HomeMy WebLinkAboutFinance June 12 20011
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
June 12, 2001
The meeting was called to order at 12:00 p.m. by Committee Chair Robert
Imhof in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Also Present: Absent:
Sam Crawford None
Marlene Dawson
SPECIAL PRESENTATION
1. UPDATE FROM MIKE BRENNEN, BELLINGHAM CHAMBER OF
COMMERCE, ON THE BUSINESS SERVICE CENTER PROGRAM (AB2001-
201)
Mike Brennen, Chamber of Commerce, gave a brief description of the service
center and included a list of businesses and individuals who the service center
spoke to during the first quarter. In many cases, these folks are repeat customers.
They are going to re -sign their contract with the state Department of Community,
Trade, and Economic Development (CTED) through its International Trade Division
because they do so much work with the Canadians. The state asked him to
remember the details of how to do business with Canadians. This next year, they
are going to do seminars on more international business into Europe and the Pacific
Rim. The center will bring in people from Seattle and other locations under the
auspices of the state for that presentation. He asked the County Planning
Department staff and people of first contact to direct people who want to start a
home occupation or cottage industry to the Business Service Center. The center is
linked into the local banking institutions. The Small Business Development Center
(SBDC) is one component of the center, and they can link a business into the SBDC
for technical support.
In addition, they are working with the Work Source folks to be the
community convener for the Georgia- Pacific pulp mill closure. They will work
closely with the private sector to encourage them to hire the people who are now
out of work. They are going to look at some impact of the Alcoa Intalco closure in
the fall. He thanked Alcoa Intalco for replacing the computers in the Business
Service Center. He will come back to the County Council and report on a quarterly
basis.
Imhof stated the councilmembers could develop a list of items for them to
address in their quarterly report.
Crawford asked the roll of the Business Service Center in the Port of
Bellingham's economic development strategy. Brennen stated they have a regular
Finance and Administrative Services Committee, 6/12/2001, Page 1
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attendee to those meetings. The reality is that small business is a vital component
of the economic development system. They are the entity that works with that
component. Their other niche in the market is the Canadian connection. They
have reciprocal membership with the Canadian chambers of commerce. When
Canadians create a business in the United States, it should be a subsidiary
corporation, and they have to hire U.S. citizens. The international trade piece is
going to be a significant component of the future.
Crawford stated there is evidence of good networking between the Port, the
Chamber, and the Economic Development Council (EDC). Those agencies have
traditional responsibilities unique to each. He was concerned that there be an
integrated effort and ongoing communication. He asked if there is a roundtable or
regular meeting between the Port, the EDC, and the Chamber. They need
integration of effort throughout the economic development community. Brennen
stated that there is meeting group called Team Whatcom that has been going on for
years and includes the Port, the Council of Governments, the Convention and
Visitors Bureau, the EDC, and the Chamber. The directors of those agencies meet
monthly to talk about how the processes are going. They will earmark a person in
the system for particular information. In many cases, they are passing people back
and forth between the systems. He refers one -third of the folks who come into his
agency to the Port. They also trade folks between the EDC and the Chamber.
Crawford asked to be allowed to sit in on the next Team Whatcom meeting.
Brennen stated the Chamber has been pushing the idea of quarterly
meetings with the other chambers in the county. There are a lot of personal links
through local networks and connections. Also, councilmembers are welcome to sit
in on discussions with potential incoming businesses to determine business needs.
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AMENDING WHATCOM COUNTY CODE 2.03, BOARDS AND
COMMISSIONS, TO CLARIFY TERM LENGTHS AND CREATE UNIFORM
TERM ENDING DATES (AB2001 -155)
Dawson moved to recommend approval.
Dawson stated there are 40 County boards and commissions with over 300
volunteer members.
Motion carried unanimously.
2. ORDINANCE ESTABLISHING A NEW FUND DEDICATED TO INMATE
TRUST FUND ACCOUNTING (AB2001 -187)
Dawson moved to recommend approval.
Finance and Administrative Services Committee, 6/12/2001, Page 2
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Dewey Desler, Deputy Administrator, stated this is for the purpose of making
sure the County has proper accounting of funds. The administration recommends
establishing this fund. The administration will modify and remove approximately
fifteen funds from the books.
