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HomeMy WebLinkAboutM120114q District No. 1 Commissioner: Phil Johnson District No. 2 Commissioner: David W. Sullivan District No. 3 Commissioner: John Austin County Administrator: Philip Morley Clerk of the Board: Erin Lundgren MINUTES Week of December 1, 2014 Chairman John Austin called the meeting to order at the appointed time in the presence of Commissioner Phil Johnson and Commissioner David Sullivan. PUBLIC COMMENT PERIOD: The following is a summary of comments made by citizens in attendance at the meeting and reflect their personal opinions: • Three citizens commented on the proposed Noise Ordinance; • A citizen stated: 1) Due to Republicans, he foresees a rough funding year in 2015; and • A citizen noted the Jefferson County Democrats will be hosting a reorganization meeting and stated it has been a pleasure serving as Chair of that organization. APPROVAL AND ADOPTION OF THE CONSENT AGENDA: Commissioner Johnson moved to approve all the items on the Consent Agenda as presented. Commissioner Sullivan seconded the motion which carried by a unanimous vote. 1. RESOLUTION NO. 56 -14 re: HEARING NOTICE: 4th Quarter 2014 Budget Appropriations/Extensions; Various County Departments; Hearing scheduled for Monday, December 15, 2014 at 10:15 a.m. in the Commissioners Chambers 2. RESOLUTION NO. 57 -14 re: Closing County Administrative Offices at Noon on Christmas Eve 3. AGREEMENT re: Emergency Management Performance Grant (EMPG) E15 -160; In the Amount of $16,577; Jefferson County Emergency Management; Washington State Military Department 4. Advisory Board Reappointment re: Olympic Area Agency on Aging (O3A); Three (3) Year Term Expiring December 1, 2017; Patricia Smith 5. Advisory Board Appointment re: Gardiner Community Center Advisory Board; Three (3) Year Term Expiring December 1, 2017; Tim Hickey 6. Payment of Jefferson County Vouchers/Warrants Dated November 24, 2014 Totaling $522,958.58 7. Payment of Jefferson County A/P Warrants Done by Payroll Dated November 20, 2014 Totaling $15,277.20 Page 1 Commissioners Meeting Minutes of December 1, 2014 COMMISSIONERS BRIEFING SESSION: The Commissioners each provided updates on the following items: Chairman Austin - Will be attending a Strait Ecosystem Recovery Network meeting next week. Commissioner Johnson - Will be participating in a conference call with the Olympic Area Agency on Aging (O3A) this week. Commissioner Sullivan - Participated in a Legislative Steering Committee (LSC) conference call last week re: I -502 and sharing revenue. Will be attending an open house in Brinnon next week re: Black Point. The meeting was recessed at 9:28 a.m. and reconvened at 9:35 a.m. with all three Commissioners present. DISCUSSION re: Memorial Field Grandstand Roof Repair Project, County Project No. 1954, In the amount of $299,399.88, Jefferson County Public Works, Prima Construction: County Administrator Philip Morley stated that Public Works Director /County Engineer Monte Reinders was enroute, but that Central Services Director Frank Gifford would be assisting in the presentation. Central Services Director Gifford stated that the Memorial Field Grandstand Roof Repair bid process resulted in three bidders. The lowest bidder is Primo Construction with a base bid of $217,725 which includes the removal of the existing roof, welding, painting and other miscellaneous work. It will cost an additional $74,565 to add a new roof and wing walls back onto the facility, and another approximately $7,000 for salt treatment. Primo did not charge for replacing the tie rods, which are included in the roofing bid under Primo's bid numbers. Adding to that figure, including staff, inspection costs, and an adequate contingency, along with other items, the base workup is around $264,000. If the project is done in its entirety, it will cost around $365,000. Central Services Director Gifford stated there is approximately $145,000 in the County's Capital Fund from the Prop 1 funding. This is for doing some capital repair work. There is an additional $79,507 in a Special Projects Fund for capital purposes also. They are proposing transferring $25,000 from the Parks Improvement Fund. That will provide an existing total revenue of $245,507. If the Board accepts the base bid only, the County would need to come up with approximately $15,000 of additional funding. If the Board accepts the base bid and replaces the roof, the County would need to come up with approximately $116,000 of additional funding. Chairman Austin asked if there were any changes from the original presentation? Director Gifford replied there have not been any changes. He added that they are suggesting accepting the Primo bid and awarding it for the base plus alternates. Page 2 Commissioners Meeting Minutes of December 1, 2014 County Administrator Morley stated that the bid