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HomeMy WebLinkAboutFinance October 24 2000 am1 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 PROPOSED 2001 WHATCOM COUNTY BUDGET October 24, 2000 The meeting was called to order at 9:00 a.m. by Committee Chair L. Ward Nelson in the Council Chambers, 311 Grand Avenue, Bellingham, Washington Also Present: Robert Imhof Sam Crawford Absent: None DISCUSSION OF THE COUNTY EXECUTIVE'S 2001 RECOMMENDED BUDGET (ADMINISTRATIVE SERVICES, HEALTH AND HUMAN SERVICES, PUBLIC WORKS) (AB2000 -363) Administrative Services Dewey Desler, Deputy Administrator, stated they made substantial progress on year 2000 goals. There are themes for next year. First, the administration proposes an investment in technology. Give employees improved tools to see increased productivity. Provide more efficient service to citizens. Make sure citizens can be served online rather than in line. There are significant challenges posed by the need to handle improved connectivity and communications inside the network. They propose changes on how to address that for the future. There are significant advances proposed in the next year or two in software for budget/ finance systems and criminal justice information system. Regarding the Facilities Management Division, there are significant issues with the current status of County buildings. There are problems with mechanical systems, heating /ventilation /air conditioning (HVAC), roofs, exterior skins, and some of the electrical systems. They will propose establishing a subset of the Administrative Services fund devoted to building repair and equipment fund. It would be a similar system to the one for the vehicles in the County. It would be a building replacement and repair fund to properly schedule maintenance, repair, and replacement. There are some significant adjustments to this budget regarding repair. Problems have been noted in the jail, which they need to fix next year. Much of it is one -time expense. They propose using the reserve fund balance for the changes. Regarding the Finance Division, the County budget document for 2000 was given a national award. It is the third year in a row that has occurred. The staff of that division should be complimented. They propose to improve some systems in Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 48 the County by acquiring some software that specially serves accounts receivable systems. Regarding the Human Resources Division, they've had difficulty with attracting, recruiting, and the retention of key employees throughout the County. The division will propose ways to handle the challenges of those problems without costing a great deal of money, yet would respond with a certain amount of creativity. There is not at this point any kind of budget projections to make. They will work with councilmembers over the next few months to address that. They are faced with the rising cost of health insurance. He is working with the Human Resources Division to try to stabilize those costs so they don't become burdensome on Whatcom County. He submitted a handout on the building replacement fund. They propose to set aside $778,000 in this year's budget to be the down payment on that fund. They would set the fund aside. They also intend to, over the next few years, add a certain charge per square footage to each department to cover building replacement. It is appropriate to allocate the cost of that effort to the parties that are using it. The various fund sources the County receives, which are increasingly from fees, delivering services, grants, and other external fund sources, can be properly charged for that expense in County government. It is a way to develop a regular and predictable method of addressing some of the ongoing problems that are below the surface, such as with heating and electrical. They will focus the attention on those systems so they don't deteriorate further. They will focus on this matter over the next couple of years. Nelson questioned whether Mr. Desler was referencing the Administrative Services Department objective to have continued development of the preventative maintenance repair program. Desler stated he was. Nelson stated he liked shorter objectives. Desler stated he could modify it to include the mission and scope. Nelson stated Mr. Desler talked about how to use current funding sources or the reserve fund to put money aside. Desler stated that was correct. Nelson asked if that was allocated in the budget. Desler stated it is. It is located in the non - departmental section. It comes out of the General fund and goes to the Administrative Services fund. They chose to use the vehicle of the non - department section. Nelson suggested that the administration explain that vehicle in the objective, so the councilmembers don't have to try to guess the source. Crawford questioned whether it is shown on pages 12 and 13, of volume II. Brad Bennett, Finance Manager, stated it is shown on page 880 of volume II. Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 Desler stated the fund balance for the entire County remains the same. They are beginning to establish the fund for significant adjustments and repair in County buildings. The County has 75 buildings that it owns and maintains. They are proposing to substantially address virtually all the key components of almost all of those buildings except the Parks Department buildings, which are in a separate budget. A few buildings are overseen by the Sheriff's Office. There are a few specific Road fund buildings. Dawson asked if they would continue to be operated out of their funds. Desler stated that is correct, but it would not preclude all of the buildings from coming into the fund in the future. They need to work more with department heads on handling it. Nelson stated it is an excellent idea. Desler stated he has four very capable managers and is very proud of their work. Crawford stated he was impressed with the Executive's Office this year. It has been responsive, concerned, and proactive in giving the councilmembers a head's up on upcoming issues. Nelson stated that, under administration, they mentioned enhancing training and service levels by providing more training opportunities. He questioned whether that is developed in accordance with a career pathway or goals. Desler stated they would focus on key areas of training, such as the enhanced use of technology. They want to give training to people who are showing promise and who could use improved training and management skills, coaching, and other things such as employee performance evaluations. Nelson stated that the focus is on job skills rather than changes in goals. Desler stated that in addition to technology and management skills, they will give people the capability to serve performance evaluations as a tool to improve peoples' performance. They propose establishing a deliberate effort focused around setting performance targets and working with department heads to understand how to lay out results- oriented information and place them into objectives that would allow councilmembers and department leadership to measure the performance of their operations. They could tie the department to actual information recorded on a regular basis. This was called for in the strategic planning process. The budget has $12,000 to initiate that training process this next year. He would work with the Council Finance Committee specifically on the elements of that effort. Nelson stated they allocated $12,000 for the project, but they have not approved the funding. Desler stated it is already in the budget. Nelson suggested that the objectives list that the money is allocated and the location of the resources. If there is a new project and objective, then indicate whether it is done with current funding sources or additional funding is requested. Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 48 Nelson referenced providing training for Facilities Management staff on emergency response procedures under the Facilities Management objectives. He questioned whether a protocol has been established for all departments. Desler stated yes. Nelson stated that the objective to continue achieving the Government Finance Officer's Association Distinguished Budget Presentation Award for the annual budget is a good idea to have. He asked what specifically they are doing next year to achieve that objective. Bennett stated that one submits the budget document, and there are volunteer finance officers throughout the country. Every year, they distribute to three different individuals who use a checklist of criteria. Every year, the County gets reviewer notes about how to make improvements. Because they are always being reviewed by different people, they are always getting different perspectives. To accomplish the objectives, he would study the reviewers' notes thoroughly and try to change the document to address the issues they've raised. When the organization changes, they have to make the changes in the document that reflect the changes in the organization. Nelson asked who is guiding the budget review process, the administration and the Council or this review team, who is not part of the County. Bennett stated the review criteria has required and optional features. He decides with the Executive's Office how to meet the criteria. The County is directing the document formation and how it all comes together, and at the same time they are keeping an eye on how to meet the criteria for the program. It is a good program. Whatcom County has grown a lot just reviewing the proposed criteria that are based on the budget as a communication device, as an organizational plan, and as a control document. There are different ways to look at the budget. Imhof stated it is a different document from eleven years ago. Desler stated it is an opportunity to make continuous improvements in the budget document as it is used for presentation and also management. They will have control of how to handle the resources. This organization has the best and brightest minds to build public entity budgets and reporting documents. He is proud that they've considered Whatcom County's efforts to be successful. He would use their objectives and criteria deliberately. Nelson asked when they plan to implement an organizational wide accounts receivable system. Bennett stated they hope to do that next year. Desler stated he hoped to order it this year. Imhof asked if it is the JD Edwards module. Desler stated it is. Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 Imhof stated he was reviewing the additional requests from the Administrative Services Department and its focus on catching up on the deferred maintenance on buildings. The County has 75 buildings. By looking through the document, they have deferred maintenance. It is time to catch up. Make sure there is a system in place that continues. Desler stated one effort for next year is to actively assess each piece of equipment they have and put them on an inventory list and a program to measure current status, problems, and what needs to be done to bring the assets up to manufacturing specifications. They would estimate the useful life and maintenance schedule. They would have it as a mechanism for monitoring and management for all the systems. There are many systems in the County buildings. It will also be used as a budget mechanism. They will make the estimates, after the assessment is done, in terms of what they project as replacement costs and maintenance costs. They would also have a status on each expenditure made on each piece of equipment so they can monitor what it is costing the County compared to what the County initially paid for it. No one has done that before. It is a high property effort so they don't come back to ask for money to fix something that is broken. They want to count on the systems working as they are supposed to. Nelson stated they also want to develop standardized contracts. Desler stated they often look at multiple contract documents. Many people prepare contracts, which filter up to the Council for review and approval. There is an effort to determine the standard language in all contracts. They used the computer to build that language into a package that allows each individual to prepare a contract by selecting the pre- written contract language needed. It would provide consistency, accuracy, and the best possible legal language. Material would come to the councilmembers in the form of a summery document in the packet. When the Prosecutor reviews the contract, if there are any changes, there would be a strikeout version from the Prosecuting Attorney's Office that the Council would see online. It is called the Contract Creator, developed by Debbie Adelstein and Dave Grant. It is going to increase productivity a lot. It would focus on the scope of work and the budget, which are the key elements in the contract. The next phase is to do the same thing with requests for proposals (RFP's). Nelson asked if there is adequate funding to implement. Desler stated yes. They are doing it within existing resources. Nelson stated they want to coordinate County grant efforts. There wasn't information on what they are going to do with that. He questioned whether there is a goal they are trying to reach with the grants. He questioned how to decide which grants to do. Desler stated this is a new effort. The County had a decentralized approach in the past for how to prepare and apply for grants. At the Council's request and consistent with the strategic plan, the administration proposed a modest effort to seek state, federal, and foundation grants to assist with the implementation of some of the objectives laid out in the strategic plan. Grant efforts will be focused on implementing those objectives the Council approved in Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 the strategic plan for the County, and any plans proposed and approved by the Council, such as the Six -Year Road Plan or Capital Improvement Plan. The administration will seek first to acquire grants and assistance for those kinds of documents that the Council approved. They began the effort in July. They've laid out objectives for that. After three months, they are already submitting grant applications and experiencing some success. There are potential grants in the area of law and justice. They will submit grants for the Water Resources Division and other Public Works Department projects. A grant developed six years ago for housing. The administration is proposing to carry on a new program that would bring in about $750,000 to assist low and moderate income families to purchase homes. These are funds from the Department of Housing and Urban Development (HUD). Nelson asked about the Human Resources Division objective to make changes to administrative personnel policies and procedures. He questioned when that would be done. Karen Sterling - Goens, Human Resources Division Manager, stated it is a three to five year project. They've trained 85 county employees in a new approach to writing policies and procedures. The training helped them to look at and improve the work processes. The people who do the work write up the procedures. They've asked if they are adequately using technology in the processes. They will see that item for a couple of years. The goal is to get these online. Nelson suggested giving an update in the objectives each year. They've also said that they want to strengthen County management and operations through organizational development opportunities. Sterling -Goens stated that they work with departments to fill vacancies and create promotional opportunities to keep staffing in place. The Human Resources Division gets more involved in key leadership positions. Nelson stated they should assess all department positions countywide with goals and objectives regarding what they are trying to accomplish to meet needs. Sterling -Goens stated they can't do it all at once, so they use a vacancy to do it. Other training that was done was to focus on providing customer training service. Crawford stated there is an additional service request (ASR) for the Facilities Maintenance technician for the mechanical systems. He understood that they've had a difficult time finding someone to do that. The salary seems a bit low. He questioned why they are having a hard time finding someone. Desler stated they are looking for an experienced journeyman level person. If they can't find someone at that level, they will come back to the Council. They think they can find someone. Sterling -Goens stated they've had some one -time funded positions. It's difficult recruiting for a position that ends at the end of the year. Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 Mike Russell, Facilities Management Supervisor, stated they are going to use the position to help with the preventative maintenance program. They are so far behind that it will take a year to catch up. They need a licensed technician to follow through. They are hoping the salary is enough. They've done a little research. They hope the benefits will attract someone. Nelson asked if they could contract the work. Russell stated a contract would be double or triple the price. (Clerk's Note: Imhof left the meeting at 9:45 a.m.) Crawford referenced ASR 2001 -406 regarding the window replacement on Girard Street. He questioned whether, in the long -term vision of what they do with the Olympic Building, this is an appropriate investment in this building, or whether this would be an opportunity to divest themselves of a building. Desler stated they feel strongly about the need to move forward with the master planning process that allows the Council to make those basic decisions about where they are going, where the buildings need to be, and which programs need to be in them. They need to continue to use, for the medium term, the Girard Street building. (Clerk's Note: End of tape one, side A.) Desler stated there has been so much deferred maintenance. They plan to do things to improve energy costs in the building. They plan to keep up to a certain standard to easily market the building. It is so close to the Civic Center area, they will continue to use it as a County building. There are more extensive things for other buildings that they opted not to do because they will wait until the Council makes a decision regarding the master facilities process. They propose not to do adjustments to the Forest Street building. Crawford asked if the jail is within Facilities Management purview. Desler stated yes. Crawford stated that, with the suicide this year and past incidences, there are eight or ten holding cells for high -risk people with mental health issues or who are intoxicated. Upstairs, there are about 20 beds available. The jail gets the high - risk people who have to be watched but it can't take any of those people because those cells are filled. However, there are 20 available beds upstairs. Recently, the jail people have told the law enforcement agencies that they would take medium risk people but not high -risk people. If this is a trend, some jail space could be converted into more of those high -risk holding areas. Desler stated they have to be careful to modify the existing building. It was built with certain requirements that make structural changes fairly expensive if they are not appropriate. The master planning process, an offshoot of which would be a specific geo- planning process, would answer that question about where they should allow for what types of prisoners in the future. The plan is to develop a minimum - security facility at another location in the county. It may allow for high -risk individuals. They don't have an extensive array of residential options for those people. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 7 1 2 Crawford stated that if they look at long -term medium security solutions out 3 of that facility, they are only going to widen that disparity. Simultaneously, they 4 are going to need to look at some modification of that facility to dedicate its use to 5 those situations. The concerns of jail workers are that they are stretched in that 6 capacity. Desler stated it is a tremendous problem. The jail was built for 148 7 people. They generally have 240 to 250 people in the jail. The administration is 8 proposing three additional jailers to assist with the safety and security of staff and 9 inmates. It doesn't do a lot by adding three people, but it is an initial first step. 10 11 Nelson stated they are working through that problem with the Criminal 12 Justice plan. Regarding the Information Services Division, they want to develop 13 and implement electronic business solutions to bring government to the citizens of 14 Whatcom County. He questioned whether they have the adequate resources, and 15 how they are going to do that. Desler stated they have a draft document they will 16 propose for the coming year. A representative from each department is on the 17 Computer and Technology Advisory Committee. They like working in the context of 18 written plans and objectives. When they have well developed, clearly focused plans 19 for what they want to do, then they will bring the plan before the Council to request 20 resources. This document today is reflective of the most current plan. There will 21 be others that they will propose, based on the implementation of other elements of 22 this document. At this point, the amounts proposed in the budget will carry them 23 forward in the next year. If they need to implement something more rapidly, they 24 will bring it forward. At this point, it is not developed enough to present to the 25 County Council for approval. 26 27 Nelson asked if there is no request for funding at this time for the objective 28 to develop and implement electronic business solutions to assist in bringing 29 government to the citizens of Whatcom County. Desler stated they are doing 30 things with Ezgov. They have adequate resources in the budget. 31 32 Crawford asked if the term "plant" refers to all buildings. Desler stated it 33 refers primarily to the courthouse, but includes a number of buildings. There is also 34 an objective to link with fiber optics the Smith and Northwest facility. The formal 35 final linkage isn't proposed in this budget. It is a one -time expense. Once he gets 36 more up -to -date figures to do that, they will bring something before the County 37 Council in the form of a supplemental budget request. There is some activity 38 associated with connectivity and wiring the Smith and Northwest building and the 39 courthouse. The work is a two or three year effort to re -wire this building with the 40 most up to date technology. Hopefully they will finish the effort by 2002. 41 42 Crawford asked what kind of information they are talking about. Desler 43 stated they are talking about criminal justice information and geographic 44 information system (GIS) information. The systems they have now are too small to 45 allow the County to implement some of the systems. They are talking about 46 financial information as well. 47 Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 48 George Reid, Information Services Manager, stated they have to be careful about what they send across to whom on the wide area network. They are only running at 16 megabits. The wire structure only supports 16 megabits at the current time. They will propose to put in a wire structure that will increase it by six times, to run at 100 megabits. They are experiencing slow downs between some departments because of the complexity of the information and because they've grown tremendously in the last three to five years. Desler stated that the plans the County is making that aren't presented in the budget now, but may come out of the law and justice planning effort, will include more rapid, accurate transfer of information between criminal justice agencies. It is the integration plan they've been laying out. They have some financial information that they want to transfer. There is GIS information. The text information found in email is a benign use of the system compared to the other uses of the system. Nelson stated he found that the terms in the objectives are vague. He asked for more specifics about what they are accomplishing and the goals and objectives for next year. Make sure the Council gets better communication and has the ability to communicate with the public so it has access to the same information. That is in the strategic plan. Reid stated they are close to having remote access to the network for certain County employees. Health and Human Services Chuck Benjamin, Health and Human Services Director, stated this is his last appearance before the Finance Committee. He would discuss their accomplishments since 1996. Credit goes to his managers, supervisors, and support staff who put forth the effort to accomplish their goals. At the end of fiscal year 1999, the Public Health Services Division expended 94 percent of its budget, and brought in 99.6 of the budgeted revenues. In the Human Services Division, they expended 98 percent of their budget and brought in 103 percent of their revenues. The agency overall expended 96 percent of its appropriated budget, and brought in 101 percent of their revenues. That takes a lot of work to bring in budgeted revenues. They exceeded the budgeted revenues and were below the expenditures. Staff put forth much effort in looking for other forms of revenue. They also looked at the services that they provide and what to do to improve the revenues. They got programs such as the on -site septic (OSS) loan programs for local residents. They got grant monies from the Regional Support Network (RSN) for expanded mental health services. Nelson agreed with Mr. Benjamin, who manages that department efficiently and effectively. He is leaving a legacy of hard work. He questioned whether Mr. Benjamin was able to look at the department and feel that it is whole regarding I- 695 impacts, and if there are potential impacts from current initiatives on the ballot. Benjamin stated Initiative 722 will be a tremendous impact to health and human services and to the County as a whole. Should that pass, they will have to Finance and Administrative Services Committee - BUDGET, 10/24/2000, 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 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 look at rolling back any increases that occurred since July of 1999. To address part of the impacts of I -695, he increased fees. I -722 has the potential of rolling those fee increases back. That would be a tremendous impact, and the department would come back for more funds or to develop other revenues. The state legislature passed some I -695 replacement funds that replaced 90 percent of the public health impacts from I -695. The County received $809,000 per year. They have additional service requests that the Executive's Office is recommending approval for. Through the course of 1999 and 2000, they processed community health and wellness strategic planning through the Public Health Advisory Board (PHAB) and Board of Health. They transitioned some services that they recognized revenues from, with the idea that they also have public health needs in the community that they were not meeting. They wanted to retain those resources to retain those public health needs. He will maintain the resources necessary to provide public health services to Whatcom County. To address the loss of revenue, he put a plan forward that uses some outside funding. They put forward a plan for revenues, some of which are available one time and others that are available ongoing. Nelson stated he hoped that the Health Department objectives for the three - year plan are the ones that they will work on next year. He preferred to see in the next budget what objectives they can accomplish in the year that are tied to the three -year strategic plan, looking at what resources are available and what resources may be needed. He asked that the scope of the three -year plan be narrowed down for the annual budget. Benjamin stated the activities listed in the three -year plan are what they intend to do in the current year. For the 2001 three - year plan, all of the activities are noted for 2001. At the end of each program section, they outline the FTE's, classifications, costs, and offsetting revenues. Nelson stated all they need to do is list those activities as the objectives. Crawford questioned the performance activity measures for maternal infants. It looks like it is new, and has a small use and application. Sylvia Fragner, Public Health Nurse Supervisor, stated they are keeping information about unintended pregnancies. The state has identified it as one of its priorities for addressing issues. The County began keeping data several years ago about women who report whether their pregnancy is intended or unintended. In 1999, they were just beginning to get some of that information. That was her first presentation to some community groups. Benjamin stated part of the presentation could be to do training for other providers in the community. The number referenced is not the number of unintended pregnancies, but the number of presentations regarding unintended pregnancies in the community. The statistics are taken directly from women's reports who are eligible for Medicaid. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 10 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 Crawford questioned the relationship of the Health Department with Planned Parenthood. Benjamin stated Planned Parenthood occupies the building with the Health Department. They also do some collaboration together. There is no money exchanged. Crawford stated there is a political agenda, and he was concerned about the County being too closely associated with such a politically oriented group. Benjamin stated they need to collaborate with providers to enhance services in the community. For instance, Planned Parenthood is the primary provider for the sexually transmitted disease clinical services. The Health Department is a far second for those services. When the Health Department is reaching out to the community, it needs to collaborate with other services as a public /private partnership. He agreed that they have to be careful with any type of a political connection. Nelson asked about the Health Educator full -time equivalent (FTE) employee. They have gotten by without the position for two years. Benjamin stated they have not. The position is currently filled, and has been for a couple of years. The position Councilmember Nelson was referring to is not part of the reduction or an ASR, but it is a vacant position within the agency. It is the Community Health Assessment Coordinator. Nelson stated page 90 lists a request to restore funding for the Health Educator position, which was eliminated as part of the budget request. Benjamin stated that was correct, but it is a filled position. It is not vacant. Nelson asked if they are restoring the funding for it. Benjamin that was correct, with Current Expense funds. Nelson asked why the position was filled if it was not funded. Benjamin stated that when they transitioned the services out and lost the revenues, they were asked by the Executive's Office to do corresponding reductions in the base budget. That is what he put forward to the County Executive's Office. At the same time, he discussed the importance of these positions not being cut. However, if they have to cut the positions, this is where they would do it. He originally proposed to cut positions that were filled, but decided to cut the clerical position in the Women, Infant and Children (WIC) program, which was not filled. There is a Clerk Typist II currently on family medical leave that is in the position they cut. However, they still have a Clerk Typist II position that the person can come back to in the Human Services Division, instead of in the WIC program. Nelson stated it looks like they are meeting the budget needs. He asked about the mental health ASR. It was not approved. It was for the rent subsidies. Benjamin stated it was a request from the Mental Health Advisory Board. They know that transitional housing is a problem, and there are a number of homeless people. They were going to look at the rent subsidies to help that particular need. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 11 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 Nelson questioned whether the amount was for $138,000. Benjamin stated it was. There would be no offsetting revenues. Nelson questioned whether they could fund this through the RSN's funding sources. He questioned whether they are seeking that as a resource. Benjamin stated they are not at this time. He was sure that the Mental Health Advisory Board, if they do not get this funding, will continue to look for other funding. Crawford questioned the number of people who that program would assist. Benjamin stated it would provide 100 additional rental subsidies at $115 per month, to be spread out over the year. Crawford stated they could potentially help 100 people for a year. Benjamin stated it would be a rotating situation. Nelson stated people with mental health conditions can many times be functional, but are not in an environment conducive to them maintaining that medication and treatment. This is an avenue they can use to take care of the residential concerns, help them with the medication, counseling, and services, and eventually find them a productive job in the community. Crawford stated that not approving this was because the County doesn't have the money. Desler stated that there are competing demands that exist from many different sources of support. The administration was very reticent to take on new programs. They see this as a significant expansion at this point. They can continue to work with the department to find a solution to these issues. One of the solutions may be to work with the RSN. There may be other grant funds to support something like that. The administration is willing to assist with that. Nelson stated that isn't to say they haven't done things in the past, or couldn't do this program. The County spends a tremendous amount of its own resources for mental health, compared to the region. It is one of the County's responsibilities to support the Mental Health Advisory Board. Desler stated it would be worthwhile for all of them to reexamine what the County is doing to serve the people with mental health needs in the community. He would ask the department for a clear, direct report for the Council. The Council was recently asked to amend a supplemental budget request to provide for the protection of some existing residential resources at the building at 515 Chestnut Street. They are writing a grant to sustain other parts of that building as well. It needs a new roof, a new paint job, and new drainage. Crawford stated they would want to pursue any grant opportunities. McShane asked what percentage of the people who are taking medication would end up spending some time in jail. Nelson stated that was a good question. Right now, the jails are probably the largest service provider for medical health patients, which is not an adequate Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 12 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 use of that resource. The hardest part is keeping them on their medication. He assumed that the housing program would be tied to other aspects of treatment. Benjamin stated it would include referral, treatment, and case management. Nelson stated they need to get these people on a habit, which will give them a much greater chance of success. McShane asked how the subsidies would work. Benjamin stated they work like vouchers. The County would have to enter into agreements with different housing projects for a certain number of units, and then use vouchers. McShane questioned whether it would be the Housing Authority. Benjamin stated it could be. The County has some agreement with the Authority now. He understood that the federal government is tightening up the requirements for people with disabilities, mental health issues, and substance abuse issues. Before, they were put on a priority list. They are no longer going to be on a priority list. They are going to be on a list with everyone else. That may cause an additional problem in the future for housing. McShane questioned whether the vouchers would apply to a halfway house arrangement. Benjamin stated the County would apply for those arrangements as well. Not necessarily with this money, though. It would be in another venue. Crawford stated that $115 per month is roughly the equivalent of the cost of two nights in jail. McShane stated that was why he asked the percentage of the 100 that would end up in jail. Nelson stated that is why the criminal justice process is so important. The plan that they develop will let them work smarter than they have in the past to eliminate some of these criminal justice costs, which also benefit the community. Benjamin stated the other ASR was for the triage center. He was pleased that the Executive's Office forwarded the ASR on to the Law and Justice Council. Tying those issues together is a good thing. It will also address some of the issues they are discussing now about getting people to the right service and the more appropriate level of service with the triage center. Desler stated the administration has an active interest in trying to resolve that problem. About 20 percent of the people at any one time in the jail have moderate to severe mental health problems. The County Executive recently appointed the Human Services Manager to the Law and Justice Committee, who will be asked to directly address this issue. The administration really needs the assistance of the RSN and the Associated Provider Network to provide response as well. Nelson suggested that, as they move through the criminal justice strategic plan process, that it be placed on a priority level to facilitate actions that might be Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 13 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 used as pilot programs or discoveries for other counties. The sooner the County gets that to the RSN, the sooner they can be activated. (Clerk's Note: End of tape one, side 8.) Benjamin stated he submitted an additional ASR for the Domestic Violence Commission. The ASR should show additional revenue of $7,500 for a requested expenditure of $15,000. Of that, $7,500 would come from the County and $7,500 would come from the City of Bellingham. It is the 50 -50 share between the County and the City of Bellingham. The match should be $7,500. It should show revenue of $7,500 from the city, for a total expenditure of $15,000. Crawford stated he liked the presentations the councilmembers get in writing from the Health Department for the Finance Committee. He liked the format of the one -page cover. It is succinct and shows the money being expended, what the money is for, and where it is coming from. Not all the departments are doing as clear a job as Mr. Benjamin has done. He suggested standardizing that format throughout the departments. Desler stated the administration is attempting to do that. Public Works Nelson stated that these were some of the better -laid out objectives under administration and accounting that he's seen in the budget. Jeff Monsen, Public Works Director, submitted supplemental material. The