HomeMy WebLinkAboutSpecial Council May 13 20031
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WHATCOM COUNTY COUNCIL
Special County Council
May 13, 2003
The meeting was called to order at 1:30 p.m. by Council Chair Dan McShane
in the Council Committee Room, 311 Grand Avenue, Bellingham, Washington.
Present:
Barbara Brenner
Laurie Caskey-Schreiber
Sam Crawford
Seth Fleetwood
Sharon Roy
Absent:
L. Ward Nelson
1. DISCUSSION WITH THE ADMINISTRATION REGARDING ECONOMIC
DEVELOPMENT IN WHATCOM COUNTY (AB2003-017)
Pete Kremen, County Executive, stated the Economic Development
Investment (EDI) Program is to maximize the effectiveness of the dollars they can
generate with the rural sales tax money. The five objectives are as stated in the
program packet. The program was put together in collaboration with the Economic
Development Council (EDC), Port of Bellingham (POB), small cities, City of
Bellingham, Public Utilities District (PUD), and Chamber of Commerce. This is what
they are going to use for about two-thirds of the rural sales tax. They started
working on this at the end of last year. They had to come up with a plan that was a
good way to save money.
McShane asked the amount in the program at this time. Kremen stated
there is about $5.5 million accumulated. He described the proposed EDI
Committee membership, which is the same as the current Rural Sales Tax Board
membership. The proposal is to change the name to the Economic Development
Investment Program Board.
Caskey-Schreiber stated it seems like they are putting a bit of faith into the
EDC, an organization that is new and unknown. The director hasn't proven himself.
Kremen stated they are not funneling everything through the EDC. The Council will
have control of how much money is spent and where it is spent. The EDC will only
take, process, and coordinate the applications.
Caskey-Schreiber stated that is fine, as long as the Council is made aware of
the applications that the EDC doesn't put forward. She asked if this board would
realize this is rural sales tax revenue, and rural areas should be weighted more
heavily. Kremen stated the board does the same thing as it does now. That
doesn't change.
Special Whatcom County Council-EDI Program, 5/13/2003, Page 1
1
2 McShane stated the Council could also change anything in the program.
3 Kremen stated that is correct.
4
5 McShane stated the rural sales tax already exists. This proposed board
6 would have some additional members from what there are now.
7
8 Brenner suggested adding another item to section four, before item seven,
9 "Avoidance of adverse environmental impact." She asked if these items are in
10 order. Kremen stated there is no specific order or weight to the items. They
11 wanted to stress quality. He prefers the term quality jobs over family -wage jobs.
12 A quality job is more than an hourly wage, and includes benefits and working
13 conditions.
14
15 Roy stated it also includes contributions to the community.
16
17 Brenner stated the order of the items in section four is a good order.
18 Kremen stated it is, but it is not in any order of priority. The first three or four
19 items have the highest priority, in his opinion.
20
21 Brenner suggested they amend item 7, "Avoid or mitigate for adverse
22 environmental impacts." She asked how the board votes. Kremen stated the EDI
23 Board only makes recommendations to the County Council. The Council is not
24 obligated to enact anything. He believes the committee votes by majority, but
25 strives for consensus.
26
27 Brenner stated this is a good document.
28
29 Fleetwood asked if the Council is going to vote for tentative approval of this
30 program. Kremen stated this is just for presentation at this point.
31
32 This program enables the entire community to participate in the program and
33 maximize the dollars to their maximum potential. The program is to put a
34 significant amount of money into a grant program that will be used to leverage
35 federal and State money as local matches, without having to pay. The other
36 funding would be a very low interest loan program. The purpose is not for the
37 County to make money. The purpose is to provide affordable loans and access to
38 affordable capital. The interest on the loan would be tied to the State loan rate,
39 which is very low. The program will provide a self-perpetuating stream of money
40 as the businesses are able to repay the loans.
41
42 Roy stated she would rather not see economic development with adverse
43 environmental impacts.
44
45 McShane moved to add an additional item before item seven in section
46 four, "Projects that avoid environmental impacts."
47
48 Crawford stated he would be confused if he were reading that and the next
Special Whatcom County Council-EDI Program, 5/13/2003, Page 2
1 item about mitigating environmental impacts.
2
3 Kremen suggested amending section 4.7
4 Environmental impacts."
5
6 The Council concurred, with Fleetwood and Nelson absent.
7
8 McShane withdrew his motion.
9
10 Roy referenced section 6A.1. She asked if they should have one
11 representative each for the agricultural and timber industries. They don't serve the
12 same interests.
13
14 The Council concurred, with Fleetwood and Nelson absent.
15
16 Desler stated that when they went over this, the Board wrote in an additional
17 member from the agricultural industry. The Board recommended that it could also
18 be a representative from the timber industry.