for the roof repair had been structured in a way where there is a base bid for removal and painting of the structure, and alternative bids for salt treatment, tie rods and replacement of the roof. Staff encouraged the Board to go for the whole project as the price quoted is a good price. County Administrator Morley stated if the projects were broken up, the County would lose efficiency, plus this takes care of the issue at hand and clears it from the County's plate so they can focus on other projects in the future. Central Services Director Gifford stated that other bids for the same project were approximately $155,000 over Primo's bid. He added that it would cost the County around $190,000 to tear down the roof. If the Board decides to tear down the existing roof and build in the future, it would have to be built to the current code at that time and would most likely cost around $400,000 4500,000 to construct. He stated that this is a good use of current funding and would allow about 20 more years of life to the structural frame. County Administrator Morley stated that the County is aware of other needs such as courthouse security, capital improvements, staffing, Port Townsend Recreation Center roof and the Brinnon Community Center. He explained that those are competing needs, but as the Central Services Director noted, they have anticipated for this year and next year some one -time funding above what had been funded which allows for dedication for capital or one -time projects. This project qualifies. Public Works Director and County Engineer Monte Reinders joined the discussion at 9:46 a.m. Commissioner Sullivan noted that state and federal budgets are uncertain right now. He appreciates the work staff has done on the project, however, he feels that the money should be saved for other potential needs. He added that the field itself is fine, it is just the roof over the home team bleachers that is in need of repair. Chairman Austin stated that he respects Commissioner Sullivan's concerns but in looking at the big picture, this is an opportunity that will have a rather short shelf life and if the County moves forward, they can end up with a real tangible asset that will be around for another 20 years. There may not be another chance to build the roof again at that price. Chairman Austin moved to award the contract to Prime, Construction. Commissioner Johnson stated there are two choices that he sees, to approve a new roof, or remove the existing roof. Commissioner Johnson seconded the motion. Chairman Austin called for a vote on the motion. Chairman Austin and Commissioner Johnson voted in favor of awarding the contract to Primo Construction for the Memorial Field Roof Repair Project. Commissioner Sullivan voted against the motion. The motion passed. The meeting was recessed at 9:28 a.m. and reconvened at 9:35 a.m. with all three Commissioners present. HEARING re: 2015 Jefferson County Budget: County Administrator Philip Morley distributed two handouts at the meeting: 1) Handout A - Copy of the power point presentation titled 2015 Jefferson County Budget; and 2) Handout B — Corrected "Jefferson County Administrator Message for the Recommended 2015 Jefferson County Budget." He stated that after the presentation and Page 3 Commissioners Meeting Minutes of December 1, 2014 the public has a chance to comment, a final budget will be developed and adopted as early as next week. Central Services Director Frank Gifford was also present for the meeting. County Administrator Morley stated that the anticipated revenue for the General Fund is $16.7 Million and we are anticipating slightly over $17 Million in expenditures. Other funds total $28.5 Million in revenue and $33 Million in expenditures. The total recommended 2015 Budget is as follows: TOTAL RECOMMENDED 2015 BUDGET 2014 Proposed All Revenues $45,174,730 All Expenditures $50,251,062 GENERAL FUND 2014 Original Budget 2014 Projected 2015 Proposed % Change from 2014 Projected OF Revenues $16,286,094 $17,206,020 $16,720,945 -2.8% GF Expenditures $16,813,568 $17,581,568 $17,023,210 -3.2% Estimated Ending Fund Balance $2,409,137 $2,558,221 $2,511,304 -1.8% Unencumbered Fund Balance $287,781 $405,064 $368,963 -8.9% County Administrator Morley added that intergovernmental revenues are 26% of the County's budget and 12% of the General Fund. Taxes comprise 2 /3rd of the General Fund revenue, which is significant. Sales tax contribute to 20% which is also very significant. On the expenditure side, salaries and benefits comprises 57.1% of the General Fund expenditures. Another 10% gets transferred to "Other Funds" and those funds take about 1/3 of that to pay salaries and benefits as well. County Administrator Morley indicated that the County is continuing to invest in Public Safety. Law and Justice expenditures total 60% of the General Fund. Commissioner Johnson