WHATCOM COUNTY COUNCIL by l00IJz

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									     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1                            WHATCOM COUNTY COUNCIL
 2                  Finance and Administrative Services Committee
 3
 4                                    February 12, 2002
 5
 6         The meeting was called to order at 12:10 p.m. by Committee Chair Sam
 7   Crawford in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
 8
 9         Present:                                       Absent:
10         Dan McShane                                    None
11         Sharon Roy
12
13         Also Present:
14         L. Ward Nelson
15
16
17   COUNCIL "CONSENT AGENDA" ITEM
18
19   1.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
20         PURCHASE OF A VARIETY OF ROAD MAINTENANCE PRODUCTS USING
21         THE WASHINGTON STATE CONTRACT FOR ROAD STRIPING PAINT
22         AND BEADS IN THE AMOUNT OF $375,000; HERBICIDES IN THE
23         AMOUNT OF $75,000; TIRES IN THE AMOUNT OF $50,000;
24         GUARDRAIL MATERIALS IN THE AMOUNT OF $50,000; AND
25         RUBBERIZED ASPHALT IN THE AMOUNT OF $30,000 (AB2002-089)
26
27         McShane moved to recommend approval.
28
29         Motion carried 2-0 with Roy out of the room.
30
31   2.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
32         PURCHASE OF LIGNOSITE FROM SOLE SOURCE MEENDERINCK LLC
33         FOR DUST CONTROL ON COUNTY ROADS IN AN AMOUNT NOT TO
34         EXCEED $85,000 (AB2002-090)
35
36         McShane asked if there has been an increase in cost since Georgia-Pacific
37   closed.
38
39         Mary Green, ER&R Manager, stated there has been a slight increase, but it’s
40   not huge.
41
42         McShane moved to recommend approval.
43
44         Motion carried 2-0 with Roy out of the room.
45
46   3.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
47         PURCHASE OF THREE POLICE VEHICLES USING THE WA STATE


                Finance and Administrative Services Committee, 2/12/2002, Page 1
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1         CONTRACT FROM DWAYNE LANES DODGE, IN THE TOTAL AMOUNT OF
 2         $58,077 (AB2002-091)
 3
 4         McShane moved to recommend approval.
 5
 6         Motion carried unanimously.
 7
 8   4.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO RENEW
 9         PROPERTY INSURANCE (AB2002-092)
10
11          Dewey Desler, Deputy Administrator, stated this coverage is from the Unity
12   Group, their broker for many decades. The County uses insurance to cover many
13   millions of dollars in County property. The key thing is that the cost of the coverage
14   has increased 32 percent this year. It amounts to almost $28,000. It represents
15   lowering of some of the coverages with higher deductibles. Administration is
16   concerned. According to the risk manager and the broker, this is the best policy
17   they can get in the marketplace today.
18
19         Crawford asked if the cyber risk and terrorism exclusions are new. Desler
20   stated they are.
21
22          Crawford asked if those exclusions are becoming typical. Desler stated Mr.
23   Hanson indicates that virtually all property coverages contain language excluding
24   terrorism. There is a broad definition of what that means. Until the federal
25   government steps in, governments and corporations will have to deal with these
26   kinds of exclusions.
27
28         Crawford asked if the County has any means other than its own financial
29   reserves to handle a loss due to terrorism. Desler stated the County also has
30   bonding capacity. Hopefully the federal government will help them. Under this
31   coverage, the County is exposed.
32
33         Nelson asked if the administration recommends increasing the deductible
34   from $25,000 to $50,000. He asked what Exhibit 2 referred to.
35
36          Barry Hanson, Unity Group, stated there are two separate policies. There is
37   a property policy and a boiler and machinery policy. The recommendation on the
38   property policy is to not make any changes to the deductible. The recommendation
39   for the boiler and machinery policy is to increase the deductible from $25,000 to
40   $50,000.
41
42         Nelson asked why the recommendation is to not change the deductible.
43   Hanson stated they have to weigh the value of saving $2,500 versus putting the
44   County at risk for $25,000. The number of years they would have to go without a
45   claim does not justify recommending a change.
46



