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WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
PROPOSED 2004 WHATCOM COUNTY BUDGET
October 21, 2003
The meeting was called to order at 9:02 a.m. by Committee Chair Sam
Crawford in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
L. Ward Nelson None
Sharon Roy
Also Present:
Laurie Caskey-Schreiber
Seth Fleetwood
Dan McShane
Barbara Brenner
DISCUSSION OF THE COUNTY EXECUTIVE'S 2004 RECOMMENDED
BUDGET (AUDITOR, ASSESSOR, TREASURER, ADMINISTRATIVE
SERVICES, HEALTH)(AB2003-228A)
Introduction
Dewey Desler, Deputy Administrator, stated the budget is balanced. It
maintains existing services. It adds a few key things that are important to public
safety and the criminal justice system. It takes an aggressive approach to
investing in technology and software so the organization can become more effective
in the future. The budget has other key initiatives related to more modest
approaches to adjusting facilities. They're consolidating Health Department
operations. They propose to do engineering and design in preparation for a
minimum -security jail and alternative corrections center and a triage center for
mental health issues. They will focus on the future of elections. The administration
wants to create a one -stop permit center. That will take a few months to make the
building adjustments and to rearrange staff. A lot of objectives are devoted to
improved customer service. There's a modest tax reduction related to modifying
funding. The budget prepares the county for the future. The administration tried
to follow the guidelines of the Council last June. The Executive's recommendations
are consistent with the guidelines.
Auditor's Office
Shirley Forslof, Auditor, stated the Auditor's Office
46 increase in revenue generated by the Recording Division.
47 it means they are handling more documents. There is a
48 licensing. More people are moving into the county and
received a 25 percent
When revenue increases,
$10,000 increase in
more vehicles to license.
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 1
1 They are very busy. She is always looking to increase efficiency, keeping in mind
2 public service. There aren't many changes in the Recording Division.
3
4 In the Internal Audit Division, there is a decrease because they completed a
5 contract with Moss Adams for the Information Technology (IT) Audit. It was a
6 worthwhile expenditure. Improvements were made when the audit was going on
7
8 Regarding the Elections Division, The Help America Vote Act (HAVA) of 2002
9 is enacted. Punch cards are no longer to be used for voting after January 1, 2006.
10 An appropriation for voter registration is compatible with Secretary of State's
11 statewide system, which HAVA requires. There are four venders that will interface
12 with the statewide system. The County's current vendor does not. With the new
13 system, they will immediately know if someone is registered in another county. A
14 voter can transfer registration from one county to another. Voters registering by
15 mail will be required to provide a driver's license number or the last four digits of
16 their social security number. That is a mandate from federal legislation and
17 through the Secretary of State's office. She asked to implement the new system in
18 2004 to give staff time to train and learn to use the system before conversion is
19 required.
20
21 Roy asked if there is HAVA money available. Forslof stated there is for
22 buying out-of-date punch card equipment, not for a new voter registration system.
23 She's hoping the State and federal government will come up with funding the
24 County can apply for.
:5
26 Roy asked about increased revenue due to increased customers and if fees
27 have been raised. The Auditor stated that auditor fees are all set by State law.
28
29 Forslof stated the Election Division budget includes a second part for
30 elections. It is the money they are going to get from the federal government
31 through the Secretary of State for HAVA in the amount of about $500,000. That is
32 the only money in the budget for 2004 from the federal government. It will not pay
33 for a new voting system. New funding will be required to convert to a new system.
34 She previously gave a presentation to the Council about the options. Presently, the
35 Secretary of State is going out for bids for voting devices. Begin the process of
36 contracting in 2004 with purchasing of the equipment in 2005 after they've seen
37 how it works with other jurisdictions in the 2004 presidential election.
38
39 Crawford asked where revenue is coming from as listed in the ASR's. It
40 looks like they are money ahead. Forslof stated $251,000 comes from every
41 jurisdiction that has election costs. The County bills for the cost of the elections.
42
43 Crawford stated $578,500 comes from the federal government. It looks like
44 they are getting $909,500 in revenue, and spending $876,000. They are
45 generating more revenue for elections than they are planning on spending. Desler
46 stated there are other expenditures that will count against these costs. The
47 Executive feels that how they handle elections should be something the Council
18 spends more time on during the first half of 2004. The $578,000 is being put into
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 2
1 the budget. Any more that might be needed will have to come out of reserves.
2 The decision on how they handle elections in the future is not something that has to
3 be made through this budget review process. The Council can do it effectively and
4 more deliberately during the first half of 2004.
5
6 Caskey-Schreiber asked when they need to decide which system to adopt.
7 Forslof stated the Council must decide in 2004, for purchase in 2005.
8
9 Caskey-Schreiber asked if they need more equipment if they choose a voter-
10 by -mail process. Forslof stated absentee ballots now require an optical scan
11 system. With voter -by -mail, all ballots will go with optical scan and the County will
12 have to have a few touch screen machines to meet Americans with Disabilities Act
13 (ADA) requirements. The County may have to buy a couple more readers with that
14 system. The deadline for implementation is January 1, 2006. She recommends
15 implementation during first part of 2005. She wants to see how the voting devices
16 function elsewhere before purchasing them.
