HomeMy WebLinkAboutFinance April 3 20011
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
April 3, 2001
The meeting was called to order at 12:00 p.m. by Committee Member Sam
Crawford in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Also Present:
Marlene Dawson
Robert Imhof
Absent:
None
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AMENDING THE 2001 WHATCOM COUNTY BUDGET,
SUPPLEMENTAL #3 (AB2001 -120)
Dewey Desler, Deputy Administrator, stated this budget request implements
the recommendations of the Law and Justice Council. It is a matter the County
planned for. The 2001 budget allowed the Council to take up this issue. He
distributed a substitute to the ordinance (on file) to reflect an error in their
calculations that are unrelated to the Law and Justice Council recommendations.
Crawford asked if all department heads were aware of the changes. Desler
stated they are.
Desler stated there is an additional revenue line from the City of Bellingham
that the County expects to use for support of the Law and Justice Council, in the
amount of $39,000. There are Health and Human Services Department funding
matters, including the proposal to use money appropriated in 2000, which was not
spent. They have received program funding for the Women, Infant, and Children
(WIC) program. The administration advocates appropriating money to buy a couple
of defibrillators. They have submitted a grant application to acquire the
defibrillators. This money would be used as a match for that grant. It would be the
beginning of a project to place defibrillators in very public, high -risk locations.
Crawford asked where the money from the City of Bellingham would go.
Desler stated it would go into the non - departmental fund. The administration
proposes to continue the same agreement with the Northwest Regional Council to
provide staff support to the Law and Justice Council during the next six month
period.
Dawson moved approval of the substitute supplemental budget request.
Kathy Marshall, Law and Justice Council Chair, thanked the committee and
Council.
Finance and Administrative Services Committee, 4/3/2001, Page 1
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Hoag stated she was disappointed that her remote station idea was not
approved. She was told she would have an opportunity to discuss her ideas, but
she never got the opportunity. The satellite stations, which she did not support,
were deleted. They were too complex. She would still like the opportunity to talk
to the Law and Justice Council to discuss decreasing the response times for citizens
in the more remote areas of the county.
Dawson stated that was a concern she had as well. Part of the issue was
with union concerns that have been resolved. Hopefully that will be looked at in the
near future.
Desler stated the Law and Justice Council would be happy to meet with any
members of the County Council to discuss issues and ideas.
Crawford asked the amount of the total request. Desler stated the total
request was for $3.2 million.
Motion carried unanimously.
2. REQUEST FROM AT &T BROADBAND FOR WHATCOM COUNTY TO
WAIVE THE FRANCHISE FEE FOR CABLE MODEM SERVICES TO AT &T
BROADBAND CUSTOMERS (AB2001 -123)
Dewey Desler, Deputy Administrator, stated that AT &T asked to not collect
franchise fees on the cable modems used for broadband services. It's a high -speed
internet access. He proposed three options:
1. Agree to waive the franchise fee. They would continue to collect the fee
and put it into their own pocket.
2. Keep collecting the fee and address the issue in the future.
3. Set up a separate revenue account and identify the portion of the
franchise fee that goes to cable modem services.
The administration recommends the third option. This is still an unclear area
as to whether this is subject to a cable franchise fee. The Ninth Circuit Court stated
it is not technically a cable franchise service. Five percent of the fee comes from
the collection of fees on the modems. The County collects about $12,500 for this
service.
Imhof asked the rationale for waiving the franchise fee. They are using the
County rights -of -ways, just as they are for cable access. Desler stated that if there
happens to be a class action lawsuit that says the County needs to pay AT &T back
for the fees, the County doesn't want to be involved in defending itself unless it is
in its best interest.
Dan Gibson, Senior Civil Deputy Prosecutor, stated it is a fee based on a
percentage of gross revenues. If they calculate it another way, it wouldn't make a
difference whether it was broadband or television. When they offer broadband
services, it increases gross revenues.
Finance and Administrative Services Committee, 4/3/2001, Page 2
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Imhof stated people use broadband for many reasons.
Gibson stated this is about the cable modem portion of the broadband
service.
Imhof stated he didn't see the difference.
Dawson stated she supported not collecting the fee.
Gibson stated that if they don't collect the fee, they couldn't go back and get
it later.
Imhof stated his recommendation would be to bank the fee.
Desler stated the Ninth Circuit Court didn't address the issue of the franchise
fee. The Federal Communications Commission (FCC) will address it.
Dawson stated the County should hold on to the fee then.
Hoag stated this is a rapidly expanding part of the market.
