HomeMy WebLinkAboutM120385
"
#. _1: ......,
District No. 1, Commissioner:
District No. 2 Commissioner:
District No. 3 Commissioner:
_Il:!lldlllllt:f.."I[')~.II'lIlJl~IiU.._;{U.t.l:.Il.'J_.'J~t~"'''''''''I']~Or:~---
Ii
Larry ~. Dennison, Member
B.G. Btown, Member
John LI, Pitts, Chairman
i
Clerk of the Board: Jerdin C. Bragg
~~~~~:_:::~:_~~:::~::~_ I Gary A~ Rowe
-----------------------------;------------------
i
, t'rL EJi N Dr T E, S -
HEARING re:
Equalization: alrman
budget appropriation in
of Equalization. This
by a greater number of
time the budget was fin
no one appeared to spea
i .
----------------------- --------~---~-------~---~----~------------------
i
i
Week of December 3, 11985
1
meeting was called to order Thy Chairm~n John L. Pitts
of Comm. ssioner B.G. Brown atd Commis~ioner Larry w'~
i I
Emergency Budget App1opriatiol' ; Board of
Plttsopene t e eatlng regar ng t e emergency
the amount of $1,400JOO requetted by the Board
mount is needed due to increa~ed expenses caused
ppeals being filed t~an was a~ticipated at the
lized. The Chairman!closed the hearing when
for or against the troposed rUdget appropriation.
to approve and signlResoluti~n No. 90-85 ordering
for the Board of Equalization., in the amount of
! I:
on, Architect, JOhnsJon-Hunt Jnd Associates re:
e erson ount al.: DavJl,.d Uohnston, Architect,
last bill for servic~s that h~. had submitted to
Commissioner Brown'noted tht it was his under-
onversations with Mrl Johnstol, that when all of
sitated due to the atbitratio and other problems
Johnston had indicat~d that h. would bill at the
the County would belreimburs'd by the State for
wasn't the case then the Arc itect would not bill
llocation to the Cou~ty for t,e jail project has
is a possibility tha~ no more! funds will be alloca-
State. i ,;
i Ii
Another problem that ne ds to be resolved islwho is r~sponsible for the
air systems problem tha is currently holdin~ up the final completion of
the jail? The Sheriff' Office and prisoner~ will nOE be allowed to move
into the jail until the e problems are fixediand the system is up and running
properly, Commissioner , rown added. i II
David Johnston then ex,p...i~ained thes,e p .roblems I from hiS~.! pOint, of view:
The heat exchange syste is a total exhaust system. 'he dirty air from
inside is dumped outsid' and not recirculate<I in the .uilding.' Pure fresh
air from the outside is brought in, heated from the h~at that is extracted
from the dirty air goin outside, thus not w~sting an of the heat. When
an attempt was made to . alance the system thf exhaust! could not be brought
up to the speed that it: is supposed to run. I The prob em has been isolated
to the heat exchanger.w ich has a blockage ih it. A anufacturer's repre-
sentative has ,been calI: d but has not been able to ge here because of the
snow. David Johnston ai ded that he is going! to give I he heat exchange
contractor an'ultimati~ of 10 days to fix th~ heat ex hanger or something
else will be done. Thi, is a technical solution, but if something else
has to be ~one then the e is a question of who will p y for the work.
The
in the presence
Dennison. .
Commissioner Brown move
the budget appropriatio
$1,400.00.
David Johns
Payment for serVl.ces on
asked the Board why the
the County was not paid
standing from previous
the extra time was nece
with the jail, that Mr.
rate agreed upon becaus
these bills, but if tha
the County. The State
been depleted and there
ted to the County by th
'; VG1~ II ;>'~tt JI:l(~816
i
,
II
I!
