Board of Director s Meeting

Transcription

1 Board of Director s Meeting Hal Holmes Community Center Kittitas County Ellensburg, Washington September 19, 2014

2 WSAC Board Count ByLaws Ref Population Executive Board Seat First Name Last Name County 13.5 < Quorum Executive Committee 1 3.4a President Helen Price Johnson Island 2 3.4a V-President David Sauter Klickitat 3 3.4a Sec/Treasurer Stephanie Wright Snohomish 4 3.4b, IP-President Todd Mielke Spokane Board of Directors Board Seat First Name Last Name County 6 3.4b P-President Dean Burton Garfield 7 3.4f 1,957,000 King County Executive Dow Constantine King 8 3.4e 1 1,957,000 King County Council Reagan Dunn King 9 3.4e 2 808,200 Pierce County Connie Ladenburg Pierce e 3 722,900 Snohomish County Dave Somers Snohomish e 4 475,600 Spokane County Shelly O'Quinn Spokane e 5 431,250 Clark County Tom Mielke Clark e 6 256,800 Thurston County Cathy Wolfe Thurston e 7 254,500 Kitsap County Robert Gelder Kitsap e 8 246,000 Yakima County Kevin Bouchey Yakima e 9 203,500 Whatcom Jack Louws Whatcom e ,000 Benton Jerome Delvin Benton d 1 Eastern Region Al French Spokane d 2 Eastern Region Obie O'Brien Kittitas d 3 Eastern Region Greg Tompkins Walla Walla d 4 Eastern Region Bob Koch Franklin c 1 Western Region Steve Rogers Pacific c 2 Western Region Jim McEntire Clallam c 3 Western Region Blair Brady Wahkiakum c 4 Western Region Lee Grose Lewis Board Alternate Seat First Name Last Name County 3.4f 1,957,000 King County Executive Joe McDermott King 3.4e 1 1,957,000 King County Council Kathy Lambert King 3.4e 2 808,200 Pierce County Pat McCarthy Pierce 3.4e 3 722,900 Snohomish County No designee assigned Snohomish 3.4e 4 475,600 Spokane County No positions available Spokane 3.4e 5 431,250 Clark County No designee assigned Clark 3.4e 6 256,800 Thurston County Karen Valenzuela Thurston 3.4e 7 254,500 Kitsap County Charlotte Garrido Kitsap 3.4e 8 246,000 Yakima County Mike Leita Yakima 3.4e 9 203,500 Whatcom Pete Kremen Whatcom 3.4e ,000 Benton James Beaver Benton 3.4d 1 Eastern Region Scott Hutsell Lincoln 3.4d 2 Eastern Region Carolann Swartz Grant 3.4c 1 Western Region Ken Dahlstedt Skagit 3.4c 2 Western Region Kelly Emerson Island Affiliate Presidents Board Affiliates (Non-voting Mbrs) First Name Last Name County ACCIS Cindy Zielinski City of Lacey ACHS Jim Vollendorf King WACCCs Julie Kjorsvik Kittitas WCAA Loretta Smith Kelty Benton WSACE Jonathon Brand Kitsap WSACRPD Karen Witherspoon Skamania WSALPHO Jefferson Ketchel Grant WSEMA Jim Hall Yakima WSUEXT Janet Schmidt Whitman WSAC Board of Director's Meeting September 19, 2014 Page 1 of 121

3 WSAC BOARD OF DIRECTORS MEETING AGENDA Friday, September 19, 2014, 9:00 a.m. 1:00 p.m. Kittitas County Lunch Provided Hal Holmes Community Center 209 N. Ruby St. Call in Information: Ellensburg, WA Meeting #: Hal Holmes Website Driving Directions TIME* Encl. PRESENTER(s) AGENDA TYPE 9:00 a.m. President Price Johnson CALL TO ORDER and Introductions; Establish Quorum President Price Johnson 1. APPROVE Agenda President Price Johnson 2. APPROVE MINUTES: May 7, 2014 President Price Johnson Commissioner Dahlstedt Commissioner Mielke President Price Johnson 3. President s Report 4. NACo Reports WSAC BUSINESS 9:15 a.m. WSAC Officers: President Price Johnson Vice President Sauter Sec/Treasurer Wright Past President Mielke WSAC Staff: Eric Johnson Karlyn Shannon Proposed WSAC Budgets a) Proposed 2015 Goals and Actions b) Proposed 2015 Special Fund Budget c) Proposed 2015 WSAC Operating Budget d) Proposed 2015 General, Transportation and Timber Dues Actions: Consider Adopting Resolution a. Recommending Proposed 2015 WSAC Goals and Actions b. Approving 2015 WSAC Special Fund Operating Budget c. Recommending Proposed 2015 WSAC Operating Budget d. Recommending 2015 WSAC General, Transportation and Timber Dues Action 10:00 a.m. Eric Johnson Karlyn Shannon 6. WSAC Comprehensive Policy Manual Amendment a. Sick Leave Wellness Exemption b. Timber Counties Charter c. Member Travel Action Actions: Consider Adopting Amendments to WSAC Comprehensive Policy Manual Resolution: :15 a.m. President Price Johnson Josh Weiss Legislative Steering Committee Roster Actions: Consider Confirmation of LSC Roster Resolution: Action 10:25 a.m. President Price Johnson Eric Johnson Federal Issues and Relations Committee Actions: Consider Confirmation of Roster Resolution: Action 10:35 a.m. Derek Anderson 9. Boards and Commissions (Nominations and Appointments) Actions: Consider Adopting Nominations and Appointments Resolutions: and Action 10:45 a.m. Eric Johnson Josh Weiss 10. Bylaws Review Update Update/ Input WSAC Board of Director's Meeting September 19, 2014 Page 2 of 121

4 TIME* Encl. PRESENTER(s) AGENDA TYPE 11:00 a.m. Eric Johnson 11. Non-Dues Revenue County Government Book Publishing Opportunity Actions: Consider Authorizing Book Development Resolution: Action 12. Retrospective Rating Pool 11:15 a.m. Eric Johnson Karlyn Shannon Actions: Consider termination of the Counties Select Retrospective Rating Program and County Workforce Safety Alliance Resolution: Action STAFF REPORTS Noon Working Lunch Provided Eric Johnson 13. Executive Director Report Karlyn Shannon 14. Business and Finance Report Derek Anderson 15. Communications and Member Services Report Josh Weiss 16. Policy and Legislative Relations Report Eric Johnson Goals and Actions Update and Review Report OTHER BUSINESS 12:45 Eric Johnson Josh Weiss 18. Executive Session Pending Litigation/Amicus Curiae Brief Update Report *Times are approximate only President Price Johnson Board Members 19. WSAC Board of Director Reports from activities on Statewide Boards and Commissions Presentation by WSAC Board Members on Current Issues relating to Statewide Boards and Commissions they serve/represent WSAC on Report Next Meeting: Scheduled for Tuesday, November 18, 2014, Noon 3:00 p.m. WSAC Annual Conference - Spokane County, The Davenport WSAC Board of Director's Meeting September 19, 2014 Page 3 of 121

5 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS May 7, 2014 Opening A regularly scheduled meeting of the Board of Directors of the Washington State Association of Counties (WSAC) was held on Wednesday, May 7, 2014 starting at approximately 4:00 p.m. at Campbell s, Chelan County, Chelan, Washington. All directors had been previously notified of the meeting pursuant to the Association Bylaws. Board members present: President Helen Price Johnson, Vice President David Sauter, Secretary Treasurer Stephanie Wright, Immediate Past President Todd Mielke, Past President Dean Burton, Kathy Lambert, Dave Somers, Tom Mielke (via conference call), Robert Gelder, Jack Louws, Jerome Delvin, Al French, Obie O'Brien, Bob Koch, Jim McEntire, Blair Brady, Lee Grose, Scott Hutsell, Carolann Swartz, Ken Dahlstedt. A quorum was present. Other members present: Wes McCart, Ron Walter, Karen Skoog, Phil Johnson, Dale Snyder, Jim Detro, Paul Jewel, Chris Brong. Staff and others present: Eric Johnson, Josh Weiss, Karlyn Shannon, Derek Anderson, Laura Merrill, Gary Rowe, Abby Murphy, Jennifer Joly, Paul Pearce, Matt Chase (NACo), Deborah Cox (NACo). Call to Order and Approval of Agenda: The meeting was called to order at 4:05 p.m. It was moved, seconded and approved to adopt the agenda. Approval of minutes of previous meeting: It was moved by Blair Brady and seconded by Lee Grose to approve the minutes as drafted. The motion carried to adopt the minutes of the February 5, 2014 meeting as drafted. Other Activity & Staff Reports: Matt Chase and Deborah Cox from the National Association of Counties were present and reported on national topics as well as services offered by NACo to member counties. Staff reports were presented as submitted. Refer to the board packet. WSAC Business Actions Federal Relations and Engagement Policy: Vice President David Sauter and Eric Johnson presented the process involved in developing the policy as well as the implementation recommendations. The implementation schedule stipulates a deliberative and paced set of actions to move the Association towards a full understanding if a complete program is within the Associations best interest. Resolution # : A motion was made by Jack Louws and seconded to approve Resolution # which approves the revised Federal Relations and Engagement Policy as proposed by WSAC President Price Johnson and Vice President Sauter with amended language in the opening paragraph; and approves the Federal Relations and Engagement implementation schedule as proposed by WSAC President Price Johnson and Vice President Sauter. The motion was carried. Statewide Boards and Commissions Policy: Derek Anderson presented proposed revisions to the Statewide Boards and Commissions Policy to include: the recruitment process and schedule, the selection process for appointments and nominations, and reporting requirements/expectations for those appointed to boards and commissions. Resolution # : A motion was made by Jim McIntire and seconded by Dave Sauter to approve Resolution # which approves the revisions and amendments to the WSAC Policy Manual and authorizes its implementation and use. The motion was carried. Board and Commissions Nominations and Appointments: Derek presented the positions up for approval. Open positions that are an appointment by the WSAC Board of Directors: WSAC Board of Director's Meeting September 19, 2014 Page 4 of 121 1

6 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS May 7, 2014 Resolution # : Vacancy on the County Road Administration Board, population 125,000+. Todd Mielke, Spokane County Commissioner is seeking appointment for this vacancy. A motion was made by Blair Brady to approve resolution # which appoints Todd Mielke, Spokane County Commissioner, to fill the County Road Administration Board, population 125,000+ position. The motion was seconded. The motion carried. Resolution # : Vacancy on the County Road Administration Board, population 20, ,000. Bill Schulte, Lewis County Commissioner is seeking re-appointment for this vacancy. A motion was made by Lee Grose to approve resolution # which re-appoints Bill Schulte, Lewis County Commissioner, to fill the County Road Administration Board, population 20, ,000 position. The motion was seconded. The motion carried. Resolution # : Vacancy on the County Road Administration Board, County engineer population < 20,000. Andrew Woods, Columbia County engineer/public Works Director is seeking re-appointment for this vacancy. A motion was made by Blair Brady to approve resolution # which re-appoints Andrew Woods, Columbia County engineer/public Works Director, to fill the County Road Administration Board, County engineer population < 20,000 position. The motion was seconded. The motion carried. Resolution # : Vacancy on the Noxious Weed Control Board. Don Dashiell, Stevens County Commissioner and Jim DeTro, Okanogan County Commissioner are seeking appointment for this vacancy. A vote was held and Jim DeTro received a majority of the votes. A motion was then made by Dave Sauter and seconded by Todd Mielke to approve resolution # which re-appoints Jim DeTro, Okanogan County Commissioner, to fill the Noxious Weed Control Board position. The motion carried. Open position that is a nomination to the Secretary of Transportation Lynn Peterson by the WSAC Board of Directors: Resolution # : Vacancy on the Transportation Improvement Board. Dennis Weber, Cowlitz County Commissioner and Bob Koch, Franklin County Commissioner are seeking nomination for this vacancy. A motion was made and seconded to approve Resolution # to send the nominations of Dennis Weber, Cowlitz County Commissioner and Bob Koch, Franklin County Commissioner to the Transportation Improvement Board. The motion carried. Open positions that received no nominations during the meeting: Law Enforcement and Fire Fighters Plan 2 Retirement Board (LEOFF) Select Committee on Pension Policy 2015 County Leaders Conference Site Selection: Derek Anderson presented and discussed the 2015 site selection information and process and the necessity to begin the request for proposal process. Due to the complexity of timing as well as the limited venues, staff is seeking to delegate authority to the WSAC officers for approval of the site using a set of agreed criteria. Resolution # : A motion was made and seconded to approve Resolution # which approves the delegated authority to the WSAC officers to approve a venue for the 2015 Annual County Leaders conference utilizing at a minimum a set of criteria and parameters. The motion was carried. Policy Manual Amendment: Karlyn presented the board with a policy manual amendment to update the basic General dues from $2,000 to $2,500. The increase in basic General dues was recommended by both the WSAC Executive Board and Board of Directors and approved by the general membership in November Resolution # : A motion was made by Dave Sauter and seconded to approve Resolution # which approves the updated General dues policy in the WSAC Comprehensive Policy and Procedures Manual. The motion was carried. WSAC Board of Director's Meeting September 19, 2014 Page 5 of 121 2

7 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS May 7, 2014 Amicus Brief: Eric presented to the WSAC Board of Directors an Amicus Brief Request form submitted by Thurston County. Thurston County is requesting that WSAC provide support and assistance in the writing of an amicus brief regarding City of Burlington v. Washington State Liquor Control Board. Action: A motion was made by Blair Brady and seconded by Kathy Lambert to approve Thurston County s amicus brief request. The motion was carried. Executive Session Executive Session: No executive session was held during this meeting. Closing Next Meeting: The next meeting of the Board of Directors will be on September 19, 2014 in Kittitas County, Ellensburg, Washington. Adjourn: There being no further business; President Helen Price Johnson adjourned the meeting at 7:50 p.m. Respectfully submitted: ATTEST: Stephanie Wright, Secretary/Treasurer Helen Price Johnson, President WSAC Board of Director's Meeting September 19, 2014 Page 6 of 121 3

8 WSAC Business WSAC Board of Director's Meeting September 19, 2014 Page 7 of 121

9 September 19, 2014 TO: FROM: SUBJ: WSAC Board of Directors and Alternates 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 Executive Board s 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 Executive Board s 2015 Proposed Operations Budget proposes a modest 4% addition to WSAC 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 Executive Board s 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 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. WSAC Board of Director's Meeting September 19, 2014 Page 8 of 121

10 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: $(12,500) 401K 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 Board of Director's Meeting September 19, 2014 Page 9 of 121

11 Recommendation The Executive Board recommends approval of Resolution to: a. Approve the 2015 Special Fund Operating Budget b. Recommend to the WSAC Membership the Proposed 2015 Operations Budget c. Recommend to the WSAC Membership the Proposed 2015 General, Transportation and Timber Dues Schedule d. Recommend to the WSAC Membership the Proposed 2015 Goals and Actions WSAC Board of Director's Meeting September 19, 2014 Page 10 of 121

12 PROPOSED 2015 OPERATING GOALS & PROPOSED 2015 WSAC OPERATIONS AND SPECIAL FUND BUDGETS AS RECOMMENDED BY THE WSAC OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 11 of 121

13 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 Executive Board 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 12 of 121

14 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 13 of 121

15 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 14 of 121

16 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 15 of 121

17 GOAL: POLICY DEVELOPMENT AND ADVOCACY MANAGEMENT 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. GOAL: PROGRAMS AND BUSINESS SERVICES 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 16 of 121

18 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. GOAL: PROCESS IMPROVEMENT 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 17 of 121

19 GOAL: OPERATIONS Provide quality facilities, professional staff and manage resources in an effective and efficient manner. Action Facilities and Equipment Resources Continue monitoring facility needs including property acquisition and long term facilities plan. Staff 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 18 of 121

20 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 staff COLA: $0 Medical benefits estimated increase at 6.9%. Employee contributions remain the same for individual and family rates: $(12,229) Targeted Staff Increases $(12,500) 401K Discretionary Contributions (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 GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS - AS RECOMMENDED BY THE WSAC OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 19 of 121

21 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 20 of 121

22 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 21 of 121

23 2015 PROPOSED BUDGET (ALL FUNDS) AND 3 YEARS PRIOR Revenue 2012 Actual 2013 Actual 2014 Adopted Budget 2015 Proposed Budget 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 22 of 121

24 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 23 of 121

25 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 24 of 121

26 2015 BUDGET (ALL FUNDS) CHARTS 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS - AS RECOMMENDED BY THE WSAC OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 25 of 121

27 2015 WSAC GOALS AND OPERATIONS AND SPECIAL FUND BUDGETS - AS RECOMMENDED BY THE WSAC OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 26 of 121

28 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 27 of 121

29 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 28 of 121

30 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 29 of 121

31 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 OFFICERS WSAC Board of Director's Meeting September 19, 2014 Page 30 of 121

32 Resolution # WHEREAS, the Washington State Association of Counties has two separate annual budgets: 1. Special Fund Budget 2. Operations Budget; and WHEREAS, the Washington State Association of Counties Board of Directors is charged with the approval of the 2015 Special Fund Budget for the Association; and WHEREAS, the Washington State Association of Counties Board of Directors is responsible to review and recommend the proposed 2015 Operations Budget, including Goals and Actions, and proposed General, Transportation and Timber Dues Schedules, to the WSAC membership for approval; and WHEREAS, it is vital that the Washington State Association of Counties Board of Directors establish and maintain a budget that is linked to organizational mission, goals and actions; and WHEREAS, the Washington State Association of Counties Board of Directors desires to establish a Special Fund Budget and an Operations Budget to guide the use of resources, establish accountability, and is fiscally responsible; NOW THEREFORE, BE IT RESOLVED that the Washington State Association of Counties Board of Directors approves the recommendation of the WSAC Executive Board and hereby adopts the 2015 Special Fund Budget; and BE IT FURTHER RESOLVED, the Washington State Association of Counties Board of Directors recommends the following items to the WSAC Membership for their consideration and approval at the Thursday, November 20, 2014 Annual Meeting: 1. Proposed 2015 Annual Operations Budget; and 2. Proposed 2015 General, Transportation, and Timber Dues Schedule; and 3. Proposed 2015 Goals and Actions. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 31 of 121

