Board of Director s Meeting

Transcription

1 Board of Director s Meeting Vancouver Hilton Clark County Vancouver, Washington November 19, 2013

2 WSAC Board Count ByLaws Ref Population Executive Board Seat First Name Last Name County 13 < Quorum Executive Committee 1 3.4a President Todd Mielke Spokane 2 3.4a V-President Helen Price Johnson Island 3 3.4a Sec/Treasurer David Sauter Klickitat 4 3.4b, IP-President John Koster Snohomish Board of Directors Board Seat First Name Last Name County 5 3.4b P-President Dean Burton Garfield 7 3.4f 1,957,000 King County Executive Kathy Lambert King 6 3.4e 1 1,957,000 King County Council Reagan Dunn King 8 3.4e 2 808,200 Pierce County No designee assigned Pierce 9 3.4e 3 722,900 Snohomish County Dave Gossett 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 Carolann Swartz Grant d 4 Eastern Region Bob Koch Franklin c 1 Western Region Herb Welch Grays Harbor 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 Dow Constantine King 3.4e 1 1,957,000 King County Council Jane Hague King 3.4e 2 808,200 Pierce County Pat McCarthy Pierce 3.4e 3 722,900 Snohomish County Stephanie Wright Snohomish 3.4e 4 475,600 Spokane County No positions available Spokane 3.4e 5 431,250 Clark County Steve Stuart 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 Kathy Kershner Whatcom 3.4e ,000 Benton James Beaver Benton 3.4d 1 Eastern Region Scott Hutsell Lincoln 3.4d 2 Eastern Region Greg Tompkins Walla Walla 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 Loretta Stover Chelan/Douglas WACCCs Julie Kjorsvik Kittitas WCAA Loretta Smith Kelty Benton WSACE Jonathon Brand Kitsap WSACRPD Karen Witherspoon Skamania WSALPHO Peter Browning Skagit WSEMA Jim Hall Yakima WSUEXT Janet Schmidt Whitman WSAC Board of Director's Meeting November 19, 2013 Page 1 of 54

3 DRAFT MEETING AGENDA - WSAC BOARD OF DIRECTORS Tuesday, November 19, 2013 Clark County 11:45 a.m. to 12:30 p.m., Lunch with Joint Transportation Committee Vancouver Hilton 12:30 p.m. to 3:00 p.m., WSAC Board of Directors Meeting Vancouver, Washington Call in Information: , Meeting # TIME* Encl. PRESENTER(s) AGENDA TYPE 11:45 a.m. LUNCH 12:30 p.m. President Mielke Lunch with the Joint Transportation Committee Heritage Room D CALL TO ORDER and Introductions; Establish Quorum Heritage Room E 12:35 p.m. President Mielke 1. APPROVE Agenda Action 12:40 p.m. President Mielke 2. APPROVE MINUTES: September 20, 2013 Action President Mielke Commissioner Dahlstedt Other WSAC Members 3. President s Report 4. NACo Reports STAFF REPORTS 1:00 p.m. Eric Johnson 5. Executive Director Report Karlyn Shannon 6. Business and Finance Report Josh Weiss 7. Policy and Legislative Relations Report Derek Anderson 8. Communications and Members Services Report Eric Johnson Goals and Actions Update and Review Report WSAC BUSINESS 1:40 p.m. Eric Johnson 11. Proposed 2014 WSAC Board of Directors Meeting Schedule Actions: Consider Adopting 2014 WSAC Board of Directors Meeting Schedule Resolution Action 12. Boards and Commissions (Nominations and Appointments) Derek Anderson Actions: Consider Adopting Nominations and Appointments Resolution and Action Eric Johnson 13. Federal Issues and Relations Coordinator Alternatives Report Board discussion to provide direction to staff on preferred alterntives Action OTHER BUSINESS 2:30 p.m. President Mielke Board Members 14. 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 Eric Johnson Josh Weiss 15. Executive Session Pending Litigation Report 3:00 p.m. President Mielke MEETING ADJOURNED *Times are approximate only NEXT MEETING of the WSAC Board of Directors - TENTATIVE DATE and TIME: Wednesday, February 2014, 2:00 p.m. 5:00 p.m., Washington Counties Building, Thurston County, Olympia WSAC Board of Director's Meeting November 19, 2013 Page 2 of 54

4 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS September 20, 2013 Opening A regularly scheduled meeting of the Board of Directors of the Washington State Association of Counties (WSAC) was held on Friday, September 20, 2013 starting at approximately 9:00 a.m. at Hal Holmes Community Center, Kittitas County, Ellensburg, Washington. All directors had been previously notified of the meeting pursuant to the Association Bylaws. Board members present: President Todd Mielke, Vice President Helen Price Johnson, Secretary Treasurer David Sauter, Immediate Past President John Koster, Past President Dean Burton, Kathy Lambert, Regan Dunn, Shelly O'Quinn, Robert Gelder, Jerome Delvin, Al French, Obie O'Brien, Carolann Swartz, Bob Koch, Herb Welch, Jim McEntire, Blair Brady, Lee Grose, Stephanie Wright, Scott Hutsell, Greg Tompkins, Kelly Emerson. A quorum was present. Others present: Shon Small, Benton County Staff present: Eric Johnson, Josh Weiss, Karlyn Shannon, Derek Anderson, Laura Merrill. Call to Order and Approval of Agenda: The meeting was called to order at 9:05 a.m. It was moved, seconded and approved to approve the agenda. Approval of minutes of previous meeting: It was moved to approve the minutes. The motion was seconded to approve the minutes of the May 8, 2013 meeting; the motion was passed. Other Activity & Staff Reports: Reports were presented as submitted. Refer to the board packet. WSAC Business Actions 2014 Proposed WSAC Budgets: Eric presented the proposed 2014 goals and actions, proposed 2014 special fund budget, proposed 2014 operating budget and proposed 2014 general and transportation dues. Resolution # : A motion was made by John Koster to approve Resolution # which adopts the proposed 2014 special fund budget and recommends that the proposed 2014 operations budget, proposed 2014 general and transportation dues schedule and proposed 2014 goals and actions be presented to the WSAC membership for their consideration and approval at the November annual meeting. The motion was passed. Policy Manual Amendment: Eric presented the board with a policy manual amendment to provide direction and guidance to the WSAC Executive Director to aide in the retention of a high functioning and excelling work force. Resolution # : A motion was made by Blair Brady to approve Resolution # which approves the addition of the proposed Employee Retention Policy to the WSAC Comprehensive Policy and Procedures Manual with the adjustment in the language under authorization to include "this may include, but not be limited to:" and also allows the Executive Director to pursue analysis regarding the potential for WSAC to become a PERS employer. The motion was passed. Proposed Legislative Steering Committee Membership: Josh presented the board with a revised roster for the LSC membership. Resolution # : A motion was made by Blair Brady to approve Resolution # which confirms the Legislative Steering Committee Roster as proposed by the President and as amended in the revised board report as presented to include the names of representatives and alternates and also authorizes President Mielke or the incoming WSAC President, with WSAC Board of Director's Meeting November 19, 2013 Page 3 of 54 1

