The Board of Island County Commissioners met in Special Session on October 14, 2005, to conduct two special sessions: (1) beginning at 9:30 a.m. in the Island County Courthouse Annex, Planning Director’s Office; and (2) Budget Workshop beginning at 1:30 p.m. , 1 N. E. 6^th Street, Coupeville, Wa. Commission members Mike Shelton, Chairman, Wm. L. McDowell, Member and William J. Byrd, Member, were present.

Chairman Shelton convened the Special Session at 9:30 a.m. announcing that the Board would meet in

Executive Session to discuss with legal counsel representing the County pending litigation, as allowed under RCW 42.30.110 (1) (i). Originally the Executive Session was estimated to last approximately two hours; however, at 11:30 a.m. when determined more time was necessary, the Chairman returned to open public special session to announce that the Executive Session would last another forty-five minutes. No announcement was anticipated after the Executive Session in open public session. Executive Session concluded at 12:15 p.m.

The Board of Island County Commissioners convened at 1:30 p.m. for a budget workshop relating to Public Works Department and Capital Funds. Budget workshop times are approximate and may be adjusted. Proposed budget and supplemental requests are taken under advisement by the Board; no final decisions expected as a result of budget workshops. Hand-outs are on file with the Clerk of the Board.

1:30 p.m. Public Works Budget Workbook pages 363-460.

Presentation by: Bill Oakes

Staff: Dick Snyder; Jack Taylor

Budget summary:

ER&R 3,423,159.00

Paths & Trails 996,434.00

Public Works 328,450.00

Solid Waste 5,958,305.00

Storm & Surface Water Utility 31,110.00

Diking Imprv. District #4 2,000.00

Construction & Acquisition 450,000.00

Continue with "No Spray" policy. 2003 was the first full year of mowing versus chemical control.

Tracking costs in 2003 – 2005 shows an increase in 2005 with a significant increase in cost.

Maintenance Management System. CRAB requirement to have in place beginning the reporting to CRAB in 2007. Propose purchasing the software (about $40,000) in 2006 and have an opportunity to work with it a full year prior.

LOS Demand. Continuing to see homes being constructed placing additional demand on the transportation system. Honeymoon Bay at 525 project is tied to concurrency; with potential for turn lanes on side streets and light.

Surface Water Management six-year drainage CIP plan approved with an annual capital budget of approximately $600,000 (funded 50% Roads, 50% REET). Demand for drainage fixes viewed as a part of stormwater management. See page 463 for list of 2006 projects.

Internal service fund to account for the financing of equipment, materials and facilities provided to the Road Fund. Intent is to maintain a $500,000 minimum cash balance for emergencies/unexpected events such as fire or vandalism. Reviewed with the Board the proposed 2006 equipment purchases, shown on page 451 of the Budget Workbook.

Mowers w/implements/tractors (4). Many hours on the mowers now basically as a result of vegetation management; shoulder mowing is rough and hard on mowers. The truck 4 x 4 being replaced is used for field inspection. Will look to see what type 4 x 4 is available from State contract. The vehicle being replaced at the end of 2004 had over 180,000 miles.

At the first Staff Session in November, will bring a revised ER&R rate schedule adjusting the rates upwards.

• Complete Non-motorized Trail Plan update

• Continue to look at cost-saving opportunities on the Maxwelton Trail

2005 shows an eight percent volume increase, and continuing to see that volume increase above the population growth. Long haul waste contract for open top containers off Whidbey and Camano is up for negotiation next year.

Twenty-eight parking stalls will come back for use; will work with Town of Coupeville as far as County vehicles. Commissioner McDowell suggested a pedestrian cross walk be considered from the old Courthouse to the Annex, rather than forcing folks to walk down to the stop sign, cross and walk back. Mr. Oakes believed that would be considered a "mid-block" crossing which typically is discouraged.

Status quo. Annual Maintenance/use of fund balance $2,000

Presentation by: Elaine Marlow, Bill Oakes, Dan Sherk, Terri Arnold

Hand-outs: Budget Workbook pages 460 - 483

Combined REET 1 and 2 Revenue History

REET 2 2005 Estimates

Construction & Acquisition [page 482]

Strictly pass-through for South Whidbey Commons CDBG grant. Expect to start construction early next year; received extension on construction funds through next year. County has to ensure they meet terms of the federal grant.