33 September 19, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Karlyn Shannon, Business and Financial Services Director WSAC Comprehensive Policy Manual Amendments Background The Washington State Association of Counties Bylaws, as adopted November 19, 2009, prescribe the responsibilities and duties of the WSAC Board of Directors i. Specific responsibilities include: Adopt a personnel policy for the Association staff Adopt a travel policy for all activities of the Association At the June 15, 2010, WSAC Board of Directors Meeting, members approved a comprehensive update of the WSAC Policy Manual. This update included the creation of a comprehensive manual that encompassed the following categories: Personnel Members Cash & Investments Records & Meeting Management Partners Conferences Since that time there have been a number of updates to the manual including: Added: 9/17/2010 Updated: 9/16/2011 Added: 11/13/2012 Updated: 1/30/2013 Updated: 5/8/2013 Added: 9/20/2013 Updated: 2/5/14 Updated: 5/7/14 Added: 5/7/14 Amicus Brief Policy & Form LSC Meeting Travel Allowance Whistleblower Policy Various Personnel Policies Audit, Investment and Finance Committee Charter Personnel - Employee Retention Personnel - Leave Sharing for Catastrophic Illness General and Transportation Dues Statewide Boards & Commissions Federal Relations & Engagement Policy For the current updates to the personnel section of the manual add clarification for sick leave as well as clarification for member travel. Revisions and additions of the following policies are proposed: Personnel Policies: UPDATE: Sick Leave Incentive Conversion NEW: Wellness Leave WSAC Board of Director's Meeting September 19, 2014 Page 32 of 121

34 Member Travel: UPDATE: Executive Committee Members NACo Related Travel UPDATE: Members Serving on NACo Boards Standing Committees, Task Forces, and Caucuses UPDATE: Timber Counties Charter WSAC Bylaws and WSAC Comprehensive Policy Manual may be found at: Discussion Staff and WSAC Members have identified the following areas for potential amendment: Sick Leave Incentive Conversion - This change clarifies the process for the conversion of excess sick leave to vacation leave. Sick Leave for Wellness - Staff is proposing to permit non-exempt staff to attend wellness checkups and appointments as a part of Association approved wellness programs. Executive Committee Members NACo Related Travel - Members and staff propose to modify language to permit reimbursement for the Vice President and Secretary Treasurer of up to $4,000 to attend at least two NACo meetings in their capacity of WSAC Officer. Members Serving on NACo Boards - Staff proposes to modify language to permit reimbursement of up to $4,000 to attend at least two NACo meetings in their capacity of WSAC representative on either the NACo Board of Directors or NACo Western Interstate Region Board of Directors. Currently, WSAC Provides up to $2,000 for two meetings. Timber Counties Charter: o Currently, the Timber Counties chair person is elected by the Timber Committee members. It is suggested that the chair shall be appointed by the WSAC President. o Currently, the Timber Counties Charter does not stipulate a term for its representative on the Board of Natural Resources. It is suggested that the charter and policy be modified to align with RCW that states: The county representative must be a duly elected member of a county legislative authority who shall serve a term of four years unless the representative should leave office for any reason. Staff Recommendation Staff recommends approval of the following amendments to WSAC Comprehensive Policy Manual via resolution i ARTICLE 3. Board of Directors WSAC Board of Director's Meeting September 19, 2014 Page 33 of 121

35 I PERSONNEL ORIGINAL ADOPTION: January 1, 2004 BOARD APPROVED REVISION: February 15, 2014 Part 6 - Leave Sick Leave Incentive Conversion An employee with an excess of 60 days (480 hours) sick leave accrued may convert the excess days earned in the previous year (less any sick leave days used in the previous year) to vacation days at the rate of four (4) days sick leave for one (l) day of vacation. Wellness Leave WSAC encourages employees to participate in wellness programs designed to improve the quality of life for employees. Participation in a wellness program is voluntary and outside the scope of an employee s job duties. Wellness programs encourage employees on an annual basis to complete a health risk assessment, obtain biometric numbers and receive a routine physical examination. Non exempt employees will be allowed to take four hours of wellness leave per year as a participation incentive for completing these wellness program tasks. A certificate of completion from the employee s wellness program must be presented to obtain the leave hours. Leave taken without a wellness certificate of completion will be charged to sick leave. II MEMBERS ORIGINAL ADOPTION: May 18, 2005 BOARD APPROVED REVISION: May 7, 2014 Part 1 Member Travel Other Executive Committee Members NACo Related Travel WSAC will pay or reimburse the registration, travel, lodging, and meal expenses of the WSAC Officers for attendance at the following National Association of Counties (NACo) Meetings as limited below during their term: NACo Legislative Conference Annual NACo Conference Western Interstate Region (WIR) WSAC Officer Authorized Number of NACo Meetings Vice President 2 Secretary-Treasurer 2 Past-President 1 Officers The member will be reimbursed for actual expenses up to a maximum of $2,000 for attendance at one meeting or $4,000 for two meetingseach meeting. Other Executive Board Travel Related to Association Business WSAC will pay or reimburse the President and other members of the Executive Committee for travel expenses which relate directly to the duties of their respective offices. WSAC Board of Director's Meeting September 19, 2014 Page 34 of 121

36 Members Serving on NACo Boards NACo Board of Directors The WSAC member(s) representing Washington State Counties on the NACo Board of Directors will receive reimbursement to cover travel, lodging, meals and registration for two of the four Board meetings held each year. The member will be reimbursed for actual expenses up to a maximum of $2,000 for attendance at one meeting or $4,000 for two meetingseach meeting. NACo WIR Board of Directors The WSAC member(s) representing Washington State Counties on the WIR Board of Directors will receive reimbursement to cover travel, lodging, meals and registration for two of the four Board meetings held each year. The member will be reimbursed for actual expenses up to a maximum of $2,000 for attendance at one meeting or $4,000 for two meetingseach meeting. Part 5 Standing Committees, Task Forces and Caucuses Timber Counties Charter The chair person shall be elected by the Timber Committee membersappointed by the WSAC President. When required, the counties with State Forest Lands shall elect to a four year term, a County Commissioner/ Councilperson as their representative to the Board of Natural Resources. WSAC Board of Director's Meeting September 19, 2014 Page 35 of 121

37 Resolution # WHEREAS, The Washington State Association of Counties Policy Manual was adopted by the WSAC Board of Directors on June 15, 2010; and WHEREAS, The WSAC Policy Manual comprehensive manual that encompasses the following major categories: Personnel Members Cash & Investments Records & Meeting Management Partners Conferences Whistleblower WHEREAS, It is in the best interest of WSAC Board of Directors to review and update the personnel policies from time to time; and WHEREAS, WSAC members and staff propose the revisions to following WSAC Policy Manual sections; and Sick Leave: UPDATE: Sick Leave Incentive Conversion NEW: Wellness Leave Member Travel: UPDATE: Executive Committee Members NACo Related Travel UPDATE: Members Serving on NACo Boards, Standing Committees, Task Forces, and Caucuses: UPDATE: Timber Counties Charter WHEREAS, the WSAC Policy Manual states that the WSAC Board of Directors may modify these policies ; NOW THEREFORE, BE IT RESOLVED that the Washington State Association of Counties Board of Directors approves the revisions and amendments to the WSAC Policy Manual and authorizes its implementation and use. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 36 of 121

38 September 19, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Helen Price Johnson, WSAC President Josh Weiss, Policy and Legislative Relations Director Proposed Legislative Steering Committee Membership BACKGROUND Each county with active members is entitled to have one member from the county legislative authority seated on the LSC. The WSAC bylaws describe active members as those duly elected or appointed whose county is currently paying annual dues. Members are self-nominated. If there is more than one nominee from the same county, the WSAC President must consult with the legislative members of that county and then make a recommendation to the Board of Directors. In addition to representatives of the county legislative authority, each elected county executive is eligible to serve on the LSC. The President is required to recommend a proposed roster to the Board of Directors who confirms the final LSC membership. Staff asked members to self-nominate by August 15 th. As of September 10 th, 9 counties had not responded. Only the Snohomish County Council had more than one nomination. President Price Johnson s current proposed roster is attached for consideration and approval. Because not all counties have responded, we are proposing that President Price Johnson or the incoming WSAC President be authorized to fill the remaining vacancies with confirmation by the Executive Committee. This is the same process we have used in the last two years in this scenario. RECOMMENDATION Staff recommends adoption of the attached resolution # confirming a slate of LSC members and empowering President Price Johnson or the incoming WSAC President to fill the remaining vacancies with confirmation by the Executive Committee. WSAC Board of Director's Meeting September 19, 2014 Page 37 of 121

39 Name John N. Marshall Jim Jeffords Jerome Delvin Keith Goehner Jim McEntire Dennis P. Weber Dale Snyder Bob Koch Carolann Swartz Frank Gordon Helen Price Johnson David Sullivan Dow Constantine Kathy Lambert Robert Gelder Paul Jewell Edna J. Fund Mark Stedman Randy Neatherlin Sheilah Kennedy Lisa Ayers Pat McCarthy Connie Ladenburg Jamie Stephens Kenneth A. Dahlstedt John Lovick Stephanie Wright Wes McCart Karen Valenzuela Blair Brady Jim Johnson Jack Louws Michael Largent Kevin Bouchey County Adams County Asotin County Benton County Chelan County Clallam County Clark County Columbia County Cowlitz County Douglas County Ferry County Franklin County Garfield County Grant County Grays Harbor County Island County Jefferson County King County Executive King County Kitsap County Kittitas County Klickitat County Lewis County Lincoln County Mason County Okanogan County Pacific County Pend Orielle County Pierce County Executive Pierce County San Juan County Skagit County Skamania County Snohomish County Executive Snohomish County Spokane County Stevens County Thurston County Wahkiakum County Walla Walla County Whatcom County Executive Whatcom County Whitman County Yakima County WSAC Board of Director's Meeting September 19, 2014 Page 38 of 121

40 Resolution # WHEREAS, the Washington State Association of Counties Board of Directors is charged under its Bylaws with confirming an annual Legislative Steering Committee Roster; and WHEREAS, the Legislative Steering Committee performs the important work of forming and recommending the WSAC Legislative Agenda for approval by the General Membership at the Annual Conference; and WHEREAS, the Legislative Steering Committee must advance a legislative agenda to the membership, monitor legislative activities, and provide guidance to the staff; and WHEREAS, WSAC President Price Johnson recommends a Legislative Steering Committee Roster to the Board of Directors that includes nominations for 34 of 43 total seats; and WHEREAS, WSAC President Price Johnson or the incoming WSAC President shall: Submit to the Executive Committee for confirmation, nominees to fill any current or future vacancies still existing on the Legislative Steering Committee; and NOW THEREFORE, BE IT RESOLVED that the Washington State Association of Counties Board of Directors: Approves President Price Johnson's Legislative Steering Committee Roster as proposed; and Authorizes President Price Johnson or the Incoming WSAC President, with confirmation from the Executive Committee, to fill remaining roster vacancies; Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 39 of 121

41 September 19, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors and Alternates Island County Helen Price Johnson, President Eric Johnson, Executive Director Federal Issues and Relations Committee Roster Confirmation BACKGROUND On May 7, 2014, WSAC Board of Directors established its Federal Relations and Engagement Policy. This policy directs that By October 1st of each year, the President shall recommend a Federal Issues and Relations Committee roster for confirmation by the Board of Directors at a regular meeting. DISCUSSION Federal Issues and Relations Committee membership composition shall be guided by the following established criteria: 1) Federal Issues and Relations Committee shall be chaired by WSAC s elected Automatic Position to the NACo Board of Directors. 2) All WSAC members that serve on the NACo Board of Directors and WIR Board of Directors shall be members of the Federal Issues and Relations Committee. 3) Only Active Members of the Washington State Association of Counties may be considered for membership on the Federal Issues and Relations Committee. 4) At least one WSAC member from each NACo Steering Committee should serve on the Federal Issues and Relations Committee. 5) At least one WSAC member from each county that participates on NACo Steering Committee should serve on the Federal Issues and Relations Committee. 6) At least one WSAC member from each of the congressional districts. 7) Active Members desiring to serve on the Federal Issues and Relations Committee may self nominate to be considered for appointment. 8) Other Active Members that are engaged in regional federal agency issues and relations shall be eligible to serve on the Federal Issues and Relations Committee. 9) Preference shall be provided to Active Members with tenured experience as a county appointed or elected official. 10) Consider the appointment of ex-officio committee members that are engaged in federal issues and are a member of a WSAC affiliate or partner organization. In August, WSAC staff initiated recruitment for both its Legislative Steering Committee and Federal Issues and Relations Committee. As sought, the following WSAC Members have put forth their nominations for consideration: WSAC Board of Director's Meeting September 19, 2014 Page 40 of 121

42 Ron Walter Commissioner Chelan County Jim McEntire Commissioner Clallam County Dennis P. Weber Commissioner Cowlitz County Carolann Swartz Commissioner Grant County Helen Price Johnson Commissioner Island County Randy Neatherlin Commissioner Mason County Connie Ladenburg Councilmember Pierce County Kenneth A. Dahlstedt Commissioner Skagit County Brian Sullivan Councilmember Snohomish County Stephanie Wright Councilmember Snohomish County Ken Klein Councilmember Snohomish County Blair Brady Commissioner Wahkiakum County RECOMMENDATION Staff recommends adoption of the attached resolution # confirming the following slate of Federal Issues and Relations Committee members and empowering President Price Johnson or the incoming WSAC President to fill the remaining vacancies with confirmation by the Executive Committee. Ron Walter Commissioner Chelan County Jim McEntire Commissioner Clallam County Dennis P. Weber Commissioner Cowlitz County Carolann Swartz Commissioner Grant County Helen Price Johnson Commissioner Island County Randy Neatherlin Commissioner Mason County Connie Ladenburg Councilmember Pierce County Kenneth A. Dahlstedt Commissioner Skagit County Brian Sullivan Councilmember Snohomish County Ken Klein Councilmember Snohomish County Blair Brady Commissioner Wahkiakum County WSAC Board of Director's Meeting September 19, 2014 Page 41 of 121

43 Resolution # WHEREAS, the Washington State Association of Counties Board of Directors is charged under its policies to confirming an annual Federal Issues and Relations Committee roster; and WHEREAS, the Federal Issues and Relations Committee performs the important work of forming and recommending the WSAC Federal Legislative Agenda for approval by the General Membership at the Annual Conference; and WHEREAS, the Legislative Steering Committee must advance a federal legislative agenda to the membership, monitor federal legislative activities, and provide guidance to the staff; and WHEREAS, WSAC President Price Johnson recommends a Federal Issues and Relations Committee Roster to the Board of Directors that includes representatives of 9 counties; and WHEREAS, WSAC President Price Johnson or the incoming WSAC President shall: Submit to the Executive Committee for confirmation, nominees to fill any current or future vacancies still existing on the Federal Issues and Relations Committee; and NOW THEREFORE, BE IT RESOLVED that the Washington State Association of Counties Board of Directors: Approves President Price Johnson's Federal Issues and Relations Committee Roster as proposed: Ron Walter Commissioner Chelan County Jim McEntire Commissioner Clallam County Dennis P. Weber Commissioner Cowlitz County Carolann Swartz Commissioner Grant County Helen Price Johnson Commissioner Island County Randy Neatherlin Commissioner Mason County Connie Ladenburg Councilmember Pierce County Kenneth A. Dahlstedt Commissioner Skagit County Brian Sullivan Councilmember Snohomish County Ken Klein Councilmember Snohomish County Blair Brady Commissioner Wahkiakum County Authorizes President Price Johnson or the Incoming WSAC President, with confirmation from the Executive Committee, to fill remaining roster vacancies; Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 42 of 121

44 September 19, 2014 TO: FROM: PREPARED BY: WSAC Board of Directors Eric Johnson, Executive Director Derek Anderson, Director, Member Services and Communications SUBJECT: Appointments and Nominations to Statewide Boards & Commissions The following nominations were received for open county represented positions on statewide boards and commissions. Attached are applications and statement of interests from each candidate. Nominations to the Governor State Board of Health Eligibility: Elected Commissioner or Councilmember Number of Positions: One Number of Applications Received: Three Rick Hughes, San Juan County Councilmember James Jeffords, Asotin County Commissioner Karen Valenzuela, Thurston County Commissioner State Council on Aging Eligibility: Elected Commissioner or Councilmember Number of Positions: One Number of Applications Received: One Mike Backman, Wahkiakum County Commissioner WSAC Board of Director's Meeting September 19, 2014 Page 43 of 121

45 Boards and Commissions - September 2014 Submission Date :13:06 Position of Interest: Name T itle County: If elected official, your current term ends? Have you contacted the Board or Commission of interest or visited their website to review the meeting schedule and to determine if you are able to meet their requirements? As an appointee or nominee of WSAC, you will represent the interests and positions of the Association and act in the best interests of all counties. You may be required to report back to the WSAC Board verbally or in writing, upon request, about activities and decisions of the Board or Commission on which you serve. Do you agree to these responsibilities? Statement of Interest - Why are you interested in serving on this Board or Commission? What specific expertise do you bring to the subject area(s)? State Board of Health James Jeffords County Commissioner Asotin County December Yes Yes I applied for this position 2 years ago and was one of three commissioners whose names were forwarded to the governor for consideration regarding the appointment. Jefferson County Commissioner Austin was re-appointed to the BOH just prior to the governor leaving office. I am still very interested in being appointed to the BOH board. I am currently the Chairman of the Asotin County Public Health District and have been a member of that board for nearly four years. I have been involved with WSALPHO and served as the volunteer chairman of the slowly emerging Local Board of Health Alliance. I am a member of the Foundational Public Health Policy Workgroup (appointed by Secretary of Health Wiesman) that has worked for nearly a year regarding the foundational aspects of public health in the state of Washington. We are hoping to approach the legislature early next year to make recommendations regarding fiscally sustainable public health policy and programs in Washington State. My work background has involved all aspects of human resources, vocational counseling, training, health and wellness administration and substance abuse counseling prior to becoming a county commissioner. 1 WSAC Board of Director's Meeting September 19, 2014 Page 44 of 121

