meet the same qualifications.
Roy moved to recommend approval to the full Council.
Motion carried unanimously.
OTHER BUSINESS
Purchase of the Anderson Property (AB2004 -378)
Dewey Desler, Deputy Administrator, stated the documentation in the
Council packet should have asked the Council to authorize the Executive to
complete the purchase of the property. He submitted paperwork (on file). He
asked the committee to approve this authorization. The conservation easement is
already in the Council's packet.
Crawford stated the committee already moved to recommend to the full
Council to approve funding of the purchase.
Roy moved to authorize the Executive to complete the Anderson Property
purchase project in an amount of $382,500.
Crawford asked if Mr. Gibson is comfortable with this motion, from a legal
perspective.
Finance and Administrative Services Committee, 10/26/2004, Page 9
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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.
Dan Gibson, Senior Civil Deputy Prosecutor, stated he is.
Motion carried unanimously.
ADJOURN
The meeting adjourned at 1:18 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, 10/26/2004, Page 10