HomeMy WebLinkAboutFinance April 18 20001
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
April 18, 2000
The meeting was called to order at 12:00 p.m. by Committee Chair L. Ward
Nelson in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Also Present: Absent:
Sam Crawford None
Robert Imhof
DISCUSSION AND RECOMMENDATION TO COUNCIL
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO JOIN WHATCOM
LAND TRUST TO PURCHASE THE TIMBER RIGHTS FROM THE
GOODYEAR NELSON HARDWOOD LUMBER COMPANY, INC. UTILIZING
CONSERVATION FUTURE FUNDS NOT TO EXCEED $750,000, WITH
$500,000 BY AN ANONYMOUS DONOR FOR A TOTAL OF $1,250,000
(AB2000 -133A)
Imhof moved to recommend approval.
Hoag stated it isn't a good use of taxpayer's funds. A comment was made
that this is what the Conservation Futures Fund was for, but the ordinance didn't
deal with purchase of timber rights.
Nelson stated the intent of the public was to maintain the land's quality so
that future generations may enjoy it. Although the money is not going to purchase
the land, the intent of the law was for the enjoyment for the future. It is not going
to be enjoyed if it is clear cut.
Brenner stated she agreed with Nelson. The term 'conservation futures' is to
conserve the natural resources that people appreciate. They talked about this
when they did it. They talked about purchasing development rights and
easements, not just land.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY AND THE
CITY OF BLAINE IN ACCORDANCE WITH THE GROWTH MANAGEMENT
ACT (AB2000 -150)
Kraig Olason, Senior Planner, stated he wanted to withdraw this item. They
were contacted by Birch Bay Water and Sewer District regarding its desire to
include an additional policy on page three of the draft regarding annexation
Finance and Administrative Services Committee, 4/18/2000, Page 1
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planning. The reasoning is that the City of Blaine, the Birch Bay Water and Sewer
District, and the County discussed the issues on the Birch Point area regarding
service of water in that area. There is a dispute. Item C identifies policies that, if
the City is in compliance, would eliminate the option for the County to invoke the
Boundary Review Board for an annexation. The water district desires that policy. It
identified a need to make clear who would have jurisdiction in a specific area. They
are still working on this.
Hoag stated the amount the County loses in revenue when it does interlocal
agreements is mind boggling, particularly in the area of Blaine. There is a lot of
industry there. This will be the model that is used for that when annexation occurs.
On page 43 of the Council packet, it says the County will be reimbursed for several
items. The only thing the County will be reimbursed for is the percentage, which is
65 percent the first year, 35 percent the second year, five percent the third year,
and then nothing. Also, on page 11, item D says there will be reexamination of the
urban growth area (UGA) boundaries. She questioned why, and why they would
not contest anything with the Boundary Review Board.
Olason stated the purpose is to establish an understanding between the
County and cities regarding all issues that come up regarding annexation. The
items listed under item C on annexation planning are policies that spell out what
the County wants the cities to address prior to annexation. If the cities do that,
they would be in compliance. Blaine is a unique situation because they have
overlapping service boundaries that are not resolved. That specific policy, T2 -1, is
the policy that the water district wanted added to ensure that discussion took
places so, if there is no resolution, they wouldn't be in compliance and the County
can take them to the Boundary Review Board. Those are the checks that they meet
the goals.
Hoag stated they are giving the County away and are reducing the tax base.
She didn't support how the interlocals are being processed.
Imhof stated it is a state issue. The cities don't have to do anything. They
can annex land and walk away. That is the alternative the County has to work
with.
Nelson stated the County does not have the hammer.
Imhof stated they should put it in the Planning Committee if Councilmember
Hoag wants to deal with it. The item has been withdrawn.
Hoag stated the state doesn't set the percentages.
Imhof stated the cities don't have to give the County anything. The cities
can annex and not give the County anything, according to state law. The cities are
being generous by paying any percentage to the County.
Finance and Administrative Services Committee, 4/18/2000, Page 2
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Nelson stated in 1994 and 1995 the County worked out the annexation
policies by interlocal agreement with all the jurisdictions. They County fought long
and hard to get something. This issue isn't something that just came up.
Brenner stated the County doesn't like it this way.
Nelson stated the County got the best deal it could get.
Imhof stated the big cities in King County have more votes than Whatcom
County.
3. ORDINANCE AMENDING THE 2000 BUDGET, REQUEST NO. 4 (AB2000-
162)
Imhof moved to recommend approval.
Imhof questioned the total cost of the multi -use command vehicle and if it
was all funded by grants.