46 I am finishing my first term as an Asotin County Commissioner and currently running unopposed for the District 3 Asotin County Commission seat... so I will be on the board another four years (ending December 2018). Thank you for the opportunity to be considered for this position. If recommended by WSAC and appointed by the governor... I will do my best to represent the interests of the Washington state Board of Health and the Washington State Association of Counties. 2 WSAC Board of Director's Meeting September 19, 2014 Page 45 of 121

47 Boards and Commissions - September 2014 Submission Date :48:49 Position of Interest: Name T itle County: If elected official, your current term ends? Have you contacted the Board or Commission of interest or visited their website to review the meeting schedule and to determine if you are able to meet their requirements? As an appointee or nominee of WSAC, you will represent the interests and positions of the Association and act in the best interests of all counties. You may be required to report back to the WSAC Board verbally or in writing, upon request, about activities and decisions of the Board or Commission on which you serve. Do you agree to these responsibilities? Statement of Interest - Why are you interested in serving on this Board or Commission? What specific expertise do you bring to the subject area(s)? State Board of Health Karen Valenzuela County Commissioner T hurston County December Yes Yes Before becoming a County Commissioner in early 2009, I was a public health worker for twenty years. I also used to serve as staff to the State Bd of Health, and so I'm very familiar with its duties and responsibilities. T he role of local Bd of Health is the part of the job of County Commissioner I enjoy the most. I'd be honored to serve as a member of the State Bd of Health. 3 WSAC Board of Director's Meeting September 19, 2014 Page 46 of 121

48 Resolution WHEREAS, the Washington State Association of Counties Board of Directors is charged with making recommendations and/or appointments to numerous Washington State boards, commissions, and committees, and WHEREAS, it is vital that county governments interests are fully represented on statewide boards, commissions and committees; and WHEREAS, there is a vacancy on the State Board of Health; and WHEREAS, the following Commissioners and Councilmembers have sought nomination for this vacancy: Rick Hughes, San Juan County Councilmember James Jeffords, Asotin County Commissioner Karen Valenzuela, Thurston County Commissioner NOW THEREFORE, BE IT RESOLVED, that the Washington State Association of Counties Board of Directors nominates the following WSAC Member(s) to the State Board of Health: BE IT FURTHER RESOLVED, that WSAC staff be directed to immediately transmit the nominee s name to the Office of the Governor of the State of Washington; and BE IT FURTHER RESOLVED, that WSAC staff is directed to contact the nominee(s) of their selection; and BE IT FURTHER RESOLVED, that applicants not selected be notified and thanked for their commitment and interest in representing county government. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 47 of 121

49 Resolution WHEREAS, the Washington State Association of Counties Board of Directors is charged with making recommendations and/or appointments to numerous Washington State boards, commissions, and committees, and WHEREAS, it is vital that county governments interests are fully represented on statewide boards, commissions and committees; and WHEREAS, there is a vacancy on the State Council on Aging; and WHEREAS, the following Commissioners and Councilmembers have sought nomination for this vacancy: Mike Backman, Wahkiakum County Commissioner NOW THEREFORE, BE IT RESOLVED, that the Washington State Association of Counties Board of Directors nominates the following WSAC Member(s) to the State Council on Aging: BE IT FURTHER RESOLVED, that WSAC staff be directed to immediately transmit the nominee s name to the Office of the Governor of the State of Washington; and BE IT FURTHER RESOLVED, that WSAC staff is directed to contact the nominee(s) of their selection; and BE IT FURTHER RESOLVED, that applicants not selected be notified and thanked for their commitment and interest in representing county government. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 48 of 121

50 September 19, 2014 TO: FROM: SUBJECT: WSAC Board of Directors and Alternates Eric Johnson, Executive Director Proposed Bylaw Amendment - Regarding Adoption of WSAC Legislative Agenda 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 provide 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 Board of Director's Meeting September 19, 2014 Page 49 of 121

51 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. The next step, as provided for by the WSAC Bylaws 3, is to distribute the proposed Bylaw Amendment 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 Board of Director's Meeting September 19, 2014 Page 50 of 121

52 September 19, 2014 TO: FROM: WSAC Board of Directors and Alternates Eric Johnson, Executive Director SUBJECT: Potential Non-Dues Revenue Opportunity Self Publishing Book in Partnership with Les Eldridge and Leeward Coast Press BACKGROUND For a number of years WSAC has worked to diversify its revenue by identifying non-dues revenue opportunities. Two work actions in the 2014 workplan target non-dues revenue opportunities that are linked to programs and services to members. Over the summer WSAC was contacted by former Thurston County Commissioner Les Eldridge regarding the potential partnership to develop and publish Closest to the People, A Pictorial History of the Thirty-nine Counties of Washington State. In part, as Counties way to honor and recognize the 125 th year of statehood (in 2014) and the role that County Government and our local county officials have played for the past 125 years. The concept is for this book to contain the following chapters and components: State-County Relations An introductory chapter describing the relationship between State and County governments, explaining the components of state goals carried out by counties among the many state-county mutual activities. This chapter will be easily excerpted for distribution to various audiences unfamiliar with typical statecounties relationships, including newly elected state legislators. City-County Relations Another introductory chapter will explain the relationship between cities and counties, again emphasizing shared provision of services. 39 Counties Each County will have a two to two and one half page chapter. Illustrations will include: The county flag in color, and a narrative on its symbolism. The county s bronze historical marker on the Arc of Statehood on North Capitol Lake, Olympia, replicated, describing the origin of the county name, date of creation, county seat, its salient features and the American Indian tribes within its borders, with further narrative. A county courthouse color photograph with a narrative describing its architectural style, its architect, the year it was built, and the history and, in some cases, the legends surrounding the building. Acknowledgements Washington State Association of Counties for its 107 years of supporting County Government. Washington Association of County Officials for their role in assisting independently elected officials. The Heritage Park Association for its role in creating and implementing the County Markers Project on North Capitol Lake. WSAC Board of Director's Meeting September 19, 2014 Page 51 of 121

53 Inaugural Ball Committee will be recognized for its assistance to the WSAC Flag Committee in producing the flags of the County Flag Project for the State Centennial. PUBLICATION PROCESS A print-on-demand process offered by lulu.com/publishbooks or blurb.com/pricing enables book production after a template development that delivers within two weeks of order. Seattle Media Lab will produce the books under contract with Leeward Coast Press, on behalf of WSAC, acting as publisher. ESTIMATED COSTS Initial template development and assembly costs are estimated at $1600. Estimation of the production cost of each 100 page book would total $22.00 to $24.00, with color illustrations, softcover, 8 by 10 with shipping included. Suggested book price: $30-$35. There is no book run, so there are no inventory storage costs. If the cost to produce is $24.00 and the cost to the customer is $30.00, WSAC would receive $6.00 per book. 267 books would need to be sold to amortize the cost of the WSAC investment before WSAC generated revenue. Clearly, there will be staff costs in the coordination, development, and review of the book. Mr. Eldridge has generously offered his time, experience, and expertise to lead this project and effort. EDUCATIONAL TOOL WSAC is constantly looking for educational and advocacy tools to help legislators and others understand the constitutional and statutory created responsibilities counties have to carry out state programs and services. THE AUTHOR Les Eldridge is author of five maritime historical novels and a maritime history of Puget Sound. He was elected to three terms as a Thurston County Commissioner, chaired the WSAC Legislative Steering Committee, served on the NACo Board of Directors and holds numerous county government awards, including NACo s Distinguished Service Award. Eldridge chaired the WSAC committee that managed the production of the 39 county flags in 1989, and he narrated the presentation of those flags to Governor Booth Gardner at the 1989 Inaugural Ball. He also initiated and oversaw implementation of the Heritage Park County Markers project for the North Capitol Campus Heritage Park Association, including fundraising from WSAC current and former members for interpretive signage. STAFF RECOMMENDATON Staff recommends, that the WSAC Board of Directors, authorize WSAC staff to move forward in the development of a self published book in partnership with former Thurston County Commissioner Les Eldridge and Leeward Coast Press as described herein. WSAC Board of Director's Meeting September 19, 2014 Page 52 of 121

54 Resolution # WHEREAS, WSAC is continuously working to diversify its revenue by identifying non-dues revenue opportunities; and WHEREAS, Two specific work actions in the 2014 WSAC Goals target the development of non-dues revenue opportunities associated with programs and services to members; and WHEREAS, Former Thurston County Commissioner Les Eldridge is interested in a potential partnership with WSAC to develop and publish Closest to the People, A Pictorial History of the Thirty-nine Counties of Washington State; and WHEREAS, such a book would assist in celebrating the role, history and importance of County government throughout the 125 year history of Washington state; and WHEREAS, Such a book can be a valuable educational and advocacy tool; NOW THEREFORE, BE IT RESOLVED that the Washington State Association of Counties Board of Directors authorizes WSAC staff to move forward in the development of a self published book in partnership with former Thurston County Commissioner Les Eldridge and Leeward Coast Press as described herein; and BE IT FURTHER RESOLVED that the WSAC Board of Directors direct WSAC staff to regularly apprise the officers and board members of implementation progress including content development, costs, and timelines. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 53 of 121

55 September 19, 2014 TO: FROM: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director WSAC Retro Pool & Safety Alliance Update ISSUE As has been reported to the WSAC Board of Directors, WSAC staff and the Executive Committee of the Select Retrospective Rating Program and the County Workplace Safety Alliance (also known as the WSAC Retro Pool) has been actively analyzing the program s future. Representatives of Counties and entities that participate in WSACs Select Retrospective Rating Program and the County Workplace Safety Alliance Program have met several times to consider a wide range of alternatives that could impact the programs future including closing the program, merging with another pool, simply contracting for third party claims administration to a complete revamping of the existing pool. For three straight Retro Pool years, (2010 $263,098, 2011 $214,587, and 2012 $206,699) WSACs Retro Program has had a premium assessment to member counties. Putting it as succinctly as possible, claims were greater than premiums, causing a premium assessment. RCW clearly states that if a: retrospective rating group is required to pay an additional net premium assessment in the third consecutive coverage period, that group shall be denied future enrollment in the state's retrospective rating plan. In addition, the sponsoring entity of the failed group may not sponsor another group in the same business or industry category for five coverage periods from the ending date of the failed group's last coverage period. WSAC has been advised by representatives of the Department of Labor and Industries that they are monitoring and aware that the WSAC Retro Pool is in the third year assessment status and is currently considered on probation until the 2012/2013 pool year closes in BACKGROUND Washington s Counties have two alternatives for workers compensation costs in the state of Washington. One is self-insurance and the other is state funded insurance. A self-insured entity is responsible for paying dollarfor-dollar the total cost of any claim. Entities in the state funded insurance plan pay a quarterly premium to the Washington State Department of Labor and Industries (L&I) to cover the insurance for employees workers compensation claims. Only entities participating in the state funded insurance program have an opportunity to participate in a Retrospective Rating Pool Plan (Retro). Counties Retro Pool Retrospective Rating (Retro) Plans are an optional program offered by L&I to allow employers the ability to recapture a portion of their workers compensation premiums. All retro plan rules and regulations are provided for in RCW 51 and WAC b and are administered by the Department of Labor and Industries. The Washington State Association of Counties (WSAC) offers a Retro Plan that can reward member counties, WSAC Board of Director's Meeting September 19, 2014 Page 54 of 121

56 special districts, cities and Regional Support Networks for maintaining a safe workplace and controlling workers' compensation costs. Depending on the plan year, if the group's claims costs are low, participants in that year can recoup refunds of premiums paid to L&I. However, if the group's claims costs are high, additional premiums may need to be paid to L&I. Since its inception in 1986, the WSAC Retro Plan members have received more than $4.9 million in refunds from L&I - an average of 10% of the group's standard premiums. It was generally believed by WSAC Retro Program members thought that the WSAC Retro Plan would continue to grow and provide ongoing savings for participating members. This may not be true and in fact under new guidelines, may not be possible. County Workplace Safety Alliance (CWSA) The CWSA allow members to realize the benefits of claims management and loss prevention services through a group purchase. Some counties opt out of the Retro Plan but utilize CWSA services to improve workplace safety and reduce costs. Other members use the services of CWSA to help them reduce losses and re-qualify for retro plan years and potential refunds. CWSA membership is a requirement for any employer wishing to participate in the WSAC Retro Plan. Historic Member Benefits Protection of Group Participation. The Retro Plan has reduced risk by establishing a reserve account to help offset assessment years. Training is offered at no extra cost to members and is available on-site and at regional meetings throughout the year. Conferences. The WSAC Retro Program offers an annual conference each year to members at no additional fee. The conference offers members an opportunity to network and share ideas, participate in training, as well as hear industry experts discuss current labor and industries issues. Program Coordinator. Washington State Association of Counties employs a Retro Program Coordinator to liaison between member agencies and the Department of Labor and Industries. The Coordinator provides current news updates and serves as a resource for member questions. Policy Library. The Retro Program manages a library of safety and accident prevention policies, and other resource materials available to all Retro Program members. Financial Aspects Members pay an enrollment and service fee of 6 percent of their quarterly L&I premiums to a third-party administrator (Sedgwick Claims Management Services) to participate in both the CWSA and the Retro Pool. This fee is in addition to the workers compensation premium paid to L&I. Current Participating Counties: Asotin Garfield Lincoln Pend Oreille Columbia Grays Harbor Mason Skamania Douglas Jefferson Okanogan Thurston Franklin Klickitat Pacific Wahkiakum Whitman Other Participating Entities: Ferndale School District Skagit Conservation District Tacoma/Pierce County Health District DISCUSSION As part of the annual Goals and Actions for 2013, WSAC initiated an RFP for administrator services for its WSAC Board of Director's Meeting September 19, 2014 Page 55 of 121

57 Retro Program. In identifying potential vendors, WSAC staff, with the input from Retro Program Advisory board members, approached the Association of Washington Cities with the potential to provide Retro program services to WSAC, including merging or assuming WSACs Retro Program. On March 24, 2014, WSAC staff met with AWC staff to receive and review a proposal for AWC to assume Counties Select Retrospective Rating Program and County Workforce Safety Alliance and in turn, briefed WSAC Retro Pool Executive Committee members. (ATTACHMENT 1) On May 13, 2014, WSAC retro pool members met to receive a presentation from Association of Washington Cities staff. After discussion, WSAC Retro Pool members provided a counter proposal to AWC for consideration which, in general was accepted by AWC. (ATTACHMENT 2) On August 8, 2014, WSAC received notification from AWC that their Retro Board had agreed, with certain parameters, to assume the Counties Select Retrospective Rating Program and County Workforce Safety Alliance. (ATTACHMENT 3) On September 3, 2014, representatives of the WSAC Retro Program Counties concurred that accepting the AWC proposal was in the best interest of the Counties, and to recommend to the WSAC Board of Directors to initiate termination of the WSAC Retro Pool and Safety Alliance, and complete negotiations with AWC to transition member counties interested in services to AWC. STAFF RECOMMENDATION Staff recommends accepting the recommendation of the representatives of the WSAC Retro Program Counties to initiate termination of the Counties Select Retrospective Rating Program and County Workforce Safety Alliance and complete negotiations with AWC to transition member counties interested in services to AWC and assume use of the "Safety Alliance" name for an agreed upon period and cost. WSAC Board of Director's Meeting September 19, 2014 Page 56 of 121

58 WSAC Board of Director's Meeting September 19, 2014 Page 57 of 121

59 March 24, 2014 To: From: Washington State Association of Counties Select Retrospective Rating Program & County Workplace Safety Alliance Association of Washington Cities Workers Compensation Retrospective Rating Program Contact: Brian Bishop Program Manager AWC Retro Program 1076 Franklin Street SE Olympia, WA Michael A. McCarty, AWC CEO Luann Hopkins, AWC COO, Director Member Pooling Programs Page 1 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 58 of 121

60 Executive Summary Thank you for the opportunity to present this proposal to provide claims administration and loss prevention services for the Washington State Association of Counties Select Retro Pool and Safety Alliance (WSAC). A retrospective rating plan is a plan that adjusts the insured s premium for the current policy period based on the insured s loss experience during the current period; paid losses or incurred losses may be used to determine loss experience. The purpose of a retrospective rating plan is to adjust the premium for guaranteed-cost insurance to reflect the insured organization s current losses. Rather than using industry-wide loss experience to determine premiums, a retrospective rating plan uses the insured organization s own losses from the current policy period to price the current policy period More than a decade ago, AWC formed the Workers Comp Retro Pool with the goal of providing topquality claims administration and loss prevention services to cities and towns. Over time, the pool of members has grown to include non-city local government entities, such as parks districts and transit agencies. AWC s mission to serve its members through advocacy, education, and services is the guiding principal behind the goal of creating the only local government specific workers compensation retro pool in Washington. In January 2013, AWC successfully transitioned the management of its Retro Program from an outside vendor to an exclusive in-house Retro program. AWC has expanded services to provide our members with the strongest and broadest menu of claims management capabilities. Through our depth of experience we have developed customized programs that combine the value of our claims management process, member focused loss prevention for the largest government retrospective rating pool in Washington. AWC s seasoned claims and loss prevention professionals in AWC Retro have been serving public entities for numerous years. We have the proven ability to integrate our services to meet the particular needs of WSAC Select Retro Pool and Safety Alliance members while achieving the most optimal results. Our experience in providing these services, our local presence, and information technology capabilities make us a logical partner for your unique program needs. We believe by combining our membership numbers to create the largest and strongest local government workers compensation pool in the state; members of both associations will benefit. Page 2 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 59 of 121

