HomeMy WebLinkAboutFinance March 26 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
March 26, 2002
The meeting was called to order at 12:00 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:
Seth Fleetwood
Laurie Caskey- Schreiber
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE A
CONTRACT BETWEEN WHATCOM COUNTY AND NORTHWEST
REGIONAL COUNCIL FOR LAW AND JUSTICE COUNCIL SUPPORT
SERVICES IN THE BUDGETED AMOUNT NOT TO EXCEED $92,720
(AB2002 -122)
Dewey Desler, Deputy Administrator, stated the Executive recommends that
the County Council support the contract at a level equal to the City of Bellingham
contribution. The contract total would change to $82,440. The Executive also
recommends that the contract be written with two objectives for the next year.
One objective is to focus on creating efficiencies in the justice system. The second
priority is to work on generating new revenues for the law and justice system.
McShane moved to recommend approval of $82,440.
Motion carried unanimously.
2. ORDINANCE AMENDING THE 2002 BUDGET, REQUEST NO. 3 (AB2002-
144)
Dewey Desler, Deputy Administrator, stated the recommendation is to
support expenditures for veterans' relief, a crime analyst position that is already in
the budget, computer and software purchases for the Sheriff's Office, and
equipment of the County's mobile command vehicle. The total expenditure is
$110,000 from grant funds or funds in the Veterans' Relief fund. There would be
no reduction to the general fund balance.
Roy moved to recommend approval to the full Council.
Finance and Administrative Services Committee, 3/26/2002, 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.
McShane asked for clarification about having further discussions on this
issue. Desler stated there are other issues to discuss with this committee related to
what is going on with Veterans' Relief. He would discuss those medium- and long-
term issues regarding the Veterans' Relief program at the end of the meeting.
There is a build up of a number of applications from needy veterans. The program
is directed to low- income veterans, their widows, and their family members. It
provides assistance with health care, housing, and utility costs. The program has
been in effect for over 100 years in the community. He hasn't reviewed the
applications. The veterans' relief organization makes the recommendations. They
make sure the applications meet the criteria. Approximately $140,000 is in the
fund balance. This request is for a one -time appropriation.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID
NUMBER 02 -16 FOR THE ANNUAL SUPPLY OF ASPHALTIC
EMULSIONS /ROAD OIL TO THE LOWEST RESPONSIVE BIDDER,
CHEVRON PRODUCTS CO., IN THE AMOUNT OF $500,000 (AB2002-
152)
McShane moved to recommend approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID
NUMBER 02 -20 FOR FIVE REPLACEMENT PICKUP TRUCKS TO THE
LOWEST RESPONSIVE BIDDER, DIEHL FORD, IN THE AMOUNT OF
$108,639.11 (AB2002 -153)
McShane moved to recommend approval.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID
NUMBER 02 -24 FOR THE LUMMI ISLAND CLASS G ASPHALT PRELEVEL
PROJECT TO THE LOWEST RESPONSIVE BIDDER, WHATCOM
BUILDERS, IN THE AMOUNT OF $348,483 (AB2002 -154)
Roy moved to recommend approval.
Motion carried unanimously.
Finance and Administrative Services Committee, 3/26/2002, 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.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
JOINT FUNDING AGREEMENT BETWEEN WHATCOM COUNTY AND THE
UNITED STATES GEOLOGICAL SURVEY (USGS) TO PROVIDE ONGOING
OPERATION AND MAINTENANCE OF THE COUNTY'S STREAM GAGES
AS PART OF THE EARLY FLOOD WARNING SYSTEM, IN A WHATCOM
COUNTY AMOUNT OF $31,400 OF THE TOTAL PROJECT COST OF
$41,800 (AB2002 -155)
Crawford asked if this is budgeted.
Paula Cooper, Engineering Manager - River /Flood, stated it is budgeted in
the Flood Control Zone District budget. It keeps them online in the United States
Geological Survey (USGS) system. Funds will come from the flood tax.
McShane moved to recommend approval.
Motion carried unanimously.
S. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
COOPERATION AGREEMENT BETWEEN WHATCOM COUTY AND THE
UNITED STATES ARMY CORPS OF ENGINEERS TO PROVIDE FOR
COST - SHARING AT AN 800/o FEDERAL AND 20% LOCAL SPLIT FOR
REPAIR OF A LEVEE SEGMENT THAT WAS DAMAGED DURING THE
JANUARY 7T" AND 8T" 2002 FLOOD EVENT, FOR A COUNTY SHARE IN
THE AMOUNT OF $55,680 AND BY THE LYNDEN /EVERSON SUBZONE
IN THE AMOUNT OF $13,920 FOR A COUNTY TOTAL OF $69,600 OF
THE TOTAL CONTRACT AMOUNT OF $348,000 (AB2002 -163)
Crawford asked the location.
Paula Cooper, Engineering Manager - River /Flood, stated the location is at
the Guide Meridian.
Crawford asked if the remaining balance is supplied by the Army Corps of
Engineers. Cooper stated the Army Corps of Engineers perform the work, and
invoice the County for 20 percent, of which the County cost - shares with the
Lynden /Everson flood sub -zone at an 80/20 funding split.
Crawford asked if the Army Corps of Engineers know what they are going to
bill the County. Cooper stated they pre -bill the County and either refund the extra
or bill again for cost overrun.
Crawford asked how much is in the flood reserve.
Dewey Desler, Deputy Administrator, stated $8 to $9 million is in the flood
reserve.
Finance and Administrative Services Committee, 3/26/2002, 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.
Cooper stated this is actually in the Flood Control Maintenance Program
budget allocation. There is $1 million allocated for repair and maintenance.
Roy moves to recommend approval.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE A
PROFESSIONAL SERVICES AGREEMENT BETWEEN WHATCOM COUNTY
AND SOLE SOURCE WALKER AND ASSOCIATES TO PROVIDE AERIAL
PHOTOGRAPHY AND TOPOGRAPHIC MAPPING OF RIVERINE AND
COASTAL AREAS TO CONTINUE PROJECTS CURRENTLY UNDERWAY
ON THE LOWER NOOKSACK RIVER AND COASTAL AREAS, IN THE
AMOUNT OF $65,585 (AB2002 -156)
Dewey Desler, Deputy Administrator, stated the administration was originally
concerned about the contractor being the sole source. Upon further investigation,
the administration found that Walker and Associates meets the requirements for
being the sole source.
Another issue the administration was talking about was the extent to which
the $91,000 was not budgeted in this year's budget. The Public Works Department
staff indicates that there will be some other funds left over from other projects that
they could use for this item and the next item on the agenda. This is a high priority
item for them to complete, especially in light of the Lake Whatcom work that the
Council called for at the request of the County Executive.
Crawford asked where the money is coming from.
Dick Prieve, Assistant Director of Administration, stated the money comes
from the water resources fund share of the flood fund. At this time, they don't
know what work will fall by the wayside to pay for this. That is why he may come
back to the Council later with a supplemental request. This is a regular outcome of
the moratorium. They need to get this project and the next project done this
season, before the leaves on the trees begin to bud, which will hide the land below.
This is not general fund money.
Roy asked what they are going to see, and if the photographs and
information will look the same as the ones done at Birch Bay. Prieve submitted a
map showing sample results. The map scale would be one -inch equaling 100 -feet,
plus two -foot contours. They are going to pick up all of the impervious areas, even
to the extent in which catch basins will show on the map. The main purpose of this
is to deal with stormwater.
McShane moved to recommend approval of this item and the next item.
Motion carried unanimously.
Finance and Administrative Services Committee, 3/26/2002, 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.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE A
CONTRACT FOR CONSULTING SERVICES BETWEEN WHATCOM
COUNTY AND WALKER AND ASSOCIATES TO COMPLETE GROUND
CONTROL SURVEY AND TO PROVIDE AERIAL PHOTOGRAPHY AND
CONTOUR MAPPING IN THE LAKE WHATCOM WATERSHED, IN AN
AMOUNT NOT TO EXCEED $91,060 (AB2002 -162)
See the above item.
8. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AWARD ON RFP #02 -09 BETWEEN WHATCOM COUNTY
AND SND COMMUNICATIONS AND DAY WIRELESS SYSTEMS, INC.
