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HomeMy WebLinkAbout2019/12/16 - Briefing BOARD OF MASON COUNTY COMMISSIONERS' BRIEFING MINUTES Mason County Commission Chambers,411 North 5th Street,Shelton,WA Week of December 16,2019 Monday,December 16,2019 9:00 A.M. Support Services—Frank Pinter Commissioners Shutty,Trask and Neatherlin were in attendance. • Region#3 Homeland Security Mutual Aid Omnibus Agreement was approved to move forward. • Jennifer reviewed the November Financial Statements and the 2020 Budget Amendment Calendar. • Dawn reviewed the Public Works Engineer 1 and 2 job descriptions to be in compliance with FLSA rules and the job descriptions will be changed to show these positions are non-exempt. 9:15 A.M. General Fund Vehicle Fleet Recommendation—(continued from November 12)Public Works/Equipment Rental&Revolving(ER&R) Commissioners Shutty,Trask and Neatherlin were in attendance. • Public Works staff Diane Sheesley,Loretta Swanson and Cyndi Ticknor presented a recommendation for the General Fund vehicle fleet. Upfit cost comparison is the same as what an outside vendor would supply. ER&R is not suggesting the same vehicle replacement schedule as the leased vehicle proposal. ER&R used a straight line depreciation,Sheriff vehicles lifetime is 5 years;other vehicles are 10 years. Assuming 2018 direct costs,and over 5 years at a 2%annual increase,total is$4.6M. There would be an additional cost to Roads and Utility Funds of$1.4M if the County moves the General Fund vehicles to leased vehicles and the ER&R administration stays the same. This proposal does not lay off any staff but redistributes some of the time. The ER&R proposal does not include fuel costs. • Cmmr.Neatherlin asked for a cost breakdown for the past 5 years for the General Fund ER&R costs. He noted the proposal shows a decrease in cost between 2021 to 2024. Cyndi noted the proposal shows a purchase of vehicles in 2020. • Cmmr. Shutty stated a decision on whether to lease needs to be made by early January. 9:45 A.M. Review Request for Proposal for General Fund Vehicle Fleet(continued from November 12) Commissioners Shutty,Trask and Neatherlin were in attendance. • Frank Pinter, Support Services,presented information for leasing the General Fund vehicles.The intent is to reduce the cost of fleet management and options have been presented: 1)Remain status quo,too expensive;2)Create a General Fund motor pool,too expensive and would require additional staff;3)Move ER&R directly under the Commissioners,too expensive and requires additional staff;4)Pursue a leasing option. Frank explained the four areas he disagrees with the ER&R proposal: 1)Are IIA charges to outside government agencies equitable;2)Labor hours for up-fit and down-fit has to be included in overhead costs and it is not in the ER&R proposal;3)Replacement cost for vehicles and 4) Analysis of direct costs. Diane Sheesley interjected the ILA rate is proposed to be increased in 2020 and the State Auditor has never found a problem with the ILA rate. Frank stated the proposed lease is for Ford vehicles and the lease proposal includes two financing options. The county can incur the cost of up-fitting PPV's as a capital cost in the year incurred or it can choose to have the up-fit cost included in the lease.The second option would require a standby letter of credit. Reviewing the five-year average costs of ER&R and the lease option,the average cost to operate ER&R for 103 vehicles is$1.475M per year;the average cost to operate under a leasing option is $1.258M if up-fit costs are included and$1.240 million if up-fit costs are not included in the lease. Board of Mason County Commissioners' Briefing Meeting Minutes December 15,2019 The conclusion is the Lease proposal costs slightly less per year,replaces all vehicles,and amounts to$1M to$1.5M less over a 5-year period. Cmmr.Neatherlin stated an important element is that there is a regular schedule of replacing vehicles in the leased option. It was noted that to get the up-fitting done in a reasonable amount of time,it will probably have to be outsourced. Cyndi noted ER&R has done up-fitting and would need to know the time expectation. Cmmr.Shutty pointed out the decision to change to leased vehicles will be a decision of the Commissioners and is not based on a comparison of apples to apples because it is a different way of doing business. 10:30 A.M. BREAK 10:40 A.M. Public Works—Loretta Swanson Utilities&Waste Management Commissioners Shutty,Trask and Neatherlin were in attendance. • Update of the WDOT Coffee Creek project at the Highway 101/Shelton Matlock interchange. Completion date is December 2020. • TIP-CAP re-appointment request for six current members will be moved forward. • Proposal for on-call commercial electrical services,maximum pay-out is not to exceed$50,000 per year. • Request to extend the contract with Parametrix to collect the remaining required gas monitoring data with a scheduled completion date of no later than June 30,2020. There is no cost to this amendment. The December 17 agenda will be amended to include this item. • Kennedy-Jena contract amount presented at the briefing has increased and the correct amount is on the agenda. • A workshop will be schedule regarding SR3/John's Prairie intersection. • Request to fill the Teamster position that was included in the 2020 budget. • Diane Sheesley submitted her resignation and the Board authorized the filling of the position. 11:00 A.M. Community Services—Kell Rowen Commissioners Shutty,Trask and Neatherlin were in attendance. • Kell will be bringing forward a resolution for an eight-year tax relief of an apartment complex in Belfair that has applied to a permit. The Commissioners will talk to the legislature about extending this tax relief option. Commissioner Discussion 11:15 a.m. Cmmr.Neatherlin summarized his conclusion for the ER&R cost and the fact that going to a lease plan will replace all vehicles. The Board will consider not issuing the Letter of Credit from Current Expense ending fund balance or use the Vehicle Reserve and replenish the Reserve. Frank noted that when ER&R is reconciled,there should be$200K available back to Current Expense. There was direction to bring forward the vehicle lease on January 6 for final direction. The Commissioners asked to schedule an executive session for an exit interview with Diane Sheesley. Meeting adjourned at 11:30 a.m. Board of Mason County Commissioners'Briefing Meeting Minutes December 15,2019 Tuesday,December 17,2019 Executive Session—RCW 42.30.110(1)(g)Performance of a Public Employee Commissioners Shutty,Trask and Neatherlin met in executive session from 10:15 a.m.to 11:15 a.m.to perform an exit interview. Respectfully submitted, Diane Zoren,Administrative Services Manager BOARD OF MASON COUNTY COMMISSIONERS Kevin Shutty Rand ea erlin "—Sharon k Chair Commissioner Commissioner