5 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS September 20, 2013 confirmation from the Executive Committee, to fill remaining roster vacancies. The motion was passed. Board and Commissions Nominations and Appointments: Derek presented the positions up for approval. Open position that is an appointment by the WSAC Board of Directors: Resolution # : Vacancy on the County Road Administration Board for a County Engineer in a county with population between 20,000 and 125,000. The members present voted and then a motion was made by Lee Grose to approve resolution # which appoints M. Mark Storey, Director/County Engineer, Whitman County, to fill the County Road Administration Board for a County Engineer in a county with population between 20,000 and 125,000 position. The motion was passed. 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. Gary N. Ekstedt, P.E., County Engineer, Yakima County, Paul Randall-Grutter, P.E., County Engineer, Skagit County, Samuel Castro, Public Works Director, Pend Oreille County are seeking nominations for this vacancy. A motion was made by Bob Koch and seconded to approve Resolution # to send the nominations of Gary N. Ekstedt, P.E., County Engineer, Yakima County, Paul Randall- Grutter, P.E., County Engineer, Skagit County, Samuel Castro, Public Works Director, Pend Oreille County to the Transportation Improvement Board. Open position that is a nomination to the Washington State Adjutant General Major General Bret D. Daugherty by the WSAC Board of Directors: Resolution # : Vacancy on the Emergency Management Council. Rick Hughes, County Council Member, San Juan County is seeking nomination for this vacancy. A motion was made by Al French and seconded to approve Resolution # to send the nomination of Rick Hughes, County Council Member, San Juan County to the Emergency Management Council. Open positions that are nominations to the Governor Jay Inslee by the WSAC Board of Directors are: Resolution # : Vacancy on the Affordable Housing Advisory Board - Western Washington Representative. Rick Hughes, County Council Member, San Juan County and Andree Harland, Accounting Manager, Pacific County are seeking nomination for this vacancy. A motion was made by Helen Price Johnson and seconded to approve Resolution # to send the nominations of Rick Hughes, County Council Member, San Juan County and Andree Harland, Accounting Manager, Pacific County to the Affordable Housing Advisory Board. Resolution # : Vacancy on the Salmon Recovery Funding Board - Eastern Washington Representative. Art Swannack, County Commissioner, Whitman County and Rick Miller, County Commissioner, Franklin County are seeking nomination for this vacancy. A motion was made by Al French and seconded to approve Resolution # to send the nominations of Art Swannack, County Commissioner, Whitman County and Rick Miller, County Commissioner, Franklin County to the Salmon Recovery Funding Board. Resolution # : Vacancy on the Salmon Recovery Funding Board - Western Washington Representative. Dennis Weber, County Commissioner, Cowlitz County, Phil Johnson, County Commissioner, Jefferson County and Jamie Stephens, County Council Member, San Juan County are seeking nomination for this vacancy. A motion was made by Helen Price Johnson and seconded to approve Resolution # to approve the resolution as amended and send the WSAC Board of Director's Meeting November 19, 2013 Page 4 of 54 2

6 Washington State Association of Counties MINUTES OF MEETING OF THE BOARD OF DIRECTORS September 20, 2013 nominations of Dennis Weber, County Commissioner, Cowlitz County, Phil Johnson, County Commissioner, Jefferson County and Jamie Stephens, County Council Member, San Juan County to the Salmon Recovery Funding Board Joint Annual WSAC/WACO Conference: Derek presented the Board with updated information concerning the proposed WSAC/WACO joint conference and next steps: Resolution # : A motion was made by Blair Brady and seconded to approve Resolution # to direct the WSAC Executive Director or his designee to work with WACO to identify a joint recommendation for a WSAC/WACO 2016 Conference venue and grant site selection authority to the WSAC Officers for the joint conference venue. The motion was passed. Executive Session Executive Session: The Board went into Executive Session at approximately 11:40 a.m. for the purposes of discussing pending litigation. The Board came out of executive session at 11:50 a.m. and extended executive session for another 10 minutes until noon. The Board concluded executive session at approximately 12:00 p.m. No decisions were made. Closing Next Meeting: The next meeting of the Board of Directors will be on November 19, 2013 in Vancouver, Washington. Adjourn: There being no further business; President Todd Mielke adjourned the meeting at 12:05 p.m. Respectfully submitted: ATTEST: Dave Sauter, Secretary/Treasurer Todd Mielke, President WSAC Board of Director's Meeting November 19, 2013 Page 5 of 54 3

