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WHATCOM COUNTY COUNCIL
Special County Council
June 10, 2003
The meeting was called to order at 9:30 a.m. by Council Chair Dan McShane
in the Public Works Conference Room, Civic Center Building, Bellingham,
Washington.
Present: Absent:
Barbara Brenner None
Laurie Caskey-Schreiber
Sam Crawford
Seth Fleetwood
Sharon Roy
L. Ward Nelson
1. DISCUSSION WITH THE ADMINISTRATION REGARDING
PREPARATION OF THE 2004 WHATCOM COUNTY BUDGET AND
MASTER FACILITIES PLANNING (AB2003-228)
Dewey Desler, Deputy Administrator, provided handouts (on file). The
packet includes the budget development guidelines for fiscal year (FY) 2004. Staff
made projections for the remainder of FY 2003 and into FY 2004. There will be a
fund balance impact in 2004 and 2005. Whatcom County will be a bit better off
than other counties at the end of this fiscal year. He hoped actual revenues and
expenditures come together by the end of this year. If the County has a
departmental lapse of four percent, the County will be in debt by about $358,000.
Whatcom County has practiced prudent expenditures. They've been
successful at adjusting revenues and expenditures in ways to maintain good
service. The Executive's State of the County address last week was upbeat,
however, a series of things are useful to discuss.
Roy asked if the projections include funding for emergency medical service
(EMS) services. Desler stated it does. It assumes that the EMS levy won't pass.
Brenner referenced guideline five. The Council asked the administration for
proposals to charge fees that accurately reflect costs, not to increase fees for
everything. Desler stated this is the language the Council adopted at its 2002
budget retreat and in the budget document for 2003.
McShane moved to amend guideline five, "The Council encourages the
administration to
i=evenues, as well as adjust revenue StFeams review Ifees and propose fee, char
wherever appropriatp. Whenever possible...."
Whatcom County Council, 6/10/2003, Page 1
1
2 Motion carried unanimously,
3
4 Crawford stated they need to have a discussion about the potential for
5 shifting revenues to the County in a way to direct more money to the general fund,
6 perhaps at the expense of monies in other areas. That may take a vote of the
7 people. One example is that the Council may do a tax increase, but simultaneously
8 decrease the amount of flood tax in the same amount. The net result to the
9 property owner is zero. He would like the County to take this $350,000 deficit and
10 make it zero by eliminating some of the things the flood fee is paying for now or
11 not building as much into the flood fee reserves. He asked for the administration's
12 assistance to balance the budget by changing the way they generate revenue.
13
14 Desler stated the administration could bring forward options for changes to
15 the revenue stream. The administration is counting on departments to maintain
16 the level of revenue they generate, but keep spending down to create a lapse that
17 would balance the budget.
18
19 Caskey-Schreiber stated she is hesitant about playing the shell game and
20 putting that in the policy.
21
22 Roy asked if the four percent lapse is typical historically. Desler stated it is.
23 He explained where the lapsed funds come from in the normal course of business.
24
25 Nelson asked if there is a dedicated emergency reserve fund for
26 administrative functions. Desler stated the Council adopted a 15 percent balance,
27 which is approximately $9 million. Anything in excess is to fund supplemental
28 requests.
29
30 Nelson stated they should maintain the 15 percent reserves without spending
31 it down. Find other resources to make up the differences.
32
33 Desler stated the County received a high rating from Moody's because of the
34 untouched 15 percent. The County is also self -insured. That 15 percent saves the
35 County money in the long run.
36
37 Fleetwood asked why 15 percent was designated as the reserve percentage.
38
39 Brad Bennett, Finance Division Manager, explained the reasons for a 15
40 percent reserve, which includes making the County's credit rating desirable to
41 investors and Washington State's recent restricting tax initiatives. Some County
42 revenues are very volatile. They need a higher fund balance to cover cyclical
43 revenues.
44
45 Caskey-Schreiber asked if the County carries adequate insurance, and if the
46 15 percent fund balance is a large deductible. Desler stated the insurance is
47 adequate. The fund balance is use to pay the deductible.
48
Whatcom County Council, 6/10/2003, Page 2
1 Crawford moved to adopt the budget development guidelines for 2004, as
2 amended.
3
4 Nelson moved to amend guideline two, administration.,in,conjunction
5 with departments, to prioritize departmental services...." He would like
6 prioritizations to come from the departments.
7
8 (Clerk's Note: End of tape one, side A.)
9
10 N.F. Jackson, Superior Court Clerk, stated that when everything they do is
11 mandated, it's difficult to prioritize tasks.
12
13 Nelson stated they could prioritize the mandated services that are not
14 funded.
