HomeMy WebLinkAboutFinance September 25 20011
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
September 25, 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
COMMITTEE DISCUSSION
1. 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)
Jeff Monsen, Public Works Director, stated the recommendation is to, until
they get a handle on the issue, assume that a daily rate adjustment now or in the
future is subject to change because of the 20 -year ferry plan. He summarized his
handout (on file). He analyzed the current rate structure and projected some
theoretical growth and usage by next year. He went through scenarios of rate
changes and looked at rate adjustments needed to cover the increasing operating
costs and to set aside a portion of the revenue for future capital expenditures.
The scenarios are for 25, 50, and 100 percent rate increases. Some
assumptions include passenger reduction due to increased rates. There are two
variables. One variable is holding the pedestrian charge at $1 or allowing
pedestrians to use the boat for free. He rounded the fares to even dollars. If they
maintain a fare of $1 for pedestrians, they need to grow the rate structure by
approximately 25 percent. If they want to allow pedestrians to ride for free, they
need a 50 percent increase. He suggested that there be a meeting on a recent
report on the 20 -year planning process with the community before finalizing a rate
increase. Also, get some questions and feedback from the Council and the
community about the factors that should be considered, and then narrow the
variables.
Crawford asked the current rate for a vehicle plus driver. Monsen stated that
rate is $3.
Crawford stated that if they raise the vehicle plus driver fare to $4, they
would raise the revenue by an additional $81,788. They also have the punch cards,
which would go up the same amount. He asked what a $1 increase would do to the
bottom line. Monsen stated the majority of the 25 percent increase is the dollar
increase. The total income change is from $500,000 to $700,000. There is an
Finance and Administrative Services, 9/25/2001, Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
added cost of $190,000 to $200,000, plus any money they want to generate to set
aside for capital costs.
Crawford stated the dollar increase would more than cover the expected
increases. They had anticipated that the total additional costs was around $.50.
The remainder would go to a reserve for future projects. That reserve is what
would pay for the items in the 20 -year plan report. The Lummi Island
Transportation Committee (LITC) chair was concerned about going forward with fee
change until they are further down the road with the planning process. They can
assume that with current rising costs and anticipated future increase of costs, it
would be wise to implement a fee increase now, and continue with the planning
process with the community to see where they are going to go with the fund
increase. He assumed that they need a funding increase.
Monsen stated the transportation committee feels that it needs a delay of a
month or two, not until the end of the planning process, to have a public meeting
about the rate increases.
Imhof asked if the rate increase would happen in the middle of this year or
the beginning of next year. Monsen stated it could happen at any time, but
typically it would begin January 1, 2002. The transportation committee is asking to
allow October to resolve the planning process, and allow November and December
for discussion of an interim rate increase.
Imhof stated make sure it is covered at the end of November through the
budget process.
Crawford stated he wanted to see the Council give administration direction
that a $1 rate increase, which is the most likely scenario, is what the Council is
willing to look at.
Imhof asked if a $1 increase would be just for cars or for everything.
Crawford stated it would be just for vehicles, not pedestrians. He is open to
explore alternatives to encourage more pedestrian use and less vehicle use.
Imhof stated the recommendation from the Public Works Department is to
hold the matter until after the transportation committee has a meeting. Monsen
stated that is the recommendation. He concurred with the $1 per vehicle rate
increase, and include a rate increase in the same percentage amount to overweight
vehicle classifications. That would begin to put $50,000 to $100,000 aside for
future decision - making.
Imhof agreed.
Dawson asked the last time there was a rate increase.
Finance and Administrative Services, 9/25/2001, Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Mary Green, ER &R Manager, stated 17 years ago was the previous rate
increase.
Imhof asked the difference between a vehicle /driver card and a vehicle /driver
pass. Monsen stated the card program is pay for 23 rides and get 25 rides. The
pass is for unlimited rides for $.25 each, with a fee of $160. In doing the analysis,
the cost is not dramatically different than a punch card, given the amount of rides
by pass users. October 24 is the tentative date of meeting on the island. He
invited councilmembers to attend.
Crawford stated residents believe that if the money were to be specifically
allocated for improvements and enhancements, there is not a concern by the
residents over a small increase. He encouraged fellow councilmembers to ride a
bike on the island.
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AUTHORIZING THE SHERIFF TO DEVELOP INMATE WORK
CREWS (AB2001 -308)
Dawson moved to recommend approval.
Imhof asked the cost.