7 Staff Reports WSAC Board of Director's Meeting November 19, 2013 Page 6 of 54

8 November 19, 2013 TO: FROM: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Executive Director Report WSAC Officers and Board of Directors Election On Tuesday, November 5, 2013, Votenet sent to our 137 Active Members voting information and online ballot instructions. As of November 12th, 36% of the members have voted. Polling remains open until noon., Thursday, November 21st. An onsite electronic polling station is available at the conference Activities Major work engaged since September revolved around conference and meeting preparation for this week. WSAC staff coordinated a response on behalf of Columbia River County Commissioners Policy Advisory Committee regarding Regional Recommendations on the Columbia River Treaty. Counties 101 was presented as part of Whatcom County s employee training program. Presented Fiscal Sustainability Initiative information in Walla Walla as part of their community budget meeting. The first two counties, Chelan and Thurston, have initiated work on the Voluntary Stewardship Program. I have participated in meetings and presentations with both of these counties. Coordinating a county resource panel for an upcoming session at the Washington Association of Conservation Districts. Issues to be covered include District Supervisor Elections, Voluntary Stewardship Program Assessments, Rates and Charges, Successful Interlocal Agreement, Stormwater, Water and Growth Management. Washington Association of County Officials Annual Conference President Mielke, Vice Presideternt Price Johnson and Secretary Treasurer Sauter attended the Annual WACO Conference. President Mielke presented the WSAC Fiscal Sustainability Initiative. Snohomish County Auditor Carolyn Weikel was selected WACO President. Washington Counties Risk Pool Brian Enslow presented information at the WCRP meeting speaking about WSAC Legislative Agenda, fiscal sustainability initiative, and the legislative process. Local Government Performance Center (LGPC) For the past several years WSAC has been concerned and at times critical of local government performance audits conducted by the State Auditor. We met on several occasions to try and move this discussion towards using these resources in a way that would provide meaningful change in the way that Counties perform business functions. WSAC Board of Director's Meeting November 19, 2013 Page 7 of 54

9 National Council of County Association Executives I attended this annual meeting that focused on non dues revenue, personnel management, ethics and conflict of interest, and other issues relevant to association management. Washington State Community Transformation Grant Leadership Team I continue to serve on this Leadership Team overseeing a $3.2 million grant from the Centers for Disease Control and Prevention. Most of these funds are being distributed through "hubs" that are our local public heath jurisdictions. The focus is on healthy eating, active living, preventative health care services, and tobacco free living. Joint Meeting with Governor Members of the WSAC Executive Committee are scheduled to meet with Governor Inslee on Friday, December 20 th. Chief Justice Madsen Brian Enslow and I met with Chief Justice Madsen to discuss a variety of court funding issues, in particular indigent defense. Department of Commerce Leadership WSAC staff met with Department of Commerce Director Bolendar and new Assistant Director Kendee Yamaguchi to discuss Results Washington and Commerce s services and relationship with local government. Results Washington WSAC staff met with Governor Inslee s Results Washington team to get information and provide preliminary input into the goals and actions established to measure performance. Four County Executives Brian Enslow is working to establish a meeting with our four county executives. WSAC Staff WSAC has entered into a contract with Ms. Brynn Brady, Ceiba Consulting, to provide staff support for WSAC s Coastal Counties Caucus. This position is provided in collaboration with, and funding through, the Puget Sound Partnership. Brynn served as Pierce County s Government Relations Coordinator for approximately 5 years in addition to working for Pierce County Planning Department. WSAC Member Changes Several WSAC members are leaving office or have left office in 2013 including: King County Councilmember Julia Patterson Kitsap County Commissioner Josh Brown San Juan County Councilmember Marc Forlenza San Juan County Councilmember Rich Peterson San Juan County Councilmember Patty Miller Snohomish County Council Member Dave Gossett Snohomish County Council Member John Koster Whatcom County Councilmember Kathy Kershner Whatcom County Councilmember Bill Knutzen WSAC Board of Director's Meeting November 19, 2013 Page 8 of 54

10 November 19, 2013 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Karlyn Shannon, Business and Financial Services Director Business and Finance Report 3rd Quarter 2013 Report Cash Reserves We ended the 3rd quarter of 2013 with a total cash position of $923,428. This is a $50k decrease from the 2nd quarter report. We should expect to see consistent decreases in cash as the year progresses now that dues are billed and (for the most part) received at the beginning of the year. Receivables 3rd quarter current receivables are normal and consist of contract billings as well as a few counties that have chosen to continue to pay on a regular basis rather than annually. Budget to Actual Activity The 3rd quarter 2013 report shows a combined negative ($23,130) bottom line. This is slightly down from our 2nd quarter reporting of ($27,737). Variances to highlight from the financial report: Affiliate Assessments This balance is under estimated amounts due to WSACE Managing Director time billed to the transportation performance contract rather than WSACE. Payroll and Benefits The favorable variance for payroll and benefits is due to two employees leaving WSAC at the beginning of the year, one in January and one in February. One position was never replaced and one was filled in July, Professional Services This variance primarily has to do with the activities of the transportation performance metrics contract which were budgeted as an in-house expense in 2013 but have since been contracted out for professional services to complete the scope of work. Meetings, Travel & Hosting - This variance is primarily due to the amount of travel undertaken by staff and members to visit all 39 counties in the state to present information regarding the Fiscal Sustainability Initiative. WSAC Retro Pool WSAC and the Executive Committee of the Select Retrospective Rating Program and the County Workplace Safety Alliance (also known as the WSAC Retro Pool) is currently drafting a Request for Proposal for third party administrative services. The following is the current plan: RFP sent to potential consultants Last Week of November 2013 Pre-proposal workshop (for potential Q&A) December 2013 Proposal submittal deadline December 31, 2013 Consultant selection and contract negotiations January 2014 Start of work February 2014 WSAC Board of Director's Meeting November 19, 2013 Page 9 of 54