Imhof moved to recommend to the full Council to continue to collect the
franchise fee and bank it, pending outcome of FCC clarification.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. RESOLUTION ESTABLISHING COUNTY ROAD PROJECT NO. 999019
AND THE AWARD OF CONTRACT FOR THE TELEGRAPH ROAD /JAMES
STREET ROAD INTERSECTION IMPROVEMENTS TO THE LOWEST
RESPONSIVE BIDDER, HARKNESS CONTRACTING INC., IN THE
AMOUNT OF $395,077.50 (AB2001 -124)
Imhof moved to recommend approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
FLOOD DAMAGED PROPERTY AGREEMENT FOR THE PURCHASE OF
ONE OF THREE REPETITIVE LOSS PROPERTIES PROPOSED FOR
ACQUISITION UNDER THE HAZARD MITIGATION GRANT IN THE
AMOUNT OF $155,000 (AB2001 -125)
Dawson moved to recommend approval.
Motion carried unanimously.
Finance and Administrative Services Committee, 4/3/2001, Page 3
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3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY HEALTH AND
HUMAN SERVICES DEPARTMENT AND REGION 3 AIDS SERVICE
NETWORK TO PROVIDE HIV /AIDS PREVENTION INCLUDING
COUNSELING AND TESTING, OUTREACH TO HIGH -RISK
POPULATIONS, ET AL., IN THE CONTRACT AMOUNT OF $126,310
(AB2001 -126)
Imhof moved to recommend approval.
Dawson asked about the three months that have lapsed since the beginning
of the contract term, and if the County gets a reduced amount since the contract
was to have begun in January.
Regina Delahunt, Interim Health and Human Services Department Director,
stated they get the full amount. They knew the dollars were coming.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY HEALTH AND HUMAN
SERVICES DEPARTMENT AND CHAMBERS & WELLS COUNSELING,
INC. TO PROVIDE SUBSTANCE ABUSE TREATMENT SERVICES TO
INDIGENT AND LOW- INCOME CLIENTS, IN THE CONTRACT AMOUNT
OF $385,800 (AB2001 -127)
Dawson moved to recommend approval.
Crawford stated he was impressed by what the contractor is doing.
Imhof stated this is a revision to the existing contract, and is for the
biennium.
Motion carried unanimously.
5. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AMENDMENT BETWEEN WHATCOM COUNTY AND THE CITY
OF BELLINGHAM CONCERNING EXTENSION THROUGH DECEMBER
2004, FOR MEDIC ONE SERVICES (AB2001 -128)
Dewey Desler, Deputy Administrator, stated the current agreement is due to
expire at the end of this year. The Mayor of Bellingham sent the County Executive
a letter requesting a new agreement by the end of March. They are moving ahead
with the full implementation of the fourth medic unit. The County has been working
with the City of Bellingham. There is an agreement between the Mayor and the
Executive, and that is what is presented to the Council.
Finance and Administrative Services Committee, 4/3/2001, Page 4
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There are changes fundamental to the agreement. One change extends the
agreement to three years. Every year, they would re -up to a new three -year
period. One change provides for certain contract termination procedures. The
agreement creates a more active joint role with the city in budget building, which
starts in May, to work on a budget for the next year and two years beyond. It also
creates policy statements about working closely with all stakeholders in the
community, so they are actively engaged. It commits both parties to an active
strategic planning process about how to address services in the future. It
strengthens the discussion and processes when they do have disputes, to resolve
them in a way laid out in an agreement.
Dawson moved to recommend approval. She liked the changes giving the
County more of a voice. She encouraged participation from the small cities.
Crawford stated that the County and city originally came together with a new
budget outline proposal. There were some elements that the County wanted to be
different from what was proposed. The essence of that had to do with a cost cap
for the budget. Another aspect had to do with a performance clause that was very
specific regarding response times and other issues. Over the course of several
meetings, he did his best to serve the Council and County's interests in relaying
those concerns. Several weeks ago, he indicated that he would like to withdraw
from those meetings and let the Executive's Office hammer out the details, after he
knew his voice had been heard. The result of expressing his concerns is on page
two of the agreement. The cost cap is difficult for the city to deal with. The third
paragraph of section III(D) is the result. As he left those meetings, he understood
that they would leave the cost cap open- ended, but if the County and city can't
agree during the mutual budget planning process, then they would revert to the
rate of inflation as the cost cap. If that was unacceptable to either party, then it
would go to mediation. The contract as presented takes out that middle step. He
asked how that was changed.
