HomeMy WebLinkAboutFinance November 27 20011
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
November 27, 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:
Sam Crawford
Marlene Dawson
Absent:
None
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AMENDING THE 2001 BUDGET, REQUEST # 11 (AB2001-
374)
Dewey Desler, Deputy Administrator, stated the County began a self -
insurance fund a few years ago. They are finding that, over those years, the fund
balance has declined to the extent that they need to restore the fund balance to its
original balance of $1,050,000. This is a transfer from the general fund to the
health insurance fund balance.
The second issue has to do with the fact that the cost of the health insurance
in the self- insurance program far exceeded what the County projected. The cost is
about $900 per person. That is the amount of revenue they have to find to support
that cost.
Dawson questioned whether they could transfer funds from the Road fund.
Desler stated it goes into the Administrative Services fund, which is what they use
to pay for health insurance costs. It is only for the people in that department.
Crawford asked about the other items.
Desler stated the Sheriff received funding from the Port of Bellingham to pay
for security at the airport. They have a modest grant from the State Department of
Social and Health Services (DSHS) to provide substance abuse and chemical
dependency services for pregnant and parenting women. The grant is self -
supporting. Also, the Auditor says she is able to do all the work regarding the most
recent election within the existing budget, so she has withdrawn that request.
The $520,000 for the Administrative Services - Human Resources, is where
they need the expenditure authority to pay for the additional costs of health care
for 2001. The revenue comes from the $301,000 in the general fund and from
miscellaneous amounts that come from the Emergency Management fund, the
investment pool fund, and the various districts. The combination of all that
revenue would total $520,000 for 2001.
Finance and Administrative Services Committee, 11/27/2001, Page 1
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Crawford asked what happens next year. Desler stated the administration
increased the amount projected to take from each of the departments' budgets.
The new calculated amount is $503,000 for the year 2002.
Crawford asked at what point the Council starts talking about employee
participation in health care costs. Desler stated at the negotiation with the union.
Crawford asked about the road improvement district (RID) guaranty fund and
Solid Waste fund. Desler stated there have been late payments and nonpayment
related to the expenses associated with a special program to finance enhancements
to the facilities at Cordata. The Facilities Management Division proposes to transfer
money from another fund to make the loan payment, so they don't affect the bond
rating. At the end of the normal period of time when properties are subject to
nonpayment, they get into a foreclosure issue, which is three years. If there
continues to be nonpayment on the parties who are obligated to pay this amount,
then the County would seek foreclosure.
Imhof asked the number of years left on the loan.
Eric Schlehuber, Office Administrator, stated there are four or five years left
on the loan.
Imhof stated they are improvement districts that put the sewer and road in
the Cordata area. The property owners were paying it back. This is about some
property owners that didn't make their payments. The County will get the
payments back, or foreclose on those properties.
Desler stated the last item is a Public Works Department proposal to
appropriate funds to pay for consulting contracts for the Y Road landfill. They
would like to build a fence around some property. They are experiencing costs
associated with disposal of toxic material. They also have a litter control grant.
These were approved by the Solid Waste Executive Committee.
item.
Dawson moved to recommend approval.
Imhof moved to amend the ordinance to remove $24,000 from Auditor's line
Motion to amend carried unanimously.
Hoag questioned whether the Sheriff's request for overtime is entirely for
port security at the airport. Desler stated it is.
Motion to approve as amended carried unanimously.
2. ORDINANCE AMENDING WHATCOM COUNTY CODE 2.02, COUNTY
COUNCIL (AB2001 -352)
Finance and Administrative Services Committee, 11/27/2001, Page 2
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Imhof stated this is the clean up resulting from last year's code scrub.
Dawson moved to recommend approval.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #01-
102 TO THE APPROPRIATE VENDOR FROM THE IDENTIFIED BIDDERS,
BASED ON EQUIPMENT AVAILABILITY AND SUITABILITY, WITH
PREFERENCE TO LOW BIDDERS, WITH THE POSSIBILITY THAT MORE
THAN $35,000 COULD BE SPENT WITH A SINGLE VENDOR (AB2001-
378)
Dawson moved to recommend approval.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #01-
130 TO THE LOWEST RESPONSIVE BIDDER, KENWORTH NORTHWEST
INC., FOR A BLADE TRUCK IN THE AMOUNT OF $119,862.87
(AB2001 -379)
truck.
Imhof asked if this is a replacement vehicle.
Mary Green, ER &R Manager, stated it is the replacement of an old blade
Imhof asked if it is a front blade. Green stated it is a belly blade.
Dawson moved to recommend approval.
Motion carried unanimously.