11 Other Administrative News Treasury Management WSAC is currently in the process of changing from a small business account at Wells Fargo to a treasury management account allowing us to implement desk top depositing, payroll importing and other added features. Staff Barbara Warden, Finance Specialist, is on extended medical leave. This has made some services in finance and administration a bit slower over the last couple of months. While we are working to assure we do not miss anything, if for some reason you need to check on the status of a payment or administrative issues, please contact me at (360) WSAC Board of Director's Meeting November 19, 2013 Page 10 of 54

12 Balance Sheet, by Fund As of September 30, 2013 and 3 Years Prior Operating Fund Special Fund Total Assets Cash and Cash Equivalents $ 398,675 $ 345,637 $ 744,312 $ 315,623 $ 537,371 $ 613,284 Receivables and Other Current Assets 274, , , , ,496 Property and Equipment, Net 105, ,923 90,381 69,041 71,663 Long-term and Other Assets 374, , , , ,839 Total Assets $ 1,152,803 $ 345,637 $ 1,498,440 $ 1,321,446 $ 1,611,539 $ 1,961,282 Liabilities and Unrestricted Equity Current Liabilities $ 444,467 $ 17,640 $ 462,107 $ 249,578 $ 258,265 $ 260,159 Retro Pool Reserves 179, , , , ,847 Undesignated Net Assets 529, , , , ,759 1,058,276 Board Designated Net Assets - 202, , , , , , , , , ,759 1,260,276 Total Liabilities and Equity $ 1,152,803 $ 345,637 $ 1,498,440 $ 1,321,446 $ 1,611,539 $ 1,961,282 Key factors for changes in WSAC s Assets and Equity between 2010 and 2012: Cash: o The primary factor for the 2011 cash balance decrease was the 15% reduction in dues ($157k). WSAC was able to reduce the impact of the reduction by obtaining new contracts and cutting costs in medical benefits and travel. 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 for 2013 is WSAC's change in dues billing - from monthly to an annual billing. This is also seen in the receivables balance. Retro Pool Reserves fluctuate depending on plan activities for the year. This fluctuation is shown in the Retro Pool Reserves line item. Funds in the pool were spent in Note that the balance found in Retro Pool Reserves liability is mirrored within the asset section under Long-term and Other Assets. The Retro Pool balance plus the Building partnership value ($195k) equals the balance of Long-term and Other Assets. The effects of WSAC FSC receivable write-off of $278k can be seen in the drop in Receivables and Long-term and Other Assets in 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. SEPTEMBER 30, 2013 WSAC FINANCIALS 1 WSAC Board of Director's Meeting November 19, 2013 Page 11 of 54

13 Statement of Cash Flows by Fund, Direct Method As of September 30, 2013 and 3 Years Prior Operating Fund Special Fund Total Beginning Cash and Cash Equivalents $ 159,336 $ 338,236 $ 497,572 $ 981,886 $ 1,054,131 $ 1,606,147 Cash Flows From Operating Activities Cash Received From Members, Affiliates, and Other Services $ 2,385,098 $ 73,099 $ 2,458,197 $ 2,422,565 $ 2,445,575 $ 2,024,007 Interest and Dividends Earned ,070 9,281 Payments for Payroll and Related Benefits (1,042,397) - (1,042,397) (1,526,616) (1,363,971) (1,301,791) Payments to Vendors and Suppliers (905,871) (65,484) (971,355) (1,065,252) (1,148,064) (984,964) L&I Retro Reserve (2,833) - (2,833) (262,566) (161) (299,222) Income Taxes - (414) (414) (1,760) (2,927) (1,140) Net Cash Provided (Used) by Operating Activities 433,997 7, ,398 (433,126) (59,478) (553,829) Cash Flows From Investing Activities Purchases of Capital Equipment (15,542) - (15,542) (51,188) (18,722) (8,959) Investment in Subsidiary - FSC ,955 3,882 Capital Contributions to Building Partnership ,890 Proceeds From Disposal of Assets Net Cash Provided (Used) by Investing Activities (15,542) - (15,542) (51,188) (12,767) 1,813 Net Increase (Decrease) in Cash 418,455 7, ,856 (484,314) (72,245) (552,016) Ending Cash and Cash Equivalents $ 577,791 $ 345,637 $ 923,428 $ 497,572 $ 981,886 $ 1,054,131 Key factors for changes in WSAC s cash flows between 2010 and 2013: 2012 includes an L&I assessment paid in May ($262k) shows three quarters of information compared to a full year for the prior years also includes full annual dues payments from most members. Purchases of capital equipment for 2012 include a new pool car and other purchases related to WSACs office move. SEPTEMBER 30, 2013 WSAC FINANCIALS 2 WSAC Board of Director's Meeting November 19, 2013 Page 12 of 54

