HomeMy WebLinkAboutFinance September 24 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
September 24, 2002
The meeting was called to order at 12:05 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:
Laurie Caskey- Schreiber
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AMENDING THE 2002 BUDGET, 10TH REQUEST (AB2002-
334)
Dewey Desler, Deputy Administrator, stated the administration hopes to
implement a series of recommendations for Juvenile Services. They have found
money to pay for a program to implement services for those youth in the justice
system who appear to have mental health problems. The model recommended by
the task force is what the administration proposes. There are some grant funds
they've found for a short period of time, and they expect more to continue on in the
future.
They have been working to install automatic defibrillators in various
locations. The County received a grant to pay for part of this expense.
The administration is engaged in some arbitration issues with the Sheriff's
Guild over the matter of how to handle the four ten -hour days work schedule. The
County needs to retain a lawyer. The administration would like to adjust the
contract as discussed during Committee of the Whole meetings.
Other items in this request include an issue regarding paying off a bond for a
road improvement district. Propose to use funding from the Civic Center fund to
pay for the adjustments necessary on the fourth floor to house the Hearing
Examiner, create another classroom for Juvenile Justice Center, and replace the
roof on the building. They also propose to initiate a new heating /ventilation /air
conditioning (HVAC) system for courthouse third floor courtroom. Long term plans
are to change out the oldest HVAC systems that are 50 years old so they can bring
them up to today's standard.
Finance and Administrative Services Committee, 9/24/2002, 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.
From the Public Utilities Improvement fund, they propose to pay for
extensive engineering for problems in the jail and juvenile detention facility. Many
electronic security controls are failing. The effort would define the problem, design
a solution, and build a set of specifications that they can take into the marketplace
to acquire the installation needed for those facilities. Also, there is a problem with
the exterior of the courthouse. In the last few months, they've found problems
with the skin around the building. The problems are from the way it was
constructed. There is water damage premature to a building of this age. The
County has a responsibility to fix it. The administration is seeking expertise to
handle engineering and a solution. In both cases, it will involve many hundreds of
thousands of dollars, depending upon the nature of the problem. The courthouse
exterior may not be as serious as they initially think. The Jail control and juvenile
problems will cost about $1.5 million.
Roy stated the Council just approved a huge amount of money to look at
facilities throughout the county and to get a plan in place. She asked if this
couldn't wait until that study is done. Desler stated the administration requested
master facilities planning to look at the long term and medium term at where the
County is going with its buildings. They do not propose anything here that would
not realize a payback, even if they were to sell the buildings. They have to protect
the existing roof at the Civic Center building. They are trying to use the space
efficiently. They have never had a plan to get rid of the jail facility. They may as
well face the issue of a flawed control system. There are many other issues with
the buildings that they have not brought forward.
Roy stated Councilmember Brenner has asked about the need for the
juvenile services classroom.
Steve Paus, Juvenile Court Administrator, stated they currently have one
classroom in the justice center. They also have one small conference room. The
classroom has room for four computer carrels. They have developed the program
to be an alternative to detention, as a way to get kids back into the community,
and to serve kids who are having trouble in school. The room is not large enough.
It's possible to move over into a portion of the area where the public defenders are.
He budgeted to cover the cost of the expansion.
Roy asked how many students they have at a time. Paus stated they have
six to ten students.
Desler asked Mr. Paus to explain the benefits that accrue with the justice
center.
Paus stated the capacity in Juvenile Detention is 30 beds in individual rooms.
When they get over capacity, they bring on extra staff, which costs overtime or
extra help. The justice center has allowed them to develop alternatives for kids
who come into contact with the court the first time. Now there are alternatives to
Finance and Administrative Services Committee, 9/24/2002, 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.
detention. Those programs will postpone or prevent the need to build a larger
detention facility.
Roy asked if there are repeat offenders that take part in these programs.
Paus stated there is a screening program. Those youth who are a danger do not
participate.
Crawford asked about the Civic Center fund. Desler stated that when the
County acquired the building in 1997, it bonded for an extra $1 million to bring the
building up to use. About $770,000 is left in the fund. The administration has been
very cautious about its use. These items related to the Civic Center annex are to
bring the building up to a modern standard. There are some tax law issues with
the Internal Revenue Service (IRS). The County has a certain period of time to use
the money that is bonded. If it goes beyond November 2003, the County is
required to pay the money back to the IRS because the County would be
considered to be arbitraging the money. He is working carefully on plans to use the
rest of the fund prudently before then. The choices they are working on are
whether or not to continue to use those funds for making improvements in the Civic
Center building, or to use the Civic Center bond funds on this building or the public
safety building. The Council will have to adopt an ordinance to use the Civic Center
funds on other buildings. The administration will bring an ordinance forward in two
weeks.
