WSAC General Membership Meeting

Transcription

1 WSAC General Membership Meeting The Davenport Hotel Spokane County Spokane, Washington November 20, 2014

2 WSAC GENERAL MEMBERSHIP MEETING Thursday, November 20, 2014 Spokane County 3:45 p.m. 5:15 p.m. The Davenport Hotel Pennington Grand Ballroom C Spokane, Washington TIME* Encl. PRESENTER(s) AGENDA TYPE 3:45 p.m. President Price Johnson CALL TO ORDER President Price Johnson 1. APPROVE Agenda Action Eric Johnson 2. Executive Director Report Report President Price Johnson 3. President s Message Report 4. Amend the WSAC Bylaw associated with the process to adopt WSACs Legislative Agenda Staff presentation and Membership Discussion President Price Johnson Josh Weiss Actions: Action Consider adoption of amendments to WSAC Bylaws: Section 3.18 Legislative Steering Committee Section 3.1 General Powers (Board of Directors) President Price Johnson Eric Johnson Karlyn Shannon Proposed WSAC Operating Budget Staff presentation and Membership Discussion Actions: Consider adoption of 2015 Proposed Operating Budget and Dues Schedule Action Commissioner Bouchey Councilmember Lambert Commissioner Brady Josh Weiss Proposed WSAC Legislative Package Presentation and Membership Discussion Actions: Consider adoption of WSAC Legislative Agenda Action Commissioner Dahlstedt Eric Johnson Proposed WSAC Federal Issues Agenda Presentation and Membership Discussion Actions: Consider adoption of WSAC Federal Issues Agenda Action Commissioner Dahlstedt 8. NACo Board of Directors Reports Report Commissioner Mielke Commissioner Walter NACo Steering Committee Members 9. NACo WIR Report Report 10. NACo Steering Committee Reports Report WSAC Members 11. WSAC Members Reports from activities on Statewide Boards and Commissions Report WSAC General Membership Meeting November 20, 2014 Page 1 of 49

3 TIME* Encl. PRESENTER(s) AGENDA TYPE Provided In Writing 12. WSAC Affiliate Reports Report Commissioner Mielke 13. Installation of WSAC Officers and Board of Directors Commissioner Sauter 14. President Elect Message 5:15 p.m. President Price Johnson MEETING ADJOURNED *Times are approximate only WSAC General Membership Meeting November 20, 2014 Page 2 of 49

4 November 20, 2014 TO: FROM: SUBJECT: WSAC Members Eric Johnson, Executive Director 2014 Annual Executive Director Report Outstanding Leadership For the past several years, I have expressed my sincere appreciation to our WSAC Leadership that work tirelessly on your behalf. And once again, I can say without reservation, your Association leadership is engaged, effective and respected. I must also recognize that membership engagement is as throughout the organization continues to grow and excel. In particular, please allow me to thank the unparalleled leadership of: President Price Johnson WSAC Officers Vice President Sauter, Secretary Treasurer Wright, and Most Immediate Past President Todd Mielke LSC Co Chairs Commissioner Bouchey and Councilmember Lambert Board of Directors Legislative Steering Committee Members Coastal Caucus Chair Commissioner Phil Johnson Columbia River Commissioners Policy Advisory Group Chair Commissioner Jewell Timber Counties Chair Commissioner Cothren WSAC Members... This is a time of year that brings a wide range of emotions as we say "au revoir" to outgoing WSAC members. As of this writing it appears that 16 Counties will have changes in their County Legislative Authorities (a few recounts looming): 2 WSAC members lost in the primary election (Island County Commissioner Vaughn and Cowlitz County Commissioner Misner) 4 Incumbents are trailing in 4 counties (Thurston County Commissioner Valenzuela, Kitsap County Commissioner Streissguth, Skamania County Commissioner Anderson, and Pierce County Councilmember Flemming) 10 New Commissioners/Councilmembers will fill vacancies created by retirements (Clallam County Commissioner Doherty, Clark County Commissioner Ed Barnes, Columbia County Commissioner Charles Reeves, Ferry County Commissioner Brian Dansel, Garfield County Commissioner Dean Burton, Grays Harbor County Commissioner Herb Welsh, Jefferson County Commissioner John Austin, Lewis County Commissioner Lee Grose, Skagit County Commissioner Sharon Dillon, Walla Walla County Commissioner Greg Tompkins) There were no changes in 23 County Legislative Authorities/County Executives: 2 Counties had no election in county legislative/executive races King and Whatcom 16 Incumbents appear to have won their re-election 7 Incumbents were unopposed 1 WSAC General Membership Meeting November 20, 2014 Page 3 of 49

5 County Home Rule Charters Three counties had elections associated with a County Home Rule Charter: Clark County Citizens voted 53.36% % to create their counties first Home Rule Charter which includes 5 council members, 4 elected by district and the chair elected countywide with an appointed county manager. Whatcom County and Clallam County elected members to their respective Charter Review National Association of Counties For the past several years, WSAC members have been active on National Association of Counties (NACo) Steering Committees and Caucus'. This year over 40 WSAC members and their staff are participating in some manner on a NACO Steering Committee, Caucus, or Task Force. Additionally, these WSAC Members hold leadership positions: NACo Board of Directors King County Councilmember Jane Hague, Past NACo President Skagit County Commissioner Kenneth Dahlstedt Island County Commissioner Helen Price Johnson Clark County Treasurer, Doug Lasher represents National Association of County Collectors, Treasurers and Finance Officers on the NACo Board of Directors. Western Interstate Region Chelan County Commissioner Ron Walter, Past President Spokane County Commissioner Todd Mielke NACo President Riki Hokama made the following leadership appointments to NACo Steering Committee Leadership: Health Steering Committee Skagit County Commissioner Kenneth Dahlstedt, Vice Chair Public Lands Steering Committee Chelan County Commissioner Ron Walter, Chair For , WASC regained its Top-12 position on the NACo Board of Directors. A Top 12 state is identified by NACo as one of 12 states having the highest number of votes as certified by the Credentials Committee based upon NACo membership as of 60 days before the first day of the annual conference, provided that such state has either 50 percent of its counties as active member counties or has active member counties representing 50 percent of the state s population. Election for this second NACo Board seat is underway now. WSAC is working with King County Councilmember Hague in preparing for King County hosting NACos Large Urban County Caucus conference October Statewide Boards and Commissions Nominating and appointing elected and appointed county officials to nearly 75 Statewide Boards and Commissions is a tremendous commitment of time and energy for WSAC members, WSAC Staff, and County elected and appointed officials. Over 50 WSAC members and over 25 county staff represent WSAC and Washington's Counties on statewide boards, commissions, workgroups, taskforces, etc. Organizational Performance Improvement Plan In September 2012, following months of analysis, WSAC launched a Performance Improvement Plan that included a re-organization component, personnel changes and established of a set of performance expectations. For second consecutive year staff reviewed and measured our progress on a set of 9 objectives and 15 specific measurements (an additional objective/measurement was added in 2014 dealing with 2014 Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 4 of 49

6 implementation of retention policy). A copy of our Performance Improvement Plan Scorecard was provided to the WSAC Board of Directors at their September meeting. Goals and Actions As of part of WSACs annual budget adoption a set of goals and actions are included. At each meeting of the WSAC Board of Directors, staff provides a status update on progress towards implementation. These actions are an outgrowth from staff and WSAC Board Planning meetings and are targeted at process improvement, creating efficiencies and increasing program services. Partnerships WSAC continued its partnerships added contractual partnerships with: Department of Natural Resources Timber Counties Washington State Association of County Engineers Washington State Association of County Human Services Washington State Association of Local Public Health Officials Department of Ecology, Office of Columbia River Puget Sound Partnership County Road Administration Board Office of Financial Management WSAC leadership is working to develop a full partnership with the Washington Association of County Officials in the development and implementation of the Counties Fiscal Sustainability Initiative. WSAC and WACO are also exploring other means to gain administrative and program efficiencies. WSAC continues to work closely with many other partner organizations with close working relationships with: Washington State Association of Cities Washington Association of Prosecuting Attorneys Washington Public Ports Association Association of Washington Business WSAC also works extremely close, and appreciates the collaboration with a number of staff from individual counties in particular those counties that either have on staff or contract, government liaisons and coordinators. These relationships are vital to the overall county advocacy strategy. Outreach Significant work is done by staff working with not only Legislators but legislative committee and caucus staffs. We engage regularly with the Executive and Judicial Branch. In 2014 I once again met with nearly every Statewide Elected Official and relevant Appointed Agency Director. Affiliates WSAC staff and leadership continue to be active in working with affiliate partners during 2014 Supporting the ongoing work of the Washington State Association of County Engineers, including Managing Director Gary Rowe, supporting conferences and professional development launching our transportation performance metrics dashboard in conjunction with CRAB. WSAC continues to keep pace with issues and ideas from the Association of County/City Information Systems (ACCIS) in the development of a consortium to support regional or consolidated information services system delivery. Continued to support the Washington State Association of Local Public Health Officials, sharing staff, resources and coordinating activities and programs. Brad Banks continues to provide steady leadership as the WSALPHO Managing Director Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 5 of 49