                Finance and Administrative Services Committee, 2/12/2002, Page 2
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1         Nelson questioned whether The Unity Group has a history of County claims.
 2   Hanson stated there have been very few claims. Exhibit 2 are the options for the
 3   deductible for the property policy.
 4
 5         Nelson questioned whether the administration recommends staying with the
 6   $25,000 deductible instead of raising it. He asked the County’s history. Desler
 7   stated they’ve had coverage issues at the Smith and Northwest building regarding
 8   wind damage. They have to invest more money in the roof at the Smith and
 9   Northwest building.
10
11          Nelson stated that wouldn’t have anything to do with the insurance. Desler
12   stated it doesn’t. The recommendation is consistent with where they need to go
13   today.
14
15          Crawford stated the County has a risk pool with other municipalities around
16   the state for liability insurance. He asked if there is such a thing for facilities
17   insurance.
18
19          Randy Watts, Chief Civil Deputy Prosecutor, stated the same pool is starting
20   property coverage. He hasn’t looked into it. His position is that there is a benefit
21   to having a local broker rather than someone out of town. They are starting to put
22   together a property program and a program to deal with worker’s compensation
23   issues.
24
25         Desler stated the administration looked into health insurance from the risk
26   pool. As yet, there is no savings to do that.
27
28          Crawford asked if there is a classification for government buildings, and if
29   they are less susceptible to claims or more susceptible compared to commercial
30   buildings. Hanson stated there is a target level from a terrorism standpoint.
31   Regarding claims in general, government buildings have no greater degree. The
32   majority of vandalism would be covered under the deductible.
33
34          Crawford questioned whether they would find, if they took a look at a risk
35   pool, that government buildings have a low claims rate. Hanson stated the primary
36   driver to the County’s cost is the catastrophic loss potential, particularly with regard
37   to earthquakes. A risk pool for liability lends itself more than a property risk pool.
38   The concern is that an earthquake would take out a region. That is one of the big
39   issues driving the prices.
40
41         McShane moved to recommend approval.
42
43        Desler questioned whether the motion covers the premium and the
44   recommendations for both insurances.
45
46         McShane stated it does.
47
48         Motion carried unanimously.

                Finance and Administrative Services Committee, 2/12/2002, Page 3
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1
 2   5.    RESOLUTION FOR HEARING AND NOTICE OF HEARING ON SALE OF A
 3         PORTION OF COUNTY-OWNED PROPERTY, REQUEST NO. 01-02
 4         (AB2002-093)
 5
 6          Bruce Mills, Assistant Director of Engineering, stated this is a two-part
 7   process. This resolution will set the hearing for two weeks. The State Department
 8   of Transportation (DOT) is in the process of widening Guide Meridian and wants to
 9   purchase a right-of-way from the County. There is a 15-foot wide piece of right-of-
10   way with a ditch in it. As the DOT widens the Guide Meridian, they need to
11   purchase a 38-foot long strip of that land. The DOT is offering well over the
12   assessed value on the land. It is to covers administrative costs of $1,000. The
13   Public Works Department recommends that this be put forward for a hearing.
14
15           Nelson asked if there are administrative costs involved in this transaction.
16   Mills stated administrative cost includes a small amount of staff time to look at the
17   property and prepare a memo.
18
19          Nelson stated it’s amiss to charge the state $1,000, which could be better-
20   used on the project. He asked if the $1,000 is worth this little sliver of property,
21   and if the County could sell it for $1. Mills stated the County could donate the
22   property. It would still need to go through this process.
23
24        Nelson stated the $1,000 could be put to better use, and it’s all tax money
25   anyway.
26
27         Crawford stated the State is going to get the right-of-way one way or
28   another through eminent domain.
29
30          Nelson stated the widening is a service to the community that the County
31   should participate in as a partnership. This is not a large tract of land. It is a
32   sliver of land that the County will not do anything with anyway. The money could
33   go back to other uses in the county, but he would rather see the Guide get widened
34   in an expeditious and financially responsible manner.
35
36          Dewey Desler, Deputy Administrator, stated the government-to-government
37   relationships require a transfer of assets and resources for their true value. It is
38   worth $1,000 to the State, and the County can say it is worth $1,000 to the
39   County. The County could give it to the State, but the State won’t give property to
40   the County. Unless there is a good public policy to implement, the County should
41   ask for cash to reflect the value of the assets they are transferring.
42
43         Nelson asked the value. Mills stated it was assessed at $.02 per square foot,
44   for 566 square feet. The total is not a lot.
45
46         Nelson stated the County could change the cost to the true value of the land.
47
48         McShane moved to recommend approval to set the hearing.

