HomeMy WebLinkAboutFinance October 10 20001
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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
October 10, 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:
Sam Crawford
Robert Imhof
Absent:
None
COMMITTEE DISCUSSION AND RECOMMENDATION TO COUNCIL
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #00-
93 TO THE LOWEST RESPONSIVE BIDDER, KENWORTH NW, TO
PURCHASE A REPLACEMENT TEN -YARD DUMP TRUCK FOR USE BY
WHATCOM COUNTY PUBLIC WORKS ER &R IN THE AMOUNT OF
$109,930.68 (AB2000 -329)
Dick Prieve, Assistant Director of Administration, submitted a memo (on file)
that was a supplemental memo to the first memo he wrote the previous day. He
answered Councilmember Brenner's questions in the first memo. One of the
questions had to do with overtime of the ten -yard dump truck. In 1999, the
County spent $47,000. Through September 2000, the County has spent $38,000.
The County's standard policy is to open a road as soon as possible, for the
convenience of the public. They will spend the overtime. The majority of the
overtime spent is because of the convenience of the public and trying to service the
public. Another part of the cost is winter ice and snow. The department spends
time on weekends and nights on ice. Most overtime is for the citizen convenience
and snow and ice removal.
Rental rates are for all equipment, not just the truck, that they rent in the
Public Works Department. The amount they've spent on truck rental exclusively in
1999 is $41,000. This year, they've spent $11,000. Much of the work with the
truck is flood work in the river. They were renting some of Sorenson's trucks last
week.
Nelson asked if truck rental includes a driver. Prieve stated it does include a
driver. Fifteen contractors submitted bids for the 1999 -2000 contract. The rates
are for the maintenance and rental for ten -yard, three -axle dump trucks, with
operator. The hourly rates range from a low of $57 to a high of $61 per hour with
an operator. The average cost is $59.37. His department has a rental rate of
$45.77 currently. The rental rate, which has stayed the same, is $19 for the truck,
and the labor charge is the remainder. The average rate is for all truck drivers in
one group plus the overhead. Also, he wrote a summary of work they contracted
out from 1994 through September 2000. This is not for engineering work and not
Finance and Administrative Service Committee, 10/10/2000, Page 1
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for materials. In 1994, they began with $250,000. The amount for 2000, through
September, is $1.5 million. They will always have ways to partner with the private
industry. This is all maintenance and operations (M &O), and has nothing to do with
flood.
Nelson asked why the amount is so high this year. Prieve stated it is
Endangered Species Act (ESA) related. The M &O is helping out engineering
because they can't award some of the contracts, which are tied up. They have
taken advantage of that situation by instead doing some pre - level, overlay, and
asphalt contract work.
Nelson stated that in six years, the contract amount went from $250,000 to
$1.5 million.
Crawford asked how he arrived at the amount $45.77. Prieve stated that is
the rental rate they have for the trucks. It is $19 per hour for the truck. Every
double -axle ten -yard truck rented through the ER &R fund is $19. That fund is
enough to replace the trucks. It includes maintenance, upkeep, and gas for the
trucks.
Crawford stated the remainder of the $45.77 is for labor. He questioned
whether the $19 includes fuel. Prieve stated that it does. The private industry is
paying more for fuel because the County purchases its fuel ahead of time and has
contracts for it. There would be extra costs for their insurance. In addition, the
private industry would have mark up for profit.
Nelson asked how many vehicles they are currently using. Prieve stated they
are using ten vehicles.
Nelson asked if they use all the vehicles when there is a snowstorm. Prieve
stated they do. The ten -yard truck is the workhorse of the entire County fleet.
They are all equipped to mount sanders on the back and plows on the front. When
a storm comes in, they put side plows on.
Nelson asked if they ever contract out that service when there is a storm.
Prieve stated they contracted out for the last storm when they were expecting the
storm to come in. However, the City of Bellingham got to the contractor first. They
rented from another. Contractors are not equipped to haul plows. The County
does rent equipment in snow events. The County's primary purpose is to open the
arterial roads, but when it is blowing, it's difficult to keep roads clear.
Jaime Henifin, Henifin Construction, stated the last time he was at the
Finance Committee meeting, he was under the impression that the Council's
request of M &O was to give the breakdown of the cost of the truck, which is $19.
Every truck has a life span. One truck's lifespan is not the same as another. The
maintenance for the trucks are all different. The cost for one truck should be
different for the next truck. That was the information he was waiting to get.