asked if 60% was an average for other counties? County Administrator Morley replied that it is hard to compare to other counties but he believes they are somewhere in this range. County Administrator Morley explained that the County has a five year General Fund Budget strategy. This year's budget is impacted by continued declines in the value of County revenues against inflation. This is due in part by: 1) The state - imposed 1% per year limit on the property tax base, except by a public election; 2) The modest recovery constrains property tax from new construction and other revenues; and 3) Cost inflation exceeding revenue growth over time, and reducing the value of all local revenues. He reviewed graphs and charts from his power point presentation which included: Property Tax Base Over Time, New Construction as well as other figures and projections. Page 4 Commissioners Meeting Minutes of December 1, 2014 County Administrator Morley noted that in 2014, $1.3 Million dollars came from the federal government. Looking ahead at federal and state funding to local government, there is uncertainty. In 2015, there is concern regarding funding for Federal Payment in Lieu of Taxes (PILT), Federal Secure Rural Schools — for Roads, Federal Transportation funding package, State cuts to fund McCleary and I -1351 and State Transportation funding package. Central Services Director Frank Gifford noted significant changes to Other Funds in 2015. On the revenue side, Water Quality is receiving a $395,500 Grant Revenue for property acquisitions and $270,000 from the implementation of the revised Clean Water District fee. Parks and Recreation is receiving $24,000 as a one -time additional transfer in from the General Fund, but they are losing $123,000 from the Prop 1 Funding, which ends mid -2015. On the expenditure side, Water Quality is spending $395,500 on property acquisitions, funded by grant revenue and $72,000 to add a Water Quality position. Jefferson County Extension is spending $91,160 one -time funding for a Noxious Weed Coordinator and increase in hours of a farm manager position. Parks and Recreation is decreasing their expenditures by lowering staffing for recreation programs $49,000. They are also reducing transfer to Construction and Renovation by $40,000 due to City Prop 1 funding ending. County Roads is anticipating a $350,000 reduction in maintenance and administration budgets due to loss of Secure Rural School funding. Central Services Director Gifford reviewed the County's debt. General Obligation Bonds total $6,062,765 and Contractual Borrowing total $3,208,174 for a grand total of $9,270,939 in existing debt. County Administrator Morley reviewed the County's schedule of annual debt service payments for principal and interest, and how it declines over time. He added that some other funds are carrying this debt service. Chairman Austin opened the hearing for public comment. Jean Ball, Chimacum: She stated that after hearing the budget woes, she asked if anyone has considered income revenue from marijuana? It is disturbing to her that they are losing jobs and Parks and Recreation events for kids are being cut. Has anyone considered the potential revenues that are coming? Tom Thiersch, Jefferson County: He stated that the County will be carrying debt service for JeffCOM 911. When JeffCOM 911 fought so hard to become an independent agency, it seems unconscionable for the County to be carrying the debt for that now independent agency. That should be resolved and eliminated from the County's books. It is all public money but let's keep the bookkeeping straight. The Public Utility District (PUD) preference tax income, according to his calculations, Puget Sound Energy (PSE) property that came off the tax roles was somewhere around $30 -35 Million dollars. Using the 1% rule, that would indicate about $300,000 dollars of lost property tax revenue offset by $165,000 of privilege tax? That does not seem like a fair exchange. He would like to see more detail on exactly how much property tax was lost from PSE. There is also the issue of the City taking away its share of the Prop 1 sales tax funding for Parks and Recreation. He did not see any plan in place to replace that lost revenue to the County. City residents are still going to be using those services that will now be provided solely by the County. Maybe there ought to be a little bit more concerted effort to do that. He does not want to encourage a war between the City and County, but people have to pay for things they need to pay for. At the pool, County residents used to pay around 20% more than City residents. They stopped that practice a couple years ago, but at the time, justified it by saying it was a City pool so City residents Page 5 Commissioners Meeting Minutes of December 1, 2014 KC should get a better rate. Maybe something similar to that needs