Deane Sandell, Undersheriff, stated three grants were identified. In addition,
the Equipment Revolve and Rental (ER &R) equity fund will also contribute the cost
of the vehicle that is technically being replaced. The cost totals about $145,000.
Brenner stated she didn't support the Economic Development Council (EDC)
funding. She also questioned the item about restoring the departments if the 1999
lapse exceeded the reduction.
Dewey Desler, Deputy Administrator, stated the term 'lapse' indicates the
amount left at the end of the year. In the fall, the administration asked the
departments to save as much as they could. If they saved that much or more, the
administration made a commitment to request a supplemental appropriation.
Brenner stated the money was sitting there anyway because they didn't use
it. She questioned what happened with I -695. It looks like the County was able to
deal with it without any hardship. Desler stated I -695 resulted in a loss of over
$1.5 million in revenue to the County. The legislature is currently discussing the
options to replace that funding.
Brenner stated the departments were able to work within the reduced budget
and still have money left over. Desler stated the administration recommended a
no- growth budget and then reduced that by one percent. The administration also
said that, if they were able to obtain savings in the lapse, they would request that
the money be reinstated in the 2000 budget.
Hoag stated she is opposed to giving the EDC $15,000. One reason is
because the Council has repeatedly asked the EDC to focus on expanding
businesses. That is what gives the county long -term gains in local employment.
Also, the EDC has taken credit for bringing businesses into the area that the EDC
Finance and Administrative Services Committee, 4/18/2000, Page 3
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had nothing to do with. She read their reports and has been watching what they
are doing. They have been lobbying the legislature to bring in the Sumas Energy
2 power plant even though the goal of the EDC is to bring in clean industry. The
EDC membership does not want the power plant, yet the leadership for the EDC is
saying the power plant is necessary. She talked to the EDC leadership many times
about the importance of supporting the local agricultural community. The EDC has
done nothing. Each time she brings it up, they say they are not focused on that
area. Their focus is supposed to bring in clean industry, but they are not doing that
either.
,Nelson _questioned the membership of the EDC and the EDC board
Fred Sexton, Economic Development Council Manager, stated the
membership is a little over 100. The majority is from the private sector. The
budget distribution is about 30 percent government, public money, and 70 percent
private sector money. The EDC focus is commercial and industrial, according to the
mission statement. Commercial industry could include agribusiness, but not
agriculture. They work on operations such as food processing operations.
Hoag stated she met with Mr. Sexton over two years ago. The plant they
discussed at that time is an industrial plant, yet there have been no efforts made.
Sexton questioned whether she asked about a process plant for dairy cows.
Hoag stated Mr. Sexton doesn't even remember their conversation. She
contacted him at least four times on this issue.
Sexton stated he didn't know what she expected. There is no need to get
into a debate, but she was supposed to provide him with information on some
process that she was familiar with. He never saw that information.
Crawford questioned whether the EDC initially invited NESCO into the County
to build a plant, or if the EDC has been responsive since NESCO expressed interest
in building a plant. Sexton stated the later.
Crawford questioned whether the EDC would be responsive in assisting an
organic milk plant in doing what it could if such a factory was to come in to the
County. Sexton stated the EDC would definitely be responsive.
Crawford stated he doesn't see the EDC out there trying to bring power
plants into Whatcom County. They are assisting the development. He is the
Council's representative on the EDC board. He is impressed with their efforts. He
doesn't know the history of why the County didn't fund the EDC this year, but he is
impressed with what they are trying to do. In terms of the potential return to the
County in tax dollars, the $15,000 investment seems minimal. He will continue to
give the Council feedback on how that goes this year as he attends board meetings
and becomes involved. He suspects that he may come back at budget time this
year with a request for additional funds beyond the $15,000. So far, from his
Finance and Administrative Services Committee, 4/18/2000, Page 4
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objectivity due to not being involved with this before, there are some positive
things going on with the EDC that he strongly supports.
Brenner stated she didn't consider a lack of knowledge as objectivity. She
has no vested interest one way or the other. She was a big supporter of the EDC
for many years when it was Fourth Corner Economic Development. The EDC
mission is to go out and solicit companies and good, clean industry to come to
Whatcom County. She has a problem with the EDC management. There are some
issues about the direction and leadership. She is very concerned about it and can't
support the $15,000.
McShane stated he has no concerns about spending $15,000 on economic
development. It is important and necessary. He is not sure that some of the jobs
the EDC has brought into the community are all that good for the community.