17
18 Nelson stated the mission and objectives includes three objectives other than
19 the standard mission. He asked if going to the high schools is an objective. Forslof
20 stated it is.
21
22 Nelson asked if they are spending resources on it. Forslof stated they are
23 not. It's something she does.
24
?5 Nelson asked about the statewide voter registration database, and why it's
26 not outlined more in the objectives. Forslof stated it's mandated. She could
27 include more information.
28
29 Nelson asked for more information about cost allocations and timeframes for
30 accomplishing objectives. He doesn't have that information Forslof stated she
31 would put in a new system between a school election and the primary election next
32 year. When putting a system in, it requires training.
33
34 Nelson asked for more written information on timeframes and cost
35 allocations needed for implementation as an objective.
36
37 Unidentified representative from the Auditor's Office stated that information
38 was included in the ASR.
39
40 Desler stated he would provide that information.
41
42 Nelson asked for information also on the HAVA ASR. Forslof stated they
43 need to create precincts with less than 200 active registered voters, which will take
44 a Council ordinance.
45
46 Roy stated they have yet to decide that. Forslof stated that is correct. If
47 enacted, it requires a Council action.
48.
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 3
1 Roy stated it sounds like a done deal the way it's worded. Forslof stated it's
2 not. It's up to the Council. She's willing to keep polls open, but it depends on the
3 amount of funding the Council provides to comply with HAVA.
4
5 Roy stated that at some point they would like to get an analysis to compare
6 the various options.
7
8 Nelson stated that for the Finance Committee, he'd like to see the
9 department's objectives, timeframes, and expected costs. Forslof stated the money
10 was in the budget because that's the money they know they are going to get from
11 the Secretary of State. A lot more discussion about how they decide to comply with
12 HAVA is required.
13
14 Forslof stated they will require an election center. The ballots are big. There
15 is not enough space presently. The reader machines are large.
16
17 Crawford asked if the issue was warm storage space, and if they need to
18 expand The Auditor's Office space. Forslof stated the storage space is the main
19 issue. They need a separate space to count ballots, which she doesn't have.
20
21 Crawford asked if a storage space away from the courthouse would also be a
22 place to count ballots. Forslof stated it could be.
23
24 Desler stated this is an important decision. It will have an impact on the
'5 Auditor's Office. Potential expenses will vary depending on the Council's decision.
26 Expect capital adjustments in a separate building. Making adjustments at the
27 courthouse depends on a Council decision after full discussion of the options. When
28 the Council makes the decision, the administration can make building adjustments,
29 have a lease, or construct any facilities necessary. The administration supports the
30 Auditor in election management system conversion. Its an unfunded mandate the
31 County needs to move ahead with.
32
33 Crawford asked how much more the County generated from recording fees
34 this year from last year. Desler stated the administration will get additional detail
35 on the answer to that question. It is approximately $1.472 million.
36
37 Forslof stated the total recordings as of September 2002 was about 5,000.
38 This September, there were approximately 8,000 recordings. That is just deeds,
39 liens, maps, and other documents that are being recording. All the money
40 generated from the fee increase went to the State.
41
42 Nelson stated the increase is from 66,000 in 2002, they project 80,000 in
43 2003 and 82,000 in 2004. Forslof stated she projects an increase in refinancing
44 and deeds of trust recordings. The County gets money every time there is a real
45 estate transaction. The deed of trust is recorded each time at a fee of $19 plus the
46 number of pages in the document.
47
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 4
1 Nelson asked the change in revenue collected from 2002 to 2003 in a dollar
2 amount. Forslof stated she does not have that information, but she can get it. Of
3 the fee, $5 stays with the County, $1 goes to the Auditor operations and
4 maintenance (O&M), $1 goes to the State O&M, $2 goes to archives, $10 goes to a
5 homemaker fee, and $1 goes to frauds and investigations.
6
7 Crawford stated they are projecting 80,000 documents to be recorded. If the
8 average fee is $20, it's $1.6 million. He realizes that it mostly goes out to other
9 jurisdictions. Forslof stated the homemaker fee is for low-income housing. It is a
10 dedicated fund.
11
12 Desler stated the budget includes a $300,000 appropriation for housing. The
13 details of where that money goes has not been decided.
14
15 Roy asked if there will be a discussion. The program is directed at very low
16 income and homeless people. The administration is working with a group of people
17 in the community. The decision will require an interlocal agreement between the
18 County and all cities. Once they've implemented the program, applications will be
19 collected.
20
21 Nelson stated something like that should be part of the Auditor's Office
22 objectives for the year. Forslof stated there are many places the recording fee goes
23 to.