61 SECTION A. SUMMARY OF PROJECT 1. Purpose of Proposal The purpose of this proposal is to invite agreement to provide workers compensation services and program management to the members of WSAC Select Retro and Safety Alliance. AWC proposes to build on the successes of the Washington Counties Select Retro and Safety Alliance by merging the County program into AWC Retro. 2. Background Since July 1, 2005, WSAC has partnered with a third-party administrator to provide services to its members of the workers compensation program. County and local government operations and employees are unique in their nature. Government entities have specific operations unlike those of the private sector. AWC s Retro program is uniquely qualified to provide service to similar local government entities such as counties because we are similar in our goals, operations, and the public that we jointly serve. 3. Project Scope The Washington State Association of Counties seeks analysis and recommendations for the management of their current workers compensation program. The proposal requires the following elements and objectives: Objective A: Claims Staff Review and respond to claims information from the Department of Labor and Industries (L&I). o Verify worker eligibility. o Oversee and ensure accuracy of claim validity determination and compensability of claims are paid by L&I as prescribed by Workers Compensation laws and rules. o Ensure L&I processes timely and accurate payment of benefits to workers. Assist injured workers with their claims questions and understanding claim processes. o Review assigned files and develop, initiate, and follow through on plans of action in working with L&I on claim issues. Investigate and obtain medical reports and other information required to oversee claims. o Ensure timely process of all claims documents. o Ensure employer s portion of the Report of Accident with investigative findings and recommendations are sent to the Department of Labor and Industries in a timely manner. Maintain claims files in an orderly, acceptable manner. o Update claims data and other pertinent information in automated claims tracking systems. o Review all time loss, loss of earning power, and PPD payments for accuracy. o Ensure full compliance with all policies and workers compensation laws and rules. o Provide regular feedback to members through formal and informal reporting systems. Page 3 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 60 of 121

62 Communicate regularly with L&I and providers on claims status and medical/return-to-work progress. o Monitor cost estimates on claim case reserve amounts set by L&I. o Communicate with all interested parties including legal counsel, medical providers, L&I, injured workers, and others as needed to coordinate claim activities. o Follow-up contacts with care providers and others as indicated by the claim. Provide cost containment services. o Control claims costs by utilizing tools and promptly identifying and coordinating referral of claims with potential need for specialized cost containment services, such as L&I s Third Party Recovery, Return-to-Work, and Vocational Rehabilitation. o Assist in identifying eligible worksite modification expenses from state funds available for worksite modification purposes under the specific claim. o Assist in application for reimbursements under L&I s Stay at Work program, including submitting and filling out all necessary documents. Track claims issues until claim is no longer has a financial impact to the employer or pool. o Take action to resolve claims through working with L&I for successful closure. o Protest/Appeal claims as necessary. Pursue shared liability, second injury fund, and subrogation actions by working with L&I on these issues. Objective B: Retro Pool Management Manage and track the Retrospective Rating Plan at the Department of Labor and Industries and maintain claims to maximize success within the Retro period. Analyze, forecast, and report to members the effects of workers compensation experience rating and feasibility of continuing the Retrospective Rating Plan. Create and administer Return-to-Work programs where feasible; light duty jobs and tasks for injured workers appropriate for this unique group of workers. Analyze loss results and report the data to members to assist in financial and further loss prevention decisions. Objective C: Loss Prevention Identify and report early trends to alert members of emerging loss activity. Interpret data and develop action plans to address the issues. Analyze loss results and report to members to assist in financial and further loss prevention decisions. Provide industry specific training to members through the AWC Retro Safety Academy. 4. Cost proposal AWC Retro Operarting Policy No. 3 Non-City Membership consists of criteria that must be met in order for a county to be consdiered for entrance to the AWC Retro Program: Section 1. Includes criteria that must be met for an entity to apply. Additional factors that the AWC Board Executive Committee may consider when reviewing new applicants. Page 4 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 61 of 121

63 Section 2. Includes criteria that must be met by the non-city entity once the AWC Board Executive Committee approves its membership application. Section 3. Includes financial impacts to the non-city entity. 1. Application Criteria: A current city member of the AWC must sponsor the non-city entity. (Staff recommends this requirement be waived for Option A). The non-city entity must have an agreement with a member city or cities to provide services that are traditionally provided by a city or town. (Staff recommends this requirement be waived or Option A) The non-city entity would have had a positive impact on the Pool s performance for two out of the last three consecutive years. The non-city entity must have an active Return to Work program and/or policy. The non-city entity must have an established employee safety committee. The non-city entity must have established safety policies. The non-city entity must have at least $20,000 in annual standard premium as provided by Department of L&I on Table A, Premium and Loss History. The non-city entity must provide a release of claims experience to AWC. The non-city entity must apply for membership in the Retro program a minimum of one (1) month prior to the quarterly L&I deadline to ensure adequate time for consideration by the AWC Board Executive Committee. The AWC Board Executive Committee may at any time, impose a moratorium on the submission of non-city applicants. If the above criteria have been met, the non-city entity s application will be reviewed by the AWC Board Executive Committee for approval/denial. The AWC Board Executive Committee may also consider the following when reviewing applications: Will enrollment of the non-city entity to the AWC Retro program aid a member city or cities in fostering community partnerships, coalitions and collaborations. 2. Once approved, the non-city entity must abide by the following criteria: The approved non-city entity must adhere to the AWC Retro Program philosophy. In support of this, the following requirements must be met: 1. The entity must sign the Participation Agreement and Group Enrollment Application. 2. The entity must execute the L&I Application for Group Membership. 3. At least one member of the entity must attend an AWC Retro training each year. Other related and approved training may be substituted to meet this requirement. Non-city entities are not eligible to serve on the Retro Program Advisory Committee. Page 5 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 62 of 121

64 A non-city entity s membership may be terminated at the end of a policy year by the AWC Board Executive Committee with a minimum of a 2 months notice. 3. Financial Impacts Upon AWC Board Executive Committee approval of membership, the non-city entity will be charged a 7.0% program administration fee. The above rates are subject to review and/or change by the AWC Board Executive Committee at any time. SECTION B. ANALYSIS AND RECOMMENDATION 1. Analysis In January of 2011, L&I implemented changes known as new Retro which changed the calculation of the retro premium affecting refunds and assessments of all retro participants. Consequently, new retro essentially forced smaller retro groups and individual retro participants to evaluate their plan choices, dissolve their group, or move into a larger group. Workers compensation retrospective claims pooling is an endeavor that is successful within the definition of law of large numbers. What this means is that the larger the number of exposure units independently exposed to loss, the greater the probability that actual loss experience will equal expected loss experience. In other words, the credibility of data increases with the size of the data pool. According to the latest L&I report, the standard premium for WSAC Select Retro Pool was $3.6 million. It is known among the Retro community that the larger the pool, the greater is the chance for a pool to receive a refund. Retro pools under $4.6 million in retro premium have little chance for refund, and great possibility of an assessment under new retro calculations. In contrast, AWC Retro currently operates with a membership of 101 cities, towns, and other local government entities. Total group standard premium for 2013 is estimated at $12.3 million and projected standard premium for 2014 of $13.3 million. Since inception AWC Retro has earned refunds in seven of its last nine retro adjustments, representing refunds of approximately 10% of the group standard premium. The AWC Retro Pool has experienced two assessments resulting additional premium collected from members whose claims experience had a negative impact to the group. The most recent group assessment is directly related to one low frequency, high severity duty-death related claim. The larger the pool, the greater chance to achieve a retrospective refund. For this reason, we conclude WSAC Retro Select members would benefit from combining their $3.6 million in premium with the AWC Retro Pool s $13.3 million in premium, rather than attempting to achieve refund status as a stand-alone pool. Washington Administrative Code B-730 provides, if a sponsored group receives a net assessment for two consecutive coverage periods, that group will be placed on probationary status. If a sponsored group receives a net assessment in the following coverage period, that group will be Page 6 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 63 of 121

65 denied future enrollment, and the sponsoring organization will not be allowed to sponsor another group in the same industry category for the five years following the third coverage period with a net assessment. WSAC Select Retro anticipates a third consecutive assessment for the 2013 coverage period. To determine the best solution for WSAC Select Retro and Safety Alliance, we analyzed data of approximately 340 claims per year for a three-year period to find the following results: Fiscal Year Ending 6/30 3 Year Developed Losses 3 Year Standard Average Employer Premium Loss Ratio Asotin County , , Columbia Combined , , Douglas County , , Franklin County , , Garfield County , , Grays Harbor County ,422, ,330, Jefferson County , , Klickitat County , , Lincoln County , , Mason County ,228, ,494, Okanogan Combined , ,476, Pend Oreille County , , Pacific County , , Skagit Conservancy District , , Skamania County , , Tacoma-Pierce HD , , Thurston County ,536, ,377, Wahkiakum County , , Whitman County , , TOTALS ,208, ,730, Option A 2. Recommendation Given the potential consequences of a third consecutive retro assessment, consideration and analysis of all claim and premium data received from L&I for the Select Retro and Safety Alliance members, AWC Retro recommends 1.) The following entities merge into the AWC Retro pool: Employer Loss Ratio Asotin County 5.86% Columbia County 41.80% Douglas County % Garfield County 72.30% Page 7 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 64 of 121

66 Jefferson County 45.20% Klickitat County % Lincoln County 44.20% Okanogan County % Skagit Conservancy District 2.70% Skamania County 91.90% Tacoma-Pierce County Health District 33.20% Wahkiakum County 8.80% Whitman County % Average 45.40% And; 2) AWC Retro in Operating Policy No. 4 offers service only membership for those WSAC Retro Select member employers that currently do not meet AWC Retro underwriting criteria. The service only program offer non-retro AWC member jurisdictions or poorly performing AWC Retro members the ability to have professional claims management and loss prevention services without sharing in the risk/reward of participating in the AWC Workers Compensation Retrospective Rating Pool. The following WSAC Retro Select members are recommended for membership in the AWC Retro Program Service-Only Program: Ferndale School District Franklin County Grays Harbor County Mason County Pacific County Pend Oreille County Thurston County AWC Retro Operating Policy No. 4 Service-Only Program Public Entity Risk Pooling A public entity risk pool is a cooperative group of governmental entities joining together to finance an exposure, liability, or risk. Actual losses and financial liabilities are shared among the membership according to agreed-upon formulas. Risk pool members are accountable to the pool as a whole; understanding how their action may affect the overall success of the pool. Mission and Goals It is the mission of the Association of Washington Cities Workers Compensation Retrospective Rating Program (AWC Retro) to provide for its members: access to the benefits of retrospective rating allowed under rules of the Washington State Department of Labor and Industries (L&I); professional management of all L&I claims; proactive risk management; and Page 8 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 65 of 121

67 a forum for innovative techniques in risk reduction It is the goal of the AWC Retro program; for all members to attain a.75 experience rating from L&I; and to attain rate stability and financial certainty to the extent possible under the L&I rating system To assist in achieving the mission and goals of AWC Retro, the Service-Only Program policy was approved by the AWC Board Executive Committee on November 21, The AWC Board Executive Committee has the authority to change this policy at any time. Service-only Program The Service-Only Program offers non-retro AWC member jurisdictions or poorly performing Retro members the ability to have professional claims management and loss prevention services without sharing in the risk/reward of participating in the AWC Workers Compensation Retrospective Rating Pool. The Service-Only program begins January AWC member jurisdictions ineligible for the Retro Pool due to size or loss ratio would be eligible for the Service-Only Program. Current Pool members whose loss ratio negatively affects the pool, based upon the criteria for service-only members for a total of three or more consecutive years could also be placed into the Service-Only Program as a probationary measure, for a minimum period of one year. Once the member s loss ratio is positively affecting the pool, the Service-Only member would be allowed to request re-entry into the Retro Pool. Service-Only Program members are required to pay program fees of 6.5% of premium to join the Service-Only Program. Service-Only Program members do not participate in the good performance rebate. Service-Only members are not allowed to serve on the Retro Advisory Committee Criteria for Service-Only members entrance into the Retro Pool: The member would have had a positive impact on the pool s performance for two out of the last three consecutive years. The member must have an active Return to Work program and/or policy. The member must have an established employee safety committee. The member must have established safety policies. The member must have at least $20,000 in annual standard premium as provided by Department of L&I on Table A, Premium and Loss History. Page 9 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 66 of 121

68 The member must apply for membership in the Retro program a minimum of one (1) month prior to the quarterly L&I deadline to ensure adequate time for consideration by the AWC Program Manager. If the above criteria have been met, the member s application will be reviewed by the Retro Advisory Committee for approval/denial. Once approved, the Service-Only member must abide by the following criteria: The approved member must adhere to the AWC Retro Program philosophy. In support of this, the following requirements must be met: 1. The member must sign the Participation Agreement. 2. The member must execute the L&I Application for Group Membership. 3. The member must have one Retro Safety Academy graduate on staff within one year upon entering the pool. Appeal Procedures When there is an impasse between a member of the pool and a decision of the advisory committee regarding suitability for membership in the pool, the member has the right to appeal the decision to the AWC Board Executive Committee/Retro Board. The appeal must be submitted to the AWC CEO or program director, in writing, setting forth the reason(s) for which the appeal is requested. The appeal must be submitted within ten (10) days after receipt of the decision being appealed. The AWC CEO or program director will submit the written appeal to the AWC Board Executive Committee/Retro Board within ten (10) days of receipt of written appeal. The AWC Board Executive Committee/Retro Board will issue a written decision within fifteen (15) days from receipt of written appeal. The AWC Board Executive Committee/Retro Board s decision shall be final. Option B Individual counties may apply for membership with the AWC Retro Program pursuant to AWC Retro Operating Policy No. 3 Non-City Membership, and Operating Policy No. 4 Service-Only Program. Copies of the above-mentioned policies are included with this proposal. SECTION C. CAPACITY AND IMPLEMENTATION 1. Capacity The Association of Washington Cities, established in 1933 is a 501c4 non-profit corporation serving all of Washington s 281 cities and towns. The AWC has a long and successful history of managing member pooling programs, including the Risk Management Service Agency, property & liability risk Page 10 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 67 of 121

69 pool; the Employee Benefit Trust, health insurance risk pool; and the Drug & Alcohol Testing Consortium. In addition to staff allocations noted below, AWC offers the following: Professional Leadership Team Accounting Services Administrative Services Marketing and Communications State-of-the-Art Claims Management System Internal IT staff AWC Retro is staffed to meet all the needs of program members o Claim prevention, investigation, management, vocational rehabilitation, closure, protest and appeals o Dedicated staff to handle time loss, occupational disease, and high level medical only claims. o Claims Coordinator carries an average open claim caseload of less than 100 claims o Loss Prevention Coordinator and Loss Prevention Analyst o Retro Safety Academy STAFF ALLOCATIONS: Title Program Manager Claims Coordinator Claims Coordinator Percent of Time Allocated to Duties Project Operations and Management of Retro Pool and Service-Only Program 25% 13 Years of experience Management of time loss, occupational disease disorders, and high level medical only claims. 10% 38 Management of time loss, occupational disease disorders, and high level medical only claims. 100% TBD Medical only claim examiner and coordinator for stay at work reimbursements. 25% 1.5 Claim Analyst/Stay at Work Coordinator Loss Prevention Coordinator Loss prevention training and onsite audits. 10% 14 Loss Prevention Analyst Loss prevention training and onsite audits. 50% TBD 2. Implementation The implementation process includes acceptance of this proposal, and the timeline. Timeline: Page 11 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 68 of 121

70 o Proposal presented to WSAC March 24, 2014 o Acceptance and approval by WSAC Retro Board by April 10, 2014 o Presentation to AWC Board Executive Committee (Retro Board) April 18, 2014 o Upon AWC Retro Board approval, WSAC notifies its members by April 30, 2014 o AWC Retro staff contacts individual counties with invitation to join AWC Retro Pool or Service Only Program by May 30, 2014 o Application deadline to Labor & Industries June 1, 2014, for July 1, 2014 date of entry to AWC Retro Pool and Program Page 12 of 12 WSAC Board of Director's Meeting September 19, 2014 Page 69 of 121

71 AWC Workers Comp Retro Program Non-City Membership Operating Policy No. 3 Public Entity Risk Pooling A public entity risk pool is a cooperative group of governmental entities joining together to finance an exposure, liability, or risk. Actual losses and financial liabilities are shared among the membership according to agreed-upon formulas. Risk pool members are accountable to the pool as a whole; understanding how their actions may affect the overall success of the pool. Mission and Goals It is the mission of the Association of Washington Cities Workers Compensation Retrospective Rating Program (AWC Retro) to provide for its members: access to the benefits of retrospective rating allowed under rules of the Washington State Department of Labor and Industries (L&I); professional management of all L&I claims; proactive risk management; and a forum for innovative techniques in risk reduction It is the goal of the AWC Retro program; for all members to attain a.75 experience rating from L&I; and to attain rate stability and financial certainty to the extent possible under the L&I rating system To assist in achieving the mission and goals of AWC Retro, the non-city member policy was approved by the AWC Board Executive Committee on November 21, The AWC Board Executive Committee has the authority to change these criteria at any time. Non-City Entity Entrance Criteria The Non-City Entity Entrance Criteria consists of the 3 sections listed below. The criteria listed in each section must be met in order for the non-city entity to be considered for entrance to the AWC Retro program. Section 1. Includes criteria that must be met for an entity to apply. Additional factors that the AWC Board Executive Committee may consider when reviewing new applicants. Section 2. Includes criteria that must be met by the non-city entity once the AWC Board Executive Committee approves its membership application. WSAC Board of Director's Meeting September 19, 2014 Page 70 of 121

72 Section 3. Includes financial impacts to the non-city entity. 1. Application Criteria: A current city member of the AWC must sponsor the non-city entity. The non-city entity must have an agreement with a member city or cities to provide services that are traditionally provided by a city or town. The non-city entity would have had a positive impact on the Pool s performance for two out of the last three consecutive years. The non-city entity must have an active Return to Work program and/or policy. The non-city entity must have an established employee safety committee. The non-city entity must have established safety policies. The non-city entity must have at least $20,000 in annual standard premium as provided by Department of L&I on Table A, Premium and Loss History. The non-city entity must provide a release of claims experience to AWC. The non-city entity must apply for membership in the Retro program a minimum of one (1) month prior to the quarterly L&I deadline to ensure adequate time for consideration by the AWC Board Executive Committee. The AWC Board Executive Committee may at any time, impose a moratorium on the submission of non-city applicants. If the above criteria have been met, the non-city entity s application will be reviewed by the AWC Board Executive Committee for approval/denial. The AWC Board Executive Committee may also consider the following when reviewing applications: Will enrollment of the non-city entity to the AWC Retro program aid a member city or cities in fostering community partnerships, coalitions and collaborations. 2. Once approved, the non-city entity must abide by the following criteria: The approved non-city entity must adhere to the AWC Retro Program philosophy. In support of this, the following requirements must be met: 1. The entity must sign the Participation Agreement and Group Enrollment Application. 2. The entity must execute the L&I Application for Group Membership. 3. At least one member of the entity must attend an AWC Retro training each year. Other related and approved training may be substituted to meet this requirement. Non-city entities are not eligible to serve on the Retro Program Advisory Committee. A non-city entity s membership may be terminated at the end of a policy year by the AWC Board Executive Committee with a minimum of a 2 months notice. 3. Financial Impacts Upon AWC Board Executive Committee approval of membership, the non-city entity will be charged a 7.0% program administration fee. The above rates are subject to review and/or change by the AWC Board Executive Committee at any time. WSAC Board of Director's Meeting September 19, 2014 Page 71 of 121

