HomeMy WebLinkAboutFinance February 12 20021
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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 12, 2002
The meeting was called to order at 12:10 p.m. by Committee Chair Sam
Crawford in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
Dan McShane None
Sharon Roy
Also Present:
L. Ward Nelson
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF A VARIETY OF ROAD MAINTENANCE PRODUCTS USING
THE WASHINGTON STATE CONTRACT FOR ROAD STRIPING PAINT
AND BEADS IN THE AMOUNT OF $375,000; HERBICIDES IN THE
AMOUNT OF $75,000; TIRES IN THE AMOUNT OF $50,000;
GUARDRAIL MATERIALS IN THE AMOUNT OF $50,000; AND
RUBBERIZED ASPHALT IN THE AMOUNT OF $30,000 (AB2002 -089)
McShane moved to recommend approval.
Motion carried 2 -0 with Roy out of the room.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF LIGNOSITE FROM SOLE SOURCE MEENDERINCK LLC
FOR DUST CONTROL ON COUNTY ROADS IN AN AMOUNT NOT TO
EXCEED $85,000 (AB2002 -090)
McShane asked if there has been an increase in cost since Georgia- Pacific
closed.
Mary Green, ER &R Manager, stated there has been a slight increase, but it's
not huge.
McShane moved to recommend approval.
Motion carried 2 -0 with Roy out of the room.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF THREE POLICE VEHICLES USING THE WA STATE
Finance and Administrative Services Committee, 2/12/2002, 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.
CONTRACT FROM DWAYNE LANES DODGE, IN THE TOTAL AMOUNT OF
$58,077 (AB2002 -091)
McShane moved to recommend approval.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO RENEW
PROPERTY INSURANCE (AB2002 -092)
Dewey Desler, Deputy Administrator, stated this coverage is from the Unity
Group, their broker for many decades. The County uses insurance to cover many
millions of dollars in County property. The key thing is that the cost of the coverage
has increased 32 percent this year. It amounts to almost $28,000. It represents
lowering of some of the coverages with higher deductibles. Administration is
concerned. According to the risk manager and the broker, this is the best policy
they can get in the marketplace today.
Crawford asked if the cyber risk and terrorism exclusions are new. Desler
stated they are.
Crawford asked if those exclusions are becoming typical. Desler stated Mr.
Hanson indicates that virtually all property coverages contain language excluding
terrorism. There is a broad definition of what that means. Until the federal
government steps in, governments and corporations will have to deal with these
kinds of exclusions.
Crawford asked if the County has any means other than its own financial
reserves to handle a loss due to terrorism. Desler stated the County also has
bonding capacity. Hopefully the federal government will help them. Under this
coverage, the County is exposed.
Nelson asked if the administration recommends increasing the deductible
from $25,000 to $50,000. He asked what Exhibit 2 referred to.
Barry Hanson, Unity Group, stated there are two separate policies. There is
a property policy and a boiler and machinery policy. The recommendation on the
property policy is to not make any changes to the deductible. The recommendation
for the boiler and machinery policy is to increase the deductible from $25,000 to
$50,000.
Nelson asked why the recommendation is to not change the deductible.
Hanson stated they have to weigh the value of saving $2,500 versus putting the
County at risk for $25,000. The number of years they would have to go without a
claim does not justify recommending a change.
Finance and Administrative Services Committee, 2/12/2002, 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 questioned whether The Unity Group has a history of County claims.
Hanson stated there have been very few claims. Exhibit 2 are the options for the
deductible for the property policy.
Nelson questioned whether the administration recommends staying with the
$25,000 deductible instead of raising it. He asked the County's history. Desler
stated they've had coverage issues at the Smith and Northwest building regarding
wind damage. They have to invest more money in the roof at the Smith and
Northwest building.
Nelson stated that wouldn't have anything to do with the insurance. Desler
stated it doesn't. The recommendation is consistent with where they need to go
today.