Desler stated the city would not agree to a cost cap. Part of the compromise
is how the budget will be built. The city had always approved the budget first,
before it came to the County. They need to be partners in building the budget. If
they can't agree, then they move to mediation. At that point, they would adopt a
budget amount equal to the previous year's amount, plus an increase equal to the
consumer price index (CPI) or the percentage of wage settlement for uniformed fire
personnel for the current calendar year, whichever is greater. They would use that
factor until they reached an agreement. If they couldn't agree, then they would
execute a termination clause.
Crawford stated he agreed with that process.
Imhof stated the County has no input on the wage increase. The amount
should be the lesser of the CPI or the wage increase, instead of the maximum of
the two factors. As it is, it gives the city no incentive to negotiate. Desler stated
the city's argument is that they oftentimes end up in arbitration, which sets the
wage increase amount. That is the largest part of the impact. He looked at the
Finance and Administrative Services Committee, 4/3/2001, Page 5
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rate given to fire personnel. The wage increases are more than the two percent
raises given to County personnel, but not much more.
Imhof asked if the County has the ability to audit their books. Desler stated
the County does.
Imhof asked if assets would be identified that are co- mingled or if they
independently belong to one or the other. Desler stated it is a 50/50 split of the
assets if the contract was terminated.
Imhof questioned the division of service rendered to Bellingham as opposed
to the County. Desler stated 52 to 53 percent of the service is for residents in the
City of Bellingham.
Imhof asked how it is measured. Desler stated it is measured by the call
volume. One issue is that the County doesn't allocate any resources to audit or
manage this service. The County is entering a new stage of ramping up that
activity, without added personnel. The County is paying for half of the city's
management of the service.
Imhof stated these are the issues that the people of the county want to know
about. They need to look at a plan they are going to put together, and work with
the other entities of the County to make sure they are included. Desler stated this
is a service directed mostly at older people who tend to live in urban areas. The
extent to which they provide services in urban areas is far greater than
unincorporated areas. As the County continues with the Growth Management Act
(GMA), they are going to see increasing amounts of service like this directed to
urban areas.
Imhof stated Medic One is requesting to have another ambulance because
they are overworked, yet they are requesting to take on non - emergency activity
that they are not handling now. He asked the rationale for that.
Desler stated the existing agreement has a non - emergency clause in it. The
clause was modified to not expand the service. They also agreed that the city may
provide non - emergency services using the equipment as long as the delivery of
these services does not adversely affect the city's ability to provide Medic One
services. A third issue is that the users will meet the cost of non - emergency
services. Medic One provides about 50 non - emergency trips per year. If that
volume grows, Medic One would use it as a justification of increasing the number of
units. The County is not necessarily interested in that because this is an
emergency service. The city agrees with the County, which is why that language
exists.
Crawford stated this was discussed during their meetings.
(Clerk's Note: End of tape one, side A.)
Finance and Administrative Services Committee, 4/3/2001, Page 6
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Crawford continued to state that the non - emergency transport is almost
always fully reimbursed. Medic One did offer to explore the possibility of separating
out non - emergency transport as a separate item, of which they would bear the
cost. However, that service actually becomes a net gain on the program. That
activity is usually for convalescent transport. In most cases, private carriers do the
service, but Medic One will do it on occasion. Those are high reimbursement
services.
Imhof stated there are private suppliers for that service, and he wanted to
make sure their concerns are addressed.
Desler stated that Medic One calls around to all other private carriers. If no
one else can do the transport, then they will do it.
Crawford stated that item XVI on packet page 188 has been scaled back
because of the emergency management services (EMS) strategic planning
committee efforts to address it specifically. He was satisfied that is the appropriate
venue. They need to look at the real performance standards that they want to
have locally. He was in favor of the language in the contract. The County and city
both negotiated well. All parties were able to meld the concerns. He had no doubt
that the contract would be amended as needs change. He liked the predictability of
the three -year component. Everyone compromised. They have something very
workable for the coming year that allows predictability. They are not going to reach
a crisis point this fall on what is going to happen with Medic One.
Desler stated the administration appreciated Councilmember Crawford's
assistance with this issue, and also the assistance of the people who worked on it.
Motion carried unanimously.
OTHER BUSINESS
Shirley Forslof, Auditor, introduced her new Chief Deputy Auditor, Christine
Blake, who is replacing Terry Hinz. She comes from the state Auditor's Office.
ADJOURN
The meeting adjourned at 12:54 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
Dana Brown - Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Sam Crawford, Committee Member
Finance and Administrative Services Committee, 4/3/2001, Page 7