The Board of Island County Commissioners (including Diking Improvement District #4) met in

Regular Session on October 10, 2005 at 9:30 a.m. in the Island County Courthouse Annex, Hearing Room, 1 N. E. 6^th Street, Coupeville, Wa. Mike Shelton, Chairman, Wm. L. McDowell, Member, and William J. Byrd, Member, were present. The meeting began with the Pledge of Allegiance. By unanimous motion, the Board approved the minutes from previous meetings as follows: Special Session (Budget Workshop) September 26, 2005; Regular Session September 26, 2005; Special Session (Public Hearing – Hunting) September 26, 2005; and Regular Session October 3, 2005.

The Board by unanimous motion approved the payroll dated October 5, 2005, and the following

vouchers/warrants for payment: Voucher (War.) #222883 – 223204………….$250,533.67.

As presented by Dick Toft, Human Resources Director, the Board by unanimous motion, approved the following personnel action authorizations:

Public Works 081/05 Assistant County Engineer Replacement 10/10/05

The Board by unanimous motion approved Special Occasion Liquor License #092151 by Camano Senior & Community Center for a special occasion to be held October 28, 2005 from 7:00 p.m. to 10:00 p.m. at the Camano Senior Center, 606 Arrowhead Road, Camano Island, based favorable recommendations from the appropriate County departments.

Claim for Damages #R05-019-CD by Donald Johnston for vehicle damage was approved by unanimous motion of the Board based on the recommendation of approval by the Risk Manager, in the amount of $815.44.

Waiver of Competitive Solicitations as outlined in September 1, 2005 memorandum to the Board from M. Merringer to allow The Center to provide evaluation and treatment services to clients of Juvenile court Services was approved by unanimous motion of the Board. A second motion

adopted unanimously approved the Professional Services Agreement between Island County Juvenile and Family Services and The Center for Counseling and Health Resources (The Center) (RM-JUV-05-0083) for purposes of Chemical Dependency Disposition Alternatives (evaluation treatment services to clients of Juvenile Court Services) not to exceed $20,000 over two years.

As presented by Bill Oakes, Public Works Director, the Board by unanimous motion scheduled a Public Hearing on November 7, 2005 at 10:15 a.m. on Ordinance #C-112-05/R-45-05, Regulating Speed Limit on Bayview Road Amending Island County Code Title X, Chapter 10.01, Sections 7, 8, 17, and 18, Township 29N, Range 3E, W.M.

By unanimous motion the Board approved Adopt-A-Road Litter Control Program Renewal agreement between Island County and Lil’ Cat Boat Co., Ltd., East Camano Drive from Sunrise Boulevard to Cross Island Road.

Based on Mr. Oakes’ recommendation, the Board by unanimous motion approved two Quit Claim Deeds and a Temporary Construction Easement associated with Camano Hill Road Improvements CRP 02-04, Work Order 176, as follows:

As presented and recommended by Mr. Oakes, the Board by unanimous motion approved Resolution #C-113-05/R-46-05 In the Matter of Initiating County Road Project CRP 05-04,

The Board by unanimous motion, presented and recommended for approval by Mr. Oakes, approved Commercial and Investment Real Estate Purchase and Sale Agreement #PW-0520-240 between Island County and Fire Protection District No. 3 for the sale of property located at 31 East Harbor Road (Work Order 392) for the purchase price of $119,250.00, Lots 1 and 2, Block 1 in the Plat of Hawthorn Heights recorded in Volume 6 of Plats, page 42, Island County Washington.

Declaration of Covenant between Island County and Camano Hills Water Company, Inc. was approved by unanimous motion of the Board as recommended by Mr. Oakes, a well protection covenant to serve Camano Vista Water District, Island County well site located on Parcels 101-095 and 113-088, Sec. 31, Twp. 32N, Rge. 3E.

As presented by Mr. Oakes, the Board by unanimous motion approved Stormwater Mitigation Agreement and Covenants (PW-0520-302) between Island County and Brandon and Jill Litwillwer, Lot 1, Block 3, Division No. 6, Plat of Holmes Golf & Yacht Club, Sec. 3, Twp. 29N, R. 2E.

Proposed budget and supplemental requests are taken under advisement by the Board; no final decisions expected as a result of budget workshops. Hand-outs , if any, have been placed on file

with the Clerk of the Board.

Presentation by: Tim McDonald

Staff: Linda Telles Carol McNeil

• Same level of funding from Current Expense to Public Health Pooling and Alcoholism/Substance Abuse as 2005
• 17% increase in risk pool insurance
• 2% increase COLAs
• 1.9% retirement contribution increase
• 19% medical insurance increase

Unreserved Fund Balance. There is an unreserved fund balance 2004 of $818,085. Along with a $209,315 reserve fund for automobile replacement and $58,000 reserve fund for computer/

equipment. One liability not currently accounted for is leave "buy-out" required to compensate employees upon termination for unused annual and/or sick leave. Request to recognize that liability from unreserved fund balance in the amount of $280,000 (worst case scenario and all Health Department employees terminate). In a few years there will be a substantial turnover of not only management team but others as well because of aging.