7 Laura Merrill supports and coordinates activities with the Washington Association of County and Regional Planning Directors. In particular, SEPA and GMA topics as well as exempt well and rural water issues as well as other related land use and natural resource policy issues. Abby Moore works with the Association of County Human Services and their three groups dealing with chemical dependency, mental health, and developmental disabilities as well as other human service issues including housing. The primary focus over this past year has been on the integration of behavioral health programs and services. Washington County Administrative Association continues to be very valuable in providing information, ideas, and input on WSAC Policy and providing timely information in response to surveys and questions. Members of this organization are providing tremendous leadership and work in data gathering to support WSACs Fiscal Sustainability Initiative. Washington State University Extension Directors - continues to be important in conference planning and identifying resources for sessions and are celebrating their centennial! Washington Association of County Commission/Council Clerks what many will argue is the hub of of operations for most counties. Here at WSAC we depend on clerks to disseminate information, provided scheduling for members, and provide information when requested. WSAC continues to provide financial support to offset the cost of their annual meeting that is now in May of each year. Finance and Administration WSAC 2014 revenue and expenditures remained relatively stable. General WSAC dues continued to be lower than they were in Staff turnover, while creating some holes in production, has alternately filled gaps where budget may be lacking. Since this is only a temporary solution to small budget shortfalls WSAC continues to look for new non-dues resources, find ways to save where possible, improve processes, reduce expenses and streamline operations. With the leadership of your WSAC Officers and discipline of staff, we have continued to maintain important basic services while adding or improving other services. The independent audit firm of Clark Nuber P.S. issued an unqualified or "clean" audit report for WSAC's 2012 and 2013 financial statements. This audit included a review of WSAC's internal financial controls and no issues were brought to the Audit, Investment, and Finance Committee's attention. The next audit will take place in mid-2016 for fiscal years 2014 and If anyone is interested in reviewing WSAC s internal controls, our accounts, our systems, or serve on the Audit, Investment, and Finance Committee, please contact WSAC. The WSAC Board of Director's, at their September meeting, approved the closure of the Counties Select Retrospective Rating Program and County Workforce Safety Alliance. After 10 years of operating the current program, WSAC found that L&I's moving targets has made it impossible to maintain a positive retro program with a small number of members and pooling funds. Over the past year current members of the program have decided that termination was the best course of action. Many of the current members of the program plan to transition services to the Association of Washington Cities Retro Program which is similar in nature albeit much larger than the WSAC program. Policy and Legislative Relations One of our core organizational activities is to advocate WSAC positions with the state legislative, executive, and judicial branches on behalf of, and with WSAC members. Policy staff works actively with the Legislative Steering Committee (LSC), workgroups, and affiliates to develop legislative positions and strategies. During the 2014 legislative session, WSAC built upon the foundation established in 2013 to implement a strategic approach in communicating with legislators about the role of counties and the Fiscal Sustainability Initiative. The Legislative Steering Committee was as organized and as active as we ve ever seen it. In less than three months, LSC members met with over 80 Legislators to discuss the role of counties and the need for our fiscal sustainability. Many of these meetings were held jointly with members of the Washington Association of County Officials. The organizations are working closely together and we are encouraged by the effort that the members of both 2014 Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 6 of 49

8 organizations are investing in this partnership. This is perhaps the most exciting development from the 2014 Legislative session. WSAC tracked hundreds of bills, and as is typical, not many of them passed. One significant bill that did pass allowed four counties (Ferry, Pend Oreille, Columbia and Garfield) a process to opt out of the GMA. The Legislature also passed a bill that begins the integration of chemical dependency and mental health programs. At the beginning of session, this bill was considered a significant threat to the important work done at the county level, and through WSAC s efforts a good compromise was reached. After a multi-year effort to oppose legislation expanding the tribal property tax, a slim version of the bill was signed into law by the Governor. The bill included a payment in lieu of taxes to counties and cities, and the tax exemption was limited to properties owned by a tribe in 2014, thus limiting the growth of tax exempt tribal properties. Perhaps no single policy issue delivered more intrigue then the alignment of medical and recreational marijuana systems, and whether to share revenue with local governments. In the midst of these discussions the Attorney General surprised everyone by issuing an opinion supporting local governments ability to ban locating recreational marijuana retail, production and processing facilities. Preemption of this authority was added into the discussion. This ended up being one of the last issues discussed in the session, but at the end of the day no bills passed. For the first time in several years, the Legislature adjourned its 2014 session on time. They did so, however, without passing either a transportation revenue package or a state capital budget. These issues, along with marijuana, will undoubtedly return in the 2015 session. Following session, the policy program shifted gears immediately, utilizing the Fiscal Sustainability Workgroup to develop and hone potential legislative proposals for The Legislative Steering Committee met in May and chose eight ideas to pursue in 2015, and adopted a preliminary Legislative Agenda in September. Member Services & Communications Division 2014 was a year of transition for the Communications & Member Services division as new team was formed and their collective skill in communications, graphic design; social media and marketing were put to work. The majority of the year was focused on streamlining internal processes, putting in place the staff resources, and identifying new technologies to improve electronic communications and provide additional capacity for member services. Communications & Member Services staff supported the following in 2014: Produced and re-branded the Federal Issues Document Worked with policy staff to develop member resources to be used during the legislative session. Hosted our third annual Healthcare Benefits Forum and second annual Professional Development conference in early June. Crafted new policies and procedures with the Governor s office to expedite the appointment process for statewide boards and commissions. Implemented new cloud technologies that will assist staff when they are working remotely. Transferred technology administration to outside vendor, restructured technology support to be provided through Washington Counties Building in partnership with WACO. Continued to increase and support our training opportunities, primarily by co-sponsoring workshops and webinars with local government partners Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 7 of 49

9 Completed re-branding and reformatting the County Leaders Conference (WSAC Annual Conference). Also developed new marketing materials and sponsorship opportunities, which were used to increase sponsorship revenue by $17,000. After a year of re-building, staff has a series of new services and technologies slated for 2015 including a member access point and mobile friendly website. As we begin this process, we will be reaching out to our members to collect new ideas and feedback. Program Services WSAC has several contracts with state agencies to provide member services, policy coordination feedback, and coordination. Below is a brief report from each of the contracts. Timber Program The WSAC timber program serves 27 counties that contain state and federal land. Program Highlights for this year include Meeting in Chelan County to hear updates on federal public land issues across the West, Department of Natural Resources staff and WSAC members who represent counties on the Board of Natural Resources and the Forest Practices Board. The Forest Practices Board has asked the Timber Fish and Wildlife (TFW) policy group to study the data on unstable slopes and deep seated landslides, working through the Cooperative Monitoring, Evaluating and Research group (CMER) and make recommendations, if applicable to the FPB for possible rulemaking. The counties have a representative on the TFW policy group and WSAC staff participates to monitor information that may impact counties. WSAC staff has attended several meetings of the Joint SR 530 Landslide Commission. The commission is a group of citizens appointed by Governor Inslee to look at geologic and emergency management lessons learned from the tragic landslide in March. The commission will have a report to the Governor by the middle of December. Findings and recommendations could affect both forest practices and county land use practices. Lewis County Commissioner Lee Grose represents counties on the Board of Natural Resources as they manage state forest land for trustees such as schools and counties. They have several planning efforts currently including the sustainable harvest calculation and the habitat conservation plan for the marbled murrelet. Commissioner Grose is leaving the Board in December, and by statute, WSAC timber counties are responsible for selecting a new representative. Through an election process by counties with state forest board land, Clallam County Commissioner Jim McEntire was elected to be the county representative starting in January WSAC has a Cooperative Agreement with DNR to facilitate the active participation by county governments in natural resource issues under the jurisdiction of the DNR, including through provision of technical expertise to the counties' representatives to the Board of Natural Resources and the Forest Practices Board, and to provide the foundation for active and productive communication between DNR and WSAC timber counties on issues of mutual interest. WSAC meets monthly with DNR and starting in November will have a new liaison, Laurie Benson. In the past, WSAC had a Memorandum of Agreement with the US Forest Service and the Bureau of Land Management for communication and coordination. WSAC has worked to update and renew this agreement and at the November timber meeting, USFS representatives will be present to sign the new agreement. Several timber county members participate in the National Association of Counties Western Interstate Region (WIR) as it deals with public land in the western states. WSAC staff participates in these meetings and attended the meetings in Anchorage, Alaska and Malta, Montana this year as well as monthly NACo Western Region Calls Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 8 of 49

10 Columbia River Water Supply Development Program The Commissioners Policy Advisory Group (PAG) will be scheduled to meet four times during 2015 three meetings in Moses Lake and one meeting in conjunction with the next annual conference. Continued analysis and advocacy associated with the Columbia River Treaty. The contract with the Department of Ecology, Office of Columbia River, which funds this work, expires June 30, 2015, WSAC and the Office of Columbia River intend to continue this partnership. Accomplishments in 2014 include: Continued participating in the Columbia River Policy Advisory Group through our four county commissioner members: o Chelan County Commissioner Ron Walter o Grant County Commissioner Richard Stevens o Yakima County Commissioner Mike Leita o Kittitas County Commissioner Paul Jewell Major program highlights included: o Future funding of the program, which will have spent $185 million of its original $200 million by o the end of the 2015 biennium. Under consideration for the upcoming legislative session is a potential referendum to the people which would provide funding for stormwater, water supply, and floodplain management. Held a special meeting in Spokane during October, 2014 with the British Columbia Local Governments Committee to discuss common interests related to Columbia River Treaty; potentially working on a joint request to both governments for specific studies. Coastal Caucus/Puget Sound Partnership In 2014, the Puget Sound Partnership hired a new Executive Director, Sheida Sahandy, who wants to better focus agency efforts and be seen as the backbone agency for restoring the Puget Sound. Agency efforts are focused on three strategic initiatives: prevent pollution from urban stormwater runoff, protect and restore habitat and restore and re-open shellfish beds. The following items were accomplished to strengthen the partnership between counties and cities and the Puget Sound Partnership: Monitored and reported on Puget Sound Partnership efforts that involved county and city policy interests to WSAC and AWC policy staff, the County Coastal Caucus and Puget Sound Cities group. Participated on the Ecosystem Coordinating Board (ECB) subcommittee to develop funding strategies to implement the Action Agenda's three strategic initiatives and helped to prioritize specific recommendations for the stormwater initiative. Facilitated discussions to prepare local government members of the Ecosystem Coordinating Board (ECB) with input from other Puget Sound jurisdictions. Attended Leadership Council and Ecosystem Coordinating Board meetings and distributed relevant materials and information to County Coastal Caucus and Puget Sound Cities. Planned, organized and facilitated meetings and webinars for the County Coastal Caucus and Puget Sound Cities Group. Topics included shoreline armoring, oil transportation, updates to the Action Agenda, water infrastructure proposal and legislative updates. Planned and coordinated Puget Sound Partnership conference session at the AWC and WSAC annual conferences. Coordinated with WSAC and AWC staff to participate in the Marine Oil Transportation Study. Transportation Performances Measure Program WSAC has continued its contract with the Office of Financial Management (OFM) to implement and enhance a set of transportation related performance measures for counties. Along with Washington State Association of County Engineers Association Managing Director Gary Rowe s work - WSAC is contracting with Kjris Lund and Kathy Scanlan to continue work on the county transportation metrics dashboard with our partner, the County Road Administration Board (CRAB). The dashboard can be found at: Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 9 of 49