There are certainly some benefits to the members of the Economic Development
Council who would benefit from development. There is nothing wrong with
members trying to do economic development as a group. He was concerned that,
as the County government, they are subsidizing a program that is beneficial to
individual property owners' development interests in the county. He would like to
see what they would do specifically with that $15,000, rather than putting it into a
general fund for maintaining operations. Ideally, the EDC would be able to stand
on its own without a government subsidy, and then be an entity that would do
something that isn't necessarily in the membership's best interest but would be
beneficial to the community as a whole. That isn't happening with the EDC right
now. He encouraged Mr. Sexton to come up with programs that would land the
better jobs that aren't going to be a tax drain, otherwise there will be a split
decision on future funding. Some of the jobs the EDC has landed in the last few
years are probably a tax drain on the community. Eight dollar per hour jobs are
not going to make it. The County needs to have jobs that pay around $45,000 per
year. He didn't know if the County government should fund efforts that go for jobs
that are less than that. It is not good for the county. Jobs are great, but the
county needs the good ones.
Nelson stated he voted against funding in the past. The concern is well put.
They have an economy -based county. All counties have an economy and a
necessary desire to flourish economically. There are restrictions that are
sometimes out of a county's control. State law and federal actions put on those
restrictions. There is an ability to grow and prosper within the guidelines. All
counties throughout the United States would like to draw $40 per hour jobs into
their communities. Those businesses know they are attractive and can always pull
in the counties that are willing to give up the most. That is what they've seen in
the state legislature with its sales tax relief, allocation of water resources, and
allocation of power resources. There are limitations to what the EDC will be able to
do. He is hearing that the Council wants more information regarding the impacts
they have, what the EDC is trying to attract, and the direction the EDC is going.
The Council wants the EDC to listen to the Council's input on what it feels the EDC
should focus on. If the County is going to contribute $15,000, it should have a
Finance and Administrative Services Committee, 4/18/2000, Page 5
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voice. Councilmember Crawford will hopefully represent that concern at the EDC
board meetings, and then report back to the County Council.
Crawford questioned whether the EDC runs at the pleasure and direction of
the board. Sexton stated that is correct.
Crawford stated the board members include representatives from the
Bellingham Herald, Puget Sound Energy, and Western Washington University. It is
a very diverse group of people. He had no sense that it was a group of landowners
that would benefit from the EDC.
McShane stated his bias comes from the fact that his company thought about
joining the EDC and saw it as a potential economic benefit to get on development
projects. For a variety of reasons, his company chose not to pursue that
membership, partly because of his political involvement. He sees it as an
opportunity for those who make a substantial living off of growth and development.
Hoag stated the farmers in the area have been asking for an organic milk
processor for years. The closest ones are in Idaho and Montana. The County's
farmers can make up to $.25 more per gallon if the milk is processed organically.
Darigold can't do it because it requires a separate processing facility. She
discussed this with Mr. Sexton. She sent the information Mr. Sexton asked for. Mr.
Sexton told her he would check out leads. She has not heard another word from
him, even though she repeatedly asked him about it.
Siscosoft is a company in Lynden who is headed by a friend of hers. That
friend told her that the EDC listed Siscosoft as a company they attracted to the
area. That friend told her he had no contact with the EDC and came to this area
because of the Christian schools and quality of life for his family. That friend was
offended that the EDC listed him as one of the companies it brought into the
county.
In terms of being able to attract the attractive industries that everyone
wants, they have to have the quality of life. Hewlitt- Packard looked at locating in
Atlanta, but decided not to due to the traffic congestion. If industries are brought
in that hurt the quality of life in Whatcom County, it hurts their chances to attract
the kind of industry they really would like to have. The EDC has a nice sounding
name, and it sounds like it works on economic development, but it is not doing
economic development. There are a number of existing groups and agencies in
Whatcom County that are performing the functions that this group claims to
perform, without County funds. The County should not subsidize the EDC because
the EDC is not listening to the Council's directives.
Sexton stated that the EDC has two ways of operating. One is proactive and
the other is reactive. The EDC reacts to any kind of inquiry they get. The EDC
provides information and makes referrals. On the proactive side, the EDC is after
the high - paying, clean industry jobs. They are beginning a major marketing
campaign that will include six months of advertising in the Puget Sound Business
Finance and Administrative Services Committee, 4/18/2000, Page 6
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Journal. It will involve the new website, high impact brochures, and web mail
directed to the clean, high - paying industry of software and internet -based
companies. If a warehouse company wants to locate in Whatcom County and
contacts the EDC, then the EDC will respond. They try to accommodate and show
there is a positive business concern.
Brenner stated it bothers her that the County would support the EDC at all.
She didn't see the Council's job as doing that. It becomes corporate welfare.