Conservation Futures [page 478]

Budget shows only the debt for 2006 and what the Budget Director believes will be available in new money for 2006, which is about $388,000. It does not show any carry forward projects because the 2005 Conservation Futures cycle has not yet been completed. Proposed revenue for 2006 is $675,000 off set by $120,000 [tax revenue not realized] $556,000 the Budget Director believes will be collected next year, and out of that will spend $153,000 on debt service and about $15,000 regular on-going of administering that fund, leaving $388,000 for new projects [summarized on page 461]; budget probably will have to be revised for 2006.

Heller Road Marsh. Funding approved for Oak Harbor for this purpose has not been spent. This has been called to the City’s attention.

Follow-up: Betty Kemp to report back to the Board on the status. Budget Director noted that the County should look into getting the money back into the County fund until the City purchases the property. State Auditors look at how the County handles Conservation Futures dollars.

REET 1 allows administrative projects; REET 2 dollars cannot be spent on administrative buildings. Board tasked Budget Director with several goals when looking at these funds:

1. Plan for existing bond debt
2. Fund current and on-going approved projects
3. How to achieve building a new Camano Annex .

Revenues continue to increase. For 2004 revenue reached $1.4 million, and probably will reach 1.7 million dollars in 2005 in each of the funds this year, dependent on real estate market and the Budget Director has reviewed concerns dealing with that issue, as well as the issue of future bond debt obligations close to a million dollars to be paid out of the two funds combined.

REET 1. Page 477 looks at REET 1 and at 2006 shows where the Budget Director thinks the fund balance will be and will end up, and what should be done with any ending fund balance.

Budget Director recommends and Board agreed:

• Budget Director to start setting aside $200,000 per fund per year for future debt service.
• Pay off Interfund Loans

Facilities and Maintenance REET 1 (page 462). Projects planned for 2006 reviewed by Mr. Sherk.

REET 2. (472)

Factored in six year plans

Taking on debt service

Parks projects

Drainage Projects

Includes (line 15) $1600/year annual increase for the change in storm and surface water

Discussed at staff session

Placeholder of $100,000 for GMA infrastructure planning

Drainage Project List page 463. Shows all the Drainage projects identified in the approved TIP for 2006 and how those projects are funded. Some projects have been carried forward from previous years and REET’s contribution annually pegged at around $300,000. Funds in the amount of $735,000 come from the Road Fund and $645,000 from REET 2. Nearly a year’s worth projects are being carried forward. Surface water reorganized with a mission to get pipes in the ground and are working on that back log. Typically can put out slightly over a million dollars worth of projects a year.

Parks Projects pages 465-466

Taylor Property. Feasibility design study $10,000. Envisioned are amenities such as picnic and/or play facility. County property corner butts up against the State Park at the lake. Ingress and egress is the challenge, coming out onto Highway 20 at a very difficult point.

Follow-up: (1) State Highway 20 work being done by WSDOT, Mr. Oakes and Ms. Arnold to talk with the State Highway Project Engineer to see if anything can be done to assist with the difficult access point; (2) look into not only NAS noise zone issue, but the NAS Potential Accident Zone; and (3) discuss at future Staff Session with the Board.

Camano Multi-purpose Center - $15,000. Basic projects: bathrooms, carpeting, painting and lighting.

No decision; leave the funding as proposed, decide later. Review the overall plan for the Camano Annex property and how that plan addresses the Center. Board is not sure it is realistic to remove the Center and incorporate the meeting rooms in the new building.

Camano Parks Shop. $50,000. Building is attached to CASA. Proposal is: heat, a toilet, lighting and fixing rolling bay doors. Review further.

BOARD OF COUNTY COMMISSIONERS

ISLAND COUNTY, WASHINGTON

______________________________

Mike Shelton, Chairman

_____________________________

Wm. L. McDowell, Member

_____________________________

William J. Byrd, Member

ATTEST:

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Elaine Marlow

Clerk of the Board