11 WSAC also produced a first of its kind, Counties Attainment Report associated with looking at county transportation metrics. This report can be found at: Kathy Scanlan is working with CRAB to develop a road preservation forecast tool to look road conditions over time dependent on the level of resources available. WSAC has contracted with Cascade Software to develop a capital program planning tool. The software application will enhance current financial and project management programs (WinCAMS) already in use by 24 counties and will make the program planning tool available for all other counties to use at their discretion. Again, these efforts are being done in coordination with CRAB, which is a great partner to work with. Litigation Update WSAC faced minimal litigation in 2014, concluding the West vs. WSAC Public Records Act litigation. This lawsuit was the last of three brought against the Association by Olympia resident Arthur West. In 2010 the Thurston County Superior Court held that WSAC is the functional equivalent of a public agency and is subject to the Open Public Meetings Act and the Public Records Act (PRA). The final outstanding lawsuit was based on a 2009 records request, made by Mr. West before the court had ruled in the first case that the association was subject to the PRA. The plaintiff did not pursue this case for over a year and a half after it was filed, but reactivated it in WSAC made a motion to dismiss the case for failure to prosecute, which the Thurston County Superior denied. The court ruled in March of 2013 that WSAC had violated the PRA, though also found that certain documents withheld by WSAC as attorney client privileged were properly withheld. The court levied a penalty of $3510 and also ruled that the plaintiff should be awarded attorney s fees, but did not rule on the amount. Plaintiff filed a late motion for reconsideration of this March order, which the court struck without even hearing. Plaintiff then made a motion for an award of $28,000 in attorney s fees. The court awarded $14,630 in May, which WSAC insurance promptly paid. Plaintiff appealed both the March and May orders, though the Court of Appeals ruled that the appeal of the March order was untimely. The plaintiff filed a motion to modify the ruling, which was denied on November 13, The only issue remaining was the May order dealing with attorney s fees. Though the plaintiff had already appealed the order, he essentially abandoned the case in early The court scheduled their own motion to dismiss the case, and did so on March 10, WSAC Amicus Briefs In 2014 WSAC was involved in three Amicus Curiae briefs. City of Burlington v. State Liquor Control Board The case originated when the owner of a former state liquor store applied Washington Liquor Control Board (Board) to relocate the store to a different location. The Liquor Privatization Initiative, , explicitly provided that former state liquor stores were to be conveyed to private buyers, with the former state stores to remain at the store's current site in the City of Burlington. In this case, and without any specific authority to do so, the Board granted the application of a mini-mart owner to transfer the location to another site close to a local high school and park. The City was concerned about a re-location of the liquor license, and raised its concerns with the Board. The Board denied the City's request for a hearing on the issue, and the City was thus unable to create a record. The Board then granted the applicant's request to re-site the license. The City sought judicial review under the Administrative Procedures Act of the Board's decision in Thurston County Superior Court. The court did not get to the merits of the City's appeal, whether the Board had the authority to transfer the situs of a license under the circumstances. Instead the court dismissed the appeal concluding that the City lacked standing to raise concerns about the license Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 10 of 49

12 Thurston County requested that WSAC file an amicus brief, which was jointly filed with the Washington State Association of Municipal Attorneys. We believe that this is a "bellwether" suit. A win for the Board would dramatically reduce the chance that counties and cities would be able to challenge adverse Board licensing decisions. Moreover, this issue is magnified in that the Board is expected to use similar licensing procedures for marijuana businesses. The WSAC brief was filed with Court of Appeals in July of 2014, and was accepted by the court. The case was transferred to Division I in Seattle for court workload purposes in September, 2014 and has not been heard yet. Kitsap County Sheriff s Office Lieutenants Association v. Kitsap County In this case, the Sheriff s Association brought an unfair labor practice complaint against the county with the Public Employment Relations Commission. The Sheriff s sought attorney s fees, but the hearing examiner and Commission did not award them. Rather than appealing the attorney s fee issue to the Superior Court, the Sheriff s filed a new civil action in Superior Court, seeking fees under a separate statute (wage claims statute, ). The Superior Court ruled in favor of the Sheriff s, and the county appealed to the Court of Appeals. On September 2, 2014, the Court of Appeals overturned the lower court, finding that the wage claims statute does not apply to attorney s fees and costs incurred during unfair labor proceedings under RCW The union did not appeal. Washington Education Ass n, et al. v. Washington Dep t of Retirement Systems (UCOLA) and Washington Education Ass n, et al. v. Washington Dep t of Retirement Systems (Gain-sharing) The plaintiffs in these cases (unions and state employees) claimed a permanent right to two pension enhancements provided by the Legislature, even though the Legislature clearly stated when it enacted the benefits that it could repeal them. The Legislature enacted the Uniform COLA (UCOLA) in The UCOLA provided annual increases in the monthly retirement payments of Plan 1 retirees. The Legislature made clear that: The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contract right to receive this postretirement adjustment not granted prior to that time. Former RCW (6). The Legislature repealed the UCOLA in 2011, cancelling future UCOLA increases, resulting in the litigation. The cost of reinstating the UCOLA would have been around. Reinstating the UCOLA would have cost the state around $4.3 billion and local governments $3.3 billion over 25 years. Gainsharing was enacted by the Legislature in Gain-sharing gave Plan 1 and 3 members a share of extraordinary investment gains. The Legislature made clear, however, that: The legislature reserves the right to amend or repeal this chapter in the future and no member or beneficiary has a contractual right to receive this postretirement adjustment not granted prior to that amendment or repeal. Former RCW The Legislature repealed gain-sharing in 2007, after paying gain-sharing benefits already earned. Had the court reinstated gain-sharing, it would have cost the State $1.6 billion and local governments $1.7 billion over 25 years. In both cases, the State argued that the court cannot override the Legislature s plain language denying any permanent contractual right to gain-sharing or UCOLA and reserving the right to repeal both benefits. In addition, both repeals were reasonable and necessary in light of the significant cost of the benefits and the recent economic crisis, and the State provided valuable replacement benefits. Spokane County requested WSAC s participation, and WSAC filed a brief on September 24, The Supreme Court heard arguments in October, On August 14, 2014 the Supreme Court ruled in favor of the Legislature, finding that: the Legislature is allowed to condition its grant of pension enhancements using express language in the statutory provision that creates the right. Thus, the repeal of the UCOLOA could never substantially impair existing contractual rights because a repeal of the program was expressly 2014 Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 11 of 49

13 anticipated by the language of the contract and the repeal of gainsharing did not impair any contract rights of employees because the statute enacting gain sharing made provision for its eventual repeal. WSAC Staff Our work at WSAC is focused in four major areas to serve WSAC members. Advocacy Training and Education Technical Assistance and Coordination Business Service Enterprises The WSAC staff continues to excel. They are responsive, and do an excellent job representing the WSAC Membership and their positions. They are a highly motivated, driven, member oriented group striving for excellence on your behalf. I am very, very proud of the work they each do to serve you. I cannot thank them enough for their dedication, commitment to excellence, humor, and desire to serve you with integrity and tenacity. During 2014 four WSAC staff members departed: Technology Manager Justin Kerrihard relocated to pursue private business opportunities WSALPHO Administrative Assistant Linda Powell relocated with her family WSAC Financial Assistant Barbara Warden Retired WSAC Communications and Member Services Assistant Ashley Meachem Three staff joined WSAC in 2014: Dion White, Lead Visual Communications Specialist Christine Garza, WSAC Financial Assistant/WSALPHO Member Services Coordinator Rachel Reischman, Communication and Member Services Assistant Final Thoughts In the Biography of former King County Commissioner, King County Executive, and Governor John Spellman, Politics Never Broke His Heart, there are two excerpts that strike me as still relevant today. Governor Spellman noted If the (King County) charter had failed, I would not have run for county commissioner again. County commissioner was a very frustrating job... I was even developing stomach troubles. The pressures and challenges you face are ongoing, certainly frustrating from time to time, and at times intense. The second excerpt that is apropos relates to then County Executive Spellman s fiscal message from 1970, 45 years ago: We re in dramatically bankrupt shape, looking for emergency aid until we can get some type of tax reform. We can no longer provide services as we have. The only alternatives are to issue warrants or to lay off employees.. I think the message is clear, if state government will not support local government in providing local-state services, they are merely shortchanging the taxpayers of this state. We understand the challenges you face and the sense of urgency to assist you in solving the complex issues county government elected and appointed officials are working on. On behalf of the WSAC staff, let me tell you that we look forward to working with you, and the 16 new commissioners and councilmembers that join you on January 1, Executive Director Annual Report WSAC General Membership Meeting November 20, 2014 Page 12 of 49

14 November 4, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Members Island County Commissioner Helen Price Johnson, President Eric Johnson, Executive Director Proposed Amendments to the Bylaw of the Washington State Association of Counties BACKGROUND As provided for in WSAC Bylaws 1, WSAC President Helen Price Johnson appointed the following WSAC members to serve on a Bylaws Committee to review and consider an amendment regarding the manner in which WSAC formally adopts its legislative agenda. President Price Johnson appointees represented a cross section of WSAC members both active in WSAC s legislative agenda development as well as other WSAC members relatively new to the process Councilmember Kathy Lambert, King County, WSAC LSC Co-Chair Commissioner Kevin Bouchey, Yakima County, WSAC LSC Co-Chair Councilmember Rick Hughes, San Juan County Commissioner Lisa Ayers, Pacific County Commissioner Rob Gelder, Kitsap County Commissioner Mark Stedman, Lincoln County Commissioner Mike Manus, Pend Oreille County The current WSAC Bylaws 2 state that the Legislative Steering Committee (LSC) is responsible for preparing and recommending a proposed legislative program for consideration of the membership at the Annual Meeting. The Bylaws further provide that the Association hold an annual meeting of the Active Members to carry out the business authorized in these Bylaws. The annual meeting is typically held in mid-november. While the LSC is empowered to adopt policy relating to legislation, traditionally, as required by WSAC Bylaws, the LSC has brought a Legislative Agenda for the upcoming legislative session to the annual meeting where it is considered and approved by the membership Bylaws Committee The President shall appoint, as needed, a Bylaws Committee to initiate, review, or recommend passage, modification or other action relating to the Bylaws prior to submission of the proposed amendment to the membership Legislative Steering Committee The Legislative Steering Committee is responsible to prepare and recommended a proposed legislative program for consideration of the membership at the Annual Meeting. WSAC General Membership Meeting November 20, 2014 Page 13 of 49