Crawford stated he would like to standardize the County's fleet to get
interchangeable parts. It seems like the County is still buying equipment from a
variety of suppliers. Green agreed that it is a nightmare, but it's about how they
write a bid and who meets the bid. If they don't write a bid where various vendors
can bid, then they create bad relationships with the vendors. Lately they have
mostly been getting Kenworth trucks.
3. RESOLUTION SETTING HEARING DATE AND NOTICE OF HEARING ON
SALE OF COUNTY TAX TITLE PROPERTY, REQUEST NO. 05 -01
(AB2001 -380)
Finance and Administrative Services Committee, 11/27/2001, Page 3
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Dawson moved to recommend approval.
Hoag stated this item is different than the others. The Whatcom County
Parks and Recreation Department owns this. She questioned why they want to get
rid of the property.
Barbara Cory, Treasurer, stated this is about a request from Mr. Graham to
put in a sewer or drain field that goes across Parks Department property, as
required by the Health and Human Services Department. Mr. Graham began
negotiating with the Parks Department because the Health Department required it.
That is why there is a request to sell this property to Mr. Graham. It is to
accommodate his store.
Hoag questioned whether the County could just provide an easement.
Imhof stated this is a Parks Department issue. Councilmember Hoag should
get those answers from Mr. DeSpain between now and the date of the hearing.
Motion carried unanimously.
4. RESOLUTION SETTING HEARING DATE AND NOTICE OF HEARING ON
SALE OF COUNTY TAX TITLE PROPERTY, REQUEST NO. 06 -01
(AB2001 -381)
Dawson moved to recommend approval.
Motion carried unanimously.
5. RESOLUTION ORDERING THE CANCELLATION OF WARRANTS MORE
THAN A YEAR OLD (AB2001 -382)
Dawson moved to recommend approval.
Motion carried unanimously.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT (JAIBG)
CONTRACT BETWEEN WHATCOM COUNTY AND THE DEPARTMENT OF
SOCIAL AND HEALTH SERVICES (DSHS) TO PROVIDE FOR
ADDITIONAL COURT COMMISSIONER AND DEPUTY COURT CLERK
STAFFING TO EXPEDITE JUVENILE OFFENDER CASE PROCESSING, IN
THE AMOUNT OF $58,923 (AB2001 -383)
Dawson moved to recommend approval.
Crawford asked where the money comes from.
Finance and Administrative Services Committee, 11/27/2001, Page 4
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Dewey Desler, Deputy Administrator, stated the money comes from a State
Department of Social and Health Services (DSHS) annual grant.
Motion carried unanimously.
7. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY HEALTH AND HUMAN
SERVICES DEPARTMENT AND THE DEPARTMENT OF SOCIAL AND
HEALTH SERVICES (DSHS) DEPARTMENT OF ALCOHOL AND
SUBSTANCE ABUSE (DASA) TO PROVIDE REVENUE FOR OUTPATIENT
SUBSTANCE ABUSE SERVICES, IN THE CONTRACT AMOUNT OF
$2,415,551 (AB2001 -384)
Crawford moved to recommend approval. The Governor asked for a 15
percent budget cut, and the State Department of Social and Health Services
(DSHS) asked for a 30 percent cut in day programs. He asked if cuts are proposed
for this.
Andy Byrne, Human Services Manager, stated yes. The DSHS made
recommendations to the Governor about how they would make their cuts. Within
the Division of Alcohol and Substance Abuse, several reductions are proposed. The
only one that affects Whatcom County totals $18,668. This is a contract
amendment to a current contract. It adds $192,000, with the likelihood that DSHS
will want $18,000 back.
Motion carried unanimously.
8. REQUEST AUTHORIZATION FOR THE EXECUTIVE, ON BEHALF OF
WRIA 1, TO ENTER INTO A LEAD ENTITY GRANT BETWEEN WHATCOM
COUNTY AND THE WASHINGTON STATE DEPARTMENT OF FISH AND
WILDLIFE TO FUND CORE SALMON RECOVERY FUNCTIONS, IN THE
AMOUNT OF $65,000 (AB2001 -385)
Dawson moved to recommend approval.
Crawford stated this is fully funded by the State Department of Fish and
Wildlife (WDFW).
Hoag stated the copy of the agreement mentioned that the money was
delayed in coming through. One item on packet page 149, is a modification of the
habitat project list. She questioned whether the County, as the lead entity, cannot
change the list or else it will lose its contract as the lead entity.
John Thompson, Resources Planner /Endangered Species Act, stated WDFW is
trying to assure that the citizens committee is going to have meaningful input into
establishing the list. The statute says that a committee of representative interests
will determine the list. The WDFW is concerned about a committee of the County
Council unilaterally changing the list. The process the County built involves
Finance and Administrative Services Committee, 11/27/2001, Page 5
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technical review, and then the citizen committee review and ranking. The County,
as the lead entity, reviews the list for the Joint Board to be sure that the process
has been followed. They are building accountability into the process by having
technical and citizen review.