24
:5 Roy asked how long the $5 fee has been stable. Forslof stated the fee has
26 been $5 for years. Auditors across the state have tried to get the legislature to
27 increase the fees. Other organizations have used recording fees as a way to patch
28 on other fees.
29
30 Forslof continued to state that the Auditor's O&M will fund other departments
31 for the imaging project to make documents more easily accessible to the public. It
32 will also increase the staff's ability to find documents easier. She would like to get
33 documents online with this request. She will upgrade the recording system to a
34 more modern system. The goal is to get the documents online. When e-recording
35 becomes available, it should be easy to implement in a cost-effective way.
36
37 Crawford stated he is a client of the Auditor's Office weekly. The level of
38 customer service is excellent.
39
40 Assessor's Office
41
42 Keith Wilinauer, Assessor, stated his office has no ASR's. His office is
43 operating at the status quo and maintaining the pressure to do more with less. The
44 cyclic nature of his business includes deadlines that must be met and operations
45 that must coincide with a yearly operational cycle. He is not exhibiting a lot of
46 leeway under those pressures. There is no room for moving. They are finishing in
47 the nick of time every year. They are maintaining and increasing levels of public
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 5
1 service, increasing availability to information through the use of technology, and
2 enhancing operations at every opportunity in a cost-effective manner.
3
4 (Clerk's Note: End of tape one, side A.)
5
6 Willnauer continued to state that two things are changing. There is an
7 increase in the number of building permits. The increase in building and permits
8 results in an increase in his office activity. Building activity increases result in the
9 increase in the amount of recording documents for the Auditor, and also increases
10 in the amount and numbers of building permits and new construction. Building
11 permits are up 30 to 40 percent for single-family residences. They have mitigated
12 the increase in work to use reserve time and maintain a stable, trained staff. That
13 means productivity goes up.
14
15 He is starting to see more inquiries from his office. It relates to the use of
16 property tax as an expanded revenue -generating mechanism. For ten or more
17 years, the Assessor's Office has not really seen any appreciable increase in property
18 tax levy activity. In the last year, they are seeing more and more activity from the
19 public. He's starting to handle the results of a dynamic increase in revenue from
20 property tax activity.
21
22 Crawford asked the annual new construction increases in recent years. He
23 recalled that revenue amounts go up about $400,000 per year. Willnauer stated he
24 doesn't have the exact figure. New construction increases equate to a direct
'5 increase in general fund revenue. From 2003 to projected 2004, there is a
26 $300,000 increase to the general fund just from new construction.
27
28 Desler stated they estimate additional revenue in 2004 in property taxes for
29 new construction in the amount of $466,000 for the general fund.
30
31 Crawford asked if Intalco gets a property tax reduction. Willnauer stated
32 there was a corrected evaluation. The Assessor's Office reevaluated Intalco
33 initially, and Intalco appealed the valuation within the correct timeframe. It took
34 some time to complete the appeal process. The result was an adjustment in their
35 valuation, which is not unusual. It was not a negotiated settlement with anything
36 to do with the problems at Intalco or any kind of tax incentive to forestall the
37 facility's closure. It had more to do with the economics of the situation facing the
38 plant, particularly the power situation. When they establish and agree to a further
39 reduction, the reduction is in place for four years, during the valuation cycle. He
40 expects that valuation and revenue collection to remain unchanged for that four
41 year period.
42
43 Crawford stated British Petroleum (BP) is claiming the co-gen facility will
44 generate a significant amount of revenue for the County when it's built. He asked
45 the timeframe when the Assessor can begin collecting taxes. Willnauer stated
46 whenever value is added to the property, according to the statute, the County can
47 collect revenue. He looks to a 30 percent completion before putting construction on
18 the tax rolls. He puts it on the assessment roll one year, but the tax is collected
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 6
1 the following year. It doesn't appear as revenue for up to two years from its
2 occurrence.
3
4 Nelson asked how they are doing with getting maps online. Willnauer stated
5 they are done.
6
7 Crawford stated they don't have the recorded maps on line. Willnauer stated
8 tax parcel maps are all online.
9
10 Nelson asked about work with other departments in getting coordinated with
11 computer systems. That is a step to fix communications between the Planning and
12 Development Services( PDS) Department, Auditor's Office, and Treasurer's Office.
13 Desler stated the one -stop shop proposal deals with the Planning Department,
14 Public Works Department, Engineering Division, Flood Division, and Environmental
15 Health Division. The Assessor is cooperating in ways appropriate with his
16 department, but it's not integral for the one -stop shop proposal.
17
18 Nelson asked if the Auditor and Assessor information is uniform. Willnauer
19 stated it is. Anyone who has access to the Assessor's system within the County
20 intranet is using it dynamically. This includes all County departments and City
21 departments. That communication is still somewhat questionable out at the
22 Northwest Annex.
23
24 Desler stated the County is creating and working on a common geographic
25 information system (GIS) that ties together the databases in all these departments.
