HomeMy WebLinkAboutFinance September 14 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
September 14, 2004
Committee Chair Sam Crawford called the meeting to order at 11:00 a.m. in
the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
Dan McShane None
Sharon Roy
Also Present:
Barbara Brenner
Seth Fleetwood
SPECIAL PRESENTATION
1. PRESENTATION OF THE BELLINGHAM - WHATCOM PUBLIC FACILITIES
DISTRICT QUARTERLY REPORT (AB2004 -120)
Patricia Decker, Public Facilities District Manager, submitted info (on file).
Therese Holm, City of Bellingham Finance Director, stated the City, County,
and Public Facilities District interlocal agreement terms specifies that the City
provides this quarterly update to the County Council for the district. Revenues total
$2.4 million as of June 30. A key revenue item is the sales tax rebate, which
finances the cultural district projects. The sales tax rebate is 57 percent of the
annual budget.
The City provided a short -term interfund loan for project financing. They
have borrowed $5 million to date. The City will issue a general obligation bond in
the next few months to repay the City's interfund load and to provide capital for the
next project. That will be approximately $9.5 million.
The district spent $2.1 million through June 30. Most was for capital projects
and the interfund loan debt repayment, which will occur the same time they issue
bonds. The Public Facilities Board has authorized the staff to proceed with the bond
financing, to be completed by mid - November.
David Warren, Public Facilities District (PFD) Board Member, stated the
district has acquired property and made changes to the Mt. Baker Theater. They
opened the studio theater this last Friday. The district hired a design competition
advisor for the proposed art gallery in the children's museum.
Finance and Administrative Services Committee, 9/14/2004, 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 asked if the museum expansion was a PFD project. Warren stated
it is. It's a public /private partnership. It has nothing to do with the City's general
fund.
They are moving into the streetscape design, which is a triangle from the
city hall to the museum to the Mt. Baker theater. The board will also consider the
work done by the Waterfront Futures Group, and whether they can move further
toward the waterfront. The cultural area downtown will become very exciting.
Crawford asked if there will be bonds issued during the beginning of the
process for much of the capital expenditures, to get the capital expenses done the
first few years, and use future revenue to pay the bonds. Holm stated that when
they initially projected the revenues from the sales tax rebate, they conservatively
projected about $15 million. They've had a couple of real strong years in the local
economy. The rebate has been exceptionally high. They have not adjusted their
projections, because 25 years is a long time. They are maintaining a conservative
projection of $15 million to be used to finance a bond issue for these projects. In
the next year or so, they will know more about their ability to do fundraising.
Crawford asked about the Centennial Project. Holm stated that project
included a number of elements, some of which may be financed by the PFD.
Others, such as the library, would be a City project. It was important to include the
project in the overall vision because it is the same geographic area. The PFD has
defined certain elements that will be included. The phase one completion of the Mt.
Baker Theater was financed through PFD revenues and not City of Bellingham
general funds.
Crawford asked if they are making good progress toward the Centennial
Project's vision. Warren stated they are. They are taking one project at a time,
and working conservatively to meet their benchmarks. The streetscape design has
to be more than about trees and pavers. They have to develop places that will spur
economic activity and draw people to the area. They are optimistic that things are
going well.
McShane thanked the all- volunteer committee.
Decker stated they have been pleased with the board members so far. The
building at 216 Grand Avenue, which will be a new museum facility, will provide a
great connection between the existing museum and the theater. That will be the
start of the activity that will transform Flora Street. The new museum would be on
the corner of Flora and Grand Streets, and will connect museum and theater.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO THE
WHATCOM CHIEF FERRY INSURANCE RENEWAL FOR POLICY YEAR
Finance and Administrative Services Committee, 9/14/2004, 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.
9/30/04 THROUGH 9/30/05 IN THE AMOUNT OF $35,305 (AB2004-
314)
Dewey Desler, Deputy Administrator, stated he recommends the premium of
$31,725, which doesn't include terrorism coverage.
Crawford asked if the County purchased terrorism insurance last year.
Desler stated they did not.
Crawford asked how much the premium has increased from last year. Desler
stated the amount is about $300 more than last year.
Roy moved to recommend approval to the full Council, without the terrorist
coverage.
Desler stated the administration recommends insurance without the terrorist
coverage, in an amount of $31,725.