15 ISSUE Advancing successful legislative proposals requires a significant amount of membership, stakeholder, and legislative outreach prior to the actual legislative session. This work must occur prior to November of each year the timeframe for which WSAC has traditionally adopted its Legislative Agenda. While the LSC appears to be broadly empowered to undertake this work without approval of the entire WSAC membership, under the current Bylaws, there is the potential that the membership would not approve a legislative proposal after WSAC staff and members initiated advocacy and communication with external parties. While this is effective at stopping a proposal from advancing, such a scenario would undercut the legitimacy of the organization and likely waste a considerable amount of member and staff time. RECOMMENDATION The Bylaws Committee held two telephonic meetings to review the issues, discuss potential alternatives, and put forth a recommendation to the WSAC membership. The recommendation to amend the WSAC Bylaw associated with the process to adopt WSACs Legislative Agenda contains these key elements: 1. Remove any requirement that the legislative agenda must be adopted at the Annual Meeting ; and 2. Assure the WSAC Bylaws continue to require that Active Members must ratify or approve the Legislative Agenda; and 3. WSAC Board of Directors shall approve and maintain policies and procedures for a review and approval process of the WSAC Legislative Agenda. Bylaw Committee members recommend the following WSAC Bylaw amendments: Section 3.18 Legislative Steering Committee The Legislative Steering Committee is responsible to for preparing and recommending a proposed legislative program agenda for the consideration review and approval of the Active Members membership at the Annual Meeting. The WSAC Board of Directors shall approve and maintain policies and procedures for a review and approval process. Section 3.1 General Powers (Board of Directors) (b) All interim policy decisions arising between the meetings shall be made by the Board in the name of the Association, but such policies shall be subject to change by the next general meeting of the Association except as provided in Section relating to establishment of policies by the Legislative Steering Committee. On September 19, 2014, The WSAC Board of Directors reviewed and further recommends these proposed changes to the WSAC Bylaws. Consistent with WSAC Bylaws WSAC Bylaws 3, these proposed Bylaw Amendment are herein being distributed to the WSAC membership for consideration at the November 20, 2014 Annual Business Meeting. For reference, WSAC Bylaws may be located at: 3 Article 9. Amendments These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by the affirmative vote of two-thirds of the Active Members present at the Annual Meeting. Proposed amendments shall be distributed in writing to each county not less than two weeks prior to any meeting at which the proposed amendments are to be voted upon. WSAC General Membership Meeting November 20, 2014 Page 14 of 49

16 November 20, 2014 TO: FROM: PREPARED BY: SUBJ: WSAC Board of Directors and Alternates Island County Commissioner Helen Price Johnson, President, WSAC Eric Johnson, Executive Director Proposed 2015 Operating Budget and Goals/Actions Proposed 2015 Special Fund Budget Background The adoption of WSAC s Annual Operating Budget and Goals as well as WSAC's Special Fund Budget has four steps: 1. WSAC Board of Directors Biennial Planning Process to outline strategic goals and identification of preliminary actions. (May 2013) 2. Executive Board. (August 2014) a. Review the current fiscal year s budget and goals and actions; and b. Develop a set of preliminary 2015 goals and actions; and c. Create a proposed 2015 Operating and Special Funds Budget; and d. Develop proposed 2015 General, Transportation and Timber Dues Schedule. 3. Board of Directors. (September 2014) The Board of Directors is charged with reviewing the proposals from the Executive Board, and after consideration: a. Approve the 2015 Special Fund Operating Budget; and b. Recommend to the WSAC Membership the Proposed 2015 Operations Budget; and c. Recommend to the WSAC Membership the Proposed 2015 General, Transportation and Timber Dues schedule; and d. Recommend to the WSAC Membership the Proposed 2015 Goals and Actions. 4. Membership. (November 2014) During the Annual Business Meeting, members shall consider the recommendation from the Board of Directors and: a. Consider and approve a 2015 Annual Operations Budget; and b. Consider and approve 2015 General, Transportation and Timber Dues Schedule; and c. Consider and approve the Proposed 2015 Goals and Actions Proposed Operations Budget The WSAC Board of Directors proposed 2015 WSAC Operations Budget highlights contains a proposed general, transportation and timber dues increase (2.4%) while still maintaining general dues collection at a level lower than that in Additionally, the WSAC Board of Directors 2015 Proposed Operations Budget proposes a modest 4% addition to WSAC reserves as a response to WSACs 2012 Audit Report to initiate a risk reserve balance to provide for three months of operations and the risk of lost dues revenues. The WSAC Board of Directors 2015 Proposed Operations Budget continues to suspend contribution to the County Training Institute. At the same time, WSAC will continue to foster, forge and strengthen our partnerships with our affiliate organizations, our business partners and our program sponsors. We will cultivate our relations with legislative WSAC General Membership Meeting November 20, 2014 Page 15 of 49

17 advocacy partners such as the Association of Washington Cities, Washington Association of Prosecuting Attorneys, Washington Association of County Officials, Association of Washington Business and so many other organizations and individuals vital to furthering our agenda. The major elements of the 2015 Proposed Operations and Special Fund Budgets are as follows: Cash Add 4% to cash reserves: +$18,858 Maintain WSAC s designated reserve for the Washington Counties Building: $202,000 Revenues 2.4% increase in general, transportation and timber dues: +$26,911 Net loss of revenue for potential closure of the Retro & Safety Alliance Program: -$30,000 The budgeted contract revenues presume the continuation of the Transportation Performance Metrics and Columbia River projects: +$77,000 Expenses No Cost of Living Adjustment (COLA) for staff: $0 Medical benefits estimated increase at 6.9%. Employee contributions remain the same for individual and family rates: +$12,229 Targeted staff salary increases: +$12, K discretionary contributions Increase (1%): +$9,942 Continuation of the employee retention program: +$5,000 Continuation of contracted legislative professional services: +$24,000 Four legislative receptions in conjunction with LSC meetings: +$5,600 Summer Health/Professional Development Conference: +$1,200 Board of Directors Biennial Planning Meeting Facilitator: +$5,000 Member Services Access Point Software maintenance: +$5,000 Capital Purchases Member Services Access Point Software Purchase: +$10,000 Computer refresh cycle as needed: +$5,000 The 2015 proposed budget is designed to initiate a risk reserve balance over the next four years that provides for three months of operations and the risk of lost dues revenues. WSAC General Membership Meeting November 20, 2014 Page 16 of 49

18 PROPOSED 2015 OPERATING GOALS & PROPOSED 2015 WSAC OPERATIONS BUDGET AND SPECIAL FUND BUDGET AS RECOMMENDED BY THE WSAC BOARD OF DIRECTORS WSAC General Membership Meeting November 20, 2014 Page 17 of 49

19 2015 Proposed Operating Budget and Goals Message The proposed 2015 WSAC Budget provides for fiscal stability, an increase in dues to support our service delivery goals and actions, and a contribution to our fund reserve as recommended by our 2013 audit report. This budget continues to allow us to focus on our core responsibilities: Advocacy for our member counties, communicating with and between members, training and education, and business services. WSAC continues to foster, forge, and strengthen our partnerships with our affiliate organizations, our business partners, and our program sponsors. We intently work to cultivate our relations with legislative advocacy partners such as the Association of Washington Cities, Washington Association of Prosecuting Attorneys, Washington Association of County Officials, Association of Washington Business and so many other organizations and individuals vital to furthering our agenda. The WSAC Board of Directors proposes a 2.4% total dues increase; even with this dues increase, general dues are less than they were in This budget allows WSAC to continue its role in leading our County Fiscal Sustainability Initiative; targeted leadership and issue based training; a forum for communication amongst peers; support to our county affiliates and appointed officials who carry out the work on behalf of our elected officials. For over 100 years, WSAC has served Washington s 39 Counties. Our goal is to continue to see WSAC proactively meet the needs of our member counties as they provide service to our nearly 7 million residents, our business community and visitors to our state. Helen Price Johnson, President Island County Commissioner Stephanie Wright, Secretary Treasurer Snohomish County Council David Sauter, Vice President Klickitat County Commissioner Todd Mielke, Past President Spokane County Commissioner 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 18 of 49

20 GOAL: FINANCE AND BUDGET Ensure a Fiscally Sound Organization Action Review and evaluate WSAC dues assessment structure to include review of services and programs offered within a dues structure: Continue to identify and refine ideas that include a structure not as dependent on a few counties as the current structure; Including analysis of dues structure for General, Transportation, Timber, and other affiliates. Increase sponsorship and vendor participation to generate additional non-dues revenue by promoting business partners to WSAC members and county services. Equip the WSAC board to assist with conference fund raising and business member recruitment. Work to assure that existing professional service contracts and agreements for services are within the Agency, Governor, and Senate/House -- i.e. current contracts with state agencies such as Transportation Performance Measures; Columbia River Program, Timber Program, and Puget Sound Partnership WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 19 of 49

21 GOAL: COMMUNICATIONS Build Strong Communication Capacity Action Establish WSAC Learning Library or Sharing Repository County Training Institute Webinars Other Agencies/Organizations Lessons Learned Cutting Edge Solutions What Doesn t Work Continue to develop and maintain model presentations and sample PowerPoint(s) (and possibly video, etc.) for members to use when making presentations regarding county government and operations Library of existing county PowerPoints, videos, etc. Develop alternative meeting formats including use of video conferencing for appropriate WSAC Meetings and activities In partnership with Washington's Counties, market NACo's Icivics, "Counties Work" to middle schools in Washington State as well as other NACo products associated with public and civic education on county government: Develop plan to utilize TVW programming for general public education about counties. Schedule targeted meetings and tours with legislators and/or members and/or stakeholders and/or agency heads (Courthouse, jail, or department visits). Develop ongoing methods, materials, and tools for our staff and members to use to educate and inform legislators on issues facing Counties; (Video, PowerPoint, documents, data). Develop WSAC branding guide to provide a consistent look for print and electronic communications. Implement communications policies to streamline timely, accurate, and effective communication. Develop comprehensive procedures and materials that provide each newly elected County Commissioner, County Council Member, and County Executive structured information on participating in WSAC programs and services WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 20 of 49

