# Fire Services, HR Policies, and Budget Challenges: An Intensive Council Committee Session ## Meeting Overview The Whatcom County Council Committee of the Whole convened for an ambitious 3 hour and 35 minute session on Tuesday afternoon, September 23, 2025, at 1:03 p.m. in the County Courthouse. Chair Kaylee Galloway presided over a hybrid meeting that brought together all seven council members: Barry Buchanan, Tyler Byrd, Todd Donovan, Ben Elenbaas, Jon Scanlon, and Mark Stremler. This was no ordinary committee meeting. The agenda was packed with complex presentations and discussions that would shape county operations for years to come. Two major consulting reports dominated the first half of the session, followed by critical budget discussions and policy debates. The meeting showcased the county's commitment to data-driven decision making while confronting some of the most challenging fiscal and operational realities facing local government. Chair Galloway opened with a warning that would prove prescient: "We have a super packed agenda today, so please be patient as we move expeditiously through our agenda." The committee would ultimately run six minutes past its scheduled 4:30 p.m. adjournment, testament to the weighty matters at hand. ## Independent Fire and EMS Study Findings The meeting opened with Rick Harrison and Jason Malloy from Mission Critical Partners presenting their comprehensive independent study of Whatcom County's fire district and Emergency Management Services system. This long-awaited report, commissioned by the council rather than the fire service itself, promised to provide an objective evaluation of one of the county's most critical public services. Harrison began with a diplomatic but clear acknowledgment of the challenges inherent in their task: "It was commissioned by the council rather than by the fire service itself. It is understandable that some chiefs or department members may not agree with all the findings or recommendations." He emphasized respect for fire service leadership while maintaining the independence of their analysis. The consultants delivered 19 specific recommendations spanning operations, governance, and future planning. Among the most significant was a call for consolidation considerations, particularly for smaller districts that might benefit from economies of scale. "Both of these were brought up or put in as recommendations due to the interviews, reviewing call trends, looking at geography, thinking of leveraging larger agencies to handle that," Malloy explained. ### Dispatch Consolidation Debate One of the most contentious recommendations involved co-locating Prospect and Whatcom County's dispatch centers. Harrison argued for the operational benefits: "There is an inherent delay in one communication center receiving a 911 call and transferring it to another. You can't get around that." He described scenarios where having dispatchers in one room would improve situational awareness during major incidents like active shooter situations. Chair Galloway, who had recently spent a full day at the Prospect dispatch center, pushed back with informed questions about potential downsides. She highlighted the specific EMT-level training that Prospect dispatchers possess, which allows for "more extensive on call intervention while they're also dispatching units into the field." She also raised concerns about losing the redundancy that separate locations provide during emergencies. Harrison acknowledged these were valid points but maintained that co-location could preserve the specialized training while gaining operational benefits. "What we recommended, it was a co locate, meaning that you know nobody from prospect would you know, be eliminated. I mean, they move over. They move over with their training." ### Council Response and Next Steps The council's response revealed both appreciation for the analysis and recognition of the political challenges ahead. Council member Byrd, who has championed fire service efficiency initiatives throughout his tenure, praised the work: "I know how this effort can be difficult and other things and divisive, for sure. So I just want to say I very much appreciate your team." When asked about cost estimates for the recommendations, Harrison admitted limitations: "We did do some cost analysis... but you know, we did not, as you saw in the report... break down. Some of them are difficult to break down." The consultants estimated that a full dispatch consolidation study would cost approximately $100,000. Council member Scanlon raised the critical question of leadership moving forward: "I'm wondering which of us, or which grouping of us, wants to continue this work?" The discussion that followed revealed the challenge of maintaining continuity as some council members approach the end of their terms. Ultimately, council members Galloway, Elenbaas, and Byrd agreed to work together on implementation, with Deputy Executive Kayla Schott-Bresler pledging to participate and include the new EMS administrator when she arrives in mid-October. ## Matrix Consulting's HR Policy Evaluation The second major presentation came from Alan Pennington of Matrix Consulting Group, presenting findings from their comprehensive evaluation of the county's harassment and complaint policies and procedures. This study emerged from employee concerns about workplace culture and represented a significant investment in rebuilding trust within county government. The scope of the assessment was impressive: a five-month engagement that included policy review, employee surveys, case file analysis, and comprehensive recommendations. Most remarkably, the employee survey generated 559 responses, representing roughly 50% of all county employees—an unusually high response rate that itself told a story. ### Survey Reveals Trust Deficit The survey results painted a complex picture of an organization with strong foundational policies but significant trust issues in implementation. While over 90% of employees understood the harassment policy and 82% knew how to report concerns, deeper problems emerged around confidence in the process. "44% of staff were unsatisfied with the timeliness of the investigation process," Pennington reported. "63% were dissatisfied