Crawford stated the County has a risk pool with other municipalities around
the state for liability insurance. He asked if there is such a thing for facilities
insurance.
Randy Watts, Chief Civil Deputy Prosecutor, stated the same pool is starting
property coverage. He hasn't looked into it. His position is that there is a benefit
to having a local broker rather than someone out of town. They are starting to put
together a property program and a program to deal with worker's compensation
issues.
Desler stated the administration looked into health insurance from the risk
pool. As yet, there is no savings to do that.
Crawford asked if there is a classification for government buildings, and if
they are less susceptible to claims or more susceptible compared to commercial
buildings. Hanson stated there is a target level from a terrorism standpoint.
Regarding claims in general, government buildings have no greater degree. The
majority of vandalism would be covered under the deductible.
Crawford questioned whether they would find, if they took a look at a risk
pool, that government buildings have a low claims rate. Hanson stated the primary
driver to the County's cost is the catastrophic loss potential, particularly with regard
to earthquakes. A risk pool for liability lends itself more than a property risk pool.
The concern is that an earthquake would take out a region. That is one of the big
issues driving the prices.
McShane moved to recommend approval.
Desler questioned whether the motion covers the premium and the
recommendations for both insurances.
McShane stated it does.
Motion carried unanimously.
Finance and Administrative Services Committee, 2/12/2002, 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.
S. RESOLUTION FOR HEARING AND NOTICE OF HEARING ON SALE OF A
PORTION OF COUNTY -OWNED PROPERTY, REQUEST NO. 01 -02
(AB2002 -093)
Bruce Mills, Assistant Director of Engineering, stated this is a two -part
process. This resolution will set the hearing for two weeks. The State Department
of Transportation (DOT) is in the process of widening Guide Meridian and wants to
purchase a right -of -way from the County. There is a 15 -foot wide piece of right -of-
way with a ditch in it. As the DOT widens the Guide Meridian, they need to
purchase a 38 -foot long strip of that land. The DOT is offering well over the
assessed value on the land. It is to covers administrative costs of $1,000. The
Public Works Department recommends that this be put forward for a hearing.
Nelson asked if there are administrative costs involved in this transaction.
Mills stated administrative cost includes a small amount of staff time to look at the
property and prepare a memo.
Nelson stated it's amiss to charge the state $1,000, which could be better -
used on the project. He asked if the $1,000 is worth this little sliver of property,
and if the County could sell it for $1. Mills stated the County could donate the
property. It would still need to go through this process.
Nelson stated the $1,000 could be put to better use, and it's all tax money
anyway.
Crawford stated the State is going to get the right -of -way one way or
another through eminent domain.
Nelson stated the widening is a service to the community that the County
should participate in as a partnership. This is not a large tract of land. It is a
sliver of land that the County will not do anything with anyway. The money could
go back to other uses in the county, but he would rather see the Guide get widened
in an expeditious and financially responsible manner.
Dewey Desler, Deputy Administrator, stated the government -to- government
relationships require a transfer of assets and resources for their true value. It is
worth $1,000 to the State, and the County can say it is worth $1,000 to the
County. The County could give it to the State, but the State won't give property to
the County. Unless there is a good public policy to implement, the County should
ask for cash to reflect the value of the assets they are transferring.
Nelson asked the value. Mills stated it was assessed at $.02 per square foot,
for 566 square feet. The total is not a lot.
Nelson stated the County could change the cost to the true value of the land.
McShane moved to recommend approval to set the hearing.
Finance and Administrative Services Committee, 2/12/2002, 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.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY PUBLIC
WORKS SOLID WASTE DIVISION AND THE CITY OF BELLINGHAM TO
OPERATE THE DISPOSAL OF TOXICS FACILITY, SATELLITE TOXIC
WASTE STATIONS AND COLLECTION SITES, AND THE LAKEWAY YARD
WASTE COLLECTION FACILITY IN THE AMOUNT OF $364,000
(AB2002 -094)
Dick Prieve, Assistant Director of Administration, stated this agreement is the
same as last year, except it costs a little more money. People are bringing more
and more materials to the site. The agreement was approved last night at the City
Council.