Dawson questioned where the funds were managed previously. Desler
stated the administration is trying to get a handle on what is turning out to be a
fairly active effort with the inmate trust accounts and the purchasing of supplies
and concessions in the jail. They are trying to meet all internal control issues for
those monies. They were handled in the General fund before. The State Examiner
and County Finance Division staff recommended this.
Motion carried unanimously.
3. ORDINANCE ESTABLISHING A NEW FUND DEDICATED TO THE
WHATCOM COUNTY SUPPLEMENTAL RETIREMENT PLAN (AB2001-
188)
Dawson moved to recommend approval.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. RESOLUTION IN THE MATTER OF FINALIZING THE ASSESSMENT
REIMBURSEMENT AREA AND ASSESSMENTS FOR A PORTION OF
ACADEMY ROAD AND AUTHORIZATION FOR THE EXECUTIVE TO
ENTER INTO THE DEVELOPER REIMBURSEMENT AGREEMENT NO. 98-
01 (AB2001 -098A)
Bruce Mills, Assistant Director of Engineering, stated this is to formalize what
the Council agreed upon four weeks ago.
Hoag questioned why the "Whereas" statement beginning on line 31 of
Council packet page 19 is included. Mills stated that language is to ensure that
nothing said during the May 1, 2001 committee meeting had a bearing on any
people not at the meeting. Otherwise, it would be a legal issue.
Dawson moved to recommend approval.
Motion carried unanimously.
2. RESOLUTION ESTABLISHING COUNTY ROAD PROJECT NO. 998026
AND THE AWARD OF CONTRACT FOR THE ALDERWOOD /AIRPORT /W.
BAKERVIEW ROAD IMPROVEMENTS TO THE LOWEST RESPONSIVE
BIDDER, WILDER CONSTRUCTION COMPANY, IN THE AMOUNT OF
$1,230,825.19 (AB2001 -192)
Finance and Administrative Services Committee, 6/12/2001, Page 3
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Imhof moved to recommend approval.
Dawson questioned whether this is in the urban growth area.
Imhof stated it is.
Dawson asked how the County gets compensated.
Imhof stated the cost is depreciated ten percent over ten years. If the area
is annexed within that period, the city pays the County that depreciated amount.
Motion carried unanimously.
3. RESOLUTION IN SUPPORT OF LEAD -BASED PAINT HAZARD
REDUCTION PROGRAM (AB2001 -193)
Dewey Desler, Deputy Administrator, submitted a substitute resolution (on
file) and stated the administration proposes that County submit an application on
behalf of the Health Department and the Opportunity Council to initiate a lead -
based paint hazard reduction program. There are federal funds available through
the Department of Housing and Urban Development to handle those issues. When
the administration initially submitted the paperwork to the Council last week, the
amount was approximately $168,000. The administration has since been given
information from the state office that the County is eligible for almost $313,000.
The program would have an impact on older homes with a significant lead hazard.
This application would create money for training of staff, diagnostic work, and
mitigation of work that would go on in homes in targeted locations. The
administration recommends that the Council approve the pass- through for this
program to serve low- and moderate - income homes.
Imhof asked if this hazard is also dealt with through the Northwest Air
Pollution Authority (NWAPA). Desler stated a consortium has been put together for
this issue.
Dave Finnay, Opportunity Council Housing Director, stated they are working
with the Indoor Air Coalition of the Whatcom County, including the City of
Bellingham, NWAPA, and the Health Department to deal with the HUD lead -based
paint regulations that have come down. Service providers have to comply with
those regulations. This is one -time funding to help the service providers comply
with those regulations.
Imhof questioned whether this funding is just for Whatcom County. Desler
stated $2 million is available statewide. This request is primarily for services in
Whatcom County.
Finance and Administrative Services Committee, 6/12/2001, Page 4
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Finnay stated the numbers of need in Island and San Juan County are small
enough to be combined into one service area. The money is mostly to get the
equipment, so they can provide the service.
Imhof asked if this is just for homes, or also for commercial buildings and
apartments. Finnay stated it could also be for apartments, but is generally
residential.
Dawson questioned whether lead pipes in homes are a problem. Finnay
stated there are changed regulations, and it is not found to be a problem. It is not
a part of this program.
Joni Hensley, Public Health Nurse, stated a recent state survey found that
lead dust created from the paint is the hazard. The survey did not find significant
levels of exposure in the pipes.
Hoag asked if a match is required. Finnay stated there is not.