26 They are still pulling that project together.
27
28 Nelson stated one objection and goal from 2002 was that the administration
29 was continuing to work with departments to get that system going. He still gets
30 complaints from people about not getting accurate information. He asked where
31 this objective is listed in the budget documents. Desler stated the GIS project they
32 are engaged in will lead them to conclusion of that in the future. In terms of
33 providing information to people on the internet, there is a separate proposal in the
34 budget to move forward.
35
36 Nelson asked if this is a project that the Assessor is working on with the
37 administration. Desler stated it is.
38
39 Nelson stated it is important in terms of coordination for the citizens to
40 understand.
41
42 Crawford asked if the Assessor gets the information from PDS or the Auditor.
43 Willnauer stated he gets information from the Auditor. The entities that are able to
44 use the Assessor's system is the best coordination they can provide. The Building
45 and Codes Division does not have that system. Because of the lack of fiberoptic
46 connectivity in the Northwest Annex, the divisions out there are not able to logon
47 the way entities in Bellingham can do.
48
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 7
1 Desler stated the Council has approved a project to set up those fiberoptics.
2
3 Willnauer stated he is looking at moving Assessor's data into an entire
4 coordinated system. That would be the GIS system they are working on.
5
6 Brenner asked if this is unique to the offices at the Northwest Annex, or if it
7 includes other individuals in the county. Wilinauer stated that without fiberoptic,
8 it's a slow and cumbersome system. Other individuals in the county can access the
9 information on the internet. He's talking about the internal County intranet. His
10 commitment is to work with the overall organization to provide access to the
11 Assessor's information.
12
13 Nelson asked they have funding to complete fiberoptics and if the system
14 would require GIS upgrade for all departments. Desler stated it does have the
15 funding. It is budgeted for 2004.
16
17 Willnauer stated the Assessor's Office is a participant in the memorandum of
18 understanding (MOU) to coordinate County GIS activity.
19
20 Nelson asked if they expect any increases in permitting, given the low
21 interest rates. He asked if the Assessor's Office is affected by remodels. Willnauer
22 stated it is. Overall, all real estate activity increases affect him.
23
24 Crawford asked how, with all the new activity, they have held the line. He
25 asked if technology is making the difference. Willnauer stated it is. The website
26 application has been phenomenal. The amount of information available to average
27 citizen and business users is incredible. The number of hits on the website is
28 through the roof. When the website goes down, he hears about it. Individuals
29 access their own property all the time and check for mistakes. The Assessor's
30 Office makes those corrections. Commercial entities are using the database much
31 more. His staff is not handling a lot of singular telephone and in -person office
32 inquiries. That activity is not down, but it has not gone through the roof with the
33 increase in real estate activity. His largest user base is made up of other County
34 employees.
35
36 Caskey-Schreiber asked if the Assessor's Office has anything to do with the
37 real estate excise tax (REST). Willnauer stated it does only in terms of analyzing
38 the document for sale price indication. It's a Treasurer's Office function.
39
40 Treasurer's Office
41
42 Barbara Cory, Treasurer, stated she would talk about last year's goals and
43 the increased activity in the Treasurer's Office. The increased real estate activity
44 impacts the Treasurer as well. Her office processes the real estate excise tax
45 (REET), which has increased substantially this last year. Although they are not
46 earning as much from interest earnings, a lot of people are refinancing houses.
47 There has been a lot of activity in changes to each home account. Last year, they
48 had about 39,000 changes. She is estimating 45,000 this year.
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 8
1
2 Last year, she had difficulty working with the vendor in getting tax
3 statements out. She has worked with the State to get the statements out. They
4 were more successful getting the statements out this year. She is pleased with the
5 State and will continue to improve on that arrangement. She would like all tax
6 statements mailed by February 15 each year.
7
8 The interest earnings rate is low on investments. The pool in which they
9 operate helps increase those investments. They are only earning 2.80 percent on
10 investments, which would be not as good if they were in the State pool.
11
12 They are working on a debt policy for the County. Councilmembers McShane
13 and Nelson have been working with the Administrative Finance Committee. The
14 committee reviews and develops investment and debt policy. It is close to bringing
15 the Council a final version of the debt policy.
16
17 Her additional services requests (ASR's) were not approved. She requested
18 that a .5 full-time equivalent (FTE) employee be increased to full-time, based on
19 the complaints from customers who are spending more time waiting in line. She is
20 responsible for processing REET, which is very complex and time-consuming. She
21 only has two cashiers to process all the REET transactions, all the tax payments,
22 and all the district deposits. Having only two cashiers causes weekly administrative
23 problems in trying to figure out how to manage the customers who are coming into
24 the office and the employee time. Change the .5 FTE to a 1.0 FTE. As a half-time
25 position, she has to pay a half-time employee full medical benefits if that employee
26 works more than 80 hours per month. An increased cost to full-time is only
27 $12,416. She is already incurring the cost of full medical benefits. Under State
28 law, she is allowed by REET to keep one percent of the transactions to cover the
29 County's cost. From 1998 to 2002, revenue for that category has increased 41
30 percent. In the activity for 2003, the increase is 16 percent for this year alone.