14 Revenue Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual General and Transportation Dues $ 1,158,055 $ 868,541 $ 868,514 $ (28) $ 1,135,375 $ 1,115,027 $ 1,141,861 Business Partner Fees 7,000 5,250 3,250 (2,000) 7,950 5,900 7,200 Affiliate Assessments 434, , ,969 (38,707) 406, , ,587 Contract Services 687, , ,836 88, , , ,445 Insurance Services 50,000 37,500 38, ,463 50,610 51,027 Conferences and Events 90,000-7,680 7,680 93, , ,465 Other Misc. Income 1, ,755 4, ,098 12,051 Interest and Dividend Income Total Revenue $ 2,427,775 $ 1,827,810 $ 1,888,156 $ 60,346 $ 2,474,752 $ 2,396,390 $ 2,121,648 Operating Expense Actual vs. Budget in Summary - Operating Fund For The Quarter Ended September 30, 2013 Payroll and Benefits $ 1,646,418 $ 1,275,685 $ 1,016,055 $ 259,630 $ 1,522,856 $ 1,364,660 $ 1,303,970 Meetings, Travel and Meals 96,450 74,200 94,940 (20,740) 116, , ,990 Conferences and Events 53,500 3,000 9,307 (6,307) 52,872 73, ,468 Professional Services 403, , ,371 (291,371) 554, , ,304 Technology and Telecom 45,200 34,900 35,384 (484) 60,512 46,260 52,126 General Operating 159, , ,969 (4,682) 154, , ,972 Total Operating Expense $ 2,404,068 $ 1,836,073 $ 1,900,027 $ (63,954) $ 2,461,271 $ 2,458,224 $ 2,259,830 Budgeted Net Income (Loss) $ 23,707 $ (8,263) $ (11,871) $ (3,608) $ 13,480 $ (61,834) $ (138,182) SEPTEMBER 30, 2013 WSAC FINANCIALS 3 WSAC Board of Director's Meeting November 19, 2013 Page 13 of 54

15 Actual vs. Budget - Special Fund For The Quarter Ended September 30, 2013 Revenue Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual Royalties and Marketing $ 68,600 $ 51,450 $ 46,117 $ (5,333) $ 98,498 $ 63,446 $ 57,258 Contract Services Other Misc. Income (161) 15, Interest and Dividend Income (175) ,068 9,269 Total Revenue $ 69,600 $ 52,200 $ 46,531 $ (5,669) $ 114,797 $ 73,514 $ 67,277 Operating Expense Meetings, Travel and Hosting $ 40,000 $ 40,000 $ 43,718 $ (3,718) $ 63,200 $ 32,227 $ 20,013 Conferences & Events 12, , Professional Services - - 9,500 (9,500) 19, Other Operating Expenses 8,700 7,400 4,572 2,828 18,009 9,084 16,492 Total Operating Expense $ 60,700 $ 47,400 $ 57,790 $ (10,390) $ 106,362 $ 41,327 $ 37,446 Budgeted Net Income (Loss) $ 8,900 $ 4,800 $ (11,259) $ (16,059) $ 8,435 $ 32,187 $ 29,831 SEPTEMBER 30, 2013 WSAC FINANCIALS 4 WSAC Board of Director's Meeting November 19, 2013 Page 14 of 54

16 Revenue Total Year-to-Date Total Variance Budget Budget Actual (unfavorable) Actual Actual Actual General and Transportation Dues $ 1,158,055 $ 868,541 $ 868,514 $ (28) $ 1,135,375 $ 1,115,027 $ 1,141,861 Business Partner Fees 7,000 5,250 3,250 (2,000) 7,950 5,900 7,200 Affiliate Assessments 434, , ,969 (38,707) 406, , ,587 Contract Services 687, , ,836 88, , , ,445 Insurance Services 50,000 37,500 38, ,463 50,610 51,027 Conferences and Events 90,000-7,680 7,680 93, , ,465 Endorsement and Marketing 68,600 51,450 46,117 (5,333) 98,498 63,446 57,258 Other Misc. Income 1,500 1,125 4,969 3,844 16,621 5,098 12,801 Interest and Dividend Income (175) ,070 9,281 Total Revenue $ 2,497,375 $ 1,880,010 $ 1,934,687 $ 54,677 $ 2,589,549 $ 2,469,904 $ 2,188,925 Operating Expense Actual vs. Budget in Summary - All Funds For The Quarter Ended September 30, 2013 Payroll and Benefits $ 1,646,418 $ 1,275,685 $ 1,016,055 $ 259,630 $ 1,522,856 $ 1,364,660 $ 1,303,970 Meetings, Travel and Hosting 136, , ,659 (24,459) 179, , ,003 Conferences and Events 65,500 3,000 9,307 (6,307) 58,525 73, ,408 Professional Services 403, , ,871 (300,871) 573, , ,304 Technology and Telecom 45,200 34,900 35,384 (484) 60,512 46,260 52,126 General Operating 167, , ,541 (1,854) 172, , ,464 Total Operating Expense $ 2,464,768 $ 1,883,473 $ 1,957,817 $ (74,344) $ 2,567,633 $ 2,499,551 $ 2,297,276 Budgeted Net Income (Loss) $ 32,607 $ (3,463) $ (23,130) $ (19,667) $ 21,916 $ (29,648) $ (108,351) Key Operating Metrics Current Year Dues as a % of Total Revenue 45% 44% 45% 52% # of Permanent Staff Payroll Expense as % of Total Expense 52% 59% 55% 57% Net Income as % of Revenue -1% 1% -1% -5% Key factors for changes in WSAC s income and expenses between 2010 and 2013: 2013 shows the full year budgeted and only three quarters of actual activity compared to a full year of activity for the prior years dues reflects King County paying 1/2 of their assessed dues (loss of $131k) dues reflects a reduction for all members of 15% ($157k). Contract Services shows an increase in revenues due to EasyView and Transportation Performance contracts as well as a grant from the Dept of Commerce ($77k). This is also reflected in the Professional Services line item. The change in Affiliate revenues is due primarily to moving WSACE from a Contract Service to Affiliate Assessment in The increase in Payroll and Benefits in the 2012 budget is due to a COLA in January of SEPTEMBER 30, 2013 WSAC FINANCIALS 5 WSAC Board of Director's Meeting November 19, 2013 Page 15 of 54