73 AWC Workers Comp Retro Program Service-Only Program Operating Policy No. 4 Public Entity Risk Pooling A public entity risk pool is a cooperative group of governmental entities joining together to finance an exposure, liability, or risk. Actual losses and financial liabilities are shared among the membership according to agreed-upon formulas. Risk pool members are accountable to the pool as a whole; understanding how their action may affect the overall success of the pool. Mission and Goals It is the mission of the Association of Washington Cities Workers Compensation Retrospective Rating Program (AWC Retro) to provide for its members: access to the benefits of retrospective rating allowed under rules of the Washington State Department of Labor and Industries (L&I); professional management of all L&I claims; proactive risk management; and a forum for innovative techniques in risk reduction It is the goal of the AWC Retro program; for all members to attain a.75 experience rating from L&I; and to attain rate stability and financial certainty to the extent possible under the L&I rating system To assist in achieving the mission and goals of AWC Retro, the Service-Only Program policy was approved by the AWC Board Executive Committee on November 21, The AWC Board Executive Committee has the authority to change this policy at any time. Service-Only Program The Service-Only program offers non-retro AWC member jurisdictions or poorly performing Retro members the ability to have professional claims management and loss prevention services without sharing in the risk/reward of participating in the AWC Workers Compensation Retrospective Rating Pool. The Service-Only program begins January AWC member jurisdictions ineligible for the Retro Pool due to size or loss ratio would be eligible for the Service-Only Program. Current Retro Pool members whose loss ratio negatively affects the pool, WSAC Board of Director's Meeting September 19, 2014 Page 72 of 121

74 based upon the criteria for service-only members for a total of three or more consecutive years could also be placed into the Service-Only Program as a probationary measure, for a minimum period of one year. Once the member s loss ratio is positively affecting the pool, the Service-Only member would be allowed to request re-entry into the Retro Pool. Service-Only Program members are required to pay program fees of 6.5% of premium to join the Service-Only Program. Service-Only Program members do not participate in the good performance rebate. Service-Only members are not allowed to serve on the Retro Advisory Committee. Criteria for Service-Only members entrance into the Retro Pool: The member would have had a positive impact on the pool s performance for two out of the last three consecutive years. The member must have an active Return to Work program and/or policy. The member must have an established employee safety committee. The member must have established safety policies. The member must have at least $20,000 in annual standard premium as provided by Department of L&I on Table A, Premium and Loss History. The member must apply for membership in the Retro program a minimum of one (1) month prior to the quarterly L&I deadline to ensure adequate time for consideration by the AWC Program Manager. If the above criteria have been met, the member s application will be reviewed by the Retro Advisory Committee for approval/denial. Once approved, the Service-Only member must abide by the following criteria: The approved member must adhere to the AWC Retro Program philosophy. In support of this, the following requirements must be met: 1. The member must sign the Participation Agreement. 2. The member must execute the L&I Application for Group Membership. 3. The member must have one Retro Safety Academy graduate on staff within one year upon entering the pool. Appeal Procedures When there is an impasse between a member of the pool and a decision of the advisory committee regarding suitability for membership in the pool, the member has the right to appeal the decision to the AWC Board Executive Committee/Retro Board. The appeal must be submitted to the AWC CEO or program director, in writing, setting forth the reason(s) for which the appeal is requested. The appeal must be submitted within ten (10) days after receipt of the decision being appealed. The AWC CEO or program director will submit the written appeal to the AWC Board Executive Committee/Retro Board within ten (10) days of receipt of written appeal. The AWC Board Executive Committee/Retro Board will issue a written decision within fifteen (15) days from receipt of written appeal. The AWC Board Executive Committee/Retro Board s decision shall be final. WSAC Board of Director's Meeting September 19, 2014 Page 73 of 121

75 ~Washington State liii Association of Counties May 28, 2014 Mike McCarty, Chief Executive Officer Association of Washington Cities 1076 Franklin Street Southeast OLympia, Washington Re: Washington State Association of Counties Select Retrospective Rating Program a County WorkpLace Safety Alliance Dear Mike: First, Let me thank you for your consideration and thoughtful approach for the Association of Washington Cities proposal to assume the Washington State Association of Counties Select Retrospective Rating Program a County Workplace Safety Alliance. After receiving AWC s initial proposal during March 2014, WSAC held a series of meetings to discuss the elements of the proposal. On Tuesday, May 12, 2014 members of the Washington State Association of Counties Select Retrospective Rating Program a County Workplace Safety Alliance held their annual meeting in Yakima. Brian Bishop from Association of Washington Cities was present to discuss AWCs proposal and answer questions. During this meeting county representatives believed that terminating the Washington State Association of Counties Select Retrospective Rating Program a County WorkpLace Safety Alliance and merging with the AWC program would be desirable with the following conditions: - Two (2) county members added to the AWC Retro a Safety ALLiance Advisory Committee. - Safety ALtiance name and branding rent or royalties of $30,000 provided to WSAC AnnualLy. - Revision to the non-city Retro fee from 7% to 6.5%. - EstabLish written criteria to determine who may or may not participate in the pool now and in the future. - Invitation to regularly scheduled meetings with the full AWC Retro/Service OnLy member group. - ALLow WSAC to continue to have a role in the pool membership by providing at Least one county pool membership meeting annually to be coordinated with WSAC. This WSAC Board of Director's Meeting September 19, 2014 Page 74 of 121

76 meeting can be used to discuss the activities of the AWC program as well as elect the members to the two (2) AWC Advisory Committee (County) seats. If AWC approves these considerations the County members voted to go back to their counties and recommend joining the AWC SeLect Retro program and/or the AWC Service OnLy program. The following materials would be needed to present to their boards for information and approval. - Final AWC proposal - AWC Membership Agreement and EnroLLment AppLication - Summary of the WSAC Retro Program and AWC Retro Program to include the benefits of staying in a pool. The group then discussed the steps necessary and identified a potential schedule to move the WSAC program to AWC: o May 28, 2014 Considerations for participation provided to AWC o August 1, Approved AWC proposal, agreement and information sheet to counties o September 19, WSAC Board of Director s meeting discussion and approval o October 15, day notice provided to Sedgwick for third party agreement termination o December 15, Join date for AWC Select Retro & Safety ALLiance FinalLy, I want to again thank you for you and your staff support of working with us to find a retro program solution. Please do not hesitate to contact me or Karlyn Shannon if you have any questions. Thank you, E c o nson, Executive Director Washington State Association of Counties WSAC Board of Director's Meeting September 19, 2014 Page 75 of 121

77 August 8, 2014 Eric Johnson, Executive Director Washington State Association of Counties 206 Tenth Avenue SE Olympia, WA Re: Washington State Association of Counties Select Retrospective Rating Program & County Workplace Safety Alliance Dear Eric: Thank you for your May 28, 2014 letter responding to AWC s initial proposal to assume the Counties Select Retrospective Rating Program and County Workforce Safety Alliance. The AWC Retro Board met on Monday, August 4 to discuss your counter proposal and directed that I offer the following in response: The Non-city AWC Retro fee will remain at 7%; however during 2015 and 2016, the fee will be 6.5% up front with the additional.5% for each of these years deducted from future refunds. One (1) county member to be added to the AWC Retro Advisory Committee. Counties will nominate three (3) county retro representatives for consideration by the AWC Retro Board. The AWC Retro Board is the appointing authority. AWC will pay WSAC $30,000 per year for a period of three (3) years as a royalty fee for the use of the "Safety Alliance" name. The royalty will be paid by AWC to WSAC for a period of three (3) years, beginning in 2015, and is subject to AWC receiving a minimum aggregate L&I premium of $3 million. Counties desiring to join the AWC Retro Program shall comply with Operating Policy No. 3 that spells out the criteria to determine who may or may not participate in the Retro Program. AWC Retro will schedule regular meetings of the membership, including service-only members. WSAC will continue to have a role in the pool membership by attending at least one annual meeting coordinated jointly by AWC and WSAC. The AWC Retro Board waives the requirement to obtain sponsorship and agreement with a city within the county service area for those counties entering the program under this proposal. Additionally, AWC staff will facilitate enrollment and presentation to potential county members. AWC staff agrees with the timeline presented in the May 28, 2014 counter proposal. We look forward to working with you on this mutually beneficial partnership. Sincerely, Michael A. McCarty Chief Executive Officer Association of Washington Cities WSAC Board of Director's Meeting September 19, 2014 Page 76 of 121

78 Resolution # WHEREAS, The Washington State Association of Counties has managed a Select Retrospective Rating Program and the County Workplace Safety Alliance Program to benefit member counties since 1986; and WHEREAS, Since 1986, the Select Retrospective Rating Program provided over $4.8 million in refunds; and WHEREAS, For three straight Retro Pool years, (2010 $263,098, 2011 $214,587, and 2012 $206,699) WSACs Retro Program has had a premium assessment to member counties; and WHEREAS, RCW clearly states: retrospective rating group is required to pay an additional net premium assessment in the third consecutive coverage period, that group shall be denied future enrollment in the state's retrospective rating plan. In addition, the sponsoring entity of the failed group may not sponsor another group in the same business or industry category for five coverage periods from the ending date of the failed group's last coverage period. ; and WHEREAS, WSAC staff, with the input from Retro Program Advisory board members, approached the Association of Washington Cities with the potential to provide Retro program services to WSAC, including merging or assuming WSACs Retro Program; and WHEREAS, The Association of Washington Cities (AWC) has provided the proposed framework for assuming WSACs Select Retrospective Rating Program and the County Workplace Safety Alliance Program; and WHEREAS, representatives of counties participating in the WSAC Select Retrospective Rating Program and the County Workplace Safety Alliance Program Retro Program recommend accepting the AWC proposal and recommend to the WSAC Board of Directors to initiate termination of the WSAC Select Retrospective Rating Program and the County Workplace Safety Alliance Program and complete negotiations with AWC to transition member counties interested in services to AWC. NOW THEREFORE, BE IT RESOLVED, that the WSAC Board of Directors approve the termination of the WSAC Select Retrospective Rating Program and the County Workplace Safety Alliance Program; and BE IT FURTHER RESOLVED, that the WSAC Board of Directors direct staff, working with the advice of the Retro Program officers, complete negotiations with AWC to transition member counties interested in services to AWC; and BE IT FURTHER RESOLVED, the WSAC Board of Directors authorizes the Association of Washington Cities to assume all rights to the use of the "Safety Alliance" name for agreed upon period and cost; and BE IT FURTHER RESOLVED, the WSAC Board of Directors express our sincere appreciation to the Association of Washington Cities for their partnership and cooperation. Approved by the Board of Directors of the Washington State Association of Counties on September 19, Helen Price Johnson, WSAC President Stephanie Wright, WSAC Secretary Treasurer WSAC Board of Director's Meeting September 19, 2014 Page 77 of 121

79 Staff Reports WSAC Board of Director's Meeting September 19, 2014 Page 78 of 121

80 September 19, 2014 TO: FROM: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Executive Director Report WSAC Executive Board Annual Planning Meeting For the ninth year in a row, WSAC Executive Board, comprised of WSAC President, Vice President, Secretary Treasurer, and Immediate Past President met in early August in the President s home county. This annual planning meeting gives the WSAC officers the chance to: Review in depth progress on goals and actions; Review organizational performance and personnel issues; Develop their proposal for the next year s operating budget including dues, revenue, and expenditures; Review proposed next year s operating budget goals and actions. WSAC Elections WSAC Officers, WSAC Board of Directors, NACo Board of Directors, WIR Board of Directors On Tuesday, September 23, 2014, the candidate filing period for a number of WSAC and NACo positions began. WSAC distributed a solicitation to WSAC membership with online application/nomination information for the following positions: WSAC Positions WSAC President: David Sauter, Klickitat County Commissioner WSAC Vice President Stephanie Wright, Snohomish County Councilmember WSAC Secretary Treasurer Open to a Eastern Region Active Member Four Eastern Region Representatives Four Western Region Representatives Two Eastern Region Alternates Two Western Region Alternates NACo Positions NACo Board of Directors, Automatic Position, 2 Year Term NACo Board of Directors, Top 12 Position, 2 Year Term NACo Western Interstate Region Board of Directors, Counties above 180,000 population, 2 Year Term NACo Western Interstate Region Board of Directors, Counties below 180,000 population, 2 Year Term The complete 2014 Annual WSAC Election Timeline is attached. National Association of Counties Nearly 30 Washington State county elected and appointed officials representing 13 Washington State counties joined more than 2,500 elected and appointed county officials, exhibitors, presenters, and guests from across the country at the National Association of Counties' (NACo) Annual Conference in Orleans Parish, Louisiana. WSAC Board of Director's Meeting September 19, 2014 Page 79 of 121

81 Conference attendees also heard from incoming NACo President Riki Hokama, Councilmember, Maui County, Hawaii. President Hokama told Washington State conference delegates that his top priorities is to reauthorize MAP-21, a surface transportation bill, and to secure funding for the Highway Trust Fund, said Hokama. My Presidential Initiative is also flexible enough to include other transportation and infrastructure issues such as airports, technology and hospitals. There is a significant need to re-invest in America. For , WASC was 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 will be conducted this fall watch for the announcement! Washington State is currently represented on the NACo Board of Directors by: King County Councilmember Jane Hague (past NACo President) Skagit County Commissioner Ken 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. WSACs representatives on the Western Interstate Region (WIR) Board of Directors: Chelan County Commissioner Ron Walter Spokane County Commissioner Todd Mielke Incoming NACo President Riki Hokama appointed a number of WSAC/WACO members to leadership positions including: Chelan County Commissioner Ron Walter, Chair, Public Lands Steering Committee Skagit County Commissioner Kenneth Dahlstedt, Vice Chair, Health Steering Committee and Vice Chair, Rural Action Caucus Spokane County Human Resources Director, Cathy Malzahn, Vice Chair, NACo Deferred Compensation Advisory Committee Franklin County Commissioner, Rick Miller, Vice Chair, Land and Solid Waste Subcommittee Snohomish County Councilmember Dave Somers, Chair, Water Quality Subcommittee King County Assessor Lloyd Hara, Vice Chair, Telecommunications & Technology Steering Committee Several Washington State Counties were recognized for program innovation and service including: King County eappeals On-Line Property Assessment Appeals Program Kitsap County Public Records Request Workflow Automation Solution Pierce County First To See Emergency Support System: The Power to See, Share, and Help * Live Chat and Self-Scheduling Tools for District Court (Best in Category) Attached is a complete list of NACo Steering Committee Members from Washington State. To view the recently adopted NACo Platform and Policies view: WSAC Board of Director's Meeting September 19, 2014 Page 80 of 121

82 WSAC coordinated attendance at the September PILT Fly-In. Kittitas County Commissioner Gary Berndt and Whatcom County Councilmember Pete Kremen are representing Washington State along with elected officials of 15 other western states. Western Interstate Region Conference Pre-Summit The WIR Pre-Summit was conducted in Bellevue, Washington May WSAC assisted NACo and the California State Association of Counties in event planning and coordinating some speakers. The Western Interstate Region Conference was held in Anchorage Borough, Alaska, May 20-23, Along with WSAC Policy Director Laura Merrill, WSAC members on the WIR Board, Commissioner Ron Walter and Commissioner Todd Mielke attended the board meeting and heard presentations by the local Alaska BLM state director, US Forest Service Regional Forester as well as Bureau of Land Management and US Forest Service liaisons to NACo. Several WSAC members participated in the Public Lands Steering Committee meeting as well. Key workshops included "Made in Rural America" and "Innovation in Rural Economic Development". Our members participated in local field workshops associated with economic development, behavioral health and criminal justice. Large Urban County Caucus Seattle, October 2015 Councilmember Hague is leading the planning effort that is bringing NACo s annual Large Urban County Caucus annual meeting to King County. WSAC is providing assistance as needed. Governor Inslee WSAC joined Governor Inslee and officers of the Association of Washington Cities in signing a joint letter supporting the Marketplace and Internet Tax Fairness Act of 2014, (attached) The WSAC Executive Committee is scheduled to meet with Governor Inslee on November 7 th. Inslee has also agreed to speak at the WSAC Annual Conference in Spokane. Governor Columbia River Program WSAC staff continues to be active working with the Columbia River County Commissioners Policy Advisory Committee responding to and preparing information regarding the Columbia River Treaty including meeting with the Eastern Washington Council of Government, facilitating tours, and providing staff support and coordination with Office of Columbia River. Affiliates/Partners Washington Counties Risk Pool- Brian Enslow and Eric Johnson attended WCRP summer meeting. Washington Counties Insurance Fund Karlyn Shannon serves on the WCIF Board of Directors. Washington State Auditor Local Government Performance Center I have been meeting regularly with leaders and partners of the local government performance center. Josh Weiss is working closely with LGPC staff on data analysis and reports. Department of Health Eric Johnson is participating on the Foundational Public Health Services (FPHS) Policy Workgroup, as are Brad Banks, Managing Director of the Washington State Association of Local Public Health Officials. Spokane County Commissioner Todd Mielke is Co-chairing the work group and is joined by King County Councilmember Joe McDermott, Asotin County Commissioner Jim Jeffords, and Kittitas County Commissioner Obie O Brien. Washington State Association of Local Public Health Officials Josh Weiss attended WSALPHOs Summer Conference in Tacoma WSALPHO Managing Director Brad Banks and WSALPHO Administrative Assistant Christine Garza planned an excellent conference and meeting. Association of County Human Services Josh Weiss and I attended ACHS Spring meeting in Spokane and presented WSACs Fiscal Sustainability Initiative. Abby Murphy supported the ACHS meeting and agenda. Additionally, Ms. Murphy, coordinated WSAC s response on Regional Service Areas for delivering integrated WSAC Board of Director's Meeting September 19, 2014 Page 81 of 121