31 That's about $15,000, which more than covers the request for the .5 FTE. It will
32 allow her to make changes in the structure of her department.
33
34 Nelson asked where the workload is increasing from. Cory stated the
35 increased workload is from REET.
36
37 Nelson stated the REET projection for 2004 drops. Cory stated the REET
38 transactions are more complex. It takes a considerable amount of time to review
39 them and make sure they are correct.
40
41 Nelson asked how they are more complicated. Cory stated there are changes
42 to the law about reviewing the complete legal description before they can process
43 it. That change was made two or three years ago.
44
45 Nelson stated he needs more information to evaluate the request. He needs
46 to know changes about timeline and workload to justify the request. He can't see
47 that the workload has increased. In 2000, they did 12,000 transactions. They are
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 9
1 projecting an increase in 2004 of 500 transactions. In actuality in 2002, they only
2 had 11,300 transactions, which was less than in 2000.
3
4 Crawford asked if there ever was a time when there wasn't lines at the
5 Treasurer's Office. Cory stated the waiting lines they are experiencing has only
6 happened due to the increase in REET activity. It has a lot to do with the
7 complexity of the transactions. It takes a lot longer for the cashier to review the
8 transactions. It's not just about volume. It's also about the complexity of the
9 transaction.
10
11 Nelson stated he needs more information on those changes.
12
13 Caskey-Schreiber stated the first six months of last year, they collected
14 $900,000. The first six months of this year, they collected $2.1 million. The level
15 and complexity has increased significantly. That's another reason why they should
16 increase the REET one -quarter percent and fund the extra staff.
17
18 Nelson stated looking just at the dollar amount can be deceptive. They have
19 to look at actual workload.
20
21 Brenner stated one percent of collection is supposed to be used to ensure an
22 efficient operation. If there are lines and backups, it seems they have an obligation
23 to make sure service is efficient. She's impressed that the request is not much,
24 because they are already paying full benefits. She asked what happens if these
25 amounts flatten out or go down if the County has increased staff. Cory stated real
26 estate activity is cyclical. They have continued to see it increase because the
27 building is going on. The County has more people and more sales between people.
28 Even if there is not construction activity all the time, there may be more reselling.
29 There will not be much decline in REET activity.
30
31 Crawford asked for an administrative response to the ASR. Desler stated the
32 administration took into account all issues with all departments in terms of
33 workload. The processing fee is up slightly, but it also goes to pay for the staff in
34 the Treasurer's Office through the general fund.
35
36 Crawford stated that when they go to record deeds, they have to make sure
37 taxes are paid. People spend 20 to 30 minutes standing in line and waiting. It's
38 frustrating. It's ironic that there is a charge of $2 or $3. In the Auditor's Office, it
39 takes them five minutes to record everything, and they get charged $150. From a
40 customer service perspective, the perception is that there is a real bottleneck. He
41 suggested coordinating with the Auditor to educate the public about how to file the
42 various transactions. Cory stated she has tried to do that, mostly with the title
43 companies. The problem is constant turnover and having enough staff time.
44
45 Crawford stated that if someone is not available at the counter, someone
46 tends to come out from the back to handle the transaction. He asked about cross-
47 training opportunities. Cory stated the Treasurer's Office handles a lot of money.
48 She has to be very conscious about internal controls. She can't easily have
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 10
1 someone on staff fill in for a cashier, because of internal controls. That's why she's
2 limited in assigning who can back up the cashiers. Typically it's her, her chief
3 deputy, or her cash management administrator.
4
5 Roy stated the amount requested is small. She asked if they are under
6 different contractual obligations between a half-time and a full-time individual. The
7 Council is trying not to add a lot of FTE's. Desler stated the benefit is the
8 variability. The increase in cost is the basic hourly rate. There are no different
9 contractual obligations.
10
11 Nelson asked if communications between Assessor and Treasurer systems is
12 okay. Cory stated it has always been good because they use the exact same
13 database. An ASR not approved is the Treasurer's Office operating system report.
14 She has worked with the administration this year to identify projects that they need
15 in order to improve that system. The administration set aside some money to do
16 that. The support that the administration has agreed to provide for specific
17 projects is one-time support. She still needs ongoing system support for the
18 Treasurer's and Assessor's database operating system. Mr. Desler is concerned
19 about the County's facilities and the investment the taxpayers have made to make
20 facilities viable and usable by keeping up with maintenance. They need to do that
21 exact same thing with their database. They need upgrades and changes to
22 maintain the system. She would like an agreement with Compu-Tech to
23 strategically plan for the system support.
24
25 (Clerk's Note: End of tape one, side B.)
26
27 Cory continued to state she would like to work strategically to set aside an
28 amount of money each year, so the Council won't see huge requests coming
29 forward at one time. Upgrades would be done gradually over time.