Crawford stated the committee is beginning to make that decision by
approving this item today. Desler stated that is correct. The administration won't
use the money until the ordinance is before the Council. The administration will
recommend adoption because it is working on a plan to move operations out of
rented space and into the Civic Center building. The renovation of the third floor is
the most expensive floor to do. The estimate for renovating the third floor is about
$350,000. The administration is not ready to do that yet.
Roy asked if the bond funds would still be there, even though they have to
pay the tax to the IRS after the deadline. Desler stated that is correct. The tax
would recur annually.
McShane moved to recommend approval of the ordinance.
Caskey- Schreiber asked about the negotiator for the labor negotiations, and
why the County's Human Resources staff can't negotiate it. It seems cumbersome
to bring someone else in. Desler stated the administration prefers to use existing
staff. However, the civil deputies felt they could not adequately handle this level of
representation. The issues are very complex and contentious. It is in the County's
best interest to continue using the attorney who has represented the County for the
last few years.
Caskey- Schreiber asked how successful the attorney is, since the County has
been using him for the last few years and there are still issues. Desler stated the
Finance and Administrative Services Committee, 9/24/2002, 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.
County has been involved in negotiations for the last three years. They may
continue to be in extensive negotiations with this group. The County should be
prepared for it.
McShane stated that if they choose not to negotiate, they can kick it into
binding arbitration at any time. Desler stated the uniformed officers in the state
have been given binding interest arbitration. The County would lose its ability to
negotiate any further if they can't come to a settlement. The County would be
required by law to follow the ruling of the arbitrator.
Caskey- Schreiber stated she talked to the City of Bellingham administrator.
That schedule works okay for the City of Bellingham. The County is risking a lot on
this issue. She asked if there is a way to negotiate it so the sheriff deputies don't
use more overtime.
Crawford stated the County Council is in the position of representing the
taxpayers, which is why it is involved. The Council has a fundamental interest in
making the most fiscally prudent judgment. The issue of a four 10 -hour workdays
schedule is one part of a complex compensation program. If the Council feels that
it is not the direction it wants to go, it would be a matter to discuss in executive
session. The Council has chosen a course of action, and should fund that course of
action.
McShane stated this is a case of the new councilmembers inheriting a
decision that was made some time ago. This is the route they chose to go. Now
they are dealing with the consequences of that choice.
Crawford asked if they are doing the third floor of the courthouse with the
Civic Center fund because they don't want to use general funds and also because
they need to spend that money by November 2003. He asked why they decided to
use the Civic Center fund instead of the rural sales tax money. Desler stated the
key issue is the arbitrage issue. They are trying to use the Civic Center funds in
the way they were intended. The bonding council indicated that, with a small
wording change in the current ordinance, they could start to use the funds for the
purposes of the courtroom. It's a timing issue.
Crawford asked whether they considered funding the repairs to the jail
controls and courthouse exterior from the Civic Center fund. He asked how the
administration determined to use that fund instead of the rural sales tax. Desler
stated the Civic Center fund needs to be spent on capital. The Public Utility
Improvement fund, also called the rural sales tax, allows for engineering as a
legitimate expense to part of a public facility.
Roy asked if the committee is supporting the third floor courthouse item
when the ordinance hasn't come forward yet. Desler stated they could pull that
item. The administration intended to move them forward simultaneously. Even if
Finance and Administrative Services Committee, 9/24/2002, 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.
the Council approved the budget request, the administration would not use the
money until the ordinance for the bond change is amended.
Roy suggested a friendly amendment to not include the third floor
courthouse repair.
McShane stated he accepted the friendly amendment to his motion.
Motion to approve, without the third floor courthouse HVAC repair, carried
unanimously.
2. REQUEST AUTHORIZATION TO ENTER INTO A CONTRACT FOR
HEARING EXAMINER SERVICES FOR OCTOBER 2002 THROUGH
SEPTEMBER 2003 (AB2002 -339)
Dana Brown - Davis, Clerk of the Council, stated this is an annual contract
renewal. They have two more years before they have to go out for a request for
proposal (RFP) process for that position. Michael Bobbink is asking for a ten
percent salary increase, which the Council Office did not budget for. They will have
to put in for a supplemental budget request if the Council approves it. Mr. Bobbink
has gone two or three years without an increase.
Caskey- Schreiber stated she is against the raise. The Council recently voted
down a raise for all elected officials. Ten percent is an enormous increase. This is
not the time to ask for that.
Roy asked how the Council is to know about performance.
McShane stated one way to gauge performance is by the number of appeals
to the County Council and whether decisions are rendered in a timely manner,
which was an issue with past hearing examiners. Looking at the quality of work
done, he's been okay with the Hearing Examiner's decisions. He's not comfortable
with the ten percent increase at this time. If the Council begins to see problems
with the level of service, then it can visit the issue at that time. He asked if there
have been any problems. Brown -Davis stated she has not received any complaints.