Public Health Nursing Requirements. For 2006, will require an additional $80,817 in revenue to continue current programs at current levels, and request that amount be recognized from unreserved fund balance.

Environmental Health Requirements. Require $32,717 additional revenue to continue current programs at current levels in 2006. Request that amount from unreserved fund balance.

Additional Requests:

• Deputy Director of Administrative Services position be re-evaluated

Food Program Staffing.

Hand out: Memo dated October 7, 2005 from Keith Higman to Tim McDonald

Salary Estimate - Possible New Position

Request additional environmental health specialist II. In June this year the Board of Health revised food regulations – food establishments and food service workers in compliance with WAC 246-215 consistent with FDA model food code. Impact is an increased demand on current staff, the most significant in facility inspections from annual to semi-annual. FDA food code provides a way for facilities to reduce the number of inspections if they develop and adopt a Hazard Analysis Critical Control Point (HACCP) plan; to date very few facilities have chosen to develop a HACCP plan and semi-annual inspections are required. Additional new facility requirements include permitting and inspection of low-risk B&B facilities.

The existing position is covered 100% from revenues (annual inspection); revenues will not support the added position. For 2006 fees are estimated at $110,395; the new position alone would require $59,673 which if supported by fees would equal a 54.05% fee increase. Island County’s fee schedule compared to other counties, such as Skagit and Clallam, is quite high already.

Commissioners Discussion, Future Consideration, Follow-up:

• Public Health Pooling reserve will probably be the County’s first line of defense against any type of outbreak of any kind of disastrous disease - Avian flu concern has elevated public awareness as a potential problem in the future.
• If the County does the second facilities inspection, charge the facility an extra $300, realizing

they have the option of developing their own HACCP plan?

- Consider a second position but not full time – Environmental Health Specialist II

- Any increase in fees must at least somewhat be reasonable.

Staff: Ellen Meyer, Joyce Kasperson, Jan Ford

Commissioners [Budget Workbook pages 49-55]

Supplemental Budget Request – Camano Memo 9/19/05

Office Equipment Request – Camano Annex 8/18/05

Office Equipment Request – Camano Multipurpose Center – Memo 9/19/05

Narrative explains proposed budget for 2006 – hold the line with some adjustments as

noted within certain line items. Travel line has been increased by $350 for a total of

$6,300, which at this point compared to actual amount used (around 70%) should be

adequate for 2006.

Suggested Considerations to be determined:

• Restore 5% reduction January 2003 – Braun Consulting for County labor relations, for a

total of $2,000 per month effective with January 2006 bill and such out of pocket costs

such as travel, large copy cost, ferry, etc. Follow-up: Ask consultant what he estimates

those out of pockets expenses will total.

• Restore $100/mo. cut on Commissioners travel allowance

• Purchase BlackBerry device for Commissioners’ use [one or two].

Narrative explains proposed budget for 2006 – hold the line with some adjustments as

noted within certain line items. Request for new FAX machine for the Annex: has been

included in the Office. Equipment listing prepared by Central Services, as well as the

request for CD drive for two staff computers. A portable recorder/transcriber "back-up"

machine is now available..

Camano Multipurpose Center [used by a variety of departments]

Request to purchase:

LEOFF Disability Board [Budget Workbook page 117]

Biggest increase is in medical coverage, an additional $15,700 over 2005, based upon the breakdown of medical premiums from the Washington Insurance Fund 2006 renewal rates, based on the number of LEOFF members over 65 and under 65. There are 13 LEOFF retirees; 10 under 65; 1 that will be 2 months under 65 and 10 months over 65 for the coming year. Two are on Zenith Coverage Plan, a different plan from Group Health Options for those living out of the state of Washington.

Coroner [Budget Workbook pages 56 – 59]

Presentation by: Robert Bishop

Budget on track; nothing new to report or problems to relay that need to be addressed in 2006. New equipment working well and very happy with the new vehicle. Commented in support of purchase to Total Station [presentation during Risk Management budget by Island County Sheriff’s Department]. Total Station would provide accuracy, getting away from hand-written maps and sketches, and help to eliminate a lot of human error. If Total Station is purchased, the Corner would hope the equipment would be shared with traffic deputies for vehicle accidents, detectives and investigators for crime scenes, as well as the Coroner.

Presentation by: Jim Self Executive Director

Barbara Beardsley, Financial Officer

Hand-Out:

Map - Senior Services of Island County Service Locations

Letter dated 7/29/05 – Request for funding 2006

Senior Services of Island County Information Sheet "We Help Seniors"

2006 Projected Expenditures of Island County Funding

2005 Expenditures of Island County Funding.

Nothing to add to the budget letter sent in July. With County assistance in 2005, SSIC was able to maintain the meal services in Oak Harbor and Coupeville. Last year SSIC needed help in keeping the Oak Harbor Senior Center meal site open and the County provided that help, along With the City Oak Harbor and private citizens. SSIC still has that same basic issue and needs assistance. The thrift store seems to be working out well, but predicting a slightly lower net revenue because the increase in sales is offset somewhat by the necessity to pay employees, due to the fact that the volunteer base is aging. Contributions are also going down.