                Finance and Administrative Services Committee, 2/12/2002, Page 4
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1
 2         Motion carried unanimously.
 3
 4   6.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
 5         INTERLOCAL AGREEMENT BETWEEN WHATCOM COUNTY PUBLIC
 6         WORKS SOLID WASTE DIVISION AND THE CITY OF BELLINGHAM TO
 7         OPERATE THE DISPOSAL OF TOXICS FACILITY, SATELLITE TOXIC
 8         WASTE STATIONS AND COLLECTION SITES, AND THE LAKEWAY YARD
 9         WASTE COLLECTION FACILITY IN THE AMOUNT OF $364,000
10         (AB2002-094)
11
12         Dick Prieve, Assistant Director of Administration, stated this agreement is the
13   same as last year, except it costs a little more money. People are bringing more
14   and more materials to the site. The agreement was approved last night at the City
15   Council.
16
17          Nelson stated the agreement included an additional full-time equivalent (FTE)
18   employee. He asked what the FTE is for. Prieve stated there are two people at the
19   site now. They are literally so busy that they cannot complete their work.
20
21         Nelson asked if the Council just increased the FTE’s for this during the budget
22   process. Prieve stated this is the funding for that increased FTE.
23
24         Roy moved to recommend approval to the full Council.
25
26         Motion carried unanimously.
27
28   7.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
29         CONTRACT AGREEMENT MODIFICATION BETWEEN WHATCOM
30         COUNTY HEALTH AND HUMAN SERVICES AND THE CITY OF
31         BELLINGHAM – DETOX SERVICES TO PROVIDE FUNDING FOR THE
32         ALCOHOL PROTECTIVE CUSTODY PROGRAM IN THE AMOUNT OF
33         $56,036 (AB2002-095)
34
35          Andy Byrne, Human Services Manager, stated this contract with the City of
36   Bellingham has been in operation for years. The amendment is for another 12
37   months. The City provides funds to operate the alcohol protective custody
38   program, for which the County contracts with St. Joseph Hospital Recovery Center.
39   This program is the envy of other counties in the state. When someone is
40   inebriated and shows a potential for danger, that person needs to get into
41   detoxification but may not be willing to. The program allows for police authority to
42   put the person in custody so the person can’t leave for eight hours until he or she
43   sobers up.
44
45         Crawford asked where the City gets its money. Byrne stated $12,000 comes
46   from the liquor tax. He didn’t know about the rest.
47
48         McShane moved to recommend approval to the full Council.

                Finance and Administrative Services Committee, 2/12/2002, Page 5
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1
 2         Motion carried unanimously.
 3
 4
 5   8.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
 6         CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY HEALTH AND
 7         HUMAN SERVICES AND THE CITY OF BELLINGHAM – DOMESTIC
 8         VIOLENCE COMMISSION FOR SUPPORT OF THE COMMISSION
 9         AGAINST DOMESTIC VIOLENCE IN THE AMOUNT OF $44,500
10         (AB2002-096)
11
12         Crawford stated this item is really for $44,500. The agenda should be
13   corrected. The amounts reflected in the agreement are correct.
14
15          Terry Hinz, Assistant Director, stated item nine should be for $82,000. The
16   City of Bellingham funds $44,500 of that agreement, and the County funds the
17   remainder. The County contracts with Whatcom Crisis Services for this service in a
18   total amount of $82,000.
19
20         McShane moved to recommend approval for this item and the next item on
21   the agenda.
22
23         Nelson asked if the $7,000 increase is shared jointly. Hinz stated it is not.
24   Only the City is paying the increase. The agency requested a $7,000 increase each
25   from the City and the County. The City is paying the increase. The County is not.
26
27         Crawford asked why the County said no to the increase request of $7,000.
28
29          Dewey Desler, Deputy Administrator, stated the administration is concerned
30   about the amount of money the County has. Domestic violence is a significant
31   problem with effects on the criminal justice system. The administration is providing
32   no increases for anything.
33
34         Crawford asked if this was discussed at the Law and Justice Council. Desler
35   stated it was not.
36
37         Motion carried unanimously.
38
39   9.    REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
40         PROFESSIONAL SERVICES CONTRACT BETWEEN WHATCOM COUNTY
41         HEALTH AND HUMAN SERVICES AND WHATCOM CRISIS SERVICES TO
42         SUPPORT THE COMMISSION AGAINST DOMESTIC VIOLENCE IN THE
43         AMOUNT OF $82,000 (AB2002-097)
44
45         See the above item.
46
47   10.   RESOLUTION CANCELING UNCOLLECTABLE PERSONAL PROPERTY
48         TAXES (AB2002-098)