83 mental health and chemical dependency services to the Adult Behavioral Health Systems Legislative Task Force. Washington State County/City Planning Directors - Laura Merrill and Josh Weiss joined the county planning directors at their annual conference in Chelan in September. Association of City/County Information Services Staff will be attending their fall conference in Vancouver. Washington State Association of County Engineers (WSACE) WSAC staff coordinated the WSACE June 2014 annual conference/meeting in Kitsap County. WSACE Managing Director Gary Rowe and Sarah Langley supported this event. Garfield County Engineer Grant Morgan was installed at WSACE President and WSAC President Price Johnson, Eric Johnson, Josh Weiss participated. Washington Association of County Commission/Council Clerks Eric Johnson attended the Clerks of Councils/Boards annual meeting in San Juan County. Washington State Association of Fire Chiefs (WSAFC) Eric Johnson briefed the Fire Chiefs on Fiscal Sustainability. Washington Association of Coroners and Medical Examiners (WACME) Eric Johnson met with officers in Leavenworth. Washington Association of County Clerks (WACC) Eric Johnson attended annual meeting in Pend Oreille County. Washington Association of Prosecuting Attorneys Eric Johnson and Brian Enslow attended WAPAA Training/Membership meeting in Chelan. Municipal Research Services Center Eric Johnson met with MRSC Executive Director Tracy Burrows and Pat Mason regarding research and training. Courthouse Briefings/Meetings Staff is very active in participating in meetings and discussions with WSAC members: King County; Fiscal Sustainability; NACO Large Urban County Caucus Annual Meeting, WSAC Business and Policy Thurston County; Justice Reinvestment Task Force, Regional Service Network/Behavioral Health Organizations, Voluntary Stewardship Program Pacific County; Disclosure of financial documents and issues with State Auditor Cowlitz County; Regional Service Network/Behavioral Health Organizations Pierce County; Regional Service Network/Behavioral Health Organizations San Juan County; general meeting with Councilmembers Columbia County; general meeting with Commissioners Ferry County; General Meeting with Commissioners Stevens County; General Meeting with Commissioners Spokane County; General Meeting with Commissioner, WSAC Business and Policy; Regional Service Network/Behavioral Health Organizations Eastern Washington Council of Government; Columbia River Treaty and potential meeting in DC Clark County; Open Public Meeting/Executive Sessions Grays Harbor County; Timber Assessment Issues Island County; General Meeting with Commissioners, WSAC Business and Policy; Regional Service Network/Behavioral Health Organizations Chelan County; Voluntary Stewardship Program, Regional Service Network/Behavioral Health Organizations, Wildfire, NACo Business and Policy Benton County; Noxious Weed Lincoln County; Eastern Washington Council of Government and Public Works Board WSAC Board of Director's Meeting September 19, 2014 Page 82 of 121

84 Kittitas County ;Growth Management, Affordable Housing Advisory Board, Meeting Site Reconnaissance, Rural Water Issues, NACo WIR PILT Fly In Asotin County; Onsite Sewer System Issues Lewis County; Board of Natural Resources and Historic Courthouse Preservation Jefferson; Oil Spill and Board of Health Kitsap; Elected Official Salaries, Veterans Issues Douglas; Regional Service Network/Behavioral Health Organizations Grant; Regional Service Network/Behavioral Health Organizations Okanogan; Regional Service Network/Behavioral Health Organizations, Wildfire Snohomish County; Emergency Management, WSAC Business and Policy Whatcom; NACo WIR PILT Fly In, Water Issues Klickitat; WSAC Business and Policy Yakima; WSAC Business and Policy Skagit; NACo Business and Policy Historic County Courthouse Rehabilitation Grant Program Along with Lewis County Commissioner Edna Fund and Snohomish County Councilmember Brian Sullivan, I serve on the Department of Archeology and Historic Preservation s advisory panel to review potential grants for the biennium. 10 counties submitted project requests totaling $4.5 million in state funds and providing an additional $4.5 million in matching monies. Performance Improvement Plan In September 2012 WSAC initiated a Performance Improvement Plan setting forth workplace and performance expectations, personnel adjustments and a new organizational structure. These changes were made to create a healthy, high performing, and constantly improving organization. We have made investments in training, reallocated resources, and strived to become focused on delivering outstanding service to our members. In late spring in 2012, 2013,and 2014, I interviewed all staff. In 2013 and 2014, a Performance Improvement Plan Scorecard was used to measure how well WSAC staff perceived our improvement associated with a set of criteria extracted from our Performance Improvement Plan. A summary of this Scorecard is attached for your review. Executive Board members were briefed in detail on the results. Staff The following staffing changes have occurred: Dion White joined WSAC staff on July 10, 2014 as our new Visual Communications Specialist. Dion is working a variety of print and electronic communication projects, maintaining and upgrade web access services, and preparing legislative brief documents. Ashley Meachem, Communications and Member Services Assistant, last day with WSAC was July 28, WSAC Board of Director's Meeting September 19, 2014 Page 83 of 121

85 2014 Annual Election Timeline Date By September 19 September 23, 10 a.m. September 30 & Oct. 7 October 10, 5 p.m. October October 27 October October 29 November 3 November 4, 10 a.m. November 18, noon November 19, 5 p.m. November 20, 9 a.m. November 20, 4 p.m. December 1 December 1 Activity President Price Johnson appoints Elections Oversight Committee Chair Staff finalizes WSAC election website for launch Candidate filing period begins Solicitation distributed to WSAC membership with online application form Reminder distributed to WSAC membership Candidate filing period ends Candidate materials (statement, photo, etc.) due to WSAC office Staff prepares ballots in VoteNet system; compiles/verifies election distribution list; and VoteNet assigns unique password to each active member WSAC Elections Oversight Committee conference call to review election materials, procedures, and process Staff makes any corrections and modifications to VoteNet system per committee s direction Staff sends voter list and blast info to VoteNet Ballot notice distributed to membership be looking for an on Tuesday Online polling opens WSAC members receive s with unique password and instructions On site polling station opens at Annual Conference Online polling closes Shut down voting computer WSAC Elections Oversight Committee meets to review results Election Announcements at WSAC General Membership Meeting Election Announcements published on WSAC website, news release distributed to officers home newspapers Election results published in WSAC Insider WSAC Board of Director's Meeting September 19, 2014 Page 84 of 121

86 Current Members ( ) Member County Position Steering Committee Jerome Delvin Benton County Member Environment, Energy and Land Use Ron Walter Chelan County Chair Public Lands Keith Goehner Chelan County Member Agriculture and Rural Affairs Loretta Stover Chelan County Member Health David Lasher Clark County Member Finance, Pensions and Intergovernmental Affairs Peter VanNortwick Clark County Member Community, Economic and Workforce Development Robert Koch Franklin County Member Agriculture and Rural Affairs Rick Miller Franklin County Subcommittee Vice Chair Environment, Energy and Land Use Shawn Sant Franklin County Member Justice and Public Safety Jane Hague King County Member Transportation Kathy Lambert King County Member Justice and Public Safety Lloyd Hara King County Vice Chair Telecommunications & Technology Jim Detro Okanogan County Member Public Lands Ray Campbell Okanogan County Member Public Lands Brian Stacy Pierce County Member Transportation Kenneth Dahlstedt Skagit County Vice Chair Health Ron Wesen Skagit County Member Environment, Energy and Land Use Gabriel Spencer Skamania County Member Community, Economic and Workforce Development Dave Somers Snohomish County Subcommittee Chair Environment, Energy and Land Use Stephanie Wright Snohomish County Member Justice and Public Safety Ken Klein Snohomish County Member Finance, Pensions and Intergovernmental Affairs Blair Brady Wahkiakum County Member Agriculture and Rural Affairs Pete Kremen Whatcom County Member Agriculture and Rural Affairs Recent Nomination Requests Date Member County ADD to Committee Term 08/27/2014 Brian Stacy Pierce County Transportation Steering Committee WSAC Board of Director's Meeting September 19, 2014 Page 85 of 121

87 STATE OF WASHINGTON August 4, 2014 RE: Support for the Marketplace and Internet Tax Fairness Act of 2014, Dear Members of the Washington State Congressional Delegation: We are writing to strongly urge your support for swift passage of the Marketplace and Internet Tax Fairness Act ( MITFA ) of 2014, which has been introduced in the U.S. Senate as S This bill would help level the playing field between large out-of-state online retailers and Washington s small business retailers, and would support a more prosperous Washington. Passage of MITFA is a top priority for our state and its counties and cities, and the need for it has never been greater. The competitive disparity between large online retailers and brick and mortar main street shops continues to grow, and this disparity hurts local businesses, the state economy, and the ability of state and local governments to provide services for our people. In 1992, the U.S. Supreme Court held that sellers must have a physical presence in a state before that state could require collection of its sales and use taxes. In the subsequent 22 years, the national economy has transformed dramatically. We have seen the rise of the Internet, the explosion of electronic commerce, and we are now witnessing the birth of the Internet of everything. The physical presence standard established by the Court has become outdated. To address the challenges of our 21st century economy, we must adopt modern rules for our retailers, as this bill would do. The Marketplace & Internet Tax Fairness Act would level the playing field between big and small and in-state and out-of-state businesses, restore to the states their authority to collect taxes already legally due, and simplify state sales and use tax collection where authority is exercised. This legislation would provide our state and local governments with important revenue to support education and other essential services, without creating or imposing any new taxes on the internet, businesses or consumers. Marketplace Fairness is a fair, thoughtful and well-developed policy proposal, which results from years of successful partnership between members of Congress, the business community, and state and local governments. The proposal has broad bipartisan support across our state and throughout the country, and has been embraced by numerous businesses, associations and chambers of commerce throughout Washington State and beyond. Moreover, passage of Marketplace Fairness remains a top priority for Democratic and Republican governors, the National Governors Association, the National Conference of State Legislatures, the National Association of Counties, and the National League of Cities. WSAC Board of Director's Meeting September 19, 2014 Page 86 of 121 ID

88 legislation Members of the Washington State Congressional Delegation August 4, 2014 Page 2 We greatly appreciate those of you whom have demonstrated your support for the Marketplace Fairness Act (S.743/H.R. 684), which passed the U.S. Senate with strong bipartisan backing (a vote), in May This new MITFA legislation, , combines with a tenyear extension of the Internet Tax Freedom Act ( ITFA ) that prohibits the imposition of internet access-taxes. State and local governments and many stakeholders have long opposed ITFA for the restrictions that it places on their authority. This bill was first passed as a temporary measure, in 1998, when the internet was a nascent and growing industry in need of special tax treatment, and has been extended several times since. We join other state and local leaders around the country in their wariness of a permanent extension of ITFA. However, we strongly believe that a temporary extension of this measure is a worthy compromise in exchange for passage of Marketplace Fairness, and therefore we request your support for On behalf of Washington and its counties and cities, as well as its businesses, communities and residents, we respectfully encourage you to support the swift passage of the Marketplace and Internet Tax Fairness Act. Very truly yours, Jay Inslee Governor Helen Price Johnson, President Washington State Association of Counties Island County Commissioner David Sauter, Vice President Washington State Association of Counties Klickitat County Commissioner D 0 Stephanie Wright, Secretary-Treasurer Washington State Association of Counties Snohomish County Councilmember Todd Mielke, Immediate Past President Washington State Association of Counties Spokane County Commissioner WSAC Board of Director's Meeting September 19, 2014 Page 87 of 121

89 Members of the Washington State Congressional August 4, 2014 Page 3 Delegation Francis Benjamin, President Association of Washington Cities Board of Directors Councilmember, City of Pullman,// Paul Roberts, Vice President Association of Washington Cities Board of Directors Councilmember, City of Everett Jim Restucci, Secretary Association of Washington Cities Board of Directors Mayor, City of Sunnyside Craig George, Immediate Past President Association of Washington Cities Board of Directors Mayor, City of Dayton Don Gerend, Past President Association of Washington Cities Board of Directors Councilmember, City of Sammarnish WSAC Board of Director's Meeting September 19, 2014 Page 88 of 121

90 2012 Performance Improvement Plan Scorecard Report, August 2014 On September 1, 2012, WSAC launched a Performance Improvement Plan with the commitment to work toward a healthy, high performing, and constantly improving organization. The following set of criteria is designed to assist in measuring progress towards achieving the outcomes desired by implementing the WSAC Performance Improvement Plan. This scorecard is simply one tool to assess perceptions and gain insights into progress being achieved within specific areas identified in need of organizational performance improvement. NO = Not observed 1 = Highly Disagree 2 = Generally Disagree 3 = Neutral 4 = Generally Agree 5 = Strongly Agree Objective 1 WSAC will strive to provide a culture of excellence, where high standards of performance are expected. Measurement 1.1 WSAC is improving at delivering outstanding, accurate products in a timely manner General Observations.5 Staff point to several specific instances as well as chronic lapses in maintaining timely and therefore accurate information. Producing documents with inaccurate data (LSC Materials) and a website that is not kept up to date and accurate are most often cited. Measurement 1.2 WSAC is improving at its effort to effectively plan, both strategically and operationally Measurement 1.3 WSAC directors/managers are Even Staff noted that while we are doing well, we should do more to provide staff context to reports, updates, and progress on implementation This improvement is a direct recognition to comments received from 1 WSAC Board of Director's Meeting September 19, 2014 Page 89 of 121

91 improving at managing for performance and accountability personnel changes and commitment to focus on organization improvement. Objective 2 WSAC will deliver outstanding products and services throughout the year across the organization Measurement 2.1 WSAC is improving to assure all programs/divisions develop and implement a 12 month work plan In general this measurement is at a plateau, and improvement is not being seen in all divisions. Staff transitions have impacted this in member services (2 vacancies) and operations (1 vacancy) and staff has stated the need to focus on base operations and stabilize the organization more than adding new responsibilities through planning processes. Objective 3 WSAC does not support or tolerate in any way disrespect of our staff or our members. Measurement 3.1 WSAC Staff members are improving at displaying respect to one another The overall perception and belief is that WSAC continues to improve in meeting this objective despite times when there is teasing that some would call excessive and yet it is not disrespectful or mean spirited. We need to continue to assure we treat and speak about, and provide WSAC members with utmost respect Performance Improvement Plan Scorecard Summary, August WSAC Board of Director's Meeting September 19, 2014 Page 90 of 121

92 Objective 4 We expect our staff to maintain a high standard of professionalism, maintaining an appropriate sense of humor internally and externally. Staff shall not use humor to take personal jabs, nor as a cover for a legitimate conversation about performance. Sarcasm shall not be used in a way that that is hurtful, or meant to degrade or demean someone. WSAC values humor. However, we do not tolerate humor that takes shots at people in a way that damages individual and/or our organizational morale, productivity, and results Measurement 4.1 WSAC is improving efforts to maintain a high standard of professionalism Clearly, our staff has high expectations for themselves, their co workers, and our organization. Every event/situation that does not meet or exceed this expectation is magnified and identified as a failure which generally relates to inaccurate work, incomplete work, tardiness in project completion, etc. There is also conversation that our work environment and work spaces are at times not as professional as could be. Ironically, we are having some comments that we are expecting too much and have to recognize that it is ok to not have perfection every time. Measurement 4.2 WSAC is improving at the use of appropriate humor internally and externally of the work environment Measurement 4.3 WSAC is improving at conducting appropriate training and skill development to assist in appropriate Even The general theme continues to show improvement and appreciation that humor remains but it is not inappropriate, hurtful, sarcastic, or mean spirited. +1 We continue to utilize Betsy BeMiller as a trainer, facilitator, and coach. She has gained the trust of staff and understands the organization culture. These activities show the commitment we are making to the 2012 Performance Improvement Plan Scorecard Summary, August WSAC Board of Director's Meeting September 19, 2014 Page 91 of 121

93 communication and conflict resolution. Measurement 4.4 WSAC is improving at holding others accountable to achieve zero tolerance of the behavior described in Objective culture and organization we want and staff expect. +.1 There appears to be some avoidance on the part of a subset of staff. Overall, there is general confidence and experiences to show good communication and conflict management is occurring. Objective 5 WSAC values open and straight conversation. Staff will not talk about other staff, members, legislators or others behind their back in a manner that is disrespectful, or could be hurtful. Measurement 5.1 WSAC staff are improving at dealing with individual and organizational conflict and individuals involved with respect and openness This improvement comes from staffing changes, performance improvement and development of trust. With some staffing changes, there is a new need for trust development and understanding of organizational culture. Objective 6 WSAC must be perceived and valued for more than an advocacy and lobbying organization. WSAC will build that reality internally through integrated planning and program delivery across all divisions and amongst all staff Measurement 6.1 WSAC is improving at integrating planning and program delivery among divisions and staff There is hope that with staff changes and capacity in place this will improve. The lack of confidence in performance and inaccuracies in product impacted integration of communication and policy in the desired manner Performance Improvement Plan Scorecard Summary, August WSAC Board of Director's Meeting September 19, 2014 Page 92 of 121

94 Objective 7 WSAC managers will assure that there is appropriate balance and distribution in workload and assignments. Measurement 7.1 WSAC is improving to assure there is a more appropriate balance and distribution of workload and assignments We have seen less overtime from non exempt staff, and observe staff checking in on how people are doing with workload, and an awareness when there are peaks in workload for staff. Objective 8 Policy directors must engage in year round activities and plan to deliver value and services throughout the year. Policy staff will have an interim work plan that is complete and thorough. Measurement 8.1 WSAC is improving to assure that each member of the policy staff has specific, measurable interim work plan in place Discussions indicated that there was no evaluation or measurement on how the work plans were implemented, performed, outcomes achieved, etc. Objective 9 WSAC values its employees and their relationships and lives outside the workplace. As such we offer a flexible workplace. With that said, it is expected that this flexibility be honored and respected by the employee. Measurement 9.1 WSAC is improving its desire to respect a balance between work and Consistent with WSACs retention plan, our understanding of balance and honoring both work and life responsibilities is provided and utilized 2012 Performance Improvement Plan Scorecard Summary, August WSAC Board of Director's Meeting September 19, 2014 Page 93 of 121