30
31 Nelson asked about the changes in programs that can occur in a period of
32 time. Some of those programs can be quite costly. He asked if there is a method,
33 such as through the equipment revolve and rental (ER&R) fund, to do upgrades for
34 various departments. Desler stated the administration considered it. The
35 administration earlier requested $90,000 for adjustments to this system. They are
36 negotiating an agreement with the Treasurer's Office and Compu-Tech for another
37 part of this effort. He hopes that part of that money would be given to the County
38 as a credit by Compu-Tech for future work. The administration is still working on
39 the contract with Compu-Tech. How they address information systems is critical to
40 the future of the County. Some of the most significant improvements to address
41 customer service is in technology, software, and information systems staff. The
42 County is thin in that area. The administration is not proposing to make
43 adjustments at this point. In the next few months, they intend to present a
44 strategic plan for information systems to the Council. The administration cares
45 about more than just facilities.
46
47 Cory stated she submitted an ASR for bankruptcy legal support.
48 Bankruptcies are increasing. Currently there are 105 cases that include bankruptcy
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 11
1 review. The plans are very complex. The amount of taxes in jeopardy through the
2 bankruptcy cases is over $565,000. She talked to the Prosecutor about possibly
3 hiring an outside attorney who has expertise in bankruptcy for the County to make
4 sure the County and its districts receive the funds they're entitled to. The
5 Prosecutor agreed.
6
7 Brenner asked about the foreclosure rate. Cory stated there is no way to
8 estimate the number of parcels they will foreclose on.
9
10 Administrative Services Department
11
12 Dewey Desler, Deputy Administrator, stated there are four divisions in the
13 Administrative Services Department.
14
15 Caskey-Schreiber stated the one -stop shop is all about customer service.
16 Yet, Treasurer Cory was just complaining about not being able to facilitate customer
17 service to people who are paying into the system. She asked why the one -stop
18 shop is so necessary at the expense of other things that are just as vital in the eyes
19 of others. Desler stated many areas in County government have shortfalls. The
20 administration needs the Council's help in prioritizing. Often he has to work with
21 how to set priorities with the managers. His first response when people ask for
22 more is to readjust how things are being done.
23
24 The one -stop shop is a priority of the Executive to respond to people who
25 have to go to multiple places to get a permit. The only increase is a half-time
26 environmental health officer who would be placed at the Smith and Northwest
27 Annex to handle the permits. The $273,000 cost is a one-time expense to make
28 adjustments to the building. The difference is that it's a one-time expense.
29
30 Roy asked the funding source for the $273,000. Desler stated funding would
31 come from the rural sales tax fund, not the general fund.
32
33 Roy asked about the remodeling that needs to happen to the building. She
34 asked if they would remodel with the ability to reconfigure the place in the future if
35 needed. Desler stated they are working master facilities planning. They are trying
36 to not spend too much money on buildings that are not useful in the long-term. In
37 this case, he's proposing to add portables to the building and make adjustments to
38 the counter space to make it larger.
39
40 Crawford asked about money for the minimum security jail, election center,
41 and storage facility. Desler stated it's placeholder money until the Council decides
42 which way to go. The money also comes from the rural sales tax fund, not the
43 general fund. Responding to the issues around jail space is critical. The
44 administration is trying to address long-term issues comprehensively through the
45 master facilities planning process. However, the Executive and Sheriff would like to
46 do something more immediate with regards to minimum -security facilities. They
47 have started a process to seek zoning changes in the City of Bellingham to allow a
48 jail. The County is involved in an application process to the City of Bellingham to
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 12
1 use property that the City currently owns for that use. If approved in December,
2 the administration would bring a proposed contract to the Council to begin
3 architectural work.
4
5 Crawford stated he's concerned about deciding on a particular location. He's
6 wondering about expanding this courthouse and Sheriff's Office to the north. The
7 County owns this portion of Lottie Street, which doesn't need to be a street. The
8 County owns some decrepit buildings on the north side of Lottie that can be
9 rehabilitated or changed. Desler stated they have a choice about how they
10 approach many issues. The Executive and Sheriff have a proposal to do something
11 with a minimum -security facility that is located away from the courthouse complex.
12 The decision has not been ultimately made. Contracts have not been drawn up yet.
13 The County Council ultimately is the primary decision -maker. Any funds allocated
14 could be diverted or used for more extensive work around a different location if the
15 Council chooses.
16
17 Crawford stated today is the first he's heard that they need an elections
18 center in addition to storage. He's concerned about decentralization of County
19 services that will result in operational inefficiencies. Desler stated that is a key
20 question the administration should continually address. They are trying to answer
21 that question through the master facilities planning process. They are looking at
22 accommodating all future County operations in a given site. The government may
23 be better served with many operations on one campus. The pressure to do
24 something quickly is significant in this organization. They are trying to respond to a
25 crisis. That's why they are trying to take a longer -range approach. The type of
26 facility they are considering could be converted and sold for other light industrial
27 applications. It may not be a permanent solution. The Auditor will tell them that
28 an election center has to go somewhere. Either lease space or construct space.