22 GOAL: MEMBERS Provide relevant services to members Action Extend WSAC Media Clipping Services to WSAC Members Develop position descriptions for WSAC Board of Directors Establish Sub-Committee of the WSAC Board of Directors to advise WSAC staff on Member Services Programs on such items as: Education and Training Opportunities Conference Issues Emerging Issues and Topics Policy and Legislative Education Topics Networking Mentoring Clearinghouse Training Internal Consulting Capacity Create Commissioners Forum Identify and promote best operational county business practices. Explore new sources of services and revenue to support WSAC programs by providing fee for service and consulting services such as: Developing performance measures for smaller counties Assistance in budget development and analysis Assist county commissioners in evaluating and selecting consultants Developing utility rate structures Facilitating and leading critical issue discussions County goal setting Conflict resolution Leading yearly county commissioners planning retreats Improve WSACs marketing of existing programs and services: Website Regional meetings Staff outreach Regional assignments Prepare a draft litigation policy for review by the WSAC Board of Directors. Develop a policy statement to define how and when WSAC staff should inform WSAC appointments to state boards, commissions and committees regarding related WSAC policy and position statements WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 21 of 49

23 POLICY DEVELOPMENT AND ADVOCACY MANAGEMENT GOAL: Assure a comprehensive and strategic approach to the development and advocacy of WSAC policy positions. Action Continue to reshape Policy Programs and Advocacy Services to better accomplish WSAC policy objectives including: Assuring that Policy Programs and Advocacy Services is fully functional during legislative interim Regularly update the WSAC Policy Statement Utilizing legislative interim to advance legislative objectives Continually building connections between WSAC policy staff, legislators, and WSAC members Consistently educating legislators, policy makers, and agency staff about counties and their role Organizing opportunities for WSAC members to network with legislators, state policy makers, and leaders from other organizations Making LSC meetings as effective and efficient as possible Utilizing LSC members for WSAC advocacy Draft a memorandum of understanding with NACo for consideration by WSAC Board of Directors. Initiate quarterly electronic meetings with NACo Policy staff Peer to Peer Communications. Prepare and distribute WSAC Federal Issues Paper to Washington State Congressional delegation members and staff. Consistent with adopted policy, develop and or review proposed NACo resolutions from WSAC members that seek support of WSAC endorsement. Review Federal Relations and Engagement Policy interim implementation activities. Develop resource and funding strategies to fully implement Federal Relations and Engagement Policy. PROGRAMS AND BUSINESS SERVICES GOAL: Operate quality and desired programs to support members, affiliates and county operations. Action Review and prepare options for administration, operation, and continuation of the Retrospective Rating Pool. Develop systematic approach to providing survey services for counties. Develop strategies to recognize WSAC members and appointed County officials internally to our membership and external to other groups and the public WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 22 of 49

24 GOAL: PARTNERS AND RELATIONSHIPS Create, maintain and enhance effective partnerships and relationships with counties, affiliates, agencies, and related organizations. Action Continue to identify and implement ways to improve the organizational structure, coordination, and communication between WSAC, AWC, WACO, WAPA and other partners. Provide information and training, in partnership with other organizations to help our members govern effectively. Partners include AWC, MRSC, WACO, SAO, and others Information and Training include, Emerging and Current Issues (i.e. I-502, agency actions) Basic County info (Property Tax, federal funding) Assess research needs to support policy objectives. Provide options for how to obtain research products, whether through partnership with MRSC, Department of Commerce, State Auditor s Office - Local Government Performance Center, The Evergreen State College, or through staff resource allocation. PROCESS IMPROVEMENT GOAL: Commit to Continuous Process Improvement Action WSAC Board shall establish metrics to measure performance that illustrates benefits to WSAC Membership. Develop a set of performance measures to evaluate the services and program we provide. WSAC staff shall identify and conduct process improvement on internal services. Create a customer survey to determine member understanding of WSAC role and identify areas we may assist them in governing. Celebrate accomplishments as they occur WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 23 of 49

25 OPERATIONS GOAL: Provide quality facilities, professional staff and manage resources in an effective and efficient manner. Action Facilities and Equipment Resources Staff Continue monitoring facility needs including property acquisition and long term facilities plan. Complete review and update of job descriptions and duties. Stabilize administrative staff support for Member Services and Policy programs. Allow staff the opportunity to identify appropriate training opportunities for professional and skills development. Complete comparable compensation analysis prior to 2016 budget preparation. Prepare personnel policy amendment regarding frequency of personnel compensation analysis. Provide in county field visits and experiences. Provide internal and external training opportunities: ~ Communications ~ Work Place Harassment ~ Conflict Resolution ~ Safety ~ Software and Technology Incorporate support staff in WSAC activities and events. Technology Explore development and use of apps and technology uses for meetings, conferences and member engagement. Publish Who list for Web Updates; who publishes what? 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 24 of 49

26 2015 BUDGET PLANNING - ASSUMPTIONS Cash Add 4% to cash reserves: +$18,858 Maintain WSAC s designated reserve for the Washington Counties Building: $202,000 Revenues 2.4% increase in general, transportation and timber dues: +$26,911 Net loss of revenue for potential closure of the Retro & Safety Alliance Program: -$30,000 The budgeted contract revenues presume the continuation of the Transportation Performance Metrics and Columbia River projects: +$77,000 Expenses No Cost of Living Adjustment (COLA) for staff: $0 Medical benefits estimated increase at 6.9%. Employee contributions remain the same for individual and family rates: +$12,229 Targeted staff salary increases: +$12, K discretionary contributions Increase (1%): +$5,000 Continuation of contracted legislative professional services: +$24,000 Four legislative receptions in conjunction with LSC meetings: +$5,600 Summer Health/Professional Development Conference: +$1,200 Board of Directors Biennial Planning Meeting Facilitator: +$5,000 Member Services Access Point Software maintenance: +$5,000 Capital Purchases Member Services Access Point Software Purchase: +$10,000 Computer refresh cycle as needed: +$5,000 The 2015 proposed budget is designed to initiate a risk reserve balance over the next four years that provides for three months of operations and the risk of lost dues revenues WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 25 of 49

27 2015 PROPOSED OPERATING BUDGET AND 3 YEARS PRIOR 2012 Actual 2013 Actual 2014 Adopted Budget 2015 Proposed Budget Revenue General, Transportation & Timber Dues $ 1,209,615 $ 1,232,298 $ 1,273,396 $ 1,300,307 Business Partner Fees 7,950 3,500 7,000 7,000 Affiliate Assessments 406, , , ,550 Contract Services 678, , , ,560 Insurance Services 76,463 65,296 60,000 - Conferences and Events 94, , , ,800 Other Misc. Income 826 4,755 1,000 1,000 Total Revenue $ 2,474,752 $ 2,582,438 $ 2,554,882 $ 2,657,217 Operating Expense Payroll and Benefits - General $ 1,522,856 $ 1,375,861 $ 1,433,913 $ 1,395,959 Meetings, Travel and Hosting 116, , , ,100 Conferences and Events 52,872 71,393 53,500 87,800 Professional Services 554, , , ,500 Technology and Telecom 60,512 48,297 46,600 42,800 General Operating 154, , , ,600 Total Operating Expense $ 2,461,271 $ 2,568,721 $ 2,570,913 $ 2,668,759 Budgeted Net Income (Loss) $ 13,480 $ 13,717 $ (16,031) $ (11,542) 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 26 of 49

28 2015 PROPOSED SPECIAL FUND BUDGET AND 3 YEARS PRIOR 2012 Actual 2013 Actual 2014 Adopted Budget 2015 Proposed Budget Revenue Endorsement & Marketing $ 98,498 $ 101,869 $ 91,000 $ 124,000 Other Misc. Income 15, Interest and Dividend Income Total Revenue $ 114,797 $ 102,403 $ 92,000 $ 124,500 Operating Expense Meetings, Travel and Hosting $ 63,200 $ 50,671 $ 55,000 $ 48,600 Conferences and Events 5,653-5,000 12,000 Professional Services 19,500 9,500 9,500 7,500 General Operating 18,009 5,041 15,900 11,000 Total Operating Expense $ 106,362 $ 65,212 $ 85,400 $ 79,100 Budgeted Net Income (Loss) $ 8,435 $ 37,191 $ 6,600 $ 45, WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 27 of 49

29 2015 PROPOSED BUDGET (ALL FUNDS) AND 3 YEARS PRIOR 2012 Actual 2013 Actual 2014 Adopted Budget 2015 Proposed Budget Revenue General, Transportation & Timber Dues $ 1,209,615 $ 1,232,298 $ 1,273,396 $ 1,300,307 Business Partner Fees 7,950 3,500 7,000 7,000 Affiliate Assessments 406, , , ,550 Contract Services 678, , , ,560 Insurance Services 76,463 65,296 60,000 - Conferences and Events 94, , , ,800 Endorsement & Marketing 98, ,869 91, ,000 Other Misc. Income 16,622 5,039 1,500 1,250 Interest and Dividend Income Total Revenue $ 2,589,549 $ 2,684,841 $ 2,646,882 $ 2,781,717 Operating Expense Payroll and Benefits - General $ 1,522,856 $ 1,375,861 $ 1,433,913 $ 1,395,959 Meetings, Travel and Hosting 179, , , ,700 Conferences and Events 58,525 71,393 58,500 99,800 Professional Services 573, , , ,000 Technology and Telecom 60,512 48,297 46,600 42,800 General Operating 172, , , ,600 Total Operating Expense $ 2,567,633 $ 2,633,933 $ 2,656,313 $ 2,747,859 Net Income (Loss) $ 21,915 $ 50,909 $ (9,431) $ 33,858 Key Metrics and Trends Dues as a % of Total Revenue 46.7% 45.9% 48.1% 46.7% Contracts as a % of Total Revenue 26.2% 28.9% 24.8% 28.8% Period % Change in Total Revenue 4.8% 3.7% 2.2% 5.1% Period % Change in Total Expense 2.7% 2.6% 3.5% 3.4% Actual/Budgeted FTEs Net Income as % of Revenue 0.8% 1.9% -0.4% 1.2% 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 28 of 49