95 family Measurement 9.2 WSAC employees are improving at respecting the use of a flexible workplace by staff. +.1 While there is still an improvement noted, there are a number of comments stressing the need for an understanding of flexibility and assuring that staff is aware of co workers schedules and availability. Objective 10 (New) Measurement 10.1 WSAC is improving in its intention to and retain a highly competent and professional workforce. N/A 4.3 WSAC Members value their employees and as such adopted a policy to invest in, and retain a highly competent and professional workforce and intends to assure: Appropriate and competitive salary compensation; and Competitive health care and retirement benefits; and Annual budget appropriation to support employee retention activities; and Workplace conditions are vibrant, nourishing and respectful. While this score is within the desired range, I believe that there are two specific items that we need to address: 1. Competitive Salary WSAC is at the point of potentially lagging behind peers and should consider a salary survey to analyze this in detail. 2. We are not competitive with retirement benefits. Peer organizations provide more vibrant and stronger retirement contributions. WSAC health care benefit is solid, above average. The WSAC work environment is supported, appreciated and cultivated. Staff recognizes the importance and place a high value on this Performance Improvement Plan Scorecard Summary, August WSAC Board of Director's Meeting September 19, 2014 Page 94 of 121

96 September 19, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Karlyn Shannon, Business and Financial Services Director Business and Finance Report 2012/2013 Audit The audit of 2012 and 2013 financial reporting and internal controls at WSAC is nearly complete. On site work was finished the week of June 16 th. Eric and I met with the Senior Audit Manager and the Principal Audit Manager to go over preliminary information. I am proud to again report that WSAC financial information and internal controls received a clean bill of health. Only minor exit items were noted to include one policy change that is on today s agenda. The finishing touches by the audit firm will be done soon and the final report will go to the Audit and Finance Committee sometime in October for review. A complete report will be provided to the Board of Directors in November. 2 nd Quarter 2014 Report Cash Reserves We ended the 2 nd quarter of 2014 with a total cash position of $987,230. This is a $362k decrease from the 1 st quarter reporting. The largest factor for this decrease is the use of the remaining Retro Pool balance for payment of the May 2014 L&I assessment. Receivables Current receivables have stabilized with no issues to report. Budget to Actual Activity The 2 nd quarter 2014 report shows a negative positive $51,765 bottom line. Variances highlighted in the financial report: Contract Services Revenues - The budget is set at an equal amount spread throughout the year. Actual activity will usually vary depending on the scope of work. Payroll and Benefits positive variance of $36k is due to the Finance Assistant position scaled back to one half, the Technology Manager position vacant for three months, and the Communications Assistant vacant for one month. Meetings, Travel and Hosting the negative variance of $(20k) is primarily due to the LSC Planning meetings in Chelan as well as the June Professional Development conference in Yakima. General Operating the positive variance of $22k is primarily due to the marked decrease in insurance costs when WSAC moved insurance carriers from AH&T to JDFulwiler. Merchant Services Karlyn and Derek have been working on changing WSAC s merchant services from PayPal to Wells Fargo. There have been a few bumps in the road but the overall savings in fees is the ultimate goal. WSAC Board of Director's Meeting September 19, 2014 Page 95 of 121

97 Statements of Financial Position, by Fund As of June 30, 2014 and 3 Years Prior (unaudited) Operating Fund Special Fund Total Assets Cash and Cash Equivalents $ 613,023 $ 374,207 $ 987,230 $ 464,100 $ 315,623 $ 537,371 Receivables and Other Current Assets 340,383 24, , , , ,379 Property and Equipment, Net 82,780-82,780 85,018 90,381 69,041 Long-term and Other Assets L&I Retro Program , , ,515 WCB Partnership 214, , , , ,233 NACo RMA Partnership 1,033 1,033 1,033 (1,287) - Total Assets $ 1,251,275 $ 398,238 $ 1,649,513 $ 1,323,207 $ 1,321,445 $ 1,611,539 Liabilities and Unrestricted Equity Current Liabilities $ 692,542 $ 3,538 $ 696,080 $ 221,512 $ 249,577 $ 258,265 Retro Pool Reserves , , ,515 Undesignated Net Assets 558, , , , , ,759 Board Designated Net Assets - 202, , , , , , , , , , ,759 Total Liabilities and Equity $ 1,251,275 $ 398,238 $ 1,649,513 $ 1,323,207 $ 1,321,445 $ 1,611,539 Key factors for changes in WSAC s Assets and Equity between 2011 and 2014: Cash: o The decrease in cash at the end of 2012 is due primarily to an increase in receivables - related to contracts. Contract activity is paid for by WSAC first, then reimbursement is requested. There was a marked increase in contract activity (and thus receivables) from 2011 to 2012 due to the transportation performance contract which really began in January of o The marked increased in cash at the end of the first quarter in 2014 is because of WSAC's annual dues billing process as well as contract receivables paid. Retro Pool Reserves were spent in 2012 and again in The group opted to utilize the remaining pool funds to pay for the 2014 L&I assessment. Note that the balance found in Retro Pool Reserves liability is mirrored within the asset section under Long-term and Other Assets. Deferred Revenues - the large increase in "Current Liabilities" is due to booking deferred revenue for annual dues billed in January but not "earned" until the year progresses. J U N E 3 0, W S A C F I N A N C I A L S 1 WSAC Board of Director's Meeting September 19, 2014 Page 96 of 121

98 Statements of Cash Flows by Fund, Direct Method As of June 30, 2014 and 3 Years Prior (unaudited) Operating Fund Special Fund Total Beginning Cash and Cash Equivalents $ 291,149 $ 352,112 $ 643,261 $ 497,572 $ 981,886 $ 1,054,131 Cash Flows From Operating Activities Cash Received From Members, Affiliates, and Other Services $ 1,768,738 $ 56,053 $ 1,824,791 $ 2,837,311 $ 2,422,565 $ 2,445,575 Interest and Dividends Earned ,070 Payments for Payroll and Related Benefits (707,479) - (707,479) (1,404,107) (1,526,616) (1,363,971) Payments to Vendors and Suppliers (544,736) (34,058) (578,794) (1,262,470) (1,065,252) (1,148,064) L&I Retro Reserve (179,161) - (179,161) (2,788) (262,566) (161) Income Taxes (1,760) (2,927) Net Cash Provided (Used) by Operating Activities 337,362 22, , ,015 (433,126) (59,478) Cash Flows From Investing Activities Purchases of Capital Equipment (32,988) - (32,988) (23,326) (51,188) (18,722) Investment in Subsidiary - FSC ,955 Capital Contributions to Building Partnership Proceeds From Disposal of Assets 17,500-17, Net Cash Provided (Used) by Investing Activities (15,488) - (15,488) (23,326) (51,188) (12,767) Net Increase (Decrease) in Cash 321,874 22, , ,689 (484,314) (72,245) Key factors for changes in WSAC s cash flows between 2011 and 2014: Ending Cash and Cash Equivalents $ 613,023 $ 374,207 $ 987,230 $ 643,261 $ 497,572 $ 981, includes an L&I assessment paid in May ($262k) as well as the remaining funds paid in May 2014 ($179k) shows two quarters of information compared to a full year for the prior years also includes full annual dues payments from most members dues collections in the first quarter was markedly better than the first quarter of 2013 with more members choosing to pay in full rather than make payments. Purchases of capital equipment for 2012 include a new pool car and other purchases related to WSACs office move. The 2014 purchases include a new pool car with proceeds from an older pool car trade-in. J U N E 3 0, W S A C F I N A N C I A L S 2 WSAC Board of Director's Meeting September 19, 2014 Page 97 of 121

99 Revenue Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual General and Transportation Dues $ 1,199,156 $ 599,578 $ 599,577 $ (1) $ 1,158,058 $ 1,135,375 $ 1,115,027 Business Partner Fees 7,000-1,100 1,100 3,500 7,950 5,900 Affiliate Assessments 363, , ,273 13, , , ,113 Contract Services 811, , ,957 (75,923) 852, , ,284 Insurance Services 60,000 30,000 27,927 (2,073) 65,296 76,463 50,610 Conferences and Events 113,000-3,710 3, ,442 93, ,356 Other Misc. Income 1, (500) 4, ,098 Interest and Dividend Income Total Revenue $ 2,554,882 $ 1,254,561 $ 1,194,545 $ (60,016) $ 2,582,438 $ 2,474,752 $ 2,396,390 Operating Expense Actual vs. Budget in Summary - Operating Fund For The Quarter Ended June 30, 2014 and 3 Years Prior (unaudited) Payroll and Benefits $ 1,433,914 $ 720,756 $ 684,640 $ 36,116 $ 1,375,861 $ 1,522,856 $ 1,364,660 Meetings, Travel and Meals 100,450 59,600 75,263 (15,663) 126, , ,960 Conferences and Events 53,500 4,000 16,096 (12,096) 71,393 52,872 73,601 Professional Services 774, , , , , , ,637 Technology and Telecom 46,600 23,650 18,641 5,009 48,297 60,512 46,260 General Operating 161, ,425 87,043 15, , , ,106 Total Operating Expense $ 2,570,914 $ 1,293,931 $ 1,161,031 $ 132,900 $ 2,568,721 $ 2,461,271 $ 2,458,224 Budgeted Net Income (Loss) $ (16,032) $ (39,370) $ 33,513 $ 72,883 $ 13,717 $ 13,480 $ (61,834) J U N E 3 0, W S A C F I N A N C I A L S 3 WSAC Board of Director's Meeting September 19, 2014 Page 98 of 121

100 Actual vs. Budget in Summary - Special Fund For The Quarter Ended June 30, 2014 and 3 Years Prior (unaudited) Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual Revenue Royalties and Marketing $ 91,000 $ 45,500 $ 53,433 $ 7,933 $ 101,869 $ 98,498 $ 63,446 Other Misc. Income (250) ,796 - Interest and Dividend Income (150) ,068 Total Revenue $ 92,000 $ 46,000 $ 53,533 $ 7,533 $ 102,403 $ 114,797 $ 73,514 Operating Expense Meetings, Travel and Hosting $ 55,000 $ 27,500 $ 32,133 $ (4,633) $ 50,671 $ 63,200 $ 32,227 Conferences & Events 5,000 2,500-2,500-5, Professional Services 9, ,500 19,500 - Other Operating Expenses 15,900 9,800 3,149 6,651 5,041 18,009 9,084 Total Operating Expense $ 85,400 $ 39,800 $ 35,281 $ 4,519 $ 65,212 $ 106,362 $ 41,327 Budgeted Net Income (Loss) $ 6,600 $ 6,200 $ 18,251 $ 12,051 $ 37,191 $ 8,435 $ 32,187 J U N E 3 0, W S A C F I N A N C I A L S 4 WSAC Board of Director's Meeting September 19, 2014 Page 99 of 121

101 Key factors for changes in WSAC s income and expenses between 2011 and 2014: Revenue Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual General and Transportation Dues $ 1,199,156 $ 599,578 $ 599,577 $ (1) $ 1,158,058 $ 1,135,375 $ 1,115,027 Business Partner Fees 7,000-1,100 1,100 3,500 7,950 5,900 Affiliate Assessments 363, , ,273 13, , , ,113 Contract Services 811, , ,957 (75,923) 852, , ,284 Insurance Services 60,000 30,000 27,927 (2,073) 65,296 76,463 50,610 Conferences and Events 113,000-3,710 3, ,442 93, ,356 Endorsement and Marketing 91,000 45,500 53,433 7, ,869 98,498 63,446 Other Misc. Income 1, (750) 5,039 16,621 5,098 Interest and Dividend Income (150) ,070 Total Revenue $ 2,646,882 $ 1,300,561 $ 1,248,077 $ (52,484) $ 2,684,841 $ 2,589,549 $ 2,469,904 Operating Expense Actual vs. Budget in Summary - All Funds For The Quarter Ended June 30, 2014 and 3 Years Prior (unaudited) Payroll and Benefits $ 1,433,914 $ 720,756 $ 684,640 $ 36,116 $ 1,375,861 $ 1,522,856 $ 1,364,660 Meetings, Travel and Hosting 155,450 87, ,396 (20,296) 177, , ,187 Conferences and Events 58,500 6,500 16,096 (9,596) 71,393 58,525 73,618 Professional Services 784, , , , , , ,637 Technology and Telecom 46,600 23,650 18,641 5,009 48,297 60,512 46,260 General Operating 177, ,225 90,192 22, , , ,189 Total Operating Expense $ 2,656,314 $ 1,333,731 $ 1,196,313 $ 137,418 $ 2,633,933 $ 2,567,633 $ 2,499,551 Budgeted Net Income (Loss) $ (9,432) $ (33,170) $ 51,765 $ 84,935 $ 50,909 $ 21,916 $ (29,648) Key Operating Metrics Current Year Dues as a % of Total Revenue 48% 43% 44% 45% # of Permanent Staff Payroll Expense as % of Total Expense 57% 52% 59% 55% Net Income as % of Revenue 4% 2% 1% -1% 2014 shows the full year budgeted and only two quarters of actual activity compared to a full year of activity for the prior years. Affiliate assessment revenues are based on actual expenses from the affiliates WSAC manages (recorded within Operating Expense) with a 12% overhead charge added. The increase in budget for Payroll and Benefits in the 2012 and again in 2014 budget is due to a COLA in January of each of those years. J U N E 3 0, W S A C F I N A N C I A L S 5 WSAC Board of Director's Meeting September 19, 2014 Page 100 of 121

102 Total Cash Position - All Funds For The Quarter Ended June 30, 2014 and 3 Years Prior (unaudited) $987,230 Board Designated 202,000 21% Special Fund 172,207 17% Operating Fund 613,023 62% J U N E 3 0, W S A C F I N A N C I A L S 6 WSAC Board of Director's Meeting September 19, 2014 Page 101 of 121

103 September 19, 2014 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Derek Anderson, Director, Member Services and Communications Member Services and Communications Division Report 2014 County Leaders Conference Registration for the 2014 County Leaders Conference is now open. Full conference registration fees are $350 and first time attendee fees are $275. Programming for this conference is underway and a draft agenda is currently available on the conference webpage Program highlights include: Governor Inslee has been confirmed to speak on the morning of Thursday, Nov. 20 th. Ann Mcfarlane with Jurassic Parliament will be presenting 5 custom trainings on parliamentary procedures. Sponsorship: Comcast, Republic Services, Washington Counties Insurance Fund, Waste Management, Waste Connections, and CenturyLink have all been secured as sponsors for the County Leaders Conference. Staff is currently working with AT&T and Regence Blue Shield to come on board as new sponsors. Registration: At this time, we currently have 54 completed registrations, which include 16 WSAC Members, 14 WSALPHO Members, 13 WSACE Members, and 2 WSU Directors. We are projecting total attendance to reach 250. Newly Elected Officials Conference WSAC and WACO staff continue to develop programing for the 2014 Newly Elected Officials Conference which is scheduled for December 9-11 th at Campbell s Resort. Ethics, Public Records, Open Public Meetings, County Finance Basics, and Getting Along in the Courthouse are just a few of the programs that will be provided. WSAC staff is managing registration, which opens October 15 th as well preparing marketing and programming materials County Leaders Conference During their Annual Planning Meeting, the Executive Board selected Skamania Lodge to host the 2015 County Leaders Conference. Be sure to mark your calendar for next year s County Leaders Conference in Skamania - November th, Boards & Commissions Appointments The Governor has appointed the following WSAC nominees: Building Code Council Al French, Spokane County Commissioner Freight Mobility Strategic Investment Board Michael Karnofski, Cowlitz County Commissioner WSAC Board of Director's Meeting September 19, 2014 Page 102 of 121

104 September 19, 2014 TO: FROM: PREPARED BY: WSAC Board of Directors Eric Johnson, Executive Director Josh Weiss, Director, Policy and Legislative Affairs, General Counsel SUBJECT: Policy and Legislative Report The Legislative Steering Committee held their second biennial planning meeting in May, approving a list of ideas to pursue for the 2015 Legislative session. WSAC staff are working to develop those ideas by meeting with stakeholders, preparing communication materials, and identifying and speaking with potential legislative sponsors. The LSC also met in June to discuss transportation funding, the transfer of federal lands, and the Adult Behavioral Health Legislative Task Force, and other items. The Committee met again in July via conference call to finalize recommendations to the Adult Behavioral Health Legislative Task Force. WSAC staff made a presentation on the Fiscal Sustainability Initiative to the Budget and Finance Committee of the King County Council. We have asked counties to adopt resolutions endorsing the Fiscal Sustainability Initiative, and 18 county legislative authorities have done so. Staff have met with the Governor s Budget Office to discuss WSAC priorities for the upcoming biennium, specifically requesting that the Governor include items that will help county fiscal sustainability in his budget proposal. We also met with Governor Inslee s new Policy Director and discussed policy items that will be important to both state and county government. We are also putting together a meeting in November between Governor Inslee and the WSAC Executive Committee to discuss legislative priorities. Finally, WSAC staff have been meeting with Legislative leadership and caucus staff, requesting that each caucus make county fiscal sustainability a priority. Budget, Finance, Public Safety, and Civil Legal Brian Enslow The House Finance Committee has met twice since June to review and discus county and city fiscal sustainability. WSAC staff encouraged the Committee to undertake this type of review during the 2014 Legislative session. The second meeting focused largely on county finance issues, and Spokane County Commissioner Todd Mielke presented the county Fiscal Sustainability Initiative. The Committee is scheduled to meet one more time on these issues, and WSAC staff are working closely with Committee leadership, Legislative staff, and staff from the Association of Washington Cities as the process unfolds. Earlier in the summer WSAC staff was alerted to the fact that the State Auditor's Office was disclosing county financial information to public requestors, including bank account numbers and other identifying information. Pacific County Commissioner Lisa Ayers spearheaded an effort to change both the type of information the Auditor will collect from counties and their notice process in the event of a public disclosure request. Starting in August the Auditor's Office has instructed its staff to only retain financial papers if they are needed to support a WSAC Board of Director's Meeting September 19, 2014 Page 103 of 121