to be implemented at the Recreation Center. There has to be a better way to share the costs of providing services to the people that use them. More thought needs to go into it and it will not be through a Metropolitan Park District (MPD). There is a big single line item that is never detailed in any of these budgets, it is the huge item of "Professional Services." It is a nebulous catch -all, you never know what the heck goes into it, but it looks suspicious. It is a big chunk of money. There is never any detailed accounting for how it is planned. The only way to find out how it is spent, is to dig into public records and look at all the invoices. Hearing no further comment, Chairman Austin closed the public hearing. Chairman Austin asked if professional services include incurred by using psychologists in trials? County Administrator Morley replied that there are professional services budgeted within each department. It is not done on a one -line item basis. For instance, the Department of Community Development (DCD) will often use outside expertise when working on Environmental Impact Statements (EIS) and other projects. Professional services were used when updating the Critical Areas Ordinance for agriculture. The Information Services Department used professional services for EIS and courthouse security. Chairman Austin asked if assigned council and indigent defense was included under "Professional Services ?" County Administrator Morley believes that it is included under that category. Chairman Austin noted that one of the advantages of using professional services is that departments do not have to create a full time or part time position. Central Services Director Gifford added that Government e- Management Solutions (GEMS), software used by the Assessor's Office and New World software used by the Sheriff s department gets billed through professional services. County Administrator Morley addressed the statement made during the public hearing regarding JeffCOM. He stated that originally, bonds tied to JeffCOM were issued at a time when it was still a County department, so they were County bonds. Those bonds have a 15 -20 year life on them and exist as instruments that bond holders have purchased and hold. There is an agreement with JeffCOM that guarantees that JeffCOM will service that debt. The County's Treasurer's Office is the Treasurer for JeffCOM as well. The Treasurer takes out the debt service expenditures before transferring revenue to JeffCOM through taxes. He added that the County would need to recall the bonds in order to put them in JeffCOM'S name. The cost and the hassle is not worth it. County Administrator Morley addressed the statement made during the public hearing regarding marijuana revenue for Jefferson County. He explained that under I -502, there is a 20% tax imposed at the point of production, processing and retail sales, but under current state law, all of the revenue goes to the state. There is a small amount of funding that goes towards education and other things, but the funding is controlled by the state and is not coming to the counties. Commissioner Sullivan pointed out that there most likely will be lobbying done to share these revenues with counties. County Administrator Morley addressed the statement made during the public hearing regarding the PUD privilege tax. He stated that when PSE's privately held properties, including personal property, Page 6 Commissioners Meeting Minutes of December 1, 2014 went into public ownership, it stopped being a taxable tax base property. It is not a general reduction, rather a re- assignment of who is paying it. The PUD privilege tax essentially translates into an increase in revenue to the County. Due to modified projects on new construction for property tax, this meant a reduction in the rate of increase in regular property taxes. The PUD tax brings the County back to roughly where they would be. Central Services Director Gifford added that a part of the PUD tax goes to the City of Port Townsend. County Administrator Morley stated that in regards to Prop 1 funds ending, the County has scaled back. 2015 will be a transition period. By 2016 the Recreation Center will be operating on a skeletal basis. County Administrator Morley explained that when figuring out the budget, in some cases, refinements need to be made. The final recommendation of the Hargrove Fund and Lodging Tax Hotel /Motel Fund final allocations were not finalized in time for the draft budget. While the budget line numbers will not change, the distribution is likely to change. He added that tomorrow he will be meeting with representatives from the Courts regarding the Hargrove Fund. With permission from the Board, he would like to make possible amendments, if needed as an outcome to that meeting. County Administrator Morley stated that funding for Noxious Weed