These are multi - billion dollar corporations. For any of those to be attracted, it is
quality of life that will bring them here. Anytime they can get a free ride, they will
do it. The County government should not be in the business of giving a free ride.
It should be in the business of setting a healthy environmental climate for economic
development. The businesses will come here. More businesses don't locate here
because they feel Whatcom County is unpredictable in what it does.
Nelson stated a small company started out in two houses making backpacks
when he sat on the board years ago. The County funded them then.
Brenner stated that is when the EDC was Fourth Corner. It did a good job.
Nelson stated that, as a result of the County's funding, there is a company
that has expanded. It is a large corporation that operates worldwide. It has a
payroll that goes to citizens in this county. The alternative to corporate welfare is
public welfare. The perception is that, one way or the other, services are going to
be provided. Everyone wants a quality of life. They need to have the EDC tell the
Council what the companies need to locate here. The County would then provide to
the EDC what the constituents need. If there are other avenues, the Council can
look at that and explore them. To say that the EDC is just to bring in large
corporations for high - paying jobs, it isn't a positive approach for them or
government.
Brenner stated she sees the EDC moving in a direction she doesn't support.
Motion to recommend approval of the budget carried unanimously.
4. RECEIPT OF INFORMATION REGARDING ELIGIBILITY
REQUIREMENTS OF THE PUBLIC EMPLOYEE'S RETIREMENT SYSTEM
(AB2000 -145)
Dewey Desler, Deputy Administrator, stated he submitted information on
March 16 and April 11.
Brenner stated she has been meeting with Desler on this issue. Until the last
year, councilmembers were told they were not eligible for the Public Employees
Retirement System (PERS). However, they have been eligible. They need to
recommend that the administration reinstate the councilmembers' ability to be part
of the pension plan.
Finance and Administrative Services Committee, 4/18/2000, Page 7
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Nelson stated the administration requests from the Council to maintain its
desire to participate in the PERS system for current and previous terms. Following
that determination, the Council will request from the administration to submit a
supplemental budget that calculates the employer costs. The administration will
assist the councilmembers in tracking their Department of Retirement Systems
(DRS) payments to schedule repayment of those dues. The direction from the full
Council would be to request that the administration determine the method and
mechanism to schedule repayments for the councilmembers' benefits.
Desler stated that is correct. Because it is a councilmember's individual
decision, each councilmember needs to decide whether to become a part of the
system.
Imhof stated the process would be to find out the information on the amount
and bring forward a budget amendment. At that time, the Council will have the
information and can discuss it.
Imhof moved to request that the administration call PERS to determine the
amount, and bring back the amount as a supplemental.
Hoag stated the first step is to find out what the cost would be for each
councilmember, and let each councilmember decide if he or she wants to opt in or
opt out.
Brenner stated the question now is whether to support being fair to the
councilmembers. The administration will come up with the numbers. The
councilmembers were not given an opportunity to take part in a benefit the
councilmembers were eligible for.
Nelson restated the motion that the committee recommends to the Council to
direct administration to bring forward the amount needed to reinstate the
councilmembers' full benefits.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #00-
31 TO THE APPROPRIATE LOWEST RESPONSIVE BIDDER, BASED ON
JOB LOCATION, DISTANCE FROM PLANT AND PRODUCT
AVAILABILITY, TO SUPPLY ASPHALTIC MIXES FOR COUNTY ROAD
PROJECTS IN AN APPROXIMATE TOTAL AMOUNT OF $375,000
(AB2000 -165)
Imhof moved to recommend approval.
Brenner questioned whether this has anything to do with Sunrise.
Finance and Administrative Services Committee, 4/18/2000, Page 8
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Dick Prieve, Assistant Director - Maintenance and Operations, stated it does
not have anything to do with that. This is for patching streets. They will be back in
two weeks with contracts for pre - leveling.
Nelson asked to do it all in one package.
Prieve stated it adds clarity to separate the items, but he will try to bring the
items together at the same time.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
THREE -YEAR AGREEMENT BETWEEN WHATCOM COUNTY AND
GENERAL TEAMSTERS LOCAL UNION NO. 231 RENEWING THE
CORRECTIONS OFFICERS AND COOKS COLLECTIVE BARGAINING
AGREEMENT (AB2000 -166)
Imhof moved to recommend approval.
Wendy Wefer - Clinton, Associate Human Resources Manager, stated it is a
three -year agreement, not two -year, agreement.