29 Elections are critical and long-term to the County. They are talking about a
30 medium or long-term solution for a County building. The administration is not
31 making that final recommendation yet until he sees that a lot of issues are dealt
32 with.
33
34 Caskey-Schreiber asked the reason for the need for hiring rather than
35 subcontracting for a facilities maintenance specialist for preventative maintenance.
36 Desler stated it's much less expensive to acquire an individual than it is to
37 subcontract the work. This expense has been a one-time expense for a many
38 years. They need to convert it to a more regular position so the County can attract
39 and retain a highly qualified maintenance person. The person maintains air
40 conditioning, electrical, plumbing, and all the invisible operations of the buildings.
41
42 Brenner asked if the administration is including funding for fixing an area of
43 the jail that is unclean. Desler stated that building is being extensively overused,
44 and it's wearing out. The County will be lucky to get another six or seven years out
45 of that building, the way things are deteriorating. The administration has tried to
46 address issues regarding leakage in the sally port. A lot of problem is with inmates
47 who are trying to destroy the facilities. The administration is trying to deal with
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 13
1 problems with plugged pipes and plumbing. There is about $90,000 budgeted to
2 deal with problems with courthouse drains from the roofs.
3
4 Mike Russell, Facilities Supervisor, stated part of the problem is the
5 prisoners. They are stuffing things down the drains. That's causing a lot of
6 backup. Staff is cleaning it using bleach. It's a daily problem. The prisoners even
7 write on the walls with some of this stuff. They are adding $10,000 to the budget
8 to specifically take care of plugged drains. Staff has to industrially pull the items
9 out of the drains. However, the inmates have to clean up the mess afterward.
10
11 Crawford stated he still gets complaints about the sound system in the
12 Council chambers. Russell stated they made substantial improvements a couple of
13 years ago. The Council could add a speaker. The Council Office staff can submit a
14 work order for an additional speaker.
15
16 Caskey-Schreiber stated the County already has someone who is a
17 preventative facilities maintenance specialist. Russell stated the County has a
18 heating/ventilation/air conditioning (HVAC) position and a preventative
19 maintenance position who checks everything to make sure things don't breakdown.
20
21 Caskey-Schreiber stated Western Washington University has only one
22 maintenance person for three buildings. They are already well staffed. Russell
23 stated that according to Omni Group statistics, the County is six staff short based
24 on square footage the County owns. The staff is running constantly trying to keep
25 things going.
26
27 Crawford asked about money for exterior issues with the courthouse. Desler
28 stated the administration is not prepared to recommend that at this point. They
29 need to do more work on it. They need to address it at some point in 2004.
30
31 McShane asked about furniture for three new conference rooms upstairs.
32 Desler stated the administration took unused space and converted it into
33 conference rooms on the fifth floor. The rooms haven't been open because there is
34 no furniture. When open, they will take the pressure off the need for conference
35 rooms in the courthouse, which is one of the County's greatest needs.
36
37 McShane asked about sealing and re -striping of all parking lots. Russell
38 stated he will limit how much they do this year because of budget restraints.
39
40 McShane asked about the change of use of the south parking lot. Desler
41 stated the striping will be useful, even if buildings go up in that space. It will take a
42 long time to get buildings up.
43
44 Russell stated striping is done annually. Sealing the parking lot is to protect
45 the water from infiltrating and freezing underneath. The lot is coming apart. If
46 they don't protect it now, it will be much more expensive to re -asphalt the lot.
47
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 14
1 McShane asked if they're sealing at a rapid enough rate now that they aren't
2 creating a problem. Russell stated they can deal with it at this point.
3
4 Brenner stated the ground around councilmember parking spaces gets
5 saturated and they can't walk on it. Russell stated he turned the problem over to
6 the grounds crew.
7
8 Brenner stated someone is going to get hurt. Russell stated he will push the
9 issue.
10
11 Nelson stated the County has had problems with management and
12 harassment. He asked how the administration has progressed toward goals that
13 include a lot of training. He asked if there is a requirement that supervisors attend
14 meetings. Simply attending meetings doesn't mean they are making sure
15 employees are working in a safe environment. Desler stated every employee is
16 asked to go through harassment training. Employees have complied well. Some of
17 the more independent branches of government have not all gone through the
18 training yet.
19
20 Nelson asked about the numbers.
21
22 Karen Goens, Human Resources Division Manager, stated they are nearly
23 done training all employees. Supervisor training occurred recently. The first line of
24 defense is properly trained employees. The training criteria have been met. Those
25 employees who have not yet been trained will receive training soon. People are
26 getting the message.
27
28 Brenner stated the harassment workshop should include more types of
29 harassment other than just sexual harassment.
30
31 Caskey-Schreiber stated the current building staff is doing a good job. The
32 janitorial staff is also doing a very good job.