Dewey Desler, Deputy Administrator, stated this covers an official ordinance
that is required under state law to be in effect if they are going to have work crews.
It authorizes, by law, participation in the program.
Crawford stated he assumed there are state regulations surrounding the
work crews. Desler stated their use is directed to government and nonprofit
industries. There is an insurance program for these people, similar to Labor &
Industries (L &I) insurance.
Crawford asked if there is a need to find things for these guys to do, or if
there is a lot of work for them to do. He asked if it is appropriate for the Council to
suggest that the sheriff work them in specific areas. Desler stated they might
discuss that during the budget process for this program. Look at their objectives
and activities. The cost of an eight- or nine - member crew working all year is about
$50,000 to $60,000.
Imhof suggested that they hold this item from approval until the evening
meeting, so they could get information from the Sheriff's Office.
Dawson withdrew her motion.
Nelson stated he would like an answer to the question of the percentage of
the crews funded from current expense, and what their goals and objectives are.
Finance and Administrative Services, 9/25/2001, Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
(Clerk's Note: Discussion continued below.)
2. ORDINANCE AMENDING THE 2001 BUDGET, REQUEST #9 (AB2001-
309)
Dewey Desler, Deputy Administrator, stated a substitute ordinance was
submitted to the Council the previous day. The administration wants to move
forward together with the Port of Bellingham, all cities in the county, and the
Economic Development Council (EDC) to prepare a comprehensive economic
development strategy. A portion of the Growth Management Act (GMA) relates to
economic development. The County received an $80,000 grant. Administration will
ask the Council to appropriate a total of $90,000 from the Rural Sales Tax
Development fund to support an effort with the Port, consultants, and County staff.
For the last quarter of this year to get the project going, the administration will
propose an arrangement with the Port to use this grant funding of $6,000 to
support that program in the last quarter of the year. The rest of the funding for
this project will occur in 2002, and the Council will see it in the 2002 budget.
The second item in the budget modification request is a grant that Juvenile
Services received for a program with the Dispute Resolution Center called "Healthy
Choices for Girls." The request represents funding for this program in 2001. The
remaining grant, about $50,000, would be for services in the first half of 2002.
Last, to comply with Council policy, appropriate $30,000 to begin support
and development of a program related to purchase of development rights.
Administration will bring the program to the Council for review and approval. They
hope to have it done as early as the beginning of 2002.
Imhof stated the first item commits $170,000 for economic planning. Desler
stated there is no commitment until the Council sees the 2002 budget. The larger
program will cost about $170,000. It is a joint effort with the Port and some of the
cities. They have received an economic development grant to get it started. The
rest of the cost will be presented to Council over the coming weeks.
Crawford stated the version of the ordinance in the packet listed more money
for the Healthy Choices program. Desler stated that is correct. Half of the cost
would be paid in 2001, and half would be paid in 2002. He felt it was appropriate
to just budget the amounts they need in 2001, and then include the 2002 costs in
the 2002 budget.
Crawford stated the amount for the Port in the previous ordinance was
$90,000. It is now $6,000. He asked if the $90,000 would be put off until next
year. Desler stated it would. They decided it was appropriate to develop the work
plans, interlocal agreements, and committee appointments before coming forward
to ask for appropriation.
Finance and Administrative Services, 9/25/2001, Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Crawford questioned the purchase of development rights (PDR) program. He
thought no grant money would be used on that. Desler stated there is not any
grant money for that. They have received grant money for other efforts related to
farmland preservation issues.
Crawford questioned the grant the County just received, and that was
discussed at the EDC. Desler stated that was an $80,000 grant. The
administration is asking to appropriate $6,000 now.
Crawford questioned where else the $30,000 for the PDR could come from.
Desler stated it could come from the General fund, donations, grants, or the
Conservation Futures fund. The administration recommends that it come from the
Conservation Futures fund.
Dawson moved to recommend approval of the substitute ordinance.
Motion carried unanimously.
Crawford asked if Councilmember Dawson still feels a need or concern to
designate a specific percentage of the Conservation Futures fund now that the
Council has an approved resolution and if the Council approves of hiring a
consultant. He questioned whether Councilmember Dawson would bring it up
again.
Dawson stated she is not satisfied with what they have done so far. It will be
difficult to turn down the Parks Department requests when they come forward.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND THE WASHINGTON
STATE DEPARTMENT OF ECOLOGY CONSERVATION CORPS,
COORDINATED BY THE NOOKSACK ENHANCEMENT ASSOCIATION
FOR SALMON RECOVERY ACTIVITIES THROUGHOUT THE COUNTY, IN
THE CONTRACT AMOUNT OF $50,000 (AB2001 -315)
Imhof moved to recommend approval.