Finance and Administrative Service Committee, 10/10/2000, Page 2
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Nelson stated $19 is the amount placed in the revolving fund for replacement
cost. All vehicles in the County have a revolving fund so the County doesn't have
to have a capital expenditure at the end of a vehicle's lifetime. There is a certain
amount that goes in for the replacement cost. That fund is maintained so the
County doesn't have to use tax revenues and resources to replace equipment.
Henifin asked how they know the true cost per hour to run a truck.
Brad Bennett, Finance Manager, stated the County groups related equipment
into pools, so the ten -yard dump trucks are all in one pool. For setting a rental
rate, they look at the group. As far as costing the different trucks out, a truck
number is charged with the amount of fuel and maintenance for each truck. It does
vary, but $19 is the average for that group.
Nelson stated some vehicles last longer than the life expectancy. Henifin
stated a truck cost shouldn't be thrown in with other equipment.
Nelson stated it is done individually as well.
Bennett stated all trucks are similarly grouped. They are not charging $19
per hour for a pickup truck. All pickup trucks are grouped together.
Crawford asked if any of these trucks have an hour meter, like excavation
equipment has. He questioned whether truck use is calculated using hours or
miles. For instance, they are saying a truck costs $110,000 and is worth $19 per
hour. That amounts to a life expectancy of 5,790 hours. Henifin stated each
company probably does it different for their maintenance schedules.
Dewey Desler, Deputy Administrator, stated that fuel and maintenance is
also built into that same charge. The expected lives of the trucks are more
substantial than 5,790 hours.
Nelson stated the issue is whether they are using the revolving fund for
replacement of the vehicle.
Crawford stated that if they have a $10 gap between what private industry
and the County say a truck costs, the question is whether the County is using
realistic estimates and if the private contractors can do it more cheaply.
Imhof stated the County went through a program with the Associated
General Contractors (AGC), the Public Works Department, and private companies to
work out a plan to contract a certain amount of work out and keep a certain
amount of work in -house for the other amount. They developed a work plan and
schedule for the people the County has. They adjusted the amount of equipment
needed for each crew to do a 12 -month program. Inside that program there is a
flexible schedule. The Council is looking at truck replacement. If the
councilmembers want to look at that program again, it needs to be brought forward
in a different form. They would need to bring the private industry and the AGC
Finance and Administrative Service Committee, 10/10/2000, Page 3
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back to the table. As it is now, the County has this program and need to keep it
going. He moved to recommend approval.
Henifin stated the County has ten plows. He asked why the County wouldn't
want to use local companies that pay the taxes.
Nelson stated he asked that question when they had the last snowstorm.
They couldn't get all the roads cleared in the week's time.
Henifin stated the County has ten plows and eleven trucks. There is a spare
truck in case a truck goes down.
Nelson stated all the trucks are equipped with plow capability.
Prieve stated the County has ten sanders. All the trucks are equipped for
plows. They also have road graders and front -end loaders. When there is a snow
event, everything is being used. The other two trucks are loaded with sand, but
don't have sanders to slide in the boxes.
Henifin questioned the number of plows the County has. Prieve stated the
County has 12 plows. They mount them all.
Nelson stated the County continues to contract out services. If there was a
snow event, the County would contract out services because it can't handle it all.
Other agencies are also utilizing the resources. The County needs to have a fine
balance between the private sector resources and in -house resources. They want
to make sure the County is not over -using the private funds and taking money
away from the private sector.
Crawford asked how the County could have a contract, and the contractor
not perform.
Imhof stated there is a roster of contractors, and the County finds whoever is
available.
Nelson stated the County may need to re- evaluate the number of equipment
it keeps, and they can do that. This discussion is regarding a particular bid. The
County already uses the private sector much more than it did in the past.
Crawford asked if the Kenworth dealer is in Whatcom County.
Mary Green, Equipment Revolve and Rental, stated it is.
Motion carried unanimously.
2. RESOLUTION AMENDING RESOLUTION 2000 -013 BY ADDING A
PROJECT TO THE PRIORITIZED LIST OF WHATCOM COUNTY
Finance and Administrative Service Committee, 10/10/2000, Page 4
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PROJECTS FOR THE WASHINGTON COMMUNITY ECONOMIC
REVITALIZATION TEAM (WA -CERT) (AB2000 -049A)
Nelson stated the project would be applied to the bottom of the list. He
moved to recommend approval.
Crawford questioned whether this application would be on the list next year
for ranking.
Nelson stated it would.
Motion carried unanimously.
