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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
May 1, 2001
The meeting was called to order at 12:10 p.m. by Committee Chair Robert
Imhof in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Also Present:
Sam Crawford
Marlene Dawson
Absent:
None
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE PROVIDING FOR TEMPORARY LOCAL HEALTH OFFICER
COVERAGE FOR WHATCOM COUNTY (AB2001 -143)
Regina Delahunt, Health and Human Services Department Acting Director,
stated this was discussed at the Board of Health meeting. Staff needs a formal
mechanism to allow for such a thing to happen. The Prosecuting Attorney
suggested this ordinance.
Dawson moved to recommend approval.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #01-
42 TO THE LOWEST RESPONSIVE BIDDER, NC POWER SYSTEMS, FOR
TWO REPLACEMENT ENGINES FOR THE WHATCOM CHIEF, LUMMI
ISLAND FERRY, IN THE AMOUNT OF $62,879.40 (AB2001 -149)
Crawford asked why they just don't buy a new ferry.
Dewey Desler, Deputy Administrator, stated there are plans for something
much larger than that.
Mary Green, Equipment Rental and Revolve (ER &R) Manager, stated they are
replacing two Lugger engines. The Caterpillar engine was in previous to the Lugger
engine.
Imhof asked about hours between overhauls. Green stated the Caterpillar
engines allow more hours between overhauls and oil changes.
Finance and Administrative Service Committee, 5/1/2001, Page 1
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Crawford questioned how often they replace the engines. Green stated they
replace the engines after about 60,000 hours. Approximately 7,000 hours are put
on each engine per year. They last seven to eight years. The engines are
overhauled every 20,000 to 25,000 hours. The Lugger engines have been
overhauled twice.
Imhof questioned whether the overhaul was in- frame. Green stated that it
was. The overhaul was done during dry dock.
Imhof moved to recommend approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AMENDMENT BETWEEN WHATCOM COUNTY HEALTH &
HUMAN SERVICES AND SERVICE ALTERNATIVES FOR WASHINGTON,
INC. (FORMERLY BLACK FLAG) TO PROVIDE INDIVIDUAL
EMPLOYMENT ASSISTANCE FOR PERSONS WITH DEVELOPMENTAL
DISABILITIES, AND TO TRANSFER ALL RIGHTS, INTERESTS AND
OBLIGATIONS FROM BLACK FLAG EMPLOYMENT SERVICES TO
SERVICE ALTERNATIVES FOR WASHINGTON, INC., IN THE
AMENDMENT AMOUNT OF $11,323.00, FOR AN AMENDED CONTRACT
AMOUNT OF $85,525.00 (AB2001 -150)
Imhof stated this is just a transfer from one name to the other.
Dawson stated the contract provides for more efficiency as well.
Andy Byrne, Human Services Manager, stated it does.
Dawson moved to recommend approval.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND PUBLIC UTILITY
DISTRICT NO. 1 FOR COUNTY -WIDE FIBER OPTIC PROJECT (PHASE
I) FROM RURAL SALES TAX, IN THE AMOUNT OF $162,292.00
(AB2001 -151)
Dawson moved to recommend approval.
Dewey Desler, Deputy Administrator, stated the administration is working
with the Port of Bellingham, the Public Utility District (PUD), and the cities to move
forward with phase one, which is the engineering and planning effort. Before final
decisions are made, there will be lots of discussion with the County Council on
policy and organizational issues.
Finance and Administrative Service Committee, 5/1/2001, Page 2
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Imhof stated this is a great thing for Whatcom County.
Crawford stated he studied this extensively. He would like to see the Rural
Sales Tax used for more fundamental rural development uses. The thing about this
proposal is that it appears to treat everyone with equity. That may be politically
appealing, but there are opportunities to use these funds for sewer and water
improvements. There are more fundamental things to be done with this money.
Added to that, there are concerns by Verizon about government getting in
competition with the infrastructure they've put in around the county over the last
ten to fifteen years. He would be open to the PUD coming forward with a plan to
provide alternative sources of electrical power for the county. He wished the time
and effort expended on this proposal had been expended on that issue. One
contention of the PUD was that businesses are not asking if the county has sewer or
water, but if it has broadband access. He was not sure there were enough of those
businesses to justify the expense.