17 Total Cash Position - All Funds For The Quarter Ended September 30, 2013 $923,428 Unrestricted Cash - All Funds Thousands 1, Undesignated Board Designated Total - Dec '10Mar '11 Jun '11 Sep '11Dec '11Mar '12 Jun '12 Sep '12Dec '12Mar '13 Jun '13 Sep '13 Undesignated 411, 452, 409, 460, 335, 264, 295, 404, 113, 689, 589, 542, Board Designated 202, 202, 202, 202, 202, 202, 202, 202, 202, 202, 202, 202, Total 613, 654, 611, 662, 537, 466, 497, 606, 315, 891, 791, 744, Board Designated 202,000 22% Restricted - L&I Retro 179,116 19% Special Fund 143,637 16% Operating Fund 398,675 43% SEPTEMBER 30, 2013 WSAC FINANCIALS 6 WSAC Board of Director's Meeting November 19, 2013 Page 16 of 54

18 November 19, 2013 TO: FROM: PREPARED BY: SUBJECT: WSAC Board of Directors Eric Johnson, Executive Director Josh Weiss, Policy and Legislative Relations Director Policy and Legislative Relations Report Governor Inslee convened a special session of the Legislature to pass two bills aimed at encouraging the Boeing Company to build the new 777X fuselage and carbon fiber wings in Washington State. This fourth session of the year was the shortest, only lasting three days set a state record for the most legislative sessions, and there is some discussion that a fourth session could be convened to pass a transportation funding and reform package before the end of the year. As the 2014 session draws near, WSAC staff continues to coordinate with individual counties in the development of their legislative priorities. We hosted a meeting with county government relations staff from the separate counties as well as staff from the Washington Association of County Officials (WACO), and Washington Association of Prosecuting Attorneys. We have attended meetings with legislative delegations in Okanogan and Douglas counties, and before session also plan to attend meetings in Cowlitz, Clark, Kitsap, Pierce, Snohomish, Thurston, Walla Walla, Whitman, and Yakima. If you plan meetings with your legislative delegation, please contact us to participate as appropriate. Brian Enslow represented WSAC at a coordination meeting between local government associations. Finance Josh Weiss The Fiscal Sustainability Initiative continues to be a major focus. In early October members of the Executive Committee presented the Initiative at the WACO annual meeting. The presentation was well received and opened the door for a meeting in late October between the WACO executive officers and members of WSAC s Executive Committee and Fiscal Sustainability Work Group. As a result of these efforts, WACO and WSAC will work in cooperation on the Fiscal Sustainability Initiative. The House Finance Committee is holding a work session on local government finance on Friday, November 22 nd. WSAC will present information to the committee about the fiscal sustainability of counties. We believe this work session will launch a dialogue about improvements to local government financing. WSAC staff is meeting with legislative leaders about the Fiscal Sustainability Initiative, and initial budget ideas for the 2014 session. These have included: Representative Sullivan, Senator Schoesler, Senator Braun, Senator Hill, and Senator Sheldon. We have also met with the Director of the Office of Financial Management regarding Governor Inslee s proposed supplemental budget and WSAC s budget priorities. One of the ideas we ve been discussing is the sharing of revenue from the sale of recreational marijuana. It is clear that there is tough competition for these dollars, should they actually materialize. We met with staff from the Association of Washington Cities, who are also interested in seeing a greater share of this revenue directed toward counties and cities. We ll be working on better developing this coalition. WSAC Board of Director's Meeting November 19, 2013 Page 17 of 54

19 We continue to work with the Association of Washington Cities and Joint Legislative Audit and Review Committee (JLARC) on the implementation of last session s legislation on the lodging tax (HB 1253). Counties are required to report to the Joint Legislative Audit and Review Committee (JLARC) on the use of lodging taxes. JLARC has decided that it will initiate the reporting requirements beginning January 1, 2014 and no report will be required for lodging tax expenditures made during They intend to provide a web-based reporting system. Human Services Abby Murphy We continue to engage in conversations with legislative staff, agencies, and the Governor s staff regarding the letter from the Center for Medicaid Services about Washington State s Regional Support Networks. We attended stakeholder meetings in both Spokane and Seattle, as well as had members testify at a House Appropriations HealthCare Sub-Committee work session on mental health. There are more opportunities to comment as we near the start of the legislative session. We are meeting with key legislators prior to session in order to make sure county priorities are known and maintained. WSAC held a webinar for members interested in getting up to speed on the rollout of the Affordable Care Act. MaryAnne Lindeblad and Nathan Johnson of the HealthCare Authority presented data on enrollment numbers, yearly assumptions and new benefits available to all enrollees. They also presented information on the Systems Integration Model that the state is working on in order to secure a large federal grant to reform healthcare in our state. WSAC/ACHS is represented on the steering committee for SSB This legislation passed last session aimed at integrating support systems such as housing and employment with our current mental health and chemical dependency treatment in order to increase rates of recovery. The steering committee meets monthly and is formulating recommendations for the Governor. ACHS members and I attended a forum on Managed Care Organizations (MCO S) that contract with states to deliver care for our developmentally disabled community. The panel consisted of representatives from four states currently utilizing a MCO model. They candidly discussed the pros and cons of their systems and the steps that would have to take place in Washington if we were to adopt similar care models. Although I have not had any indication from agencies or legislators that this is an agenda item, it is a topic we are watching over the next few years as many more states are expected to shift services to MCO s. Lastly, we are working with our agency partners at the Department for Behavioral Health and Recovery (DBHR) to draft a budget proviso to allow for an increase in the chemical dependency Medicaid rates currently being paid to treatment providers. Using the numbers from a recent study of actual costs associated with treatments, DBHR and ACHS members are in the early stages of determining what amount would be necessary to cover actual costs accrued. Land Use, Natural Resources and Environment Laura Merrill Both the House and the Senate planned to conduct work over the interim on the Growth Management Act (GMA). The House Local Government Committee intended to hold a work session on GMA earlier in the summer, yet due to a lack of response the Chair cancelled the meeting. The Senate Governmental Operations Committee has not yet held a work session, but does have a discussion on GMA during committee assembly at the end of November. As a follow up to the House Local Government Committee work session, WSAC and Association of Washington Cities staff met with Representative Marko Liias and discussed ideas for reform of the GMA such as providing a safe harbor when updating comprehensive plans. WSAC staff presented a condensed version of the Fiscal Sustainability Initiative as it relates to land use for the both the Association of Boundary Review Boards and the Growth Management Hearings Board annual meetings. The presentations were well received and members of both groups asked good questions. The Ecology stakeholder group addressing reforms of the State Environmental Policy Act (SEPA) has wrapped up their meetings. A draft of the proposed agency rules will be made public later in November and WSAC will WSAC Board of Director's Meeting November 19, 2013 Page 18 of 54