with the process overall, and 65% dissatisfied with the outcome. And 57% of employees indicated not being comfortable reporting concerns to HR with some concerns for retaliation noted." Perhaps most telling was a statistic that council member Elenbaas highlighted: 73% of employees disagreed that their colleagues were comfortable reporting workplace concerns to HR. "I think that's even more telling than the 57% that said I feel comfortable," Elenbaas observed, "because that 73% tells you that's the culture, that's the tone in the shop." ### Comprehensive Recommendations Pennington's team delivered 24 specific recommendations organized into three categories: operational improvements, policy enhancements, and training development. The recommendations ranged from technical improvements like implementing case management systems to fundamental changes like requiring all elected offices to adopt county-wide harassment policies. One of the most challenging recommendations involved bringing consistency across all elected offices. As Pennington explained, "Every elected office should formally adopt and apply the county wide harassment and discrimination policies. This is critical to ensuring consistency across the entire organization." However, he acknowledged that state statutes make this "not as easy to dictate as it might otherwise be in other organizations." The training recommendations were extensive, calling for biennial training for all staff, enhanced supervisor training within three months of appointment, and alternative training formats beyond online modules. "Some of the training in these areas, especially as they may relate to supervisory obligations, may be better suited for in person type of trainings," Pennington noted. ### Council Response: Commitment and Concern The council's response demonstrated both appreciation for the thorough analysis and determination to act on the findings. Council member Donovan, who had helped initiate the study, reflected on its origins: "This process started with kind of a call from county employees about what we could do to rebuild trust." Council member Buchanan emphasized the critical need for consistency: "It is really critical to have HR policies that are consistent across the board for everybody that works for the county." However, the legal and practical challenges of achieving this across separately elected offices remained formidable. Council member Elenbaas brought his private sector experience to bear on the findings, noting that the 55-60% survey response rate itself should be seen as a warning sign: "However, just that participation level should send red flags up, because if everything's good, nobody's giving you their input." He also advocated for regular follow-up surveys: "I think another thing we should add to the list as a recommendation... would be continue on with surveys like this, like a finger on the pulse type of deal, so that we can always have that feedback and be preemptive on our approach." Deputy Executive Aly Pennucci emphasized the broader organizational challenges: "There's a lot of this on county leadership that doesn't like HR can do all the best training, put out the best information. And if count, if leadership within the departments, at the council, in the separately elected offices are not really prioritizing this work, it's not going to have an effect." ## Road Fund Crisis and Hard Choices The afternoon's most sobering discussion centered on the Road Fund's structural imbalance and the painful choices required to address it. Public Works Director Elizabeth Kosa presented a stark picture of a fund that had been deficit spending for over a decade, finally reaching the point where immediate action was required to avoid legal insolvency. ### How We Got Here Kosa traced the fund's problems back to 2015, when the council asked public works to begin spending down what was then a substantial fund balance. "Unfortunately, at that time, it doesn't look like the organization put any guardrails in place to stop the practice or when we should stop," she explained. The result was clear from her presentation: "As you can see clearly from this graph, we continue to deficit spend for over 10 years." The fund balance had steadily declined from healthy levels to the current precarious position of barely $2 million projected for September 2025—well below the county's 15% minimum fund balance policy. To illustrate the operational risks, Kosa provided a concrete example: "If we have a two week storm event in response 20, 24/7, that is a $2 million dollar cost. So just to keep that in mind, so if your fund balance is very thin to be able to operate, that's what kind of what we're looking at." ### Immediate Crisis Management The county had already taken significant steps to address the cash flow crisis that emerged in May 2025. These included project delays, interfund loans, operating cuts, a selective vacancy freeze, and even delaying payments to maintain cash flow. "I'm happy to report that the green line is the actual line that we are seeing based off of those reductions that we made," Kosa said, referring to their success in stabilizing the fund through 2025. However, 2026 presented new challenges requiring additional dramatic action. The proposed strategies included a 9% further reduction in operating budget, a devastating 63% reduction in capital budget, elimination of eight FTE positions permanently, and freezing 13 additional positions. ### Difficult Decisions Ahead The human impact of these decisions was not lost on anyone in the room. The eight eliminated positions included engineers, maintenance workers, and administrative support staff. The 13 frozen positions centered around operations and maintenance, areas where service impacts would be immediately felt by the public. Kosa emphasized that these reductions were "in addition to everything we've already done" during the biennial budget process and the mid-year corrections. The cumulative effect would mean "deteriorating infrastructure, slow response time, increased outages" for county residents. ### Long-term Solutions Looking beyond 2026, the discussion turned to potential revenue solutions. Options included a county-wide ferry district (requiring state legislative