Crawford asked if the Hearing Examiner is allowed to opt out of the contract
if he doesn't get his raise. Brown -Davis stated she would have to look at the
contract.
Roy asked how many similar kinds of contracts the County has with people
who aren't elected officials. She asked if they ever look at this as a group during
the budget process.
Brad Bennett, Finance Division Manager, stated there are other professional
services contracts. It's not uncommon to have a provision in an ongoing contract
to opt out with notice.
Finance and Administrative Services Committee, 9/24/2002, 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.
Brown -Davis stated it is unusual for the County to provide staff and facilities
to the contractor.
McShane stated the City of Bellingham has a hearing examiner in- house.
Bennett stated that if this service wasn't being provided by a licensed
attorney, it would be construed as an employee by the IRS. Because there are so
many of those factors, the fact that he is practicing law means they can contract for
the service. This is a very unusual professional services contract, but it is fine.
McShane stated a hearing examiner as an employee is a bad idea. He likes
the neutrality of the hearing examiner. He doesn't agree with some of the
decisions, but overall he's not doing a bad job. The hearing examiner is getting the
work done, and the Council has not gotten many appeals.
As a reason for the salary increase request, the Hearing Examiner cited the
site specific rezone process and additional work from the Health Department. He
doesn't know how many more of those rezones they will get. The Council changed
the process for administrative notice for civil penalties and abatement. They
haven't seen the results of that legislation, yet. A salary increase might be
appropriate in six months if they get more site specific rezones and a bunch of
abatements from the Health Department. He moved approval of the contract
without the ten percent increase.
(Clerk's Note: End of tape one, side A.)
Crawford stated the contract does not have language in it about the increase.
The committee should approve the contract at the same rate as last year, and
provide direction to not increase the contractor wages.
McShane stated the Council should give Mr. Bobbink some direction about
why it didn't approve the salary increase.
Motion to recommend approval to the Council with no increase carried
unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT RENEWAL OF THE TEEN COURT GRANT THROUGH THE
GOVERNOR'S JUVENILE JUSTICE ADVISORY COMMITTEE, BETWEEN
WHATCOM COUNTY AND NORTHWEST YOUTH SERVICES IN THE
AMOUNT OF $76,640 OF WHICH WHATCOM COUNTY WILL RECEIVE
$6,960 IN INDIRECT COSTS (AB2002 -344)
Finance and Administrative Services Committee, 9/24/2002, 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.
McShane moved to recommend approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY AND PIERCE
COUNTY TO PROVIDE PIERCE COUNTY THE OPPORTUNITY TO
PURCHASE A 250 GALLON CRACK SEALER UTILIZING OUR BID #01-
114 (AB2002 -345)
McShane moved to recommend approval.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT AMENDMENT BETWEEN
WHATCOM COUNTY PUBLIC WORKS AND GOLDER ASSOCIATES FOR
PHASE 2 OF THE JOHNSON CREEK MANAGEMENT AND RESTORATION
PLAN, USING FLOOD CONTROL ZONE DISTRICT FUNDS, IN THE
AMOUNT OF $73,884 FOR A TOTAL CONTRACT AMOUNT OF $88,767
(AB2002 -346)
Roy moved to recommend approval.
Crawford asked if the Flood Control Zone District Advisory Committee has
discussed this.
Paula Cooper, River and Flood Division Manager, stated she doesn't take
contracts and amendments to the advisory committee, but it recommended helping
the districts develop a plan.
Crawford asked if the advisory committee keeps an eye on the available
amount of money in the fund as it moves recommendations forward. Cooper stated
the advisory committee recommended moving forward with this project several
years ago. At the last advisory committee meeting, it began to discuss budgetary
issues, but not specific to this contract.
Crawford stated he is always trying to understand the big picture. He asked
that, in the future, he receive information on how everything fits together.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
AGREEMENT WITH KEY BANK AND UNION BANK OF CALIFORNIA, THE
FORMER IS THE CURRENT FINANCIAL INSTITUTION FOR BANKING
AND THE LATTER TO PROVIDE SAFEKEEPING SERVICES (AB2002-
347)
Finance and Administrative Services Committee, 9/24/2002, 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.
Theresa Mroczkiewicz, Cash Management Administrator, stated this is to
enter into a five -year contract. They have been contracting with Key Bank for the
last ten years. They have evaluated the three bidders on the basis of several
points. Key Bank emerged as the most cost efficient bidder.
McShane moved to recommend approval.
Motion carried unanimously.
Crawford stated he received a call from Karen Thomas about a meeting to
discuss debt policy and refinancing some 1993 bonds. He asked what that is about.