Crawford asked if it is a budgeted item.
Jeff Monsen, Public Works Director, stated it is for this year. It has not been
budgeted yet for next year. The agreement date is effective October 1, 2001
through Sept. 30, 2002.
Crawford stated his concern is anticipating a potential deficit from 2002
expenditures and revenue. He asked if this is in the 2001 budget.
Finance and Administrative Services, 9/25/2001, Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Dewey Desler, Deputy Administrator, stated it is. A clause allows them to
terminate the agreement if there are not sufficient funds.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
GRANT AGREEMENT BETWEEN WHATCOM COUNTY PUBLIC WORKS
AND THE CITY OF BELLINGHAM TO PROVIDE FUNDS FOR THE JOINT
INSTALLATION AND MAINTENANCE OF A BENEFICIAL RE -USE
FACILITY FOR STREET WASTES IN THE CONTRACT AMOUNT OF
$150,000 (AB2001 -316)
Imhof stated he talked with the administration about this. There is a private
site that handles these materials in the county. It has been permitted and is
operational. He is not excited about spending this money when a site is already
available, especially without the Public Works Department getting an idea of what it
will cost to get rid of materials at this site.
Dewey Desler, Deputy Administrator, proposed scheduling this item on the
agenda for the next meeting. The administration will review the private operations
that exist, and compare them to projections needed for this program. The
administration would come back to the Council with a report.
Imhof agreed.
Nelson stated there is a concern of documented operational and maintenance
costs paid to the city.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY HEALTH AND THE HOME
PORT LEARNING CENTER TO PROVIDE ALTERNATIVE EDUCATION TO
YOUTH IN THE JUVENILE JUSTICE PROGRAM, IN THE CONTRACT
AMOUNT OF $63,000 (AB2001 -317)
Dawson moved to recommend approval.
Nelson asked what the increased vendor rate is, and if the increase is for five
percent.
Dewey Desler, Deputy Administrator, stated it is.
Nelson asked if this is a sole source contract. Desler stated is. It is a
continuing agreement.
Dave Reynolds, Division Administrator, stated that Homeport is a longtime
vendor with the Juvenile Services department for providing educational services for
youth. Previous costs were $60,000 annually. Based on increased costs to them,
Finance and Administrative Services, 9/25/2001, Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
he proposed to increase the cost to $63,000. There are documented cost
increases.
Dawson asked where the program is held. Reynolds stated the school is
along Astor Street. It is for kids under supervision of the Juvenile Service
department.
Nelson stated measure the costs cautiously. They could look at alternative
programs in the community. Reynolds stated the five percent is a modest increase
in light of the costs they've incurred. They serve 60 youth per year.
Crawford asked if this is the total financing. Reynolds stated it is. Homeport
also contracts with the Bellingham School District.
Dawson asked if kids get school credit. Reynolds stated they do. They can
also work toward a GED.
Imhof asked the success rate. Reynolds stated it is a good percentage.
Some may not return to public school, but may get a GED through the community
college.
Crawford asked how they do this for $1,000 per head, when the state
charges $6,000. Reynolds stated Homeport is efficient. They have additional funds
from the school district. It is not a full course like the schools.
Dawson asked the number of hours the students attend. Reynolds stated
students attend for six hours per day. Some kids are there a short while. Others
are there for a year or more. It depends on the need of the kids.
Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
GRANT AGREEMENT BETWEEN WHATCOM COUNTY JUVENILE
SERVICES DEPARTMENT AND THE WHATCOM COUNTY DISPUTE
RESOLUTION CENTER TO ADDRESS THE NEEDS OF YOUTHFUL
OFFENDERS AND HIGH -RISK GIRLS, IN THE GRANT AMOUNT OF
$50,000 (AB2001 -318)
(Clerk's Note: End of tape one, side A.)
Imhof moved to recommend approval. This is the new program.
Dewey Desler, Deputy Administrator, stated this is related to the budget item
they discussed.
Motion carried unanimously.
Finance and Administrative Services, 9/25/2001, Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. ORDINANCE AUTHORIZING THE SHERIFF TO DEVELOP INMATE WORK
CREWS (AB2001 -308)
(Clerk's Note: Continued from above.)
Imhof questioned whether the ordinance is to satisfy the Revised Code of
Washington (RCW) with the work crews that are already in place.