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #00-
76 TO THE LOWEST RESPONSIVE BIDDER, BLYTHE PLUMBING &
HEATING, INC., FOR THE INSTALLATION OF REPLACEMENT HOT
WATER HEATERS IN THE PUBLIC SAFETY BUILDING FOR A TOTAL
AMOUNT OF $92,748.68 (AB2000 -352)
Imhof moved to recommend approval.
Crawford asked if the bids were broken down only to the bottom line, or if
they were more specific. There is a substantial difference.
Brad Bennett, Finance Manager, stated they weren't broken down more
specifically. The County has to look at the bottom line. The County's hands are
tied. It has to take the lowest responsive bidder.
Motion carried unanimously.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND THE
DEPARTMENT OF ECOLOGY /STATE OF WASHINGTON CONSERVATION
CORPS ON BEHALF OF THE NOOKSACK SALMON ENHANCEMENT
ASSOCIATION FOR WORK INCLUDING RIPARIAN NATIVE PLANT
ESTABLISHMENT, PLANT MAINTENANCE, ASSISTANCE WITH SALMON
STOCKS AND OTHER ASSOCIATED PROJECTS, IN THE AMOUNT OF
$50,000 (AB2000 -353)
Bruce Roll, Water Resources Manager, stated that during the June 20 work
session, he introduced a proposal for funding two crews, one for flood work and one
for the Nooksack Salmon Enhancement Agency (NSEA). On August 8, the Council
approved one proposal. This is the second crew for NSEA.
Finance and Administrative Service Committee, 10/10/2000, Page 5
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Nelson questioned whether the work was approved through the planning
process. Roll stated that it was.
Imhof moved to recommend approval.
Motion carried unanimously.
Crawford stated someone said the City of Bellingham Silver Beach group also
should be approved to apply to the entire watershed. Someone was concerned that
the city was trying to impose its requirements on the entire watershed. He asked if
the Management Committee discussed that. Roll stated the Silver Beach group is a
city- driven task force. John Watts is leading the charge. It was formed to address
water related issues in Silver Beach. It hasn't been brought to the
Interjurisdictional Coordinating Team (ICT). There is also a separate land
preservation ordinance and other things that are also city- driven to apply to the
entire watershed.
Nelson questioned whether they were seeking funding. Roll stated it was
through the $5 fee increase. He'd had questions from county people asking if it's
equitable for them to pay, since it's driven by the city. They are developing clear
criteria to apply across the board. They are also identifying options. Another
component is identifying the management strategies for implementing the criteria
and the options. The city ordinance enters while working on these other things. He
is trying to meld these as much as possible to preserve the land and develop joint
options for land preservation. There was a board that was created through the
ordinance for managing the process. That wasn't fully explored through the staff.
Hoag stated she keeps getting emails from the Washington State Association
of Counties asking for Whatcom County's estimated costs of what ESA would cost.
She found out the County addressed that months ago. She asked Roll to check into
the lack of communication there. Roll stated they were pursuing that. Monsen
filled out a survey and has been speaking with Olympia on that issue.
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
CONTRACT AMENDMENT BETWEEN WHATCOM COUNTY HEALTH AND
HUMAN SERVICES DEPARTMENT AND CASCADE VOCATIONAL
SERVICES — INDIVIDUAL EMPLOYMENT TO PROVIDE PLACEMENT
AND FOLLOW -UP SERVICES TO ASSIST PERSONS WITH
DEVELOPMENTAL DISABILITIES TO OBTAIN AND CONTINUE
EMPLOYMENT IN COMMUNITY SETTINGS, IN THE AMENDED AMOUNT
OF $6,606, FOR A TOTAL AMENDED CONTRACT AMOUNT OF $56,354
(AB2000 -354)
Nelson moved to recommend approval.
Imhof asked if this was to add two new people to the roster.
Finance and Administrative Service Committee, 10/10/2000, Page 6
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Chuck Benjamin, Health and Human Services Director, stated it adds two
people with disabilities for nine months.
Imhof asked if this is support for them while they are working. Benjamin
stated that if they are not working, it helps them find work and also provides a job
coach while working.
Nelson stated it means a lot to people with disabilities to have gainful
employment. This is an excellent program.
Benjamin stated it is good they are providers. He could arrange a tour for
the councilmembers.
Imhof asked how many people are involved. Benjamin stated he would
guess that 150 people are invovled.
Motion carried unanimously.
OTHER ITEMS
Hoag thanked Mr. Benjamin for his services and stated she was sorry to see
him go.
ADJOURN
The meeting adjourned at 12:32 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 Service Committee, 10/10/2000, Page 7