Roy stated that is the amount she has moved for approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND HOME
PORT LEARNING CENTER TO PROVIDE ALTERNATIVE EDUCATION TO
YOUTH IN THE JUVENILE JUSTICE SYSTEM, IN THE AMOUNT OF
$66,000 (AB2004 -307)
Crawford asked from where this is funded.
Dewey Desler, Deputy Administrator, stated the funds are from a State
program to provide services to youth in the community.
McShane moved to recommend approval to the full Council.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
"MULTI- JURISDICTIONAL NARCOTICS TASK FORCE PROGRAM
CONTRACT" BETWEEN WHATCOM COUNTY SHERIFF'S OFFICE AND
THE WASHINGTON STATE DEPARTMENT OF COMMUNITY, TRADE AND
ECONOMIC DEVELOPMENT FOR THE CONTINUING NARCOTICS
EFFORTS AND PROSECUTION ASSISTANCE OF THE NORTHWEST
REGIONAL DRUG TASK FORCE, IN THE AMOUNT OF $118,056
(AB2004 -308)
Roy moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 9/14/2004, 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.
McShane stated the amount is for $106,000 to support two detectives.
Dewey Desler, Deputy Administrator, stated the total budget for the program
is approximately $900,000. Of that, there is a County match of approximately
$806,000. The federal grant is for $118,056.
McShane stated the grant provides enough money for the salaries. Desler
stated there are salaries of others that the County and City pay into.
McShane stated there is a cost of $488,812 that goes to salaries. The
benefits are additional. They are two detectives and partly funded prosecutor. He
asked if this would create any new positions. Desler stated it does not. The staff
level is status quo. The administration would like to see the County's formal
obligation be reduced. It creates accounting complication they would like to avoid.
If they spend that much money in the future, they would report it, but it doesn't
become part of the formal contract. If there is a ten or 20 percent match, then
that match would be part of the contract, but not report the entire cost of the
program. When they report the entire cost, the County has to document a lot of
information to State and federal auditors that they would like to not have to do.
That doesn't mean the program would change. It's a change in how they report the
budget to the federal grantor. They will continue with the size of the commitment
to the program
Crawford asked if the $805,000 can come from other funds, or if it has to be
general fund dollars. Desler stated the County has to show an expenditure. The
grant wants to see a local or State match to the federal grant. The match will most
likely be general fund money.
McShane stated he has an issue with the question of how successful the war
on drugs has been. This is very expensive. He is concerned that the County would
get locked into having to spend this money in a particular area, where that might
not be where the County wants to spend it. It takes away the County's flexibility if
the meth problem goes away or another bigger issue comes up. Over time, the
amount of money contributed by federal programs tends to drop.
Carey James, Undersheriff, stated the methamphetamine problem won't go
away. Snohomish County pushed their meth problem into Whatcom County.
Methamphetamine produced in Whatcom County affects the county as a whole, as
no other drug has done, because of the residue left over from the making of this
drug. The Sheriff's Office has been trying to get the word out about the effects.
The community can be affected by the people who make this stuff, who may dump
residue into the water table. This is like no other problem they've dealt with.
McShane stated he agrees that they should deal with this problem. This
program locks the County into dealing with this issue only. The amount of federal
money over the years has shrunk to $118,000. As a national policy, this is
Finance and Administrative Services Committee, 9/14/2004, 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.
becoming a problem. He recognizes that meth is a serious problem locally that
needs resources. However, this is a huge commitment to get only $118,000.
James stated they may not have a choice. The problem is here. Some of the
problem is that in the past, they didn't have the foresight to see what would
happen. Now they have to deal with it. The drug problems won't go away. If they
want to maintain the quality of life in Whatcom County, they have to address the
problem. Now, they are addressing problems they should have addressed in the
past.
McShane stated nearly one million dollars is a tremendous commitment to
get just $118,000. That grant money is going away, and they are locked into this
one program. He's committed to dealing with methamphetamine, but locking the
money takes away flexibility. James stated they are trying to help offset the
expenses.
Crawford asked if the Sheriff's Office will still spend $800,000 on the drug
problem if it doesn't get the $118,000. James stated it will.
Crawford stated cutting funds for drug enforcement isn't going to happen.
James stated they understand the shortcomings of the federal government to help
offset these expenses. The County has to be creative to find funds. Criminal
justice and law and justice don't have the ability to collect a lot of revenue. They
have to be creative to get money to help offset expenses.