Imhof moved to recommend approval per the substitute handout.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD THE
BELLINGHAM HERALD THE BID AS SOLE SOURCE FOR WHATCOM
COUNTY'S OFFICIAL NEWSPAPER AND AUTHORIZE THE EXECUTIVE
TO ENTER INTO THE CONTRACT WITH SAID SOLE SOURCE (AB2001-
194)
Dawson moved to recommend approval.
Motion carried unanimously.
Crawford questioned whether the County could request that the legal notices
be included on the newspaper's website.
Shirley Forslof, Auditor, stated the legal notices are included on the
newspaper website, and are highlighted. The legal notices are in the classified
section of the newspaper.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
TWO AND A HALF YEAR RECYCLING HOTLINE CONTRACT BETWEEN
WHATCOM COUNTY AND RE SOURCES TO PROVIDE A WASTE
REDUCTION/ RECYCLING AND HOUSEHOLD HAZARDOUS WASTE
HOTLINE TO WHATCOM COUNTY RESIDENTS AND BUSINESSES IN
THE AMOUNT OF $60,000 (AB2001 -196)
Dawson moved to recommend approval.
Finance and Administrative Services Committee, 6/12/2001, Page 5
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Motion carried unanimously.
S. ANNUAL REVIEW OF FERRY RATES AS SET FORTH IN WHATCOM
COUNTY ORDINANCES NO. 89 -103, 91 -046 AND 93 -040, WITH A
RECOMMENDATION OF NO RATE INCREASE FOR 2001 (AB2001 -195)
Imhof stated this would be held in committee until more information is
available in a couple of months.
Jeff Monsen, Public Works Director, requested that this be held in committee.
They are in the process of doing the 20 -year ferry plan, and there are also contract
negotiations happening right now. Over the next two to three months, a variety of
things will come together.
The issues that will be put on the table for consideration over the next few
months will influence the calculation of the rates. A County Code reference deals
with how they set the ferry rates. Also, fares currently only reflect recovery of
operating costs. There is a difference between operating cost and total cost. Last,
there are a variety of issues, including the eventual replacement of the boat.
Because of the way they provide revenue to operating costs, the costs and
revenues are always exactly the same.
Revenues come to the ferry from ferry tolls, a fuel tax for ferries, and a ferry
deficit tax from the fuel tax. There is a half million dollars put together for Skagit,
Whatcom, and Pierce counties to offset their costs. The more of a deficit the
County has from standard revenue sources, the larger share the County receives of
that fund. However, the share also depends on the deficit that same year in the
other two counties. Even if there is a big expense in one year, the County's share
would go down if the other two counties also had big expenses. The funds received
from the deficit range from $49,000 to $186,000, with costs not changing
dramatically. There is no predictability to what they do. The deficit is based on
some calculation of operating cost, maintenance of docks, and other things.
Revenue also comes from grant funds for capital improvements, such as dock
repair. The remaining revenue is from the County Road fund.
Crawford questioned the recent cost increases in non - operating costs in 1999
and 2000. Monsen stated those are the years they did major dock work. They
anticipate those activities occurring periodically, but not every year.
Dawson questioned whether the state might take over the ferry. Monsen
stated he'd never seen any interest from the state or the legislature to do that. The
only exception is with Wahkiakum County, on the Washington- Oregon border. The
state finds it cheaper to reimburse the county to operate the boat than to fold the
service into the state ferry system.
Dewey Desler, Deputy Administrator, stated the southern tip of Lummi Island
may be in Skagit County, if the Whatcom /Skagit county border was carried west.
Finance and Administrative Services Committee, 6/12/2001, Page 6
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The island would then become a multi- county area, and be eligible for the state
operation of the ferry system.
Monsen continued to state that the current fare structure and recovery is
separated between operating and non - operating costs. Tolls and fuel tax go to
operating costs. The deficit revenue and the County Road funds cover non -
operating costs. Grant funds and other special funds go only to non - operating
costs.
In 2000, nearly $1.3 million was spent in total ferry - related activities. If that
was split into operating and non - operating costs, ferry tolls covered 54 percent of
operating costs, and zero percent of the other costs.
Dawson stated the toll rate has not increased in a long time.
Imhof stated the previous increase was in 1991.
Monsen stated that 60 to 65 percent of the operating cost includes salary and
benefits. The rental of the boat, including basic operation and maintenance, is 15
to 20 percent of the operating costs.