Nelson stated the agreement included an additional full -time equivalent (FTE)
employee. He asked what the FTE is for. Prieve stated there are two people at the
site now. They are literally so busy that they cannot complete their work.
Nelson asked if the Council just increased the FTE's for this during the budget
process. Prieve stated this is the funding for that increased FTE.
Roy moved to recommend approval to the full Council.
Motion carried unanimously.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT MODIFICATION BETWEEN WHATCOM
COUNTY HEALTH AND HUMAN SERVICES AND THE CITY OF
BELLINGHAM — DETOX SERVICES TO PROVIDE FUNDING FOR THE
ALCOHOL PROTECTIVE CUSTODY PROGRAM IN THE AMOUNT OF
$56,036 (AB2002 -095)
Andy Byrne, Human Services Manager, stated this contract with the City of
Bellingham has been in operation for years. The amendment is for another 12
months. The City provides funds to operate the alcohol protective custody
program, for which the County contracts with St. Joseph Hospital Recovery Center.
This program is the envy of other counties in the state. When someone is
inebriated and shows a potential for danger, that person needs to get into
detoxification but may not be willing to. The program allows for police authority to
put the person in custody so the person can't leave for eight hours until he or she
sobers up.
Crawford asked where the City gets its money. Byrne stated $12,000 comes
from the liquor tax. He didn't know about the rest.
McShane moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 2/12/2002, 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.
Motion carried unanimously.
8. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY HEALTH AND
HUMAN SERVICES AND THE CITY OF BELLINGHAM — DOMESTIC
VIOLENCE COMMISSION FOR SUPPORT OF THE COMMISSION
AGAINST DOMESTIC VIOLENCE IN THE AMOUNT OF $44,500
(AB2002 -096)
Crawford stated this item is really for $44,500. The agenda should be
corrected. The amounts reflected in the agreement are correct.
Terry Hinz, Assistant Director, stated item nine should be for $82,000. The
City of Bellingham funds $44,500 of that agreement, and the County funds the
remainder. The County contracts with Whatcom Crisis Services for this service in a
total amount of $82,000.
McShane moved to recommend approval for this item and the next item on
the agenda.
Nelson asked if the $7,000 increase is shared jointly. Hinz stated it is not.
Only the City is paying the increase. The agency requested a $7,000 increase each
from the City and the County. The City is paying the increase. The County is not.
Crawford asked why the County said no to the increase request of $7,000.
Dewey Desler, Deputy Administrator, stated the administration is concerned
about the amount of money the County has. Domestic violence is a significant
problem with effects on the criminal justice system. The administration is providing
no increases for anything.
Crawford asked if this was discussed at the Law and Justice Council. Desler
stated it was not.
Motion carried unanimously.
9. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
PROFESSIONAL SERVICES CONTRACT BETWEEN WHATCOM COUNTY
HEALTH AND HUMAN SERVICES AND WHATCOM CRISIS SERVICES TO
SUPPORT THE COMMISSION AGAINST DOMESTIC VIOLENCE IN THE
AMOUNT OF $82,000 (AB2002 -097)
See the above item.
10. RESOLUTION CANCELING UNCOLLECTABLE PERSONAL PROPERTY
TAXES (AB2002 -098)
Finance and Administrative Services Committee, 2/12/2002, 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.
Dewey Desler, Deputy Administrator, stated this is an annual process. The
Treasurer has determined that certain parties are not able to pay property taxes.
According to law, the County can call them uncollectable and cancel them.
McShane moved to recommend approval.
Motion carried unanimously.
11. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND RE
SOURCES FOR CONDUCTING OUTREACH SERVICES PROMOTING
WASTE REDUCTION AND RECYCLING AND PROPER HOUSEHOLD
HAZARDOUS WASTE MANAGEMENT IN THE AMOUNT OF $25,000
(AB2002 -099)
Dick Prieve, Assistant Director of Administration, stated this is self -
explanatory. The bid process had two submittals for the first time. A panel of
people interviewed the applicants, and chose this contractor. The other bid was
from Joanne Ernst.
Crawford asked what the panel looked at. Prieve stated they looked at the
presentation of what the contractor would provide for the County. There was a
unanimous decision to go with RESources.
Roy stated this was one of the more well- written proposals she's seen. She
moved to recommend approval to the full Council.
Motion carried unanimously.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated the administration is working on
introducing an ordinance tonight to create a public facilities district. The ordinance
would allow the County to collect some of the current revenue that is generated in
the sales tax that now flows into the Department of Revenue. The County would be
able to develop a regional center and related parking facilities for conventions,
conferences, special events center, or a sports facility. Part of the County's
motivation now is that they've been watching the City of Bellingham consider
developing it's own district for 15 months. The County was waiting to see if the
City would create one. The sales tax revenue the City collects would be for the
amount generated in the City. If the City didn't develop it's own district, the
County could create one on its own that would cover the entire county, including
the other cities in the county. The other cities cannot create their own because
they are too small. The law requires that a minimum of a $10 million facility would
have to be built for the city. The County has no minimum amount for a facility.
Finance and Administrative Services Committee, 2/12/2002, 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.
This legislation was created to fund Safeco Field and the new football stadium
in King County. Other counties and cities were given the ability to do something
similar. The legislature is thinking about adjusting the law so districts created
before March 15 of this year have more flexibility and latitude than those that are
created after March 15. The administration's proposal is to put a draft ordinance on
the table for review. A separate Board of Directors appointed by the County
Council would govern the district. The administration is writing in the ordinance
certain safeguards to allow the County to watch carefully and give pre - approval on
certain things that the district would do. Because it is a separate municipal
corporation, it maintains its own separate liability. The County maintains no fiscal
liability. At the end of a given period of time, assets come back to the County for
ownership. The source of money is not just from the sales tax diversion. There are
other options the district has to collect funds. The district can bond for 25 years.
For purposes of economic development, the district can create multimillion dollar
projects that would be financed with the sales tax diversion that would run over a
number of years. The administration's thinking is about how they can capture
resources to create solutions to problems in the civic center area and ideas for the
Smith and Northwest Road athletic facilities. There may be other up and coming
urban areas that can support regional centers. The administration is creating
options, but not an additional tax load on the public. The resources are already
generated and collected for and by the people of Whatcom County. If introduced,
the Council could have a hearing and review in two weeks.
Roy questioned where this tax money goes currently. Desler stated that, of
the 7.8 percent of sales tax money that is collected, 6.5 percent goes to the State
of Washington. One percent goes to the City of Bellingham. The other .3 percent
goes to the Whatcom Transit Authority. Of that 6.5 percent, a small portion would
be kept in the county for this district. It amounts to one -third of .1 percent.
Countywide, the money would total about $750,000 to $800,000 per year
currently. That includes the money for the City of Bellingham.
Crawford stated the County's municipal corporation share would be about
$350,000 annually. Desler stated that as sales increase, the revenue would
increase. Multiply that amount by 20, which is what they can bond for. That is an
idea of how much leverage could be created. The legislature intended that the
districts would create facilities that would generate income from parking,
conference facilities, or some other use. That's how the district would operate. The
financing for constructing the facility could be done with bonds.
Crawford moved to recommend approval to the full Council of introducing
this item.
Motion carried unanimously.
ADJOURN
The meeting adjourned at 12:55 p.m.
Finance and Administrative Services Committee, 2/12/2002, 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.
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, 2/12/2002, Page 9