30 BUDGET PROJECTION* (ALL FUNDS) *Budget Projection: 2% Annual Dues Increase; 10% Annual Endorsement & Marketing Increase; 3% Biennial COLA in even years, 10% Medical increase, 2-year audit in even years, 2% annual increase in operating and other expenses Revenue General, Transportation & Timber Dues $ 1,326,313 $ 1,352,840 $ 1,379,896 $ 1,407,494 Business Partner Fees 7,000 7,000 7,000 7,000 Affiliate Assessments 433, , , ,547 Contract Services 280, , , ,138 Insurance Services Conferences and Events 123, , , ,800 Endorsement & Marketing 124, , , ,044 Other Misc. Income 1,250 1,250 1,250 1,250 Interest and Dividend Income Total Revenue $ 2,295,655 $ 2,348,842 $ 2,404,085 $ 2,461,523 Operating Expense Payroll and Benefits - General $ 1,421,366 $ 1,433,593 $ 1,470,888 $ 1,484,860 Meetings, Travel and Hosting 162, , , ,864 Conferences and Events 101, , , ,027 Professional Services - Contracts 250, , , ,302 Professional Services - Other 63,000 38,000 63,000 38,000 Technology and Telecom 43,656 44,529 45,420 46,328 General Operating 166, , , ,086 Total Operating Expense $ 2,209,584 $ 2,211,316 $ 2,288,405 $ 2,292,467 Net Income (Loss) $ 86,070 $ 137,526 $ 115,680 $ 169, WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 29 of 49

31 2015 CASH RESERVES PROPOSED (ALL FUNDS) AND 3 YEARS PRIOR 2012 Actual 2013 Actual 2014 Adopted Budget 2015 Proposed Budget Beginning Cash Balance, Unrestricted $ 537,371 $ 315,623 $ 464,100 $ 434,669 Cash Flow from Operating Activities Net Income (Loss) from Operations 21,915 50,909 (9,431) 33,858 Change in Assets/Liabilities from Prior Year (192,475) 120, Net Cash Provided (Used) by Operating Activities $ (170,560) $ 171,803 $ (9,431) $ 33,858 Cash Flow from Investing Activities Capital Purchases (Assets) $ (51,188) $ (23,326) $ (20,000) $ (15,000) Investment in Building Partnership - WCB Net Cash Provided (Used) by Investing Activities $ (51,188) $ (23,326) $ (20,000) $ (15,000) Net Increase (Decrease) in Cash (221,748) 148,477 (29,431) 18,858 Ending Cash Balance, Unrestricted $ 315,623 $ 464,100 $ 434,669 $ 453,528 % PY Change -41% 47% -6% 4% $ PY Change (221,748) 148,477 (29,431) 18,858 Designations, Unrestricted Cash Board Designated - Building $ 202,000 $ 202,000 $ 202,000 $ 202,000 Undesignated 113, , , ,528 $ 315,623 $ 464,100 $ 434,669 $ 453,528 Undesignated Cash as a Percentage of Expenses: 4% 10% 9% 9% 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 30 of 49

32 2015 BUDGET (ALL FUNDS) CHARTS 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 31 of 49

33 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 32 of 49

34 2015 PROPOSED WSAC ORGANIZATIONAL CHART Legislative Steering Committee MEMBERS ~ Columbia River ~ Timber Counties ~ Coastal Counties BOARD OF DIRECTORS ~ Bylaws Committee ~ Audit, Investment & Finance Committee ~ Conference Committee Executive Committee Executive Director ERIC JOHNSON Policy & Legislative Relations Director JOSH WEISS Finance & Administration Director KARLYN SHANNON Communications & Member Services Director DEREK ANDERSON Senior Policy Director BRIAN ENSLOW Policy Director ACHS ABBY MURPHY Policy Director (including Timber) LAURA MERRILL WSALPHO Managing Director BRAD BANKS WSALPHO Financial Assistant & Member Services Coordinator CHRISTINE GARZA Financial Assistant CHRISTINE GARZA Financial Assistant - WCB BARBARA WARDEN WSACE Managing Director GARY ROWE Transportation Performance Metrics Coordinator Columbia River Coordinator BRYNN BRADY Puget Sound Partnership Coordinator NEIL AALAND LUND CONSULTING Member Services Coordinator SARAH LANGLEY Communications & Member Services Assistant VACANT Lead Visual Communications Specialist DION WHITE Employees Contractors 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 33 of 49

35 2015 PROPOSED GENERAL DUES Total Dues 984, , , , ,107 1,050,711 1,050,711 1,009, ,256 Basic Dues Rate: 2,500 2,500 2,000 2,000 2,000 2,000 2,000 2,000 Basic Dues Total: 97,500 97,500 78,000 78,000 78,000 78,000 78,000 78,000 Base POP Dues: 887, , , , , , , ,256 Population Cap %: 25% 25.0% 25% 25% 25% 25% 25% 25% Population Cap $: 221, , , , , , , ,564 Dues Less Population Cap: 665, , , , , , , ,692 % Change n/a n/a n/a n/a -15.0% n/a n/a n/a 7.7% CPI 2.4% 2.0% 2.0% 1.8% n/a 0.0% 4.1% 3.9% n/a 2014 Estimated Population (OFM - June 30) 2015 Proposed Dues Prior Year All Counties Excluding King Basic POP/Base Total Cost 2014 County POP % POP % Dues Share Dues Per Capita Dues % Chg. Adams 19, % 19, % 2,500 2,607 5, , % Asotin 21, % 21, % 2,500 2,950 5, , % Benton 186, % 186, % 2,500 25,064 27, , % Chelan 74, % 74, % 2,500 9,985 12, , % Clallam 72, % 72, % 2,500 9,743 12, , % Clark 442, % 442, % 2,500 59,508 62, , % Columbia 4, % 4, % 2, , , % Cowlitz 103, % 103, % 2,500 13,936 16, , % Douglas 39, % 39, % 2,500 5,335 7, , % Ferry 7, % 7, % 2,500 1,029 3, , % Franklin 86, % 86, % 2,500 11,638 14, , % Garfield 2, % 2, % 2, , , % Grant 92, % 92, % 2,500 12,485 14, , % Grays Harbor 73, % 73, % 2,500 9,851 12, , % Island 80, % 80, % 2,500 10,751 13, , % Jefferson 30, % 30, % 2,500 4,126 6, , % King 2,017, % 2, , , , % Kitsap 255, % 255, % 2,500 34,391 36, , % Kittitas 42, % 42, % 2,500 5,658 8, , % Klickitat 20, % 20, % 2,500 2,802 5, , % Lewis 76, % 76, % 2,500 10,254 12, , % Lincoln 10, % 10, % 2,500 1,438 3, , % Mason 62, % 62, % 2,500 8,332 10, , % Okanogan 41, % 41, % 2,500 5,604 8, , % Pacific 21, % 21, % 2,500 2,836 5, , % Pend Oreille 13, % 13, % 2,500 1,775 4, , % Pierce 821, % 821, % 2, , , , % San Juan 16, % 16, % 2,500 2,164 4, , % Skagit 119, % 119, % 2,500 16,060 18, , % Skamania 11, % 11, % 2,500 1,528 4, , % Snohomish 741, % 741, % 2,500 99, , , % Spokane 484, % 484, % 2,500 65,113 67, , % Stevens 43, % 43, % 2,500 5,900 8, , % Thurston 264, % 264, % 2,500 35,479 37, , % Wahkiakum 4, % 4, % 2, , , % Walla Walla 60, % 60, % 2,500 8,084 10, , % Whatcom 207, % 207, % 2,500 27,900 30, , % Whitman 46, % 46, % 2,500 6,249 8, , % Yakima 248, % 248, % 2,500 33,437 35, , % Totals 6,968, % 4,950, % 97, , , , % 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 34 of 49

36 2015 PROPOSED TRANSPORTATION DUES Total Dues 239, , , , , , , , ,000 Basic Dues Rate: 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Basic Dues Total: 54,600 54,600 54,600 54,600 54,600 54,600 54,600 54,600 54,600 POP Dues: 185, , , , , , , , ,400 Population Cap %: 25.0% 25% 25% 25% 25% 25% 25% 25% 25% Population Cap $: 46,260 45,176 44,022 42,891 41,892 55,542 55,542 53,354 51,500 Dues Less Population Cap: 138, , , , , , , ,462 99,900 % Change n/a n/a n/a n/a n/a n/a n/a n/a 3.0% CPI 2.4% 2.0% 2.0% 1.8% 0.0% 0.0% 4.1% 3.6% n/a 2014 Estimated Population (OFM - June 30) 2015 Proposed Dues Prior Year All Counties Excluding King Basic POP/Base Total Cost 2014 County POP % POP % Dues Share Dues Per Capita Dues % Chg. Adams 19, % 19, % 1, , , % Asotin 21, % 21, % 1, , , % Benton 186, % 186, % 1,400 5,228 6, , % Chelan 74, % 74, % 1,400 2,083 3, , % Clallam 72, % 72, % 1,400 2,032 3, , % Clark 442, % 442, % 1,400 12,412 13, , % Columbia 4, % 4, % 1, , , % Cowlitz 103, % 103, % 1,400 2,907 4, , % Douglas 39, % 39, % 1,400 1,113 2, , % Ferry 7, % 7, % 1, , , % Franklin 86, % 86, % 1,400 2,427 3, , % Garfield 2, % 2, % 1, , , % Grant 92, % 92, % 1,400 2,604 4, , % Grays Harbor 73, % 73, % 1,400 2,055 3, , % Island 80, % 80, % 1,400 2,242 3, , % Jefferson 30, % 30, % 1, , , % King 2,017, % 1,400 46,260 47, , % Kitsap 255, % 255, % 1,400 7,173 8, , % Kittitas 42, % 42, % 1,400 1,180 2, , % Klickitat 20, % 20, % 1, , , % Lewis 76, % 76, % 1,400 2,139 3, , % Lincoln 10, % 10, % 1, , , % Mason 62, % 62, % 1,400 1,738 3, , % Okanogan 41, % 41, % 1,400 1,169 2, , % Pacific 21, % 21, % 1, , , % Pend Oreille 13, % 13, % 1, , , % Pierce 821, % 821, % 1,400 23,022 24, , % San Juan 16, % 16, % 1, , , % Skagit 119, % 119, % 1,400 3,350 4, , % Skamania 11, % 11, % 1, , , % Snohomish 741, % 741, % 1,400 20,771 22, , % Spokane 484, % 484, % 1,400 13,581 14, , % Stevens 43, % 43, % 1,400 1,231 2, , % Thurston 264, % 264, % 1,400 7,400 8, , % Wahkiakum 4, % 4, % 1, , , % Walla Walla 60, % 60, % 1,400 1,686 3, , % Whatcom 207, % 207, % 1,400 5,819 7, , % Whitman 46, % 46, % 1,400 1,303 2, , % Yakima 248, % 248, % 1,400 6,974 8, , % Totals 6,968, % 4,950, % 54, , , , % 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 35 of 49