                Finance and Administrative Services Committee, 2/12/2002, Page 6
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1
 2         Dewey Desler, Deputy Administrator, stated this is an annual process. The
 3   Treasurer has determined that certain parties are not able to pay property taxes.
 4   According to law, the County can call them uncollectable and cancel them.
 5
 6         McShane moved to recommend approval.
 7
 8         Motion carried unanimously.
 9
10   11.   REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO A
11         CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY AND RE
12         SOURCES FOR CONDUCTING OUTREACH SERVICES PROMOTING
13         WASTE REDUCTION AND RECYCLING AND PROPER HOUSEHOLD
14         HAZARDOUS WASTE MANAGEMENT IN THE AMOUNT OF $25,000
15         (AB2002-099)
16
17         Dick Prieve, Assistant Director of Administration, stated this is self-
18   explanatory. The bid process had two submittals for the first time. A panel of
19   people interviewed the applicants, and chose this contractor. The other bid was
20   from Joanne Ernst.
21
22         Crawford asked what the panel looked at. Prieve stated they looked at the
23   presentation of what the contractor would provide for the County. There was a
24   unanimous decision to go with RESources.
25
26        Roy stated this was one of the more well-written proposals she’s seen. She
27   moved to recommend approval to the full Council.
28
29         Motion carried unanimously.
30
31
32   OTHER BUSINESS
33
34          Dewey Desler, Deputy Administrator, stated the administration is working on
35   introducing an ordinance tonight to create a public facilities district. The ordinance
36   would allow the County to collect some of the current revenue that is generated in
37   the sales tax that now flows into the Department of Revenue. The County would be
38   able to develop a regional center and related parking facilities for conventions,
39   conferences, special events center, or a sports facility. Part of the County’s
40   motivation now is that they’ve been watching the City of Bellingham consider
41   developing it’s own district for 15 months. The County was waiting to see if the
42   City would create one. The sales tax revenue the City collects would be for the
43   amount generated in the City. If the City didn’t develop it’s own district, the
44   County could create one on its own that would cover the entire county, including
45   the other cities in the county. The other cities cannot create their own because
46   they are too small. The law requires that a minimum of a $10 million facility would
47   have to be built for the city. The County has no minimum amount for a facility.
48

                Finance and Administrative Services Committee, 2/12/2002, Page 7
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1           This legislation was created to fund Safeco Field and the new football stadium
 2   in King County. Other counties and cities were given the ability to do something
 3   similar. The legislature is thinking about adjusting the law so districts created
 4   before March 15 of this year have more flexibility and latitude than those that are
 5   created after March 15. The administration’s proposal is to put a draft ordinance on
 6   the table for review. A separate Board of Directors appointed by the County
 7   Council would govern the district. The administration is writing in the ordinance
 8   certain safeguards to allow the County to watch carefully and give pre-approval on
 9   certain things that the district would do. Because it is a separate municipal
10   corporation, it maintains its own separate liability. The County maintains no fiscal
11   liability. At the end of a given period of time, assets come back to the County for
12   ownership. The source of money is not just from the sales tax diversion. There are
13   other options the district has to collect funds. The district can bond for 25 years.
14   For purposes of economic development, the district can create multimillion dollar
15   projects that would be financed with the sales tax diversion that would run over a
16   number of years. The administration’s thinking is about how they can capture
17   resources to create solutions to problems in the civic center area and ideas for the
18   Smith and Northwest Road athletic facilities. There may be other up and coming
19   urban areas that can support regional centers. The administration is creating
20   options, but not an additional tax load on the public. The resources are already
21   generated and collected for and by the people of Whatcom County. If introduced,
22   the Council could have a hearing and review in two weeks.
23
24         Roy questioned where this tax money goes currently. Desler stated that, of
25   the 7.8 percent of sales tax money that is collected, 6.5 percent goes to the State
26   of Washington. One percent goes to the City of Bellingham. The other .3 percent
27   goes to the Whatcom Transit Authority. Of that 6.5 percent, a small portion would
28   be kept in the county for this district. It amounts to one-third of .1 percent.
29   Countywide, the money would total about $750,000 to $800,000 per year
30   currently. That includes the money for the City of Bellingham.
31
32           Crawford stated the County’s municipal corporation share would be about
33   $350,000 annually. Desler stated that as sales increase, the revenue would
34   increase. Multiply that amount by 20, which is what they can bond for. That is an
35   idea of how much leverage could be created. The legislature intended that the
36   districts would create facilities that would generate income from parking,
37   conference facilities, or some other use. That’s how the district would operate. The
38   financing for constructing the facility could be done with bonds.
39
40           Crawford moved to recommend approval to the full Council of introducing
41   this item.
42
43         Motion carried unanimously.
44
45
46   ADJOURN
47
48         The meeting adjourned at 12:55 p.m.

                Finance and Administrative Services Committee, 2/12/2002, Page 8
     DISCLAIMER: This document contains the Whatcom County Council or Committee
     minutes, as approved. However, unless an attested signature page is attached, they
     are not the final approved minutes.

 1
 2
 3   ______________________________
 4   Jill Nixon, Minutes Transcription
 5
 6
 7   ATTEST:                                       WHATCOM COUNTY COUNCIL
 8                                                 WHATCOM COUNTY, WASHINGTON
 9
10
11
12   ______________________________                ___________________________
13   Dana Brown-Davis, Council Clerk               Sam Crawford, Committee Chair




                Finance and Administrative Services Committee, 2/12/2002, Page 9

								
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