15
16 Roy stated that even mandated services have latitude to decide staffing
17 levels and levels of service.
18
19 Motion carried unanimously.
20
21 Brennen moved to amend guideline four, "...to, There appropr atej
22 consolidate or integrate similar or compatible
23 functions...." She asked if there has been any consolidation and integration since
24 last year. Desler stated they have consolidated tasks in the permit center,
25 geographic information system (GIS), and other things they are working on.
26
27 Regina Delahunt, Health Department Director, stated the Health Department
28 did two consolidations.
29
30 Motion carried unanimously,
31
32 Crawford moved to amend guideline five, „The Council,.,requests�the
33 administration 'review revenue streams 'currently generated through all existing
34 taxes, levies, and;fees in Whatcom County, and make recommendations for any
35 adjustments between them that will secure and 'enhance long-term general ,fund
36 revenue, consistent With :guideline seen, below:;"
37
38 Nelson asked how far forward they look regarding revenues. Desler stated
39 he looks five years into the future. He's looked at cost of core services and
40 revenues. He would try to keep all in balance.
41
42 Caskey-Schreiber asked if the administration already does what
43 Councilmember Crawford is requesting in his motion. Desler stated the
44 administration has done that review in the past.
45
46 McShane suggested they give Mr. Crawford time to reconstruct the language
47 while they move on. He's having trouble following the intent of the motion.
48
Whatcom County Council, 6/10/2003, Page 3
1 Crawford withdrew his motion.
2
3 Nelson stated he has trouble every year with last minute additional services
4 requests (ASR's) from departments, after the proposed budget has been submitted
5 to the County Council. He suggested amending guideline two, "ASR's that come
6 forward in August have a higher priority than those that are submitted during the
7 year." ASR requests aren't effective if they continue to see them all time, and the
8 Council doesn't know which are the priorities.
9
10 McShane stated that steps out of the purpose of the guidelines. The
11 guidelines are for the administration to use while developing the budget. The
12 Council should hold itself to the standard of not approving something unless there
13 is an ASR that is complete and make sense.
14
15 Roy suggested that the ASR's that come in throughout the year must be tied
16 to the work done during the budget process.
17
18 Nelson stated that could be a question asked on the ASR.
19
20 Caskey-Schreiber stated she doesn't want to tie the hands of a new
21 administration, which may have different goals than a previous administration, such
22 as happened in the Sheriff's Office.
23
24 Nelson stated he was concerned about ASR's that come forward at the last
25 minute during the budget process. Hold departments accountable for strategic
26 planning during the budget process. Desler stated the Charter calls for the County
27 Executive to propose the budget and supplemental budget requests. There is
28 adequate review on the part of the Executive to address the content of things like
29 ASR's, as a part of the proposals. If the Council wants more strategic planning and
30 review, they should focus on that.
31
32 Nelson stated the problem might be from the community non -profits that
33 don't submit ASR's. Desler stated those agencies do go through the same process.
34
35 Desler read the key program, budget, and financial issues for 2004 and
36 beyond from the. handout.
37
38 McShane stated they should consider item nine, employee wages and
39 benefits. If they erode wages and benefits, the County may not accomplish what
40 they want to do.
41
42 Brenner stated she is convinced that a temporary jail is necessary.
43
44 Nelson stated he sees a need for all the items. He needs more information
45 on each to prioritize them. They have to put these in a timeframe that works for
46 the budget and for solving the problems.
47
48 Roy stated they really need to keep looking at the issues listed in key
Whatcom County Council, 6/10/2003, Page 4
Whatcom County Council, 6/10/2003, Page 5
1 including public health, should be the County's top priority. She applauds Lt.
2 Wendy Jones for coming up with a compromise.
3
4 Fleetwood stated items two, four, eight, and nine on the key
5 program/budget/financial issues list are his priorities, in no particular order.
6
7 Nelson stated he needs more information on these items before he can
8 prioritize them. He can support the temporary jail if it is feasible and meets all
9 requirements. If it will cost too much to meet all the requirements, then it
10 becomes a lower priority for him.
11
12 Crawford stated:
13 • Item one: Limit to facilitation and customer service in implementing
14 existing regulations.
15 • Item two: Limit to existing or creative future funding sources. Don't
16 fund from the general fund.
17 • Item three: Wait. They don't know what it is yet.
18 • Item four: Same as item three.
19 • Item five: Wait for a presentation.
20 . Item six: Wait. Make sure there is a plan in place.
21 • Item seven: Limit it to what the federal government provides.
22 • Item eight: Start looking at reducing funding.
23 • Item nine: Assume a cost of living adjustment only.
24 • Item ten: They don't have a choice on this one.
25 • Item eleven: He is in favor of it.