105 findings, otherwise they should not be included as part of the working papers. Additionally, the Auditor will now alert a county if any of their working papers are requested. Brian Enslow attended the Washington Association of Prosecuting Attorney's summer board meeting in Chelan. The roundtable discussed current law and justice issues, particularly the legislation pertaining to DNA evidence retention by Rep. Orwall. Staff also participated the in Washington Counties' Risk Pool summer conference in Spokane. Key roundtable conversations included a discussion of the Thurston County case and the liability that a Board assumes if they are part of the hearing examiner appeal process. Also discussed was the Mercer Island bike trial case. A woman was permanently disabled in a biking accident while recreating on the I-90 trail. The Supreme Court held that recreational liability doesn't apply to trails that have significant transportation value. Washington State is facing a significant shortage of prison beds. The Governor doesn't want to fund additional beds unless certain that the state is doing all it can to avoid recidivism programmatically. The Governor brought in the Council of State Governments to evaluate Washington State's criminal justice system through the Justice Reinvestment Initiative. The Justice Reinvestment Initiative is a data-driven approach to improve public safety, reduce corrections and related criminal justice spending, and reinvest savings in strategies that can decrease crime and reduce recidivism. The kick of meeting was in July, and the Council has been following up with interviews of key stakeholders. The group will reconvene in early September. Thurston County Commissioner Cathy Wolfe is representing WSAC on this steering committee. Under the Provisions of SB 6126 the state must pay for the costs of legal services provided by attorneys appointed if the legal services are provided in accordance with the standards of practice, voluntary training and caseload limits developed by the statewide children s representation work group. There have been several implementation issues, particularly for medium to small counties. The contracts required by the Office of Civil Legal Aid assumes a statewide reimbursement rate which is much more than what is currently paid, which could lead to rate inflation in other areas as well as pose a challenge when the money runs out halfway through next year. Additionally, the language requires specific training and certification but is unclear if the county or the individual attorney is responsible for those provisions. The chair and ranking member of the House Judiciary Committee have asked the Washington State Office of Public Defense to convene a work group to examine the cost of misdemeanor public defense in Washington s courts of limited jurisdiction. The group has met several times over the course of the summer. One of their main endeavors has been survey counties and cities regarding the cost impacts associated with implementing caseload standards. Over 75 percent of counties responded and nearly 2/3 of all of the cities, we are still analyzing the data to determine the overall impact. Land Use, Natural Resources, Timber Program and Environment Laura Merrill Land Use Under the cost containment side of the fiscal sustainability initiative, land use and the Growth Management Act (GMA) are large cost drivers in most counties. The Association of Regional Planning Directors (joint city and county) will be hosting their annual conference September 9th through the 12th. Some items we are preparing to discuss for the 2015 session are the implementation of HB 1224 (concerning voluntary planning under the GMA) which allows 4 counties (Ferry, Pend Oreille, Columbia and Garfield) to opt out of the GMA. I attended a meeting in May in Pend Oreille County, where Senator Dansel and Representative Short, along with representatives from the Department of Commerce discussed implementation with the county. WSAC staff and the Department of Commerce are talking with planners about the possible return of legislation concerning vesting of applications in an Urban Growth Area (UGA) or that occur in the expansion of a UGA. The House Local Government Committee has indicated that they want to continue this discussion and address vesting issues in A priority of the LSC for 2015 is flexibility with permit fees. In researching and preparing this issue, WSAC staff has met to discuss legislation with the Department of Commerce, the Washington Association of Building Officials (WABO), House Local Government staff, and Representatives Springer, Fitzgibbon and Pike who sit on WSAC Board of Director's Meeting September 19, 2014 Page 104 of 121

106 the House Local Government committee. Working with the Commerce Local Government Fiscal Note data, WSAC staff is preparing an issue paper to use in the outreach to other stakeholders. Chelan and Thurston County are conducting meetings to implement the Voluntary Stewardship Program (VSP) as allowed by a state pilot program. WSAC staff is monitoring and participating in several local meetings. Natural Resources/Water The Rural Domestic Water workgroup was scheduled to meet with the Department of Ecology and other stakeholders to discuss the agency s guidance document, yet due to difficulties with a facilitator, those meetings have been delayed until September. The Water Resources Advisory group (WRAC) at Ecology continues to meet monthly. WSAC staff attends these meetings and the recent "Rural Strategies" workgroup Ecology has formed. Following the Swinomish court decision, Ecology is looking at ways to balance their two part mission of managing water resources and providing water for communities. At these meetings Ecology hears a broad spectrum of ideas and feedback on how to move forward. Ecology believes they are a separate set of issues from the county guidance document yet many of the same stakeholders would attend both workgroups. WSAC staff will continue to participate and monitor progress. The Department of Ecology will begin work on the regulatory update dealing with human health criteria and fish consumption standards. The Governor recently held meetings and a press conference to give his direction for Ecology to base their standards on. The Governor chose a higher fish consumption number and a higher cancer risk rate, which equates to a more difficult standard to meet. The standards appear to be less stringent than originally proposed and the coalition of business, cities, ports and counties are relieved that they appear to be more reasonable and attainable. WSAC staff will continue to participate and communicate the rulemaking process. Ecology has also re-started rulemaking on the regulations governing development and use of reclaimed water. The process will also complete a guidance manual (The Purple Book). This renewed process will pick up the reclaimed water rule where we left it when rule-making was suspended in This means the significant progress made toward developing the Rule prior to the suspension of rule-making will not be lost. Ecology intends for adoption and implementation of the rule and manual to occur within the next two years. Timber Following the Timber Counties meeting in May, a proposal was put forth to the Legislative Steering Committee to pursue a study of the transfer of federal lands to the state or counties. The LSC approved the recommendation and WSAC staff is compiling data and will reach out to interested stakeholders to prepare for the 2015 Legislative session. WSAC staff are talking to legislators and seeking a prime sponsor. WSAC staff attended the National Association of Counties (NACo) Western Interstate Region meeting in Anchorage Alaska and participated in the Public Lands Steering Committee as they discussed PILT and SRS re-authorization and funding mechanisms such as partnering with the Land and Water Conservation Fund (LWCF). WSAC staff participates in the monthly western states calls hosted by NACo and monitors the committee working on changes to the PILT formula for better equality across the nation. 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 any recommendations to the rulemaking process the Board may initiate. The Timber Counties discussed ways to be more engaged with Department of Natural Resources (DNR) timber sales and participate in the Board of Natural Resources meetings to support the fiduciary trust responsibility of the Board. WSAC staff are working with DNR staff to provide a six month preview of upcoming sales in each region, and a time frame to communicate with the counties for their feedback and support. With the announcement that Lewis County Commissioner Lee Grose will not seek re-election, his representation of the Washington State Association of Counties on the Board of Natural Resources (BNR) will terminate December 31, In anticipation of his departure, WSAC has established an election timeline to have a new representative appointed in advance of the January, 2015 BNR meeting. WSAC Board of Director's Meeting September 19, 2014 Page 105 of 121

107 Public Health Brad Banks WSALPHO's 2014 Summer Meetings The Washington State Association of Local Public Health Officials (WSALPHO) held its 2014 summer meetings on June 10 & 11, at the Hotel Murano, in downtown Tacoma. WSALPHO's membership meets twice annually, in the summer and fall. The summer meeting was a great success attended by more than 100 local health officials from nearly all 35 local health jurisdictions. Topics discussed included the public health response to the Oso Landslide, an update on the ongoing Foundational Public Health Services work, the potential formation of a Public Health Institute in Washington State among others. This year, the Washington State Board of Health held its meeting alongside WSALPHO's. WSALPHO will continue its recent tradition of holding its fall meetings in conjunction with WSAC's County Leaders Conference in Spokane this November WSALPHO Executive Leadership At its summer meetings, WSALPHO members elected the following members to serve as WSALPHO's Executive Committee (President, Vice President and Secretary/Treasurer): President: Jeff Ketchel - Administrator, Grant County Health District Vice President: Dorene Hersh - Chief of Nursing, Public Health Seattle & King County Sec./Treasuer: Andre Fresco - Administrator, Yakima County Health District Past-President: Elaine Conley - Director of Community Health, Spokane Regional Health District Foundational Public Health Services (FPHS)Policy Workgroup As public funds remain tight, expectations of government are shifting, and the world of public health overall continues to change. The purpose of this workgroup is to ensure the governmental public health system in Washington State meets 21st century realities. The Public Health Improvement Partnership s (PHIP) Agenda for Change and Action Plan provides a strategic framework for keeping Washingtonians safe and healthy in this rapidly changing environment. It includes three health priorities and the idea that some services foundational public health services must be available everywhere in order to work anywhere. The FPHS Technical Workgroup defined a limited set of Foundational Public Health Services and is estimating the cost of providing those services statewide. This has been pioneering work that is being used as a model for similar efforts at the national level and in other states The FPHS Policy Workgroup has been formed to develop options for policy and funding reforms to ensure access to foundational public health services for all people in Washington. This is challenging and groundbreaking work. Membership of the Policy Workgroup included representatives from counties, cities, tribes, State agencies, and a number of private sector organizations (representing hospitals, nurses, physicians, labor, etc.). WSAC members on this workgroup include Commissioner Todd Mielke (Spokane County and serving as one of the three co-chairs of the Workgroup), Commissioner Jim Jeffords (Asotin County) and Commissioner Obie O'Brien (Kittitas County). The FPHS Policy Group has met monthly in person from since April and will conclude with a final meeting in December. Title XIX Medicaid Administrative Claiming In a final effort to find agreement with the State and the Center for Medicaid Services on a Cost Allocation Plan (CAP) for Local Health Jurisdictions (LHJ s) in Washington State a critical meeting was held at CMS headquarters in Baltimore on August 15th. Representatives from the LHJ s included: Elaine Conley (Spokane), Leslie Hopkins (Kitsap), Patty Hayes (Public Health Seattle and King County), and Eben Sutton (Public Health Seattle and King County) as well as Brad Banks (representing WSALPHO/WSAC) and Hansine Fisher who attended as an issue expert. State Medicaid Director MaryAnne Lindeblad represented HCA. Attendees from CMS included: Cindy Mann, the Director of Medicaid and CHIP Services; Janet Freeze, the Director of Reimbursement and State Financing; several senior administrators; and staff from the unit that oversees day-today operations of MAC programs nationally. Staff from CMS Region X attended by videoconference, as did several HCA staff. Overall, the meeting went surprisingly well, with CMS agreeing to the vast majority of WSALPHO's proposals. Additional documentation must be submitted, as CMS wants detailed information on the how of these proposals. While an October 1st deadline is still in place, it exists as a timeline for completing all the follow-up and coming to final approval. No stoppage of payments will occur on October 1st. Reconciliation will still occur for FY12 and FY13. There will be significant follow-up over the next few months, and CMS headquarters staff WSAC Board of Director's Meeting September 19, 2014 Page 106 of 121

108 offered to provide resources and sample monitoring language from other states to facilitate the finalization of details Legislative Agenda WSALPHO has begun the process of forming its 2015 Legislative Agenda. This of course happens in coordination with WSAC's Legislative Agenda development. Policy issues currently rising to the top of the list include legislation around e-cigarette regulation and taxation, on-site septic programs, public health nurse dispensing and support for strengthening early intervention and maternity support programs. Sustainable state funding for a minimum set of public health activities remains WSALPHO's top budget priority. WSALPHO will continue to work closely with WSAC and other partners to work to achieve success on both the policy and budget fronts. Transportation and Infrastructure Gary Rowe The county engineers affiliate, the Washington State Association of County Engineer (WSACE), held its annual meeting in Silverdale, Washington. Conference attendees were welcomed to the conference by WSAC President Helen Price Johnson and Kitsap County Commissioner Charlotte Garrido. WSAC Executive Director Eric Johnson also greeted the approximately sixty county engineers, public works directors and staff. At the annual meeting county engineers received updates from WSDOT Highways and Local Programs, the County Road Administration Board (CRAB) and Federal Highways Administration. WSAC s Legislative Policy Director Josh Weiss made it back from a memorable train vacation in time to give an overview of the 2014 legislative session. Topics at the conference included the update of the state transportation plan, a discussion and overview of Department of Fish & Wildlife s proposed hydraulic project code rewrite, King County s Transportation Strategic Plan, the transportation performance metrics project, and project presentations from counties. WSACE installed its new officers for with Garfield County Engineer Walter (Grant) Morgan installed as President. Annual awards were presented with Douglas County s Aaron Simmons receiving the Project/Program Manager of the Year award and Douglas County Engineer Doug Bramlette receiving the County Engineer of the Year Award. Outgoing President Jon Brand (Kitsap) gave the Presidential Award to the Snohomish County Public Works Department for their work on the Oso Slide Disaster. In 2014 the legislature passed 2SHB 2251 which established a new advisory board to the Department of Fish Wildlife. The new Fish Passage Barrier Removal Board (FPBRB), which will develop recommendations on the coordination of fish passage barrier removals to DFW and the legislature. Jon Brand, Kitsap County Engineer, was appointed to represent counties with Gary Rowe designated as the alternate. The FPBRB has members from cities, counties, state agencies and tribes. The FPBRB has met three times and is in an information gathering phase. Work continues on transportation studies with WSAC producing a county transportation attainment report delivered to the Office of Financial Management to be incorporated into the state s transportation attainment report due this fall. In addition to transportation metrics, work continues on the program management tools pilot project. WSAC has signed a contract with Cascade Software Systems, Eugene, Oregon, for the development of the software tools. Cascade Software Systems was selected, in part, due to their existing presence in 24 counties with financial, maintenance, and project management systems. WSACE members continue to be concerned about Board of Registration (BOR) proposed rules affecting the type of work done by professional engineers. The proposed rules will limit the ability of professional engineers to perform routine surveying incidental to the projects they are responsible for. The BOR s rules will add unnecessary costs to projects by requiring the hiring of a land surveyor to complete routine activities associated with project layout. County engineers also turned out in force at a Fish & Wildlife Commission hearing on proposed hydraulic project rules. Counties from Mason, Thurston, Chelan, Pend Oreille, Pierce, Lewis, and Skagit Counties testified with concerns about the rules asking that issues be resolved prior to their adoption. WSAC Board of Director's Meeting September 19, 2014 Page 107 of 121

109 WSACE Managing Director, Gary Rowe, represented WSAC at a hearing over the proposed rule defining Waters of the U.S. In addition to providing oral comments, WSAC has submitted written comments expressing concerns over the potential expansion of jurisdiction to county road ditches and other county owned infrastructure. Federal transportation funding was extended to May, 2015 with funding essentially at current levels. MAP-21 was reauthorized for the same short period with no changes in programs. Counties, either through the Municipal Planning Organization, the Regional Transportation Planning Organization, or county lead agency process, have been working to obligate current funding before the current federal fiscal year ends September 30 th. Non-MPO rural counties may not obligate all their funding raising concerns that some funding may be lost. WSACE is tracking the issue and following up with those counties that may be affected. Messages remain mixed over whether a transportation funding package will get any traction in the next legislative session. WSAC and WSACE will continue meeting with legislators advocating for an increase in funding to counties as a priority for any proposal. In addition to transportation funding, an effort to provide funding for water related infrastructure is underway. No specific proposal has been put forward, but discussions have centered on the need to raise between $3 and $6 billion over the next ten years. Human Services- Abby Murphy The Association of County Human Services (ACHS) continues to meet every two months to discuss the many changes within the mental health and chemical dependency services arena. As we begin the process of integrating treatments, our ACHS membership decided it would be beneficial to have the mental health and chemical dependency sections begin meeting together in order to start learning from each other. This change will also consolidate our meetings from 3 days to 2 days, and will require a change to the organization s bylaws. In an effort to help Legislators understand the counties funding requests and/or policy issues, we have extended an invitation to members of the human services non-partisan policy Legislative staff, as well as the policy staff for each of the four Legislative caucuses. Some have attended in the past and have reported that it gave them a better understanding of what is happening "on the ground" as well as a different perspective than what the agencies have been reporting to them and to Legislators. We know these staff members are a direct line to Legislators and hope this could be an effective Legislative tool. The Legislatively created Adult Behavioral Systems Task Force met in June and July. WSAC presented on Regional Support Networks at the June meeting and gave an update on our progress toward selecting Regional Service Areas. We then submitted our final recommendations for Regional Service Areas at the July meeting. Now the focus of the Task Force is beginning to shift towards the process of integrating systems and addressing the counties who wish to pursue becoming early adopters. WSAC has been meeting with King and Pierce Counties to ready ourselves for the September Task Force meeting as well as future early adopter discussions. WSAC staff have also met with Rep. Cody, Rep. Kagi, Rep. Moeller, Rep. Harris, Sen. Parlette, Sen. Darneille, Sen. Hargrove, and Sen. Hill on our Human Services issues, in addition to their policy staff. We plan on ramping up Legislative meetings as election season dies down. Abby Murphy just attended the first annual statewide County Veterans Programs Summit. This was a great opportunity to learn about the many different programs being implemented across the state, as well as an opportunity to discuss how we can improve coordination of services being offered in each County. Abby is also attending the Washington "State of Health Care Reform" conference in Spokane this September and a conference on" Community Employment" for those with Developmental Disabilities this October. WSAC Board of Director's Meeting September 19, 2014 Page 108 of 121

110 GOAL: 2014 Operating and Budget Goals Performance Measurement Report Ensure a Fiscally Sound Organization FINANCE AND BUDGET Action Lead Member Initiated Completed Ensure 100% participation of WSAC Members. Eric Review and evaluate WSAC dues assessment structure to include review of services and programs offered within a dues structure: Survey other similar Washington State Associations and States County Associations to determine potential dues structure and processes; Work on ideas that include a structure not as dependent on a single county 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 $23,000 and expose business partners to WSAC members and county services. Karlyn Derek Survey sent to other state associations. Responses have been received. Developed two different tiered structures as preliminary ideas. Initiated a review of Timber County Dues to include an alternative to % of SRS receipts. Conference Prospectus revised. Meeting with current and potential sponsors for 2014 County Leaders Conference. Equip the WSAC board to assist with conference fund raising and business member recruitment. In cooperation with WSAC Endorsed Products Advisory Committee, Develop Non Dues Revenue Plan and Goals. Derek Developing new collateral materials for WSAC Business Partner Program that will be presented in November. Updated for September 2014 WSAC Board of Directors Meeting WSAC Board of Director's Meeting September 19, 2014 Page 109 of 121