Control is coming from the General Fund. He added that noxious weed control is subject to quite a bit of controversy and has been arguably very underfunded. The Board of County Commissioners has been made aware of this funding issue and has given staff direction to look into this which may include looking outside the General Fund in future years. Commissioner Sullivan made a motion to give the County Administrator permission to make adjustments to the budget and direct staff to prepare the 2015 Budget for potential adoption. Commissioner Johnson seconded the motion which carried by a unanimous vote. The meeting was recessed at 11:20 a.m. and reconvened at 1:31 p.m. with all three Commissioners present. COUNTYADMINISTRATOR BRIEFING SESSION: County Administrator Philip Morley reviewed the following with the Board. Calendar Coordination: • Commissioner Johnson will be attending the Washington State Auditor's Office Exit Conference on December 2, 2014. • There will be a Drug Court graduation on December 4, 2014. • Commissioner Johnson and Commissioner Sullivan will be attending an Olympic Area Agency on Aging (03A) meeting in Shelton on December 4, 2014. • Commissioner Johnson will be attending a Hood Canal Coordinating Council (HCCC) meeting on December 10, 2014. • Commissioner Sullivan will be attending a Comprehensive Economic Development Strategies (CEDS) meeting on December 10, 2014. • There will be a JeffCOM meeting on December 11, 2014. Page 7 Commissioners Meeting Minutes of December 1, 2014 • Chairman Austin and Commissioner Sullivan will be attending a Jefferson Transit Board meeting on December 16, 2014. • There will be a Board of Health meeting on December 18, 2014. • There will be a recognition and farewell party for Chairman John Austin on December 22, 2014 at 1:30 p.m. in the Commissioners' Chambers. • The Jefferson County Courthouse and County facilities will be closed on December 25, 2014 in observance of Christmas. • The Swearing in of Elected officials will be held on January 2, 2014 at 9:00 a.m. Miscellaneous Items: • Noise Ordinance continued deliberation. Staff will attempt to bring a revised draft to the December 8, 2014 County Administrator Briefing (CAB) session. Staff consulted with Washington State Department of Ecology (DOE), and our noise ordinance is State Environmental Policy Act (SEPA) exempt, but under state law /WAC, requires DOE to review the ordinance. Staff is still researching what status the ordinance needs to have as to the Board's action before sending it to DOE. • Marijuana Moratorium work schedule: All Commissioners have completed review of the hearing record, and on December 8, 2014 will close out their deliberations on the original moratorium Hearing. Commissioners discussed a potential extension of the moratorium that may be set for a separate public hearing in January, 2015. Staff has legal advice that an extension can be for less than 6 months. Commissioners expressed a desire that any extension would be for a shorter period. The Department of Community Development (DCD) plans to present a draft of the Unified Development Code (UDC) regulation changes to the Planning Commission (PC) at a special PC meeting the 2 "d week of January. • Washington Counties Risk Pool (WCRP): County Administrator Morley described the favorable rulings for WCRP on Clark County's claims against WCRP. • Strait Action Area: John Cambalik Strait Action Area of the Ecosytem Coordination Board (ECB) has requested the Board of County Commissioners (BOCC) designate a new commissioner appointment to serve as Co -Chair after Chairman Austin retires, and asks for the designation at the December 12, 2014 meeting. Chairman Austin asked if Environmental Health Specialist Tami Pokorny might attend and Co- Chair? Commissioners discussed that an elected official may be more appropriate for such a position. BOCC will wait until 2015 to discuss and decide whether /who to appoint. ECB meets quarterly. Their Steering Committee meets monthly. • Hargrove Fund: Discussed a November 26, 2014 letter from Judge Harper and Judge Landes. Staff is meeting with the judges and Juvenile Services Director Barbara Carr on December 2, 2014 and Commissioner Sullivan will participate. • Chairman Austin reported that Central Services Director Frank Gifford is coordinating with the telephone company regarding preventing removal of the Jefferson Transit bus stop signs in the County Right -of -Way. Page 8 Commissioners Meeting Minutes of December 1, 2014 NOTICE OFADJOURNMENT. Commissioner Sullivan moved to adjourn the meeting at 2:45 p.m. until the next regular meeting or special meeting as properly noticed. Commissioner Johnson seconded the motion which carried by a unanimous vote. 4 ATTEST: �7d,�ll.,,� Carolyn Avery Deputy Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS John A stin, Chair Lr� Phil Johns ember Page 9