changes), impact fees, transportation benefit districts, and a road fund levy lid lift requiring voter approval. Deputy Executive Pennucci emphasized that "to address this in an ongoing way, there needs to be additional revenue. Or, as Director Kosa said, there'll be continued sort of inflationary service reductions." The mathematical reality was stark: with only 1% annual property tax increases allowed and inflation running at 3%, the county faced automatic service cuts even without additional budget pressures. The council's response mixed concern with recognition of political realities. The discussion touched on the need for better public communication about why services might decline even as taxes increase, the importance of demonstrating responsible stewardship of existing funds, and the challenge of making the case for new revenue sources. ## Tort Claims Ordinance Amendments In a comparatively brief but important discussion, the council considered amendments to the county's tort and damage claims procedures. Council member Donovan led the discussion of an ordinance that would create a formal risk management committee and clarify claim processing procedures. The key change involved ensuring council notification of settlements paid by third parties. "Council shall be notified of payments made by third parties in settlement of county claims," read the amendment proposed by Donovan and seconded by Byrd. The council refined the language further, adding a 30-day notification requirement to provide clear accountability. County Executive Satpal Sidhu raised questions about whether such disclosures would occur in executive session or public settings, with Prosecuting Attorney's Office representative Christopher Quinn noting that decisions would be made case-by-case based on confidentiality requirements. The amendments passed unanimously, reflecting the council's desire for greater transparency and oversight in risk management processes. ## Economic Development Planning The meeting's final substantive item addressed preliminary Planning Commission recommendations for the Economic Development chapter of the Comprehensive Plan update. Chair Galloway had prepared extensive amendments addressing everything from recognizing public sector employers as part of the economy to strengthening apprenticeship program language. Her amendments reflected a comprehensive vision of economic development that went beyond traditional business recruitment. "The theme of some of my amendments have to do with recognizing the County and other public sector employers as being part of the economy," she explained. Among her proposals were policies to establish competitiveness reviews, expand green infrastructure definitions beyond narrow interpretations, strengthen partnerships with educational institutions, and better articulate the contributions of resource-based economies. Council member Elenbaas indicated he would prepare his own amendments for distribution, suggesting robust council engagement with this foundational planning document. ## Petrogas West Facility Controversy The meeting concluded with a heated discussion about Planning and Development Services' decision to issue a Mitigated Determination of Nonsignificance (MDNS) rather than requiring a full Environmental Impact Statement (EIS) for Petrogas West's Cherry Point facility improvements. Council member Donovan expressed strong frustration with the process: "Planning and Development Services had created an expectation that there would be an environmental impact statement on the project changes/improvements to the Petrogas facility and kind of pulled the rug out on September 3rd by saying they are issuing a Mitigated Determination of Nonsignificance instead." The debate revealed fundamental tensions between economic development and environmental protection. Council member Elenbaas supported the decision, arguing that "PDS found a path to say yes to living wage jobs and to operating our heavy industry in a manner in which we have historically operated." He worried about perceptions that the county would "do anything we can to crush a living wage job." Council member Scanlon raised concerns about emergency preparedness: "One of my concerns is having full understanding of the needs for public safety and emergency management around this and he does not know if our plans are in place to be able to deal with the changes that have occurred there." Planning Director Mark Personius defended his decision-making authority and the process followed, noting that Fire District 7 had actually supported the permits. However, the discussion highlighted ongoing tensions about the county's fossil fuel facility regulations and their implementation. ## Closing and What's Ahead The meeting adjourned at 4:36 p.m., six minutes past schedule, after covering an extraordinary range of complex issues. The session demonstrated the county's commitment to evidence-based decision making through professional consulting studies while confronting harsh fiscal realities and contentious policy debates. Several key follow-up items emerged from the day's discussions. The fire and EMS study implementation would move forward with council leadership from Galloway, Elenbaas, and Byrd. HR policy improvements would continue with regular progress reporting. The road fund crisis would require additional council deliberation as supplemental budget requests arrive in October. The tort claims ordinance would proceed to public hearing and formal adoption. Perhaps most significantly, the meeting showcased both the strengths and challenges of local government in 2025. Professional analysis, community engagement, and transparent deliberation all featured prominently. Yet underlying fiscal pressures, legal constraints, and political divisions continued to complicate even the most well-intentioned efforts at improvement. The overall mood at adjournment was one of determination mixed with realism. Council members had confronted difficult truths about county operations while maintaining focus on their responsibilities to both county employees and the broader community. The work ahead would require sustained attention, difficult choices, and continued commitment to public service in challenging times.