1:
I;
Ii
II
In response to the Board's queries about why the Coun!FY would possibly
be responsible for fixing this heat exchanger, David p'ohnston further
explained that right now there is a blockage in the h~at exchanger and
that nothing is being done about it by the manufacturer. To make thep
heat exchanger work, Mr. Johnston's suggestion is tha!~ a by-pass be ut
on the duct at the mechanical room, which would by-palss the heat ex-
changer.A high powered fan would be hooked up to th~ smoke control
system which would come on if the ,smoke detector was ~,ctiviated, and -
would take care of the biggest problem. Ii, I
The problems with this system are the responsibility ~f the contractol~
either Palmer Construt:ors or the manufacturer, becausr the problems were
not discovered during the inspections that were done 'Ii Mr. Johnston added.
Commissioner Denn, ison, ,asked at what p~int someone tak~" s theresponsiJility
for these problems that have kept comlng up and have . ot been resolveid?
From the County's point of view, Commissioner Brown a,' ded, as long aSI
the Architect's fee is being paid at the same rate, iit looks as if tbjere
is a possibility that the work isn't being done as ef~iciently as it Icould
be done. Working for no fee may be an incentive to g~t this project I
finished as soon as possible. I, I
Chairman Pitts advised that the County has been extre~ely patient re~arding
the progress of this project, but now there is a sevel~' e deadline for [its
completion. I I
: i
Discussion continued with Mr. Johnston regarding the 'ime his office i ,
has put in on working with the State and the County r garding the billlings
that. have been ,submitted for reimbursement by the Staite. David Johnsiton
reiterated that he is trying to administer the contract that was awanded.
The arbitration award and the distribution of the ret~i~age is a mattier
that has to be resolved by the legal department and Dr., Vld Johnston ha"s to
wait until they respond before he can proceed in that! regard. !
I, !
The County has time, space and money problems, Chairmrn Pitts advised and
need,S to be able to use the new jail, so this heat exp, hange systemnei,eds
to be operating properly. From his point of view, Da~id Johnston added
in order to be able to occupy the jail by the first o~ the year will [re-
quire that the building is made safe and habitable, which can be done! even
if the manufacturer and contractor do not cooperate. I I
This is not a matter of just fixing the system, Chair~an Pitts added,1 it
is a matter of fixing it with no further expense to J~fferson CountY.1
David Johnston then explained that his firm has not b:;llled for their I
services on this contract as much as has been charged!, as follows: I
1) When the Hewitt-Daley firm was released from th,e contract, I
Johnston-Hunt reduced their fees from $60.00 ani! hour to $45.00 I
an hour on legitimate extra ,items . This was an:loverall savLp.gs'l
to the County of $9,000.00. ' I, i ,
2) Johnston-Hunt deferred billing for their time o~ the arbitra~iQn
on the basis that if thearbi:tration could bewfmtheir fee W09ld
be 'part of thecaward. -Haif of the fee was defefred throughout Ithe
arbitration until they were on direct call and [, hen the rate ~as
cut to $27.50 which was a savings to the County! of over $4,000.100.
This resulted in Johnston-Hunt charging the Coui: ty $10,000 H~ssl
than the contract says can be charged because ii1= provides for tihe
extra services of litigation. I: ; I
3) When working on contracts that where not as muc~effort was putl
forth as on a major contract, (i.e. the Motorola!: contract and, t~e
telephone contract) the billings were not made kt the full fee ilof
8.41%, which resulted in a savings to the countt, of about $11,6180.00.
At this time Johnston-Hunt has held back in the amounl' of approximkt~ly
$25,000.00 in billings on this contract, as well as PFnytng legal fees! of
their own on the arbitration in the amount of $5,000.,90. David Johns~on
reiterated that they have done their best, and been as fair as pos~i~le.
! . I
, I ,
Chairman Pitts then outlined what should be done to resolve this mat tier
as: 1) Direct David Johnston on whether we~r~lgoing ito remain as th~
Architect on this project or not, 2) How to proceed or the problems ~ith
the air system and 3) Find out f.rom the Prosecuting Aittorney if th~r4 is
II I
Ii . I
I! I
Minutes, Week of December 3, 1985
Page 2:
VOL
11 fACE (J~f 3817
Minutes, Week of December 3, 1985
Page 3:
any retention money that can be used 0 pay for thes~ additional costs.