37 2015 PROPOSED TIMBER DUES Total Dues 76,022 74,240 74,240 74,240 74,240 74,240 74,240 69,600 65,000 % Change 0.0% 0.0% 0.0% 0.0% 0.0% 6.7% 7.1% 8.3% CPI 2.4% 2015 Proposed Dues Prior Year % Total 2014 County Total Dues Dues Dues % Chg. Asotin 0.6% % Chelan 7.4% 5,596 5, % Clallam 6.4% 4,857 4, % Clark 0.6% % Columbia 1.1% % Cowlitz 1.1% % Douglas 0.0% - - Ferry 2.5% 1,895 1, % Garfield 0.6% % Grays Harbor 1.9% 1,431 1, % Jefferson 8.6% 6,551 6, % King 6.0% 4,534 4, % Kittitas 2.8% 2,121 2, % Klickitat 0.6% % Lewis 10.0% 7,602 7, % Mason 2.0% 1,540 1, % Okanogan 5.9% 4,461 4, % Pend Oreille 3.1% 2,337 2, % Pierce 2.2% 1,636 1, % Skagit 3.5% 2,634 2, % Skamania 10.0% 7,602 7, % Snohomish 6.0% 4,576 4, % Stevens 1.2% % Thurston 0.6% % Walla Walla 0.6% % Whatcom 5.6% 4,241 4, % Yakima 9.3% 7,054 6, % Totals 100.0% 76,022 74, % 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS As Recommended by the WSAC Board of Directors WSAC General Membership Meeting November 20, 2014 Page 36 of 49

38 To help Improve Counties capacity to serve their citizens 2015 LEGISLATIVE AGENDA County Fiscal Sustainability Counties deliver constitutionally and statutorily directed state services to all of Washington s residents. The Washington State Association of Counties is working to secure the fiscal sustainability of all 39 counties by advancing legislation to control cost drivers and provide adequate revenue. CONTROL COST DRIVERS Ensure County Access to Public Employee Benefits Board Programs: Providing adequate and cost-effective health insurance for county employees is a significant challenge. Several counties have been denied access to the benefits provided by the PEBB, despite the fact that county employees are public employees. Counties should have access to health insurance benefits through the PEBB. Legal Notices: The cost of meeting state requirements for providing legal notice are significant. Allow counties to meet legal notice requirements by posting notices on their websites or on a single statewide website. Liability: Make common-sense amendments to Washington s expansive joint and several liability laws that will save taxpayer dollars. PROVIDE ADEQUATE REVENUE Protect State Shared Revenue The loss of county revenue from prior state cuts means that state shared revenues are more important to counties than ever before. Protecting these fund sources is critical. Revenue Flexibility Real Estate Excise Tax Flexibility: Locally collected REET dollars are a significant source of funding for infrastructure. The uses and definitions between REET 1 and 2 need to be harmonized to eliminate confusion for the public and allow funding options for elected officials. Additionally, going forward these revenues won t be available for operation or maintenance and as a result counties can build new facilities, but not maintain existing ones. Flexibility is needed to allow a portion of REET to be used to maintain facilities acquired and developed with REET monies. Permit Fee Flexibility: Counties have no dedicated fund source for mandated planning and code compliance activities, yet both are necessary to support economic and population growth in our communities. Allow building permit fees to be used to pay for long range planning and code compliance. New Revenue Direct Revenue from the Recreational equitably of Marijuana to Counties: New revenue from the sale of recreational marijuana should be dedicated to state services provided by counties. Indigent Defense Court Rules: New funding is required to offset increased costs associated with implementation of the Supreme Court s Indigent Defense Rules establishing case load standards and increasing counties costs. Limit Property Tax Revenue Growth to Inflation and Population: Property taxes are counties top revenue source, comprising approximately 60% of general fund revenue, but are capped at a level that doesn t keep up with costs. Property tax growth should be limited to inflation and population growth. Revenue Dedicated to Decline in Employees of Expenditures are towards Washington State Association of Counties 206 Tenth Ave SE, Olympia, WA WSAC General Membership Meeting November 20, 2014 Page 37 of 49

39 OTHER CRITICAL ISSUES Support Transportation Reforms and New Funding: Provide reforms and new revenue sources to support critical transportation and transit priorities. Explore Transfer of Federal Lands: Create a committee to review the potential benefits and risks associated with the transfer of federal lands to Washington State or its counties. Funding for Chemical Dependency Treatment Services: A short term vendor rate increase for Medicaid chemical dependency treatment services is necessary to keep the provider network operating until new actuarially sound reimbursement rates are established and approved. Allow Penalties from Discover Pass Violations to Pay for Court Costs: Current law directs all penalty revenue to State Parks, despite the fact that after the violation is written, the cost of judicial administration occurs at the county level. There is a disincentive for counties to pursue enforcement of this unfunded activity. Voluntary Stewardship Program: The VSP provides an alternative approach for a county to ensure the protection of critical areas associated with agricultural activities, and is being pursued by 28 counties. If funding is not provided this biennium counties must develop critical area ordinances and regulations associated with agriculture activities under the Growth Management Act. Adequate and Sustainable Local Public Health Funding: Washington s local public health system is in a very fragile position after years of funding reductions at all levels. Just as the work of public health requires many governmental and community partnerships, adequately funding the system must also be a shared responsibility between the State and local governments to ensure a consistent level of public health protection statewide. Full Funding for DFW PILT Payments: Provide the Department of Fish and Wildlife with the resources to make full payments in lieu of taxes to counties. Infrastructure Funding for Water Projects: Provide infrastructure funding in the capital budget for water supply, stormwater, flood control and other water projects. WSAC Policy Staff Eric Johnson Executive Director (360) ejohnson@wacounties.org Josh Weiss Director, Policy and Legislative Relations (360) jweiss@wacounties.org Brian Enslow Senior Policy Director (360) benslow@wacounties.org Abby Moore Policy Director (360) amoore@wacounties.org Gary Rowe - Managing Director, Washington State Association of County Engineers (360) growe@wacounties.org Brad Banks - Managing Director, Washington State Association of Local Public Health Officials (360) bbanks@wacounties.org Laura Merrill Policy Director (360) lmerrill@wacounties.org 80% Revenue Dedicated to Regional Service 11% Decline in Employees 0% Growth in General Fund Revenue Since % of Expenditures are towards Public Safety Washington State Association of Counties 206 Tenth Ave SE, Olympia, WA WSAC General Membership Meeting November 20, 2014 Page 38 of 49

40 DRAFT 2015 Federal Issues Agenda 11/14/14 WSAC BASE PRINCIPLES TO CONVEY Respect and Support the Importance of Local Control and Decision Making Federal Program and Regulatory Requirements Must Come with Adequate Funding and Resources BUDGET AND FINANCE The Marketplace and Internet Tax Fairness Act (MITFA) (S. 2609) WSAC supports the bi-partisan Marketplace and Internet Tax Fairness Act to allow states to enforce existing sales and use tax laws by requiring out-of-state sellers to collect those taxes through a new, simplified tax system. According to the State of Washington s Department of Revenue, adoption of S would generate an estimated $250 million in local sales and use tax during the Fiscal biennium. Secure Rural Schools (SRS) and Payment in Lieu of Taxes (PILT) WSAC supports the reauthorization and enhancement of the Secure Rural Schools program (P.L ). WSAC also supports full funding of the PILT program to the authorized levels of P.L. l and beyond. We further ask that Congress continue to recognize that SRS and PILT are separate funding mechanisms created for very different reasons, the latter relating land ownership and the former relating to revenue sharing (SRS). In FY 13, Washington s counties received $19.2 million in PILT and $18.9 million in SRS. Protect County Revenue and Investment Strategies - Tax-Exempt Municipal Bonds County government has used tax-exempt municipal bonds for more than a century as a low-cost way to finance public infrastructure. This federal policy is no "loophole". Tax Exempt Bonds that this helps to reduce service and program costs to citizens. Washington's counties support the tax-exempt status of municipal bonds to provide vital investment in public facilities from jails to roads, courthouses to parks, stormwater and wastewater treatment facilities and other important community infrastructure. WSAC is concerned about any efforts to limit the tax-exempt status of municipal bonds. Protect Defense Spending in Washington State Federal military spending in Washington State is critical to the states economy and many of our counties. Washington State is fortunate to contain a number of significant military installations including: Joint Base Lewis McCord (Pierce/Thurston Counties) Yakima Firing Range (Kittitas and Yakima Counties) DRAFT 2015 WSAC Federal Issues Agenda November 14, 2014 WSAC General Membership Meeting November 20, 2014 Page 39 of 49

41 Fairchild Air Force Base (Spokane County) Puget Sound Naval Ship Yard (Kitsap County) Naval Base Kitsap (Kitsap County) Everett Naval Station (Snohomish County) Whidbey Island Naval Air Station (Island County) Naval Undersea Weapons Engineering Station (Kitsap and Jefferson Counties) Camp Murray State of Washington Military Department (Pierce County) In addition to the federal military installations, our Washington State National Guard and Military Department are vital to providing and responding to state and federal disasters including flooding, catastrophic forest fires, and other emergencies that outpace the ability of local emergency responders. HEALTH AND HUMAN SERVICES Prevention and Public Health Fund Washington 's 39 counties deliver public health, mental health and chemical dependency services on behalf of the state of Washington. Critically important is preserving the Prevention and Public Health Fund to assist our local public health departments to prevent illness and promote health so that all Washington residents have access to health care services and can lead longer, more productive lives. Since 20 l0, Washington State has received approximately $21.7 million through the Prevention and Public Health Fund. Inmate Care/Medicare/Medicaid Washington 's counties support changes in current federal law or regulation to allow an otherwise eligible person, who is in custody, but not convicted (pre-trial), to continue to receive federal health benefits until such time as they may be convicted, sentenced, and incarcerated. Specifically, we support either legislation or the Center for Medicare and Medicaid Services (CMS) adopting rules to require states to stop terminating eligibility for persons in custody pending disposition. TRANSPORTATION Highway Trust Fund Authorization of the Surface Transportation Program WSAC supports the reauthorization of the surface transportation bill known as MAP-21, which is set to expire in We urge a federal transportation program that includes: A clearly defined and enhanced role for counties in federal, statewide, and metropolitan transportation planning and programming frameworks; More program flexibility and funding decisions based on performance metrics; DRAFT 2015 WSAC Federal Issues Agenda November 14, 2014 WSAC General Membership Meeting November 20, 2014 Page 40 of 49