Motion carried unanimously.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AMENDMENT BETWEEN WHATCOM COUNTY AND THE
JUVENILE REHABILITATION ADMINISTRATION DEPARTMENT OF
SOCIAL AND HEALTH SERVICES TO PROVIDE FUNDS FOR SEVEN
DISTINCT PROGRAMS AND THREE SERVICES UNDER THE DIRECTION
OF WHATCOM COUNTY JUVENILE SERVICES DEPARTMENT (AB2000-
167)
(Clerk's Note: End of tape one, side A.)
Imhof moved to recommend approval.
Nelson asked if they are ongoing programs.
Steve Paus, Juvenile Division Administrator, stated they are ongoing. They
have been receiving money since about 1984. This is a biennium allocation.
Nelson asked if there has been any change in the amount of funding from
last year.
Imhof stated page 113 shows the increases.
Nelson stated they are working on the one allocation to the year 2001.
Finance and Administrative Services Committee, 4/18/2000, Page 9
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Motion carried unanimously.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT BETWEEN WHATCOM COUNTY AND NORTHWEST
WASHINGTON MEDICAL BUREAU FOR THIRD PARTY
ADMINISTRATION OF SELF - INSURED MEDICAL PLAN, IN THE YEAR
2000, PROJECTED AMOUNT OF $103,736 (AB2000 -168)
Imhof moved to recommend approval.
Brenner stated a good time for the Council to do something is when it
authorizes a contract. Northwest Washington Medical Bureau is terrible to deal
with. It has plenty of money and have not increased its customer service. It has
already been put on notice by the state Insurance Commissioner's Office that it is
being watched. A letter should go from the County Council, who does a lot of
business with it, to measurably increase service quality.
Nelson agreed, but it is common throughout the insurance industry.
Brenner stated she would write a letter.
Imhof stated he didn't think the bureau had a lot of money.
Motion carried unanimously.
Dewey Desler, Deputy Administrator, stated this was the lowest and best bid.
Negotiations have gone on to structure the appropriate plan for the County's
employees.
Imhof questioned the number of bids that came in.
Desler stated three bids were received, but they narrowed it down to two
responsive bidders.
Nelson stated Group Health and Northwest Medical Bureau cover about 80
percent of the County's population.
OTHER ITEMS
Dewey Desler, Deputy Administrator, stated law and justice planning has
been under way for a couple of months. The next phase report will come in the
middle of May. He asked that the Council discuss the issues with the consultants.
Nelson stated they would schedule a time on May 16.
Desler stated the staff and administration are organizing a strategic planning
session for this year. They want to do it on May 9. It is an off - council meeting day.
Finance and Administrative Services Committee, 4/18/2000, Page 10
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The draft agenda will review the work done so far and focus on key issues next
year. It would be scheduled from 9:00 a.m. to 2:00 p.m.
Also, he proposed the morning if June 20 as the date for the budget retreat.
Nelson stated those dates can be worked out with the Council chair.
Roland Middleton, Land Use Manager, stated the state Department of Health
(DOH) and Department of Ecology (DOE) met with him yesterday about a new
waterline to supply the contaminated wells out to Birch Bay. It will require some
land use permits, the fees of which are established by Council. The agencies want
to know if the Council will be amenable to waiving the fees. He is looking for a
straw vote by the Council to determine whether or not to work on the issue.
Nelson stated they would go ahead with it.
Brenner stated it is worth it.
Desler stated the small town mayors have asked the County to cooperate in
a project of laying fiber optic cable from Blaine across the northern portion of the
County and into British Columbia. It seems a natural way to build a pathway for
other fiber optic uses and other broadband uses for the northern tier of the county.
All the County would have to do is buy the conduit and pay for it to be laid down.
Nelson stated it is a good idea.
Desler stated he is trying to determine how to pay for it, and the extent to
which the County should participate in something like this with the cities.
Imhof questioned who is putting in the line. Desler stated the border patrol
is putting it in. It is a matter of buying and laying the conduit in.
Dawson suggested that this come from economic funds.
Brenner stated the County could pay it up front through an agreement, and
then get reimbursed from cable user fees in the future. Desler stated that is an
option.
Imhof agreed it was a good idea to take advantage of the opportunity.
Nelson asked if the County has to lease the conduit route. Desler stated they
wouldn't have to do that. The federal government told him that, if the County gave
them a letter, they would just be allowed to use the route.
Nelson asked the down side.
Imhof stated there is not a down size. It sounds like a Public Works project.
They have money.
Finance and Administrative Services Committee, 4/18/2000, Page 11
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ADJOURN
The meeting adjourned at 1:04 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
Dana Brown- Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
L. Ward Nelson, Committee Chair
Finance and Administrative Services Committee, 4/18/2000, Page 12