Things not in the fare recovery process include dock maintenance, associated
roadwork leading to /from the docks, and other incidents. Over time, operating
costs have remained consistent and predictable. Other capital costs fluctuate
depending on the year and the need.
The current ordinance and fare structure relate to operating costs only. The
island community and the consultants doing the work can address basic questions
over the next few months. Currently, the ordinance says the County will recover 55
percent of the operating cost at the toll box. They know that the labor negotiations
will influence the operating cost. Also, if the security guard is included as an
operating cost, they need to include that cost.
If the cost of the current security guard was recovered 100 percent at the
fare box, it would be a rate adjustment of $.42 per vehicle that uses the boat. The
current ferry rate fare is $1 for an individual, and $2 for a passenger vehicle. The
total cost is $3 for a car and driver. The fare for a walk -on passenger is $1.
(Clerk's Note: End of tape one, side A.)
Monsen continued to state that the ferry crew is not interested in dealing
with coins, so it's difficult to have a $.42 rate adjustment.
Dawson stated she heard a suggestion that there be a higher rate during the
heavy season and a lower rate during the slower season.
Monsen stated another issue to explore is that the state ferry system is
moving toward a higher percentage in operating cost recovery. They are moving to
Finance and Administrative Services Committee, 6/12/2001, Page 7
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80 percent as part of the overall transportation package. The motor vehicle excise
tax has a direct relationship to the state ferry system, but no relationship to county
ferries. Two state statutes relate to the special allocations for the three counties
that operate ferries. Special allocations are also at risk.
Imhof questioned the amount of the cost the County is recovering today.
Monsen stated for the year 2000, the fares provide 54 percent of the operating
cost. With increasing numbers of vehicles and the increasing costs, the County has
been recovering between 53.5 and 64 percent since the last rate adjustment.
Desler stated the ordinance done in the late 1980's was a different time with
different issues. They were trying to get ridership up, which may have been why
they set the rates as they did. They also took some items out of the definition of
operating costs, to only leave operating costs. A new regulation, Government
Accounting Standards Board (GASB), requires the County to use the most
appropriate and up -to -date standards when doing accounting. The County will look
at how to measure and assign costs for things such as capital. It might be useful to
revisit the entire reason for developing that ordinance because of the high demand
and change to County accounting structures.
Imhof agreed that is a good idea. The County needs to see if that ordinance
is still appropriate.
Monsen stated that the state ferry system, until recently, has had a goal of
60 percent operating cost recovery at the fare box. The state and counties have
similar definitions of operating costs. Ferry docks are considered county road
bridges and dealt with as such. They need to deal with whether the rates collected
will address the capital cost of a new boat. He is not promoting the notion of
dealing with the docks differently, but the boat itself is an issue. They are gearing
up for a federal grant application in 2002 specifically for ferry benefit. The
likelihood of obtaining grant support is not high, but there are possibilities to create
a package over the year that would be competitive. That will also have an influence
over planning the local cost.
Imhof asked if there is County Road Administration Board (CRAB) funding for
the new boat. Monsen stated he didn't think so. The Lummi Island Transportation
Committee has begun to look at the County code. Their focus is to look at items
such as fare adjustments to shift traffic to non -peak times, and how to deal with
traffic when a single truck rolls onto the ferry.
Imhof asked when recommendations would come from that committee.
Monsen stated he is waiting for the consultant report, due in a few days. It will be
distributed to the Council and community. The report will identify what things need
pubic debate. One of those issues is whether they need a new boat, and when.
Imhof stated he wanted to wait until a recommendation comes from the
islanders. Monsen stated they will have made headway to clarify questions that are
unresolved and on the table within a month or two. Security has made a
Finance and Administrative Services Committee, 6/12/2001, Page 8
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substantial difference. More people are parking there now than prior to the
occurrence of vandalism. They are in the process now of soliciting bids to continue
that service.
Imhof stated the recommendation from staff is to hold the issue in
committee until they get a recommendation from island residents. He moved to
hold in committee until they get the recommendations from the Lummi Island
Transportation Committee.
Motion carried unanimously.
ADJOURN
The meeting adjourned at 1:00 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Dana Brown - Davis, Council Clerk Robert Imhof, Committee Chair
Finance and Administrative Services Committee, 6/12/2001, Page 9