Imhof stated the Growth Management Act (GMA) capitulated growth to city
limits, including sewer and water services. This is a benefit the County can give to
all the cities. As the cities become larger, the County is going to do more of those
kinds of umbrella processes that encompass all the cities.
Dawson asked about the leverage of the money being available for future
projects. Desler stated they generate about $130,000 per month into this fund.
The level now is at about $2.1 million. They will collect this revenue for the next
23.5 years. It can be used for the kinds of things that Councilmember Crawford
discussed, such as water and sewer projects. There are other conditions on
spending the money. A project has to be part of an overall economic development
strategy or the Comprehensive Plan. They are working with the Planning and
Development Services Department, the Port, and other jurisdictions to roll out a
significant process around that. There will be other efforts in relationship to
priorities that Councilmember Crawford mentioned, but they need to get other
steps in place first. There was a lot of enthusiasm for this project around the
community, and it fit into the requirement of the law relative to what is in the
Comprehensive Plan. The administration would prefer to have a deliberate plan and
process for using these monies.
The project cost is $168,000. The administration does not intend for further
funding to go into this unless the Council chose to. The funds will be used to back
long -term financing of the project.
Imhof stated this is a little over a month's worth of income from the fund. It
will leave plenty of money to do things that Councilmember Crawford has asked.
Crawford stated he supports the PUD. The majority of the Council is for this
project. He supports the PUD's efforts in this, although he hasn't been won over on
this project. He will continue to support what the PUD does.
Motion carried 2 -1 with Crawford opposed.
Finance and Administrative Service Committee, 5/1/2001, Page 3
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COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
2. AMENDMENT #5 TO THE INTERLOCAL AGREEMENT WITH THE CITY
OF BELLINGHAM REGARDING ANNEXATIONS WITHIN THE
BELLINGHAM URBAN GROWTH BOUNDARY (AB2001 -156)
Dewey Desler, Deputy Administrator, stated the administration recommends
approval as presented. The County has been working with the City of Bellingham
on larger issues. The city has been cooperative in creating a more coherent
annexation agreement for that area, which will come forward in a couple of months.
The administration would like to assist the Bellingham School District in facilitating
the proposed elementary school in that area.
Crawford asked what is happening with the annexation of the entire Tweed
Twenty area. They are extending the peninsula out farther.
Sylvia Goodwin, Planning Division Manager, stated the city is working with
neighbors from the Northern Heights area, to the east. The residents of that area
are actively circulating a petition now for annexation. When that area comes in, it
will bring in an area to the west of Squalicum High School. The property owners
drive these annexations. Owners of 75 percent of the assessed valuation of the
area must approve of the annexation to file a petition.
Imhof asked if there was a no- protest agreement. Goodwin stated there was
not a no- protest agreement for this area when services were extended. The
residents are hoping to come forward this summer for the Northern Heights area.
That was the area that the Sheriff and Public Works Department were concerned
about, because it creates an island of County jurisdiction. That area should be
squared off when this other annexation comes in. The Tweed Twenty area has
some other service issues. The area may be annexed in the long -term, but there
are some police issues and other service issues in that area that need to be
resolved.
Crawford stated that area is not receiving all the services, only some.
Goodwin stated the issue today is that the proposed area, which does create an
area to the south that should eventually be annexed in to square it off.
Crawford asked if the city is approaching the County because the city wants
to annex the area. Goodwin stated it is. The property owners approached the city
because they want to be annexed. The property owners include the school district.
Crawford asked if 75 percent of the other property owners of the other
adjoining residential areas have not approached the city asking to be annexed.
Goodwin stated they have not. When the high school was brought in, the city tried
to square it off and include those property owners in the triangle to the west, but
Finance and Administrative Service Committee, 5/1/2001, Page 4
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they could not get support from owners of land totalling 75 percent of the assessed
value.
Crawford asked the downside of being annexed. Cities provide a higher level
of services. Goodwin stated some citizens have the perception that they're better
off in the county, with fewer regulations. There is not much of a tax difference. In
reality, the regulations are not much different. It is hard to judge what the
property owners are thinking.