Arthur Edge, Sergeant, stated he agrees with the shrinking federal support.
It comes down to how much the County wants to spend on drug enforcement. The
County is going to have to bear the burden at some point. A lot of this money is
now going to other groups for prevention and treatment.
Roy stated society has failed in its war against drugs. Focus on treatment
and intervention.
Crawford stated they do look at treatment and intervention.
Roy stated they don't focus on it equally.
McShane asked the level of the offense if someone cooks methamphetamine.
Edge stated the offense level is level one. They focus on the distribution of the
drugs. They don't have time to deal with the person on the street using the drug.
Distributors of other drugs such as cocaine rarely use their drug. Treatment for
those people is not an issue.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT RENEWAL BETWEEN WHATCOM COUNTY AND MICHAEL
Finance and Administrative Services Committee, 9/14/2004, 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.
BOBBINK FOR HEARING EXAMINER SERVICES, EXTENDING THE
CONTRACT TO DECEMBER 31, 2004 (AB2004 -309)
Crawford asked if this is at the same rate.
Dewey Desler, Deputy Administrator, stated that is his understanding.
McShane moved to recommend approval to the full Council.
Motion carried unanimously.
S. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
AGREEMENT FOR CONSULTING SERVICES FOR THE SELF - INSURED
MEDICAL PROGRAM BETWEEN WHATCOM COUNTY AND KIBBLE &
PRENTICE FOR THE PERIOD SEPTEMBER 15, 2004 THROUGH
DECEMBER 31, 2006, IN AN AMOUNT NOT TO EXCEED $38,000 PER
YEAR (AB2004 -310)
Dewey Desler, Deputy Administrator, stated the County operates a self -
insured program. They need significant help in things like pricing, projection, and
other analysis about how this plan is operational. They may make adjustments to
the plan to manage costs. They need to use the help of a firm like this that has
helped other self- insured operations. The contractor will consult with the County as
necessary. At the end of each year, the administration will analyze and make
projections for each year. The County is responsible for the pricing and benefits of
the plan.
Crawford stated they are spending $38,000. He asked if they will get a
payback in cost savings without the contractor recommending putting the cost
savings on the backs of the employees.
(Clerk's Note: End of tape one, side A.)
Karen Goens, Human Resources Manager, stated the County has set a ten
percent cap on the plan. They need to know the difference between the cost of the
co -pay plan and the cap plan. If their costs exceed ten percent, they need to know
how to structure a plan that will protect the employees' benefits while providing full
family coverage. They need expertise on specific questions. Most self- insurance
plans have a broker that charges a percentage of the premiums. However, the
administration wants money going into benefits, not administration.
Desler stated the County is a small self- insured provider. The administration
wants to retain the independence of being self- insured, which provides more
flexibility and a better service at less cost. The County needs this expertise to
maintain high quality benefits at the lowest possible cost, and still be financially
viable. The alternative is walking away from being self insured and joining a much
larger plan. They are trying not to do that.
Finance and Administrative Services Committee, 9/14/2004, 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.
Caskey- Schreiber asked about the bid process. Goens stated the
administration went through the bid process. She described the firm's experience.
McShane moved to recommend approval to the full Council.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY, THE CITY
OF BELLINGHAM AND THE LAKE WHATCOM WATER AND SEWER
DISTRICT FOR MONTHLY MONITORING OF TRIBUTARIES IN THE
LAKE WHATCOM WATERSHED, IN THE AMOUNT OF $27,994.50
(AB2004 -311)
Bruce Roll, Water Resources Division Manager, stated that to maximize
resources, they worked up an agreement to collect water quality data in the
tributaries around Lake Whatcom to understand where the pollutant loads are
coming from. All the entities will collect similar types of data. The data collection
will be done mostly by Western Washington.
Crawford asked if this is new data they will receive. Roll stated there is an
ongoing effort through the total maximum daily load (TMDL) study. This is a new
body of work with the City of Bellingham and the State Department of Ecology
(DOE).
Sue Blake, Senior Planner, stated it's an extension of the work they started
to help with the modeling work from DOE and through the water resource inventory
area (WRIA) 1 project. Monthly sampling was going to be reduced unless they did
something about it.
Crawford stated this is in the 2004 budget.