David Johnston estimated that his bil i will be approxImately", _ ,
$5,000.00 to complete the job in addi ion to the $2,8~0.00 bill. Cominissioner
Dennison asked for a detailed breakdo of each bill +n writing. The
Board concurred that David Johnston w uld be given th~ check for the
$2,800.00 bill previously submitted w th the understa*,ding that he is to
send a full detailed explanation of t e bill as well ~sa detailed ex-
planation of any future bills that he submits for paywent.
As far as the air system problems, Da id Johnston advised that he would
get some action on this matter from t e contracto,ra,sl,..,."s.oon as he gets back
to Port Angeles. He further notedth t he would do e'erything in his
power to be able to sign off the faci ity andre,sure. it it i~ running at
100% capacity by the lst of January 1 86. I
Commissioner Brown moved to approve t e Change Order $ubmitted by
PC & D for credit in the amount of $8 6.59 for charge, on telephone and
power bills. Commissioner Dennison s conded the motiQn.
"
i
BUSINESS FROM COUNTY DEPARTMENTS:
PUBLIC WORKS
,
"
,i
'efferson
t;: non: ary owe,
,r 0 ice space in
EAch agreement is f~
added to the contract
b1siS, as is done with
"
I,
ary Rowe presen~ed a map of the
on them if sign~d. .
"
olid Waste Gran~s will be applied
ervices contract I!. with a consultant
se grant applic ,tions because there
ailable to writ an application for
drology study g~ant.
t together as s10n as possible because
2(j . funds have [ibeen almost completely
ce for Juvenile [$erviCes; After
o ourt ouse ~pace or the Juvenile
ary Rowe, the B~ard directed the
ates on costs f1r this work.
Monday in 1986 ~inal budget hearings
hearing schedul~. The meeting was
onvened Tuesday!morning with all
Map of Road Restrictions:
roads that will have road restrictions
Solid Waste Grants: Three
for, Gary Rowe reported. A personal
is needed to write at least one of th
is not the in-house t~chnical staff a
the ground water moni~oring and geo-h
I
These grant applicatidns need to be p
the Department of Eco~ogy Referendum
allocated. I
I
Remodeling if Courthouse Sp
reviewing t e pans ,r t e remo e In
Services Department, afs presented by
Public Works Director~ to obtain esti
[
The Board s~ent the rest of
with the departments ~s listed on the
recessed at the end on the day and re
Board members presento
CONTRACT re:i Personal Servi es: David Stalh im; Amendment:
Commissioner-Dennison Imove an ommllsloner Brown se on e t e motlon to
, approve the amended p,rsonal services contract for Dai,id, Stalhe, im.
Shoreline Cqmmission Vacanc : Commissioner ~rown moved to appoint
Joe Daniels to t e vaoany on t e or ine Commission ,created when Betty
Thomas resigned. Mr. IDaniels is from the Port Ludlow !area. Commissioner
Dennison seconded the motion.
11 rA~E OfJ. 3818
l
. .
Business
Week of Decelber 3, 1985
from County epartments
Minutes,
Page 4:
Funding for
reported t at t e wor
for in the Planning D
must be finished. Th
the Planning/Building
a contract basis.
(Plannin Department Continued):
System: Planning Di!ector David Goldsmith
on tea ressing system h~s not been budgeted
,partment or Sheriff's budget an~ this computer work'
Board advised that an amount w~ll be set aside in
Department budget for the compl~tion of ,this work on
of Transportation Maintena'ce Project, State
Route 20: ,Letter: e a so lnutes 0 ovem er , ,. ommlSSloner
Dennison moved to app ove the Chairman's signing a le'ter to the Department
of Transportation reg rding the maintenance project on State Route 20.
Commissioner Pitts se' onded the motion. I,
Shellfish plotection Funds: Planning Direc~or, David Goldsmith,
reported t at t ere a new program on shellfish protection through the
Washington State Depa tment of Ecology which the County may be able to
obtain funds for one f the projects regarding water,~",uality monitoring.
Discussion of the pos ible projects that such funds cruld be used for
ensued.