Barbara Cory, Treasurer, stated the County has an Administrative Finance
Committee. A recent change in State law requires counties to develop a debt
policy. Whatcom County has not had enough time to address that issue. There are
some important policy decisions that need to be made to put the debt policy
together. The Administrative Finance Committee discussed the best approach for
that policy. The chair of the Council Finance Committee and the Executive's Office
should be involved in discussing some of those policies. She is anxious to get those
policies in place.
Crawford asked if that involves the issue of refinancing the 1993 bond. Cory
stated it does not. Now, because rates are so low, there is an opportunity for the
County to refinance those bonds and save money. She has received information
about it from the underwriter. They can go forward with that without a debt policy
in place.
COMMITTEE DISCUSSION
1. DISCUSSION REGARDING WHATCOM COUNTY'S PURCHASE OF
DEVELOPMENT RIGHTS PROGRAM FUNDING (AB2002 -337)
Crawford asked if they wait for Land Trust to bring forward proposals if this
program uses Conservation Futures fund dollars.
McShane stated they should wait and see what comes forward. A bigger
issue is the cost of running the program. There has been some cost already to
come up with the program.
Dewey Desler, Deputy Administrator, stated there are two major issues with
the purchase of development rights. One of the issues is the cost of purchasing the
value of the property. Acquiring the development rights is consistent with the
conservation futures law and fund source. The second issue is how to manage a
program like that.
Finance and Administrative Services Committee, 9/24/2002, 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.
McShane stated the Natural Resources Committee discussed it somewhat
during its meeting this morning. A fee structure that is a part of the purchase of
the development rights could be included in the easement contract. The fee would
fund the Land Trust or whoever the County designates to do the monitoring. He's
comfortable that they've addressed it. There is still an issue with the County
running the program, presenting the purchases to the Council, and the processing
that staff will do. Desler stated the administration would like to work out a way to
discuss with the Council the fiscal impact each time a policy decision is approved.
As the administration develops the budget for 2003, they have diligently tried to
use the budget guidelines from the County Council. Often, it means they have to
make choices. If they expand a service, they have to cut something else. That's
the position they are in now. If they are going to expand capacity or add staff
through the general fund, they have to decide what not to do. The administration
feels strongly about the purchase of development rights (PDR) program. It will
have value to the community. They are trying to find the resources to pay for it. It
may well be that if they can legitimately pay for a portion of those staffing costs
from the conservation futures fund, then they will try to do that. They are working
with the Planning Department staff to find examples of that in other communities.
Roy stated she's thinking of the proposal the Planning Department made
about the need to draw some of these programs together. They need to have
someone within the County that is looking at the big picture. It's important if a
County mission is to look 50 years down the road to decide how the county will
look. This is one of the most important things they do. They need to staff it. She's
not sure that it should all have to come out of the conservation futures fund. They
may have to look at their priorities in the general fund. She is willing to do that.
She is willing to consider this as a priority.
McShane stated the Natural Resources Committee recommended approval of
the contract with the Land Trust and the easement language. The Council
approved the PDR program. In doing that, they have not created a cost to the
County. They may have created false expectations if they don't provide staff. The
Finance Committee may need to discuss funding whenever they consider new
programs or going a new direction. There are a lot of fund sources out there. If
they don't commit to staffing then they could miss additional funding opportunities.
Crawford asked why they need to staff the PDR Program since they are
contracting with the Land Trust.
Caskey- Schreiber stated a big component of the program is getting
applications to the federal government. They can't do that without staff. That is
not something the Land Trust would do. Desler stated the County staffed the
conservation futures fund in the past through the Parks Department, who opted not
to do certain other things. In this case, the Planning and Development Services
Department is under stress with all the things they have to do.
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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 grant writing function is a full time job. Desler stated it
depends on how aggressive they are.
Caskey- Schreiber stated it will still take staff time to accept applications and
working with the PDR Committee. Many successful PDR programs use creative
ways to fund staff. The majority of these programs are successful because they are
getting federal funds.
Roy stated it isn't just about staffing a PDR program. The Council is also
asking the staff person to work on the TDR program and look at how all the
programs fit together. This Council has generated a large amount of work for the
Planning Department since January. A staff person is needed for more than just
the PDR program. The Council needs to respect that department. She supports the
Planning Department's proposal.
Crawford asked if the administration could provide insight into funding a staff
person for the Planning Department. Desler stated he always appreciates the input
from the Council.
Crawford stated the majority of the Council seems to think this is a good
thing. Desler stated they are not able to fund all the good things the Council and
County want to do. The administration is trying to put together a proposal to
address TDR and PDR issues. See if there are other things that they can do
without.
OTHER BUSINESS
There was no other business.
ADJOURN
The meeting adjourned at 1:27 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, 9/24/2002, Page 10