(VENDOR SELECTION BASED ON AVAILABILITY) TO PROVIDE
ANNUAL MAINTENANCE AND REPAIR OF THE COUNTY'S TWO -WAY
RADIO SYSTEMS, INCLUDING MOBILE AND PORTABLE RADIOS, BASE
STATIONS, REPEATERS AND PAGERS USED BY THE WHATCOM
COUNTY PUBLIC WORKS DEPARTMENT AND SHERIFF'S DEPARTMENT,
IN THE APPROXIMATE ANNUAL AMOUNT NOT TO EXCEED $60,000
(AB2002 -157)
Dewey Desler, Deputy Administrator, stated the staff hopes to have access to
both providers as they do work. There are certain rates that have been through the
competitive bid process. They don't anticipate spending more than $60,000 to
maintain all the equipment, in total. The County's had a long relationship with both
companies.
McShane moved to recommend approval.
Motion carried unanimously.
OTHER BUSINESS
Crawford stated he received a letter from Bill Vogler saying that the U.S.
senators from the State of Washington have not signed on yet in support of the
Payment In Lieu of Taxes (PILT) program for federal lands. The request was for a
total of $235 million, and the Bush administration proposes an amount of $165
million. Within Whatcom County, the PILT money amounts to $500,000 to
$600,000 per year. An approximate 25 percent cut would be $150,000. It is in the
County's best interest to try to make sure that the senate assures full funding for
PILT. They should contact Senators Murray and Cantwell.
Dewey Desler, Deputy Administrator, stated that sending a letter to those
senators is appropriate.
Finance and Administrative Services Committee, 3/26/2002, 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.
Crawford moved to recommend sending a letter to the congressional
delegation requesting that the Payment In Lieu Of Taxes program be preserved at
the recommended level of $235 million.
Motion carried unanimously.
Desler spoke on the Veterans' Relief program. In the 19th century, the
legislature developed a program for counties to implement. Veterans coming from
every military conflict since the Spanish- American war have been added as eligible
recipients of that program. The legislative language is very dated. It requires that
needy veterans and their families be eligible for some kind of assistance that comes
from the county. That assistance, in Whatcom County, comes from a property tax
allocation of $ .01125 per $1,000 of assessed valuation. That money is deposited
by the Treasurer into a separate fund. This last year, the total was about
$135,000.
It is the responsibility of a chartered veterans group to determine eligibility
of needy veterans and recommend some type of support in terms of housing costs
and medical costs. In reviewing the law, he discovered an increasing amount
requested for administration of the program. He has been exploring the legal
authorization for that administration. An old attorney general opinion indicates that
the counties are not authorized to pay for administrative support unless the County
provides staff. Whatcom County began with writing checks for administrative costs,
including staff. They need to change how this system is administered.
Another organization has asked to be considered for administering the
program. They want to authorize payments for veterans' relief also. Soon there
will be a situation in which two or more veterans groups are responsible. The law
says it is an administrative function of the County. He is not prepared to give a
formal recommendation today.
Crawford asked if there are counties who have veterans' advisory boards to
make recommendation on where the money goes. Desler stated history assumed
that the veterans organizations would take on the work to help these people, and
all that the counties would do is write the checks. That assumption has changed
over time.
Brad Bennett, Finance Division Manager, stated a couple of counties might
have a volunteer. Some counties have an employee whose job is in part to do
veterans program work. King County has a staff of several who work on veterans'
relief.
Crawford asked if it is more cost effective to use a third party organization or
to use the County's office infrastructure. Desler stated cost - effectiveness is one
issue. Receptiveness of the veteran's organizations is another issue.
Finance and Administrative Services Committee, 3/26/2002, 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.
Bennett stated the Veteran's Relief fund cannot be used to pay the
administrator unless it is a County employee. The County Treasurer is to annually
determine the administrative cost of the fund, which can be charged against the
Veterans' Relief fund.
Crawford asked if the County has been paying the administrative cost to the
Vietnam Veterans of America, which is not a County employee. Bennett stated the
County has been, which appears to be a problem.