19
20 McShane stated the agricultural and timber industries are two industries that
21 are not represented well by the EDC. Kremen discussed the history of the
22 designation of "rural" counties. The purpose is to inject money into counties that
23 relied on farm, fishing, and timber industries. This program went from an annual
24 program to a 25-year program.
25
26 Brenner moved to recommend that the EDI Board include one member
27 from each of those distressed county industries, which are forest, farm, and timber.
28 She asked about the County Council chair being a member. It is the only member
29 that is not administrative. Kremen stated it does seem odd for a councilmember on
30 an advisory committee to advise the Council. However, the chair provides good
31 input, and he likes the conduit with the Council.
32
33 Crawford suggested a change of mayors of small cities to add "as determined
34 by the small cities caucus." Also, amend the fifth bullet to "Director of Whatcom
35 County Administrative Services Division." Last, remove the bullet that doesn't have
36 anything after it.
37
38 Motion carried 5-0 with Nelson and Fleetwood absent.
39
40 Dave Pros, Planning Commission Chair, suggested adding an appointee of the
41 Council.
42
43 Roy stated the Council has a representative in the form of the Chair. There
44 is a good enough working relationship between the Council and Executive. She
45 feels comfortable as it is. She asked how the agriculture, fish, and timber
46 representatives would be appointed. Desler stated the Executive would probably
47 appoint them.
48
Special Whatcom County Council-EDI Program, 5/13/2003, Page 3
Crawford suggested an amendment to section 6B.4, "...seven board
members; or their designees,: are present at an EDI Board meeting."
Brenner stated she would rather have it just be the person who is appointed
directly.
McShane stated that the suggestion is a good idea. Otherwise they might
have trouble getting a quorum at the meeting.
Brenner stated it negatively affects the continuity to have people without a
history participating in votes.
McShane stated allowing a designee on the Solid Waste Advisory Committee
has helped the continuity. The City used to not show up until they allowed a
designee to attend.
Crawford moved to amend section 6B.4, "...seven board members, or their
designees as affirmed by the chair of the EDI Board, are present at an EDI Board
meeting."
Caskey-Schreiber suggested that they allow a designee from the Port of
Bellingham, such as Steve Jilk, not just a Port commissioner.
Brenner suggested that the language be amended to "Port of Bellingham
representative,"
The Council concurred.
Motion carried 5-0 with Fleetwood and Nelson absent,
Caskey-Schreiber asked who would do marketing and outreach to get
applications, how much they would compensate the EDC, whether the EDC would
forward all proposals to the Council, and if the EDC would make a subjective
decision if it does not approve an application. Desler stated the EDC and all
governments in the area do outreach. Initially the EDC and Chamber will market to
private entities. All of the groups would market to public agencies. One has to be
a government entity to apply. Point Roberts is proposing to build a health center as
part of its fire district. A private, non-profit group came forward with the proposal,
and the County is addressing it. They don't have a marketing budget, but will see
lots of applications.
Roy asked about the areas that don't have active citizens. She asked how
they make sure that all communities know about the opportunities. Desler stated
they can put something on the website. They are trying to do the program without
adding staff. The application administration and use of the EDC is to gain the
contacts and expertise the EDC has with working with private sector groups. Those
private sector entities might be interested in investing or developing something in
the community. The EDC can link between the community groups.
Special Whatcom County Council-EDI Program, 5/13/2003, Page 4
1
2 The compensation schedule for the EDC is in the packet.
3
4 Crawford asked if this funding is in lieu of other funding the County provides
5 to the EDC. Desler stated it is not. He proposes to pay the EDC quarterly.
6
7 (Clerk's Note: End of tape one, side A.)
8
9 Brenner stated she doesn't want more than $15,000 per year from the
10 general fund to go to the EDC. Go slow. This is a good program and she supports
11 it. She is skeptical of other EDC work. Desler stated he prepared a refined scope
12 of work for the EDC.
13
14 Caskey-Schreiber asked if the County Council would still rank Washington
15 Community Economic Revitalization Team (WA-CERT) projects, and if the EDI
16 projects have to be the same. Desler stated they don't have to be the same. The
17 idea is to make the EDI Program projects better coordinated with the WA-CERT
18 process. If they want to use the monies to leverage other State and federal grants,
19 WA-CERT is one vehicle to do that. Someone would submit a WA-CERT application
20 at the same time as submitting the EDI Program application. The Council can do
21 WA-CERT prioritization three or four times per year.
22
23 Caskey-Schreiber asked if the Council would see all applications, or just
24 those approved by the EDI Board. Desler stated all applications go to the EDI
25 Board.
26
27 McShane stated all project applications would come to the Council, and the
28 EDI Board would advise the Council on which ones it liked. Councilmember Caskey-
29 Schreiber's concern is about the EDC screening the applications.
30
31 Caskey-Schreiber asked what happens if the EDC deems a project not
32 worthy.