Greg Aucutt, City of Bellingham Senior Planner, stated there are service
issues with people in the Tweed Twenty area. The police department feels they
need to gear up if they are going to bring that area into the city. Ultimately, it will
be in the city. That is why this area was placed in the urban growth area. It is
developed to urban levels. It is a question of timing for the police and also the fire
district, which gets a lot of revenue from that area. The fire district has asked the
city to not annex Tweed Twenty in the near term because of the impacts on their
revenues.
Crawford asked why the school district wants to be annexed. Aucutt stated
the school district is interested in being annexed at this time because they believe
that property will ultimately be annexed, so it should be developed under city codes
and with city services.
Crawford asked why what is good for the school district isn't good for the
neighborhood. Aucutt stated it is a question of whether the neighborhood wants to
be annexed. He didn't know why residents would not want to be in the city. The
city can't force people to sign petitions.
Crawford asked about annexation areas B and C as shown on the map.
Aucutt stated area C includes property owners who would be agreeable to
annexation if the boundary was better. Area B is included because the County
Public Works Department asked to include that area, so the road that accesses the
school would be in the city.
Crawford asked if there was a petition for area B. Aucutt stated there was.
Crawford questioned whether all the residents had an opportunity to sign the
petition. Aucutt stated all the residents expressed an interest in coming into the
city. That is why the city is working now with the Northern Heights area in a
second phase, to bring the entire subdivision in sometime in the next few months.
Crawford questioned whether schools pay property taxes. Aucutt stated they
do not.
Crawford stated there is no revenue benefit to the school being in the city.
Aucutt stated that is correct.
Imhof moved to recommend approval.
Finance and Administrative Service Committee, 5/1/2001, Page 5
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Motion carried unanimously.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated Whatcom County received a
certificate of achievement for excellence in financial reporting from the Government
Finance Officers Association of the United States and Canada.
Desler also distributed the fourth quarter financial report. The County is in a
healthy financial condition. The General fund collected 104.6 percent of the
revenues they budgeted, and they spent 94 percent of the expenditures they
budgeted. The County continues to modestly grow the fund balance. Part of the
reason for the increase in revenue was because the legislature provided funding for
a bill related to I -695. The interest rate continues to grow faster than projected.
They found that miscellaneous revenue continues to grow. Taxes remain flat as a
revenue source. The fund balance has an amount that continues to allow the
County to continue appropriate services and activities. They are confident they
have the resources to support the kinds of things they want to do.
Crawford asked the difference between budgeted, actual, and projected
funds. He asked how projected amounts could be lower than actual amounts.
Brad Bennett, Finance Manager, stated that at year -end, it is questionable
whether the projected amount adds any information. The revenues don't come in
1/12th every month, nor do they expend 1 /12th every month. Instead, they
average the last three years historical averages for the different periods. That is
what the projected amount is. It is where they anticipate where they will be at a
particular point in the year. They are not adding a lot in the final, fourth quarter.
Hoag asked about the decrease in charges for services. Desler stated there
is a summary of that decrease on page five of the financial report.
Imhof stated he liked the way this was presented.
Desler stated they are going to watch the extent to which the projections
made are consistent with the actual collections. When there are mid -year changes
in programs, as happened in the Health Department, or if there are staff vacancies
and unfilled positions, then there are times when revenues or charges for services
are not collected. They try to minimize that as much as possible.
Dawson questioned whether more fines were collected than what was
projected. Desler stated there are more people. Regarding the Superior Court
budget, the court made some decisions to increase costs, based on the fact that
they were told they would get 100 percent reimbursement from the state of
Washington, which they did. However, Superior Court did not present a
supplemental budget request that showed both the revenue and the expenditures.
Finance and Administrative Service Committee, 5/1/2001, Page 6
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The expenditures went out the door. The revenues came in. But, the revenues
were not budgeted into the budget. Administration will work to ensure that doesn't
happen in the future. The cost of public defense continues to rise. The Public
Defender's Office spent almost 100 percent of their budgeted expenditures. Part of
the issue with the Superior Court budget is the conflict counsel arrangement that
exists, and the fact that the court can order up additional attorneys to handle
certain duties that would be a conflict with the Public Defender's Office. The cost of
that item continues to rise.