Roy moved to recommend approval to the full Council.
Motion carried unanimously.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
COOPERATIVE AGREEMENT BETWEEN WHATCOM COUNTY AND
USDA /NATURAL RESOURCE CONSERVATION SERVICE FOR THE
RECEIPT OF FUNDS FROM THE FEDERAL BUDGET FOR THE PURCHASE
OF DEVELOPMENT RIGHTS PROGRAM (AB2004 -312)
Kraig Olason, Senior Planner, stated this is the paperwork for the farmland
purchase of development rights (PDR) program.
Roy moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 9/14/2004, 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.
Motion carried unanimously.
S. REQUEST APPROVAL TO DEVIATE FROM THE FLOOD CONTROL
MAINTENANCE PROGRAM ESTABLISHED COST -SHARE FORMULAS
(80/20 OR 85/15 IF SIGNIFICANT FISH HABITAT COMPONENT) AND
USE 100% FLOOD CONTROL ZONE DISTRICT FUNDS FOR REPAIRS TO
THE HOVANDER PARK LEVEE (AB2004 -313)
Paula Cooper, River and Flood Division Manager, stated there is damage on
the left bank of Nooksack, upstream of Slater Road. If the levee remains damaged,
it's likely Slater Road will be closed longer and more frequently.
Crawford asked if Slater Road be under water all the time if there were no
levee. Cooper stated staff didn't model that.
Crawford asked why staff recommends funding 100 percent. Cooper stated
the project is with the County Parks Department. The Parks Department will
provide labor to get rid of vegetation, which will total about 20 percent of the cost,
but they can't count it as part of a match.
McShane moved to recommend approval to the full Council. It's a small
amount. The Parks Department is going to do labor.
Crawford asked the amount of the flood funds. Cooper stated this project is
well within the budget.
Motion carried unanimously.
9. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
AWARD OF BID #04 -67 FOR A THREE -YEAR CONTRACT WITH
BAYSIDE SERVICES FOR STREET SWEEPING SERVICES, IN THE
AMOUNT OF $569,152.08 (AB2004 -315)
Bruce Roll, Water Resources Division Manager, stated the Council previously
discussed street sweeping in sensitive watersheds. There was a bid proposal. He
described the contract. The street sweeping program is a combination of
operations and maintenance (O &M) by the County and work by private contractors.
They want to go with a private firm initially to understand the actual work that
would be involved.
McShane stated he thought the County just bought a street sweeper, and
the reverse argument was made, which was that the County would have a better
sense of what to contract for if it bought a sweeper. Roll stated they are doing
both. Just the County or a private contractor doesn't have the capacity to do what
they want to do.
Finance and Administrative Services Committee, 9/14/2004, 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 asked why they received only one bid. Roll stated there is not much
support for this in the private sector.
Roy asked if this is a reasonable bid.
Brad Bennett, Finance Division Manager, stated the first bid the County
received was rejected by the Engineering Division because it was too high. This is
the second bid process they've gone through.
Roll stated it is expensive to use the equipment and maintain it.
Crawford asked the schedule. Roll stated they would have to determine
where and how often to go to certain areas. They want to do the entire watershed
at least once per year.
Crawford stated the letter said there was a path of oil left by the trucks along
the Lake Whatcom Boulevard while the County repaired the Austin Street bridge.
Roll stated he'd have to look into it.
Roy asked if the County would receive data on the work that should be done.
Roll stated the contractor will have to show how many pounds of debris they're
removing and during different times of the year and the frequency they can do the
work. Part of the contract will look at creating the appropriate program for the
County. In the absence of doing serious stormwater retrofitting, they have to look
at these types of alternative solutions for removing roadway pollutants.
McShane moved to recommend approval to the full Council.
Motion carried unanimously.
Dewey Desler, Deputy Administrator, stated the Public Works Department
has a $32 million budget. There will be large expenditures. They key is to develop
a new business plan to protect sensitive areas around Lake Whatcom. The
Department has decided to use both a contract and in -house resources to provide
street sweeping services. They're very interested in getting data about how to best
provide those services.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated the 2005 -2006 budget will be
delivered soon. The Committee should schedule meetings with the departments
and administration.
Finance and Administrative Services Committee, 9/14/2004, 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.
ADJOURN
The meeting adjourned at 12:10 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, 9/14/2004, Page 10