33
34 McShane stated the only thing the EDC would deem is if the project qualifies
35 for an EDI Program and if the application is filled out appropriately. That's the role
36 he sees the EDC playing, not as a proponent of anything. Desler stated someone
37 might propose an application that is not even eligible based on the law, such as
38 something that is not a public facility.
39
40 Brenner asked if the money they appropriate through this process is only to
41 be used for public facilities in conjunction with economic development, and not
42 anything else in conjunction with economic development. Desler stated that if the
43 project ultimately leads to a public facility, then the money could be used. It has to
44 be a public facility. The list of items is in section two, EDI Program objectives.
45
46 Roy stated she believed this could be used for things other than facilities,
47 according to the Washington Administrative Code (WAC). She would like to know
48 what the law says. Desler stated that is what the law says.
Special Whatcom County Council-EDI Program, 5/13/2003, Page 5
Crawford suggested they expand section 7.3 to add a sentence
information, in fulfilling community goals and economic development." There is a
reason the EDC can do this. It is fulfilling a role of putting potential businesses in
touch with all the resources that are available.
Brenner stated she doesn't want to let the EDC end up screening applicants
rather than assisting them. Offer this service to everyone.
Crawford moved to amend section 7A.2 "...pro
All applications'; will be submitted to the County administration." He asked Mr.
Desler to finesse the language of that motion a bit. Crawford stated the Council
should see every application, even the ones that don't meet the criteria.
Caskey-Schreiber suggested amending section 7A.2, "The EDC will
prepare a written summary of every each application/proposal that it receives."
Crawford accepted the suggestion as a friendly amendment.
Motion carried 4-0 with McShane out of the room and Nelson and
Fleetwood absent.
Crawford moved to expand section 7.3 to add a sentence
Motion carried 4-0 with McShane out of the room and Nelson and
Fleetwood absent.
Crawford suggested the administration include a flow chart of the process as
an attachment to the application process.
Caskey-Schreiber moved to recommend, "All applicants will be informed
about the process for application and the process for review and approval."
Roy asked where this would go. It seems more like it is instruction to the
administration.
Caskey-Schreiber stated it is.
Motion carried 4-0 with McShane out of the room and Nelson and
Fleetwood absent.
Brenner asked how they prove the infrastructure is directly related to
providing more jobs. Desler stated it is spelled out in the application.
Special Whatcom County Council-EDI Program, 5/13/2003, Page 6
1 Crawford stated the County Council gets to vote on the applications. He
2 suggested adding language in the plan that provides assurance that the Council see
3 all the applications, no matter what. "The County,, Executive will forward all
4 applications to County Council with all recommendations for approval;', conditional
5 approval,; or rejection :of, the applications."
6
7 Caskey-Schreiber moved to amend section 6B.8, "In addition, they will
8 submit all applications submitted to the, County°Council:"
9
10 Motion carried 4-0-1 with McShane abstaining and Nelson and
11 Fleetwood absent.
12
13 Crawford asked the percentage of the rural sales tax dollars that is going into
14 this initiative. Desler stated a majority of the money would go into an EDI
15 program. The Rural Sales Tax Board discussed this. They need to use some
16 money for economic development reasons that relate to public facilities.
17
18 Crawford asked if the County Council is going to apply for a project. Desler
19 stated it would not. The Rural Sales Tax Board recommends to the Council that 40
20 percent of the money be assigned to general public facilities, up to 40 percent to go
21 to the loan program, and up to 20 percent would go into the grant program. That
22 information is not in the packet, because it is a bit premature. They may want to
23 use more or less, and should have more flexibility.
24
25 Crawford asked if it is the administration's recommendation at this time to
26 not assign specific amounts to this program. Desler stated it is also the
27 administration's recommendation to not assign all of the money at this time.
28
29 Crawford asked if an argument can be made that building a new jail is
30 beneficial for economic development. Desler stated some communities have done
31 that. The administration has the idea of a revolving loan program that will be
32 useful for generations to come. Some communities have bonded themselves for
33 the entire amount of money and spent it all. The cities are excited about the loan
34 portion of the program.
35
36 Brenner stated someone called her and stated they should use it to rebuild
37 roads. She asked if it is a possibility. Desler stated the roads in the community are
38 built for economic development purposes a hundred years ago. If the Council
39 believes that building a road is a significant economic development activity, they
40 can use it for that purpose.
41
42 (Clerk's Note: The meeting lost its quorum at 2:50 p.m.)
43
44
45 OTHER BUSINESS
46
47 There was no other business.
48
Special Whatcom County Council-EDI Program, 5/13/2003, Page 7
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ADJOURN
The meeting adjourned at 2:50 p.m.
I
Jill Nixon, Minutes Transcription
These minutes were approved by Council on June 3 , 2003.
ATTEST:
g
Dana Brown -Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
D McShane, Council Chair
Special Whatcom County Council-EDI Program, 5/13/2003, Page 8