33
34 Health Department
35
36 Regina Delahunt, Health and Human Services Department Director, stated
37 they've been through most of this information at the recent Board of Health
38 meeting. All ASR's were recommended for approval in the Executive's budget.
39
40 Caskey-Schreiber asked if she will have to eliminate any programs. Delahunt
41 stated she will not. There will be some decreases in programs due to decreases in
42 state funding, and some shifts in workloads.
43
44 Crawford asked if there is still I-896 backfill. Desler stated there is.
45
46 Delahunt stated she is working at the State level to get a stable source of
47 public health funding for the next biennium.
48
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 15
1 Nelson stated he is pleased with the needle exchange program. He asked if
2 there have been any complaints about needles in parks. Delahunt stated there has
3 not been. Dac Jamison told her that reports of needle sticks in parks is
4 nonexistent. Needles have become a commodity. The officers are not finding any.
5
6 Nelson stated part of that program was to get people into treatment. He
7 asked about increasing numbers of people going into treatment. Delahunt stated
8 they'd like the numbers of people going into treatment to increase. She will
9 continue to work on getting people into treatment.
10
11 (Clerk's Note: End of tape two, side A.)
12
13 Delahunt continued to state that they have gotten quite a few individuals into
14 treatment.
15
16 Nelson stated he is concerned about the tobacco prevention program. He
17 asked if they are doing cost assessments. There is a concern about litigation from
18 tobacco companies to counties, and the State's lack of support. Delahunt stated
19 that if the County enacted a smoke -free ordinance, there would be a potential for
20 litigation from tobacco companies. Through the COMMIT program, they meet with
21 other community partners. They are expanding the focus of COMMIT. More
22 partners are coming to the table now. When an ordinance comes forward, they will
23 look at that liability risk. The State is looking at a statewide smoke free ordinance.
24
25 Roy stated she is concerned about setting priorities. The Health Department
26 is one of the most important departments, given the big picture. She asked if the
27 Health Department administration adjusted it's ASR's based on the money they
28 knew was available. She would like to know what is really needed, if money were
29 no object. They don't get to true priorities without having those kinds of
30 discussions. She asked what the added employee would do. Delahunt stated the
31 new FTE would provide extra capacity in the food program and environmental
32 health program.
33
34 Roy asked if the Health Department is able to respond to increased requests
35 and needs. Delahunt stated the ASR's she submitted are based on what is doable,
36 given County financial circumstances. One problem with public health is that much
37 of the funding received is very specific about how it can be used. They can't do
38 many aspects of environmental health because the department is very fee -driven.
39 Very few services in the Environmental Health Division are paid for by a fee. There
40 is no fee to cover some activities she'd like to address. That is the same with
41 community health. The leading cause of death is heart disease. Underlying causes
42 are nutrition, physical exercise, and smoking, which are under -funded.
43
44 Desler stated the State Department of Health and the local Health
45 Department have a comprehensive plan that looks at those broader issues. He
46 expects the Health Department management to use that plan as a basis for how to
47 approach activities and services. Often, they have to address those activities and
48 services based on where they will get the revenue to pay for the services. The
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 16
1 Health Department has been very responsible about how to address those issues.
2 There are lots of things they can do. The Council can prioritize.
3
4 Nelson stated the Board of Health exists to hear concerns about public health
5 in the community.
6
7 Delahunt stated the Board of Health does prioritize issues in the community.
8
9 Desler stated pages 40 and 41 of Volume I of the proposed 2004 budget
10 include a pie chart that displays where the administration puts the County cash
11 resources.
12
13 Crawford asked about the unapproved request for retirement. Desler stated
14 the administration asks departments to identify those who will retire. The
15 administration budgets the retirement costs in a separate fund, under non-
16 departmental. At the point the employee retires, the lump sum from the
17 designated fund is distributed. It's not expended inside the department's budget at
18 this point in case the retirement doesn't happen.
19
20 Caskey-Schreiber asked if two budgets are being prepared according to the
21 result of the emergency medical service (EMS) levy vote. Desler stated the budget
22 is prepared assuming the EMS services will be taken out of the general fund. They
23 anticipate that revenue will be about $56.5 million. Ongoing expenditures are
24 slightly above that. There is an effective deficit of $251,000. One-time
25 expenditures total $1.3 million. The beginning fund balance for 2004 will be $14.6
26 million. When they subtract the deficit and one-time expenses, the ending fund
27 balance at the end of the 2004 will be slightly more than $13 million. If the levy
28 passes, the County would have a deficit of $350,000 overall for the year. The
29 reserves will not be used up as quickly if the levy passes.
30
31
32 ADJOURN
33
34
The meeting adjourned at 11:37 a.m.
35
36�
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37
38 Jill Nixon, Minutes Trbnscription
39
40
41 ATTEST:
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43
44
45 �
46
47 Dana Brown -Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
wford, Committee Chair
Finance and Administrative Service Committee - 2004 Budget, 10/21/03, Page 17