This year there has been a drop in meals on wheels, and a 25% drop in COPES meals on wheels. The COPES program is reimbursed by the State, and has gone down from approximately 6,000 meals to 4,500; the client now has to choose in-home care or meals -- in order to receive meals everyday the client has to give up 15 hours in-home care. Request increased funding from Island County of $6,082 for a total of $115,343, which equates to 6% of SSIC 2006 budget.

The Budget Director noted that last year the County appropriated an additional $6,000 to bring SSIC up to the same level of funding as for Oak Harbor Senior Center. She provided a worksheet (copy on file) to explain the SSIC budget. Lines 7 through 17 look at what the County funded in 2005 and what SSIC asks be funded in 2006. The chart represents looking at the SSIC budget overall comparing total expenditures by program to see where SSIC thought increases were, and then looking at the SSIC non-County revenue by program to see where revenue increases were. Senior nutrition shows only a $600 increase in non-County revenue.

Presentation by: V. Roxann Dnnn-Terry, Interim Senior Services Manager

Hand-out: Letter 10/10/05 re Oak Harbor Senior Center’s Budget for

2006, with 2005-2006 budget attached

Request: $63,784 for the Senior Center

$10,079 for Day Break Respite

The budget request for 2006 represents no increase over 2005 from Island County. The balance of the "partnership" has shifted from 1/3 City, 1/3 County and 1/3 Senior Center membership to ¼ City, ¼ County and ½ by senior center members. Operating and maintenance costs have increased by 4.9%. Membership and travel program continue to grow. Over 300 new members joined for the first time in 2004, and are averaging this year 15-25 new members each month. The volume of trips increased from 35 per quarter to 45-47 per quarter. Participation and service in the Adult Day Care and Respite program continues to grow.

Executive Director unable to attend, but submitted a letter of request dated July 10, 2005 [Budget Workbook page 129], for an overall increase for 2006 in the amount of $1,615. Per capita dollar amount provided on page 131 – Follow-up: get the number NWRC used to come up with the percentages by county – ask them to explain the chart

Presentation by: Sharon Hart, Executive Director

John LaFond, EDC Board Member

Hand-outs:

EDC Quarterly Update Report,. Third quarter 2005

Business Recruitment Outreach Program

Business Retention & Expansion

Telecommunications, Transportation & Utilities

Partnerships, Participation & Other EDC General Activities

Quarterly Business Activities

Clients by Quarter, 2005

Outreach Program Chart – 2004-2005

Frequently Asked Questions - SBA

Article: "Study Gives Island, San Juan Counties High Scores"

Highlights: Your 2005 Business Assistance Contribution

Budget Proposal for 2006

EDC budget request for 2006 is $600 additional for the outreach program than the previous year. The $32,500 is for the business assistance clients. Behind the budget request are highlights of the 2005 contribution from the County, separated to show the two different types of funding sources. EDC has not yet discussed formally with the City of Oak Harbor issues related to the last large parcel for major commercial development; EDC has been trying to get the City to understand the value of Midway option and EDC realizes the City needs to make some hard decisions. EDC shows folks what is available for matching their desires to the area, and the zoning is the issue handled at the City.

No budget submittal, and at this point included in the 2006 budget at the same dollar amount as 2005. The Budget Director will follow-up with a phone call to the Executive Director of CSSA.

State Auditor Fee (Page 126)

The majority of the increase shown has to do with the way the County has been allocating State Auditor’s invoices between the major fund groups; $47,000 represents just the Current Expense

portion. The County’s Chief Deputy Auditor reviewed past bills to determine whether the County had been using the correct percentages and making the correct allocation. The largest change was to ER&R, which used to be allocated at 19% and now dropped to 5%.

NWAPA. Small increase in the amount of $142 requested for 2006 budget, for a total of $17,880.

State Purchasing contract. Budget request is the same as 2005, for a total of $2,000.

There being no further business to come before the Board, the Chairman adjourned the meeting on conclusion of a joint Planning Commission/Board meeting. The Board will meet next in Special Session at the Camano Multi-Purpose Center, 141 NE Camano Drive, Camano Island, to conduct a public hearing at 2:00 p.m. on Ordinance #C-103-05 (R-44-05) Ordinance Regulating Speed Limit on Brokaw Road Amending Island County Code Title X, Chapter 10.01.

BOARD OF COUNTY COMMISSIONERS

ISLAND COUNTY, WASHINGTON

______________________________

Mike Shelton, Chairman

_____________________________

Wm. L. McDowell, Member

_____________________________

William J. Byrd, Member

ATTEST: _______________________

Elaine Marlow, Clerk of the Board