20 make formal comments once they are published. WSAC thanks the county representatives to this stakeholder group, Clay White with Snohomish County, Harry Reinert with King County and Jeff Wilson with Chelan County. Their expertise and commitment to this process was excellent. WSAC staff is involved in meetings with the Department of Ecology on the Model Toxics Control Act (MTCA) funding, and our interests in protecting local government programs. Also at Ecology, discussions on the update of Human Health Criteria and the Fish Consumption Rate continue. WSAC has two representatives to the agency s delegates group, Sandra Kilroy from King County and Bruce Rawls from Spokane County. WSAC will host a panel on this topic at the County Leaders Conference in Vancouver. WSAC staff presented the Fiscal Sustainability Initiative and how counties are impacted by judicial and hearings board decisions regarding rural domestic water at the Washington chapter of the American Water Resources Association annual conference. Staff participated on a panel with Ecology, and environmental and tribal representatives. The WSAC Rural Domestic Water workgroup (formerly called the Exempt Well workgroup) hosted a stakeholder meeting in October that included the Department of Ecology, Department of Health, and representatives from environmental, tribal, PUD s, realtors, and water purveyors. The WSAC workgroup will talk about next steps, and discuss Ecology's guidance document for counties on determining water availability at the County Leaders Conference in Vancouver. Timber Counties are meeting at the County Leaders Conference to discuss performance measures and a reporting process for the Department of Natural Resources. The agenda also includes an update on the Marbled Murrelet conservation strategy, the encumbered lands program, and resolutions from the National Association of Counties Western Interstate Region. Public Safety / Civil Legal Brian Enslow WSAC requested that the Office of Public Defense include additional funding for indigent defense services in their 2014 budget submittal. This request was predicated by recent changes to the structure in how we perform indigent defense services that have further reduced our ability to provide these and other services. These changes were mandated by either Court Rule or actions of the Judicial Branch. Counties currently spend approximately $120 million with the state providing only $5 million to cities and counties. The request is to include an additional $6 million for FY 2015 in the Courts supplemental budget submittal. This amount represents a good faith effort to resume progress in funding for constitutionally required services and would bring the level of state support to 10 percent of county expenditures. WSAC also requested support for more funding from Chief Justice Madsen, the Washington State Bar Association, the Office of Civil Legal Aid, and the Washington Defenders Association. The 2013 Legislature directed the Department of Corrections (Department) to issue a competitive solicitation to explore using total confinement bed capacity in local jurisdictions in lieu of prison beds operated by the Department. Yakima and King were selected as sites that meet the criteria established by the Department in their RFP process, however, the Department as of yet has failed to move forward on establishing contract with either county. WSAC is very concerned this is due to a disagreement surrounding funding and whether specific funding needed to be provided for this purpose. Our understanding is that the Department has sufficient funding to contract with the counties, especially in light of the low rates mandated by the proviso. WSAC staff have also communicated the Governor's budget office the need for a Correctional Facilities Assessment Counties. Cities, Tribes, and the State all maintain and operate correctional facilities with little coordination between the different units of government. A comprehensive understanding of the interplay of correctional facilities, and impacts on operational and capital costs to ensure optimum use of facilities and services to ensure public investments are protected. This could be accomplished in a budget proviso. WSAC Board of Director's Meeting November 19, 2013 Page 19 of 54

21 The Municipal Research and Services Center has put together a comprehensive guide for local governments on how to implement recreational marijuana on the municipal level. The guide includes information about implementation, regulatory documents, sample ordinances, and more. The Washington State Liquor Control Board (LCB) recently released draft recommendations about the current medical marijuana system and how to reconcile it with the new recreational system. The key elements are: 1. Medical marijuana collective gardens and dispensaries would be eliminated. 2. A medical marijuana registry would be set up and maintained by the state. 3. Sales to medical marijuana patients would be exempt from the state/local retail sales and use tax. 4. Labeling of medical marijuana would include the levels of THC and cannabinoids. 5. If a medical marijuana patient is under the age of 18, the child s parent or guardian would need to consent, and the child could not have more than one dose in their possession. The LCB also filed an Emergency Rule regarding how the 1000 foot buffer will be measured for marijuana licenses. The board has learned that how the 1000 foot buffer is measured under the rules adopted by the board on October 16, 2013, differs from the way the federal government measures the buffer. The board needs to change the way they will measure the 1000 foot buffer to be consistent with the federal government. Lastly, thank you to all who participated in the Ruckelshaus Center's (Center) readiness assessment on public records reform. As you may recall the Center has been conducting extensive interviews with a broad spectrum of interested parties to determine whether or not there is an opportunity to find a mediated solution to issues surrounding the public records act. WSAC staff worked with the Center to refine their scope as well as identify potential interview subjects. The Center is slated to present the results of their efforts in late November. Public Health Brad Banks The Washington State Association of Local Public Health Officials (WSALPHO) achieved a major success in getting the Title XIX Medicaid Administrative Match (MAM) program back up and running for local health jurisdictions across the state as of October 1st. This is a very positive development in what has been a fiscally painful shutdown of the program since June of The teamwork and collegiality displayed by local health jurisdictions throughout this year and a half long negotiation process, involving local, state, and federal entities, was exceedingly affirming and directly responsible for us being able to reach this critical milestone. There remains more work to be done to put the program issues totally to bed, but we are in an infinitely better spot now than we were a year ago. WSALPHO is in the midst of finalizing our 2014 Legislative Agenda, mainly consisting of wrapping up policy issues we began earlier this year and ensuring various technical fixes to the operating budget, specific to the newly created Public Health Assistance Account. We are excited to again be holding our Fall WSALPHO Meeting in conjunction with WSAC's County Leaders Conference in Vancouver. There is a great deal happening between now and next summer with regard to efforts toward reshaping the public health system in Washington State. There will be more details about the progress of this work in future board reports. Transportation & Public Works Gary Rowe Over the past several weeks the Senate Transportation Committee held listening sessions in ten cities around the state. Several county commissioners and council members attended and spoke on the need for additional funding for counties. WSAC Board of Director's Meeting November 19, 2013 Page 20 of 54