notebook is a combination of Public Works related excerpts from the submitted budget and supplemental information that goes into more detail. It is a reference document. He also submitted a one -page summary showing all of the funds that are specifically assigned to the Public Works Department. He would discuss five of those funds: the Road fund, the Equipment Rental & Revolving (ER &R) fund, the Solid Waste fund, Flood Control Zone District fund, and Water Resources fund. For each fund, he would discuss the fund's purpose, it's current financial status, and the more significant issues and priorities relative to the use of the fund. He would also discuss the related additional services requests (ASR's). The Road fund is a dedicated revenue source with a limited ability to be used for anything other than a direct benefit to a county road. Financially, the largest revenue source to the Road fund is the road levy property tax in unincorporated areas. It has averaged around 60 percent for some time. Western Washington counties are heavily financed with property taxes. Eastern Washington counties are heavily financed with the fuel tax. Whatcom County relies on the property tax to deal with ongoing routine expenditures of road maintenance and administrative costs. They focus the fuel tax, timber revenue, and grants to the capital program. The issues regarding the Road fund deal with regulatory changes. The amount of time it takes to design and permit a road, Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 14 1 whether it's a maintenance activity or a construction project, is increasing in time. 2 Several years ago, it was common to decide to do a road construction project and 3 have it complete in one to two years. They start now in two years and are closer to 4 three to five years to get jobs done. They need more projects at one time on some 5 type of a program. They need to keep more balls juggling so they can make sure 6 they move something along. It takes more attention and detail. Part of the ASR 7 was for staffing to recognize those things. Put more energy into long -range 8 planning and scheduling. The biggest challenge on roads is completing the work on 9 the ground. 10 11 Because of that situation and even with no increase in property tax, they are 12 still at that point where two things happen. One is that there is still enough new 13 construction that has been able to cover the inflationary changes. They are not 14 losing ground. They can sustain current programs, especially on road construction. 15 Over the next few years, they will continue to see an increase in fund balance 16 because they can't put that dollar into productive use. It will not be as dramatic 17 over the last couple of years. It still will be there. He didn't see any financial 18 issues about what they want to accomplish, only issues about getting it 19 accomplished with someone else's permission. They are getting into the more 20 difficult projects. It is easy to do a central county reconstruction. It is harder to do 21 something like Yew Street Road. 22 23 Regarding ASR's, there are five full -time equivalent (FTE) employees 24 requested related to the Road fund. The first FTE request on the list is the first one 25 listed for consideration. The hydraulic engineer was approved. The other four were 26 denied. Those four relate directly to their department's ability to find ways to be 27 proactive in their performance of work. The work of those individuals will need to 28 be accomplished whether or not those positions will be approved. They are all 29 funded from the Road fund. The proposed base budget for Public Works is put 30 together in a way that presumes all the ASR's are approved. They will fall shorter 31 in those accomplishments if the ASR's are not approved. A bigger issue is 32 identifying priorities and doing those things well. It is not a matter of whether 33 these are critical, but there is a relationship to what they can accomplish. If they 34 go through a detailed prioritization process, they can find things that they won't be 35 doing. They will continue to maintain current service levels and enhance where 36 they can. These FTE requests are what they need to maintain and enhance those 37 program areas without cutting back programmatically. From an internal 38 standpoint, while he submitted a request to the County Executive for a 9.5 FTE 39 increase, they started at a request for 25 additional FTE's. The department 40 consolidated issues and cut back, so the request was whittled down from a request 41 of 25 to 9.5 additional FTE's. 42 43 Another additional ASR is for an additional $250,000 for the road surface 44 maintenance program, at least for areas in the subdivisions where there is a lower 45 speed limit of 25 miles per hour (mph) or below. They typically have people 46 walking on them. They are looking to transfer to asphalt concrete instead of chip 47 seal. Every year, there are many request from the citizens for that. They want to 48 make sure they are prepared to make that conversion, but there is a cost Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 15 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 associated with that. It would cost an additional $250,000 per year to maintain asphalt concrete as the surface instead of chip seal for 25 mph residential neighborhoods. Crawford asked what is wrong with chip sealing those areas. The complaints he'd heard regarding chip sealing are about vehicles traveling higher than 25 mph. If the speed limit is already 25 mph, and they are already chip sealing a neighborhood, he didn't have a problem with chip sealing. He asked why they are doing this now. Monsen stated it is an issue that has been out there. In a subdivision, the complaints deal with walking, biking, and skating, and the inevitable loose rock over time. The request primarily came from those individuals. They still get complaints from people regarding flying rock, but in areas where the speed is greater than 25 mph. In areas where they have paved the shoulder, they try to limit the surface maintenance to the traveled roads, not the shoulders. They would provide an increased level of surface in the subdivisions. Councilmember Hoag asked about this item in a past letter. He put it in the budget last August. They have the financial capacity to increase the level of surface, but it is a policy matter. Dawson stated they have to maintain the roads and look at the cost - effectiveness. People like to bike and skate on the roads, but roads are for road travel. Nelson stated that if they want a policy change, then send it through and have a hearing. The different cost is substantial. Once they open the Pandora's box, it is left open for an increasing demand for this level of service. It would cost far more if they were to do it on all roads. Monsen stated that if this level was supplied on all the roads, it would cost substantially more. Nelson asked the life expectancy of chip seal versus asphalt concrete. Monsen stated the life expectancy is seven years for chip seal, but 20 years to life for asphalt concrete. Dick Prieve, Assistant Director of Operations, stated it amounts to spending twice as much on asphalt. The chip seal is a quarter of what it costs for asphalt, but asphalt has twice the life. Monsen stated there are 950 miles of roads in the county. There are about 100 miles of road in subdivisions. They are a low percentage of the entire road system. In order to provide this increase in service, there is a cost associated. It is a policy matter that may deserve some attention. At this point, it is a fund balance issue. It is a service they can do now without seeing a dramatic change in fund balance cash flow. If they expand the increase in this level of service to a higher percentage of the road system, it is a different matter. Nelson asked if the budget request has the funding. Monsen stated it is in the base budget because it was approved. The budget before the committee and Council does include this money for this change in service. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 16 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 Monsen continued to state that they are trying to make sure that, as the environment is changing and service demands are changing due to an increase in population, they need to reevaluate where priorities lie. This is an example of that. The FTE's they propose are also an example of going through the analysis and providing alternatives. McShane stated they'd discussed fish passage earlier in the year. He asked where that comes in. Monsen stated they have built fish passage into any projects on the capital program. There is approximately $500,000 in the road maintenance program to address fish passage in those cases. At this point, they will focus on outside grant revenue to address fish passage if there is not a road reason to address a culvert. They could still use Road fund monies as a match, but would focus grant monies to those out of sequence barriers. The Salmon Recovery Funding (SRF) Board and state Department of Transportation (DOT) may have funding. McShane asked if the SRF Board has been receptive to those types of projects. Monsen stated it depends on the region and where the barriers fall within the regions' priorities. They submitted fish culvert projects as part of the spring round of SRF Board applications. Those projects were rated low. They did not submit them again this time around, and are waiting for some of the regional process to catch up and identify the barriers that are priorities. They are likely to submit those culvert projects this coming spring. McShane asked if the $500,000 for barriers is for work on the ground or to evaluate and prioritize. Monsen stated it is for work on the ground. The barriers they deal with are those in culverts that are in need of a replacement because of the road being rebuilt. They address whatever barrier issue is there. If a culvert is in need of replacement because of a maintenance reason, the $500,000 would be applied. There is a road priority to address a culvert, however addressing it will deal with the barrier issue. There is nothing for barriers alone. McShane asked if going in and fixing barriers could be done for road reasons. Monsen stated they could. Monsen continued to discuss the ER &R fund. He submitted a list of equipment in the current proposed budget that is scheduled for replacement next year. This is a fund that manages assets. The fund balance is a reflection of the difference in current value of the fleet and replacement value of the fleet. If there are many new vehicles in the fleet, the cash balance goes down. If there are a lot of older vehicles in the fleet, the cash balance goes up. Other than for road purposes, its use is discretionary within the County. It is there as an asset management bank, and nothing else. It lives off of service charges, fees, and rental rates. It doesn't have independent tax revenue. The cash balance in that bank is assigned to other departments. If a department abandons a vehicle, the cash reverts back to the General fund. It doesn't stay in that account for something else. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 17 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 Dawson asked for an explanation of the sewer jet. Monsen stated they have a vacuum truck to deal with routine catch basin maintenance. It is in need of replacement. It will be upgraded to a unit with higher efficiency. A lot of this relates to the need for these kinds of maintenance activities due to the Clean Water Act. They are continuing discussions with the City of Bellingham for an advanced vacuuming and street - sweeping program in the Lake Whatcom watershed to see what kinds of pollutants they can pick up. Prieve stated they bought the existing sewer jet used from Pierce County. They got a very good deal on this. It was near the end of its life when they purchased it. They also use it for plugged culverts. It is a multi - purpose machine. Crawford questioned the process of replacing a vehicle. Monsen stated there is a bid process for purchase. In most cases, it is truly a replacement. In the case of the sewer jet, they are looking for some technology improvement. Crawford asked if the individual departments come up with the description of what they use vehicles for. Monsen stated his department will provide review regarding their alternatives, but he doesn't second -guess what the departments need. Prieve stated he drove the Ram Charger or five or six years. It was there when he came on board. It was a special order for one of the road use sheriff deputies who was a large man. This vehicle has been around for a long time. It was passed from Maintenance and Operations (M &O) to the Planning Department. It's replacement won't necessarily be a Ram Charger. Monsen stated it probably would be a sport utility vehicle (SUV) instead of a Ram Charger. This list he submitted lists the portion of the fleet due for replacement next year. It is not a fleet list. Crawford asked if $1.5 million a typical amount for the year for replacement costs. Monsen stated it ranges between $1 million and $3 million each year. As they get into heavier equipment, it changes the list dramatically. Nelson stated there is a decrease in the ER &R fund by $94,000 from last year. Monsen stated one piece of equipment could make that change. Monsen discussed the Solid Waste fund. It evolved from a County solid waste operation fund operating landfills and disposal services to a fund that is one that supports regional activities primarily in waste reduction and recycling. The County acts like a lead entity in that regard. In exchange for that status, the interlocal agreements also say that the County Executive and Mayors together prepare a budget. That is what is before the Council. The primary revenue is the solid waste excise tax. They apply a tax on collection of services. If a person does not subscribe to a service, he or she doesn't pay an excise tax. Self- haulers do not pay, but they also receive benefits of the countywide program regardless. The Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 18 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 question always comes up about what is provided for the tax. The Solid Waste fund is there to deal with County and regional responsibilities. The yard waste program is a relationship they've had almost exclusively with the City of Bellingham for some time. The Solid Waste fund subsidizes the City of Bellingham operation. An issue with the yard waste is replacement and /or enhancement to that service so that other cities and the unincorporated area have access to those kinds of services as well, without dealing with the Lakeway site. It is included in the budget because it was recommended by the Solid Waste Executive Committee to proceed and put in place an additional yard waste site. (Clerk's Note: End of tape two, side A.) Monsen continued to state that they have budgeted adequate funds to deal with the Y Road. There are only two funds now that can deal with a site like that; the Solid Waste fund and the General fund. McShane asked if the state Department of Ecology listed that site as a contaminated site. Monsen stated they listed it as a potentially contaminated site. McShane asked if it is on the list of confirmed and suspected sites. Monsen stated he was not sure of the terminology. He would have to consult Regina Delahunt with the Health Department. McShane stated he had a question of authority and who is driving those decisions. He was concerned about dumping money into the Y Road landfill. Monsen stated any expenditures now are because they choose to, not because they are obligated to. The obligation to respond is because there is a confirmed release. Regarding investigation, they are trying to confirm whether there is a release and what the risks of a release are. McShane stated they need to move carefully, and look carefully at who has authority to tell them that they have to do the investigations. It is a policy issue that the Department of Ecology has backed away from abandoned landfills all over the place. If they want to start listing the abandoned landfills that were closed before 1988 or 1989, it would have a huge implication around the state. It would have gigantic fiscal impacts on people. Monsen stated they are not trying to dig up the old suspected landfills. The basis on whether to investigate is whether there is evidence of release. Therefore, there is some obligation to pursue. The Y Road falls into a special category because of the joint effort relative to Lake Whatcom. It was identified as a site to investigate, whether or not they are obligated to. Dawson stated the County Council usually provided direction. Monsen stated they are there because of a general policy direction to look at it. At this point, there is no legal obligation to do so, other than an agreement with the City of Bellingham and Water District #10. At the meeting on November 14, he Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 19 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 will bring forward an alternative about what to do there next, and the financial implications. Nelson asked about the problem with the yard waste materials. There is a potential burn ban for the county in 2003. Bruce Mills, Assistant Director of Engineering, stated the burn ban for the entire county is in a few years. It will be phased in before then. Monsen stated the burn ban deals with urban and urbanized areas, and is not necessarily countywide. Nelson stated he heard that they are looking at a complete countywide ban. There are a tremendous amount of materials countywide that are burned. McShane stated it depends on county population. Whatcom County is now below the population threshold, but it could be above the threshold by then. Nelson stated yard waste disposal has minimum impact in urban growth areas, although it could be an increased program. He questioned whether the County would be prepared to deal with it if occurs countywide. Monsen stated he proposed to look at that program. The demand for the service is already there. He wanted to make sure that whatever is put in place deals with future service demands as well. Nelson stated that there is potential for a lot of yard waste coming into a facility if there is a burn ban. Monsen stated there have been some proposals put on the table from individuals that uses some of the Solid Waste fund to help the industry provide it as a private service. Rather than using solid waste tax revenues to find a way to subsidize an industry, reduce the solid waste excise tax so those out there have more money in their pockets to go and get the service. That is a decision of whether or not the County plays a specific role in providing that service. Nelson stated the Solid Waste Advisory Committee (SWAC) should look at it. Crawford stated it was discussed at the SWAC a few months ago. There was a proposal to put a site on Northwest Road. The idea was shot down at that meeting. Nelson asked the timeframe of implementation of a countywide burn ban. Desler stated they would put together a report about the future time frames and the implications. Crawford stated part of the challenge of SWAC was that the City of Bellingham was giving inconsistent messages about how long it would continue to fund the Lakeway and Woburn site. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 20 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 McShane stated the city indicated to him at a SWAC meeting that they wanted to continue the site, and people were surprised about that. Crawford stated the County needs a place for yard waste. They need clarity from the City of Bellingham about what they plan to do with the Woburn site. McShane stated they've been clear lately that they want to keep the site. Crawford stated the bigger issue is the burn ban near urban growth areas (UGA's) for land clearing. The cost of land clearing is around $4,000 to $6,000 more to chip the material than to burn material on site. He's heard that this is a rule from the state, and they can't do anything for that. Nelson stated any activity will produce materials and they won't know how to get rid of it. Prieve stated the City of Bellingham is hiring a new Parks and Recreation Department director. One of that person's first charges is to look at the Lakeway site. The Parks Department is scattered in several locations. The future of the Lakeway site is dependent on whether the Parks Department consolidates on that site. McShane stated it was also an issue for the City of Bellingham's Public Works Department. Nelson asked what the County plan is. Monsen stated there is a service demand for an increase in capacity for handling beyond the Lakeway site. Whether or not Lakeway stays open, it only influences the capacity need beyond it, not whether there is another site or other sites. Crawford asked where the stuff from other jurisdictions is going. Mills stated that the cities of Lynden, Everson, and Nooksack have curbside service through Nooksack Valley Disposal. Yard waste is branches, grass, and clippings. It is not land clearing debris. They've been told that the private sector is saying they will take care of that issue, and that government should stay out of it. The industry doesn't want the government to step in and compete. They are trying to fill the gap that no one wants to fill. Nelson asked if the private sector takes care of enforcement. Mills stated enforcement is through the Northwest Air Pollution Authority (NWAPA), through the burn ban. McShane stated there was a study on the Cedarville landfill. He asked if there was any more thought on dealing with the leach water. Monsen stated that the County did the evaluation. It collects and disposes of a large quantity of leachate out of Cedarville. An analysis showed that they could intercept up to 75 percent of that liquid in the form of brown water that infiltrates into the site. When they began to move into that exercise, flow control was taken away and they went Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 21 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 to a zero fund balance. He is trying to reopen that and confirm whether it is still economically viable to intercept and move ahead. McShane asked about treating leachate onsite. Monsen stated the option was shaky about whether it was cost - effective to treat onsite. As long as the County maintains a relationship with the City of Ferndale, it is the best cost alternative. Should that change, it may be worthwhile to reopen. Monsen stated he would discuss the Flood Control Zone District fund. The district was formed with the intent of a narrow focus of flood hazard management. The statute clearly allows a flood district to deal with a lot of other surface water and water management issues. For that reason, they've started to finance the early work on water resources out of the Flood fund. Regarding the flood district, almost half of the revenue comes from incorporated areas, and other half from unincorporated areas. There have been questions about what is paid into it for the benefit that is received. It is a question that would come up periodically. From his perspective, they are spreading those dollars out broadly and benefiting everyone who is paying into it. People can debate that point, but they are spreading the dollar evenly to make sure everyone has a benefit from its use. The Flood fund has a periodic renewal of that service charge. The current form of service charge continues through the end of 2002. In 2002, they will revisit the continuation or replacement of that revenue source for flood hazard and water resource activities. Regarding the flood program issues, they have about $8 million in the bank that is undesignated. They still look at about $5 million of the $8 million in the bank as a reserve in the case of a major flood event. That leaves an undesignated $3 million. If they didn't have the current problem relative to getting permits to perform work, the County probably would have spent that $3 million already. The Second part of the issue is that there isn't a change in the amount of energy required to select, design, and permit work. There has not been a run on the bank for the $3 million, so it is available for use, with the caveat of spending it as soon as there is regulatory approval. They can easily spend those funds also in a flood event. McShane asked if the preference is to maintain a $5 million fund balance. Monsen stated it absolutely is the preference. Past experience has shown that it used to be easy to receive federal and state assistance in response and for repair. That assistance still exists, but he doubted whether they would see the same type of assistance because of the Endangered Species Act (ESA) and changes in the Army Corps of Engineers' policies. For instance, a breach might not necessarily be repaired. Nelson asked about Federal Emergency Management Act (FEMA) insurance. Monsen stated there are federal disaster funds that come through FEMA and the Corps of Engineers and any other federal agency that deals with restoration, which is beyond the flood insurance program and hazard mitigation. There are different funding sources to deal with different situations. In a major event, they can't count on the magnitude of the assistance because of the kind of work they'd be willing to Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 22 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 finance. Second, flood events can be quite localized. To access those federal dollars, there needs to be a presidential declaration. If a flood is narrow in Whatcom or Skagit County, they won't see federal funds. The County maintains a reserve for those eventualities. That kind of money runs out quickly. Regarding the ASR, the three FTE's requested in the budget proposal represent the result of discussions with the Flood Advisory Committee and the Council Public Works Committee. That is where the three FTE's came from. He was not saying that it is or isn't critical to hire those positions. However, a staffing level within the flood program has a direct relationship to what they can accomplish. They can't do the current priorities with the current staffing level and one more FTE. They just had a resignation within the flood program, so they are now down a staff member. Dealing with the kinds of things the priority list suggests with the current staffing levels, or even with a one - person increase, can't be done. It is a matter of setting priorities. He accepted the Council's direction on where the priorities lie. He wanted to make sure what the priorities are, so the expectations balance their ability to perform. Regarding the Water Resources fund, it is the same as what he commented on regarding the Flood Control Zone District. One challenge is that, even though there are substantial revenues in those program areas, the program is still being developed. He hoped that the use of Flood funds is still an interim step while they establish long -term policies and programs relative to water resource management. They are not there today. They have been designing water resource programs based on cash in the bank compared to long -term policy direction. That would change over the next couple of years. Another issue is how to deal with the cash shortfall to deal with the one -time expenditures. He recommended focusing on the Flood fund 50 percent transfer for ongoing expenses. For those ongoing expenses, including the ASR relative to shellfish, they need to make sure that the ongoing program expenditures are funded through 50 percent transfer. They are short of money to complete all the one -time expenditures, including the Water Resource Inventory Area (WRIA) 1 inventory and plan. The suggestion is that, rather than dip into the Flood fund undesignated balance or the General fund undesignated balances, adopt the budget as it is. With three to four more months of experience, come back with a financial plan relative to that project. He asked for recognition and support that the project is important and should continue on. Defer the decision on the amount and source of money to early next year. Another choice is to fund out of the undesignated Flood fund. He couldn't give an estimate of cost of the one -time expenditures. It could be between zero and $2 million. Shortfall that this budget document suggests reflects the one -time expenses. The issue is the same with the FTE ASR. Each of the positions has a direct relationship to their ability to perform. Without the positions, they need to look at prioritization and make sure that what they accomplish is accomplished well. They are going through some organizational restructuring within the Public Works Department to bring focus to some of their projects, so they operate in a way to ensure their success in getting permits timely and predictably. There is a Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 23 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 reference under tab nine in the notebook for background information. At the top of page eight, there is another ASR that is money to be applied to office space lease. He didn't know where it would come from, but they need it. Today, with the current FTE allocation, they are 20 workspaces short. They have converted common areas for workspace. That does not take into account the FTE requests. It is a matter they need to deal with in the short term. He supports the Executive Office