Imhof questioned whether the budget as a whole is increasing. Desler stated
he would check.
Imhof stated everything rises. They have to look at how to balance it.
Crawford stated the Road fund and Flood fund were significantly less than
budgeted, in terms of the amount collected. Desler stated they collected over $21
million in the Road fund. The expenditures totaled about $900,000 less in
expenditures than in revenue. The way the monies were budgeted in 2000, they
projected more expenditures in the Road fund than they were going to collect in
revenue by about 12 percent.
Imhof stated some of the projects were delayed.
Hoag asked why only 84 percent of the Flood Control Zone District fund was
collected.
Crawford stated the Flood fund is largely grant based. Because Whatcom
County did not experience a flood, the emergency Federal Emergency Management
Association (FEMA) reimbursement was not required. He asked if that FEMA
reimbursement was budgeted.
Imhof stated it was.
Crawford stated they collected only 84 percent, and spent only 55 percent of
what was budgeted.
Desler stated there are grant revenues that go into the Flood fund, in
addition to the fee.
Bennett stated they put money in there so that if a flood occurs, they have
the appropriation authority to deal with it.
Hoag questioned whether the County is collecting 100 percent of the flood
fee. Desler stated they are collecting the flood fee that was approved by the
County Council.
Desler continued to state that they continue to move forward on requesting
qualifications with the fire districts and the fire department for emergency medical
Finance and Administrative Service Committee, 5/1/2001, Page 7
1 services planning. When they get a response back, the program will be run through
2 the County government. A 26- member committee has been established.
3
4 Desler also stated they are almost ready to issue a request for proposals
5 (RFP) for master facilities planning. The administration asked the City of
6 Bellingham if it wants to partner with the County. The city is interested in
7 partnering. They have set up a steering committee of County managers, who will
8 report to the County Council.
9
10 Desler further stated that the administration submitted a supplemental
11 budget request for the next Council meeting for issues related to grant funding for
12 different programs. They would like to close out an ORV fund and use the funds to
13 pay for a photovoltaic project at the senior center and at the Parks Department
14 headquarters.
15
16 Desler finally reported on grants. The administration is working with the Port
17 of Bellingham on economic development activities. The administration also worked
18 out arrangements with the federal government and state government to increase
19 the County's eligibility for certain kinds of grants, especially regarding economic
20 development. The County needs to put together a comprehensive economic
21 development strategy to gain eligibility for some larger federal grants. Part of that
22 is going on with the Port of Bellingham. The administration is working on a
23 strategy in which the County would issue a grant application to do some things
24 jointly with the Port, focusing on economic development planning with many
25 jurisdictions in the community.
26
27 The County has received lifted sanctions from the state Department of
28 Community, Trade, and Economic Development (CTED) regarding the County's
29 growth management plan. The County is now eligible for some other grants from
30 CTED.
31
32 The administration is seeking a series of grants in the area of technology for
33 law and justice programs from the St. Luke's Foundation and the Governor's
34 Juvenile Justice Advisory Board. There is a major grant the administration will
35 pursue to implement things that came out of the Law and Justice Committee.
36
37 (Clerk's Note: End of tape one, side A.)
38
39 Desler continued to state that the administration is working with the
40 departments to seek grants from the Department of Energy. There will be a
41 request to address and appropriate funding to support the Birch Bay Community
42 Plan. CTED has provided a grant of approximately $17,000 for that plan. The
43 administration is looking at a grant with the Washington State Department of
44 Transportation for expansion of transportation services for people. The
45 administration is also seeking additional grants for the Water Resources Division for
46 the Water Resource Inventory Area (WRIA) 1 process and coastal zone
47 management.
48
Finance and Administrative Service Committee, 5/1/2001, Page 8
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They are tracking carefully what comes out of the legislative budget that is
being negotiated now.
ADJOURN
The meeting adjourned at 12:50 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
Dana Brown - Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Robert Imhof, Committee Chair
Finance and Administrative Service Committee, 5/1/2001, Page 9