* * *
Jim Landis, Attorney with Tampa Bay Lawfirm,handlin the ESM
Litagation or t e o,nty re: pate: r. an is rep~rte to t e oard,
Prosecutlng ttorney, 0 n aymon, and representativ~s of several of the
Junior Taxing distric s involved in the loss of fundsi:from ESM investments,
on the progress of re overy of these lost funds. I'
A settlement has been proposed and discussed amongco~nsel for the various
plaintiffs. A f,und 0 $35 mi,llion would be distributr, d from the bankruptcy
proceedings as "Custo er property'.' This means that tpe public entities
will be consider,ed as!customers of ESM and therefore ~,ntitled to pa,rticiPate
in the distribution 0 this money. Approximately $25!, million of this fund
will be designated fo the publ,ic entity plaintiffs, ~hich includes all
of the Washington customers and various other countiee and cities around
the nation that also ~uffered losses when ESM went bahkrupt. This would
mean a return of appriXimatelY $.22~ on the 'claimed d91lar. The source
of the money isproce ds from the sale of securities hat were turned over
to the Bankruptcy Trutee by Security Pacific Clearin! Corporation and
Bradford Trust Company. These companies were cleAring agents for ESM who
held securities ,in th'ir possession for ESM. ESM oweH them $38 million
so they liquidat:.ed s etu,rities, inth, e amount of $3 anf',., th,enr,eturned app, rox-
imately $24 million b ck to the Bankruptcy Truste " w. ich has been earning
interest. An additio al ~ 3/4 million was held i ca h by the ESM company
and another ,$1.3 ,.milli n in, cash which was proceeds fror" a settlement. wi th ~.
the President of ESM. There will be a $5 million payrent from American
Savings which all tog ther ma"., kes u, p the $35 milli'i'n- I,. $10 million dollars
(or $.06~ to $.07 on ' he dollar) will go to Home at~ Savings in Ohio as
settlement of their $ 57 million claim. I!
ii
By accepting this set lement, Mr. Landis continued a~y claims that would
The benefit of this i that a considerable amount f 'ttorney fees will be
saved on the se~eral egal issues involved with t se!Savings and.Loan
Associations and how ~heY are bound in the bankru cy!i The Ohio Insurance
Fund and the Governor of Ohio have made it clear , ro'! gh their Counsel
that, if this se,ttlemnt isn't approved then they' ref, going to challenge
the status of the pub ic bodies as customers, whetr eri! or not the money
in the bankruptcy is ~ustomer property, and wheth t~ey should be sub-
ordinated as creditori. There is about $8 millio st~ll left in the bank-
ruptcy estate which i designated as non-custome prpperty which will be
distributed at the en, of the bankruptcy. Any ot r 'oney that comes in
to the bankruptcy wil also be distributed as non usfomer property accept
any money recovered f~om Bradford Trust and Secur, y acific Clearing Corp-
oration.
.VOL
I" ". , ....
Minu es, Week of December 3, 1985
Page 5:
mer property is distributed on
State and American Savings;whi
me' State and American Savings
ublic entities until such time
reanother$45 million.
settlement would not jeopardiz
nder Grant. It is hoped that
e with the public entities bec
than they have against Home,St
The iggest hurdle in the settlemen
the oney over to the bankruptcy tr
unde their collataral agreement wi
any claims which are made against u
if Jefferson County sues Bradford T
Trust claims a lien against the $26
settlement. Something will have to
that money isavc;lilable for distrib
sett ement, by litigation or by sim
whic is not a very good alternativ
to r turn that money at a later tim
thei claim.
The settlement of $.22~ would mean
Wash.ngton State customers with
erso County.
Chai man Pitts asked how good a cas
the status of the public entities b
that the State of Ohio has a pretty
publ.c entities are not customers i
the ase they would become general
woul not be able to participate in
The second issue is whether or not
are ery fiw cases under thebankru
means litiation, and appeals to mak
two 0 thre years more before any
a mi lion Ius today is worth more
now.
spons to Chairman Pitts inqui
gs sa s is all they can contri
gs ha not provided the financ
Be ore a decision is made 0
ds wi I be reviewed and soriteth
ord I en claim. The settlemen
r, ab ut $200,000.00 in the ne
y s ha e).