in doing master planning to implement and complete a master plan that will deal with the future. From a productivity standpoint, he can't wait years for that analysis to be done and implemented. He needs to do smoothing by early next year. If they can't deal with office space now, then don't approve the FTE's he's requesting because there is nowhere for them to sit. Nelson referenced drinking water. He asked what will specifically be done in Lake Whatcom and whether there are action items specifically for improvement of drinking water. Bruce Roll, Water Resources Manager, stated that in terms of drinking water, it is of exceptional quality right now and is not in need of improvement. The issue is how to sustain that quality. There is stormwater work they are engaged in. The work comes out of the Joint Lake Whatcom Management Plan. They created specific work tasks and budgets. He expected work on erosion control and enforcement, voter education, lake living kits, and boater education. The major thrust for next year would be to develop alternative approaches to living in the lake, such as the lake living kit. One example is the development of phosphorus - free fertilizer in Lake Whatcom. Dawson asked how the kits would be distributed. Roll stated they would target the stakeholders groups, such as Silver Beach and local Rotary clubs. Nelson asked about the goal of a reliable and sustainable water supply by 2003. Monsen stated a lot of the language comes from the original Comprehensive Water Resource Plan that intended to set a conceptual direction. Dr. Roll is to flesh out the specifics. Nelson suggested not using these for budget objectives but to identify what they can accomplish for the year. Monsen stated that until they finish policy - setting action plans, some of the language would continue forward because it is the language that the stakeholders agree to. Being too specific presumes that the County knows something that the stakeholders don't. Nelson stated there are large increases in services and charges in some areas, and reductions in other areas. He asked the reason for the large increases. Monsen stated that generally they have budgeted conveniently for budget lines knowing that they were going to spend a certain dollar amount in an area, but then they can choose to spend it another way. Nelson stated Solid Waste Other Services and Charges has an increase of $140,000. Monsen stated he would get back to him with that answer. Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 24 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 asked about the decision support system (DSS) administrator position. Bruce Roll, Water Resources Division Manager, stated they could expect the technical assessment being done by Utah State University (USU). The result is the DSS system. This is the resource needed to sustain that beyond the contractual obligations and also be part of its development so that, when USU leaves, there is a body of knowledge capable of perpetuating it and modifying it as necessary. Crawford asked if they always anticipated getting someone for this position. He would have assumed this is what Dr. Roll and the staff would do on an ongoing basis, rather than hiring a specialist. Roll stated it is a computer relationship type of person. It needs someone with a different skill set than what his staff has. The rest of the staff will be engaged in flushing out the specific "what if' scenarios that the Council will ask and to provide information to the DSS administrator so he or she can modify the DSS to run those scenarios. This person will be an administrator to make sure the DSS operates and continues to operate as new data is acquired and new questions will ask. Monsen described a parallel situation. One of the FTE's in the flood program is to run the flood model. They need to have a model that is more predictive in decision making within the flood plain. Going through the exercise, they want to be clear that if they are going to do this modeling, they are going to need to hire someone who will live and breathe it and be qualified to run and maintain it. They didn't need the staff to build it, but would need some staff to run it. The staff person in the Water Resources Division will deal with procedural issues and to actually use it. Crawford asked how big the Water Resources Division is going to get and when they will have the working capability to manage water resources within the structure they've set up. (Clerk's Note: End of tape two, side B.) Monsen stated that given their current level of effort, the staff must stay there. If the County chooses to remove or reduce its participation, they can be reallocated. As long as they choose to step up their engagement with shellfish, they need someone to engage at that level. If they don't pursue it, then they don't need someone. For the things they are being asked to do today, the people within the Water Resources Division are consumed in performing those services. They would need to cut back some of those expectations in order to not need another position. This is the first year they have a financial limitation. Crawford asked about office rental space. Monsen stated this is new and under the assumption that they will address the current shortage. His calculation is that they are 20 spaces short today. Those 20 spaces plus up to nine new FTE's bring the total up to 30 spaces, however the space crunch is mostly at the Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 25 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 Northwest Annex. He can't move one person out of that location. Whole work units have to move out. Work units are anywhere from five to twenty people. Desler stated administration is working with Mr. Monsen to use the Civic Center building and consolidate his operations. He was concerned about putting a department in a situation where they are distributed throughout the community. The Public Works Department may use the Civic Center building as in interim location. This money is set aside to help make the payment on that building. They can legitimately charge the department rent for its utilization of the space. Crawford asked about the transportation summit. Desler stated Executive Kremen and Mayor Asmundson want to look at the future of transportation in Whatcom County with a broad -brush examination of where they are going and where they need to go. They've asked a local community foundation to help, along with a community health partnership. They propose the cost to come out of the Public Works Department. Crawford asked about a road fund transfer to the Northwest Annex maintenance. He questioned whether it is appropriate to use the fund if certain road activities occur at this location. Monsen stated it is appropriate. Crawford asked what "computer high capacity" is. Paula Cooper, Special Projects Engineer, stated the digital terrain model is used to extract the cross - sections for the hydraulic model. It is huge. It works on the machines they have. It is a computer for generating a surface of the land. It is a high - powered and fast personal computer. Crawford asked why one color laser printer is $3,000 and another is $7,000. Eric Schlehuber, Office Administrator, stated the cost has to do with speed and capacity. The smaller machine serves smaller work groups. Monsen stated the Public Works Department is not part of the technology funding replacement program as other departments are. He still budgets year -by- year for replacement. Desler stated the County has a technology replacement and revolving (TR &R) fund. It is only set up for the General fund operations. The Public Works Department is not a part of that. They should be. They have to replace equipment and have to budget the money when they need the equipment. Schlehuber stated they previously have budgeted by fund, so there were many different ASR's for computer replacement instead of having them all together in one ASR now. Crawford questioned the system of checks and balances. Desler stated they have to take the good sense of the managers in the department, along with the Finance and Administrative Services Committee - BUDGET, 10/24/2000, Page 26 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 Information Services (IS) Division. He asked the IS Division to go through the request. He doesn't have a way to determine how it is actively being used. They are going to trust Mr. Monsen's judgement. Regarding the type of equipment and the fact that it is a replacement of an existing unit, the Administrative Services Department checks over the request. Monsen stated that, other than consultation about what they need the equipment for, this is a list from the IS Division to accomplish the functions they've said they need to accomplish. Nelson stated it is the same in business. When he does a proposal for new automated systems, they look at available systems and how effective they are to reduce workload and the type of productivity that would be produced. They also look at the dollars per hour that the equipment will save. Then they make a recommendation, and it's administration's job to approve or modify the request. If the Council tries to second -guess what each department needs, then there is no need for the management positions. He understands the concern about the large amount of money. They want to see the efficiencies come back in the budget process from year to year, and see whether there is a reduction in FTE's or an increase in workload productivity. If the Council begins to see that there are not changes and that jobs are not being done, then Councilmember Crawford would have a legitimate concern. Desler stated administration is asking the same questions and shares the concerns. ADJOURN The meeting adjourned at 12:20 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 - BUDGET, 10/24/2000, Page 27