26 • Item twelve: As a general policy, work within existing resources, and
27 not look at expansion of services in any areas because they are
28 looking at a budget deficit. To fight fires flies in the face of that
29 statement, but they need some flexibility.
30
31 Roy stated she concurred with Councilmember Crawford, except they should
32 keep in mind the increase in population. There will be increased service demands
33 because of an increase in people. Things will be impacted.
34
35 Brenner stated she needs more information on each item. Item Four is high
36 on her list. She's concerned about overspending on the WRIA process. All along,
37 the Council has been demanding information on future cost requirements.
38
39 Caskey-Schreiber stated Item four is important. Public safety is their
40 number one job. Can't ignore the population increase. Item two is important.
41 Dedicate a good portion of the Conservation Futures funds to that program. She
42 has concerns about current staffing at the Planning Department. The Council is
43 passing new development standards that will increase the workload. The Council's
44 actions have direct impacts on the Planning Department. Increase the real estate
45 excise tax. Support employee wages and benefits. She starts hearing complaints
46 from citizens regarding enforcement. Keep the employees from leaving. She would
47 like to know more about the other items before commenting on them. Begin
48 looking into courthouse safety issues. She hopes WRIA winds down.
Whatcom County Council, 6/10/2003, Page 6
1
2 McShane stated they have an opportunity to increase the real estate excise
3 tax. It is the only progressive tax. That will require some planning and looking at
4 where that additional money could go. They've been doing a poor job on
5 developing parks facilities. There is land that isn't developed and property that isn't
6 maintained. That could be funded through the real estate excise tax and open up
7 some money for these other items. Also, consider carefully using the rural sales
8 tax revenues. Think about maintaining the County's ability to deliver services to
9 the community. That will hopefully help economic development.
10
11 Nelson stated:
12 • Item one: Develop and map a five-year understanding of what is going
13 on with practices. Do forward casting. Increase the revenue stream
14 to offset those costs.
15 • Item three: Implementation is a high priority
16 • Item four: He is concerned with it. He is not sure a temporary jail is
17 the answer.
18 . Item five: Whatever they do, keep a sense of preserving the ideals of
19 a free public process.
20 . Item six: He agreed with Councilmember Crawford.
21 • Item seven: He agreed with Councilmember Crawford. He wants to
22 see the costs, current system, and how the Auditor wants to address
23 the issue.
24 • Item eight: Encourage looking at preservation of water quality issues
?5 in the county. Hopefully WRIA will require decreased funding.
26 Coordinate systems amongst Water Resources, Engineering, and
27 Planning divisions.
28 • Item nine: He agreed with other councilmembers. He would like to
29 see five-year forecasts.
30 • Items ten and eleven: They've already discussed these items.
31 • Item twelve: prioritize mandated demands and reevaluate non-
32 mandated services.
33
34 Last, coordinate central services to decrease costs. Coordinate mental health
35 and substance abuse services with the jail. Coordinate Water Resources,
36 Engineering, Planning, Land Use, and Building and Codes divisions to reduce County
37 costs.
38
39 Motion to adopt the budget guidelines for 2004 as amended carried
40 unanimously.
41
42 (Clerk's Note: The Council took a brief break at 11:50 a.m.)
43
44 Master Facilities Planning
45
46 (Clerk's Note: End of tape two, side A.)
47
48 Dewey Desler introduced David King, Stewart + King Associates, and Harris
Whatcom County Council, 6/10/2003, Page 7
1 Faulkner, HDR Engineering, Inc. They provided a handout (on file).
2
3 Harris Faulkner, HDR Engineering, stated the County should optimize the.
4 square footage it has before growing more. He read through the issues with and
5 recommendations for all the major County buildings (on file). Commission a
6 seismic study for the courthouse. The emergency operations center is located
7 under the oldest part of the building and would be destroyed in an emergency.
8 Relocate emergency services to a safer location. Courthouse security can be done
9 to maintain the integrity of the open atmosphere.
10
11 The jail, called the Public Safety Building, is a problem. The seismic stability
12 is a question. Life safety in that building is an issue. The jail is outmoded. There
13 are locations where the guards can't watch what the inmates are doing. These are
14 medium -security offenders. The building is too small, archaic, and dangerous. It is
15 also overloaded.
16
17 David King, Steward + King Associates, stated his organization is looking at
18 the non -justice related facilities. He read through the issues with and
19 recommendations for all non -justice related facilities (on file).