Desler stated the County has been doing that for some years. That is the
problem.
Crawford stated he would like to use the money as originally intended.
Crawford stated there has been recent press about County finances in
general. He asked for an overview of the budget issues today and what they
anticipate. Desler stated the Executive would present information tonight that
includes an action plan to address this problem of revenue shortfalls and
restrictions in the economy. When they make projections about the future of their
revenue, they look at the key revenue sources the County has. Because of the
shortfalls from the legislature and the economy, the administration assumes that
the revenues look to be flat over the next three or four years. As the County
responds to modest cost increases for providers, employees, and benefits, it will
have to cut other things or figure out something new to do. The administration will
ask the Council to define short- and long -term goals, key priorities, and which
services and activities they want to continue. From that, the administration would
construct, and the Council would review, budget guidelines. Administrative teams
in each department will be asked to construct their budgets per the new guidelines.
Executive Kremen will recommend reductions in budget authority and
constraining expenses. They will become very focus on where they deploy County
resources.
(Clerk's Note: End of tape one, side A.)
Desler continued to state that addressing a new strategic plan for the County
will be very important if they are going to get a handle on how to appropriately
address the budgets for 2003 and 2004.
Crawford stated he would like to ask the County's administrators and
contractors for their suggestions on how to achieve service level reductions. He
submitted a list of County programs to look at. He is not for or against specific cuts
in specific areas at this point. One of the questions for each program is whether or
not State or federal law mandates that program. These are areas they can begin
looking at, talk to the people who are performing these services, see what kind of a
service level reduction they might suggest, and determine what the cost savings to
the County would be. Desler stated this is a good list. The question goes beyond
Finance and Administrative Services Committee, 3/26/2002, 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.
whether or not they are mandated. Sometimes things are mandated, but the
County may exceed the scope of what is mandated. They may be able to
accomplish the mandate with less.
Another point is that they may have contracts in place that call for certain
financial requirements. The administration has to review whether or not the County
is getting value out of those arrangements.
The County has also chosen to do things locally that are helpful to the
community. Those projects have grown over time. When the budget is constructed
each year, they generally take the current budget and add to it when a problem is
discovered over the year.
Crawford stated the Council has reviewed all the programs over the years.
They have been recommended by the administration and endorsed by the County
Council. He doesn't intend to state that they want to diminish the value of the
programs. However, there is also a stewardship issue of County tax dollars, to
spend within their means.
Roy stated a critical part of this is stepping back and looking at the County's
priorities. Determine their most vital functions.
Crawford stated that Mr. Desler and Executive Kremen begin in June or July
each year to put together an overall strategic approach to budgeting, which has
been an excellent exercise for everyone.
Virtually every one of the programs on his list has a very vocal constituency.
He is trying to bring the need for taking a hard look at this to the forefront of
everyone's attentions.
Desler recommended that this Finance Committee scheduled time at each
meeting to talk about where they are at and where they need to go next on this
issue. He expects this to be a collaborative process. The administration is meeting
with all of the department heads and elected officials to talk about these issues.
McShane agreed. The Finance Committee should move beyond looking at
contracts and budget changes. The committee should have this kind of dialogue,
particularly this year.
Desler stated they are going to have to reduce workloads if they are going to
ramp down expenditures. The administration will recommend significantly
increasing the threshold of money that they take before the Council for contract
approval. It takes a lot of paperwork and time. The administration will advocate
that they review the major issues during the budget development process. Once
they are approved, the Executive would be given the authorization to approve
anything up to $100,000, as long as the Executive determines it is consistent with
what the Council approved in the budget. That would take 85 percent of the
Finance and Administrative Services Committee, 3/26/2002, 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.
contract issues off the agenda, but would provide more time to talk about policy,
direction, and big - picture issues.
Crawford asked the dollar threshold now. Bennett stated it is $15,000 for
professional services and $35,000 for acquisition of materials.
McShane agreed that there's an efficiency issue.
Desler stated it is one idea of money.
Roy stated she would like to move that issue forward for discussion.
ADJOURN
The meeting adjourned at 1:05 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, 3/26/2002, Page 9