Dan Fitzgerald, Chief of Corrections, stated it is. The State Jail Industries
Board recommended that there be a local ordinance. The law says that the
legislative body of the County will set forth the parameters by which the work crews
are worked.
Nelson questioned the proportion of the total County budget that is used for
this program. Some funding is received from other agencies. Fitzgerald stated
there are six crews. Two crews work for the Whatcom County Parks Department.
There is no revenue coming in. One crew works for the Bellingham City Parks
Department and Bellingham Public Works Department. It is almost completely
funded. The daily rate is $250, which pays for the crew leader and equipment. The
Centennial Grant funds the rest of the crews. One crew is funded through the Road
fund.
(Clerk's Note: Imhof left the meeting.)
Desler stated most of the revenue comes from fees and contracts with the
City of Bellingham or the County Parks Department. There are some state grants
and Public Works Department contracts. Most of the money comes from tax
sources, but it is not the property tax or sales tax revenue that they normally think
of as being the discretionary funding from the Current Expense fund.
Dawson asked if there are other work crews for women, besides road work
crews. Fitzgerald stated work crews do landscaping on County grounds. One crew
plants trees for the Centennial Grant. Crews work for City Parks Department and
City Public Works Department. One crew picks up trash on county roads. In the
first quarter, that crew picked up 40,000 pounds of trash. Two crews work for the
Parks Department on trail maintenance. They do a number of odds and ends jobs
by contract or to reduce expenses in the jail.
OTHER BUSINESS
Dewey Desler, Deputy Administrator, stated the administration will come
forward this fall with a recommendation to do some finance shifts between funds.
Self- insurance covers about half of the County work force. They have experienced
in 2000 and 2001 some expensive expenses above generated revenues.
Administration gives each department an estimate of what they need to pay into
Finance and Administrative Services, 9/25/2001, Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
the self- insurance fund. Costs that have occurred to the fund have exceeded the
revenues budgeted for. The appropriate thing to do, rather than go back to all the
existing departments, is charge a one -time offset to that fund balance, and move
monies into the reserve account for health insurance. The numbers are too great
to ignore over time. The numbers may roughly be $600,000 that needs to be
transferred. Most will come out of the General fund, because that is where funding
for most of the employees are. The health insurance fund has been flat until very
recently. Employees and families experience expenses for medical, and the County
pays providers for the bill through third party, Regence Medical Group. More
recently, the administration started doing an analysis of what to expect from the
recent death of Deputy Herzog. With all issues of insurance, include the Law
Enforcement Officer /Firefighter (LEOFF) and Labor and Industries (L &I) insurance,
the County will have to request about $250,000 against the General fund to set up
an account. That is not a final figure. The County has purchased insurance that
covers excess amounts. The County only obligated for about $250,000, and is
insured for more. The most efficient way to handle this is to take a one -time
charge against the fund balance.
Crawford asked about extraordinary expenses surrounding the replacement
of the vehicle and other costs. Desler stated the Sheriff's Office and ER &R Division
are able to work that out. The number of vehicles they ordinarily lose in the
Sheriff's Office monthly is surprising. The County has budgeted costs for those
kinds of things.
Nelson asked if there has been policy discussion about high -speed chases.
Desler stated not yet.
Dawson asked the law for domestic violence cases. Desler stated one party
or another has to be arrested.
Dawson stated that leaves fewer options for an officer, unless the arrest can
be made another day. If someone is intoxicated, the other person could be
removed from the situation. There might be a confrontation between the officer
and the individual. It might be better to arrest the individual on another day. The
other family members could be removed. Desler stated there is not always an
arrest.
McShane asked if there has been a discussion of the impact of lengthy board
crossing times. Desler stated they can expect an impact, but are not sure if there
will be a significant impact. Some Canadian companies may seek to house
operations in the county to get away from the flow across the border. At the same
time, people may use Whatcom County as a playground instead of going to
beautiful British Columbia. They are required to rethink things the County
government does in terms of security of the county. He proposed that the
legislative and executive branches develop a strategic planning approach this spring
to address where the county needs to go in the coming months and years.
Finance and Administrative Services, 9/25/2001, Page 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Crawford stated as the EDC discussed this issue. There is a short -term
slump in local economy, but a long -term need for Canadians to have the U.S.
market open to them.
Desler stated the State of Washington's chief economist predicts that
Whatcom County will be very significantly impacted by the recent events, including
sales tax loss and other economics.
ADJOURN
The meeting adjourned at 1:08 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, 9/25/2001, Page 10