Comm ssion r BroWn asked what kind
agai~st Al xand, er, Grant,? The costs
will be s bstantial. The projecte
mont whic could go on for a coupl
be pensi1e because there are a la
The eeting was recessed to allow t
Sess on toldiscuss legal strategies
.lfter furth~r final budge
Tues ay ev~ning and reconvened Wedn
pres nt fot more final budget meeti
rece sed, ~he meeting did not recon
sent.
a 2 to 1 ratio;pu'lic bodies to
e non-customer prc!>pertyis distributed
ecovering $2 to eyery $1 recovered by
as they are equal': in shares which would
,
in any way the l~gal action against
lexanderGrant wi~l be more willing to
use they have les~ defense against
te and American. 'I
is Bradford Trus~.When they turned
stee, Bradfo,rd Tr~',fst, indicated that
h ESM, they are i*demnified against
by ESM's customets., This means that
ust and obtains a ,judgement, Bradford
million that is al'major part of the
be done to resolve that lien before
tion. This can bJ resolved by a
ly not acknowledg*ngit at this time.,
because of the p~ssibility of having
if Bradford Trust was successful with
Ii .
4.2 million dolla~s for all of the
thing over a mill~on dollars for Jeff-
!!
the State of Ohi~ has in regard to
ing customers? MI. Landis answered
good argument tha~ some of these
the bankruptcy s~nse and if that were
nsecured creditor, which means they
the distribution @f customer property.
his money is cust~"mer property. There
tcy code regardin,' this issue which
this determinati.n. This could take
oney would be dis~ributed. Getting
oney than getting Ilit three years from
,
i!
Y about the $5 mi~lion that American
ute, Mr. Landis r~ported that American
al records neceSSI'ryto verify this
the pettlement 0 ,fer these financial
ngwirLI have to b', done to resolve the
will save, in ters of the bankruptcy
t six'months (totil, not just Jefferson
!,
iI
"
"
are expec~ed from the case
case, Mr. <Landis answered,
budget for this 9ase is $30,000 per
of y~ars. The n~xt few months will
genu~ber of depo1itions to be taken.
e Board and Couns~l to go into Executive
in this matter. i!
II
! Ii
hearings the mee4ing was recessed on
sday lJlorning withliallBoard members
gs., When the Wedn~sdayimeeting was
ene u~til Friday ,!Iwith all members pre-
II
I!
I VJt.' II fAGE L Q aS20
I ,
'. ,.}'".o'"
'I.
~
Minutes,
Page 6:
passage
motion.
: ..~. CONTRACT AWARD: Rem de
Commissioner ennlson move t a
of the PUD and Credit Union 0 fi
price of $9,129.00 which incl de
Brown seconded the motion.
by
Richard Colton
Port of Port Townse
Gerald H. Cary
John Stull
MEETING ADJOURNED
. ':,*,L~ ~
/' ,"i~' r
.' " ~~' f:;'''''i'~ ,j ,.J( A..
",f,', "','~, . ;,.,," . .",1., ,.. ": .",11,
,'Y'..,t;) 'f"^:.>' /'y ,,' . .'~ d CI
, . ." .', ,~",:I-
, .'.,'"( . ~, ,'.1 '" ;'
~~L: 1\" l~ : .i"
:,.: ~" d! rf
~, r.' 7' :1 ~:' -".~.. ./ ," l!
., >'~,1'~'AI'd. {", " ~'," j,' i;
l", 'v' ":;, tl. .,';..,. A, . -'
f, i,,~. -~',: ",~ ,~ ,;--..
': ~'.",.- "'''"i _~c>.~lo't<i'~"_,.",~'\~_~' .;~ ~
\. ' \". ~ .-
\. ,'r,,,, ' S I) '. ' \."
AT S T -:"",,,:,,,, ,
l Vat
11 [,AG
r
3821