Hoag asked if this language allows the County Council to send something
back to the committee asking for a change. Thompson stated that is the process.
Motion carried unanimously.
9. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
AGREEMENT AMENDMENT BETWEEN WHATCOM COUNTY PUBLIC
WORKS AND NORTHWEST SURVEYING & GPS (NWS) FOR
FORESEEABLE SURVEYING SERVICES FOR RIVER AND FLOOD
DIVISION PROJECTS THROUGH THE END OF 2002, IN THE AMENDED
AMOUNT OF $75,000, FOR A TOTAL AMENDED AMOUNT OF $150,000
(AB2001 -386)
Imhof moved to recommend approval. It is an extension of an existing
agreement.
Dawson asked how they pick the surveyor.
Paula Cooper, Engineering Manager /River and Flood, stated this item and the
next item are almost identical, except they are with two different surveying firms.
The Public Works Department divvied up the workload between the two firms to be
more efficient.
Motion carried unanimously.
10. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
AGREEMENT AMENDMENT BETWEEN WHATCOM COUNTY PUBLIC
WORKS AND PACIFIC SURVEYING & ENGINEERING SERVICES, INC.
(PSE) FOR FORESEEABLE SURVEYING SERVICES FOR RIVER AND
FLOOD DIVISION PROJECTS THROUGH THE END OF 2002, IN THE
AMENDED AMOUNT OF $75,000, FOR A TOTAL AMENDED AMOUNT OF
$150,000 (AB2001 -387)
Imhof moved to recommend approval.
Motion carried unanimously.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated that the Port of Bellingham and
BP Refining can obtain tax exempt financing for environmental facilities that they
would like to install at the refinery if the County approves. It would significantly
Finance and Administrative Services Committee, 11/27/2001, Page 6
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lower their cost of borrowing, and would allow these projects to go forward. This
project would take advantage of industrial development revenue bonds. It requires
the County Council to ultimately approve these, as the planning jurisdiction. There
is no obligation to the County. The administration will submit a resolution in
support of this project at the December 11, 2001 County Council meeting. The
deadline is the end of this year.
Imhof asked the benefit to the County's tax status. Desler stated it doesn't
affect County's tax funds. It affects federal tax funds.
Imhof stated they want to make sure this doesn't cost the County.
Desler stated there were technical corrections to the budget on November 6,
2001 that included one -time capital projects, which they don't anticipate finishing
before the end of the year. The projects mostly have to do with roof or window
issues. In some cases, bids came in too high, or they are still negotiating the
approach for professional services. A total amount of $350,000 to $400,000 in
projects that will lapse at the end of the year. The administration will come back to
the Council with those same projects in 2002. Another option is to force the
projects through this year, but it didn't seem prudent to do that.
A third issue is that the administration will need the Council's help to monitor
changes in funding that occurs at the State level. There are significant issues
occurring due to the slow -down in the economy. There are many proposals on the
table being discussed by the legislature and Governor. The County has an
administrative entity, and receives funding, authority, restrictions, and mandates
from the State legislature. If there are significant cuts in the State Department of
Social and Health Services (DSHS), for example, those people who received those
services end up at the County's doorstep. If the legislature cuts major sources of
revenue for things such as criminal justice or public health, then the County will
have to be a strong advocate for how this will affect the people of Whatcom County.
He is preparing a list of mandates that are onerous on Whatcom County
government.
Crawford stated the state should spend within its budget. The State cannot
cut programs and require the County to still carry on those programs. That is his
concern. If the State cuts a program, it needs to be clear to everyone that it was
the State that cut the program. He requested that the administration be proactive
in identifying areas in which the County will have no option and must provide the
service. That becomes an unfunded mandate. Budget cuts will occur unless there
is a dramatic change in the economy. Desler stated identifying those areas might
be possible regarding the Growth Management Act. In other cases, it is not
possible. The County is required to go to arbitration with the uniformed deputies.
The courts also have liability requirements on the County. Sometimes there is not
a direct connection between an act of the State legislature and Whatcom County
government. It is not going to be simple to say that if funding is cut, a
corresponding program will be cut.
Finance and Administrative Services Committee, 11/27/2001, Page 7
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Crawford stated the Whatcom Transportation Authority (WTA) decided a
couple of weeks ago to increase the sales tax by three - tenths of one percent.
Dawson stated it will go to the voters.
ADJOURN
The meeting adjourned at 12:44 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 Services Committee, 11/27/2001, Page 8