22 Governor Inslee has prioritized the need to adopt a transportation package and included it as an item for the recent three-day special session focused on legislation in support of Boeing, but issues were not resolved in time for it to be considered. Negotiations are underway within and between the Senate and House to resolve differences in hopes of Governor calling another special session when the legislature meets for committee assembly on November The Senate Majority Coalition Caucus (MCC) released a proposed transportation revenue package at the conclusion of the special session on November 9 th. The proposal increases the allocation to counties to an equivalent of one cent of motor vehicle fuel tax, although the proposal would actually have revenue coming from a variety of sources. Earlier proposals would have allocated less than one-half cent equivalent funding. County contact with legislators is helping and needs to continue. The MCC proposal also includes local option revenues at a similar level to the transportation revenue package adopted by the House earlier this year. In addition to revenues, the MCC has stated that reforms need to be part of the package. A proposed reform that would exempt state transportation projects from sales tax has been structured in a way that would have no impact on local sales tax. Other reforms related to permit streamlining raise concerns about the potential to limit local authority through SEPA and project permitting. WSAC Board of Director's Meeting November 19, 2013 Page 21 of 54

23 November 19, 2013 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 WSAC Annual County Leaders Conference Registration Information: Registration for this year's annual conference has increased to 173 (168 registrations in 2012). 73 of these registrations are County Commissioners and Council Members (65 registrations in 2012). Staff conducted a targeted campaign to increase our first time attendee participation. WSAC members, who are first time attendees or have not attended an annual conference in the last 4 years, were offered a full conference discounted rate of $275. At this time we have had 2 members take advantage of this offer. While interest was low this year, we plan to continue offering this reduced rate to 2014 conference attendees. Revenue: Sponsorships and Exhibitors play a vital role in funding various programming and networking events for conference attendees. The communications staff embarked on an ambitious goal of increasing sponsorship and exhibitor revenue by $10,000. To accomplish this goal we created new marketing materials including a direct mailer that was sent to over 250 new leads. We are pleased to report that our total increase in new sponsorship and exhibitor revenue is projected to be $10,500. This 30% increase in new revenue along with increased registration numbers has increased new conference revenues an additional $12,000 beyond expenses WSAC Business Partners & Affinity Program Staff is planning to conduct a thorough review of our Business Partners and Affinity Programs in early December. While these two programs continue to provide benefits to our current program members; growth is stagnant. At this time we have suspended 2014 renewals to allow for this review. During this process, staff will research how these programs are conducted around the country. A report of this review will be provided at the February Board of Directors meeting. Webinars After a brief hiatus, our popular webinar series returned in October. WSAC provided two programs to members and other interested parties. Participation for both webinars exceeded expectations. Both the Affordable Care Act and Courthouse Preservation Grant programs had more than 25 participants. Staff is currently working to develop our webinar programming for Technology The month of October was a busy month for IT projects. After a month of preparations, IT staff successfully moved staff working folders to the cloud. This transition also allowed directors to implement a new folder structure for staff that is unique to each division. Now that WSAC files are located in a secure cloud environment, staff members are able to access files using their mobile devices when they are out of the office. This new service is very helpful to policy staff when they are out of the office during the legislative session. WSAC Board of Director's Meeting November 19, 2013 Page 22 of 54

24 GOAL: 2013 Operating and Budget Goals Performance Measurement Report Establish Long Term Financial Stability for WSAC Updated for November 2013 WSAC Board of Directors Meeting FINANCE AND BUDGET Action Lead Member Initiated Completed Implement "Member Benefits Report: system to communicate the value of member dues that show accomplishments and return on investment from membership dues. Derek Data Collection and database development underway; rough report design completed; data input per county underway Review 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 Review potential to provide advocacy services to special purpose districts associations (mosquito control districts, cemetery districts, television reception districts, etc) Maintain existing professional service contracts and agreements for services and explore new programs to bring in more non-dues resources with relevant services for counties, i.e. current contracts with state agencies -Transportation Performance Measures; Karlyn Survey sent and responses received from other like associations. Developed two different tiered structures as preliminary ideas. Initiated a review of Timber County Dues to include an alternative to % of SRS receipts. Derek Up $10,500 to $44,500 conference sponsors and vendors Josh Considered developing bid proposal for WABO Eric DNR (Timber Program) Puget Sound Partnership Transportation Performance Measure WSAC Board of Director's Meeting November 19, 2013 Page 23 of 54