20
21 Nelson asked about the Parks Department administrative building. Desler
22 stated it is not included in this study because of cost. He will bring back a proposal
23 to the Council to evaluate park facilities, in conjunction with the new Parks
24 Department administration.
?5
26 Brenner asked if the courts have to be in the courthouse. Faulkner stated
27 they could locate the criminal courts in a criminal justice complex. Aside from
28 building new facilities, it would be a large cost to update the current buildings. He
29 discussed the population forecasts. Part of his responsibility in developing the
30 master plan is to look at the financial impacts associated with these proposals.
31 Cost is a determinant. There will be two master plan scenarios. Each will have
32 financial implications that will be presented for consideration.
33
34 The next phase is Omni Groups programming and planning. The group
35 talked to County staff about realistic operating, staff, efficiencies, and needs. This
36 data will help him project future needs.
37
38 The County furnished population forecasts to Omni to provide a sense of how
39 they anticipate the county growing. These are the medium population projections.
40 The group will provide a sensitivity analysis chart to show the square footage
41 demands on high growth, medium growth, and low growth. If the county grows
42 faster than they anticipate, they will have a plan of attack for new facilities. If they
43 don't grow as fast, the pressure is off financially.
44
45 Roy stated it seems that the relationship between county and city growth is
46 constant over time. That may not be realistic, given the requirements of the
47 Growth Management Act to concentrate growth in the cities. The relationship
48 between the cities and county growth should change.
Whatcom County Council, 6/10/2003, Page 8
1
2 McShane stated the Council should talk about that with the Planning
3 Department.
4
5 Faulkner stated the population in the county is aging. He estimates a 58
6 percent increase in overall county services in the next 20 years.
7
8 Nelson asked if the study took into account the impact of age -specific
9 populations on the percentage estimate of growth for law and justice services.
10 Faulkner stated it did.
11
12 Crawford stated they are looking at space needs in the next 20 years for 400
13 more employees. Faulkner stated the juvenile facility at the top of the courthouse
14 could be relocated to a place that makes more sense. That space at the top of the
15 courthouse could be used for office space. It is a prime area for office space. He
16 will provide more information about the number of people in the organizations and
17 the square footage needs at his August 5 presentation.
18
19 King stated he is having discussions with the Public Facilities District and the
20 Centennial Project. They are discussing whether the plans for civic buildings would
21 match.
22
23 Brenner asked if the courts have to be located within the city of Bellingham.
24 Desler stated they do.
?5
26 Faulkner stated he is concerned about the courts being located in the old
27 portion of the courthouse, and there may be merit in moving them to the newer
28 part of the building, and moving the criminal courts out of the courthouse. The
29 criminal cases could go to a regional justice facility for the County. The civil court
30 may successfully stay in the courthouse.
31
32 Desler stated he would check on the requirement for courts to be in
33 Bellingham.
34
35 Faulkner stated the Public Facilities District is very concerned about a new jail
36 facility being located where the south parking lot is located, where there civic
37 development would be. That location would not be the best in terms of a master
38 plan.
39
40 Caskey-Schreiber asked the timeline for the study of a temporary jail.
41 Faulkner stated he would start on June 18.
42
43 (Clerk's Note: End of tape two, side B.)
44
45 Faulkner continued to state that the temporary jail study would be done
46 within a week or ten days from when they begin. The temporary facility would be
47 for eight to ten years. He envisions a modular system, so components of the
48 facility could be moved and reused in a permanent facility. They are thinking about
Whatcom County Council, 6/10/2003, Page 9
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an elevated floor so they don't have to break into the existing floor. He will look at
the warehouse to evaluate the status of the infrastructure of the building.
Caskey-Schreiber asked if the study would provide more than one
development and cost option. Faulkner stated the study would probably
recommend a modular system. They have to find a way to evacuate the building in
an emergency.
This is a pretty good use for the building. The office spaces are well laid out.
There is plenty of room for the 140 inmates they want to house. He has to talk
with the jail staff about how they want to serve the facility in terms of meals and a
kitchen. There will be a detailed cost estimate for the scenarios the study
proposes.
The study will focus on the due diligence of the building, the constraints of
the building, how to use the building so they don't destroy very much of the
building. He doesn't want to do anything exotic to the building, because it will cost
too much. He wants to be able to remove and reuse the dorms.
Nelson asked about the cost consideration of the building on Lottie Street,
given the seismic nature. Faulkner stated it would probably have to be a piled
building. The fill at that location is bad, but the County owns the lot and needs to
take advantage of it. The City of Bellingham is willing to cooperate with the County
on developing that area.
OTHER BUSINESS
There was no other business.
ADJOURN
The meeting adjourned at 12:59 p.m.
s"
Jill Nixon, Minutes Transcription
These minutes were approved by Council on July 8 , 2003.
ATTEST:
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Dana Brown -Davis, Council Clerk Dan McShane, Council Chair
Whatcom County Council, 6/10/2003, Page 10