42 Efforts to streamline and expedite the delivery of projects, including flexibility in the environmental review process for projects; Support for multimodal projects, including policy to encourage coordination between federal agencies; The ability to toll new and converted capacity on existing interstates, and flexible use of the proceeds from tolling; Policy and funding to support intercity transit and rail service; Provisions that address the mobility needs of rural counties and rural areas, and disabled and transit-dependent populations; Continuing and expanding the use of innovative financing tools for transportation projects like the Transportation Finance and Innovation Act (TIFIA) program; Increased funding for safety projects aimed at reducing fatalities, especially on rural roads where fatality rates are the highest; Continuing dedicated funding for off-system bridges; Policies that prioritize the movement of freight, including assistance to state and local governments, and railroads for the rehabilitation, preservation and improvement of rails lines; Reforms to the highway trust fund that will restore solvency and provide long-term sustainable funding for highway and transit projects; Equitable distribution of funding, including direct funding to local transportation providers; and Funding and planning assistance to complete projects of statewide significance. Continued and increased funding for Transportation Investment Generating Economic Recovery Program (TIGER) Harbor Maintenance Trust Fund (HMTF) Implementation WSAC supports full implementation and funding for changes to the Harbor Maintenance Trust Fund for deep-water ports and dredging-dependent ports on the Columbia NATURAL RESOURCE ISSUES Water Quality Standards Clean Water Act In the fall of 2012, the Washington State Department of Ecology (Ecology) started a formal process to update the state s Water Quality Standards, including human health criteria. Because Washington has delegated authority by the Environmental Protection Agency (EPA) under the Clean Water Act, this rule will require EPA approval. The human health criterion is a complicated formula that includes a fish consumption number and a cancer risk factor. This topic is very controversial, and several of Washington s Tribes have requested that the EPA take over the regulatory process. Washington has invested years in this process DRAFT 2015 WSAC Federal Issues Agenda November 14, 2014 WSAC General Membership Meeting November 20, 2014 Page 41 of 49

43 and Governor Inslee recently proposed a path forward. The EPA should allow Washington State to seek state rulemaking, and potential state legislation, through implementation and monitoring. Waters of the US Washington s 39 Counties maintains over 40,000 miles of roads and oppose rule and definitional changes by EPA and Corp of Engineers to the Waters of the US. Our analysis finds the proposed definitions are ambiguous and unclear as to whether county road ditches, stormwater facilities, and other infrastructure is exempt or would be determined to be jurisdictional tributaries of US Waters. Columbia River Treaty Our 20 Columbia River Counties are actively involved in participating in the update process for the Columbia River Treaty. The Columbia River Treaty is an international agreement between Canada and the United States regarding the cooperative development and operation of the water resources of the Columbia River Basin for the current stated benefits of flood control and power. Our counties support efforts to modernize the treaty. In particular, we support the Sovereign Review Team recommendation that states, "Other important elements of a modernized Treaty are current and future water supply to meet regional needs for irrigation, municipal and industrial use, instream flows, navigation, and recreation." Puget Sound and Watershed Restoration Our 12 Puget Sound counties support funding for a variety of activities through EPA and NRCS to assist in the restoration of Puget Sound and stewardship of our watersheds. Stormwater We support targeted federal investment in cost effective approaches to retrofitting stormwater facilities and collect stormwater runoff in separate storm sewers and discharge it to surface waters as required to have a permit under the federal Clean Water Act. It is important to have federal funding support for the implementation Municipal Stormwater Permit and National Pollutant Discharge Elimination System (NPDES) permits and not solely supported by ratepayers. Our costs went up $42.last year and I understand there may be another increases this year. That is reasonable and cost effective to meet the requirements of both the federal Clean Water Act and requirements imposed by the State Department of Ecology. National Flood Insurance Program (NFIP) and Biggert-Waters Act WSAC supports a sustainable, fiscally responsible NFIP to protect the businesses and homeowners who built according to code and have followed all applicable DRAFT 2015 WSAC Federal Issues Agenda November 14, 2014 WSAC General Membership Meeting November 20, 2014 Page 42 of 49

44 laws. We urge Congress and the administration to keep flood insurance rates affordable while balancing the fiscal solvency of the program. Salmon Recovery We support Puget Sound Nearshore Ecosystem Restoration and the National Estuary Program. Consistent with the Alliance for a Healthy South Sound, WSAC supports a more equitable method to assure a portion of federal funds go to on the ground, local government projects and programs supported by local implementing organizations, local governments, tribes, and citizens. WSAC supports Pacific Coastal Salmon Recovery Programs, the Mitchell Act and other programs and services including appropriate hatchery activities that assist in our Regional Salmon Recovery Efforts. Federal Forest Health and Management WSAC supports policies and legislation that renews the federal government s commitment to manage federal forests for the benefit of counties containing federal forestland, improve forest health, and help prevent catastrophic wildfires. Federal Lands Transfer to the States WSAC supports a systematic and factual review of the potential benefits and risks associated with the transfer of federal Forest Service lands to Washington State or its counties. DRAFT 2015 WSAC Federal Issues Agenda November 14, 2014 WSAC General Membership Meeting November 20, 2014 Page 43 of 49

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46 Todd A. Murray Debra Hansen Janet Schmidt Laura Lewis Curtis Beus Jim Kropf Mike Gaffney Affiliate Chair Vice Chair Outgoing Chair Westside Eastside County Specialist Trustee Trustee Director Liaison Liaison November 2014 WSU Extension WSAC Affiliate Report Washington State University Extension has significantly reorganized and has enjoyed the leadership of Dr. Rich Koenig as Associate Dean and Director. With the reorganization, we have had programmatic leadership in the areas of Agriculture and Natural Resources by Randy Baldree and Jim Kropf; Community and Economic Development by Rob McDaniel; Youth and Families by Doreen Hauser-Lindstrom and Pat BoyES; and County Leadership by Jim Kropf. County-based faculty members now work within statewide program units instead of administrative regions. This has allowed for significant growth in programming across the state as units function and collaborate at a state-level. Following the release of the WSAC and WSU Extension Restructuring and Taskforce recommendations in 2011, WSU Extension has been implementing many of the recommendations. Of key focus in 2014 is the effectiveness of delivering programs regionally across multiple counties. Faculty members implementing the regional model approach have been collecting stakeholder input for the past few years. At the WSAC Affiliate Annual Conference in Spokane, significant time has been allocated to discuss the current status of the regional model in light of funding structures and staffing models. Positions for county-based faculty have also evolved. In 2014, new county directors have been hired into positions that are non-tenure track. This has allowed more time to be spent on developing and delivering educational programs and bringing resources into county programs. Regional specialists now serve multiple counties to deliver the high quality programs and applied research valued by our clientele. WSU Extension values the relationship and partnership with the counties across Washington State as we celebrate the 100th anniversary of the appointment of the first county extension agent in this state. Through this unique partnership, Extension faculty and program staff bridge the research and knowledge base of the university to engage families and communities in advancing economic well-being and quality of life. Thirty-seven WSU Extension county directors and leaders from across the state attended the affiliate meetings this year. The WSAC affiliate planning team began in August to develop this year s agenda. The team would like to thank Derek Anderson and Sarah Langley of WSAC for their support and coordination of the conference planning. Sincerely, Todd A. Murray Chair, WSU Extension WSAC Affiliate WSU Extension programs and employment are available to all without discrimination. Evidence of noncompliance may be reported through your local WSU Extension office. WSAC General Membership Meeting November 20, 2014 Page 45 of 49

47 November 2014 The Association of County Human Services (ACHS) is a nonprofit 501(c) (3) affiliate organization of the Washington State Association of Counties (WSAC). ACHS is made up of members of the County Human Services Directors and Managers, County Coordinators, and Regional Support Network (RSN) Administrators who facilitate the provision of services through local and statewide coordination, advocacy, program development, and quality management. ACHS provides expertise to WSAC, as they act on Washington State Executive and Legislative branch actions that affect the Counties planning, service delivery and administrative responsibilities for Human Services in the areas of Chemical Dependency, Developmental Disabilities, Mental Health and Homeless Housing. ACHS elected leaders and members meet bi-monthly to discuss implementation of County policies and contracts. They also work with representatives from the Department of Social and Health Services (DSHS), the Health Care Authority and the Department of Commerce on relevant issues. ACHS leadership meets with leadership in State Agencies to discuss policy issues and major challenges. These partnerships continue to grow and strengthen as counties continue to show a willingness to work together and offer insightful suggestions. Our main focus has been on the state agencies efforts in reforming health care, especially as it relates to the coordination and integration of behavioral health and primary care services. The legislatively created Adult Behavioral Systems Task Force has been meeting and we have been actively involved in providing information and feedback on proposed policy changes. We are also participating in all three stakeholder workgroups that are charged with making recommendations to the Task Force. We remain concerned that the projected savings from Medicaid expansion will not be fully realized, thus resulting in deeper cuts to county funding. This will continue to be a major focus of ACHS as we move into Legislative Session. ACHS members continue to be involved in numerous stakeholder groups and steering committees geared toward integrating delivery systems and improving outcomes for those we serve. Our experience and knowledge is essential to crafting successful policy and program changes. ACHS members are closely monitoring and responding to several agency proposals and grant applications that have the potential to vastly alter the role counties play in providing health and human services. We will continue our efforts to assist the Legislative Steering Committee in preparing for the 2015 Legislative Session and work on additional policy issues as they arise. Thank you for your continued support with these important matters. Jim Vollendroff, ACHS President WSAC General Membership Meeting November 20, 2014 Page 46 of 49

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